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Public Service Broadcasting

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 and Channel 4 over the last few months. To download any of our Channel 4 reports please click on the links below:

Channel 4 viewing trends

Channel 4 market impact

Channel 4: sustainability and privatisation

Latest reports More

  • Amazon
  • Facebook
  • Google
  • Media
  • Mobile
  • Technology
  • TV

Amazon’s marketing services bring in a growing stream of direct, high-margin revenue, but their main role is still in supporting vendor partnerships

Amazon uses customer profile data to profit from its own media and that of others, illustrating the value of a direct customer relationship in online advertising

In the future, Amazon’s moves into video content and voice interfaces are likely to significantly expand ad inventory, but maintaining the trust of shoppers is not straightforward

  • Liberty Global
  • Virgin Media
  • Fixed Line
  • Media
  • Telecoms
  • UK Media

Virgin Media successfully ramped up its network extension in Q4, passing more than double the homes in the previous quarter, and above the rate required to meet 2017 expectations

Net customer additions were, however, relatively weak, entirely due to extra churn caused by the price increase implemented in the quarter. The price increase’s effect on ARPU and revenue growth was muted by ARPU discounting for new customers, leaving revenue growth broadly unchanged

Subscriber growth has already improved in early 2017, and is likely to continue to improve through the year. The discounted ARPU impact will be more sustained, but robust revenue growth is still likely throughout the year

  • 21st Century Fox
  • Sky
  • Sky Deutschland
  • Sky Italia
  • Media
  • TV

21st Century Fox’s (21CF) second attempt to acquire Sky comes at a time when the TV world faces mounting online pressure, accompanied by erosion of territorial boundaries in an increasingly global marketplace 

Despite some investor concerns about Sky’s ability to deliver its operating targets over the next five years, we consider the underlying business to be sound and starting to show benefits that derive from its international scale 

21CF’s bid has a strong strategic logic in terms of growing international scale further and evolving a global platform that integrates shared content strengths in sports and entertainment with Sky’s top of class expertise in customer relationships 

  • DMGT
  • Guardian Media Group
  • Independent Print Ltd
  • News Corp
  • News UK
  • Telegraph Media Group
  • Trinity Mirror
  • Media
  • Press

Despite a slowing of circulation decline in 2016, UK national newspaper brands continue to face profound structural challenges, with print advertising spend expected to be down at least -15% for the year

In digital advertising, tech and distribution platforms continue to dominate growth with newspaper publishers and other content producers competing for an increasingly small slice of the revenue pie

In this context, many publishers are turning to paid membership and content subscription models to generate online revenues; success here will require a radical shift in thinking to a retailer mindset that delivers high quality reader experiences through integrated execution of tech, data, marketing and design

  • Vodafone
  • Mobile
  • Telecoms
  • Vodafone

Vodafone Europe’s mobile service revenue growth worsened to -0.6% from -0.2% in the previous quarter, the first deterioration following at least nine quarters of consecutive improvement, with the UK particularly weak

The company could nonetheless grow profits handsomely if revenue growth stabilises at this level, with more clarity on the medium term prospects for this likely to come with next quarter’s results and guidance for 2017/18

Our main concern continues to be the company’s declining subscriber share, particularly in consolidating markets where its historic advantages of having high market share may be rapidly eroded

 

  • Brexit
  • Media
  • Technology
  • Telecoms

The Bank of England predicts a mild decline of real household consumption growth to 2% in 2017, as higher inflation chews at disposable income

City forecasters are more circumspect on consumption growth, and we agree that households are likely to display more caution on expenditure relating to non-essentials

Retail sales, a bellwether for advertisers, look subdued in the New Year, and we maintain our forecast of flat advertising expenditure growth in 2017