< Back to reports

Online media monetisation: When free costs too much

1 May 2019
Access report

The commercial challenges for media online are well-documented: online advertising pays for utilities such as search and social networking many times over, but not for media beyond user-generated content and low-investment journalism.

There are also costs from a user perspective: wasted time, harmful content created to attract views, and the collection, sale, use and frequent leakage to criminals of personal data.

Different sectors have found varying success with alternatives: games, video and music are attracting user payments, driving the paid online economy up 15.5% to £8.2 billion in 2018.

Recent reports

Netflix Q1 2024: Revenues grow as reporting contracts

19 April 2024

Netflix's Q1 revenue was up 15% YoY (to $9.4 billion) bolstered by firm global subscriber growth and the continued momentum of 'paid sharing'. Operating margin is forecast to be 25% across this year (up from 21% in 2023)—approaching the realms of legacy linear media—but transparency will be diluted as the company stops reporting subscribers and ARPU

UK subscriptions and overall engagement are mostly flat; growth by older viewers is masking declines by the young

Even with the strikes driving viewing towards UK content, licensed programming remains a relatively minor factor in Netflix’s library

Access report

Football's broadcast models: Deeper partnerships will create value

18 April 2024

Football leagues must think innovatively about maintaining broad exposure, but relying on advertising revenues from free-to-air TV makes no economic sense.

Creating league-operated direct-to-consumer platforms would undermine the very competition between broadcasters that has propelled rights.

The only realistic option for sustainable growth is deeper, longer-term partnerships with broadcasters.

Access report

Pricing under pressure: European mobile in Q4 2023

10 April 2024

Service revenue took a dip in Q4 to 1.5% as a waning price rise impact in the UK combined with the loss of positive one-offs in Germany.

We expect growth to slow further through 2024 as many operators implement lower index-linked price rises which are also coming under increasing regulatory scrutiny.

Vodafone has made progress on its turnaround plan—striking deals for its Italian and Spanish units—but it is not yet out of the woods, with ongoing challenges in Germany and approval still uncertain in the UK.

Access report