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 United Kingdom, the United States, Australia, Spain and Canada.
The media industry is one of most sought after industries due to its importance to communication, a necessary component to not just business, but everyday life. This makes it successful media entrepreneurs some of the wealthiest in the world.
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However, with such an important role comes heavy scrutiny. A number of scandals have brought the industry into the spotlight and have forced much review and reconsideration of strategy.
By far, the one with the most attention is the ongoing phone hacking scandal relating to several of Rupert Murdoch’s News International titles. Among these is the now-closed flagship title, the News of the World. The allegations were enormous with over six hundred victims including celebrities, politicians and victims of crime.
Not only did this affect Murdoch, with his BSkyB takeover bid halted, but the entirety of free press was shake with many seeing larger risks when entering the media sector. Despite being affected by these recent issues, as well as the recession and regular cuts, media continues to be an effective creator of wealth for high net worth individuals (HNWIs).
Key Geographies
Areas that benefit from the freedom of press and speech are prime regions for investment in media. In addition, countries where the press is usually spared from cuts are key targets for media moguls.
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By GlobalDataThe United Kingdom is a huge player in the media sector and a pillar of inspiration for the print press. 11% of HNWIs have created their wealth in this industry, a larger percentage than most countries and this is despite a 2% decline in this number between the years 2007-2012. This decline comes as no surprise due to it being the home of the News International phone hacking scandal.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Sir David Rowat Barclay | 2.2 | Media | Sark |
| Mr Clive Calder | 2.1 | Media | Cayman Islands |
| Mr Alexander Beard | 2.1 | Media | London |
The United States is a country with a large television viewership and average viewing time continues to rise. 8.8% of American HNWIs create their wealth in the media with the number of media HNWIs rising 47% between 2008 and 2012. In addition, the second richest man in this sector, Michael Bloomberg, is from the US.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Dr. Michael Bloomberg | 24.0 | Media | New York |
| Mr Charles Ergen | 19.9 | Media | Littleton, Colorado |
| Ms Laurene Jobs | 13.8 | Media | Palo Alto, California |
Australia has a flourishing media industry with 6.2% of HNWIs and 5.7% of UHNWIs gaining their value in this sector. In addition, the number of HNWIs in this field jumped by an impressive 17% between 2008 and 2012. The third richest individual in this business, Georgina Rinehart, is from Australia. The reason for their high value on media is partly due to their high level of freedom of press in the country with it ranked 28th, the second highest of the countries in this report.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Mrs Georgina Hope Rinehart | 20.6 | Media | Perth |
| Mr Reginald Grundy | 0.8 | Media | Sydney |
| Stamoulis Family | 0.4 | Media | N/A |
Spain remains strong in this industry despite a 27% drop in the number of HNWIs in the media sector between 2007 and 2011. Even with this significant fall, 6.2% of HNWIs are still within the sector as well as 7.7% of UHNWIs.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Mr Ignacio Moreno | 0.8 | Media | N/A |
| Ms Maria del Carmen Careaga Salazar | 0.2 | Media | N/A |
Canada has a well developed media sector and currently places 18th in press freedom, the highest placing of all the countries in this report. With a large cultural output, it is no surprise that 5.8% of HNWIs and 6.3% of UHNWIs create their wealth through media in Canada. Recently, there has even been a 2% rise in the number of HNWIs in this field.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Baron David Thomson | 6.1 | Media | Toronto |
| Ms Taylor Thomson | 2.4 | Media | Toronto |
| Mr Guy Laliberte | 1.7 | Media | Montreal |
