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Public Service Broadcasting

Enders Analysis is a firm believer in strong public service broadcasting which boosts the entire UK creative industry and is consumed by almost everyone. We have published a report on Channel 4 relocation.  To download this report please click on the link below:

Channel 4: relocation and dislocation 

 

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  • Facebook
  • Google
  • Non-UK Media
  • Internet
  • Media
  • Technology
  • UK Media

Subscription fashion retailer Stitch Fix has gone public, revealing a rare example of a new, private, technology-based company capable of making a profit 

Stitch Fix relies on the ‘mixed intelligence’ of algorithms and human stylists to offer its customers a curated fashion “Fix” of clothing and accessories, aiming to cut through some of the chaos of ecommerce  

Though Stitch Fix’s success is not guaranteed, there is much to be learned from its approach of focusing on building a solid business and generating positive earnings early, rather than growing users at any cost

  • Sky Italia
  • Telecom Italia
  • Media
  • TV

Results of the league’s new call for tender for its 2018-21 broadcasting rights will be unveiled on 22 January. The platform-based packaging was reviewed after last year’s aborted auction, apparently to accommodate loss-making Mediaset Premium, the participation of which remains nevertheless uncertain

Sky could keep its current satellite and internet coverage without increasing its outlay. We expect no major Telecom Italia (TI) or GAFA bid

Serie A seeks an unrealistic €1.05 billion per year (up 24%). If the auction results fall short, it hopes to sell rights to financial investors or, in a last resort, to launch its own channel – both ideas smacking of recklessness

  • BT
  • Sky
  • Media
  • TV
  • UK Media

BT and Sky’s content cross-wholesaling deal much reduces their risks of losing packages in the upcoming Premier League auction, with most of the strategic platform value of exclusive sports rights now wiped out

The PL auction structure offers more games but less value, with the two smaller packages particularly unattractive, which cleverly nudges BT to retain a more expensive package, and thus most of its spending, if it wishes to downsize

While demand from all potential rights buyers appears weak, paying less money to retain the same position will be challenging for the incumbents Sky and BT given high minimum package prices, with courage necessary to force these minimums to be reassessed

  • Amazon
  • BBC
  • Channel 4
  • Netflix
  • Sky
  • Media
  • TV

Even with the decline in linear television viewing, online video remains a small component of total video consumption. The growth area is unsurprisingly SVOD; subscription video now makes up about two thirds of the UK's digital video spend.

Netflix is moving from an aggregator of content to a "channel" in its own right, increasing proportionate spend on original programming, something that the public service broadcasters are unable to do for differing reasons. Amazon had a tough 2017 for video, and are still struggling to create a hit.

New Nielsen audience data suggests that the long-term "library value" of Netflix's originals may be overstated, while the BBC's iPlayer continues to be hampered by not really having a library at all.

  • Apple
  • Facebook
  • Media
  • Technology

Almost half of Facebook’s impressive revenue growth and turnover is still reliant on the US, where user growth has slowed down

Among GAFA platforms, Facebook’s core business is the one most directly dependent on dwell time, but the metric for the crucial home market is clouded in mystery

The company has yet to create significant compensating revenue streams outside display advertising, raising the importance of international markets for Facebook’s future

  • Brexit
  • Media
  • Public Policy

Both the Bank of England and the Office for Budget Responsibility have in the last month severely downgraded their view of the long-term underlying growth potential of the UK economy, reflecting a new forecasting consensus that the UK’s disastrous productivity performance post-crisis is not a blip but indicative of a disappointing new normal

The fundamentals of the UK economy, however, remain little altered from earlier this year – investment is weak, household finances are emaciated, people are compensating for weak productivity by simply working more and harder, and consumption growth is approaching its limits

The outlook for the next five years is bleak – earnings are in store for the longest squeeze in living memory and inequality is set to explode. Factoring in the risk of recession and/or of a disorderly Brexit transition, the BoE/OBR’s projections could yet seem over-optimistic