A subscription funding model would be antithetical to the BBC’s public service mission, necessarily ending universality of access and undermining its breadth of content. 

Options like separating out “public service” content from other programming would result in a decline in news consumption, while the subscription model would risk sustainability and encourage short-term thinking. 

Further, there are technical roadblocks to executing this model, meaning that it is not feasible until long after the end of the current Charter in 2027.

Both subscriber and ARPU growth are showing clear signs that they are topping out. We expect increasing volatility in both metrics moving forward as low-ARPU subscriber additions tug against price hikes and churn-cycling in wealthier regions 

Many of the studios’ streamers are now flirting with profitability thanks to cost-cutting efforts, while cord-cutting only seems to be accelerating 

Almost 50% of streamer sign-ups are opting for the ad-tier. However, it will be some time before ad-tiers become a ‘meaningful’ revenue stream

Off the back of the Euros, ITV’s advertising revenue grew in H1 (+10% to £889 million) but this was not enough to balance a drop in Studios revenue, which declined 13% (to £869 million), hit by phasing and a tough market

Nonetheless, profits were up on a very tough 2023, with group adjusted EBITA rising 40% to £213 million, as cost-cutting proved successful—total costs were down 7% YoY

ITVX is moving from its launch phase to one of consolidation, with a changing approach to content release and an increasingly nuanced relationship with its array of users

Q1 was always going to be tough for Vodafone with lower in-contract price increases a very significant drag on performance (across the sector), TV losses in Germany ramping up, and ongoing struggles to turn around broadband performance there. A deterioration in German mobile is an unwelcome addition.

Encouragingly, Vodafone continues to optimise its portfolio and is guiding to a U-shaped recovery, with Q2 particularly weak and B2B driving a better 2H.

While there are particular headwinds this year and tailwinds next which point to an improving outlook, better operational performance remains critical to the company's future, and we continue to await evidence of this.

Recently many countries, particularly in Europe, have moved away from funding their public service broadcasters via a licence fee.

Three main models have been adopted in its place: a state grant system, a ring-fenced income tax, and a premises levy—nowhere has chosen to fund PSBs solely by subscription or advertising.

Outcomes vary: Germany shows that a successful transition relies on years of deliberation and consensus, whilst Italy and France underline the perils of insecure funding arrangements.

On 4 June 2024, Enders Analysis co-hosted the annual Media and Telecoms 2024 & Beyond Conference with Deloitte, sponsored by Barclays, Salesforce, Financial Times, and Adobe.

With over 580 attendees and over 40 speakers from the TMT sector, including leading executives and industry experts, the conference focused on how new technologies, regulation, and infrastructure will impact the future of the industry.

This is the edited transcript of Session Two, covering: Sky’s strategy; audience engagement with sport; the role of AI in journalism; and Amazon’s UK business and philanthropy. Videos of the presentations are available on the conference website.

On 4 June 2024, Enders Analysis co-hosted the annual Media and Telecoms 2024 & Beyond Conference with Deloitte, sponsored by Barclays, Financial Times, Salesforce and Adobe. 

With over 580 attendees and over 40 speakers from the TMT sector, including leading executives, policy leaders, and industry experts, the conference focused on how new technologies, regulation and infrastructure will impact the future of the industry. 

This is the edited transcript of Session Three, covering: consolidation in the telecoms sector; fixed-mobile convergence; and the future of the fibre industry. Videos of the presentations are available on the conference website.

On 4 June 2024, Enders Analysis co-hosted the annual Media and Telecoms 2024 & Beyond Conference with Deloitte, sponsored by Barclays, Salesforce, the Financial Times, and Adobe.

With over 580 attendees and over 40 speakers from the TMT sector, including leading executives and industry experts, the conference focused on how new technologies, regulation and infrastructure will impact the future of the industry.

This is the edited transcript of Session One, covering: the evolution of streaming models, and public service broadcasting in the digital age. Videos of the presentations will be available on the conference website.

The BBC plans to launch four new digital music stations as extensions of Radio 1, Radio 2 and Radio 3 and enhance 5 Sports Extra, all subject to regulatory approval.

Commercial radio is flourishing due to continuous innovation, while in stark contrast the BBC has experienced large audience losses, especially among the young.

The BBC should be able to launch new services— subject to competition assessments—while Ofcom should consider the impact of the total station regardless of whether delivery is broadcast or online.