Consumer magazine publishing: Quality, not quantity

The decline in demand in print presents trading challenges, but the more immediate pressures are on the supply side, with a 15% rise in paper prices accentuating the burden of production and distribution costs

With digital advertising growing at stubbornly low rates, UK publishers need to return to their fundamental consumer-centred strengths by switching their strategic attention towards strong brands, curation, and community

The Guardian

13 August 2018 - 8:58am -- Claire O'Brien

Douglas McCabe was quoted in The Guardian on the relaunch of Interview magazine. Douglas said “In the magazine sector as a whole there has been enormous over-supply problem, and why we’ve seen such a car crash in the middle market where advertising has practically collapsed...But high-end magazines with a commitment to high-end editorial values, well-heeled demographics and a high-end supply of advertising have been living in a much less volatile market.” 

Bloomberg News

9 August 2018 - 12:14pm -- Claire O'Brien

Alice Enders appeared on Bloomberg News to discuss Fox results and the battle for Sky. Alice said “The stand out is how well the cable programming network did with 60% of Fox revenues and the centre of profitability. These “New Fox assets” won’t transfer to Disney, but Fox brings filmed entertainment as well as 39.1% of Sky, the number one Pay-TV business in Europe to Disney, 2019 is about a direct to home offer”

MailOnline

8 August 2018 - 10:31am -- Claire O'Brien

James Barford was quoted in the MailOnline on the fact one in ten homes in the UK are still not connected to the internet, with less than two thirds of over 65s online. James said "It's very much an age thing,' he added. 'As with most new technologies, older people have been slower to adopt. It is a question of choice – some people aren't yet interested."

BBC World Service

7 August 2018 - 6:03pm -- Claire O'Brien

Tom Harrington appeared on BBC World Service to discuss Disney's new streaming service. Tom said when the Disney Fox deal goes through it will change the landscape for film and TV. "This is an amalgamation of great proportions. These two power houses coming together, that's 50% of the US Box Office, it's a massive share of TV viewing especially amongst the youth in the US. Disney's first stand aloneservice will be targeting families so they can feasibly sit side by side with Netflix. With other services creating an ecosystem such as sports packages, they can create a bundle which can get into every home including those who may not have considered streaming videos before"

BBC News

7 August 2018 - 1:05pm -- Claire O'Brien

Tom Harrington was quoted by BBC News on how the use of commercial video streaming services has surged ahead in Great Britain, according to official figures.Tom said "If you look at the breakdown of who is using these services, it's starting to bleed outside the younger tech-savvy audiences and getting traction among older groups as well."You can see that reflected in the types of programming being made available, with Netflix and others commissioning original shows pitched at more mature audiences."

Campaign

6 August 2018 - 2:53pm -- Olga De Giovanni

Matti Littunen was quoted in Campaign on the sudden flurry of ad agency reshuffles and departures. He said that “Some restructuring at WPP agencies, including changing of the guard, was inevitable after Martin Sorrell's departure. Indeed, some of it would have likely happened even had he stayed on, such is the pressure on the holding group model." He believes that creative agencies, such as Ogilvy, have taken a back seat in the holding group model as media agencies took over much of the strategic planning for client accounts. Matti also told Campaign that consulting is going to be the way forward for the industry. “Professional services firms have gradually expanded their offering to advertising services, increasingly taking away agency business," he said. "Leo Rayman's move is yet another indication that WPP intends to meet this challenge by going in the opposite direction, by expanding further into professional services, but also that they see creative as a key differentiator in doing so."

Variety

3 August 2018 - 12:58pm -- Olga De Giovanni

Francois Godard was quoted in Variety on Vivendi’s plan to sell half of Universal Music Group. In the first half of 2018 UMG accounted for nearly 70% of Vivendi’s income. However, as Francois explains, Vivendi have struggled to form synergies between UMG and its other companies, Canal Plus Group and Daily motion. He said that “Vivendi has been looking for ways to make some profit off of UMG for some time – it previously considered an IPO,” Godard said. “I see this sale of 50% as the first step. The second will probably be the sale of the other half UMG.”

BT Q1 2018/19 results: On target in the short term, making progress for the long term

BT’s Q1 results were fairly robust given a number of one-offs hitting in the quarter, with revenue growth of -2% in line with full year guidance, EBITDA growth of 1% ahead of plan, and a number of metrics looking promising

Openreach’s newly announced volume discount plans offer advantages in growing high and higher speed volumes, infrastructure competitiveness and regulatory pricing pressure, while giving up little in external revenue, a win-win-win for BT at least

The Independent

3 August 2018 - 10:17am -- Olga De Giovanni

Alice Enders was quoted in The Independent on the Today programme’s loss of 800,000 listeners since 2017. Alice advised caution comparing today’s figures with last year’s, as the General Election and Grenfell fire increased public news interest. However, she suggested “The Today programme may have been particularly vulnerable to some of the fall-out from the BBC presenters’ gender disparity controversy. The audience may have been affected by some of the BBC presenter issues – the issue of the conversation [between Humphrys and Sopel]. I can’t tell you why there has been that level of defection, except to say it is an eye-popping number, but it’s possible that people all of a sudden may associate someone like John Humphrys with being not exactly in the right mindset. He made some ill-advised comments about the gender pay gap, which in my case would have been sufficient for me to turn off the programme forever.” The drop in listeners coincides with the appointment of Sarah Sands as editor, and critics have argued that the popular culture and fashion features she has integrated into the program are to blame. Alice said that “I can well imagine that the knives will be out, but the BBC cannot be preserved in aspic for crying out loud.  It needs to be refreshed. It’s really important for the BBC to experiment in topics that are known to interest a wide variety of audiences. I consider that experimentation to be overdue.”

Pages

Subscribe to Enders Analysis RSS