The UK government is exploring an exception to copyright law for text and data mining (TDM) for AI training, preserving opt-out for creative media.

Licensing needs a proper technical and regulatory infrastructure. Beyond AI training, how this will apply for up-to-date access, as in AI search enhancements, is still uncertain.

The EU has put in place some helpful standards but shortfalls in its practical effectiveness are a warning to the UK.

From the depths of 2023, advertising expenditure on legacy media rose moderately in 2024, on the back of an uptick in real private consumer expenditure thanks to lower inflation and reduced costs of credit—the outlook for legacy media is about the same for 2025.

Online stands apart from legacy media due to the growth of ecommerce—driven by both goods (over 26% of retail sales) and services such as travel, as well as intense competition among platforms (Amazon, Shein, Temu)—with double-digit growth in 2024 set to continue in 2025.

Television remains the most effective medium for brand advertisers—despite the decline in viewing—with broadcasters’ digital innovation and SVOD ad tiers providing greater targeting alongside the mass broadcast reach.

Vodafone’s Q2 performance was in line with the company’s guidance on almost every metric and was always going to be a tough one given the hit from TV losses in Germany and the annualisation of price increases there

The share price reaction (-6%) is likely a reflection of fears around Vodafone’s ability to improve underlying operational performance in Germany. Whilst this remains a valid concern, there is nothing in these results to amplify our worries on the issue

Escalating competitive pressure in German mobile is, however, a threat to the company’s growth outlook, and Vodafone’s promise to be “disciplined” in its approach to it may turn out to be too conservative a strategy

The Creative Industries (CI) are part of the UK’s emerging Industrial Strategy to power up output growth instead of relying mainly on consumer spend. Film & TV production is a prime example of a longstanding and successful industrial strategy that could be widely emulated.

Media’s contribution to economic growth is mainly in the form of a broad regional spread of skilled jobs created by a mixed ecosystem of commercial and not-for-profit entities, such as the BBC PSB Group and Channel 4, alongside 25,000 charities devoted to culture and recreation.

Media adds more than economic value to the UK by uniquely creating (unmeasurable) societal values through cultural products and services, anchoring a common language and identity at home, and conveying a vibrant and inspiring Britain to the world.
 

The spatial computing ecosystem is on the uptick with the wider availability of head mounted devices (HMD). Apple and Meta’s commitment to developing HMDs is existential to conquer the enormous technical hurdles these devices continue to face. 

Apple has chosen to maroon the Vision Pro with a lack of controllers and other design choices making it reliant on mostly passive entertainment. In total contrast, Meta’s deep engagement in gaming and 3D experiences showcases the potential for the HMD category.

Live sports is the outstanding use case for TV experiences on VR headsets, with exclusive NBA VR programming on Quest bringing new levels of immersion and presence, while gaming, and its developers, will still remain the dominant driver for VR and MR for the rest of the decade.

Sony PlayStation 5 and Microsoft Xbox unit sales crashed in the last quarter, despite promotional discounting. Neither company appears able to reverse a clear consumer shift away from fixed consoles. 

Nintendo Switch outsold Xbox and nearly matched PlayStation sales, even with the Switch 2 set to launch in 2025. 

A radical change in hardware strategy and leadership will be the best solution for Microsoft to demonstrate a growth narrative following its acquisition of Activision. Gamescom this month may provide more clues.

Q1 was always going to be tough for Vodafone with lower in-contract price increases a very significant drag on performance (across the sector), TV losses in Germany ramping up, and ongoing struggles to turn around broadband performance there. A deterioration in German mobile is an unwelcome addition.

Encouragingly, Vodafone continues to optimise its portfolio and is guiding to a U-shaped recovery, with Q2 particularly weak and B2B driving a better 2H.

While there are particular headwinds this year and tailwinds next which point to an improving outlook, better operational performance remains critical to the company's future, and we continue to await evidence of this.

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.

AI integration into production tools throughout media industries will deliver increased productivity for professional content creation. Generally available tools will also improve quality and production speed for individual user-creators.

Roadblocks include the uncertain copyright status of models and their outputs, attitudes of creative workers and consumers, and the AI tech underdelivering versus what was promised. The need to integrate new tools into existing processes is perhaps the biggest brake.

There are stark differences by sector: the opportunities are greatest in games, where costs have ballooned and software engineering is core. Marketing is furthest in exploiting AI, while audiovisual production is more cautious.

Recently many countries, particularly in Europe, have moved away from funding their public service broadcasters via a licence fee.

Three main models have been adopted in its place: a state grant system, a ring-fenced income tax, and a premises levy—nowhere has chosen to fund PSBs solely by subscription or advertising.

Outcomes vary: Germany shows that a successful transition relies on years of deliberation and consensus, whilst Italy and France underline the perils of insecure funding arrangements.