The UK broadcasting sector is undecided on how much to engage with a technology that could simultaneously threaten industry jobs, intellectual property, and competitive advantages. Some do not see themselves as in a position to take risks with AI, but the sector must consider the longer-term risks to inaction.

There is clear value to be unlocked along the production pipeline with AI, and unrealised opportunities for content owners to apply AI to their libraries and enhance discovery.

None in the industry can ignore how AI changes the wider competitive landscape: new AI services will provide audiences with alternative products, and disrupt distribution.

The centre of gravity for kids’ media has shifted. YouTube now captures around 44% of UK children’s viewing, with broadcasters adapting to stay relevant in an environment built around algorithmic discovery and constant replay.

Alongside the BBC, YouTube is one of the few spaces where education and entertainment intersect. Around a third of our sample of 5–8s YouTube Kids videos were educational, while older cohorts gravitate toward faster, creator-driven formats.

There remains a distinction between YouTube and broadcaster kids’ programmes: we found YouTube-native content twice as fast, and brighter, although the broadcast content that also runs on YouTube shows less disparity. Broadly, on YouTube, US-originated formats dominate.
 

Broadband market revenue continued to decline by 1% in Q3, thanks to stagnant broadband volumes and weak ARPU growth. 

Pricing is declining at 5-10% per annum as a modest retail altnet slowdown is countered by TalkTalk losses moderating, and competitive pressure remains intense.

Recovery looks very much dependent on the retail altnets consolidating into a more sustainable wholesale model

DMGT proposes to acquire Telegraph Media Group (TMG) after RedBird Capital pulled its bid. 

TMG has a pristine balance sheet and is ready to be sold by RedBird IMI for the reserve price of £500 million to DMGT.

Lacklustre results for the topline in 2024 are partly due to the lengthy period of limbo since May 2023, but EBITDA is steady at £61 million.

Big tech, even the US economy at large, is betting the house on AI. Some air might come out of the bubble, but AI investments’ trajectory will stay the course over the next 24 months.

UK national media and content creators face an acute challenge as they exploit global platforms’ ‘export’ opportunities, with AI’s ‘glocalisation’ potential a key new trend for future online video.

AI platforms could create an even tougher online media environment over the next few years. OpenAI’s spending plans are predicated on resetting how people shop, search and access entertainment.

DAZN is on track to reach profitability in 2026, the tenth year since its launch, supported by Foxtel’s full-year consolidation and the margin improvements already evident in its 2024 accounts.

Foxtel’s integration diversifies the group, with Australia becoming DAZN’s largest market by revenue.

Expansion in ancillary areas (betting, product developments) and the distribution of third-party services under revenue-sharing agreements complements DAZN’s rights’ ownership in key markets.

Comcast/Sky is in preliminary discussions to acquire ITV’s broadcast and streaming operations. With a larger audience footprint, better tech and a broader range of British content, the rationale is that the merged entity would be better placed to compete with global streaming giants.

The belief will be that the downward momentum of both parties will be slowed, and the offering is more likely to be a primary viewing choice. There is a danger that ITV may lose some of its unique identity.

The deal will need to clear regulatory hurdles including concerns on media plurality. The harder test will be convincing the CMA that the relevant advertising market is wider than just broadcasters.

BT’s financial performance in Q2 was much the same as the previous quarter, despite growing pressure on consumer and wholesale broadband from altnets and competitive responses to them.
 

We see this pressure easing in time, due to roll-out slowdowns and the inevitable consolidation of the altnet industry into a wholesale model, but there may be some tricky quarters ahead.
 

Current full year guidance looks nonetheless very achievable and sustained growth thereafter looks likely, with earlier rather than later consolidation good for BT as well as the altnets themselves.

Bids for the Champions League media rights from 2027 are expected by 18 November across all top five European markets.

In an attempt at injecting competitive tension, a new ‘global’ Tuesday first pick fixture is on offer. Amazon looks like the favourite bidder.

Incumbent rights licensees prioritise cost savings over coverage expansion.

The European Media Freedom Act (EMFA) sets out the best practices to ensure the independence of Public Service Media providers (PSMs), though it is toothless. 

PSMs play a unique democracy-sustaining role in the digital age by providing the population with balanced news coverage, thus combatting misinformation.

The UK’s BBC is the blueprint for the EMFA and the comparison with Czechia and France demonstrates how political forces challenge independence.