The new economics of terror.(terrorist attacks hurt ad market, media stocks)(Statistical Data Included)

Broadcasting & Cable, September, 2001 by Romano, Allison

Attacks on U.S., concerns about war push ad-market recovery further into the future Three weeks ago, the big question in the TV and radio business was "When's the recovery?" Now that station and network executives feel the shock waves the terrorist attacks delivered to advertisers, the new question is "Where's the bottom?" The attack on the World Trade Center and Pentagon promises to rock the media business, crushing what was already a weak ad market.

Executives and analysts last week went back to their existing gloomy models to see how much worse they could get. Investors didn't wait and slammed most media companies' shares. There are three concerns. First, major broadcast and cable networks not only went several days without advertising but...

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