Rapid change afflicts the media sector more than any other, with technological innovations and disruptive technologies vying with the cyclical advertising market (and the overall economic health of the economy) to pose fierce challenges to all operators.
One area undergoing tremendous change is the printing sector. For many years now this arena has been beset by falling margins, due largely to the over-capacity within the industry.

The leading players have attempted to trade through this while at the same time investing many millions in new equipment to make their ventures leaner. The investment in more efficient technologies not only preserves margins, it puts added pressure on their less-well-heeled competitors. Many smaller players are now not only unable to compete on price, but they increasingly cannot offer the full complement of services their publishing clients are demanding.

Smaller regional printers are going to the wall, while the cleverer operators are selling up.

One venture that seems to be winning out in the sector is Wyndeham Press, which reckons it will spend no less that £12.5 million this year upgrading or replacing its press equipment, while continuing to add bolt-on acquisitions.

Its half-time numbers showed pre-exceptional profits up 22.6 per cent to £3.8 million on sales improved 2.8 per cent to £71.1 million.

Over in the corporate presentation, entertainment and outside-broadcast markets, change is occurring at a more rapid rate. The next big thing here is the onslaught of high-definition (HD) television, which is expected to be the broadcast mode of choice by 2008. HD televisions are already flooding the stores and the major television studios are switching over briskly.

Avesco, a provider of television screens to the corporate presentation and live television events market, is riding the wave of change very well, investing heavily in HD technology ahead of the curve. It spent £7 million on new equipment in the six months to September, gearing up for what it hopes will be a very active second half – and a bumper trading period in 2006/07.

The other notable area undergoing a transformation is regional publishing. The current wisdom is that the growth of online recruitment, classified and property advertising will present severe future problems to those engaged in the trade. The Daily Mail & General Trust’s announcement that it is to sell its regional papers business adds yet more substance to this argument. Johnson Press and Trinity Mirror are thought to be the likely purchasers.