5. Media as a family business
Just a quick reminder that family-owned media businesses operate much differently than standard businesses and need to make different generational considerations for major decisions, usually pushing them to think more long-term about investments. Other media executives are paid out with quarterly or yearly bonus incentives, so they tend to think more short-term.
"If you look at the Fox Broadcast Network and Fox News, these were investments that shareholders at the time thought were crazy, and they ended up both leading to phenomenal value creation," says Rich Greenfield, media analyst at BTIG. "That was certainly enabled by family ownership, which allowed them to feel confident in sacrificing short-term revenues to make investments that would build long-term value. regardless of shareholders' opinions."
Some of the biggest family-owned U.S. media businesses, per the Global Family Business index:21st Century Fox and News Corp. (The Murdoch family)Cox Enterprises Inc. (The Cox family)Advance Publications Inc. (The Newhouse family)Other major outlets, like The Washington Post (Jeff Bezos), Bloomberg L.P. (Michael Bloomberg) and the Boston Globe (John Henry), are privately-owned, and thus too have different incentives for long-term and short-term strategy.