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.
Alice said "The only thing news publishers can do is try and accelerate the migration of print customers to digital."
But that's easier said than done. Free print titles are particularly exposed, according to Enders.
"By its very nature, a consumer of print is not hooked into the digital subscription and there's no obvious path to take them from print to digital. The only inevitable consequence in my view is to have a decline in margin."
With 54 million daily active users, half of whom are under the age of 13, online games hub Roblox is much more popular than Fortnite, and still growing rapidly even on top of a sizeable pandemic boost
Roblox is a window into metaverse-like value exchange. The platform pays out about $150 million to developers each quarter through its thriving real-world economy without calling on blockchain―the company must avoid the distraction of NFTs as it attracts more brands
Roblox's success suggests that platforms will remain at the heart of virtual worlds; Roblox itself is a (relatively laissez-faire) gatekeeper, though subject to app store rules in an ongoing financial and policy headache
Joseph said “The D2C market is set to consolidate, as the many, many businesses with unsustainable unit economics are exposed by a downturn. Add to that the fact that targeting and attribution are getting harder, due to technical and legal restrictions piling up.”
Abi described the BBC’s results as “really good” but added that they followed a year full of lockdowns, meaning that a production rebound and pent-up advertising demand were likely to have helped.
WBD has “figured out that, actually, the only axis they need to pay attention to, given the importance of these businesses and their core markets, is — No. 1 — the U.S., then the U.K., Germany and France,” says Claire Enders, founder of leading London-based media consultancy Enders Analysis.
“There isn’t any other place they need to play,” she adds. This axis “drives their business to an extraordinary extent, and they can have much thinner services elsewhere. It’s absolutely the right strategy.”
She added “All that mystery of, ‘Are HBO and Sky going to sign a new deal?’ ‘Is pay TV going to die in Europe?’ Well, that question is over. There isn’t going to be the death of pay TV. These companies are going to be relicensing material that their aged 50-something audiences are really going to enjoy.”
With the cost-of-living crisis expected to worsen over the coming months, the telecoms operators must walk a fine line—support customers but protect their financial performance in the face of a likely recession and rising costs.
We are likely to see weakness on the B2B side and consumers will look for ways to reduce out-of-bundle spend, seek retention discounts and spin down to lower speed tiers and data bundles, but we expect that dropping services completely will hold limited appeal.
Proactive retention activity and promotional pricing is likely to pay off more than slashing headline prices, and will help to avoid a damaging price war—a far bigger risk to their revenues than spin-down.
Joseph said Twitter has a good chance of forcing Musk to pay what now looks like a very high price for the company because “most people don’t come to business and legal negotiations with the bad faith and poor behaviour that Musk has displayed”. “That gives Twitter good leverage to get a renegotiated deal that avoids a full court battle: either a slightly reduced purchase price, or a more substantial damages payment than the $1 billion."
The 'enterprise metaverse' is best described as the next generation of communications, productivity, and collaboration tools—with VR/AR the centerpiece of the experience. Big tech is investing billions to bring it to market quickly
Quest 2 VR headsets by Meta have changed the cost equation for VR deployment in enterprise—low-cost headsets already have enterprise demand outstripping supply globally
Microsoft and Meta are closely aligned and co-operating, but Meta has its sights on its own high-value commercial customers and can expect incumbents to fight to retain them
Francois said “In the main markets of North America and Europe, it’s not about growing the subscriber base for Netflix, but keeping it and raising prices. Sport is a very good tool against [losing subscribers] because you have those in the fanbase that won’t churn because a season is over six months, or four months, and matches are shown every week."
“The question is does Netflix want to remain one streaming option among many? Or do they want to be a full alternative to traditional TV that would encourage consumers in Europe to forget about Sky? If you want to do that, you need sport. While not cheap, sport means you can charge a higher subscription fee.”