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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

Claire Enders, founder of Enders Analysis, the media research company, believes the most likely reform will be a tweaking of the licence fee combined with increased use of commercial partnerships to keep production costs down.

She says: “I think there will be more link-ups with the streaming services in the way that Doctor Who is being co-produced by Disney+, and I think there will be a tweaked licence fee that requires wealthier households to pay more.

“The Government could also look at charging businesses more to access BBC services: in Germany, all businesses have to pay towards public service broadcasters because they use their websites and programmes in the workplace.”

"The main idea is not so much to sell advertising, but to create a segmented offer with higher prices than before, while Disney is under pressure to act on its profitability," confirms Alice Enders, director of research at Enders Analysis. Between April and June, the platform's losses amounted to half a billion dollars, compared to 1.1 billion a year ago, despite significant cost reductions.

Gareth Sutcliffe, senior games analyst at Enders explained to City A.M. that Netflix’s foray into game streaming is “a natural progression for them”.

“They need to address the TV audience and they intend to do that without requiring an expensive console which is an enormous barrier to entry for many.”

Sutcliffe said Microsoft and Netflix “share a similar vision”, of low cost access to a wide library of games via subscription without the need for expensive hardware.

However, rival Sony “couldn’t be further away from that”, he said, adding that their need to discount PS5 in the UK shows that “lowering cost is vitally important”.

Tom Harrington, head of TV at Enders Analysis, said success on the pitch was matched by success on screen, saying: “If you’re doing well you’re more likely to get people watching. Also accessibility matters. It’s on BBC1 and this World Cup bar one or two games they’ve all been on free to view channels whereas previous tournaments all the games were available but it was on the red button and just harder to access.”

Mobile service revenue growth finally got close to the rate of inflation this quarter, doubling to 7.5% as the operators benefitted from mid-teen price rises.

Growth will wane from here with expected revenue growth of 6% this calendar year and 3% next, with ongoing cost-inflation pressures.

H3G looks set to fare better than others on the top-line in 2024 but its profitability is looking somewhat irredeemable, with negative cashflow even with more normalised capex.

Market revenue growth surged to 2% in Q2, but entirely-and-more driven by price rises, with underlying trends negative across volumes and ARPU.

Broadband volumes in particular turned sharply negative, largely due to a post-lockdown hangover combining with weak economic conditions.

The outlook is bleak: price rise benefits are set to wane and then reverse, and weak volumes will feed through, with economic recovery needed for a return to sustainable growth.

 

After a period of stagnation, many of the core business lines at the US tech mega-caps are back to posting respectable growth figures. The rest of the year will bed in strong revenue growth.

However, the sector is still facing a transition to new priorities. Core business strength should allow firms to shift from cost-cutting to the investment needed to fight the more competitive era they are facing.

AI is the number one focus, but the market for AI tools themselves is still nascent. Applying AI to internal problems has more promise. For instance, it is helping Meta solve its measurement and engagement problems.