BBC Worldwide magazine portfolio
BBCW is selling its portfolio of magazines. This is the first major disposal of the UK magazine marketplace since Emap sold its consumer magazines division to Bauer in December 2007, valuing the portfolio at 1.8x pro forma revenue, but we expect a lower valuation given the downgrading of the magazine marketplace
Our analysis of the portfolio suggests a mixed bag of relatively resilient adult-focused titles, while Radio Times is a significant cash cow with medium term potential from a more aggressive commercial owner. Our principal concern resides in the viability of the children’s magazine portfolio, where titles are tied to Cbeebies programming, with relatively short life cycles
Bauer is a probable favourite to buy the portfolio, assuming it is picked up by a trade buyer. A post-acquisition process of disposal of non-core assets could provide other trade players with the opportunity to scoop titles that fit well in their portfolios
|Media||16 December 2010|
Better Than Free'
This report sets out a programme of actions to help slow the growth of music and video piracy. For the last five years the content industries and ISPs have been in a state of almost open war as a result of rampant copyright theft, largely made possible by broadband networks. Our report, by contrast, stresses the importance of cooperation between ISPs and the content industries.
|Media||21 September 2003|
Bigger than ever: Apple's Q1 2015 results
The iPhone 6 and 6 Plus drove Apple’s most extraordinary quarter ever, with the company’s position in the smartphone market improving on all fronts: explosive growth in China, rising market share in the US and a rising average sales price.
By contrast, iPad sales continued to decline in spite of the iPad Air 2’s release, suffering from cannibalisation by the phablet-sized 6 Plus and saturation in developed markets. Apple has a strategy to revive sales, which may bear fruit later in the year.
A slate of new products is coming this year, led in the spring by Apple Watch. The question is, will Watch be a significant new source of profit or just a way to protect the iPhone’s dominant position in the smartphone market.
|Mobile, Telecoms, Technology, Internet, Media||9 February 2015|
Blockchain: Reinventing the wheel
Despite the hype, systems based on the technology underlying bitcoin are a poor match for most use-cases
The term 'blockchain' is nowadays applied to technologies with shared aims and ideals rather than technological unity; few – if any – of these aims require true blockchain, any many are double-edged swords
The promises of blockchain are seductive in the context of programmatic online advertising, but are over-sold
|Media, Technology, Telecoms||2 May 2018|
Blocking in the free world: the threat of online ad blocking
Currently at a manageable level, ad blocking has the potential to fatally undermine the business models of media owners that depend on advertising, as well as restricting advertisers’ ability to reach audiences online.
To head off this threat, publishers, agencies and advertisers need to understand the diverse things that users do not like about digital advertising, fix them, and communicate this change of behaviour to audiences.
The move from desktop to mobile, from banner to native and from web to apps provides advertisers and publishers with the opportunity to provide an acceptable advertising experience, ensuring that blocking of these new formats and properties never reaches the threatening levels currently on desktop.
|Internet, Media, Mobile, Technology||16 March 2016|
Blyk: easy money?
A new MVNO, Blyk, launched in the UK this week offering limited free texts and voice minutes in exchange for receiving advertising
|Telecoms, Mobile||26 September 2007|
Brexit and UK internet privacy
Personal data is the fuel of the digital age and the UK is a top producer due to deep internet and ecommerce usage
The EU’s General Data Protection Regulation (GDPR), a key plank of the Digital Single Market (DSM), will directly apply in May 2018, before the date of Brexit in 2019
Upon Brexit, GDPR adoption would ensure easy certification by the Commission for data transfers outside the EU, giving companies another reason to stay in the UK
|Brexit, Internet, Media, Public Policy, Technology||13 October 2016|
In the midst of the Brexit news morass, here are some framing thoughts for the bigger picture…and why all roads lead to no-deal, after the Commons’ rejection of the package of the withdrawal agreement and the framework for the future trade relations between the EU and UK.
|Brexit, Media, Telecoms||8 February 2019|
Brexit dismal media outlook
The victory of the Leave campaigners in the EU referendum offers no clear benefits to the audiovisual sector, whether we consider domestic and international broadcast distribution across Europe or the creative production sector
The present lack of a clear roadmap and climate of uncertainty promises to be harmful across the entire media sector at least in the short-term, raising the distinct prospect of a recession later this year or next, causing us to downgrade our forecasts from February this year
The Brexit process raises many issues and will be drawn out over several years as the UK finds its feet in the new world. If the UK audiovisual sector is to emerge relatively unscathed, it is vital that it retains its ties with the Single Market by joining the EEA. The alternative is unthinkable
|Media||1 July 2016|
Brexit impact on UK-EU trade in creative services
Brexit poses direct risks to exports to the Continent of regulated services, such as audiovisual (AV) media services, if the UK ceases to qualify for the Single Market
Since 1994, the EU has formalised a ‘cultural exception’ in the World Trade Organisation (WTO) and in all trade agreements aside from the European Economic Area (EEA)
Many countries have emulated the policy since, making it challenging for the UK’s AV cluster to gain significant additional market access from future bilateral trade deals
|Brexit, Media, Public Policy, Technology, Telecoms||2 December 2016|
Brexit risks for the creative industries
A post-Brexit recession will cause a hyper-cyclical decline in the advertising revenues of broadcasters and publishers
The Vote Leave idea of the UK joining a free trade area for goods with the EU would sever UK access to the Single Market for services, damaging the export-reliant audiovisual group, among many other sectors of strength
Made-in-the-UK IT, software and computer consultancy services will lose eligibility for government procurement tenders once the UK is an outsider to the EU
|Non-UK Media, Media, Public Policy, TV, UK Media||22 April 2016|
Brexit Update: Domestic Issues
Despite apparent instability of the political climate in Westminster, the direction of travel is predictable as both main parties share the aim of Brexit
The big fight in Parliament is over the future trade policy of the UK. Officially, the UK wants to agree a Free Trade Area (FTA) with the EU, while the Labour Party and Tory rebels hope a Customs Union (CU) prevails, binding the UK to the EU’s trade policy
The Supreme Court is about to hear the UK Government’s challenge to legislation passed by the devolved nations of Scotland and Wales, which claim their consent is required for policies on agriculture, fisheries and the environment
|Brexit, Media, Telecoms, TV||25 April 2018|
BritBox’s muted arrival: ITV FY 2018 results
After the heights that Love Island and the World Cup took ITV to in H1, the broadcaster held on over the tougher last few months of 2018 to see growth in ad revenue (0.8%) and total viewing (linear and VOD, 3%)
However, it was the announcement of the subscription video service BritBox—with the discussions around the “strategic partnership” with the BBC in its concluding phase—that garnered most interest
ITV’s investment in the service is modest when compared to its global competitors—up to £25 million in 2019, £40 million in 2020 and declining thereafter—but it is a prudent low-risk entry into what is an expanding but difficult market
|Media, Telecoms, TV, UK Media||18 March 2019|
The potential for residential broadband connectivity in France, Germany and the UK depends on the availability of low-priced broadband products (hardware, installation and monthly subscriptions) and a narrow pricing gap with existing Internet access packages. Unless monthly subscriptions fall below €30 (from current comparable levels of €45 and up) and hassle-free self-installation is ubiquitous, consumers will not migrate from narrowband, even if they appreciate the faster surfing and download speeds of broadband. But regulators are guarding against any price declines from the incumbents, having put their faith in infrastructure-based competition through local loop unbundling (LLU) and upgrading of cable infrastructure. We believe that expectations of alternative supply of broadband through either of these routes in France and Germany are misplaced; in the UK, broadband cable will make more headway due to specific historical and regulatory factors, while there will be no effective alternative supply of residential DSL through LLU.
In its projections supporting its £3.2 billion debt financing, H3G projects 172,000 subs in 2002, 1.2 million by end 2003 and 9 million by end 2010.
Combined with projected ARPU of £40/month (or about current contract ARPU in the UK), H3G’s revenue projections come to £2 billion in 2005 (note UK mobile market in total = £10 billion today).
|Telecoms||16 January 2002|
Broadband update document.
|9 January 2001|
Broadband, IPTV and Fibre in France
This report on the French broadband market examines growth trends in 2009 and forecasts to 2012, updates our previous assessments of the commercial significance of IPTV in the triple play (a bundle of broadband, telephony and TV), and details the state of fibre-to-the-home (FTTH) deployment
Shrugging off the recession (milder and shorter than in the UK), the French broadband market is set to reach 19.6 million connections by the end of 2009, up 1.9 million on 2008 – only 12% less than the level of net adds of 2008. With 2009 better than we expected, we now anticipate a sharper slowdown in net adds in 2010, with 1.4 million net adds projected. We still expect the total to reach 22.8 million connections by 2012 (70% household penetration)
|Non-UK Telecoms, Fixed Line, Telecoms||13 November 2009|
This report looks at the characteristics of today’s UK broadband users in order to understand (a) likely future trends in subscriber numbers growth; and (b) how usage patterns vary between broadband and narrowband customers. We carried out a large piece of market research during the summer and the results are presented here.
|Telecoms||18 September 2003|
Broadcast TV is growing very old, very quickly
Linear TV is ageing, and the largest channels are ageing fastest. There is an ongoing double-whammy effect of a growing older population, and the loss of younger viewers to social media and SVOD services.
The PSBs are suffering more than most, especially the BBC channels. 31% of the population is aged 55+, but over 60% of viewing to BBC1 and BBC2 is by those aged 55+.
The trend can be halted, and even reversed to some degree. There is no inevitability to this ageing process, but it will take concerted efforts to fight it.
|Media, TV, UK Media||13 September 2018|
BSkyB growing on demand - Q1 2015 results
Q1 2015 results show steady underlying revenue growth in retail subscription and increases in other segments, along with the continuing extraction of cost efficiencies, resulting in an 11% year-on-year increase in Q1 operating profits
Quarter-on-quarter, Q1 2015 retail subscription revenues and ARPU were flat in spite of the strong uptake and growing use of connected products. Main causes appeared temporary - a mixture of seasonal factors and the launch of Sky Sports 5 with its two-year free broadband offer - while underlying growth remains firmly positive
Meanwhile, Sky’s accelerated investment in connectivity during 2014 is bearing fruit. Eyes may be focused on the formation of the “new Sky” (on schedule for November) and the long awaited Premier League auction, yet other developments such as Sky Store and Sky AdSmart also deserve full attention
|Fixed Line, Telecoms, TV, Media||20 October 2014|
BSkyB Q3 2000 Results
In this report Chris Goodall carries out a brief analysis of Sky's results published today and compares them to our projections.
Our emphasis in this note is on ITV Digital. What are the options open to the two shareholders of ITV Digital, Carlton and Granada? How can they reduce the burden of supporting ITV Digital through the next few years? What is the likelihood (or otherwise) of substantial improvement in that company’s results, in particular break even in 2003?
|Media, Telecoms||16 May 2001|