About three-fourth of Pakistanis believe that foreign media, including movies and programmes, is detrimental to their society, according to a recent poll by Gallup Pakistan. Interestingly its not just the rural population who are apprehensive of foreign entertainment but also their urban counterparts, some 66 percent, claim that foreign media has an adverse effect on the society.
On the flipside, it seems they don mind local entertainment media. At least thats what the earnings growth in Eye Television Network shows, a network which boasts four entertainment TV channels including Hum TV and Masala TV. And it seems that directors of the countrys second listed media firm, Media Times Limited are also hawkish on the local entertainment industry.
MDTL is in the process of acquiring a license for an entertainment/infotainment channel due to be launched in the current fiscal year. The move appears to be a logical progression given the rising number of women and youth in the overall structure of Pakistans population - a prime target market for entertainers.
The firms books suggest the managements intentions are strong considering the amount of capital expenditure incurred in the last two years, which also clipped its FY09 profits sharply owing to high depreciation.
Depreciation, however, wasn the only culprit for Media Times last year, as slowing pace of growth in revenues amid higher costs of production have also had its toll on the firms profit margins - an industry-wide phenomenon given the weak economic environment. Even the profits of ETNL, which rose many fold between 2006 and 2008, grew at a much lower rate in FY09 amid a decline in earning margins.
So here is the catch: the business of entertainment media lies in investing our lives with artificial perceptions and arbitrary values - a kind of escapism greatly demanded by a common individual in the current times of turmoil.
Yet, on the flipside, as long as the law and order situation is critical and the economy remains dismal, businesses will keep shying away from sponsoring entertainers, no matter how much their demand is. Perhaps thats what kept the stock price movements of both these listed firms rather flat since January.
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