UK recorded music: Transition to access
After a relatively benign year in 2013 for UK recorded music thanks to a small pickup in trade revenues, we project a 5% decline in 2014, with digital music purchasing now falling as consumers shift to ad-supported and subscription access services, while CD sales continue to drop at a double-digit pace each year.
The UK reached a new milestone at the end of 2013 surpassing 1.3 million paying subscribers, a large number of non-paying 'hard bundled' subscribers on Orange/Deezer and Vodafone/Spotify 4G plans, plus several million Spotify freemium and Spotify Free 'smart radio' users.
We project steady expenditure on recorded music as a whole in the period to 2017 from consumers and advertisers at £1.1 billion annually, but anticipate the loss of £90 million in trade revenues in the shift to access due to the labels' lower revenue-share.
|Music and Radio, Media||4 September 2014|
UK recorded music still in decline
UK recorded music retail sales fell 8% in 2012 to £1 billion, as CD sales fell 21% to £540 million whilst digital formats rose 15% to £484 million on a huge 70% climb in subscriptions.
HMV store closures in 2013 will further dent CD sales, but accelerate the point of inflection (at least 50% digital sales) of the UK’s retail market.
The UK remains a robust source of royalties from performance of sound recordings, with PPL reporting revenues in 2011 of £153.5 million, up 7%.
|Music and Radio, Internet, Media||26 March 2013|
UK quarterly internet trends Q4 2014
During 2014, the PC finally lost its crown as the main device for accessing the internet: for the first time, aggregate usage on mobile devices accounted for more than half of all time spent online.
Two thirds of people now have a smartphone, which is becoming the main method for getting online, while tablet penetration appears to be flattening out and the PC internet audience is in decline.
Mobile monetisation still lags that of the PC but the gap is shrinking: smartphones and tablets generated 40% of e-retail sales in Q4 and across the year ads on mobile devices represented a quarter of internet search and display advertising with further strong growth ahead.
|Telecoms, Technology, Internet, Media||24 March 2015|
UK quarterly internet trends Q2 Q3 2014
The shift to mobile continues, with the smartphone replacing the laptop as the device with the most users, although the rate of tablet adoption has slowed somewhat.
This shift will change the online revenue mix, with mobile being better suited to content, native and video advertising than traditional display and search. Mobile devices also now account for the majority of visits to retail sites, and more than a third of spend online.
We see large age-based differences across all internet activities, but the split is particularly significant for smartphone adoption and usage, with only a quarter of over-55s using smartphones, and only a third of those reporting downloading apps.
|Mobile, Telecoms, Technology, Internet, Media||1 December 2014|
UK quarterly internet trends Q2 2015
The UK’s love affair with the smartphone continued in Q2: 85% of adults under 55 and a third of over-55s now have smartphones, which are becoming the primary method of accessing the internet, accounting for over 40% of time online
Among teens and younger adults internet usage is now higher than TV viewing, though this is still offset overall by the massed ranks of older viewers who remain glued to their TV sets
Commercial revenues derived from mobile devices still trail their share of internet usage but the gap is closing fast: in Q2, smartphones and tablets generated nearly half of consumer e-commerce transactions, while mobile ads represented 34% of internet search and display advertising
|Internet, Media, Mobile, Technology, Telecoms||3 September 2015|
UK quarterly internet trends Q1 2015
The latest numbers for Q1 2015 show strong device and internet user growth, with more of the population online than ever before, including more than 90% of under-55s. Growth amongst older groups, however, has slowed to a crawl
Participation in online activities is up across the board, but digital media data shows spend on ebooks and digital music struggling, with the latter being heavily impacted by the rise of unlimited streaming models such as Spotify
The story of mobile's surge continues, with almost a half of e-commerce transactions and a third of search and display ad spend now going to mobile. Most of these mobile devices are Android, but iPhone seems to have gained long term share with its larger phones. Google services, however, have cross-platform reach
|Internet, Media, Mobile, Music and Radio, Technology, Telecoms, UK Media||5 June 2015|
UK quarterly internet trends Q1 2014
The UK’s love affair with mobile devices continued in Q1 2014, with four times as many smartphones and tablets as PCs shipped during the quarter. Smartphones now account for three quarters of mobile phone sales, and shipments of tablets exceed sales of PCs, though the latter improved during the quarter
The device mix for internet access is changing rapidly: more people now have a smartphone than have a laptop in the home, though the overall PC audience (including desktop) is still larger. For many people, smartphones are becoming the core device to get online, and almost half of all households have a tablet
Commercial revenues derived from mobile devices still trail their share of internet usage but the gap is closing: in Q1, smartphones and tablets generated a third of e-retail sales, while mobile ads represented a fifth of internet search and display advertising
|Mobile, Telecoms, Technology, Internet, Media||13 July 2014|
UK quarterly internet trends
The internet continues to gain share of media consumption and advertising at the expense of traditional media in the UK. This report highlights key online trends in the UK and our current forecasts for internet advertising in 2010 (we will address mobile advertising separately)
|Media, Internet||5 March 2010|
UK press and News International: what next?
Trinity Mirror, Northern & Shell and DMGT helped the market more or less offset the absence of the News of the World, though impressive volumes have come at a price
More generally, newspaper circulations have a temporary reprieve, as strong newsflow but also discounts and marketing techniques have been deployed to attract readers
What happens next at News International, and also competitor responses, could soon change market dynamics again
|Media||21 July 2011|
UK PC Video-on-Demand
This companion report to UK TV VOD [2005-24] concludes that the number of PC-based video-on-demand (VOD) services in the UK is set to explode in the near future. Rising broadband penetration, to 35% of UK homes at the end of 2005, is leading every major content owner, aggregator, broadcaster, service provider, and network operator to develop a PC VOD service. Will this response to the interest in personalised media consumption enable the PC to take over from the TV as the main source of video entertainment? The short answer is no, although we expect the market for PC-delivered VOD to grow dramatically in the next 2-3 years.
Sky Italia subscriptions, now totalling 3.71 million, have increased by almost 0.5 million subscribers in the last year. Low SACs, low churn, and yet high ARPU, show that Sky continues to benefit from strong natural growth in a pay-TV market that is experiencing a new lease of life thanks to the eradication of piracy post merger of Telepiu with Stream
|Media||17 March 2006|
UK pay-TV in 2009: recession and competition concerns
Leading pay-TV operators Sky and Virgin Media (VMed) have shown little sign of recessionary damage in 2008 and the outlook for Q1 2009 remains positive. Difficulties are apparent at complementary pay-TV service provider Setanta
Ofcom’s pay-TV investigation enters its final stages in 2009. Ofcom faces a formidable challenge to devise a workable wholesale must-offer solution for premium film and sports content that fosters competition across all platforms
With prospects fading fast of a VMed sale of its UKTV and possibly VMTV assets to a BBCW/Channel 4 joint venture, Discovery looks an increasingly suitable candidate, as competition concerns could arise if Sky was the chosen partner
|Media, TV||7 April 2009|
UK Online Handset Sales Monitor
In the attached report, we present an analysis of UK handset sales over the online channel, using data sourced from Mobileshop.com, an online comparison handset sales site. Mobileshop.com presents offers from all major online mobile shops, including those from the operators and the major independent retailers, covering handsets, datacards and SIM-only offerings, across prepay and contract connections. In this, our first report, we have focused on issues relating to the market structure and broad market share figures, and our future quarterly updates will focus more on emerging trends
|Mobile, Telecoms||19 December 2008|
UK Online Console Gaming
This report updates our readers on the disappointing advance of online console gaming in the UK. Although the UK is the third largest video games market in the world, and was the first country in Europe to offer online gaming for Xbox and PS2, we estimate only 90,000 UK online console gamers at the end of Q1 2004 (just over 1% of 128-bit consoles sold to date).
|Media||29 April 2004|
UK online ad forecast 2017-2019: A grey digital market
We estimate that UK online ad spend grew by 12.3% this year, with growth concentrated almost exclusively in mobile search and social in-feed advertising (particularly video), and mostly incremental to overall ad spend
Even after payments to publishers and distributors, Google and Facebook captured 80% of all net new spend in the market, and 96% of it flowed through their platforms
Despite improving standardisation and disclosure, the outstanding issues around measurement, the ad-tech supply chain, and particularly the obscure and growing Google/Facebook/Amazon segment, lead us to identify a large portion of digital advertising as a “grey market”: difficult to get a handle on, with uncertain beneficiaries and slippery definitions
|Internet, Media, Mobile, Technology, UK Media||13 December 2017|
UK Next Generation Access and the Conservative policy for ‘nationwide superfast broadband’
The Conservative policy for broadband involves replacing
The policy sounds negative for BT, equivocal for VMed and
We view as more significant the likely indirect impact on
|Fixed Line, Telecoms||10 February 2010|
UK news media: less advertising, new models
The decline in print display advertising in national newspapers accelerated to -16% in 2015, while growth in digital advertising is slowing, and will be unable to offset revenue decline for the foreseeable future.
We believe this decline is structural and irreversible, continuing at a sharper pace than before despite the recovery in the UK economy in 2013-2015, and very different from the cyclical decline of 2009.
Publishers must convince brands and agencies that in the mobile era their superior content environments have added value. If scale newsrooms are to survive, costs must be reduced through collaboration and outsourcing.
|Media||8 June 2016|
UK National Newspapers
UK national newspapers are in poor shape. The inherent problem of the industry – too many papers chasing too few readers – has been exacerbated by a sharp decline in advertising revenue since September. As a result of these challenges coupled with the implications of forthcoming media legislation, we expect to see significant changes in newspaper ownership over the next two years.
The likely development of overall advertising in Europe in 2002 and 2003;
The development of overall online advertising in the same period;
|Media||22 March 2002|
UK mobile user survey: High on networks, low on convergence
Customer movement between operators shows susceptibility to dynamism in branding; O2 are picking up the majority of EE churners as customers move to the new “cool brand” while EE pull in Vodafone churners tempted by the new “best network”. O2 have the lowest churn though the lion’s share move to Vodafone and H3G churners are more evenly picked up by the other three
Customer perceptions of own operator network quality are high among the big 3 with no less than 75% of customers reporting theirs is the best network. O2 is the best regarded while H3G is the least best regarded highlighting a stark contrast between the (prospective) merging parties
Consumers report little interest in quad play and indeed operators in the both fixed and mobile markets have publicly confirmed the same from other market research. However the arrival of converged players in the form of a merged BT/EE or Vodafone re-entering the fixed space will see operators seeking to change this
|Fixed Line, Mobile, Telecoms||28 January 2015|
UK mobile user survey 2015: Ambition versus perception
Our survey results highlighted disconnects between operator ambition and consumer perceptions across customer loyalty, network performance and quad play, with noteworthy implications for future competitive performance. O2 in particular benefited from strong branding which yielded network confidence and loyalty above that of top network investors, EE and Vodafone
Convergence prospects continue to look supplier driven with consumers reporting little interest in quad play packages even when offered with significant bundle discounts. Recent advertising campaigns have sought to change consumer perceptions of a dichotomy in mobile and fixed broadband provisioning which, if successful, will be to the benefit of all quad play hopefuls
The mobile usage disparities between 16-24 year olds and 55+ users are stark, for instance near 100% of mobile users aged 16-24 own a smartphone while for those 55+, this falls to just over half. The implications are strong for service providers in all manner of industries who are seeing new (younger) users come to market that bear little resemblance to the traditional users around whom much of the operational model is typically built
|Mobile, Telecoms||23 June 2016|
UK mobile user survey 2012: networks over handsets (apart from the iPhone)
In this report we show the findings of our 2012 UK mobile user survey. The report is a wide ranging analysis of the mobile market based on our consumer research, focusing on the competitive landscape among the mobile operators and smartphone manufacturers, and the changing consumer behaviour that has and will continue to impact the market
|Mobile, Telecoms||26 June 2012|