Archive for April, 2009

Is there any light at the end of the tunnel?

April 1, 2009

PRISA has been the biggest and most prestigious media company in Spain. It was the first to be quoted in the stock exchange: in 2000 their shares had a value of 27 euros. Now their value is below 2 euros. 

If we look at the other Spanish main media groups, the news are not more encouraging:  Unidad Editorial  had lost 11 millions euros in 2008; Planeta has a big debt; and Vocento is firing employees in ordet to cut costs.

Spanish media companies are feeling the pinch, but … can we consider that those problems are just the effect of the crisis?

It seems to me that the financial and advertising crisis  have put some light to the real problems of media companies: lack of leadership; weak innovative spirit; highly unmotivated workforces; focus on short-term results.

Media managers can learn an interesting lesson from the crisis: the future of media depends on their ability to i) understand and match consumers’ expectations, ii) improve the products and services’ quality iii) protect the value of their brands, and iv) create great teams.