UK broadband, telephony and pay TV trends Q3 2017: The ARPU challenge

UK residential communications market revenue growth dipped to 2.1% in Q3. While volume growth continued to decline, the main driver was weakening ARPU growth, which was partly caused by price rise timing effects but there was also an underlying contribution

Longer term, slowing market volume growth has contributed to the market revenue growth drop over the last year, but slowing ARPU growth is also playing its part, and maintaining ARPU growth is becoming a major challenge for the operators given the discounting required to win and retain customers


11 December 2017 - 11:31am -- Olga De Giovanni

Gill Hind was quoted in an article on how the premium video marketplace will evolve over the next few years. Gill highlighted what she believes is a dramatic decline in under-24s watching TV, said online SVOD giants like Netflix and Amazon are creating audiences for global content, and that they will dominate commissioning for super-premium content with international appeal. To complete the list of bad news, only 60% of all video viewing by under-24s will be captured by existing broadcasters by 2026, she said. The good news is that 80% of all video viewing in 2026, across the population as a whole, will be with today’s broadcasters. Most people will continue to get their localised content – which accounts for the vast majority of viewing – from these broadcasters. Hind concluded that the online giants are not going to compete with public service broadcasters in the UK, at least, and that their content will prove to be complementary and not substitutional. “The death of TV is clearly exaggerated,” she told the London audience.

Children's changing video habits and implications for the content market

Children’s media use and attitudes have dramatically changed over the last few years, stemming from the rapid take-up of smartphones and tablets

Traditional TV continues to decline at the expense of newer video services such as YouTube, Netflix and Amazon, with 43% of children aged 8-15 preferring YouTube videos over TV programmes

These online services offer content producers wider opportunities, but questions remain around the lack of regulation online, and the recent scandal around children’s safety on YouTube has heightened these concerns

UK mobile market Q3 2017: Returns to scale

Mobile service revenue growth dipped this quarter but this was likely entirely due to the predictable (and predicted) impact of the abolition of EU roaming surcharges.  On an underlying basis, growth improved

BT/EE extended its lead in both service revenue and contract subscriber growth terms. EE’s substantial investments in network quality and customer service have driven returns to scale, and its multi-brand approach is working well


7 December 2017 - 10:45am -- Olga De Giovanni

Claire Enders was quoted in an article on the Fox-Disney deal. Disney, the world’s largest entertainment company, is in talks to buy Fox assets in a deal that could approach $50 billion or more. Besides, James Murdoch, Fox’s chief executive officer, could move to Disney if offered a senior role there after a deal. That possibility evokes strong responses from admirers and detractors of the Murdochs and their reign over the Fox media empire. Claire said “there is no doubt Bob Iger admires James, and Disney’s single biggest international relationship is with Sky”.

The Drum

7 December 2017 - 10:40am -- Olga De Giovanni

Matti Littunen was quoted in an article on YouTube’s ongoing brand safety issues, which have thrust the media industry into crisis. In response to growing concerns around damaging ad placements, brands have been taking greater control over the way their inventory and demanding greater transparency from their partners, calling the role of the media agency into question. In fact, it seems that agencies have been bearing the brunt of the issues versus Google itself, which has seen little effect on its bottom line this year despite a number of high profile brands claiming to pull spend. Matti believes there's a shortage of brands "voting with their wallets", backed up by Google's claim that the scale of the issue it has had on YouTube was "relatively contained" throughout the year. He added that this race to the bottom is "begging for trouble", as it essentially opens brands up to fraud and bad ad placement.

Vodafone Q2 2017/18 results: Revenue flat-ish, profits surge

Vodafone Europe’s revenue growth was very similar to the previous quarter at just under 1%, but this was impressive given the considerable drag of roaming cuts, with ‘more-for-more’ tariffs coupled with data volume growth driving underlying improvement

Flat-ish revenue was enough to send EBITDA surging 13%, or around 9% excluding some one-off distortions, driven by good cost control and falling handset costs, with this trend previously disguised by profitability issues in the UK


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