Homepage

Under mounting competitive pressure from Sky, NTL needs to reinforce its position in content and has approached ITV about a possible combination

The Zune will compete with the iPod Video – but not the mini, nano or shuffle that have built Apple’s player market share. The Zune’s USP of Wi-Fi capability (to share tracks locally, not download) is just a gadget, not a must-have selling point

The UK newspaper industry is being engulfed by a 'perfect storm'. Overall advertising has been in a cyclical downturn since mid-2005, and public sector recruitment in particular has been weak, while readers desert newspapers (even free ones) for the internet, to which they are drawing spend on classified and display advertising. We view classified advertising in print media as being in permanent decline, anticipating an overall drop from £4 billion in 2006 to £3.5 billion by 2011

Last week Google hit the headlines on the back of forecasts for its UK revenues for 2006 which we expect to reach £920 million, up 90% on 2005, cited as proof of a structural shift away from broadcast media to the internet

Orange UK’s converged mobile and broadband brands and ‘free’ broadband offer has not proved a big hit with consumers, with Orange reporting just 25,000 DSL net additions for the September quarter, likely to be below 5% market share

Group revenue growth continues to be positive but vulnerable; EBITDA growth continues apace but cash flow growth has again been hit by 21CN capex

Vodafone’s revenue growth has improved, with core underlying growth rising both relative to the previous quarter and relative to its competitors

Although NTL could use ITV programming to improve its competitiveness, it is difficult to see how yet another acquisition could be justified, given the managerial and financial burden that would result. Nevertheless, we believe that NTL will move heaven and earth to acquire ITV and is deeply serious in its intentions

Having experienced an almost straight-line decline in its audience, ITV1’s 20% share of total viewing in 2006 is about half of what it was in 1992. Although the causes of this dramatic decline have varied, the result has always been the same. When and where will it end? ITV1 Viewing Decline: Causes and Prospects [2006-63] examines the most recent viewing trends, starting in January 2003 and coinciding with the launch of review. This period has seen especially rapid digital growth, with almost 80% of the population now able to receive digital TV channels at home, compared with just over 50% at the start of 2003