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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.
The EU's approval of the Microsoft acquisition of Activision Blizzard enforces expansive pro-consumer remedies that are in stark contrast to the 'hard no' CMA decision in the UK.
Cloud gaming remains the wedge issue in a global standoff amongst regulators over reining in Microsoft and other big gaming platforms.
The overall deal is still in considerable, possibly terminal, trouble with the UK appeal and US lawsuit still to be resolved, and the FTC hearing due in August.
Joseph Teasdale was quoted in Press Gazette on "Vice Media: From Murdoch money to bankruptcy in a decade"
16 May 2023Joseph Teasdale, head of tech on Enders Analysis’ media team, told Press Gazette the problem was “Vice never figured out a model at all”.
“Vice had a pitch – we know how to engage young people – but they never found a way to turn that pitch into a business,” Teasdale said.
“They tried digital advertising, sponsored content, creative agency work, TV production, but continually missed revenue targets and never hit sustained profitability.”
Teasdale added that Vice, in common with Buzfeed, had believed that their online content businesses would scale in a manner similar to the software and platform successes of the last decade.
Virgin Media O2: Darkest before the price rise
15 May 2023VMO2 had a subdued Q1, with EBITDA growth only just positive—this was pre-warned due to tougher comparables and the mid-teens price rise not due to take effect until April/May.
KPIs were mixed: fixed was fairly strong and mobile was slightly weak, with there being realistic hope that the former is a trend and the latter a blip, although more work is required to fully turn around fixed.
Guidance for mid-single-digit EBITDA growth for 2023 has been maintained. This now excludes the nexfibre construction margin benefit, thus is in a sense an upgrade, and still looks eminently achievable.
Joseph Teasdale was quoted in BBC News on "Vice and Motherboard owner files for bankruptcy"
15 May 2023"The issue with Vice and all similar websites is that they never really worked out a business model for free online journalism," Joseph Teasdale, head of technology at Enders Analysis, told the BBC.
Websites like Vice came along at the same time as the first dotcom boom was in its infancy and technology start-ups were springing up.
"There was a tendency at the time to treat everything like software, where you do your investment up front, attract a bunch of users, and then eventually when you're big enough you become incredibly profitable," he said.
"But it turns out content doesn't work like that - if you want people to keep coming back to your website, or to reach new people in new markets, you have to keep spending to make new content."
And some of Vice's content was "pretty expensive journalism", Mr Teasdale said, involving global trips.
Joseph Teasdale at Enders Analysis says: “The priority has to be rebuilding the advertising side of things.
“Yaccarino has the right CV to patch up relationships with large advertisers who’d rather their media buys didn't come with a side of drama.”
He added “Twitter needs someone to steady the ship and reassure advertisers. That’s much more important than what a few crazies think about Yaccarino’s loyalty to the New World Order.”
“I wouldn’t want to be chief executive under such a regime,” says Teasdale at Enders Analysis. “The risk is you get all of the blame with none of the power.”
He adds: “Musk will still be the owner, and I expect he will be as interventionist and unpredictable as ever.”
Farewell to Peak TV Disney: Q2 2023 results
15 May 2023Disney is deep into a race to improve direct-to-consumer (DTC) earnings faster than linear TV profitability falls. It will be a close call.
To get through the profit-depressed transition, Disney is doubling down on digital. Bob Iger now appears decided to keep Hulu, and will reduce content spending on long-term IP creation.
In Europe, Disney’s battle plan is one step behind, with significant price increases yet to be tried, cuts to be implemented, and sales to broadcast partners just beginning.
Sky will retain its English Football League (EFL) live coverage until 2029. While the price of the rights is up 50% (20% in real terms), the number of fixtures broadcast will increase fourfold to over 1,000 matches per season.
Sky's current EFL rights are very good value in terms of viewing—this will remain the case in the new rights cycle given the potential for broadcasting many more high profile matches.
With Sky retaining the EFL rights for relatively little more, there could be a similar outcome for the PL auction due later this year. Higher costs could be balanced by more matches, even if the 3pm blackout remains in place.