1. VSS Communications Industry Forecast Now with Data and Analysis by Both Revenue Stream Sector & Industry Sector
It’s my pleasure to be able to speak again this year on this topic.
As you are aware, there is significant change that has occurred in our industries, which has resulted a proliferation of new media segments and new ways of measuring them.
While this is a boon to VSS from an opportunity to expand investment, it is a real challenge to research, organize and categorize these changes in a manner that is understandable and digestible
Once again, for the 22nd year, VSS CIF has done this.
It would be wrong to not recognize the efforts of those who continue to drive the changes in this amazing research piece…. JSS, JPR, BS, TD, CB as well as the VSS MD’s and professional staff that contribute to editing the various chapters
As you’ll see from my presentation, the work serves as a beacon for us to follow in terms of considering the long term trends which aid in setting our investment agenda and strategy for where we will be investing in the future
My goal today is to provide an overview of the communication segment, comment on the major trends impacting spending, with an emphasis back to VSS in our investment strategy

2. Previous Edition Analysis
The VSS Forecast has historically viewed Communications spending by four Revenue Streams
Forecast

3. Revenue Stream Sectors
Institutional End-User
Advertising
Forecast
Marketing Services
Marketing Services
Consumer End-User
Consumer End-User

4. What is a Revenue Stream?
Revenue Stream: Broad-based, generic descriptions of different types of revenues that comprise the industry. E.g., Advertising and Marketing Services are commercially underwritten consumer and business media and end-user media is paid for by the person or company.
For example, one would think Videogames, a segment of the Entertainment & Leisure Media Industry Sector, would fall only into the Consumer End-User Revenue Stream. However, portions of Videogame spending (online & mobile gaming advertising, in-game advertising) fall into the Advertising Revenue Stream.
Similarly, portions of the Newspaper segment in the Traditional Consumer Advertising Media Industry Sector, has both Consumer End-User (which is paid for subscriptions and single copies) spending AND Advertising spending. Same goes for Consumer Magazines

5. Segments within Revenue Streams
Newspapers
Broadcast television & radio
Cable & satellite television
Yellow pages
Internet & mobile
Consumer mags
B-to-B mags
TV programming, license fees & retransmission
B-to-b trade shows & mag subscriptions
Education & training
Biz & professional information
Biz & professional services
Institutional End-User
Advertising
Forecast
Direct marketing
B2B promotions
Consumer promotions
Branded entertainment
Outsourced custom pubs
PR & word-of-mouth
Cable & sat TV
Consumer books
Entertainment media
Internet & mobile access & paid content
Newspaper subs
Magazines subs
Marketing Services
Consumer End-User

6. Additional Perspective Was Needed…
Rapid changes in the media & information landscape has led VSS to incorporate an additional analysis of spending in the Communications Industry grouped by Industry Sectors
Because media owners, investors and top management require greater awareness of how their companies match up against their industry peers and other industry-specific spending patterns, VSS, for the 2010 Forecast, has added an entirely new and additional data perspective:
Spending by Industry Sectors

7. Industry Sectors within Communications
Business & Professional Info & Services
Marketing Media
Forecast
Education & Training Media & Services
Targeted Media
Entertainment and Leisure
Traditional Consumer Ad Media

8. Segments within Industry Sectors
Business and Professional Information
Business Information
Professional Information
Business and Professional Services
Business & Professional Processing Services
Business & Professional Technology Services
Consumer Promotion
Business-to-Business Promotion
Public Relations & Word-of-Mouth Marketing
Business & Professional Info & Services
Marketing Media
Direct Marketing
Direct Mail
Branded Entertainment
Outsourced Custom Publishing
Pure-Play Consumer Internet & Mobile Services
Business-to-Business Media
Forecast
Education & Training Media & Services
Not-For-Profit College Instructional Media
K-12 Instructional Media
For-Profit Educational Services
Outsourced Corporate Training
Education & Training Media & Services
Targeted Media
Subscription TV
Entertainment Media
TV Programming
Home Video
Recorded Music
Videogames
Box Office
Consumer Book Publishing
Entertainment and Leisure
Traditional Consumer Ad Media
Broadcast Television
Newspaper Publishing
Consumer Magazine Publishing
Broadcast & Satellite Radio
Out-of-Home Media
Yellow Pages Directories
More extensive information on each of the industry groupings can be found in the appendix.

9. Added perspective; greater depth and detail
Total Communications Spending is on pace to increase 3.5% in 2010 and grow at a CAGR of 6.1% in period to $1.416 trillion, fueled by measured economic growth, digital technology advances, institutional spending on Business Information & Services and consumer spending on Entertainment & Leisure Media
Traditional Consumer Advertising Media will continue to decline in 2010 and 2011 as brands shift to alternative advertising and marketing strategies
Business & Professional Information & Services will be fastest growing Industry Sector in with 8.2% CAGR
Entertainment & Leisure Media to remain largest of six major Industry Sectors, growing to $ billion in 2014
Institutional End-User to remain largest and fastest growing Revenue Stream, expanding at a CAGR of 7.3% to $ Billion in 2014

10. 2009 Communications Industry Spending
Communications Spending by Industry Sector
Communications Spending by Revenue Stream
Marketing Media
6.7%
Business & Professional Info & Services
15.9%
Advertising
17.1%
Forecast
Education & Training Media & Services
21.3%
Institutional End-User
44.2%
Targeted Media
17.7%
Marketing Services
18.0%
Forecast
Traditional Consumer Ad Media
13.6%
Consumer End-User
20.6%
Entertainment and Leisure
24.7%
2009 Communications Industry Spending: $1,055.2 billion

11. 2014 Communications Industry Spending Forecast
Communications Spending by Industry Sector
Communications Spending by Revenue Stream
Marketing Media
5.5%
Advertising
16.8%
Business & Professional Info & Services
17.8%
Forecast
Education & Training Media & Services
22.3%
Institutional End-User
46.1%
Marketing Services
16.3%
Targeted Media
19.0%
Forecast
Traditional Consumer Ad Media
11.4%
Consumer End-User
20.6%
Entertainment and Leisure
25.3%
2014 Communications Industry Spending: $1,399.0 billion

12. Appendix (greater definition of Communications Industry Sectors)
Business and Professional Information & Services
Targeted Media
Marketing Media
Education and Training Media & Services
Entertainment and Leisure
Traditional Consumer Advertising Media
Examples of companies by Industry Sector

13. Business & Professional Information & Services
Forecast
Business & Professional Information
Business Information
Marketing Information
Financial & Economic Information
Credit & Risk Information
General Industry News
Professional Information
Legal & Regulatory Information
Scientific & Technical Information
Health & Life Sciences Information
Business & Professional Services
Business & Professional Processing Services
Payroll & Human Resource Services
Financial Processing Services
Other Outsourcing Services
Business & Professional Technology Services
Institutional Internet Access
Wireless Data
SaaS & Licensed Software

14. Branded Entertainment
Targeted Media
Forecast
Direct Marketing
Direct Mail
Telesales
Catalog
Direct Response Television
Other Direct Marketing
Branded Entertainment
Consumer Events
Paid Product Placement
Outsourced Custom Publishing
Custom Magazines
Custom Newsletters
Custom E-Pubs
Custom Tabloids
Pure-Play Consumer Internet & Mobile Services
Pure-Play Internet Services
Pure-Play Internet Advertising
Pure-Play Internet Access
Pure-Play Paid Internet Content
Pure-Play Mobile Services
Pure-Play Mobile Advertising
Pure-Play Mobile Access
Pure-Play Mobile Paid Content
Business-to-Business Media
Trade Shows, Seminars & Conferences
Business-to-Business Magazines
Advertising
Paid Circulation
E-Media Advertising & Content

15. Business-to-Business Promotion
Marketing Media
Forecast
Consumer Promotion
Point of Purchase
Coupons
Promotional Licensing
Premiums
Loyalty Programs
Product Sampling
Games, Contests & Sweeps
Business-to-Business Promotion
Promotional Products
Travel & Incentive Marketing
Public Relations & Word-of-Mouth Marketing
Public Relations
Word-of-Mouth Marketing

16. Education & Training Media & Services
Forecast
Education & Training Media & Services
Not-For-Profit College Instructional Media
K-12 Instructional Media
For-Profit Educational Services
Outsourced Corporate Training

17. Entertainment & Leisure
Forecast
Subscription TV
Subscription & Content
Advertising
License Fees
Entertainment Media
TV Programming
Home Video
Videogames
Recorded Music
Box Office
Consumer Book Publishing
New Books
Used Books
Audio Books
E-Books, Digital Content & Advertising

18. Traditional Consumer Advertising Media
Forecast
Broadcast Television
Network & Local Station Advertising
Network Advertising
National & Local Spot
Online & Mobile Advertising & Content
Retransmission Fees
Newspaper Publishing
Daily Newspapers
Print Advertising
Print Circulation
Weekly Newspapers
Digital Advertising & Content
Consumer Magazine Publishing
Advertising
Circulation
E-Media and Mobile Platforms
Broadcast & Satellite Radio
Broadcast Radio
Radio Stations
Radio Networks
Satellite Radio
Online & Mobile Advertising & Content
Yellow Pages Directories
Print Yellow Pages
Telephone Company Publishers
Independent Competitive Publishers
Internet Yellow Pages
Out-of-Home Media
Traditional Out-of-Home
Digital & Alternative Out-of-Home

19. Examples of Companies by Industry Sector
Business & Professional Info & Services
Marketing Media
Education & Training Media & Services
Targeted Media
Forecast
Entertainment and Leisure
Traditional Consumer Ad Media
Please note, the VSS Forecast doesn’t not report or forecast any information regarding any specific company. The list above is solely for reference to ensure readers understand the composition of each Industry Sector.