The new platform will offer a common program guide. “Freely wants to give channels back, on connected televisions, the pre-eminence they had on DTT,” summarises Gill Hind, director of television at Enders Analysis.
"We are in an experience economy where people crave going out and participating in social events," Alice Enders, a music industry analyst at Enders Analysis and a former senior economist at the World Trade Organization told CNN. "It's no surprise that people are flocking to this Eras Tour experience in what is increasingly an otherwise digital environment we live in."
The current deal is worth €662 million a year for the domestic rights, according to Francois Godard, a media analyst at Enders Analysis.
“I see no reason why the total league intake for domestic rights would rise,” he said
Joseph Teasdale, tech analyst at Enders, said: “The big question is who captures the economic benefits of the AI goldrush — is it companies like Arm who design chip architecture, companies like Nvidia who make the GPUs [graphics processing units] that AI data centres run on, or companies like Google and Microsoft who make AI usable for businesses?”
Media analyst Claire Enders, founder of Enders Analysis, has suggested Rupert Murdoch’s News Corp could be tempted by The Spectator.
Much of this is the result of services such as Netflix that have eroded the structural advantages enjoyed by linear TV providers in the past, says Tom Harrington, head of television at Enders Analysis.
“For cable TV providers like Charter, it is about as bad as it has ever been,” says Harrington.
The Disney-Charter dispute should be seen in this context, says Harrington.
“Cable TV companies are under stress. But Charter probably thinks that Disney is under pressure too, and has calculated they can push it a bit further than if things were going well,” he explains.
“They also feel that Disney’s channels are not worth as much as they were during the last negotiations, because a lot of content is now on Disney+.”
“DAZN has been selling advertising — including programmatically — for quite some time now and it makes perfect sense strategically for them to do so,” said Gill Hind, director of TV at Enders Analysis. “While one of Netflix’s major USPs was the lack of advertising versus the competition, for any sports business the USP is clearly the sports rights they have.”
The question would be how much supply DAZN can offer, she continued. “Their DAZN’s] distribution agreements with pay-TV platforms (Sky in the UK) help address that question and as they build up their rights then they are looking at a sizable opportunity.”
Rival and older social media companies, including YouTube and Instagram owner Meta, launched their short-form offerings in 2021. Joseph Teasdale, head of tech at Enders Analysis, said that because of the threat from TikTok, YouTube was “pushing Shorts in front of its billions of users, even at the expense of ad revenue. It’s a defensive move.”
Tom Harrington of Enders Analysis, a research firm, likens the approach to Amazon’s strategy in retail. The company began by selling its own products, before opening its marketplace to other traders. These days two-thirds of sales on Amazon.com are made by third parties, with Amazon taking a commission—a much higher-margin business than selling its own wares. Its aim is to be the same kind of “landlord” in video, believes Mr Harrington.
Karen Egan, analyst at research group Enders Analysis, said companies opting for identical price rises was “not an example of tacit collusion but rather the copying of a good idea” because none “wants to stand out as having higher increases, yet it is incredibly difficult to make slightly lower increases a point of differentiation”.
Still, the impact of the inflation plus 3.9 per cent model on operators’ performance is likely to remain marginal in the long term.
Enders Analysis forecasts that UK mobile operators’ revenue growth will slow from 7.5 per cent in the three months to June 2023 to 6 per cent over the full year and 3 per cent in 2024, with some customers set to re-sign at lower prices once contracts expire.