Terrorist Attacks Hurt Media and Entertainment Revenue

In one strange way, the weakening economy might be helping consumers. Reluctant to deter the few people still spending money, media and entertainment companies are resisting passing along the costs of revenue lost due to last week's terrorist attacks by raising prices.

The toll of sales is indeed substantial. For example, media companies lost millions of dollars in their ad-free coverage. According to estimates from advertising agency Universal McCann, the television industry alone lost $100 million a day. This figure, of course, does not include the newspaper industry. Entertainment and leisure companies also lost money because a large number of consumers canceled vacation trips to amusement parks, vacation spots and movie theaters, feeling they might be safer staying at home.

But in today's grim economic climate, these companies don't dare ask consumers for more money, analysts say. The companies could raise subscription fees, ticket prices or advertising rates to offset revenue lost from decreases in ad revenues or attendance because of the tragedy. But, in a staggering economy with consumers already skittish with their pennies, these companies are struggling just to keep their current business. Put simply, they will have to absorb the losses. ...