Germany’s RTL+ streaming platform has been revamped into an 'all-in-one' bundle of content including premium sports, music and audiobooks.
RTL wants to leverage its FTA reach to build an online subscription base large enough to influence the future shape of German TV.
To sustain subscriber growth we argue that RTL will need to release defining content and explore partnerships beyond its current deals with telcos.
Sony PlayStation’s next CEO will have hard decisions to make: compete against a resurgent multiplatform Microsoft, or retreat and defend an increasingly rickety PlayStation console model.
New gaming hardware will have an outsize influence in the year ahead, giving gamers unprecedented choice, starting with XR headsets and continuing to a likely new Nintendo Switch.
YouTube’s foray into browser-based games will be the service to watch in 2024. If successful, streaming services, including Netflix, will be on track to become heavyweight game platforms.
Netflix had its second-biggest quarter ever for net subscriber additions—up 13.1 million to 260 million, behind only Q1 2020—with the streamer's 'paid sharing' initiative the key factor. Meanwhile, Netflix's expansive deal with WWE moves it definitively into the live streaming market, although perhaps not yet sports
The universality of Netflix's non-English content is overstated but it did mitigate the reduced volume of new US content due to the strikes. With a continuing bleak US production outlook, this is not a card most competitors hold
Netflix's ad business is making gradual progress, with the streamer's suite of games now a target for further monetisation
Iliad has made an attractive offer for Vodafone Italy, to initially form a joint venture but to ultimately give Iliad the right to buy Vodafone's stake.
Vodafone management may be more keen on a less transformative, but easier, deal with Fastweb, retaining Vodafone's presence in Italy.
Iliad's announcement is likely aimed at highlighting to shareholders and the Vodafone board that a more value-creative deal is on the table, even if management appetite is not there for it just yet.
Metrics in Vodafone's Q3 results pointed in various directions with the main positive being revenue growth in Germany, but there were also concerning data points including continued subscriber decline there, and EBITDA across all of Europe.
The company reiterated its guidance for EBITDA and FCF for the year which looks achievable but a stretch. More importantly, these numbers exist only in theory with the Euro-based results looking set to be lower—with implications for the outlook and dividend cover.
Ridding the Group of its Spanish business, and possibly the Italian one too, will be helpful in delivering on the promise of growth, but whether it creates value for shareholders is another matter.
CEO Bob Iger has announced that Disney is now in a "building" phase—indicating that the strategic turnaround is complete—however, upcoming breakeven of streaming products owes much to cuts on programming spend
With the rest of Hulu soon to be acquired, Disney looks as if it is pulling out of India—this will make the company's presence outside of the US even more peripheral
In the UK, Disney+'s advertising-supported tier is now live, however, there are forces at play that limit Disney's ability to execute its tiering strategy as effectively as its biggest streaming competitor
Vodafone has struck a deal to sell its ailing Spanish business in a deal worth €5bn, equivalent to 5.3x EBITDAaL.
While the pragmatism of the move will be applauded, the valuation may be viewed as disappointing by some.
The deal removes an enduring drag on the company’s financials, providing scope for better European trends, but this is one of several challenges facing the company, with the dividend policy question now to the fore.
Unable to match Netflix, financially-pressed Hollywood studios are cutting content output and reassessing the DTC model
Price rises are being forced through, however for challengers this is asking a lot from subs, who don’t see an improvement in product or usage
The corporate landscape is fluid—loss-making DTC platforms and revenue-plunging linear channels are candidates for M&A
Paid sharing and "price optimisation" are returning clear benefits for Netflix, with healthy subscriber growth (+8.8 million, up to 247 million) and an 8% YoY increase in revenue ($8.5 billion) in Q3. However, success of the advertising tier remains slow
In the UK, Netflix is growing revenues and ARPU, and although it is now a challenge to grow the subscriber base, there is a clear and large group of non-paying users that are now being targeted
Netflix's per household engagement is materially higher than its direct competitors. However, this is plateauing and has implications for revenue levers such as advertising impacts and price rises
Service revenue growth almost doubled this quarter to 2.4% aided by price rises in the UK, Spain, and France, but remains well below inflation-levels.
The revenue boost from in-contract price rises will ultimately disappear as customers recontract, dampening the EBITDA outlook as costs continue to rise.
Operators are looking to other strategies to strengthen their positions, including edging up new-customer pricing, M&A, and attracting wholesale MVNO business.