A Dead Cat Bounce in Legacy Media?

There are many sayings in Wall Street lore that I love and have used to make a point over the years. One of my favorites is the “Dead Cat Bounce.” What this means is a temporary recovery of the share price of a company that has taken a real shellacking of late. For example, a stock was at 100 and dropped to 30. It then jumps back for a brief time to 35 as short-sellers cover and then continues its downward slide. Wall Street analysts will sometimes say “Even a dead cat will bounce if it is dropped from high enough.” At the risk of offending the cat lovers among my readership (I am an enthusiastic dog guy), I think an argument can be made that a dead cat bounce might be in evidence in the conventional media world these days.

Several years ago, newspapers were essentially left for dead. Many are still struggling. The two leaders, THE NEW YORK TIMES and THE WASHINGTON POST, are currently enjoying something of a revival. The TIMES now has over 2.5 million digital subscribers and revenue is up from subscriptions although advertising is still struggling. The Wall Street Journal has nearly 1.3 million subscribers while the POST has recently crossed the 1.0 million mark after a spirited marketing effort. Some say the POST has been energized by Jeff Bezos who has added a large number of reporters and a financial cushion. One reader told me (and I disagree) that the paper has been much helped by the release of Steven Spielberg’s film, THE POST.

How about MSNBC? Its ratings have soared over the last year and do not forget the late night talk shows. Jimmy Kimmel, Trevor Noah, and Seth Myers all seem to have a new lease on life and they appear to be having the time of their lives each night.

Why? Well, it seems that we have a controversial person in the White House. The papers have lots of material to work with and are turning investigative reporters loose as our the cable channels. The comics are doing some wonderful political satire and some of their material is hilarious. Saturday Night Live seems more vibrant that it has been in decades and big name talent appear to be lining up to do cameos. Two on air talents, Bill Maher and Samantha Bee, to me, have crossed the line of propriety with their comments.

So the question I have for you is the apparent chaos in the White House and Congress the real reason for the renewed vigor of these media properties? If someone else is president on January 20, 2021 will these legacy media properties and formats continue their relentless slide of recent years? Is their current buoyancy real or is it a media version of a “dead cat bounce.” Will newcomers stick with them for the long haul?

If you would like to contact Don Cole directly, you may reach him at doncolemedia@gmail.com