Homepage

Enders Analysis provides a subscription research service covering the media, entertainment, mobile and fixed telecommunications industries in Europe, with a special focus on new technologies and media.

Our research is independent and evidence-based, covering all sides of the market: consumers, leading companies, industry trends, forecasts and public policy & regulation. A complete list of our research can be found here.

 

Rigorous Fearless Independent

The expected service revenue boost from in-contract price increases failed to materialize this quarter, nullifying the upside surprise last quarter.

Traffic growth picked up again to 17%, lending further weight to the view that at least some of the recent sharp slowdown was somewhat one-off in nature.

Government statistics imply steep mobile price inflation while the opposite is true—which may help to diffuse the current furore over in-contract price increases.

The UK broadcasting sector is undecided on how much to engage with a technology that could simultaneously threaten industry jobs, intellectual property, and competitive advantages. Some do not see themselves as in a position to take risks with AI, but the sector must consider the longer-term risks to inaction.

There is clear value to be unlocked along the production pipeline with AI, and unrealised opportunities for content owners to apply AI to their libraries and enhance discovery.

None in the industry can ignore how AI changes the wider competitive landscape: new AI services will provide audiences with alternative products, and disrupt distribution.

The centre of gravity for kids’ media has shifted. YouTube now captures around 44% of UK children’s viewing, with broadcasters adapting to stay relevant in an environment built around algorithmic discovery and constant replay.

Alongside the BBC, YouTube is one of the few spaces where education and entertainment intersect. Around a third of our sample of 5–8s YouTube Kids videos were educational, while older cohorts gravitate toward faster, creator-driven formats.

There remains a distinction between YouTube and broadcaster kids’ programmes: we found YouTube-native content twice as fast, and brighter, although the broadcast content that also runs on YouTube shows less disparity. Broadly, on YouTube, US-originated formats dominate.
 

DMG Media, the owner of brands including Daily Mail Online and Metro, has complained about AI overviews leading to a drop in referrals to its websites of 89 per cent. The publisher told the Competition and Markets Authority that Google’s summaries were “carefully constructed” to ensure “the user has no reason to read any further” than the search page. Meanwhile, Enders Analysis, the research group, has warned publishers that “search traffic is no longer a given” in the age of artificial intelligence.

François Godard, senior analyst at consulting firm Enders, explains: "The future of Eurosport without the backing of a major streaming platform or a global group like Warner seems difficult to me. Eurosport, despite its name, has always been a network of national channels that are quite different from each other (Eurosport Germany is very different from Eurosport Italy), even if they are united by some important rights, such as the Olympics. I would bet on Eurosport being sold piecemeal to national operators. In Italy, for example, Discovery is potentially of interest to Sky Italia."

 

Claire Holubowskyj, at Enders Analysis, said many issues had been 'brewing for quite some time' and the arrival of a new chief executive hadn't resulted in a 'material step change'.

She said: 'Rose needs time to get going, but the business does not necessarily have lots of time to give her as the results have been so negative for a while.'

She added that with AI taking a dominant role it was 'unsurprising' creative staff were getting 'jittery' about the future.

'If that's the new direction, they will be worrying about what that means for the traditional model of creatives driving well-thought-out ad campaigns.'

"It is Ted Sarandos who is behind Netflix's original creations - which initially tended to make acquisitions - and behind the fact of offering a whole series allowing binge watching," emphasizes François Godard, analyst at the firm Enders Analysis.

Even if it's not without risk. "He'll have to prove that there won't be any destruction of value with an acquisition of this size," François Godard reiterated. A challenge, especially since the CEO himself pointed out in October, during a conference call with analysts, that Netflix had grown without mega-acquisitions. Until now.

The lukewarm reception may not actually matter. "The main purpose of Prime (alongside peripheral things like making the overall Prime subscription even more stickier for consumers) is to sell third-party video subscriptions and rent films – original Prime content is a hook to get viewers there in the first place," explains Tom Harrington of media researchers Enders Analysis