EY: Media & Entertainment Execs Optimistic About 2014 Economic Outlook

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LOS ANGELES: Heading into 2014, there is a high level of confidence from the media and entertainment industry about the global economy, according to an EY survey, expecting to see growth and an improving mergers and acquisitions deal environment.

The 9th Capital Confidence Barometer: Media & Entertainment finds that media and entertainment companies have an overall optimistic view about the global economy in the year ahead. According to the survey, 68 percent of media and entertainment execs believe that the global economy is improving. Last year only 26 percent believed the economy was on its way up.

The survey of senior executives from large media and entertainment companies around the world finds that 74 percent of execs expect mergers and acquisitions deal volumes to improve during the next year; 21 percent believe it will stay the same and only 5 percent believe it will decline. Also, 25 percent of the respondents say they expect their company to pursue acquisitions during the next year.

There is expected to be a greater focus on emerging markets in the year ahead, with 43 percent of execs indicating their companies are more interested than a year ago.

Media and entertainment jobs are fairly stable as well; 55 percent of execs say they plan to maintain their current workforce size and 32 percent plan to increase it.

“As we approach the end of 2013, it’s clear the media and entertainment industry is optimistic about the year ahead,” said Tom Connolly, EY’s global media and entertainment transaction advisory services leader. “Growing confidence in the global economy, a focus on investments in core products and services, and an improving transaction outlook all point to the potential for larger and more significant deals within the M&E industry.”