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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.

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Rigorous Fearless Independent

Tom said “To become profitable, Netflix has to put up prices and spend less on content — and it can’t really spend less on content, at least at the moment."

He added “There were two things stopping Netflix from being basically unstoppable. One was the debt situation — and that’s gone now. The other was that Netflix does not, and probably is never going to, make truly local content.It makes an increasing amount of stuff in Britain with UK producers, but with an international audience in mind.”

The Consumer Electronics Show (CES) this year was held virtually, with announcements revolving almost exclusively around the pandemic and addressing changing consumer needs. The evolving use of tech at home was a particular focus for brands as consumers are now demanding more of their homes than ever before.

Following a record 2020, ecommerce was a topic that garnered a lot of attention, with retailers emphasising the importance of a consumer centric 'digital first' strategy, accepting the fact that ecommerce is going to be bigger than it ever has been.

Amid increased tech use at home, moves to ban third-party cookies and impending regulatory changes to data collection in the US, the conversation around data and privacy was more prominent than ever before. First-party data is going to be more valuable, even if tracking restrictions limit what can be done with that data.

Claire said “There is no platform that would offer a financial inducement [to the Trumps], apart from an obscure one we don’t know about yet. There are a few giant cash machines in the world, and we know what they’re called: Amazon, Apple, Facebook, Netflix. Trump isn’t going to get a $100m deal from a broadcaster... ”

She added “I knew the Trumps in the 1980s. They’re the most ridiculous people. They’re very secretive, they behave as if they are very special people. They will become recluses, they will see each other, with a tiny court. But I really don’t think they will be able to raise any money.”

Claire said Murdoch has long held an interest in India. “Over 20 years ago, James Murdoch was amongst the first to recognize the economic future of India and to invest significantly in bringing modern media to India."

She added "It makes a lot of sense for him to ride a new wave of interest and investment in remote education, remote health and remote working in one of the economies with the most potential for those services."

Netflix believes that it no longer needs to raise external financing for its day-to-day operations. This has come quicker than expected—a product of the pandemic, fuelled by an extra $4.8 billion in streaming revenue (+24% on 2019) and aided by the production shutdown and proportionally lower marketing spend

Baked into Netflix’s confidence for the future is the knowledge that the pandemic has allowed greater exploitation of price rises, given the residual lower churn

While Disney+’s content slate is impressive, Netflix has countered it with breadth alongside scale and a massive 2021 film schedule that given it is not geared for the box office, will be a more diverse offering than that of the major studios

The UK entered 2021 in the grip of a dangerous third wave of the pandemic, despite Lockdown 3.0 over Christmas, driving down trips taken by people to depressed levels last seen in Lockdown 1.0, reducing economic activity for Q1.

Time spent at home closely tracks the severity of lockdowns and mandates to work from home (WFH). Underpinned by the UK’s advanced digital infrastructure and services, WFH is providing resilience to Gross Value Added (GVA) creation, while staff in B2C activities are furloughed.

The City of London is emblematic of the potential for outsourced GVA creation under WFH. Its skilled and highly paid staff are too valuable to employers to risk exposure to the virus. WFH, largely preserving GVA, will anchor the future of work.

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