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This report provides our annual assessment and forecasts for the recorded music market on the one hand, and the music publishing industry on the other hand. The reason for our dual focus is the key role played by mechanical revenues generated by the sale of recorded music formats in revenues of the music publishing industry, despite their decline since 2000

Revenues from performance (licensing fees from the use of music in broadcasts, music piped in shops or performed live) and synchronisation (music licensed for adverts and TV/film) have proved more resilient. Performance in particular was affected by the severe advertising recession in the music publishing industry’s core markets in 2008/09, whose impact we anticipate will still be felt in 2010

On the whole, however, music publishing revenues should recover and stabilise in our forecast period to 2014.

Launching in the US this autumn, with international rollout due in 2011, Google TV uses enhanced versions of the Android mobile OS and Chrome browser to deliver full access to the internet via ‘Smart TV’ sets and devices

Google TV extends the company’s vision of the open internet to the living room, beyond the PC and mobile, where internet-enabled TV sets will take increasing share, raising search revenues, with potential to take a piece of the $150 billion global TV ad market

Pay TV platform operators’ are unlikely to embrace Google TV to avoid cannibalising their own business models, limiting adoption to free-to-air TV homes, at least initially, and direct revenues are likely to be slow to develop

Overall reported revenue growth in the top 5 European markets increased by 1.6ppts, to growth of -1.7%. With little change in regulation during the quarter, underlying growth also saw a sharp uplift, rising 1.7ppts and building on the 0.4ppts increase seen in the last quarter. The European mobile market is now firmly in recovery following a very difficult 2009

There were approximately 18.7 million fixed broadband lines in the UK at the end of March 2010 including those used by small and medium enterprises (SMEs)

Year-on-year subscriber growth in Q1 increased for the first time since the early years of the industry, although the increase, from 5.7% to 5.9% was very slight. In our view it should be interpreted as a stabilisation

Looking at net additions in the quarter, Q1 saw the sequential growth drop back to a more normal level of 9% after the 54% spike in the previous quarter, but year-on-year growth, at 21%, was the first really substantial increase since Q3 2005, when market growth was coming to the end of its exponential phase

Oftel appears to believe that such an arrangement would be acceptable if it 'allowed the delivery of 3G services earlier and at lower prices' than would otherwise be the case. It notes that the 3G licences do not ‘a priori exclude infrastructure sharing’ and that some forms of sharing, e.g. masts, are positively encouraged.

The Orange Prospectus

We have forecast that the increase in the number of users during the whole of 2001 will be as follows

Broadband update document.

Microsoft has never made much impact on the Internet. As a result, we still have a proliferation of standards and competing suppliers of the underlying technology, of which the most obvious is Java. Almost all the new generation of Internet access devices, such as phones, PDAs and TVs, all use underlying software that does not work well with Microsoft technology. Genuine interoperability is not yet available.

The key points we make are as follows: