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Enders Analysis provides a subscription research service covering the media, entertainment, mobile and fixed telecommunications industries in Europe, with a special focus on new technologies and media.

Our research is independent and evidence-based, covering all sides of the market: consumers, leading companies, industry trends, forecasts and public policy & regulation. A complete list of our research can be found here

 

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The pursuit of AI-native advertising formats has landed on chat as the most feasible route to add value, although the effect is to amplify existing strengths and weaknesses.

Practical constraints are slowing the agentic transformation beyond automation. Efficiencies are still the primary value-add, with agencies and adtechs looking to offset a greater infrastructure cost burden.

The end-to-end platform model continues to win: the arena for competition is now shifting towards commerce and control of user access points as scale and data advantages persist.

Despite strong revenue growth in Q3 (+12% YoY to $12.9 billion) and operating income that also beat guidance (+37% to $4.5 billion) more attention will be paid to Netflix's ruthless attempt via layoffs to reset a corporate narrative that has drifted towards a perception that the company has plateaued.

Four years along, Netflix's advertising business has yet to prove truly incremental, now contributing to overall price sensitivity, ARPU drag and net engagement loss. These consequences will only be intensified by the necessity to increase prices to continue revenue growth.

Despite denials, management is clearly floating the idea of the introduction of a free tier. With the aforementioned internal forces already in motion, this would be a difficult product to design.

Recent deals for Ligue 1, the FIFA Club World Cup and Foxtel signal DAZN is focused on global expansion, but this has postponed group breakeven.

Rights have been renewed at lower costs due to tepid competition and wider uncertainty in the broadcasting landscape, which support its improving margins.

Global scale may be a competitive advantage, but DAZN must still prove that global synergies improve local economics and generate a positive margin.

The cost of building out networks has left the lossmaking “altnets” saddled with over £9bn in net debt, according to calculations by Enders Analysis. Some providers, such as London’s G.Network, have fallen into administration, while lenders to others have been forced to write down the value of their debts.

“The crucial difference between these deals is that TalkTalk is a proven failed-firm situation, with it having been publicly for sale for at least the past four years but with no credible buyer,” said Karen Egan, head of telecoms at Enders Analysis.