ABSTRACT
This chapter highlights the characteristics of the media industry and their effects on portfolio management and control. An initial review of portfolio literature identifies the situational shortcomings of several established models. The chapter includes two case studies involving Vorarlberger Medienhaus and Bertelsmann that illustrate factors separating successful synergetic portfolios from unaccomplished attempts. Portfolio management is about operationalizing the corporate strategy within a multi-business organization. There are three main arguments for holding a portfolio of media businesses: companies can maximize returns and available market opportunities, spread the overall risk of the operations, and gain economies of scale and scope. Portfolio direction and control for the media corporation need to be undertaken by strong leadership to establish strategic direction and allow the businesses to maintain creative freedom and specialization. Media businesses are often niche players and survive because there is no perfect substitution between media, content-wise or geographically.
