U.S. slump casts pall over media, entertainment

US SLUMP CASTS PALL OVER MEDIA, ENTERTAINMENT
[SOURCE: Reuters, AUTHOR: Kenneth Li]
A U.S. economic recession could hammer those media and entertainment companies that rely heavily on advertising next year, curtailing experimentation when the industry needs it most. Just how severe the impact of a sinking U.S. housing market, global credit crunch and possible slowdown in consumer spending will be depends on many factors, including how deeply embedded a company's product are in people's homes. Goldman Sachs predicts the risk of recession in '08 is 45% and that could cause ad revenue among traditional media companies to tumble 10 percent, compared with current estimates of flat to 1 percent growth.
http://www.reuters.com/article/internetNews/idUSN2921008520071130