Virgin Media Q3 2010 results: resilience under pressure
VMed’s Q3 results showed continuing strength in the face of heavy marketing by BT Retail and BSkyB, although cable churn increased significantly
There are plenty of further challenges on the horizon, including a downturn in consumer confidence and later, the launch of YouView and wider deployment by BT of next generation access
The broad based nature of the company’s growth and its plans for further product development in TV and broadband continue to give us confidence in the potential for further growth in cash flow, albeit at a more modest pace |
Media, Mobile, TV, Fixed line, Internet, Technology, Telecoms |
October 2010 Access this report
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Versatile multiproduct strategy: Sky fiscal Q1 2011 results
A switch in marketing focus from HD to home communications and sports appeared chiefly responsible for a record quarter in multiproduct take-up, with the biggest increases being registered in broadband, telephony and line rental
Although Q1 2011 net HD take-up halved against the previous quarter, partly reflecting reduced emphasis in marketing plus the World Cup factor, there is abundant room for growth and we expect a strong Q2 as Sky enlarges its HD offer with the ITV digital channels, and prepares for the launch of Sky Atlantic HD in early calendar 2011 |
Media, TV, Fixed line, Telecoms |
October 2010 Access this report
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Ofcom gives YouView clearance
Ofcom’s decision not to investigate Project Canvas under the Competition Act removes one more regulatory obstacle to the launch of the broadband connected TV service with the brand name YouView
It looks increasingly as if the YouView launch will experience further delay, with autumn 2011 looking steadily more likely as disputes continue over the satisfactoriness of the technical specifications released by YouView for meeting manufacturer needs |
Media, TV, Fixed line, Internet, Technology, Telecoms |
October 2010 Access this report
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UK Residential Broadband Market 2010
The decline in UK residential broadband market growth has paused due to accelerating adoption by older householders and increased household formation. We expect 970,000 net additions in 2010 and 20.5 million broadband households by 2015. However we expect growth will continue to decline from 2011 as the impact of the government spending review feeds into consumer confidence and the market becomes increasingly saturated |
Media, Mobile, TV, Fixed line, Internet, Technology, Telecoms |
October 2010 Access this report
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Google TV: US launch imminent
Google has confirmed the first content partners for the US version of Google TV – including Turner, HBO and Netflix – which is expected to launch within the next 2 weeks
No new distribution partners have been announced and rumoured pricing for enabled Sony TV sets suggests that Google TV will initially be a premium product
At present, Google TV’s main selling point appears to be providing a decent web surfing experience to the TV set – in our view, better content is needed if it is to compete with Apple TV and other internet TV devices |
Media, TV, Internet |
October 2010 Access this report
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2010 TV NAR bounce back to continue into Q4
The bounce back in TV NAR (Net Advertising Revenue) now looks set to continue into Q4, resulting in full year- on-year growth of about 12.5%
The bounce back has more than reversed the -11% fall in 2009, although it still leaves TV NAR in 2010 about -5% below pre-recessionary levels in 2007 (nominal prices). Meanwhile, persistent worries about the economy and the impact of government debt reduction measures suggest flat growth in 2011 |
Media, TV |
August 2010 Access this report
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No quick fixes... fundamental change required: ITV interim 2010 results
The bounce back in H1 2010 advertising revenues (18% up over H1 2009), combined with extra cost savings, turned last year’s £72 million loss into this year’s £71 million profit; but could not disguise the need for transformation of a business overly dependent on an advertising model in long-term structural decline |
Media, TV |
August 2010 Access this report
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The bigger picture: Sky fiscal Q4 2010 results
Strong FY 2010 adjusted revenue growth of 11% was powered by a 15% rise in subscription revenues, reflecting a mixture of solid subscriber growth in spite of the recession and burgeoning multi-product sales, with HD subscriptions registering a net increase of 1.63 million to end the year at 2.94 million and the telecoms sector breaking into operating profit in Q4 |
Media, TV |
August 2010 Access this report
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Virgin Media Q2 2010 results: real top line strength
Virgin Media’s Q2 results showed real strength in the top line, with continuing growth in cable revenue due to increases in both price and volume compounded by long-awaited growth in revenue from mobile and B2B, although overall performance was compromised to an extent by higher costs
The sale of VMtv to Sky cements a de facto pay TV duopoly by clarifying the distinctive wholesale and retail roles of the two leading players, against which others will find it hard to compete |
Media, TV, Fixed line, Telecoms |
July 2010 Access this report
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Sky and VMtv and Five: competition questions
The transaction size means that the OFT was obliged to examine BSkyB’s purchase of the VMtv channels. The transaction will probably be approved because of the small impact on Sky’s share of NAR (Net Advertising Revenue), which will rise from around 14% to 16% |
Media, TV |
July 2010 Access this report
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Spanish free-to-air TV rebounds
Spain’s free-to-air (FTA) television advertising recovery may stall in H2 2010, but growth at Telecinco and Antena3 will remain vigorous due to the end of airtime sales on state-owned Televisión Española (TVE)
The two broadcasters have a strong, resilient model, with a high share of cheap, in-house programming, improved pricing power due to consolidation and large multichannel capacity on the digital terrestrial television (DTT) platform (analogue was switched off in April) |
Media, TV, Non-UK Media |
July 2010 Access this report
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Orange sets exit strategy from premium TV
FT has put majority stakes in Orange Sport and Orange Cinéma Séries on the block, and claims to have held discussions with News Corp. We think it unlikely that an investor would be interested in entering the French pay-TV market, dominated by Vivendi’s Canal+
We believe FT could find a buyer for Orange Sport in Disney’s ESPN, which could prove viable if a cross-retailing deal is reached with Canal+. A Eurosport merger is another option. Orange Cinéma Séries could be viable under a new owner, if it widens it distribution to other platforms |
Media, TV, Non-UK Media |
July 2010 Access this report
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Sky Sports on BT Vision: an expensive defence
BT’s launch of Sky Sports should help reduce customer churn to Sky and other competitors, although we expect the extent of ‘win back’ to be modest
The financial impact on BT should be positive but of limited significance at group level due to the negative margin involved on the Sky Sports element of the bundle
Sky is likely to deploy a number of countermeasures that may negate some of the benefits to BT |
Media, TV |
July 2010 Access this report
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News Corp’s bid for BSkyB: not just a matter of price
News Corp’s bid for the shares it does not own in BSkyB is unlikely to generate much concern at the OFT because newspapers and TV will be seen as being in separate markets
But, separately, the Secretary of State for Business, Vince Cable, is entitled to make a ‘public interest’ intervention that requires the plurality issue to be assessed alongside the competition investigation over the next few weeks |
Media, TV, Press |
June 2010 Access this report
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Google searches for TV future
Launching in the US this autumn, with international rollout due in 2011, Google TV uses enhanced versions of the Android mobile OS and Chrome browser to deliver full access to the internet via ‘Smart TV’ sets and devices
Google TV extends the company’s vision of the open internet to the living room, beyond the PC and mobile, where internet-enabled TV sets will take increasing share, raising search revenues, with potential to take a piece of the $150 billion global TV ad market |
Media, TV, Internet |
June 2010 Access this report
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Project Canvas and the future of television
Subject to BBC Trust approval, Canvas looks almost certain to launch in spring 2011 after the OFT decided that it did not have the jurisdiction to review Canvas under the merger provisions of the Enterprise Act 2002. The OFT decision does not rule out complaints on other grounds, but the chances of persuading the regulators look very small |
Media, TV, Fixed line, Internet, Telecoms |
June 2010 Access this report
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All about multi-products: Sky fiscal Q3 2010 results
Sky Q3 2010 adjusted revenues showed strong year-on-year growth of around ten percent in the year to date (10.7%), and in the third quarter (11.1%), marked by strong product sales into its existing subscriber base, especially in HD, but also solid progress in broadband, telephony and line rental |
Media, TV, Fixed line, Telecoms |
May 2010 Access this report
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Sky and the Competition Appeal Tribunal order on interim relief
Implementation of Ofcom’s wholesale must-offer (WMO) remedy for Sky Sports 1 and 2 is to proceed while the Competition Appeal Tribunal (CAT) hears Sky’s appeal, but subject to conditions which include restricting it to three parties: Virgin Media, BT and Top-Up TV
The settlement marks an important concession by Sky on the principle of enforced wholesale, and seems implicitly to reduce the WMO issue to one of price |
Media, TV |
May 2010 Access this report
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Virgin Media Q1 2010 results: volume growth strengthening; still potential for improvement
VMed’s Q1 results were again strong, with price increases and opex reduction continuing as the main drivers, underpinned by strengthening volume growth
The company’s recently completed debt refinancing gives management much greater flexibility in deciding how much to reinvest in growing the business
The outlook continues to look very encouraging, with the April price increases, further cost reduction, modest turnarounds at Mobile and Business and improved wholesale terms for Sky content still to come |
Media, Mobile, TV, Fixed line, Telecoms |
April 2010 Access this report
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UK TV NAR bouncing back
After falling 16% across 2008 and 2009, UK TV NAR (net advertising revenue) looks like it will grow 10% year on year in 2010, amidst continued lack of visibility over the UK’s post election economic outlook
Ofcom’s consultation on the rules governing advertising proposes to scrap the withholding of advertising rule that applies to commercial analogue PSB channels, along with the conditional selling rule that applies to all broadcasters – neither action will have any short term material effect |
Media, TV |
April 2010 Access this report
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