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Douglas said “These magazines are very strongly in that position because that is their heritage. It’s almost like the market has shaped themselves around the product they have been running for a long time."
Claire said “The streamer bubble is well and truly burst,” says Enders. “The Netflix share price drop has been the harbinger of all of these phenomena — the Wall Street people don’t believe in it anymore.”
She added that that there is no more room in the top tier, which comprises Netflix, Disney+ and Amazon Prime Video.
“They will keep open the possibility of launching in these other European markets. When they see that they build up a big audience on pay TV for ‘House of Dragons,’ for instance, and the other spinoffs, they’ll see that has perpetuated the value."
To be clear, these cuts are likely to be uneven. What the current rationalization of ad spending is making unequivocal is that not all direct response advertising is created equal. If anything, it’s driving a divide between higher and lower funnel direct response advertising, said Jamie MacEwan, media analyst at Enders Analysis.
Amidst the US macro downturn denting online sales, Amazon reported revenue growth of 7.2%, driven by AWS and advertising, but broad-based in nature
Inelastic demand for Prime has created opportunities to increase efficiency and monetisation, with cutbacks to fulfillment costs and increased subscription fees boosting Amazon's margins
Amazon's bottom-funnel search advertising growth has proved resilient, up 18% YoY, as growth eludes higher-funnel competitors—offering a strong indication that Amazon will largely buck the trend of advertising decline
BT Group’s revenue growth surged in Q1 to 1%, the first time it has been positive in five years, with a stronger than expected boost from the April price rises partially offset by the Virgin Mobile MVNO loss.
EBITDA growth, however, actually dipped to 2%, with little operating leverage due to cost pressures, although the company is still very confident in its full year EBITDA guidance (which implies 4% growth).
BT is far from immune to macroeconomic pressures, with pressure on costs, corporate revenue and signs of a sharp dip in broadband market growth, but it is well placed to deal with them given strong growth at Consumer and Openreach.
VMO2 struggled to fully capitalise on its price increases this quarter, with much of the benefits absorbed by retention discounts and tariff pressure.
EBITDA growth of 4% is nonetheless a solid result in a challenging market and guidance looks achievable, albeit not as easily as it previously did.
The opaque nature of the relationship with the new network company makes it difficult to establish whether VMO2 is capitalising on the current glut of speculative infrastructure investment, or is at risk of being a victim of it.
Claire said “The new model keeps the show on the road but there is no leeway for future commitment."
“It’s an extremely short-sighted move. Just look at how the BBC turned the 2012 [London] Olympics into a global performance, reigniting tourism to the UK and making an enormous financial contribution. The BBC was planning for years for that event.”
She added “The British system is ginormous and the French don’t quite have the same understanding of the role they play in the world."