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Rigorous Fearless Independent

Advertising income has been the lifeblood of commercial TV for decades, but declining linear audiences—combined with digital video alternatives—mean the TV advertising model must evolve to ensure it remains as potent a medium for brands as ever.

Lack of effective audience measurement and somewhat opaque advertiser/agency/sales house relationships are hampering linear TV advertising revenues. Both issues need resolving to underpin a healthier ecosystem overall.

Flexibility is key to this evolution. A move to audience buys across most linear and BVOD inventory would provide greater flexibility and targeting for advertisers, and would sit alongside some premium context buys. A greater onus on volume deals would give broadcasters more certainty to invest in content and their advertising propositions.

Tom said “Sky Arts is not quite parking its tanks on the BBC’s lawn, but the Beeb doesn’t want to concede ground on what has been a stronghold area. The Sky Arts move is about securing regulator support for its fight to be highly visible on electronic programme guides — it’s saying it’s better at public service than ITV. Arts programming is going to be one of the flagship genres for proving quality and value. As UK media companies fight off billion-dollar streamers, it is becoming their most valuable weapon.”

Tom said “In terms of advertising, there is a lot of pressure from the online space, so television has to be more flexible. There is an increasing emphasis on sponsorship of programmes, product placement and funding the programme itself. This is content part-funded by an advertiser but the rules will not allow it to look like an ad. They can’t have the screen covered in M&S logos.”

Spectrum auction assignment stages are normally fairly dull and routine, but due to the two-part nature of the 5G auctions, and the critical importance of proximity and contiguity, this is not the case with 5G.

The assignments won, combined with the Vodafone/O2 deal, ensures that all the operators enjoy at least 80MHz of (essential) proximity, but only O2 gets (nice-to-have) contiguity.

Further swaps could ensure contiguity for all, but this requires H3G to co-operate, which is in its absolute, but not relative, best interests.

Julian said the breakaway saga of the last week had thrown "even more uncertainty into the broadcasting landscape."

"The uncertainty generated by the suggestion of the ESL breakaway has caused broadcasters to be a little more concerned about the prospects of a healthy football ecosystem," he told Telegraph Sport. "So for the upcoming Premier League rights auction, in particular, I think the broadcasters are going to be slightly more cautious than they would have been otherwise had this not happened."

That caution, he says, is most likely to manifest in seeking reassurances, rather than in negotiating prices down. "It probably doesn't do too much to further devalue any values so long as they can be sure of what they are getting,"