UK 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.
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The UK charity sector’s role in sustaining the fabric of communities is increasingly important as poverty spreads during the worst cost-of living crisis since the 1970s, at the same time as donations are weaker and costs are rising.
Media play a crucial role in raising the awareness, engagement and donations to charities by individuals, the bedrock of income. Selected case studies of TV, radio and the press show how charities leverage their unique qualities to engage audiences across the UK.
We highlight Gordon Brown’s landmark anti-poverty community-based Multibank initiative, which gifts essentials to those most in need, and has vital support from Sky, the Financial Times and News UK.
IFPI reports trade revenues from streaming rose 10% in 2023 to reach $19.3 billion, and we estimate Spotify contributed about $7 billion. Spotify also rewarded music publishers with about $2 billion in royalties.
Spotify’s Loud & Clear data on royalties paid to the 225,000 professional and aspiring artists served to its 600 million users reveals a bulge in the middle part of the distribution in favour of Spanish language artists as the service expands in Latin America.
The top 1,000 earners are mainly artists at the top of the charts in the US and UK markets, which together contribute half of Spotify’s revenues and thus royalties. Top earner and top all-time streamed artist Taylor Swift earned over $100 million in 2023.
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Public service broadcasters are in a position to plan for the long term with commercial licences renewed for ten years, an updated prominence regime via the Media Bill and a government broadly supportive of the BBC.
With the Premier League and EFL rights secure to the end of the decade, Sky can plan for the future from a position of strength.
Relationships between Sky and the PSBs have improved markedly recently, and as all can now plan for the long-term, this should provide further opportunities to cement relationships for the benefit of the broadcasting ecosystem and viewers.
Online retail is a prime arena for AI implementation, with a high degree of tech involvement and proximity to the point of sale
Generative AI’s near-term prospects are inflated by the hype cycle; instead, improvements to product discovery and logistics will be the next frontiers for growth and AI-driven efficiency
Retailers risk their reputations as they jostle for early mover advantage: larger players Amazon and Shopify through major investments, and SMEs with specialised data and licensing
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Traditional local media are seen by an impressive 40 million people a month, a popularity we normally associate with tech platforms, albeit consumer spend, time spent and advertising yield are low, but growing
Encouraging market innovations are sending a strong signal and building industry confidence. New foundations for consumer relevance and growth are being meticulously crafted
A sustainable future will require publisher collaboration and a support framework from government, technology gatekeepers, investors and the public itself to accelerate momentum—with a prize not just for financial stakeholders but for citizens and the functioning of democracy
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Recorded music streaming revenues rose 11% in 2022 and we estimate Spotify’s contribution at 1/3—Spotify added 25 million Premium Subscribers in 2022, growing its recording and publishing payouts to the music industry to $8-9 billion.
Spotify’s Loud & Clear resource shows that the long tail of artists generating royalties between $1,000 and $10,000, of which many are self-distributing, rose 16% to 175,500—75% of all those generating over $1,000.
Spotify’s open platform for uploads grew the long tail to over 100 million tracks in 2022. Major labels are seeking to change the pro rata royalty payout model on Premium to address the siphoning of royalties by fake music, clips and bots—a looming threat to creators is AI-generated music.
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Consumer tech revenue growth ground to a halt by the end of 2022.
Changes in technology and user behaviour are creating risks for incumbents.
Shareholder pressure is driving efficiencies, but high costs are an inevitable response to growing challenges.
Spotify’s strategy to invest massively in podcasts weighed on its costs and chewed up its operating profits, a bad combination that led CEO Daniel Ek to admit he 'got a little carried away'.
Spotify's podcast investment did not deliver the benefit of reduced music licensing costs on the premium tier.
Podcast investments in North America have not materially altered Spotify's slower post-pandemic subscriber growth in that geography, and do not travel outside their home country as readily as music.
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A combination of factors drove the worst quarter ever for big tech growth, though the secular shift online of the economy and society will continue.
Advertising demand is down, reflected in lower prices. Ads did better the closer they are to transactions, with variability by category.
Efficiencies and AI are the investor-soothing buzzwords going into 2023.
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