Key Trends
Media, Entertainment and Gaming — Recession-Resistant?
The media, entertainment and gaming industries have historically proven to be resilient during periods of economic weakness. During past economic slowdowns, consumers have continued to seek out various forms of entertainment as a means to escape, albeit temporarily, the increased stresses of daily life. With that said, it remains to be seen whether the current economic crisis will broadly and severely impact companies operating in the media, entertainment and gaming sectors or whether the discretionary income levels of the U.S. consumer will allow certain sub-sectors of the industry to continue flourishing.
Casinos Struggling to Drive Traffic
Casinos operating in major U.S. gaming destinations such as Las Vegas and Atlantic City have reported consistent declines in gaming revenues, lower traffic volume and lower average revenue per room during the first half of 2008. Given the current low levels of consumer confidence, rising unemployment and general uncertainty regarding the future state of the economy, this decline is not entirely unexpected. In an attempt to combat this trend, major resorts are discounting room rates to attract enough gamblers to keep their roulette wheels and slot machines spinning.
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Thursday, October 9, 2008
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