PBI has drawn on WealthInsight’s research to analyse a specific industry which plays a major part in driving high net worth wealth creation. This month PBI looked at the media industry in the UK, the US, France, India, and Poland.
The media industry has been shaken by a number of scandals in the past years, forcing the industry to review its course of action.
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The most mediatised is by far the ongoing phone hacking scandal by several of Rupert Murdoch’s News International titles, among which the late flagship News of the World, which closed after 168 years.
Allegations of phone hacking first emerged in 2005 and eight people, including two former editors of the News of the World, have now been charged with conspiring to intercept voicemails. The charges relate to 600 alleged victims, including celebrities, sport stars, politicians and victims of crime.
A wide range of witnesses, including newspaper reporters, management, proprietors, police officers and politicians of all parties, all gave evidence to the Inquiry under oath and in public.
The scandal halted Rupert Murdoch’s BSkyB takeover bid and prompted the arrest of several key figures.
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By GlobalDataThis and the too widespread shackle to free press, suggests that there are significant risks doing business in the media sector.
Although the media sector, and particularly the print press, is affected by the recession and regular cuts, it continues to be an actor in the creation of UHNWIs in some countries.
Key Figures
– 1,108,800 HNWIs, or 6.6% of the global high net worth population, are involved in the media sector.
– Key geographies: countries benefiting from freedom of press and speech where the press is spared from cuts are a hub for media moguls.
– The UK is a major actor in the media sector and a pillar for the print press. The industry represents the primary source of wealth for 9% UHNWIs. The number of UHNWIs who made their wealth in media grew by 18% between 2007 and 2011, more than in any other sector. The country holds the first role when it comes to scandals: being the home of News International and hosting the phone-hacking trial.
| Name | Wealth (US$billions) | Sector | City of residence |
|---|---|---|---|
| Mrs. Kirsty Bertarelli | 10.60 | Media | Gstaad, Switzerland |
| Mr. Clive Ian Calder | 2.40 | Media | Cayman Islands |
| Sir David Rowat Barclay | 2.20 | Media | Brecqhou Island |
| Mr. Alexander Frank Beard | 2.10 | Media, Energy | Switzerland |
– Americans are heavy television viewers. In the USA, the average viewing time continues to rise. They are 7% of UHNWIs to have made their wealth in the media industry. The USA is also home to the world’s richest man in the sector, owner of Bloomberg LP, Michael Rubens Bloomberg. The mayor of New York City has a estimated fortune worth $25bn. An other famous rich American media mogul is Rupert Murdoch, with a fortune estimated at $11bn.
| Name | Wealth (US$billions) | Sector | City of Residence |
|---|---|---|---|
| Dr. Michael Rubens Bloomberg | 25.41 | Media | Boston |
| Mr. Keith Rupert Murdoch | 11.46 | Media | Melbourne, Australia |
| Mr. Charles William Ergen | 10.85 | Media | Oak Ridge, Tennessee |
| Mr. Samuel Irving Newhouse Jr. | 7.92 | Media | New York |
– In France, media represents the source of wealth for 6.8% of UHNWI. The number of UHNWI in the sector has been strongly on the drop between 2007 and 2011, decreasing by 20%. The sector is expected to grow by 3% by 2016. French richest media mogul is the entrepreneur Jean-Claude Decaux, who made his wealth in the advertising industry. France’s entrepreneurship level is the highest in the media sector where it reaches 27%.
| Name | Wealth (US$billions) | Sector | City of Residence |
|---|---|---|---|
| Mr. Jean-Claude Decaux | 5.45 | Media | Paris |
| Mr. Vincent Bolloré | 1.47 | Media | Paris |
| Mrs. Elisabeth Badinter | 1.36 | Media | Boulogne-Billancourt, Hauts-de-Seine |
– The media industry in India remains quite behind other sectors. Being the primary source of wealth to 3.9% of UHNWIs, the industry holds the 11th rank. However, the list of the top 20 billionaires in the country takes a census of two in the media industry. Indu Jain is the Chairperson of The Times Group, the country’s largest media house. Kalanithi Maran is the owner of the Sun Group which has 32 television channels with the reach of more than 95 million households in India.
| Name | Wealth (US$billions) | Sector | City of Residence |
|---|---|---|---|
| Mr. Kalanithi Maran | 2.80 | Media | Chennai |
| Ms. Indu Jain | 1.90 | Media | New Delhi |
– Poland‘s UHNWIs are 6.2% to have made their fortune in the media industry. The sector performed well during the period 2007-2011. Over those years, the media sector was the best performing, increasing its number of UHNWIs having media as their primary source of wealth grew by 11%. Among the four billionaires that the country has, one made his fortune in media, the other three being in financial services. Zygmunt Solorz-Zak, the founder and president of the Supervisory Board of Cyfrowy Polsat, has an estimated wealth of $2.3bn.
| Name | Wealth (US$billions) | Sector | City of Residence |
|---|---|---|---|
| Mr. Zygmunt Solorz-Zak | 2.63 | Media | Warsaw, Poland |
For more detailed reports on the countries featured above click here.
