Joseph Evans was quoted in Wired on Facebook’s poor financial results. “Facebook has always grown very fast, so it’s feasible they’re slowing to the level of growth you’d expect from a mature company,” says digital media analyst Joseph Evans. “The company’s problem is that Google – which is larger and more mature – posted strong growth. We’d need to see a couple more quarters to be sure.” However, “Facebook’s monetisation levels outside the US and Canada are very low,” he explains. “True, if they can reverse that, they can manage revenue growth. Perhaps a larger concern is that, having pushed a lot of ad inventory to video, the company is reliant on increasingly restive larger brands for revenue growth – and we’d expect forceful advertiser intervention into the online video market shortly as it tries to find a common metric across on and offline.”
Disney’s potential acquisition of certain 21st Century Fox assets is assuredly a play for further scale at a time when the company’s traditional domain, the family home, is increasingly welcoming services such as Netflix
The deal will consolidate Disney’s dominant film business. But also, the robustness of traditional television, especially 21CF’s cable interests, along with IP assets, will allow Disney to better control the inevitable viewer transition from linear to online and on-demand
Claire Enders was quoted in Campaign on the success of the NSPCC dinner which raised £12.5m for NSPCC and Childline. Claire Enders has described UK media industry leaders as "titans of TMT" for raising £12.5m for NSPCC and its helpline Childline over the last decade.
Douglas McCabe was quoted in Press Gazette on The Peckham Peculiar print launch. He said: “What you are finding, popping up all over the country are small businesses that are very, very focussed on the local community. They are drawing a certain amount of audience. But for publishers, commercial publishers trying to run a local service, in reality, it is a much harder challenge. They have to look at larger geographic spaces.”
The Telegraph, The Guardian and News UK (The Times and The Sun) will jointly invest in The Ozone Project to develop a state-of-the-art platform to sell their digital inventory
Ozone will add value to news digital inventory and seek to win back advertiser expenditure on Facebook and Google’s various properties, (indirectly) reigniting interest in placement next to quality news media content
Many European telecoms operators are pursuing a fixed/mobile convergence strategy on the pretext that the addition of mobile reduces churn. We see no evidence of churn reduction from this strategy
Discounts required to encourage take-up of fixed/mobile services are often value-destructive, even before competitor reaction: a 10% bundle discount necessitates a 2ppt improvement in churn to wash its face economically. M&A premia on the basis of convergence synergies raise the hurdle even higher
Rigour and consistency in AV ad metrics is proving elusive. A 10-second ad on YouTube, ITV1, All4, MailOnline, Sky AdSmart or Facebook is measured in as many different ways, often indifferently. It is tricky, costly or impossible for agencies/advertisers to comprehend the overall picture
By 2020 JIC-based BVOD ad impressions should be available from BARB all being well, giving BVOD a clear advantage over other premium online video measurement
Tom Harrington was quoted in Digiday UK on Netflix subscription targets. Netflix missed its global subscriber targets by over a million, spooking the market into thinking growth has plateaued and sending share prices falling. The streaming service still added a healthy 5.2 million, the same as it added during the second quarter last year, indicating it is nearing saturation point. To keep up growth, Netflix needs to focus on international markets.“Subscription additions internationally is where the focus is; it has to be,” said Tom Harrington, senior analyst at Enders Analysis. “But that’s expensive and a lot more work to continually expand, even though the potential size of other regions are astronomical. TV is such a local market, to continually get subscription growth and keep spending that amount on content will be hard.”
TalkTalk had another strong quarter for broadband net adds, adding 80k versus its full year target of 150k+. All of this was due to strong wholesale, with retail net adds slightly negative, although in the market and seasonal context even this retail performance is quite respectable
On-net revenue growth improved strongly to around 4%, with its ARPU decline moderating to 2%, and ARPU should be helped further by price increases for existing and new customers alike in July
François Godard was quoted in Variety on the enduring power of linear TV when it comes to broadcasting live events. “The takeaway from this World Cup is that the power of linear TV to reach millions of people with live events can’t be matched by Netflix and other streaming services,” said François Godard at Enders Analysis.