Vertical marketplaces overview and property classified outlook

The UK consumer’s loss of confidence since the June 2016 referendum vote in favour of Brexit has reduced the revenues of both estate agents and auto dealers, with knock-on effects on their media spend, entrenching further the leadership positions of Rightmove and Auto Trader respectively. Only the UK’s recruitment marketplace is buoyant with a record level of vacancies, benefiting general recruitment aggregator Indeed, although deepening Brexit gloom among businesses will rapidly melt away vacancies

Iliad running out of luck

Once on the winning side of strategic French telecoms price wars thanks to a struggling SFR, Iliad now looks wounded, and a possible prey, suffering from declining fixed and mobile KPIs – we expect cash flow losses of €617 million this year

Broadband, in a capex-heavy migration to higher margin fibre, may stabilise revenue with (somewhat) differentiating new ‘Freeboxes’ bundled with Netflix. Mobile (€2.3 billion burned since launch) hopes rest on on-net transition fostering profitability, but the 5G capex race looms

UK mobile market Q3 2018: Record growth yet disappointing

UK mobile market service revenue grew by 2.4% in Q3, a level not seen since early 2011. However, this 0.6ppt improvement on the growth rate in Q2 was very disappointing in the context of an expected 2-3ppt revenue growth bolster from the annualisation of roaming tariff cuts 

EE and O2 shared the top spot for growth, more than double the growth rate of H3G and far ahead of Vodafone which remains in negative territory and had only the slightest uptick this quarter

Hulu casts a spell

When its acquisition of 21st Century Fox closes, Disney will own 60% of Hulu. If it bought Comcast’s 30% stake (and WarnerMedia’s 10%), it could fully leverage the platform for its US direct-to-consumer strategy

Comcast’s Hulu stake has little strategic value to it. We argue it should sell to Disney in exchange for long-term supply deals for ESPN, as well as for the upcoming Disney+ and Hulu, similar to its recent pacts with Amazon Prime and Netflix

Financial Times

3 December 2018 - 10:27am -- Claire O'Brien
Douglas McCabe was quoted in the FT on the appointment of Jonathan Newhouse as Chairman of Condé Nast International. While Mr Newhouse’s announcement this week raised questions about the future of his family’s magazines, analysts are confident that its most vaunted titles will endure. “You can’t replicate a luxury environment online,” says Douglas McCabe of Enders, a media consultancy. “Vogue is not . . . going to disappear anytime soon.”

The Times

3 December 2018 - 9:52am -- Claire O'Brien
Alice was quoted in The Times on the BBC's free TV licences for the over-75s. Enders Analysis, the media research company, said that means-testing would be the “least-worst” financial outcome for the BBC, but should still be avoided because it would be expensive to administer. Also, it could open a Pandora’s box on the question of whether low-income households of all generations should be offered free licences — not an option the BBC could afford, of course. Alice Enders, director of research at the firm, described it as a “terrible situation for the BBC and a terrible situation for the over-75s that are much more reliant on the BBC”.

SVOD in the US and UK: a tale of a three-player market

There is a belief in some quarters that there is space for a myriad of large SVOD services in the UK. We question whether there is room for more than the current three pacesetters; Netflix, Amazon and NOW TV

Like the UK, the US market is dominated by three services, and there is evidence of an appetite for further offerings. But the US market is conspicuously different to the UK's, with the forces behind cord-cutting in the States less apparent this side of the Atlantic


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