Canal+ is entering a critical phase of growth following the recent merger with its former rival Télévision Par Satellite (TPS). Vivendi has set short term guidance targets for 2010 of 11.5 million subscriptions, turnover above €5 billion and more than doubling of EBITA from €490 million to over €1 billion. This presentation examines these targets and concludes that Canal+ will fall short of all them. In the best case baseline scenario of least competition from other pay-TV and free-to-air (FTA) services, it projects EBITA in 2010 of just €890 million
The privatisation of the BBC’s two national music radio networks – Radio One and Radio Two – is in the news again and is being proposed by certain commentators as a potential solution to the current problems facing the UK commercial radio industry. This report argues that, far from being a solution, unleashing these two highly successful BBC stations on the commercial sector will imperil the existence of many stations. This would dramatically increase the volume of advertising time available, at a time of glut, and draw advertising spend away from many stations
International performance continued to be weak apart from Macau, although well within EBITDA guidance. Turnaround in Jamaica remains a significant challenge
The BBC-ITV Freesat venture, launched on 6th May, is the public service response to Sky’s free satellite service. Once fully up and running in 2009, Freesat aims to match Sky with 200 digital TV channels in standard definition (SD), and surpass Sky with extra channels in High Definition (HD), plus the facility to offer iPlayer and Kangaroo
Early figures from the BBC show promising take-up of iPlayer, its web TV application to deliver BBC TV shows. More than 2 million people watched an average of just over one show per week in January, representing about 1.6% of TV viewing amongst iPlayer users
Vodafone UK’s new broadband product is not very competitively priced compared to the offers from Carphone Warehouse and Orange, costing £5-10 a month more than the nearest equivalent packages
Orange UK’s converged mobile and broadband brands and ‘free’ broadband offer has not proved a big hit with consumers, with Orange reporting just 25,000 DSL net additions for the September quarter, likely to be below 5% market share
In a fit of pique over increasing subsidies, Vodafone UK is dropping Carphone Warehouse (CPW) as a distributor, and moving exclusively to Phones4U with lower subsidy levels and volume guarantees, while Orange is reportedly also considering its position with CPW
Spain’s top football club FC Barcelona (Barça) has threatened to withdraw its broadcast licence from Sogecable unless it matches an offer from Mediapro that is almost double the current annual fee for the two football seasons commencing 2006/2007
The present TV advertising slump appears due to a uniquely British combination of very rapid digital TV growth and singular advertising airtime regulations that include the Contract Rights Renewal (CRR) remedy
Orange’s new ‘free broadband’ offer brings savings of up to 60% for Orange UK customers who pay for broadband, and may appeal to a great many of them