Vivendi Head Optimistic, But Cautious
November 21, 2008 at 5:32 AM (PT)
VIVENDI SA CEO JEAN-BERNARD LEVY said he will continue to "cut costs and be cautious" as he "has no clue" how the current economic slump will affect the company's business, reports BLOOMBERG NEWS. While consumer spending may decrease, market research shows that "entertainment is becoming as essential as food and health" and that "the kind of digital entertainment that we have is quite cheap," LEVY said at a conference in LONDON TODAY (11/21).
VIVENDI may benefit as consumers shift spending from expensive leisure activities such as travel and restaurants, to cheaper entertainment products such as music, video games and movie theater visits.
LEVY reiterated VIVENDI's businesses are holding up well in the economic slump and the company hasn't seen any sign of slowdown in sales yet. He also said it would be "very bold" to assume VIVENDI is "immune just because entertainment has become so essential."
VIVENDI's assets include the UNIVERSAL MUSIC GROUP, the world's largest music company.