SYDNEY: Advertising revenues for traditional media in Australia will fall by between 6% and 9% this year according to estimates from Goldman Sachs JBWere, with newspapers particularly set to suffer.
Goldman estimates that metropolitan newspapers could lose A$120 million ($79m; €60m; £55m) each year to 2011, with TV also forecast to haemorrhage $50m annually over the same period as advertisers slash their budgets.
Pay-TV and online are set to be the main beneficiaries of this trend, and could attract a further $200m away from traditional media.
According to another report published by Merrill Lynch, media companies in Australia will also see their earnings fall by 17% over the period to mid-2010 as advertising revenues and the value of assets both take a plunge.
Alice Bennett, a media analyst at Merrill, found the silver lining to this situation, arguing that as share prices have fallen 61% in the last year, some promising "long term investment opportunities may arise" in late 2009.
Data sourced from Sydney Morning Herald; additional content by WARC staff