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.
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BT had a solid Q4, with a continuing improvement in BT Consumer metrics and revenue growth the highlight, mitigated by weaknesses at BT Business and Wholesale
Overall Group revenue growth was positive again at 1%, and EBITDA growth of 2% would have been much higher had it not been for the impact of BT Sport
Despite revenue growth now being firmly positive, BT has only nudged up its guidance for 2014/15 and 2015/16, with the costs of BT Sport broadly counteracting progress with cost cutting
We have estimated the breakdown of the media day for UK adults (16+) using standard industry sources. The charts in the attached PDF present a picture of overall time spent with different media in the UK
Over the last 10-15 years the digitisation of content, coupled with internet connectivity and device proliferation, particularly recently with smartphones (now at 63% penetration) and tablets (35%), have given individuals far more ways and means to consume media and communicate with each other
However we also note that 'traditional' media has held steady and still accounts for 6 hours and 50 minutes of daily media time. We have not yet arrived in a post-print, post-TV world, rather a multi-layered one where consumers access media from a wide variety of sources and devices.
NYTNow, a new iPhone-only app offering a selection of New York Times journalism at a lower price, is the latest, pretty well executed manifestation of the company’s gradual change into a digital news business
A year after its unveiling, we review the progress of the company’s digital growth strategy, and point to some areas of concern, especially around video advertising
The biggest challenge the Times faces is to reengineer its journalism to appeal to a much broader digital audience, and to do so before others seize the opportunity its caution to date has opened up
Improving volume trends and ARPU drove Virgin Media’s cable revenue growth to improve from 3.0% to 3.6%, helped by a firm price increase implemented during the quarter
Underlying OCF growth improved more dramatically, from -1% to +6%, with synergy benefits, lower marketing costs and lower premium channel cost growth some of the main drivers
While volume growth is still modest, solid ARPU growth and cost control should allow continued strong OCF growth through the rest of the year
Alice Enders was quoted in an article regarding Sajid Javid, the new culture secretary, and his role in the debates over the renewing of the BBC licence fee. There has been some parliamentary support for decriminalising the non-payment of the licence fee; a move which the BBC believes could reduce its budget by £200m a year. Alice said " hopefully, he'll think twice."
The referendum on Scotland’s independence from the UK, which will take place on 18 September 2014, has seismic implications for businesses trading there, especially financial service providers, but little impact for businesses in rUK
Although the No vote remains ahead, the Yes vote has gained significant ground and the likely outcome is now too close to call. If the Yes vote prevails, Scotland will constitute a new and separate market of 5.3 million individuals, compared to the UK’s single market of 63 million today
As for the economy, Scotland’s Future, the White Paper issued by the Scottish Government on behalf of the SNP, details key assumptions such as currency union, expedited EU membership on UK terms and resilient fiscal revenues from oil and gas, which look to be under pressure, while key policies on individual, company and product taxation and regulation are in the hands of the next Scottish Parliament elected in May 2016
Claire Enders was quoted in an article regarding the potential successors of Lord Patten, Chairman of the BBC Trust, who announced on Tuesday his departure with immediate effect. The government has to name a head of the Trust a year earlier than expected; the possible candidates are Sir Howard Stringer, Colette Bowe and Marjorie Scardino. Claire said “there are many good female candidates…there is no need for it to be a retired, male Conservative politician.”
Q3 2014 saw adjusted revenues up by 7% across the first nine months of fiscal 2014, helping to offset the large cost increases due to the new Premier League contract and investment in accelerating take-up and usage of connected services
In line with strengthening the online offer, retail subscription revenues were well up in the quarter, which saw further strong growth in NOW TV and Sky Go Extra subscriptions, while bad weather and losses due to the final integration of O2 customers temporarily subdued broadband growth
Continuing expansion of the total paid for multi-product subscription base and launch of new transactional and adjacent revenue streams appear the key drivers of future revenue and profit growth, while the next and looming Premier League auction remains the joker in the pack
Northern & Shell has concluded the sale of the Channel 5 Group for the price of £450 million, a little over midway between the £103 million spent on acquiring Channel 5 from RTL in 2010 and the quoted target price of £700 million at the beginning of the year
Channel 5’s fourth place in the strong and buoyant UK advertising market, its PSB privileges and current audience and operating performance make it a rare and attractive opportunity for US groups like Viacom seeking to expand their international footprint
Among the challenges facing Viacom are the integration of the free-to-air Channel 5 Group reaching a broad audience with its own largely pay-TV channels aimed at the younger age groups. In the process, we expect Viacom to deepen its ties with Sky, including advertising sales, where further consolidation appears likely