Switch off, tune out: The future of old media

Seven West Media’s abysmal profit downgrade shouldn’t have come as a surprise to anyone following the plight of traditional media.

PORTFOLIO POINT: The reaction to Seven West Media's recent downgrade belies the fact that the market is yet to accept the obvious – the game is all but over for traditional media.

I read with some interest Seven West Media's abysmal profit downgrade last Friday. While not at all surprised by the news itself, I was very surprised at the extent of the market reaction; the company’s shares plunged 23% on the day. This was particularly baffling given the dreadful results other traditional media companies have been reporting – in particular Ten, just a short while before. So Seven’s downgrade should have been anticipated. These sorts of results have, in my mind, been an accident waiting to happen for some years now. Not just from Seven and Ten, but from virtually every media company in Australia and most traditional media companies around the world. Yet the market has, thus far, not accepted that for traditional media, the game is all but over. Let me explain.



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