As younger viewers continue to migrate from linear TV to online video-sharing platforms, engaging with the audiences on these platforms is no longer simply an opportunity, but a necessity.

However, this ecosystem offers broadcasters limited monetisation opportunities, reduced audience data and worse attribution than the more lucrative broadcast TV model.

In this fragmented media landscape, broadcasters must maximise their digital reach and exploit incremental revenue opportunities, although linear channels and owned-and-operated platforms will continue to provide the bulk of revenues.

The EU's approval of the Microsoft acquisition of Activision Blizzard enforces expansive pro-consumer remedies that are in stark contrast to the 'hard no' CMA decision in the UK.

Cloud gaming remains the wedge issue in a global standoff amongst regulators over reining in Microsoft and other big gaming platforms.

The overall deal is still in considerable, possibly terminal, trouble with the UK appeal and US lawsuit still to be resolved, and the FTC hearing due in August.

Recorded music streaming revenues rose 11% in 2022 and we estimate Spotify’s contribution at 1/3—Spotify added 25 million Premium Subscribers in 2022, growing its recording and publishing payouts to the music industry to $8-9 billion.

Spotify’s Loud & Clear resource shows that the long tail of artists generating royalties between $1,000 and $10,000, of which many are self-distributing, rose 16% to 175,500—75% of all those generating over $1,000.

Spotify’s open platform for uploads grew the long tail to over 100 million tracks in 2022. Major labels are seeking to change the pro rata royalty payout model on Premium to address the siphoning of royalties by fake music, clips and bots—a looming threat to creators is AI-generated music.

Spotify’s strategy to invest massively in podcasts weighed on its costs and chewed up its operating profits, a bad combination that led CEO Daniel Ek to admit he 'got a little carried away'.

Spotify's podcast investment did not deliver the benefit of reduced music licensing costs on the premium tier.

Podcast investments in North America have not materially altered Spotify's slower post-pandemic subscriber growth in that geography, and do not travel outside their home country as readily as music.

Podcasts are a small but growing medium, and global streamers and domestic audio players alike are investing heavily in podcast content, distribution and advertising technology.

The broadening choice and diversity of podcasts available has put discoverability, exclusives and personalisation at the heart of the race to become the number one destination for audio.

While the UK currently lags other markets in terms of advertising and monetisation, increasing financial viability coupled with
healthy listener demand suggests a bright future for the UK podcasting sector.

Advertising income has been the lifeblood of commercial TV for decades, but declining linear audiences—combined with digital video alternatives—mean the TV advertising model must evolve to ensure it remains as potent a medium for brands as ever.

Lack of effective audience measurement and somewhat opaque advertiser/agency/sales house relationships are hampering linear TV advertising revenues. Both issues need resolving to underpin a healthier ecosystem overall.

Flexibility is key to this evolution. A move to audience buys across most linear and BVOD inventory would provide greater flexibility and targeting for advertisers, and would sit alongside some premium context buys. A greater onus on volume deals would give broadcasters more certainty to invest in content and their advertising propositions.

Spotify paid $5 billion in royalties last year to the music industry. Critics claim the $0.0038 per-stream average royalty rate is too low. However, this is largely due to high volumes of ad-funded listening, a core part of Spotify’s freemium model, and a defence against piracy. 

To silence the critics, the “Spotify Loud & Clear” site presents data on the distribution of industry royalties, which are heavily skewed to established artists. Only the top 5% of artists generate annual industry royalties above $1,000, though they take home less under their deals. 

The remaining 95% of artists on Spotify generate under $1,000 a year and use the platform mainly to reach fans that attend live gigs, their primary source of income, now halted by the virus. These artists’ problem is digital discovery, as Spotify’s playlists push hits rather than the midlist. 

The pandemic has caused an unprecedented demand boom and revenue windfall for the games industry, allowing developers to ease production bottlenecks, assist remote working, and spend more cash on games that matter.

Producing quality game experiences remotely—from greenlight through to release—has driven innovation and flexibility, and much needed change for game studios.

Most large game developers expect a return to in-studio development late in Q3 2021. Many workers hope a return will not also bring back toxic game production environments.

The games industry enjoyed a robust 2020, with the pandemic creating high demand across titles and platforms. Now a core part of the mainstream media and entertainment ecosystem, games share of entertainment spend and audience viewing time will maintain momentum and increase in 2021.

The demand for, and value of, premium content has migrated to game IP, with top franchises driving increased M&A activity and tighter integration with film and TV output, and providing an important advertising channel.

The pandemic has provided breathing space for the industry on regulatory scrutiny of revenue models, and overall consumer safety. Regulators need to increase their speed in 2021, and act decisively on predatory ‘free-to-play’ game mechanisms.