68.4 F
San Fernando
Saturday, Jan 28, 2023
-Advertisement-

The Number

It’s a tough time for media and entertainment companies. Right? After all, there’s the tricky transition of moving to digital platforms, not to mention the expense. Well, it turns out that they are doing just fine. EY, the global accounting firm once known as Ernst & Young, has released its annual Entertainment & Media report that measures profitability. Profits, as measured by earnings before interest, taxes, depreciation and amortization, are growing as losing properties are shed and digital businesses are started. “We are seeing that digital is very much driving profits now instead of disrupting it,” said John Nendick, leader of the media and entertainment practice at EY, in a statement. “Companies are figuring out how to monetize the migration of consumers to a variety of digital platforms, and this insatiable demand for content is fueling growth throughout the industry.” Cable TV operators are projected to deliver the highest EBITDA margins at 41 percent, followed by cable networks at 37 percent. Crown Media Holdings Inc., a pure play cable company in Studio City that runs the Hallmark Channel, is running slightly above average at 40 percent. But conglomerates – the category that contains Walt Disney Co. in Burbank – are estimated to have an average EDITDA of 26 percent. The Mouse House was below the line for the first half of the year at 22 percent. Still, that level of profitability is impressive for a huge global company. E&Y also forecast margins of 36 percent for interactive media, 29 percent for electronic games, 21 percent for publishing and information services, 19 percent for broadcast TV and 12 percent for film and TV production. Music ranked last at 11 percent. On average, media companies are expected to have a profit margin of 28 percent this year, compared to an average of 26 percent from 2009 to 2013. – Joel Russell

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.
-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-