The transition from linear to digital and on-demand usage has the potential to unravel national television ecosystems. Global tech monopolists may eventually control the interface and content discovery paths, pushing European providers down the supply chain.

Maintaining cultural sovereignty over the industry’s architecture is a prerequisite of a thriving, pluralistic ‘electronic public square’, as well as a high performing and locally-relevant creative economy.

Only consolidated commercial broadcasters have sufficient scale to steer national markets towards digital models where European content providers retain prominence and their ability to set the popular cultural agenda. 

TF1, France’s leading free-to-air (FTA) terrestrial broadcaster, has repositioned its channel assets in order to better exploit rapid growth of digital TV, now taken by 44% of households

International subsidiaries continue to perform solidly 

C&W UK’s new Chairman John Pluthero’s turnaround strategy involves shedding 27,000 business customers and focusing on 800 of the largest accounts

Viability is a major concern. Although the Freeview channels and much of the on-demand content will be free, subscriber acquisition costs probably will exceed £200, while per subscriber on-demand revenues are unlikely to amount to much more than £1 or £2 per month 

C&W UK has warned of a sharp drop in organic EBITDA for C&W UK in 2006/07

The main underlying culprit was churn; as we predicted, this has risen as the subscriber base matures, choking off subscriber growth and increasing costs 

This report examines the medium-term prospects for Cable & Wireless. In 2003, analysts sensed a new dawn for C&W following the arrival of new management and the company's exit from the US.