Since its creation in 2005, GCap Media has singularly failed to deliver its shareholders either a return on their investment or a coherent, strategic vision of its future, rendering the company increasingly vulnerable to takeover

Our last report of the year 2004 covers device and network convergence – a recently resurgent growth story for media, telecommunications and consumer electronics companies. But does it represent any more of a reality, threat or opportunity than before?

H3G has made great strides this year, but these have mainly been in terms of reported subscribers and market perception rather than in fundamental terms. In this report we examine in depth both its global business model and the all-important funding available in order to assess the likely future for the business, and its subsequent impact on the GSM operators.

France's Ligue de football professionnel (LFP) will reveal the outcome of its first assessment of bids for broadcast rights to 380 first division football events and highlights for the seasons 2005-2008 on this coming 10th of December. The 2004 auction picks up the thread of the 2002 auction, 'won' by Canal+ by offering an exclusivity premium, but whose outcome was annulled following a complaint by rival TPS. Broadcast rights, first split between Canal+ and TPS in 1999, have simply been carried over.

The experience in France of local loop unbundling (LLU) could be indicative of LLU in the UK. About 20% of France's 6 million DSL connections will be unbundled by Q4 2004 (just 4.5% of all lines), and the LLU share of DSL connections could climb to 50% by the end of 2006.

Vodafone this week announced its formal 3G launch to great fanfare, with new handsets, services and pricing. This brief note gives our view on the launch and likely impact in Europe and Japan.

TV-over-DSL has been pioneered in the UK by HomeChoice and Kingston Interactive Television (KIT), but their combined customer base is only about 15,000. ISPs and telcos are considering TV as a potential extra application for the local networks they intend to build in urban areas by unbundling local loops. We define TV-over-DSL as the multicast distribution of conventional free-to-air (FTA), subscription and PPV channels over the copper wire to the TV set. Unicast on demand video (VoD) services is the subject of a forthcoming report because its characteristics and market context are entirely different.

The BSkyB change of strategy announced last August by James Murdoch has claimed its first victim according to this report: the company's own original target of 30% operating margin by FY 2006/07. That leaves the company with just two of its core targets: £400 ARPU and 8 million subscribers by the end of 2005. Meanwhile, the profit target has been replaced by the long-term growth target of 10 million Sky Digital subs by 2010, over 25% with Sky+ boxes and more than 30% with multiroom subs.

NTL’s successful reshaping of its balance sheet over the last two years since it emerged from Chapter 11 has meant that the company is now a reliable future generator of cash. Management disciplines have improved substantially. Unsurprisingly, the company would therefore also like to be considered as a growth stock.

Our annual assessment of the global recorded music market highlights the key drivers of the market's development – competition for the consumer wallet from mobile telephony, video games, DVD sales and live performances, as well as piracy.