Enders Analysis today published a major report on the digital music sector, as part of its long term commitment to independent music industry analysis and research.

The music industry’s extraordinary recovery and digital transformation over the past 15 years has resulted in the establishment of a dynamic and competitive sector that provides a broad range of services to labels and artists in distributing recorded music.

This report explains that digital technologies have profoundly changed the music industry, and that the emergence of a large number of digital-first service providers (ALSPs) in a crowded and dynamic marketplace provides artists and labels with a myriad of choices. Those choices exist through a wide spectrum of offerings from many suppliers to meet the diverse needs of artists, labels and end-consumers. From “pipes only” products that provide an easy and direct path to access the large network of digital service providers (DSPs), through to broader service offerings, with matching breadth of service fees. Our analysis of the market shows high levels of competition, as well as innovation, making it easy and routine for artists and labels to switch providers to meet their needs.

BT’s recent protests against the very high “government-inflicted” costs in the UK versus other countries likely relate to business rates, which are already sky-high by European standards and set to rise further.

The business rates reform has some worthy aims in providing some permanent relief for shops and pubs, but at the expense of discouraging much-needed investment in utilities and telecoms by dramatically inflating the cost.

Telecoms business rates also discourage investment by being hard-to-predict, and are distortive between competitors with dramatic differences in unit costs, with these issues partially addressable through valuation reform.

At the International Broadcasting Convention (IBC) 2025, vendors and broadcasters showcased plenty of incremental improvements to production using AI—but the show also previewed significant future disruption to traditional production methods.

Distribution is a focus for innovation: Formula 1 demonstrates a compelling personalised product and delivery that takes superfans beyond what can be offered in a single broadcast.

Broadcasters are adapting to a rapidly changing technical landscape at a time of increased pressure on audience trust and the geopolitical climate.

The PSBs’ ability to fulfil their public service objectives is becoming compromised by declining TV audiences, mainly due to the rise of online platforms and the decline in funding levels.

Part of the solution lies in collaboration between the PSBs themselves, potentially through shared tech stacks across players.

Collaboration with third-party online platforms is also required. The Media Act is introducing prominence requirements for connected TVs, but extending this regulatory regime to video-sharing and AI platforms needs much more developed thought to clearly articulate its aims and begin to iron out its practical challenges.

Broadband market revenue dipped back into negative territory in Q2, due to pricing pressure on both existing and new customers.

CityFibre’s capital raise puts it in pole position for altnet consolidation, while TalkTalk’s will enable it to compete much more effectively in the retail space.

Fierce competition is likely to continue unless and until retail altnets do the rational thing and consolidate into a wholesale model.

Disney’s streaming business continues to grow meaningfully, now outpacing the somewhat predictable decline of its linear operation. Studios is always a highwire act, but it is currently the source of most of Disney’s uncertainty.

With subscription numbers quite flat and engagement likely subdued, in the US Disney is hoping that product improvements and sport will invigorate the relationship that users have with its services.

In the UK, the Disney+ and ITVX content swap arrangement is off to a slow start.

BT started its FY26 with robust financials. Revenue was slightly weak due to handsets and international, but EBITDA was slightly ahead of expectations, and operating metrics were strong.

The highlight was Openreach posting its lowest broadband line losses for over a year despite ongoing altnet pressure, and keeping revenue growth positive despite reduced inflationary price increases.

The altnet threat is still far from over, but it is encouraging that there are signs that it is beginning to wane as the sub-sector moves to a more rational wholesale model.

With no major men’s football tournament, ITV’s advertising revenue fell well short of a tough YoY comparison (-7%, £824 million) while Studios appears to be settling after a demanding last couple of years (+3%, £893 million)

ITVX is showing encouraging momentum—especially in terms of its usage profile—however, as a whole, ITV saw viewing share again decline, while losing another 600k regular-viewing households

This market demands proactivity—hence the announcement of collaboration between the three major sale houses, and further measures by ITV to target small to medium-sized businesses

CityFibre has announced that its long-awaited £1.5 to £2.3 billion financing round is finally agreed, with it now able to use this money to fund its remaining organic build, integrating acquisitions, and covering operating losses until it reaches cashflow breakeven.

This capital raise will not be the first of many across the altnet sector in our view, as CityFibre’s business model is unique, and now partially dependent on the struggles of others to encourage consolidation.

CityFibre now has all the pieces in place to accelerate consolidation of the altnet sector, which will ultimately benefit the whole sector in ending unsustainable retail altnet competition.

Fixing an allocation quirk at BT pushed UK broadband revenue back into growth in Q1, albeit a very modest 0.8%, thanks to continued altnet growth and a very weak underlying market.

Broadband pricing is dipping down overall, but there is not yet evidence of pricing cuts targeted in altnet areas, a massive missed opportunity in our view.

The market will remain under pressure in the short term, but in the longer term altnet pressure will fall under all realistic consolidation scenarios.