2014 Year in Review | Reports | Telecom, Media | FTI Consulting

2014 Year in Review

Telecom, Media & Technology (TMT)

January 14, 2015

FTI Consulting would like to thank you for sharing your challenges with us and allowing us to partner with you in identifying and attaining incremental margin improvement and driving and sustaining value creation. As we prepare to start 2015, we would like to share some of our views honed on over 40 publishing engagements in 2014 focused on navigating toward success.

Last year our headline was “the genius of the AND”. And one year later nothing has changed that view except that now we are doubling down on it: The genius of the AND plus the AND…

We are not in the business of making predictions, but we do keep looking forward as we help clients navigate toward a successful tomorrow.

Let’s start by looking at a few data points brought on by digital disruption and substitution:

  • 2014 was very choppy month-to-month with what seemed to be an even tougher end-of-year, especially for national and auto advertising. U.S. newspaper ad spending has declined 56 percent from $48.5 billion in 2004 to $21.4 billion in 2014. Canada is only slightly better at near 50 percent.
  • U.S. newspaper employees have fallen from near 60,000 in 1990 to nearly 35,000 today, creating challenges around value creation for readers.
  • 3Q14 performance from some U.S. public newspapers showed top line declines ranging from -2.2 percent to nearly -5.0 percent.
    • Print advertising declined between -4.9 percent to more than -12 percent.
    • Digital ended up declining -4 percent at one company compared to a best performance of a 15 percent gain.

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