The UK's cultural industries remain the strongest in Europe and digital distribution is a strong vector for the globalisation of British culture

The international reach and reputation of UK news providers is unparalleled, with the BBC, the largest news provider globally, reaching half a billion users weekly

Independent commissioning drives a dynamic ecosystem of TV exports with global clout—worth an estimated £3.4 billion—that remains stable despite Brexit

The Times and the Sunday Times have posted a record operating profit of £44.7 million, the highest (in nominal terms) since 1990, doubling a strong 2020

All the Times’ online metrics are going in the right direction, partly reflecting a favourable news agenda, but also a renewed energy, imagination and working rhythm galvanised by a new team and structure                                            

Reader economies are gathering momentum, at least among the quality press, and there are also hopeful signals among local and magazine media. Signs of reader subscription fatigue are supply-side rather than demand-driven—publishers should double down on their mission and purpose

Sky’s performance across 2021 significantly improved, driven in Q4 by a nice c.5% growth rate in UK consumer revenues and the advertising rebound, but effects of the pandemic are still being felt with EBITDA down 30% on 2019.

The decline in Group revenue accelerated in Q4 due to the severe shock to the Italian operation from its loss of most premium football coverage, although we see upsides in a possible rights reshuffle.

In 2022, Sky can leverage growth vectors including bigger content bundles, Glass, advertising innovations and broadband. Consolidating SVOD and telecoms markets may be more favourable to price increases.

Microsoft’s acquisition of Activision Blizzard is industry transforming—accelerating the momentum toward global subscription gaming across all devices and becoming an entertainment IP powerhouse.

Activision’s ‘toxic culture’ distress was acute and couldn’t be solved—Microsoft will (and should) clean up a tarnished organisation. The troubles had hammered Activision’s share price, allowing Microsoft to pick up world-class IP at a bargain relative to year-ago prices.

Sony faces a harsh reckoning on its long-term strategy for PlayStation, while EA and Ubisoft have become desirable acquisition targets.

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

2013 has seen yet another year of strong growth in consumer adoption of mobile devices and screens adding to the challenges facing traditional media. Press and radio have long been affected, but television is now starting to feel the heat

BT and Sky’s contest for premium pay-TV sports rights has intensified. August saw the launch of BT Sport, while BT’s acquisition of the European football rights in November was a clear statement of intent, spending half of Channel 4’s total programming budget on approx. 200 hours of content

The UK has seen buoyant advertising growth of around 4% in 2013, with similar growth expected in 2014, in the context of the strongest economic recovery in Europe

On 30 October, two days after criminal trials for alleged phone hacking begin, the Privy Council will finally seal a Royal Charter to set up regulation of the press. The end of this drawn-out process might be thought near

Several major publishers are planning to boycott the system by setting up their own regulator, which will not meet the Charter’s standards. In recent days, Conservative ministers have said the press is ‘free’ to take that route

The Recognition Panel set up by Parliament’s Royal Charter may not report on the system’s success or (more likely) failure until the autumn after the 2015 election. Whether to have a showdown with publishers who reject the Royal Charter is a decision being put off by everyone

Press display advertising fell 10% in 2012, and we forecast a slower decline this year (about 7%), as press benefits from the deluge of telecoms advertiser spend and the ongoing commitment of retailers to national newspapers and fashion and beauty brands to leading magazine

But structural factors are gathering pace relentlessly: circulation decline is accelerating in some categories and rate cards remain under pressure. Some smaller newspapers and poorly differentiated magazines face the possibility of an existential crisis in the next five years

Publishers able to embrace creative marketing solutions from an integrated digital and print platform will stimulate a more sustainable model in the medium term – but this requires a more radical rethink than is commonly assumed

The Competition Commission has provisionally decided that local (but not national) advertisers will suffer if the Global/GMG radio merger is passed and its suggested remedies are for Global to divest stations outside London and the West Midlands or simply unravel the whole transaction.

If these provisional findings are confirmed in May 2013, Global will find itself in the unenviable position of looking for a purchaser or more of radio assets, since the transaction was finalised in June 2012.

Although the Competition Commission is likely to prefer a single buyer of the portfolio to minimize the purchaser’s risk, it may be content with a carve up of the GMG stations, in which case we see Bauer Media as being a strong contender for stations out-with its current footprint.

Press advertising performed worse than we expected in 2012, with double digit declines both last year and this year now a very real possibility.

Previously resilient areas of the press have weakened. Popular national titles have seen sharp advertising declines, while faltering circulation in celebrity magazines exposes an underlying decline in demand.

Retail and services advertisers continue to pull spend from print, largely in favour of online, though TV is also very resilient. Industry efforts to offset these structural shifts include the development of trading platforms, further consolidation and a number of commercial editorial tactics.