YouTube remains the dominant online video site globally, although competition for the viewer is growing from OTT video and other popular apps. Reach and consumption appear to be slowing in the US and the UK, but YouTube reports strong growth in global watch time as smartphone adoption proceeds

The number and variety of Multi-Channel Networks (MCNs) on YouTube continues to grow. Music video MCN Vevo has so far been the largest single presence on YouTube, but it is being overtaken by the combined Disney/Maker Studios MCN 

In contrast to the aggregator MCNs with tens of thousands of channels, studio MCNs have much smaller network sizes and a higher share of owned channels. Their focus on content curation and creation has allowed some to build global audiences of repeat viewers, a unique strength and of significant appeal for advertisers

Consumer expenditure on recorded music continued its decline in 2014 by about 6% to $18 billion, as purchasing of download-to-own (DTO) albums and singles passed its peak in 2013, adding to the ongoing decline in total sales of CDs that started a decade ago Streaming is now the only growth story left for the industry, and it has a global footprint, being embraced by developed and emerging markets alike, unlike purchasing The US phenomenon of rapidly rising revenues from ad-supported audio streaming services such as Pandora and music video streaming on YouTube is quite unique as other markets currently lack the potential for online advertising

News has entered a new phase, defined by the disruptive forces of mobile, social media and video, effecting rapid changes in consumption and the underlying economics for news businesses: the level of change and innovation is rewiring the structure and financial models for news more quickly than many news providers are able to respond. While charging for news looks to be a successful route for some brands, we note that the scale of charging for the industry is substantially smaller than in print. Apart from this, three models are gathering traction: selling audience engagement; selling news services; and selling news to businesses. Each of these options involves very different strategies and opposing objectives which can only be pursued at the same time by those with the deepest pockets. Everyone else has to choose.

The Consumer Electronics Show in Las Vegas revealed the ‘next big thing’ for consumers to be products embodying the Internet of Things (IoT), controlled from the smartphone or the vehicle Wearables like fitness bracelets are already selling well in the UK, amongst the largest per capita markets for consumer electronics, and next up is the launch of Apple’s smartwatch Building out the smart home is the focus of the current wave of devices imbedded with sensors on show at CES 2015, with apps developed on platforms supplied by Samsung, Google and Apple

The iPhone 6 and 6 Plus drove Apple’s most extraordinary quarter ever, with the company’s position in the smartphone market improving on all fronts: explosive growth in China, rising market share in the US and a rising average sales price.

By contrast, iPad sales continued to decline in spite of the iPad Air 2’s release, suffering from cannibalisation by the phablet-sized 6 Plus and saturation in developed markets. Apple has a strategy to revive sales, which may bear fruit later in the year.

A slate of new products is coming this year, led in the spring by Apple Watch. The question is, will Watch be a significant new source of profit or just a way to protect the iPhone’s dominant position in the smartphone market.

On 29 November, the Leveson Inquiry into the culture, practices and ethics of the press finally issued its report. Its verdicts on the conduct of the press, politicians and police were less severe than expected.

The three main political parties have accepted most of the report’s recommendations, but have disagreed over the use of statute. As expected, the Conservatives are against, while Labour and the Lib Dems are in favour.

Subsequent cross-party talks and negotiations between editors have so far failed to produce agreement, with the process only becoming more opaque as time goes on. The shape of the future regulatory system remains uncertain.

This report explores and quantifies expenditure in the local media landscape. Flat disposable income and the rise in e-commerce continue to force many retailers from the high street, though we argue first-rate small and medium enterprises (SMEs) have the opportunity to grow share of the local market, despite these pressures

Technology has radically disrupted the way local businesses reach out to consumers. Not only has advertising expenditure moved online, but SME spend is dissipating into other activities, including distribution and platform developments, PR, social and sponsorship activities and live events

The rise of smartphones has created the tantalising prospect of a perfect local media solution. We assess the level of opportunity for Google, Facebook, Hibu, local newspapers, local radio, local TV and hyperlocal organisations

In Q3 the ‘big four’ US mobile operators sold 22.6m phones to retail contract customers (90% of the market): 80% were smartphones and 41% were iPhones The iPhone has had close to 50% of US smartphone sales every quarter since December 2011, when Sprint began selling the iPhone, and shows no sign of weakness US iPhone sales are supported by a market pricing structure that masks the iPhone’s price premium

After selling 100m iPads in 10 quarters, Apple has entered the ‘smaller, cheaper’ tablet market with the $329 (£269) iPad mini. This is well above the $200 (£159) point hit by Amazon and Google, who are selling at cost, but we expect ecosystem and design to make it a bestseller

Tablets are still in price discovery: the iPad’s US ASP has fallen from $610 to $505 since launch while Google and Amazon have found a market for smaller devices at $200. Apple is moving to extend its dominance and prevent competitors building a bridgehead in a new sub-segment

We expect further record sales of tablets at the new lower price points over Christmas, accelerating cannibalisation of the desktop web and print by tablets and apps, which take the web to the train, sofa and kitchen table

Google’s income in Q3 was hit by fx headwinds and a rise in traffic acquisition costs (TAC) for its ad business as well as by higher than expected losses at Motorola

Headline growth in gross advertising revenue continued to slide, primarily due to the effect of the strong dollar; of more concern, rising TAC cut gross margin by 3 ppts

Mobile now accounts for the majority of growth in ad revenue, which should improve as mobile ad yields rise, though net margin could decline if Google has to pay out a greater share to partners such as Apple