• by Wayne Friedman , December 7, 2015

Although a majority of media and entertainment executives agreed the economy has improved versus a year ago, many are concerned about volatility in currency and increased political unrest — especially in and around Europe.

A new study from EY, the assurance, tax, transaction and advisory service business, says 36% of media and entertainment executives are worried about volatile currency fluctuations.

Many U.S.-based media companies have seen unfavorable international results in recent reporting periods with sinking financial results due to this activity.

Media executives are also concerned, with 23% worried about slowing growth in key emerging markets; 20% concerned about the economic and political situation in the Eurozone; 14% concerned about increased global and regional political instability; and 7% worried about the timing and pace of interest rate rises in the U.S.

With regard to the economy overall, 81% say it has improved, up from 52% who touted economic gains a year ago.

Going forward, executives believe the mergers-and-acquisitions market will improve, with 73% pointing to this (up from 49% last year). Some 24% say it will remain stable and 3% that it will decline.

In the next 12 months, nearly 60% of media and entertainment executives say they will be focused on cost reduction and operational efficiency.

With regard to acquisitions and deal-making, the top five investment destinations are China, the U.S., the United Kingdom, India, and Australia.

The survey was conducted in August/September, with 70 media and entertainment executives -- 69% C-suite executives; 30% senior vice presidents, vice presidents or directors; and 1% heads of business units. EY referred to the global organization, and may refer to member firms Ernst & Young Global Limited.