Netflix audiences gravitate towards lean-back, family films and comedies, marking a notable contrast with the kinds of TV shows which get the most viewing.
Films and TV are watched differently on Netflix: films draw more repeat viewing, are more of a communal experience and are highly sought after on weekends.
This explains why Netflix—even without a consistent, broad theatrical strategy—invests heavily in film: it brings in a discrete audience and boosts engagement for most viewers.
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
Streaming fell back into the red again, although with further price hikes on the way—along with "modest" Disney+ subscriber growth—next quarter should see the beginning of a profitable trajectory
In the UK, Disney+ continues to grow engagement—if not necessarily subscriptions—however, we still await a boost from local scripted originals
While the performance of Disney's core segments appears to be stabilising, 2024 remains a year of unfinished projects
Netflix saw revenue grow 17% YoY (to $9.6 billion) in Q2 with margin continuing to stay healthy at 27%, approaching the levels of legacy media. It appears that the immediate revenue benefits of 'paid sharing' are now dissipating but any shift in perception around paying for the service will continue as a positive
In the UK, older viewers continue to drive viewing growth on the service—they will increasingly dictate whether something is a hit
Despite Netflix's perennial narrative of amplifying the effectiveness of foreign-language programming, English-language content continues to travel better than anything else
Netflix doesn’t think about its audience in terms of traditional demographics, instead it aligns them with ‘taste clusters’, which are formed by thousands of metadata tags on its programmes.
We have replicated Netflix’s approach to content analysis: layering its ‘mood tag’ and genre metadata with viewing data to identify what makes a Netflix hit.
Suspenseful, dark scripted dramas perform best globally, licensed high-volume sitcoms drive viewing in the UK, while unscripted TV has thus far underperformed.
Amazon is challenging online bargain competitors head on by launching its own direct-from-China sales channel, in a strategic reversal that aims to expand its audiences and competitiveness by segmenting product sales
Direct-from-China removes the competitive advantages of Amazon fulfilment and Prime to create a two-tiered Amazon for ultra-low-cost goods, making core fulfilment more efficient and providing advertising opportunities
The new product aims to grow Amazon's reach and relevance to non-Prime audiences, adding value across the Amazon ecosystem: offering efficiency for sellers and lower prices for consumers
Retail media, a ‘new’ form of advertising, is growing the overall advertising market with a highly personalisable and attributable offering, as other targeting mechanisms are threatened by the deprecation of third-party cookies.
Omnichannel retailers are ramping up third-party ad sales to boost margins, alongside less visible but significant growth opportunities for sales of first-party customer data for ad targeting elsewhere.
Long led by Amazon in the UK, the retail media is now shifting the broader advertising ecosystem: competition and innovation are rising as retailers seize growth opportunities, with incumbents threatened by disintermediation.
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 Four, covering: artificial intelligence, the new phase of online advertising, and closing remarks. 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, 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.