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S&P report shows less optimistic outlook for U.S. media and entertainment industry

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New York—The outlook for the U.S. media and entertainment industry is less optimistic than previously thought, according to a report released Thursday by Standard & Poor’s Rating Services.

The study, “Industry Report Card: U.S. Media & Entertainment,” showed slowing momentum in traditional advertising and “potential negative surprises” that could neutralize the expected boost from local elections and the Winter Olympics.

“Areas of concern are more numerous,” said S&P’s credit analyst Heather Goodchild, in a news release. “Most important, continuing deterioration of the financial health of U.S. automakers is a major risk to ad spending, already visible in the third quarter of 2005, and notwithstanding General Motors Corp.’s recent shift back to incentives.”

—Matthew Schwartz

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