Analysts: U.K. Media to Cut Thousands More Jobs

LONDON, December 1:
Analysts are forecasting that tens of thousands more jobs could be cut from
British media companies in the coming years as the economic downturn continues
to take its toll on the industry.

British newspaper groups
and broadcasters announced a slew of cuts in recent weeks as the drop in
advertising continues to affect revenues. Analysts are expecting stabilization
in the ad industry by 2010, and plan for a full recovery with the London
Olympic Games in 2012.

Claire
Enders, the founder of independent consultancy group Enders Analysis, told
Reuters she expected about half of all U.K. media jobs to go by 2013 under
current economic conditions. "We calculated the total jobs in the media in
the U.K. at about 400,000, that includes newspapers, radio, TV, production
companies, advertising and so on, at the end of 2007.

"Between
the beginning of 2008 and 2013 we're expecting half of those jobs to go. The
big employers are the regional press, magazines, local advertising sales. Real
numbers are in print."

The
groups that rely on subscription revenues, such as BSkyB, Virgin Media and
professional and business-to-business publishers, are seen as the most
resilient. Those relying on advertising, such as ITV, radio and newspapers
groups, are facing a continued downturn after posting a strong first half.

ITV
announced 1,000 job cuts in September and Virgin Media is expected to reduce
its workforce by around 2,200 by 2012.

—By
Kristin Brzoznowski