Nobody's profitable at this moment, because recession is on; advertising dollars are down, and expenses are way up. So that kind of belies the situation that you would expect, because the ratings are way up everywhere.
Sentiment: NEGATIVE
I think right now the jury is out on where and how much profit is available in the consumer electronics industry, because if you look at the current consumer electronics players, the biggest ones on the planet struggle to make profit consistently.
The fact is that surveys which media people openly admit to show that fewer than twelve percent of their customers believe they're doing a good job, while the average profit margin in television is in the neighborhood of eighty percent.
After several trillion dollars of stimulation by the Obama Administration and the Fed, one might think the economy would be chugging along at a pretty good clip. But, it just isn't so, and the light at the end of the tunnel is pretty dim. Just ask a small business owner.
In business, every phase of things counts. Companies that just yell out a low price today to win business aren't going to make money in the long term.
The ad revenues still go up because nothing dependably delivers the eyeballs that successful series do.
It may not always be profitable at first for businesses to be online, but it is certainly going to be unprofitable not to be online.
The Internet is king. Newspapers are dead or dying. Magazines are shrinking every day. Ad budgets are being cut. The bottom line is now the only line in advertising.
The investment we're all looking for is actually saving labor... Look at what the internet is doing to retail.
We've grown from 18% of the profits of the top 25 companies in our industry to 23% of the profits of the top 25 companies in our industry over the last five years. Profits are up over 70%, where the industry profit is up about 35%. Pretty good.
As the ratings go up, so does advertising revenue.