The middle tier is gone. Streaming pricing is bifurcating toward premium ad-free and ad-scaled tiers. Netflix played the long game—letting Disney+ and HBO Max normalise higher prices and absorb the churn risk, then hiking Standard to $19.99 and Premium to $26.99 to reclaim the premium position once the ceiling had been raised.

The industry has crossed the profitability threshold, but the gap with Netflix widens rather than closes. Linear is still funding the transition—the spin-offs and segment collapses are a visibility play as much as a structural one. 

Ad tiers are scaling fast but monetising slowly. Sports is the acquisition flywheel everyone is betting on, yet the ROI remains unproven—Peacock's losses widened the moment NBA rights hit. Reach is rising; depth of engagement is diverging. 

OpenAI has switched off its video AI Sora, under pressure to streamline and monetise as Anthropic captures enterprise momentum.

Google remains as the dominant US video AI player, with more established media industry relationships. Video AI will coalesce around more targeted, industry-ready tech.

The media industry might not mourn Sora, but the unwinding of the Disney/OpenAI deal means it's back to the drawing board on establishing a model for extracting revenue when media IP is used in video AI.

Ofcom’s final TAR statement offers continuity regulation of copper/fibre networks for the next five years, with fewer twists than expected, (sensibly) not moving the investment return goalposts as the altnet sector struggles to find a sustainable model.

Within the detail, broadband pricing regulation has an unwelcome cashflow impact on BT, leased line price cuts are much softer than originally proposed, Openreach appears to have more flexibility on Equinox-style offers, and some progress has been made on copper withdrawal rules.

Ofcom remains encouraging of altnet consolidation in general, seeing it as a way to enhance the effectiveness and sustainability of altnet competition, but is more wary of some types of deal, in particular those involving overlap such as the proposed VMO2/nexfibre-Netomnia deal.

Service revenue worsened by 1ppt this quarter to -1.7%, but this is heavily distorted by one-off factors, in particular the blowback from O2’s controversial price increases.

For the same reason, MVNOs enjoyed their best quarter ever, particularly Sky and Tesco Mobile.

The launch of ‘O2 Satellite’ will bring a welcome brand halo-effect. Limitations of satellite direct-to-device both make the consumer proposition a tricky one, and protect the mobile industry from cannibalisation. 

In 2025, Canal+ delivered results in line with or better than guidance, but the (predictable) losses at Multichoice were bruising for the share price.

The Multichoice acquisition proved timely as African economic prospects improve.

Further opportunities for expansion lie ahead in French football distribution, the Nordic territories and in Southeast Asia.

Rapid diffusion of AI products is pressuring all media sectors to take a radical approach to content and IP management (beyond tried and trusted online strategies).

2026 will be a bumper year of AI spend by big tech. Capex growth may moderate in 2027 but with an enduring cumulative impact as AI agents approach the mainstream.

Broadcasters are ramping up activity on YouTube, and as the rules of tech platform distribution change, the industry works to solve content licensing for AI.

Broadband market revenue growth slightly worsened in Q4 to -1.4% as volume and ARPU pressures persist.

The altnet outlook remains highly uncertain with multiple developments pointing in different directions.

Continued market decline into 2026 is likely, with a coherent (and sustainable) altnet future likely to take some time to emerge.

ITV’s total revenue (£4.1 billion) was flat year-on-year, with growth from Studios balancing a drop from Media & Entertainment: advertising revenue ended 2025 down 5%.

Studios not only grew revenue (£2.1 billion, +5%) but was almost as profitable as the record-breaking 2024, with adjusted EBITA of £297 million. The domestic business remains strong, but US production is looking tough.

Overall engagement continues to fall (-5%) and although there is sizeable reach to be found on YouTube, viewing levels and completion rates markedly trail linear and ITVX.

Axel Springer has leapt in to acquire the Telegraph, offering £575 million all-cash, and upending DMGT's £500 million bid, amidst the ongoing PIIN process.

Securing the Telegraph realises Axel Springer's long cherished ambition to own a "flagship" British asset.

The Telegraph would gain something no previous owner could offer: existing US newsroom scale.

The cultural and social relevance of European broadcasting is in danger of being diluted.

Increasing pressure over the commercial free-to-air model threatens high-reach news delivery.

In-market mergers among European broadcasters may be necessary to reach the critical size to sustain high-quality, content-driven platforms.