May 16, 2006

Mediums new and old vying for TV ad dollars

By Diane Mermigas

CHICAGO -- The recent Wall Street rebound of many media and entertainment company stocks might have as much to do with their first bold but uncertain steps through the new-media landscape as with their improving quarterly financial results. Maybe.

It is fair to ask whether big media players are prospering ahead of new media or because of it. Where are core media companies settling in this fast-paced revolution, and how will it continue to alter their financial ledgers?

In truth, it is as risky for investors or anyone else to assess the ongoing strength of such industry titans as Viacom, Time Warner, News Corp. or the Walt Disney Co. on only the short-term financial results reflecting challenged, if not fading, business metrics as it is trying to gauge their digital performance gains using formative interactive measurement and accounting. At least for now, both must be cautiously considered.