Enders Analysis today published a major report on the digital music sector, as part of its long term commitment to independent music industry analysis and research.

The music industry’s extraordinary recovery and digital transformation over the past 15 years has resulted in the establishment of a dynamic and competitive sector that provides a broad range of services to labels and artists in distributing recorded music.

This report explains that digital technologies have profoundly changed the music industry, and that the emergence of a large number of digital-first service providers (ALSPs) in a crowded and dynamic marketplace provides artists and labels with a myriad of choices. Those choices exist through a wide spectrum of offerings from many suppliers to meet the diverse needs of artists, labels and end-consumers. From “pipes only” products that provide an easy and direct path to access the large network of digital service providers (DSPs), through to broader service offerings, with matching breadth of service fees. Our analysis of the market shows high levels of competition, as well as innovation, making it easy and routine for artists and labels to switch providers to meet their needs.

Netflix revenue grew 17% YoY in Q3, although operating income was well below expectations (-10%), hit by a $619 million tax expense in Brazil. Once again improvement in advertising revenues was noted but without any substantial detail.

UK advertising tier growth is primarily being driven by movement from more expensive ad-free tiers. This has challenged ARPU: advertising revenue does not appear to be balancing the loss from subscriptions.

With ownership of Warner Bros. Discovery likely to change, management did not specifically rule out M&A. However, it is not clear whether Netflix would be best served by the IP such a purchase would provide.

BT’s recent protests against the very high “government-inflicted” costs in the UK versus other countries likely relate to business rates, which are already sky-high by European standards and set to rise further.

The business rates reform has some worthy aims in providing some permanent relief for shops and pubs, but at the expense of discouraging much-needed investment in utilities and telecoms by dramatically inflating the cost.

Telecoms business rates also discourage investment by being hard-to-predict, and are distortive between competitors with dramatic differences in unit costs, with these issues partially addressable through valuation reform.

Disney+’s content deals with FTA operators in the UK, Germany and Spain have been characterised by the company as a lever to boost engagement from its older audiences but also younger viewers increasingly disconnected from broadcasters

Greater volumes of proven local programming on Disney+ can only be helpful—the divergent viewing tastes of Germany and Spain are case studies in the regional specificities of content demand

Further, a greater variety of content and release patterns will challenge current Disney+ viewing behaviours and could create greater urgency around usage

At the International Broadcasting Convention (IBC) 2025, vendors and broadcasters showcased plenty of incremental improvements to production using AI—but the show also previewed significant future disruption to traditional production methods.

Distribution is a focus for innovation: Formula 1 demonstrates a compelling personalised product and delivery that takes superfans beyond what can be offered in a single broadcast.

Broadcasters are adapting to a rapidly changing technical landscape at a time of increased pressure on audience trust and the geopolitical climate.

Europe experienced flat service revenue growth in Q2, with French trends worsening as SFR’s woes intensified.

There are signs of better pricing momentum in several markets, particularly in Italy and in Germany where O2 has softened its aggressiveness.

This, together with expected improved momentum in the UK, and a likely resolution in France, paints a more positive outlook—and will be particularly helpful for Vodafone’s German turnaround ambitions.

The PSBs’ ability to fulfil their public service objectives is becoming compromised by declining TV audiences, mainly due to the rise of online platforms and the decline in funding levels.

Part of the solution lies in collaboration between the PSBs themselves, potentially through shared tech stacks across players.

Collaboration with third-party online platforms is also required. The Media Act is introducing prominence requirements for connected TVs, but extending this regulatory regime to video-sharing and AI platforms needs much more developed thought to clearly articulate its aims and begin to iron out its practical challenges.

Although original programming is now cutting through—a validation of expansion in output—licensed content remains the backbone of Prime Video’s offering, c.80% of all viewing since March 2024.

Viewership of UK originals fluctuates significantly with reliance on standout titles, whereas US content, including high-volume dramas, maintains a steady audience.

Football coverage has been a draw for viewers: the Premier League, now lost, brought in older, male audiences. After an underwhelming initial phase of the last Champions League, Prime Video’s top pick of fixtures proved beneficial in the knockout round.

Broadband market revenue dipped back into negative territory in Q2, due to pricing pressure on both existing and new customers.

CityFibre’s capital raise puts it in pole position for altnet consolidation, while TalkTalk’s will enable it to compete much more effectively in the retail space.

Fierce competition is likely to continue unless and until retail altnets do the rational thing and consolidate into a wholesale model.

Italy’s MediaForEurope (MFE) is set to become the majority shareholder of Germany’s ProSiebenSat.1 (P7S1) and the largest FTA broadcaster in Europe.

In a consolidating German market, P7S1 had no alternative credible option than to accept the (increased) MFE offer.

MFE believes that its new leadership position in European broadcasting will allow it to challenge platforms such as YouTube for regional advertising budgets.