The concept of demerging Sky News is evidently a plausible one and we consider it very unlikely that critics of the deal will have much success undermining its appropriateness as a protection of plurality

However, it is harder to judge whether the proposed implementation secures the channel’s independence as fully and clearly as it might

We outline a series of issues that the information supplied for the public consultation does not appear to deal with. We note, in particular, that the proposed undertakings seem not to block Rupert Murdoch, or members of his family, from buying the 60.9% of the shares in Sky News not to be held by News Corp

In this short presentation we show our analysis of trends in UK broadband and telephony to December 2010, based on the published results of the major service providers. We include our own estimates where reported data is incomplete. This quarter’s edition includes a look at Ofcom’s recent research into broadband speeds and its response to the Advertising Standards Authority’s review of broadband advertising.

The year ended on a strong note, as Sky broke passed its milestone of ten million homes and achieved yet another record breaking quarter for multi-product take-up

Home communications once more achieved exceptional growth, with triple play penetration jumping from 18% to 24%, while HD take-up resumed strong momentum after halving in Q1 2011

Financially, the company has never looked in better shape, with good prospects for continuing strong multi-product growth, leaving the question of where Sky will choose to invest next to drive further revenue growth

Jeremy Hunt announced on 25 January his intention to refer News Corp’s bid for BSkyB to the Competition Commission

However, he is first providing News Corp with the opportunity to address Ofcom’s concerns, and in so doing protecting his department and Ofcom from any legal threats

If Ofcom or the OFT say the News Corp remedies don’t go far enough, Jeremy Hunt will be then almost obliged to refer the transaction to the CC

With the completion of digital switchover still on track for mid 2012, stabilisation of the main digital broadcast platforms is expected, with roughly equal numbers of subscription pay-TV and free TV homes, though with marked differences between the platforms in terms of demographic composition and the proportion of pay-TV customers

Further marked differences exist between the satellite, cable and terrestrial platforms with regard to PVR adoption, notably higher in pay-TV households where distribution can benefit from box subsidies and greater product consistency. National PVR penetration of TV homes is expected to grow from slightly below 50% in 2010 to over 70% in 2015

As DSO nears completion, the stage is set for broadband connectivity. Although household penetration of internet-enabled TV devices is expected to exceed 50% by 2015, the emergence of hybrid broadcast and broadband services is expected to proceed much more slowly, limited by a number of factors – not least the ability of service providers to monetise their non-linear on demand offerings

Sky Songs will shutter on 7 February 2011, ending a brand extension experiment that probably cost parent BSkyB some £5 million end-to-end

A PC-based ad-free subscription service, Sky Songs failed to offer the mobility and exclusive content that music fans are most willing to pay for

Spotify’s reported 750,000 European customers as of November 2010 have moved the subscription side closer to breakeven, while the ad-supported side bleeds on

In this short presentation we show our analysis of trends in UK broadband and telephony to September 2010, based on the published results of the major service providers and Ofcom telephony data. We include our own estimates where reported data is incomplete. This quarter’s edition includes a revision to some historical trends resulting from our own interpretation of BT’s recent adjustment to the volume of unbundled lines.

Highlights in the quarter included exceptionally strong growth in broadband net additions at Sky and the resumption of the long term rate of decline in broadband market growth by volume.

A large gap has opened up between the different platforms in the five years since HD launched in the UK, with the pay-TV platforms – above all Sky – gaining a large lead over the free-to-air satellite and terrestrial platforms

With HD Ready TV sets now counting for almost half the total population of TV sets in the UK, the big issue facing the free-to-air platforms is the number of channels, where Sky (now 52 HD channels) and Virgin Media (now 28 HD channels) are expanding their lead over the free-to-air platforms Freeview (now 4 channels) and Freesat (now 3 channels)

Freeview in particular offers no clear evolutionary pathway beyond five channels in the next five years, except through acquisition of more capacity in the coming spectrum auction, where the outcome is very uncertain or via streamed high capacity broadband, which faces significant challenges in building penetration

This report on Sky Italia and Sky Deutschland, News Corporation’s Continental Europe pay-TV assets, complements our coverage of BSkyB in the UK. We look at the market environment, including regulation and competition. The report also provides subscriber, revenue and earnings forecasts and SWOT analysis.

VMed’s Q3 results showed continuing strength in the face of heavy marketing by BT Retail and BSkyB, although cable churn increased significantly

There are plenty of further challenges on the horizon, including a downturn in consumer confidence and later, the launch of YouView and wider deployment by BT of next generation access

The broad based nature of the company’s growth and its plans for further product development in TV and broadband continue to give us confidence in the potential for further growth in cash flow, albeit at a more modest pace