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With still way more than 100 altnets across the full length of the UK, highly respected digital media and telecom sector research firm Enders Analysis laid bare today quite how economically constrained they are, in a new report published for its subscribers and entitled UK altnets: Something's got to give. In its summary, the Enders Analysis team noted that the collective losses reported by the altnets totalled £1.5bn in 2024, “as EBITDA [earnings before interest, taxes, depreciation and amortisation] losses persisted and interest costs rose sharply, with ARPUs [annunal revenue per user] weakening and operating costs stubbornly high, and the increasing interest burden looking unpayable under any reasonable scenario.” 

Aggregate losses at the UK's alternative network operators (altnets) reached £1.5 billion (US$1.9 billion) at the end of last year, up from £1.3 billion ($1.7 billion) in 2023, according to a new report from Enders Analysis. The report claims that even the best-performing of the altnets can "barely make EBITDA [earnings before interest, tax, depreciation and amortization] breakeven, and not make sufficient margins to cover ongoing customer acquisition investment, resulting in a perpetual cash drain for their investors." 

Looking at the UK PSBs alone, a Sky/ITV tie-up would control an estimated 70% of the market, creating significant distance between it and fellow commercial PSB Channel 4. However, when considering the wider video ad market, including Meta, YouTube, Netflix and Amazon, the combined entity would be significantly smaller, with Enders Analysis estimating its market share at 30%.

“In this unchanged and tepid business climate, only rivalry between US streamers facing a mature market could fuel rights inflation,” Enders Analysis wrote in a note earlier this month. “But besides Amazon, none have demonstrated interest or capability to spend significantly in European sports rights.”

The latest annual report from analyst firm Enders Analysis – seen by ISPreview – has calculated that the UK’s largest alternative gigabit broadband networks (i.e. BT / Openreach challengers) collectively suffered losses of £1.5bn in 2024 (up from £1.304bn in 2023 and £755m in 2022) – driven by high interest rates and rising build costs. But it suggests that many may never make a profit.

“A return on this investment is very uncertain in Europe,” says Francois Godard, senior media and telecoms analyst of Enders Analysis. “They are trying to beef up Paramount+ but is this enough to make a difference? TNT was never profitable. They are close to break-even now but not profitable after 12 or 13 years, even with the Premier League and the initial backing of BT. It will be challenging.”

“TNT is in a black hole of uncertainty because who will buy Warner?” asks Godard. “If Warner is bought then a new owner will have to do something with TNT. Will they keep it? Will they sell it? TNT as a broadcaster only has one pack of Premier League games and that’s not viable. There are many layers of uncertainty.”

Aggregate losses amassed by the dozens of so-called altnets rolling out full-fibre networks across the UK hit £1.5 billion at the end of last year, up from £1.3 billion in 2023, according to the latest figures compiled by Enders Analysis. Financing and operating costs remain “stubbornly high” and most firms have struggled to achieve the scale required to generate a sufficient return.

“It’s difficult to see a scenario in which retail altnets generate cash returns, even before interest costs on their debt,” Karen Egan, head of telecoms at Enders Analysis, said.