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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

The Premier League’s handling of its latest domestic rights sale has been declared a success by Francois Godard, a senior media and telecoms analyst at Enders Analysis.

“I think it’s a good deal because prices for rights are flat across Europe, or declining,” Godard told PA.

“The important thing is to maintain the gap between the money they earn and the money earned by the closest (rival) continentally, Spain’s LaLiga.”

Godard felt the structure of the deal – spread over four years instead of the traditional three years and with two fewer packages on offer – suited the largest incumbent rights holders Sky Sports, which he feels has a symbiotic relationship with the league.

“Sky need the Premier League. It’s their best and most valuable content,” Godard added.

A regulatory intervention on public interest grounds now stands in the way of RedBird IMI owning the Telegraph and Spectator after the Barclay family settled the loan with Lloyds Banking Group (LBG), thus ending the auction of the titles.

RedBird IMI CEO Jeff Zucker anticipated concerns on public interest grounds in the UK and sketched out possible undertakings to mitigate them.

Ofcom has experience with advising on the public interest in newspaper mergers, but not with tussling with opponents on the foreign ownership of news titles.

Now, though, the situation looks set to worsen. If the Government were to opt for only a 6.7pc increase in the licence fee next year – reflecting the inflation rate in September – the BBC’s annual shortfall would balloon to around £516m, according to Enders Analysis.

Alice Enders at Enders Analysis says the BBC is likely to swing the axe on big-budget productions, rather than tinkering around with smaller cutbacks.

“The problem is the minute you cut the content you cut the audience,” says Enders. “It’s very difficult to recover from that as a public service broadcaster.”

Mobile service revenue growth dipped to 5.6% this quarter as the impact of Q2’s price rises began to wane, and the prospective lower price rises look set to slow growth to 2% by the end of 2024.

Bargain-hunting in the sector continues with the MVNOs still taking the lion’s share of net adds, to the detriment of the MNOs.

EE is offering keenly priced convergence and family plans with its new platform—another challenge for the other MNOs who don’t share the same incentives.

DAZN has morphed from a purely OTT to a hybrid sports service, becoming the number two football broadcaster in Europe.

A revamped distribution strategy focused on partnerships with pay-TV operators has extended reach and improved coverage, while ARPU has grown from firmer pricing and more sophisticated packaging.

DAZN is now a more financially sustainable company that should reach breakeven next year and move into profitability thereafter, with additional upside from betting and retailing third-party sports services.

James Barford, an analyst at Enders Analysis, says alt-nets are under “a lot of pressure”, adding that consolidation is “widely expected”.

Barford adds: “Getting to full coverage is something that is already requiring government intervention and it’s not quite clear if we’ll get there by 2030 or shortly thereafter.”

“The broadband market is not growing as fast as you would expect it to, as fast as it has in the past, and the cost-of-living crisis probably has something to do with that,” says Barford.