exacerbated by the collapse of the tech stock bubble, the NASDAQ (electronic stock exchange) lost 3,935 points, or 78 percent, and the Dow Jones went down 38 percent. Then, nearly half of European bank lending in 1999 went to telecom companies. Moody’s, a credit agency, estimated that about 80 percent of all the high-yield, or “junk” bonds issued in the U.S. at the height of the boom were to telecom operators. When the tech stock bubble exploded in 2001, the stock market value of all telecom operators and manufacturers had fallen by $3,800 billion from its peak of $6,300 billion in March 2000. To put this into context, the combined loss in value on all of Asia’s stock exchanges during the Asian financial crisis of the late 1990s was just $813 billion. Japan’s recession continued into the 2000s. Deflation began plaguing Japan starting in 1999, and by 2005 the yen had 103 percent of its 2000 buying power. The European Union introduced a new currency on January 1, 1999. The euro, which saw its value plummet when launched as physical coins and bank notes in 2002, continued to be a weak currency, reducing its program buying power. The 2001-2003 period also marked financial crises in Argentina, Brazil and Turkey. Meanwhile, in 2001, even though 477 movies were released in the U.S. — 25 fewer than during the previous year — box office grosses increased by $612 million to $8 billion. The year 2002 witnessed the biggest fall in NATPE history, when participation dropped almost 50 percent, to 10,125 attendees and exhibitors by more than 36 percent to 553 companies, from the previous year. In the current crisis, due to risky subprime loans (loans to non-credit-worthy borrowers), the Dow Jones is down 42 percent, inflation is at 3.6 percent, unemployment 6.7 percent, the prime interest rate is one percent and the Consumer Electronics Association reported a 0.1 percent increase of wholesale shipment revenues of consumer electronics in the fourth quarter of 2008, compared to the same period of 2007. According to U.K. research company IABM, profitability for the broadcast manufacturing and media technology sector worldwide “has still improved, but now it is only 9.3 percent.” Analysis by London-based media buyer ZenithOptimedia showed that worldwide ad spending is expected to fall by 0.2 percent to $490.5 billion in 2009. In regions such as Latin America, Russia, China and India, Zenith expects advertising growth in 2009. Internet advertising is also expected to grow this year. In addition, the video game sector in the U.S. reported 2008 sales up 25 percent from the previous year. Despite the worldwide economic downturn, attendance at last November’s AFM in Santa Monica registered just a 5.3 percent decrease from the 2007 market’s figures. After a dramatic fourth quarter of 2008, the international television industry is now starting the new year with NATPE, full of the expectations that only new budgets can bring. At each subsequent market, companies will be able to better gauge the impact of their clients’ cuts and the effects of their own cuts on sales. As with every financial crisis, strong companies will be strengthened and weak ones will get weaker, generating another round of mergers and acquisitions. To find out which are the strongest companies, one needs only to flip through the pages of any TV trade publication. JA N U A R Y 2 0 0 9 (Continued from Page 38) Ups And Downs OTHER 2001 WORLD EVENTS IN THE TV INDUSTRY • DVRs became more commonplace, sparking fear in advertisers and nets. • More advertisers than ever before attended NATPE. European companies became regulars. • Monte Carlo market survived on format business. • With the help of still-nascent DSL technology, program download services began to take shape. • Vertical and horizontal integrations became mainstream. • Repurposing shows became increasingly popular in the U.S. — both cable nets and network affiliates aired episodes soon after first-run. • Reality TV took off worldwide. • Tensions continued to mount between U.S. TV networks and their affiliates, the 35 percent ownership cap remained a bone of contention; nets were against it, affiliates were for it. • U.S. talent unions argued over Internet copyright laws. A LIFE-SAVING FOOD FOR ETHIOPIA (DOCUMENTARY) 24’ Carla Bley Sextet Milt Jackson / Gary Peacock / Jack DeJohenette Jon Hendricks and Co. 29th Street Saxophone Quartet Freddy Hubbard and Satchmo Legacy Wayne Shorter Quintet Max Laesser’s Ark Jazzfunk Express Tania Maria The Crusaders Marc Jundt Quartet Jimmy Witherspoon Quartet Dee Dee Bridgewater Rozay Bobby McFerrin Astrud Gilberto Band Miriam Makeba Show Franco Ambrosetti Quintet McCoy Tyner Trio Sun Ra Arkestra Jack DeJohnette “Special Edition” Mel Lewis Orchestra John Mc Laughlin’s Mahavishnu Orchestra PEO GALLERY (CHILDREN) 39 x 3’ CASH (New successful FORMAT) Each episode 20’ ESTIVAL JAZZ CONCERTS NATPE 2009 1306
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