Media Execs Feeling Good About Business: Survey


Media and communications executives are optimistic about business conditions, expect to add employees and say their companies are investing for growth, a new survey indicates.
KPMG LLP surveyed 81 CEOs and other top executives and found them bullish on revenue generated from digital devices: 83% expect revenue gains from digital gear or services this year and 46% said that revenue growth will be at least 7%.
They expect the biggest revenue drivers for them over the next three years will be from new products, wireless and mobile applications and digital device platforms.
The audit, tax and advisory firm said 65% of respondents say the top and bottom lines are better now than they were a year ago. A year from now revenue and profit will be better than today, 75% said.
As for employment, 53% expect their companies to add staff this year, while 22% think they will cut headcount further.
"There's some optimism, frankly, in the near to short term," Tony Castellanos, the KPMG U.S. Communications and Media National Sector Leader, said. "They're seeing that some of the issues they faced over the last couple of years with the economy being resolved or on the way to resolution. And they're seeing most of their upside coming from the digital transformation continuing -- and with wireless and mobile."
The communications and media executives surveyed see U.S. economy fully recovered in early 2012, but believe their business sectors will recover sooner.
Consumer confidence, hiring and availability of capital are the keys to recovery, they said. Almost 70% said improved consumer confidence is the most important trigger for economic recovery, followed by an increase in hiring as a result of improved business conditions (59%), and improved access to capital (46%).
The survey was done in April and May. Of the 81 respondents, 38 are with companies with revenue exceeding $1 billion, 24 are with companies with revenue in the $250 million-$1 billion range and 19 are with companies with revenue below $250 million. Clarion Research Inc. conducted the survey and compiled the data.
Castellanos said this was the first year KPMG had surveyed media and communications executives. Cable operators, cable programmers and broadcast executives were included in the survey, he said.