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.
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Michael Underhill was quoted in an article about premiership TV rights, with the next auction of live matches for the 2016-17 season expected to take place early next year. Sky, which has long dominated the sports rights market, is facing greater competition. Currently, Sky pays an annual £760m for five packages to broadcast 116 games a season, while BT pays £246m for 38 games. However BT is expected to pose a greater threat to Sky this time around.
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.
Investment in YouTube multi-channel networks (MCNs) has accelerated this year and now exceeds $1.65 billion, triple the aggregate value invested to 2013. This step-up is being driven primarily by traditional media companies
Due to the growth of the overall online video sector, we expect to see continued demand for MCNs, as further opportunities for vertical, geographical and functional consolidation exist
While acquisition prices of close to $1 billion (incl. earn-outs) are high, valuation comparables seem relatively consistent and modest in comparison to other media/tech deals. Further, we see MCN investments as part of a wider shift as media companies extend their core business to digital
James Barford was quoted in an article on Gavin Patterson; the chief executive of BT. James said "He has imposed his own direction after a very strong chief executive [Ian Livingston]. But the sport strategy was inherited and mobile could be his first big decision to make". The acquisition of a mobile business would fit the bill by launching BT's ambitions to re-enter the consumer mobile market.
Douglas McCabe was quoted in an article discussing the fact that The Sun newspaper has doubled its number of digital subscribers to 225,000, but has failed to offset a decline in its overall paid readership. In August 2013 it introduced a pay wall and 102,000 people started paying in the first four months, however the new figures show that the rate of sign-ups has slowed substantially since. Douglas said the figures were "reasonably positive", while cautiously adding that there was a lack of historical data to judge them on.
TalkTalk had a solid quarter for net adds, helped by churn being held well under control, with broadband perking up, TV dipping down as pre-warned, and fibre and mobile both significantly accelerating
Revenue and ARPU growth accelerated, although not by as much as might have been expected given the timing of price rises, with the lower priced SimplyBroadband product likely still driving significant ARPU dilution
The company disappointed the financial markets with a warning of higher SACs in H2, and its medium term EBITDA margin target remains challenging, but continued revenue growth and margin expansion are nonetheless likely
Auto is the third category in our annual series of reports on UK classified advertising, following UK classifieds and recruitment category outlook [2014-094] and Property classified advertising [2014-098]. In this year’s report we analyse the key drivers in the communications marketplace for used cars, notably transaction volumes and pricing. Overall the auto market is relatively buoyant, with the post-recession new car sales boom starting to feed into used car revenues in 2014, although the sustainability of this credit fuelled growth is far from certain. Auto Trader remains the big beast in the marketplace after Guardian Media Group sold its 50.1% stake to Apax Partners earlier this year. Apax will likely be considering an IPO or sale, particularly as market conditions look favourable in 2015 and Auto Trader’s strong leadership position looks largely unchallenged.
Property is the second category in our annual series of reports on UK classified advertising, following UK classifieds overview and recruitment outlook [2014-094] and with autos to follow. Our property market report analyses the key drivers in the communications marketplace for UK domestic property, notably transaction rates and house prices, but also substantial developments in government policy. We analyse the estate agent marketplace and drill down into expenditure patterns for property advertising across all media, and provide five year forecasts. We also look at the online property advertising markets in Australia and the USA to gain a broader perspective on potential developments in the UK. Here, the competitive battle between Rightmove and Zoopla continues; estate agents' plans to stem the duopoly’s pricing power with the launch of a new portal in January will struggle to achieve consumer momentum unless there is a huge marketing investment.
Claire Enders is quoted in an article about Youtube and whether it is rewriting the rules of broadcasting. The rise of so called 'vloggers', such as Zoella, becoming disproportionately important to YouTube - despite only representing a fraction of the overall programming upload to Youtube, with music videos still accounting for more than half the six billion hours of content. With more than 6.5 million subscribers Zoella is a dream advocate for many fashion and beauty brands.