Downturn Set to Hit Thai Media.

Oct. 3--Local media outlets will compete even more fiercely next year for shrinking advertising budgets caused by the global economic slump, according to the country's largest media house.

All media, except television, would suffer because about 65 percent of all spending would be shifted to television for its more powerful impact, said Wannee Ruttanaphon, managing director of Initiative Media Co.

She said newspapers, especially the top three dailies, would survive, while smaller ones would struggle. Layoffs and cost-cutting were likely, and some magazines could go out of business.

"Now we cannot evaluate the extent of the economic slowdown. We have to see how badly military action against terrorists will affect things," said Ms Wanee. "But it is most likely the industry will be in the worst shape since the 1997 economic crisis."

This year the firm expected total advertising spending to grow by 6 ...