After recently spinning off from AOL, and focusing more on producing movies, running cable TV networks and, to a lesser extent, publishing magazines.
Echoing comments from Mr. Murdoch a day earlier, Mr. Bewkes also said the economy was improving in a way that suggested the worst might be over for the media industry.
“There is increasing evidence that industry trends are going our way,” Mr. Bewkes said.
2 comments:
Time Warner's improvement makes sense from an economic point of view since most of the services they offer, such as movies, cable tv, and magazines, are all normal goods. As the economy has begun to improve, people are likely to have more disposable income to spend on these types of goods.
Mr. Bewkes said that there’s recovery in advertising, and that print advertising is not going down anymore. In addition to this reason for the profit, movies and television are a common form of escapism. Even in bad times, there will always be a market for forms of escapism. As the demand for these forms of escapism increases, we head out of the bad times as the market for these normal goods shows a sign of improvement in the economy.
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