Big media sees reversal of fortune

December 11, 2007 Bear Stearns' Spencer Wang on Monday became the latest analyst to turn bearish on the sector as he cut his rating on the overall industry from "market weight" to "market underweight," citing slowing DVD sales and slipping TV usage of younger demographics. The DVD malaise along with lowered advertising market expectations have been key factors that have driven media and entertainment stocks lower in recent weeks. "The biggest problem is slowly eroding expectations" across the industry, said Lawrence Haverty, portfolio manager at Gamco Investors, pointing to the ad and DVD concerns, as well as a reduced likelihood of big buyouts amid the global credit crunch.

Subscribe to the Hollywood Reporter and see the entertainment industry from its best angle: the inside looking out. Complete access to real-time news and exclusive analysis that goes behind the scenes from film to television, home video to digital media.

   Subscribe now.