Its operating profit fell to £646 million, from £898 million in 2023. Global is understood to be a laggard within the Business division, frustrating Kirkby. Karen Egan at Enders Analysis said: 'The problem is Global sells a lot of legacy services that simply are not that profitable.'
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Gareth Sutcliffe was quoted in The Times on "Can the video game industry snap out of its post-pandemic hangover?"
4 November 2024Gareth Sutcliffe, head of video games at the research firm Enders Analysis, said a lack of investment in the sector was “having a negative impact, particularly on indies and mid-tier studios, and that’s where you’re seeing this real pain point”.
Big tech meets big capex: How high can it go?
1 November 2024Big tech capex is set to jump over 50% in 2024, fueling the current AI boom, and supporting the training and deployment of the next-generation of frontier models slated for release over the next 2-4 months
If these frontier models can deliver greater capabilities, and the returns to match, it will intensify the race to scale up capex even further to train ever more powerful models on ever larger clusters of chips
If returns do not flow to the frontier, then models become commoditised, with all of big tech able to capitalise on their application layer dominance. If they do, then outcomes are uneven and uncertain with the core cloud players racing for dominance and leaving the others behind
Google shows its strength: AI, cloud and the future of search
1 November 2024Google's latest results suggest it is landing the AI transition, with multiple ways to exploit its investments in AI infrastructure.
Integrating AI into search is an imperative for Google. Unit cost and monetisation trends are reassuring, but the question of the search engine/website compact is not resolved.
Google is facing antitrust enforcement in its home market. Wrangling over remedies is ongoing, but Apple may be the one who can break Google's advantages.
Enders Analysis was mentioned in the Press Gazette on "How publishers use AI to boost productivity: From audio editions to exploiting archives"
1 November 2024A report from Enders Analysis has argued that generative artificial intelligence “will not alter the fundamental commercial reality for the news” as the shift online did previously.
The research firm cautioned publishers to be “realistic” about the productivity and revenue gains possible from AI, but added that ignoring AI would be “a mistake”.
The report found there have been some valuable uses for AI in the newsroom — but argued that there may not be an “immediate, killer news use case to raise revenues”.
AI can also help to create “more sophisticated metadata for archival material”, they wrote, in turn making it easier for journalists and readers to access a publisher’s back catalogue. This could have revenue implications for local publishers in particular, they said, “where some historical material has barely been digitised”.
A $1.1 billion rights acquisition fund establishes Grup Mediapro once more as a player on the sports brokering scene, though not on the scale of European leader Sky, which invested $3.2 billion in 2024/25 nor even Canal+, whose 2024/25 outlay is $628 million, according to Enders Analysis
Niamh Burns was quoted in Digiday on "Here’s how the Daily Mail intends to tackle election coverage on TikTok"
30 October 2024“Increased regulatory pressure could be behind this new publisher push,” said Niamh Burns, senior research analyst in tech and media at Enders Analysis. “From TikTok’s perspective, it helps to have fact-checked, informative news publisher content on TikTok to counter any narrative around disinformation or platform bias.”
But as she pointed out, publishers don’t make money on TikTok, at least not yet. “Until this improves it’ll remain an arms-length relationship for a lot of publishers,” Burns added. “TikTok isn’t a referral channel, and publishers need to balance getting their brand in front of young people with the risk of getting lost in the content mix.”
Enders Analysis was mentioned in The Telegraph on "BT rivals’ losses surge to £1.3bn as debt costs jump"
29 October 2024This was mainly driven by rising interest costs, which account for more than 100pc of alt-nets’ turnover on average, according to figures from Enders Analysis.
Enders said the tie-up could help CityFibre win market share from BT and Virgin Media O2 but warned there were limited wholesale prospects for smaller alt-nets.
The amount of money raised so far this year is barely enough to cover losses and interest charges – let alone to fund continued network expansion, Enders said.
UK football rights values have pulled further away from European peers in a stagnant market, as telcos have withdrawn and tech companies remain selective bidders.
Sky and Canal+ have tied down key contracts until towards the end of the decade, while DAZN now has domestic rights for four of the top five European football leagues.
Tech players want live sport, but have distinctive demands and without new monetisation models they will not challenge pay-TV incumbents.