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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

Through innovations in processing, connectivity and cameras, Apple’s new device lineup dispels fears that the importance of integrated, profitable mobile hardware is in terminal decline

With the broadest range of iPhone price points ever, Apple is confidently balancing between profits and growing the valuable installed base

Apple’s long way to an AR future is now well paved, but a weakness in mapping could prove to be an Achilles heel

The development and utilisation of streaming technologies has allowed major SVODs, such as Netflix and Amazon, to attain a growing proportion of video viewing

However, tech is just one of the advantages held by these services: plateauing content expenditure, the inability to retain IP and inconsistent regulatory regimes hamper the efforts of the UK’s public service broadcasters

The localised nature of audience tastes, as well as the diversity of PSB offerings remain a bulwark to aid in the retention of relevance but content spend cannot lag

Financial Times

13 September 2017

Claire Enders was quoted in an article on the UK Culture Secretary, Karen Bradley, concerns over corporate governance failures at Rupert Murdoch's Fox, and lack of procedures of broadcast compliance for Fox News in the UK. Recent scandals at Fox News are threatening to derail Rupert Murdoch’s proposed £11.7bn takeover of European pay-TV group Sky after the UK government signalled that it was likely to widen an investigation by regulators into the deal. In a significant shift, the culture secretary said she was now likely to refer the bid to the Competition and Markets Authority on whether 21st Century Fox’s acquisition of Sky shares it does not own would comply with UK broadcasting standards. Her shift in position, which followed intensive campaigning from anti-Murdoch groups and a cross-party group of MPs, also overruled a recommendation from the UK media regulator Ofcom, prompting some analysts to question whether the move was politically motivated. Claire said “this was a political decision. It’s very peculiar to override Ofcom despite no change to their advice”.

Financial Times

13 September 2017

Claire Enders was quoted in an article on the announcement by Karen Bradley, the UK culture secretary, on the Sky/Fox bid. Ms Bradley said that she was minded to widen a referral to regulators about the £11.7bn deal, to include scrutiny of corporate governance controls at Fox News. Ms Bradley raised new concerns about the transaction, overruling a recommendation from Ofcom, the media watchdog, that regulators consider only the deal’s impact on the UK media market. Claire said “Ofcom hasn’t changed its mind. “There is no new news, but the secretary of state has decided to go for the safest option to protect her from a judicial review. This shows the government just needs a quiet time”.

Financial Times

12 September 2017

Douglas McCabe was quoted in an article on the Express, once the best-selling newspaper in the world, which could be heading for new ownership. On Friday, Trinity Mirror, publisher of the Daily and Sunday Mirror, as well as 150 local UK titles, said it was in exclusive talks to acquire the Express and Star newspapers, along with the magazine assets owned by Mr Desmond’s parent company, Northern and Shell. Although both sides stressed that a deal is still some way off, Trinity’s renewed interest — the two sides tried but failed to clinch a deal back in 2015 — presents Mr Desmond, 65, with the opportunity to bail out of the rapidly shrinking newspaper business. Throughout Mr Desmond’s time in charge, the Express group has posted healthy profits. But during his ownership, the daily newspaper has been eclipsed by rival the Daily Mail, with circulation falling from more than 1m at the time of Mr Desmond’s takeover in 2000, to just below 400,000 today. Douglas said “every publisher has had to make cuts over the past few years. But the Express group has been more ruthless than most”.

For the second consecutive year, the global recorded music industry body IFPI reported rising trade revenues, growing 5.9% to reach $15.6 billion in 2016

Our forecasts supplement IFPI’s trade revenue data with richer national-level consumer expenditure data from local bodies in core markets, and project CAGR of 2.3% to 2021, tapering off as streaming approaches maturity

This fairly modest topline growth for global recorded music streaming trade revenues is the product of our judgement that the marketplace remains awash with free music. Streaming trade revenue growth could be higher still if the industry finds a solution to piracy through technological or regulatory means, obviating the need for the ad-funded compromise

The Times

6 September 2017

Matti Littunen was quoted in an article on the growing numbers of people using mobile devices to access social media or watch films and popular television boxed sets. Accordingly, Enders Analysis research published yesterday showed that for the first time more than half of the total number of minutes spent online by Britons is via mobile devices, with more than 36 million people spending an average of two hours accessing the internet on their phones or tablets every day. Matti said that bigger screens, the availability of faster and better connections and the rising popularity of streaming services such as Netflix and Amazon Prime were helping to drive higher levels of smartphone use. He added that the rising level of smartphone penetration was being driven further by “changing attitudes” towards banking, ecommerce and dealing with local government. Increasingly, this was encouraging people to perform everyday tasks online that previously they would have done manually. “It’s only logical that for people who don’t need a big screen, they will gradually shift towards mobile only”.

With smartphones in the pockets of 3/4 of the UK population, and accounting for over half of all online minutes, the mobile revolution is in its final stages, allowing us to survey its impact

As the number of social media users continues growing, untapped older demographics and Instagram help the Facebook suite of apps grow in the UK, but Snapchat is the social media app of choice for UK teens

News publishers face issues with brand attribution as social media platforms overtake search as the main news aggregators online, while small UK video publishers have become unlikely winners in a global market for soft news, infotainment and gags that dominate social video

 

UK residential communications market revenue growth bounced up to 3.6% in Q2, a full 1.4ppt improvement on the previous quarter and reversing the downwards trend of the previous two quarters. However, this was entirely driven by price rises at BT and Sky, with the ongoing market volume growth decline continuing at pace

In competitive terms, TalkTalk was the only operator able to improve its broadband net adds on a year earlier, and Virgin Media was solid with only a modest decline, leaving BT and Sky shouldering the worst of the slowdown, albeit with neither company doing particularly poorly given the market context

New customer pricing remains tight, with Virgin Media in particular becoming more competitive. Looking forward, we expect volumes to continue to slow, and for the pricing boost enjoyed in Q2 to largely drop out next quarter, leading to a renewed revenue growth slowdown