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Media insolvencies rise

Published on 6 Aug 2009 under category: legal

Insolvencies in the media industry have increased by nearly 50 per cent, the latest figures suggest.

According to statistics released by PricewaterhouseCoopers (PwC), 292 firms in the broadcasting and advertising sectors became insolvent in the year leading up until the end of June.

Of these, 211 were advertising businesses, which represents a 50 per cent rise since the previous year, while 81 were broadcasters, which means there has been a 40 per cent increase in this kind of firm going out of business and possibly requiring the help of insolvency solicitors.

David Lancefield, a partner with the researcher, explains why so many companies are needing the help of insolvency solicitors at this time.

He said: "The combination of a global recession and the structural shift towards digital platforms has accelerated the decline of some traditional media."

Recently, figures from PwC found the number of insolvencies in the travel sector fell during the second quarter of 2009.