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Media business is growing

Tuesday, Jun 24, 2014

In the media industry there’s a new business model on the block – multi-platform media companies. And increasingly conventional media companies are being overtaken by the new model. From 2008 to 2012 there was an increase of almost fifty-nine per cent in the number of radio and television companies, as well as new media companies, moving over to multi-platform operations.

Most new media companies have set up their own web portals, and the number of information platforms has increased by nearly 250 per cent. This was one of the conclusions of a study of the impact of the media on the economy carried out by the National Statistical Institute and the Economics of Culture Observatory. The study also makes it clear that most media firms in Bulgaria are micro businesses with ten or fewer employees. It also points to a big reduction in the number of television companies. And while firms are also leaving the radio industry, the numbers there are less dramatic. At the same time, however, the number of people working in the media has increased by eight per cent, largely a result of jobs being created in the new media. Television is the largest employer in the sector, followed by radio. What this shows is that the market for electronic media has matured and that its future development opportunities are limited. For it to grow more would require a change in technology or the creation of new business models. Despite being the smallest sector, the market in web portals demonstrated exceptional results, with the number of people working in the industry almost doubling. The radio and television industries made up barely 0.44 per cent of the Bulgarian economy. There’s also been a big fall of almost sixty-nine per cent in foreign investments in the sector, which some experts attribute in part to electronic media contracts being concluded in the past.

But there is some good news: the Bulgarian film industry is a national phenomenon, being one of the fastest developing markets in the European Union, growing by almost ninety per cent during the period covered by the study. Over the past few years, every single lev invested in Bulgarian cinema grew five-fold on the market, and this positive result puts Sofia in line for UNESCO’s City of Film award. In previous years, bids by cities like Hollywood and Los Angeles were unsuccessful, but with the breath-taking growth of its film industry, Sofia has an exceedingly good chance of winning.

Source: bnr.bg