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.
“What matters is the state of the broadcaster market. However, competition is currently very weak. The billion goal is not achievable,” François Godard, consultant at Enders Analysis, recently told us.
Paid sharing and "price optimisation" are returning clear benefits for Netflix, with healthy subscriber growth (+8.8 million, up to 247 million) and an 8% YoY increase in revenue ($8.5 billion) in Q3. However, success of the advertising tier remains slow
In the UK, Netflix is growing revenues and ARPU, and although it is now a challenge to grow the subscriber base, there is a clear and large group of non-paying users that are now being targeted
Netflix's per household engagement is materially higher than its direct competitors. However, this is plateauing and has implications for revenue levers such as advertising impacts and price rises
James said “Strategically it’s about moving to broad convergence, EE as a single brand selling a bunch of different services.” It is a telecoms proposition that has not always been successful, notably with Orange’s attempt to move into banking, and several European telecoms’ stunted ventures into sports rights. But Barford said: “While the strategy has failed elsewhere, here it’s being done in an incremental and careful way.”
Karen said "EE’s expansion in consumer electronics was relatively low risk and that the new customer app could help EE to strip out costs from back-office operations such as call centres...They’re not betting the house on it, but it’s a sensible move in the right direction.”
Online retail is a prime arena for AI implementation, with a high degree of tech involvement and proximity to the point of sale
Generative AI’s near-term prospects are inflated by the hype cycle; instead, improvements to product discovery and logistics will be the next frontiers for growth and AI-driven efficiency
Retailers risk their reputations as they jostle for early mover advantage: larger players Amazon and Shopify through major investments, and SMEs with specialised data and licensing
Marshall is seen by analysts as one of the most credible owners of the Telegraph, alongside other bidders such as Lord Rothermere’s DMGT. Claire Enders, a media analyst, said this was in part because Marshall would be one of a “handful of media owners acceptable to the Conservative government”.
Griffin would give his bid “real US conservative firepower”, Enders said, adding: “Paul Marshall wants to influence wider culture.”
Alice Enders, director of research at media advisory firm Enders Analysis, said in a note this year that Spotify’s decision to “massively invest in podcasts” had “spectacularly failed to deliver the anticipated financial rewards to shareholders”. She said that, in general, “monetisation is extremely difficult” for large companies seeking to make serious revenues in podcasting because of shortcomings in the digital advertising market. One solution is to build paid-for subscription bases, but this is difficult when much content is free.
“What you’re seeing in the podcast area, which is basically a very fat head and a very thin tail and nothing in the middle, is what you already see in music,” said Enders. “Only the big-hitters make any money from it.”
Francois Godard, senior media and telecoms analyst at Enders Analysis, puts it another way: “European TV had it too good for too long.”
“We’ve seen a change of pace recently with ITVX and RTL+ in Germany,” Enders’ Godard. says “ITVX is releasing more content online before the linear channel. It is conceived as a destination rather than ITV Hub, which was catch up.”
As Europe’s commercial networks come to grips with streaming, they are also wrestling with shape of their wider businesses. Analysts expect consolidation of one form or the other to follow over the coming decades, as scale becomes ever more decisive. Enders’ Godard says it’s a “trial-and-error environment” right now but adds he would be “reassured” if the thinking was “more collective.”
