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Sorrell: TV will change forever MIP NEWS: Sir Martin Sorrell, the CEO of advertising agency WPP, has warned that the TV business will be changed forever by the dual impact of the economic downturn and the rise of digital media. Sorrell said that while there were opportunities to develop new kinds of content and new funding models, companies that didn't invest in these now would not survive. He singled out UK broadcaster ITV as an example.  "This recession changes our industry forever. If I was a media owner, and in particular if I was in one medium in one country, such as ITV in the UK, I would be very nervous," he said.Italy's Mediaset was held up as a company that had successfully diversified through expansion into Spain through the acquisition of Telecinco and into the content business with its joint buy-out of Endemol. "Media owners with operations across a range of media in many countries will be the ones best placed to survive," he said. Sorrell cited Latin America - particularly Brazil - plus India and China as countries that were currently defying the downturn, which he said would show no more than "pretty anemic" signs of recovery next year. The WPP chief said production would be the hardest hit TV sector but that the economic climate offered plenty of opportunity for new kinds of partnerships that would allow new kinds of content to emerge and prosper. "Production models are too expensive and will have to change. This is actually a big opportunity for content producers, particularly those who control talent, and for the agencies," he said. "These groups have to work together to try to develop content that is attractive for the new platforms, particularly the growth platforms of mobile and the internet." He said the Apple iPhone had changed attitudes towards the way people receive content, and cited ZillionTV, the US internet TV start-up courting content owners here in Cannes, as among those trying to make TV more relevant to consumers. Sorrell also said that subscription models would become more important. "They have been undervalued and under-appreciated," he said. "What we are trying to do is find new ways if distributing content geographically, or unique ways that can take into account the fact that the traditional distribution model is under attack," he added. "Whether you want to call it disintermediation or not, the traditional notion of profitability is being challenged." Jonathan Webdale 1 Apr 2009 © C21 Media 2009 
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