Piracy is impacting entertainment revenues worldwide. New entertainment technologies are cannibalizing revenues from old technologies. Novel delivery platforms, especially Internet-based and mobile applications, offer growth opportunities as well as competitive and operational challenges. The very nature of advertising is being transformed virtually overnight.

L.E.K. possesses a deep understanding of these and the many other factors driving the media and entertainment industry. We have a proven track record of helping clients address their most important challenges and opportunities and develop strategic initiatives with greater certainty. For example:

We work with some of the most recognized companies in the business.
In one of the largest film studio acquisitions in recent history, for example, we advised the board of the acquiring organization on future industry trends. This analysis helped build consensus around the deal by increasing board members’ confidence in the cash flow potential of the transaction.

We provide clients with the insight they need to invest wisely and proceed with confidence.
Investors participating in one of the largest radio transactions of 2005 hired L.E.K. to analyze how technologies such as satellite radio and podcasting would affect revenues. Our analysis gave the investors confidence that the business opportunities associated with the deal were both promising and viable.

We are expert in forecasting revenues and profits in a highly dynamic industry.
We assisted a private equity consortium that was contemplating the purchase of one of the world’s largest music companies during a time of great volatility within the industry. We predicted the bottoming out of the market and forecast the next three years of industry revenues within one to two percent, significantly shaping the outcome of the deal.

L.E.K.’s exhaustive research informs and enriches our deep industry knowledge. Entertainment clients, for example, benefit from our position as the recognized leader in understanding the effects of piracy, having conducted over 17,000 consumer interviews in 22 countries on the subject. Advertising clients have access to business intelligence derived from L.E.K.’s proprietary databases, which model the drivers used to determine CPMs by media type, enabling us to forecast advertising pricing.

To uncover and create new opportunities and assess and mitigate potential risks, clients turn to L.E.K. from across the full spectrum of media and entertainment specialties, including:

• Broadcast and communications 
• Filmed entertainment 
• Ancillary markets 
• Music 
• Print media 
• Destinations 
• Site-based entertainment