U.S. media stocks remain sluggish

Despite better-than-expected GDP report

NEW YORK -- U.S. media and entertainment stocks didn't benefit in early Friday trading from a better-than-expected GDP report that signaled that the longest recession since World War II has indeed eased.

The Commerce Department said that the U.S. economy shrank at an annual pace of 1% in the second quarter after a revised 6.4% decline in the first quarter -- the worst in nearly three decades. The first-quarter drop was previously pegged at 5.5%.

The Dow and S&P 500 index were up slightly in the first 90 minutes of trading, but most big media stocks with the exception of News Corp. were lower.

In their earnings calls, some sector biggies that have already reported their quarterly results have also spoken of signs of improved economic and stabilized advertising trends.