Yahoo 30 June 2016
Claire Enders was quoted in an article on the stabilization of Financial Markets, with London’s FTSE 100 closing Wednesday above its pre-referendum level for the first time since the vote. Claire said that any celebrations were premature, suggesting that the market stabilization would be short as Britain braces for a potential recession. She said “things have become calmer in the financial markets as no one is pressing the button in the political sphere, but the reality is we are settling in for a very long-term political crisis with no chance of a common unified position before autumn.” She added that it was “very unusual” for a political crisis to cause an economic crisis, as the reverse was normally the case. “We in the business community are doing all we can to calm things down, and that’s working and the wheels are moving, but it’s a short-term stabilization, and there is no doubt that a 20% drop in the value of ITV is very significant. And overall, the picture indicates a strong chance of recession.”
Variety 28 June 2016
Alice Enders was quoted in an article on Brexit and the major consequences for UK Media companies, as those in favour of Brexit contend that Britain’s new trade agreements with the E.U. and other countries will be as good as what Britain currently enjoys as an E.U. member, including complete access to the European single market.
Alice dismisses that idea. Even if it were true, it would take many years to put in place. She said “it is going to be five to seven years before the rubble is sorted, before we are out of the E.U. and have completed the negotiations on whatever new trade agreements we wish to enter into on a reciprocal basis, and have had that ratified by the E.U. and by the U.K. parliaments and everybody else that needs to ratify it”. Adding that “We are talking here about five to seven years of uncertainty regarding market access to the E.U. The uncertainty is causing the financial market shocks that will affect the consumer pronto. And that consumer is what drives the advertising economy, the retail sector and everything else… Everybody is going to be impacted by this seismically.” Another factor affecting British stocks is the political turmoil in the U.K. now, with the resignation of Prime Minister David Cameron and a mutiny in the senior ranks of the opposition Labor Party against leader Jeremy Corbyn. Scottish First Minister Nicola Sturgeon has also raised the possibility of a new independence vote for Scotland. Alice said “Nature abhors a vacuum”.
Deadline 28 June 2016
Claire Enders was quoted in an article on ITV, that could be subject of a takeover attempt for U.S. buyers after Friday’s share price fall. However, Claire suggested that an ITV takeover by anyone in the short-term is “Not at all likely.” Adding that “we are in a political crisis on the edge of a possible recession.”
The Hollywood Reporter 28 June 2016
Claire Enders was quoted in an article on the Brexit effect for Entertainment Industry M&A. Claire focused on the risks saying that acquisitions of U.K. creative companies could be "negatively affected by the years of uncertainty ahead." She explains: "We have benefited very disproportionately from USA investment for 15 years due to [the] European market in particular."
The Hollywood Reporter 28 June 2016
Toby Syfret was quoted in an article on the Brexit effect for Entertainment Industry, with UK media and entertainment stocks down sharply Friday. Toby said "in the case of ITV, whose share price fell by almost 20 percent after the Brexit news, it does reflect an instant response to the market news. We need to see at what level it settles down to first, and then there is the question of the impact of Brexit on TV advertising revenues" and consequently ITV's financial outlook.
The Financial Times 22 June 2016
Douglas McCabe was quoted in an article on the fall in newspaper display advertising and the discussions that are under way between media companies to explore ways they can set aside differences and work together to address the alarming drop in advertising revenue. Douglas Said "The implications are clear: while print advertising has been in a state of secular decline for over a decade the structural forces underpinning this decline have moved up several gears."
CNBC 21 June 2016
Joseph Evans was quoted in an article on the study from the Oxford University and Budapest’s Corvinus University which have found that ‘bots’ – automated programs that post from social media accounts of their own accord – are playing a “small but strategic role” in the conversation around Britain’s referendum on EU membership. Joseph said that there is little appetite among regulators to place any form of electoral reporting restrictions on online and social media. While social content has played an increasingly prominent role in electoral campaigns in recent years, with Barack Obama credited with wielding the first effective social media campaign in the 2008 election, Evans played down the ultimate influence of social media like Twitter in votes like the upcoming referendum. "Of course social media discussion could swing undecideds, but I think the effect here is likely to be marginal, as the political speech on these platforms so often consists of trading slogans, self-congratulation and a near-total disregard for accuracy," he added, "I think the public tends to mistrust what they read on social media, although perhaps not as much as they should."
the Telegraph 21 June 2016
Alice Enders was quoted in an article on Spotify, which has confirmed that it has more than 100m monthly active user on its music streaming service today. Despite the rising revenues - 80 per cent last year- it faces competition from Apple’s Music service, which had passed 10m subscribers within six months at last count. Alice said “the economics of the freemium tier remain challenging and every single freemium user is lossmaking on a gross margin basis,” adding that “what’s heartening is it is paying off in terms of subscribers. We think it’s made very good progress this year.”
The Financial Times 20 June 2016
Douglas McCabe was quoted in an article on the creation of “24: The North’s National” newspaper. The family-owned publisher behind 24 said it would aim to take a northern slant on national news and would be available only in Cumbria, Northumberland and parts of southern Scotland and Lancashire, avoiding big cities where competition is fierce. Douglas said there was a market for northern news. But while CN Group had kept costs to a minimum, there was still a risk. Adding that “they are trying to recapture a market that has switched habits. People no longer go into a newsagent every morning and pick up a newspaper. You are asking people to switch back and that is very hard.”
The Financial Times 10 June 2016
Douglas McCabe was quoted in an article on Time Out, the magazine company founded in London in 1968, which has raised £90m ahead of a listing on London’s junior stock market. Time Out is also taking steps to boost its online advertising revenue - Liberum has forecast that Time Out’s digital revenues will increase from £11.7m in 2015 to £38.4m in 2018. Douglas warned that investors would need to take a “leap of faith” to bet that the company’s growth rate would increase so rapidly in the years ahead. He said Time Out’s editorial expertise could help it stand out from its many online rivals, but added that “the question is whether Time Out’s content is compelling enough to get to a big enough scale”.
The Sun 26 May 2016
Gill Hind was quoted in an article on the European Commission decision to allow broadcasters to air more ads during prime time TV shows. Gill said broadcasters would be unwise to “pump in 20 minutes of ads an hour” because it would annoy viewers and prove unattractive to advertisers whose slots would be diluted.
BBC 25 May 2016
Alice Enders was quoted in an article on the EU-made quota, which declares that on-demand video streaming service should call at least 20% of their catalogues to be made locally. Alice said "this is driven by the core problem that the EU identified 40 years ago, that the Hollywood studios and other US producers dominate global box office and broadcasting because they have scale that cannot be achieved in a fragmented EU” adding that “it does send out an important signal to Netflix and others. But let's face it, the online services could meet the 20% quota by loading up themselves with lots of rubbish French, Italian, Spanish and whatever content. Or they could simply remove some of their lesser-watched non-EU material."
The Telegraph 24 May 2016
Alice Enders was quoted in an article on Spotify subscription model, which despite growing revenues, the company is making a bigger loss than ever. Alice said “the economics of the freemium tier remain challenging and every single freemium user is lossmaking on a gross margin basis, what’s heartening is it is paying off in terms of subscribers. We think it’s made very good progress this year.” She added that Spotify still had to significantly grow its base of paying users to be near to profitability, and that it could adjust its model, for example by raising prices for customers.
Digiday 23 May 2016
Joseph Evans was quoted in an article on the BBC plan to drop a bunch of online products, including its highly popular recipes site, as part of wider £15 million ($22 million) cuts it has to make. Joseph said that he doesn’t believe anyone, including commercial publishers, will actually benefit from the cuts. “Commercial recipe providers might hope that people will buy their stuff if they know the BBC isn’t there, but in reality the use case for online recipes is: Someone Googles something they want to make and clicks on the first reasonably trustworthy free link. Currently that’s the BBC, so if that goes away you’ll just see a few ad pennies going onto various free providers.”
The Guardian 23 May 2016
Matti Littunen was quoted in an article on the shift towards live video content in the media. Matti said “mobile video is the format that works best [for social media], it is engaging, immersive and gets shared a lot. By extension that makes it valuable.” He added that now this video gold rush is starting to move the media world, which has scented an opportunity to make money and engage their audiences in new ways.
the Economist 19 May 2016
James Barford was quoted in an article on the block of in-country mergers in the mobile-phone market in Europe. James said that yet fixed-mobile mergers are no cure-all. Whereas in-country mergers of mobile companies offer lots of efficiencies, combining fixed and mobile delivers more modest benefits. Worse, these tend to accrue to more dominant firms, notably old fixed-line incumbents. He added that what really counts, is how firms are placed to transmit huge quantities of data to customers, mostly for watching video clips and TV. He estimates that telecoms firms already make about half of their revenues from data, and mobile-data volumes are rising by 60% to 70% a year.
Politico 16 May 2016
Douglas McCabe was quoted in an article on the ambitious plans of the New York Times to expand its digital subscriptions in Europe and other markets. Douglas said “audiences in all countries are moving away from home news brands…to free online services,” which will make it “extremely challenging” for the New York Times to build up its pool of global digital subscribers. He added that, another consideration is the growing distribution power of social media platforms like Facebook “consumption is moving further and further away from content origination”.
Financial Times 13 May 2016
Claire Enders was quoted in an article on the BBC White Paper, where the government proposed that six members of the new BBC board, should be public appointees. The BBC’s director-general has opposed a plan for the government to appoint almost half its board, arguing that it would undermine the broadcaster’s independence. Claire said “the government no longer believes that [online streaming] is going to replace public service broadcasting. It does not subscribe to Thatcherite ideas about the absence of the need for a public intervention.”
City A.M. 13 May 2016
Alice Enders was quoted in an article on the DCMS White Paper on the future of the BBC. Alice said that included in the white paper was the assertion that the BBC should be a "broadcaster of distinction", which can be seen as a positive for rivals such as ITV. She added "that's clearly a signal to the BBC that it has to work harder than it has perhaps in the past to really provide programming that meets some notion of public service; I think it can be seen as positive for ITV."
Politico 13 May 2016
Claire Enders was quoted in an article on the BBC White Paper, which was unveiled by the Conservative government yesterday. Claire said “things are much better than they could’ve been. There are people at the BBC who are pinching themselves.”