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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.

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.

 

Rigorous Fearless Independent

The Financial Times

20 December 2010

Following the announcement by the BBC that it intends to build on the popularity of the iPlayer by launching an international version of the video-on-demand service as an application for the Apple iPad (BBC picks iPad for iPlayer global launch), the FT asked Benedict Evans for his view.

The Financial Times

17 December 2010

Heralding the simultaneous launch by Rupert Murdoch and Sir Richard Branson of iPad-only publications (Why the iPad should rival the web), the FT suggested that both announcements simply reflected a "bigger debate about whether companies are balkanising the web to gain economic leverage".

The FT argued that a tablet "restores the advantage of depth over breadth" and in making use of such technology "an edited in-depth publication has a better chance of competing with the atomised, open-source information flow of the open web". However, the article conceded that many people are happy to live in the world of free, distributed information and will prefer it. Benedict Evans was asked for his view. He said: “If you think that the day of the editor deciding what you read today is dead then these apps will fall apart.”

The Financial Times

17 December 2010

Following Virgin Media's announcement that it will provide its customers with a new set-top box which would combine the internet and television on one screen (Virgin boss boasts better TV than Sky), the FT observed that "rivals including BSkyB and YouView, are rushing out similar services, but Virgin said its offering was the first of scale".

Having warned that questions would be asked over the reliability of the technology, as "Virgin has had problems over customer service" the FT asked Toby Syfret for his view. He said: “This is a chance to produce something that is user friendly and encourages video usage... But seeing is believing, so we will have to wait to see if it works.”

http://www.ft.com/cms/s/0/3975a6f8-fd3c-11df-b83c-00144feab49a.html#axz…

The Financial Times

17 December 2010

In an article which revealed that Jeremy Hunt, the culture secretary has told BT that the government would not provide it with a “blank cheque” (BT warned over broadband funds) the FT explained that a fund of £830m (drawn from the BBC licence fee over the next seven years) will be made available to extend the high-speed broadband network. Although the fund is open to other broadband operators, BT claims that the fund would enable it to extend its high-speed network to 90 per cent of UK homes. BT is spending £2.5bn on its network to reach two thirds of homes by 2015.

Ian Watt was asked for his view. He said that he expected BT to be the company that secures the largest portion of the £830m, partly because it was best placed to provide significant additional funds of its own to expand superfast broadband to rural areas.

The Financial Times

17 December 2010

In an article which indicated that Apple may be struggling to maintain quality control over its App Store (Japan publishers accuses of App Store of piracy, the FT revealed that the Japanese Book Publishers Association is claiming that "Apple had failed to address numerous private complaints about the handling of bootlegged works, many of which are Chinese translations".

Benedict Evans was asked for his view. He said: “From Apple’s perspective, there are 300,000 applications on the App Store and 50,000 book apps – they can’t check all of them... They have a scale problem but not a willingness problem.”

http://www.ft.com/cms/s/0/57879f8c-0793-11e0-8d80-00144feabdc0.html#axz…

The Financial Times

17 December 2010

In an article which heralded a competitive environment for data tariffs (3 unlimited data tariff challenges market) the Financial Times observed that 3, the UK's smallest mobile network operator "is seeking to double its subscriber numbers over the next five years and regards its new unlimited data tariffs as an important driver of growth".

When asked if 3’s move could enable it to poach customers from rivals, James Barford said that unlimited data tariffs were attractive to consumers, but they risked being “uneconomic” for operators if downloading surged on their networks.

http://www.ft.com/cms/s/0/40d8ffc4-0888-11e0-80d9-00144feabdc0.html#axz…

With the completion of digital switchover still on track for mid 2012, stabilisation of the main digital broadcast platforms is expected, with roughly equal numbers of subscription pay-TV and free TV homes, though with marked differences between the platforms in terms of demographic composition and the proportion of pay-TV customers

Further marked differences exist between the satellite, cable and terrestrial platforms with regard to PVR adoption, notably higher in pay-TV households where distribution can benefit from box subsidies and greater product consistency. National PVR penetration of TV homes is expected to grow from slightly below 50% in 2010 to over 70% in 2015

As DSO nears completion, the stage is set for broadband connectivity. Although household penetration of internet-enabled TV devices is expected to exceed 50% by 2015, the emergence of hybrid broadcast and broadband services is expected to proceed much more slowly, limited by a number of factors – not least the ability of service providers to monetise their non-linear on demand offerings

Since free DTT launched in 2005, Spain’s free-to-air broadcasters Telecinco and Antena3 have broadly managed to preserve audiences at group level. In 2010, they benefited from the rebound in advertising and from the withdrawal of public TV from airtime sales

By the end of 2010, Telecinco will close its acquisition of loss making competitor Cuatro. Telecinco will be able to realise some synergies, but we expect Cuatro's business model may require change to break even

Pay-TV operator Digital+ has lost 300,000 subscribers (15%) in two years, but prospects are mildly encouraging as a result of the end of the digital transition and the recession, a new three year football deal with competitor Gol TV and possible marketing initiatives by new minority shareholders Telefónica and Telecinco

BBCW is selling its portfolio of magazines. This is the first major disposal of the UK magazine marketplace since Emap sold its consumer magazines division to Bauer in December 2007, valuing the portfolio at 1.8x pro forma revenue, but we expect a lower valuation given the downgrading of the magazine marketplace

Our analysis of the portfolio suggests a mixed bag of relatively resilient adult-focused titles, while Radio Times is a significant cash cow with medium term potential from a more aggressive commercial owner. Our principal concern resides in the viability of the children’s magazine portfolio, where titles are tied to Cbeebies programming, with relatively short life cycles

Bauer is a probable favourite to buy the portfolio, assuming it is picked up by a trade buyer. A post-acquisition process of disposal of non-core assets could provide other trade players with the opportunity to scoop titles that fit well in their portfolios