Rising online ad prices mean customer acquisition costs have spiked for D2C businesses, which already had a higher marketing spend base than offline equivalents.

At the same time, the data used to target and measure online advertising—the key channel to find and convert customers—is being eroded.

There will be consolidation in the crowded D2C landscape, providing scale benefits. Sellers will also have to refocus their marketing attention on increasing customer lifetime value.

ITV met advertising expectations in Q1, matching the forecast 16% YoY increase in total ad revenue (TAR) (£468 million), while Studios (+23%, £458 million) bolted well above pre-pandemic levels. We assume, however, that Q1 was blessed in terms of the timing of programme deliveries

The amalgamation of ITV's three domestic digital services, ITVX, is on track to launch in Q4, with a bulked-up library, clearer strategy, and new features: perhaps arriving right on time to take on Netflix's ad-supported tier

The proposed Media Bill includes a couple of potential benefits for ITV, such as expanded prominence on connected devices and major online platforms, including on smart TVs, set-top boxes and streaming sticks, along with the possibility of a remit more aligned with the modern media landscape—however details around execution are currently lacking

The EU’s GDPR enforcers have ruled that IAB Europe’s framework for collecting user consent, a standard used by about 80% of sites on the continent, is in violation of the regulations

This is one of the clearest signs yet that regulation is starting to catch up with Apple and Google’s privacy push, as support for cookies and mobile ad IDs is due to end over the next few years

Publishers must prepare now by treating privacy as a core part of user experience and adopting a reader-first revenue model that also supports advertising in a trusted environment

Meta presented mixed results against low expectations, with its ad business a concern in the age of privacy.

Reels is at the core of the company’s strategy to win users given heightened competition, but its monetisation challenge persists.

Meta spent $3.7 billion on its metaverse gamble in the quarter. A higher-end device will help address strengthening enterprise demand for VR headsets, but the route to profitability remains unclear.

Alphabet’s growth slowed in Q1, but search remains the premier advertising product: protected against privacy changes, and poised to grow on a return to travel.

Investors focused on YouTube’s disappointing growth. Its exposure to brand advertising has slowed it relative to search, and it now has to compete with an increasingly formidable TikTok. User subscriptions could be a hidden strength.

The US remains the core of Alphabet’s business as uncertainty and energy price jumps hit Europe.

Netflix dramatically missed its quarterly guidance of +2.5 million subscribers in Q1, losing 200k net subs globally (although that includes 700k lost due to pulling out of Russia). Q2 is forecast to see a further net loss of 2 million (of a worldwide total of 222 million), the causes of which will also hit Netflix’s competitors.

Netflix prices continue to rise, with the Standard tier now eclipsing £10 per month. However, despite the current strain on household finances the streamer can still be confident that it can charge more without material consequence—video remains cheap compared with the past, and more time spent at home will lift Netflix's value to subscribers.

The upcoming clampdown on password sharing will aim to dismantle the 'culture of free' that currently surrounds the brand. However, we foresee that the company can only target the low-hanging fruit, so as not to risk inflaming subscriber relations by tackling all behaviour outside the accepted Terms of Use.

Broadcast TV viewing resumed its downwards trajectory in 2021, following a pandemic-inflated boost in 2020. The effect has been compounded by streaming services retaining much of their lockdown gains, consolidating their place at the heart of people's viewing habits

Within the shrinking pie of broadcast TV viewing—still c.70% of total TV set use—the PSBs have held relatively steady, whilst Channel 5 has increased both its share and absolute volume of viewing

However, further decline seems inevitable, with the largest components of the programming landscape, namely longstanding formats and the soaps suffering badly since the beginning of the pandemic. We await the effect of various new scheduling strategies

It has been ten years since Netflix launched in the UK, initially riding the growing wave of internet video, but quickly raising viewer expectations of user experience, overall production quality and long-term availability of content—challenging the rest of the industry to keep up

Netflix’s push into original production transitioned streaming from pure catch-up or repositories of old favourites, to a vibrant entertainment option, driving the formation of an SVOD market and providing other content companies with a larger addressable base now familiar with paying for TV

The streamer has deftly navigated the path from insurgent to joining the same establishment that it radically inverted—through considerate industry participation and self-regulation—however further questions will inevitably be asked about the company’s growing influence upon Britain’s cultural fabric

Although Q4 net additions were on target and on par with past years, Netflix has forecast very low global subscriber growth for Q1 (2.5 million)—this would be the smallest number of additions in that quarter since the company launched a streaming-only plan over a decade ago

New US price rises will once again prove that consumers value the service and its content but, by stealth, SVOD is no longer 'cheap'

January 2022 is a decade since Netflix launched in the UK. The pace of the change in the local sector that it drives and rides is astounding, and while its efforts to embrace industry responsibility are noticeable, more will be continually asked of it

Ongoing supply difficulties for PlayStation and Xbox through 2022 and beyond will result in the install base for the generation being permanently impacted. It raises the question: if you can’t buy a console are they even relevant?

VR will stage a comeback this year, as Quest 2 has its highest sales ever, the category will find new appeal from game (and metaverse) developers. If a rumoured Apple VR/AR headset eventuates, expect white-hot interest

Netflix will make strides in its games service―but mostly behind the scenes to deliver a once in a decade transformation of the industry. Don’t rule out a critical and exclusive mobile hit