Not long ago, the creative types in media kept a wary eye on the suits or the bean counters, as the business side of media is known. For years, Wall Street paid little attention to the media biz, an industry it didn't take that seriously. Now with the rise of the global conglomerates and the aftermath of dot com meltdown, many media professionals, both on the creative and business sides, are finding it necessary to pursue an MBA.

A New Order

"When we started I had 2 courses and we had about 40 people in each. Today, in any given semester we have about 400 to 500 students taking one or more classes," says Al Lieberman, Executive Director of NYU Stern's Entertainment, Media and Technology Initiative. Started in 1996, Stern's EMT program awards a certificate to those students who complete at least 9 credits in courses like Entertainment Finance and The Business of Sports Marketing. Over at Fordham Business School, Dr. Everette Dennis, Chair of the Communications and Media Management program has also seen an increased interest over the last couple of years, "We have a relatively small program, but we've had probably a 20-25% increase in applications." Fordham's program, believed to be one of the first in the country, began in the mid-80s when Arthur Taylor, a former President of CBS Network, arrived as the business school's new dean and brought in William Small, another CBS executive to head up the program.

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So why are more and more media professionals interested in an MBA? Of course, many can argue that a wave of dot-comers have decided to hide out in business school in the wake of the collapse of the dot-coms and the weak ad market. Lieberman argues that this is no trend, "It's a fundamental change because the competitive factors that are driving this are not going away. They are intensifying." He is talking about the shake up of the media landscape. Deregulation and mergers have given rise to media behemoths. Technology, without a doubt, has wreaked havoc in the industry, forcing firms to rethink their business strategies. That's one reason why Jason Oberlander, a first-year student at Columbia Business School has found the business side of media so attractive, "The technology that comes out, it's coming out so quickly, that it requires people who are able to adapt and think on their feet and are able to pursue new opportunities in order to be successful and compete effectively."

Consumers today have a rainbow of media products to choose from. Dennis says the media industry has become an important economic engine and Wall Street has taken notice, "All of the sudden this was an industry to be reckoned with." Lieberman points to shift towards cooperation and the building of alliances as well, in an industry that has been notoriously competitive. The current negotiations between CNN and ABC News would have been unheard of just ten years ago. Not only has media seen enormous domestic growth, but abroad as well says Lieberman, "For every dollar that is generated in the United States, 15 years ago the most they could look for was maybe 25 cents outside, as an export, now it is dollar for dollar."

What Does An MBA Really Offer?

"A few years ago I would have said, an MBA that would be nice, but it really isn't necessary and now I think an MBA is probably essential, if not part of an MBA, some exposure," says Dennis. He cites a growing need for better understanding of market research, audiences, how to manage change and of the cash position of a company. In the mid-80s Lieberman started a marketing firm focused on entertainment and media. At the time he couldn't find enough qualified candidates to keep pace with the growth of the firm. He ended up recruiting people right out of one of the courses he was teaching at NYU, "I taught this course that I created called, The Marketing of Entertainment Industries at the NYU School of Continuing Education. Out of the 40 or 45 adults that would come in from all kinds of industries to learn about this, I'd pick one or two that were the best and offer them jobs."

Oberland left Showtime as a Communications Manager in Sports and Event Programming, but felt an MBA was the only way to increase his chances for advancement, "I felt that doing the transition within the company would have been difficult. I certainly would have had to taken a significant step down in title and in compensation." Dennis concurs that an MBA is increasingly becoming a requirement for management in media companies, "I think people on the creative side are not going to move into major management and executive roles unless they either get this kind of background and experience on their own in some way or they go to a business school and get it where it is taught systematically."

Bridging the Gap

"One of the biggest problems was the business people who stepped into this world of creativity, where the product is creative, didn't understand the creative product, didn't understand how it made money, didn't understand how to apply the basic strategic thinking, therefore there was a huge disconnect," says Lieberman. It takes two to tango, and the creative side has also contributed to the disconnect. Fordham recognizing the interest by some creative folks to bridge this gap will be launching a new MS program soon, "It's really tailored to the people from the creative side who do need to know and understand more about business." Stern is also helping the business types better understand the creative process by encouraging Stern students to take courses in filmmaking at the Tisch School of the Arts, "They're not going to make films, but at least they understand the skills, so they don't come on a set and make complete idiots of themselves." At the end of the day, Oberland argues that you need the overall package to get ahead, "I think someone who balances the creative skills with business skills is the most suitable person to manage a business from a general management standpoint."

This article is excerpted from the Vault Career Guide to Media and Entertainment.
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