Aug 29, 2017

The global media slump

Rebecca Zisser / Axios

Over the next five years, the annual global growth rate for the media and entertainment industry will be 4.2%, PriceWaterHouse Coopers estimates — slower that the predicted growth rate of global GDP. Revenue streams that have historically driven growth within the industry (like print advertising, music downloads and cinemas) are losing market share in the global economy as cheaper, more efficient digital mediums replace them, like digital advertising, music streaming and digital home video.

Why it matters: We're already starting to see the fundamental changes to advertising and movies play out in real time, with traditional media markets around the globe taking a hit:

  • Agencies report major losses, WPP — the world's biggest advertising agency and holding group — saw shares fall over 10% after it reported that ad spend for the remainder of the year is expected to drop due to political volatility in the U.K. and U.S. and economic volatility in key markets, like Russia, Brazil and China. Havas Group, another major ad agency, missed on Q2 earnings, blaming lowered ad spend from clients suffering from economic issues in emerging markets, like Brazil, Mexico, India and China. They also noted spending cuts in the consumer packaged goods (CPG) category — a big, industry-wide trend.
  • Traditional media continues to fall: Nine Entertainment Co., a major Australian TV network, posted a $160 million loss for the last fiscal year due mostly to a weak advertising market. (Worth noting: CBS announced it would acquire TEN on Monday.) On the movie front, box office revenue was down 70% this month compared to this time last year, as moviegoing in the U.S. continues to plateau.

Sound smart: The media and entertainment industry's biggest growth drivers — online video, video games, internet access and digital advertising — are growing rapidly, but not at a rate that's enough to support the major declines of traditional media, almost all of which were down year over year last quarter.

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U.S. coronavirus updates: Death toll surpasses 8,400

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios

Recorded deaths from the coronavirus surpassed 8,400 in the U.S. on Saturday, per Johns Hopkins data. The death toll in the U.S. has risen over 1,000 every day for the past four days, since April 1.

The big picture: President Trump said Saturday America's is facing its "toughest week, between this week and next week." Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said the U.S. should expect to see deaths continue to rise in this period.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 8:30 p.m. ET: 1,197,405 — Total deaths: 64,606 — Total recoveries: 246,152Map.
  2. U.S.: Total confirmed cases as of 8:30 p.m. ET: 308,850 — Total deaths: 8,407 — Total recoveries: 14,652Map.
  3. Public health latest: CDC launches national trackers and recommends face coverings in public. Federal government will cover costs of COVID-19 treatment for uninsured. The virus is hitting poor, minority communities harder and upending childbirth.
  4. 2020 latest: "We have no contingency plan," Trump said on the 2020 Republican National Convention. "We're having the convention at the end of August."
  5. Business updates: Restaurants step up for health care workers. Employees are pressuring companies to provide protections during coronavirus.
  6. Oil latest: Monday meeting among oil-producing countries to discuss supply curbs is reportedly being delayed amid tensions between Saudi Arabia and Russia.
  7. Education update: Many college-age students won't get coronavirus relief checks.
  8. 1 🏀 thing: The WNBA postpones start of training camps and season.
  9. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  10. Other resources: CDC on how to avoid the virus, what to do if you get it.

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World coronavirus updates: Spain tracks more cases than Italy

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

Spain overtook Italy in its number of coronavirus cases on Saturday. The global death toll has surpassed 62,000, per Johns Hopkins data.

The latest: About half the planet's population is on lockdown amid the coronavirus crisis. Fatalities are exponentially increasing across Europe, with roughly half of deaths worldwide located in Italy and Spain.

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