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BBC Charter Review

Enders Analysis is a firm believer in strong public service broadcasting which boosts the entire UK creative industry and is consumed by almost everyone. We have published a number of reports covering the BBC in the run up to Charter Review. To download any of our reports or hear interviews please click on the links below:

Claire Enders discusses Charter Review on BBC Radio 2's Jeremy Vine show, 16/07/2015. The interview starts at 7 minutes 27 seconds

BBC to pay for the over-75s

The plight of the BBC post-intervention

What should the BBC be for?

Latest reports More

  • TalkTalk
  • Fixed Line
  • Telecoms

TalkTalk’s June quarter delivered Group revenue growth of 3.5% with a modest slowdown in consumer, impacted by acquisitions and disposals, and a sharper drop in business

In a competitive trading environment, organic growth was likely suppressed, with the company’s focus being more on integrating the acquired bases of Virgin Media and Tesco

Guidance was reiterated with clear routes towards revenue growth targets of 5% in FY16 and confidence in the (challenging) medium term goal of 25% EBITDA margin in FY17

  • Internet
  • Media
  • Press

A cash offer of £844m from the giant Japanese financial information business Nikkei, a sometime partner of the FT, was too attractive to pass up for Pearson, whatever strategic reservations it felt about offloading the title or doing so now

The deal does not include Pearson’s coveted 50% stake in the Economist (or the FT’s London headquarters), so represents a considerable premium, of 35x earnings and 3x revenues by our estimates

Increased competition in the premium financial information market suggests the FT was a good consolidation opportunity. For Nikkei the move develops its opportunities in Europe and the US

  • Apple
  • Internet
  • Media
  • Mobile
  • Technology
  • Telecoms

Apple delivered strong results in Q3 2015, selling a record number of iPhones for the June quarter, though iPad sales slid dramatically as consumers switch to ‘phablets’ and the company did not provide any detail on early sales of Watch, its biggest product launch since 2010

We remain bullish both on the iPhone and the Watch’s long term potential, though the latter remains a work in progress and, like many of Apple’s existing customers, we await the next iteration with interest; by contrast the iPad may have peaked already

Rising revenue from App Store, up 24% year-on-year, as well as new products like Apple Music and Apple Pay, should continue to boost the contribution from Services, and we expect this to evolve into a more material part of the business, but ultimately it’s still all about the iPhone

  • BBC
  • Media
  • TV
  • UK Media

The recently elected Conservative government took less than a week to negotiate a licence fee settlement with the BBC immediately prior to Charter Renewal in which it will offload the government’s over-75s licence fee subsidy on to the BBC in return for various financial benefits

But, there are strings attached to a financially poor settlement, making it very difficult for the BBC to protest in the run-up to a charter that promises a major diminution in its ability to contribute to the UK creative economy

The only possible gainers are the commercial media, though the benefits may prove much less than some anticipate, however pleased the newspaper publishers may be by the Chancellor’s criticism of the BBC’s “imperial ambitions” in online news. Much more to be feared is the likely negative impact on the UK TV production sector

  • BBC
  • Media
  • TV
  • UK Media

Last Monday’s (6 July) announcement by the Secretary of State marks the second major direct intervention by government without recourse to public consultation in the financing of the BBC throughout the corporation’s history. The previous occasion was 2010.

As in 2010, the government has interfered by top-slicing the BBC’s licence fee revenues. We estimate the current annual top-slicing component that will appear in the annual accounts for 2014/15 (BBC year running from April to March) to be in the region of £525 million, including funding the BBC World Service for the first time (est. circa £245 million). By the time the BBC fully absorbs the over-75 subsidy (worth £608 million) in 2020/21, we are looking at a total revenue impact of circa £750 million; that is without taking inflation into account.

  • Internet
  • Media
  • Press
  • UK Media

Brands are investing more than £5.2 billion a year in content strategies, £1.2 billion of it with consumer media, and investment is growing at 25% per annum, massively outstripping growth in traditional advertising

Content marketing defies the broader direction of travel in the digital era – response-measured programmatic advertising – by expressing value in content and context, much of it at the top of the discovery funnel

In a rapidly converging marketing value chain some consumer publishers are adopting agency values and practices by responding to the changing demands and expectations of their advertisers