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Watch the fireside chat with Andrew Griffith MP, Net Zero Champion, UK Government and Claire Enders discussing the Channel 4 privatisation and the aim to mobilise UK businesses to get behind Net Zero in 2050.
The government is intent on privatising Channel 4, largely as is, with some potential shifts to the remit and a re-evaluation of the Terms of Trade and the publisher/broadcaster model
We note a valuation range of between £600m and £1.5bn, depending on the scenario and the buyer’s ability to create cost-savings. The counterfactual—a competitor buying Channel 4—could be motivating, while many broadcasters could benefit from the sale given that the government will have to provide the buyer with surety around uncertainties like prominence, licences and gambling/HFSS advertising
Given the potential and incentive for a profit-oriented owner to game Channel 4’s current woolly remit, if the government wants to guarantee a continuation of the benefits C4 presents onscreen and to the economy, much consideration need be placed on making the obligations more quantifiable and trackable
The bounceback from COVID is yet to be evidenced in UK mobile as there was no improvement in service revenue trends this quarter beyond the simple annualisation of the pandemic hit.
More mobility and international travel will be crucial tailwinds. Q3 travel rates are only slightly higher than a year ago, limiting the near-term upside. Some pandemic boosts such as lower churn and higher B2B demand will also unwind somewhat.
Spring 2022 looks set to be a turning point for the sector with price increases of 6-7% in the offing on the basis of recent inflation rates, and the potential for renewed roaming revenues, even from Europe.
Francois said “Springer is as much in search of growing its individual business as it is in search of business models and understanding of the digital economy. They must hope they can draw knowledge from [Politico] that they can draw to other parts of their business group.”
Soccer fans will be converted into online shopping enthusiasts, as is the case with all things Amazon. Amazon demonstrated savvy in getting the rights on the cheap, according to Francois Godard, an analyst at Enders Analysis, but it still needs to show it can exploit them to considerably expand its e-commerce business footprint.
Alice said “There is a lesson to be learned by Future’s success: there is still significant revenue to be driven by publishers."
“It is the death of the print magazine in that structurally there has been a consumption shift, but it is not the death of what a magazine is at its core, that’s content. The future is a diversified model and revenue mix, that is what Future has done strongly.”
Francois said “Amazon proved agile in buying the rights on the cheap, but it still has to demonstrate it can leverage them to significantly increase its e-commerce business footprint.”
Julian said it also showed how Sky, which has traditionally focused on sport, was pivoting its strategy to becoming an “aggregator”, offering viewers content from a range of sources.
Alice said “The group has a systemic and intense business approach set to music by Zillah Byng-Thorne, a woman with a strong personality. All avenues are explored, from e-commerce to advertising, including events, content syndication and the traditional activity of selling magazines."
Claire said Crozier would bring a great deal of experience to the BT boardroom. “He is an excellent strategist through challenges and change and a deft hand with regulators, government stakeholders and pension fund trustees."
