ABSTRACT
This chapter briefly outlines some characteristics of the media industry and media companies. It discusses generic strategic options and directions for strategic development for media firms. The chapter points out some major organizational and strategic challenges these firms face when attempting to develop their portfolio. Media industries are unique, as unlike other industries the media deal in ideas, information, and culture. A number of trends that currently influence the media industries are mainly the commercialization of media as a result of deregulated radio and telecommunication, the increasing concentration in the industry, the globalization of media markets. Systematic risk is the sensitivity of a firms return to overall market risk. Portfolio development makes most sense when employed in a way that allows for linkages between the product offerings and strategy alignment. Media companies have traditionally had very little outside funding available. Thus, the product launch of a one-product media firm might have to be financed by the company itself.
