A U-turn at the Competition Commission?
The CC seems to be preparing to reverse its provisional conclusion that Sky’s hold over premium movies is damaging competition
Recent reports
We analysed hundreds of ads on YouTube, the biggest online video platform. Direct response campaigns predominate, especially among finance, ecommerce and technology buyers.
YouTube on TV hosts more brand campaigns with unskippable >30-second ads. In the UK, YouTube viewing on the TV set will grow c.80% by 2030, changing the profile of YouTube advertising.
YouTube generates about 85% of its revenue from ads. We found it also guides user behaviour by ramping up ad load for logged-out users so that they log in.
Netflix Q3 2024: Strong trajectory but advertising drags ARPU
18 October 2024As Netflix transitions towards a reporting cadence that omits quarterly subscriber numbers, the focus is on revenue (+15% YoY, to $9.8 billion) and margin (+8ppts YoY, to 30%), which remain buoyant. The company has guided that 2025 revenues will be $43 to $44 billion (+$4 billion YoY), mostly due to subscriber growth
Netflix's advertising-supported tier is dragging its ARPU—however, given its important future growth role, we would expect it to start influencing the direction of the streamer's content slate
Despite its expansion into new genres, Netflix's UK viewing has further narrowed around drama and films: however, live sport, British formats and soaps could move the needle in the future
AI in the newsroom: Moving past risky efficiencies
10 October 2024UK news publishers are experimenting with generative AI to realise newsroom efficiencies. Different businesses see a different balance of risk and reward: some eager locals are already using it for newsgathering and content creation, while quality nationals hold back from reader-facing uses.
Publishers must protect the integrity of their content. Beyond hallucinations, overuse of generative AI carries the longer-term commercial and reputational risk of losing what makes a news product distinctive.
Far less certain is the role of generative AI in delivering the holy grail of higher revenues. New product offerings could be more of an opportunity for businesses that rely on subscribers than those that are ad-supported.