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.
The Premier League deal will help to guarantee Sky’s future by removing a risk to its TV subscription base, even as the cost of living crisis is hitting the mobile and broadband market.
Under Strong’s three-year tenure, the broadcaster had been able to bring its US parent “on board with Sky’s objectives” — including signing the cheque for more than £5bn for the rights.
Service revenue growth was broadly flat this quarter as some unwinding of price increases was compensated by a pickup in roaming revenues.
Vodafone has made some progress on its turnaround plan: it has sold its ailing Spanish unit; is rumoured to be in talks about a deal in Italy; and its German business is (just) back to growth (for now).
We expect muted guidance for 2024 with lower prospective price increases for most, inflated cost bases, and continued consolidation uncertainty.
Ofcom’s plan to ban inflation-linked price rises creates a headache for most operators, but the financial hit will not be felt for years, if then (depending on their replacement).
Ofcom is correct in pointing out some of the drawbacks of the practice, but it will likely be replaced by an alternative tactic that may well end up being worse for consumers.
The unintended consequences could be significant, with a period of uncertainty for operators, low-end plans less appealing to offer, and poor signaling to investors in the sector.
The English Premier League is able to generate billions of pounds from its overseas television deals, while other European leagues have lagged well behind. According to figures from Enders Analysis, the Premier League earns more than €2bn a year from its international rights, compared with about €200mn for the Bundesliga. Many German club executives believe more needs to be done to build a global following.
Senior telecoms analyst at Enders, Karen Egan, said the Vodafone dividend is “certainly the one most at risk” but more due to recent operational pressures than rising rates yet.
“The sector as a whole has really been struggling over the past few years with revenues usually in decline, and where there is any revenue growth, it is way below inflation,” Egan told City A.M
“Add to that the cost of 5G and fibre roll-out, it is hardly surprising that dividends are under pressure, even before accounting for the headwind of rising rates,” she explained.
There are, broadly speaking, two reasons for that. One is simple: The status quo works for the league. “They are too happy with the deals they have made” to start experimenting, said Francois Godard, a senior media and telecoms analyst at Enders Analysis. The Premier League is the richest, most coveted and most popular sports league in the world. There is not, Godard said, “an incentive to try things.”
It is testament to the increasingly evident symbiosis between the Premier League and Sky: The league needs its loyal, longstanding broadcast partner, but not nearly as much as the broadcaster needs the league. “Sky is more dependent on the Premier League than any other pay TV operator is on any sport elsewhere,” Godard said.
Media consultant Alice Enders has claimed the BBC's world renowned wildlife shows could be next in line for cuts due to their high production budgets.
The original Planet Earth in 2006 cost £16million to make.
'If the licence fee continues to wither, you are looking at the BBC's big-ticket items to make savings so nothing can be immune,' Ms Enders told the i. 'David Attenborough's natural history series sell well globally but they are expensive too. There would need to be more co-productions with international broadcasters.'
Ms Enders warned big ticket drama could also be the focus of cost-cutting, adding: 'There could be less high-end drama, it's a big expense and streamers are forcing prices up.
'The costume budget alone for The Crown is huge.'
“It was very clear that the government was very intent on producing a squeaky clean appointment process,” said Alice Enders, director of research at the media research firm Enders Analysis.
