Latest Reports
Latest Reports
Venture Insights reports inform and enable better decision making through independent, objective, and high quality insights, analysis and thought leadership across the media, digital and teleco industries in Australia and New Zealand and with global insight from our European partner, Enders.
Tech
All companies are impacted by the evolution of technology and the changes in consumer behaviour that it enables. Our reports explore macro tech trends such as blockchain, artificial intelligence, drones, robotics, to determine how different industries will be impacted.
Media
The pace of change in the media industry has reached unprecedented levels. Global challengers are disrupting long established incumbents and attracting sky high valuations.
Telco
The wireless data revolution and cloud service provision are transforming the telco sector. Ambitious companies are investing in infrastructure, device innovation and cloud solutions as demand continues to explode.
Energy
As the energy sector transitions from fossil fuels to renewables, technology is driving changes in generation, distribution, storage and consumption. We track the challengers, the impact on incumbents and the policy debate.
Health
Technologies such as artificial intelligence, robotics, wearables and apps, coupled with genomics and the personalisation of health, are transforming the consumption, provision and management of healthcare. This healthtech revolution is being driven by consumers and healthcare providers alike.
Fintech
Fintechs are transforming the financial services market. Established players are responding through a mix of investment and innovation. Our reports cover areas such as lending, neo-banks, payments, robo-advice, insurtech and blockchain.
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September 19, 2018TPG FY18 earnings update: Steady, as merger approaches
Focus Report, ReportsOn 18th September 2018, TPG announced its full FY18 financial results as an independent entity. Consumer performance has declined slightly, but TPG has extracted value out of its fibre assets in the corporate segment. Overall, the outlook for TPG is positive as it looks to utilise Vodafone’s mobile capabilities and branding to complement its own broadband strengths. -
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September 18, 2018nbn Corporate Plan 2019 – challenging times ahead
Focus Report, Reportsnbn recently released its Corporate Plan 2019. Key performance targets were not met largely due to a delay in the HFC rollout, and as a result future forecasts were downgraded, and revenues deferred. As the rollout passes the halfway mark, nbn must focus on sustaining infrastructure quality, adopting a successful wholesale pricing strategy and address customer complaints issues. -
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September 17, 2018UK Broadcast TV is growing very old, very quickly
Market Outlook, ReportsUK mobile market service revenue grew by 1.7% in Q2, up from 1.3% in the previous quarter, a disappointing result in the context of boosts from both IFRS 15 accounting and the annual price rises in the quarter. O2 was the star performer this quarter, with its service revenue growth leaping ahead to claim the top spot. BT/EE’s service revenue growth declined on an underlying basis, with weak contract net adds over the last six months catching up with it, and H3G and Vodafone were slightly improved and steady respectively excluding some one-off effects. Next quarter, the impact from the EU roaming cuts will annualise out, providing a substantial fillip to all operators. Ceteris paribus, this would put market growth in the vicinity of 4%, a figure not reached for years. -
September 13, 2018IoT Impact 2018 – Preparing Australia for IoT
Flash Report, ReportsThe inaugural hosting of Australia’s largest Internet of things (IoT) conference and expo IoT Impact was held at the University of Technology, Sydney on 10-11 September 2018. IoT is truly here to stay and already making huge impacts across a variety of sectors. Government and private companies need to collaborate to ensure successful implementation of IoT to deliver long term benefits. -
September 11, 2018UK mobile market Q2 2018: Disappointment before dawn
Market Outlook, ReportsUK mobile market service revenue grew by 1.7% in Q2, up from 1.3% in the previous quarter, a disappointing result in the context of boosts from both IFRS 15 accounting and the annual price rises in the quarter. O2 was the star performer this quarter, with its service revenue growth leaping ahead to claim the top spot. BT/EE’s service revenue growth declined on an underlying basis, with weak contract net adds over the last six months catching up with it, and H3G and Vodafone were slightly improved and steady respectively excluding some one-off effects. Next quarter, the impact from the EU roaming cuts will annualise out, providing a substantial fillip to all operators. Ceteris paribus, this would put market growth in the vicinity of 4%, a figure not reached for years. -
September 10, 2018Japan’s recorded music market starts to stream
Flash Report, ReportsRecorded music revenues in Japan are stuck in decline as physical sales sag, although 2017 marks the first year when streaming gained a foothold with 8 million subscribers. J-pop fans spend on 'experiences' with their idols including events, merchandise, CDs and DVDs, which streaming cannot replicate. Top native LINE MUSIC offers integration with a popular messaging app and bundling with mobile. Serving international repertoire, Apple Music claims more subscribers than Spotify in Japan, which is more localised, and has most users on the free tier. Amazon Prime Music is a looming constraint on the adoption of subscriptions. -
September 5, 2018High 5G consumer interest keeps pressure on network rollout
Flash Report, ReportsOperator positioning for 5G network plans in Australia and New Zealand continues to pick up pace – as Venture Insights’ latest consumer mobile survey demonstrates strong interest from Australian consumers. Leadership in 5G network rollout is likely to provide strong benefits from the acquisition of early adopters from competing networks.Sector Telecom. -
September 4, 2018When an Amazon TV show wins a Golden Globe, Amazon sells more sho [...]
Focus Report, ReportsOver the past two decades, Amazon has grown to become the largest ecommerce player in the world. But to think of it as just an online retailer would be underestimating its presence across multiple other services and markets. Within this, Amazon Video is fast emerging as a key pillar of Amazon’s overall business as it uses video to increase Prime memberships and improve user stickiness on the Amazon platform. -
September 3, 2018UK Commercial TV impact trends: better than viewing trends, worse [...]
Focus Report, ReportsThere has been no shortage of attention paid to declining TV viewing over recent years, but much of it focuses on overall viewing time rather than advertising delivery. This is to overlook the engine driving most of the UK’s television industry. Commercial impact delivery has held up well relative to overall viewing, and is strong for certain key demographics. Nonetheless there are generational and behavioural changes afoot which are exerting downward pressures on impacts, especially for younger audiences. An archipelago of Love Islands is needed (Stranger Things have happened). -
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August 31, 2018Consumers lose while the market wins: TPG and Vodafone merger
Focus Report, Free Sample, ReportsTPG and Vodafone announced the merging of the two companies to form a third major telco which will challenge leaders Telstra and Optus. This move is positive news for the market as the likelihood of a mobile price war is expected to be reduced, stabilising ARPUs and margins.Sector Telecom. -
August 30, 2018
IoT in Transport – rise of the connected transport market
Focus Report, ReportsThe Internet of Things is set to transform the transport industry by driving real-time connectivity between vehicles and transport infrastructure. In Australia, the transport IoT market is forecast to generate about A$5bn in revenue in the next five years. -
August 29, 2018UK broadband, telephony and pay TV trends Q2 2018: Great volume, [...]
Market Outlook, ReportsThe UK broadband subscription market re-accelerated in the June quarter, bucking a consistent downwards trend that has been established for over three years, with line rental and pay TV subscriptions also accelerating having both also experienced a more general downwards shift over the last few years. The broadband acceleration may be short-lived, with line rental only a little more sustainable. Pay TV is perhaps the most robust recovery given that the over-the-top new entrants (primarily Netflix and Amazon) are now firmly establishing themselves as add-ons not substitutes.Revenue growth however took a more familiar path, dipping to 1.6% from 2.8% in the previous quarter, as BT’s overlapping price increase predictably dropped out, partially mitigated by an improvement in ARPU growth at TalkTalk caused by an improved (i.e. slightly less damaging) mix effect. -
August 27, 2018Audible, audiobooks and lessons from Amazon in the UK
Flash Report, ReportsAudiobooks are growing fast, driven by smartphone adoption and better supply, as well as interest from people who don’t usually buy books, such as young men. The sector is dominated by the presence of Audible, Amazon’s audiobook publisher/retailer, which has driven growth of audiobooks but put publishers under pressure. Its strategy is a lesson in Amazon’s approach to media. Audio is an opportunity to sell to new customers, but publishers must acquire and use rights responsibly, and experiment while not letting the audio tail wag the print dog.Sector Media. -
August 27, 2018Nine Entertainment FY18 earnings update: digital drives growth
Flash Report, ReportsOn 23rd August 2018, Nine Entertainment reported its FY18 earnings. Strong ratings performance in key demographics, rise in digital subscriber base and focus on controlling costs drove an uplift in revenue and earnings for FY18.Sector Media. -
August 24, 2018Vocus FY18 earnings update: Focus on the business segment
Flash Report, ReportsOn 22nd August 2018, Vocus announced its FY18 financial results. Despite revenue and EBITDA increasing slightly, net profit fell 16%. Its SMB product Commander posted a revenue decline of 15%. Vocus needs to take immediate action to make the most of its fixed asset opportunities, acquire larger market share in Enterprise in NSW and VIC, and focus on differentiated products that reduce its dependence on legacy solutions.Sector Telecom. -
August 23, 2018Seven West Media FY18 earnings update: going all in on cricket
Flash Report, ReportsOn 21th August 2018, Seven West Media reported its FY18 earnings. While an improving core business and focus on cost reduction delivered operating profits that were at the upper end of guidance, new programming and sports content is expected to drive ratings and financial performance going forward.Sector Media. -
August 21, 2018oOh!media earnings update: double digit revenue growth
Flash Report, ReportsOn 20th August 2018, oOh!media reported its first half CY18 earnings. While digital continues to underpin majority of the growth, product and customer diversification ensured double-digit revenue growth despite fluctuations in certain business segments.Sector Media. -
August 21, 2018Regulating harmful video content and advertising online: Publishe [...]
Market Outlook, ReportsVideo-sharing platforms, such as YouTube and Facebook video, enjoy a light-touch regulatory regime for harmful content and advertising. As video viewing of non-broadcaster content grows, the regulatory gap between TV broadcasters and video-sharing platforms widens, part of a broader uneven playing field for publishers and platforms. However, there is momentum against this: the “platforms vs publishers” divide looks set to weaken in EU law, and the platforms themselves are investing more in combatting harmful content within a self-regulatory regime, though their internal policies and outcomes are still opaque. Effective and fair regulation of video-sharing platforms would involve the balancing of national freedom of speech conventions and the public utility of user-generated video hosting with concerned stakeholder views: something approaching a co-regulatory system for online video-sharing platforms. -
August 20, 2018Sky UK 2017/18 full year results: Winning the game of content
Focus Report, ReportsSky maintained strong revenue growth of 5% in 2017/18, with EBITDA and operating profit both bouncing back into strong positive territory after the UK Premier League rights hit of 2016/17. The UK grew revenue well and profits better; Italy performed well and should improve much further given the retreat of its principal competitor; Germany is more challenged, but extra content investment may aid sustained growth. Sky is proving adept at managing content costs and revenue in a changing environment, with investment, cost control and monetisation all being put to effective use as the content type demands it. -
August 20, 2018Virgin Media Q2 2018 results: Measured approach in a tough market
Focus Report, ReportsVirgin Media had a mixed quarter, with subscriber ARPU growth maintained, partly driven by a triple play focus with pay TV and telephony adds much improved, but subscriber and broadband net adds unchanged. Cable revenue growth did slow from 3.6% to 3.1%, mainly due to the previous quarter’s net adds slowdown working through, and it is still growing the fastest of the big operators in a slow-growth market that still suffers from pricing pressure at the low end. Its network roll-out was slower than last year and only just above the weather-impacted previous quarter, which appears to be deliberate, and which may at least partly relate to an uncertain regulatory and commercial climate over ‘full fibre’ roll-out by others. -
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August 17, 2018Telstra FY18 earnings update: there’s a lot riding on 5G and Io [...]
Flash Report, Free Sample, ReportsOn 16th August 2018, Telstra announced its FY18 earnings. While subscriber growth remained strong, it was not strong enough to offset ARPU declines. Telstra is betting its future on new initiatives (IoT) and network technologies (5G) to remain ahead in times of increasing competitive pressure in both fixed and mobile, however it faces competition from multiple other market participants.$0.00Sector Telecom. -
August 17, 2018Local TV: Five years after launch
Focus Report, ReportsAlthough launched with an array of public service goals in mind, local TV’s flawed design has created a sector struggling to live up to its optimistic ambitions. Five years and £37 million of licence fee monies later, it is unclear what public service contributions are being made, or whether the scheme has provided value-for-money. A wholesale review of the sector is urgently needed. The vision of a “thriving and sustainable” sector has fallen flat. Most licences remain loss-making, with doubts as to their long-term viability. Those operating low-cost models seem best placed to survive.Sector Media. -
August 16, 2018Fairfax FY18 earnings update: digital remains the main driver
Flash Report, ReportsOn 15th August 2018, Fairfax Media reported its last full year earnings as an independent news publisher. Digital assets remained the key driver of earnings while regional and community print continued its structural decline.Sector Media. -
August 15, 2018Consumer magazine publishing: Quality, not quantity
Market Outlook, ReportsThe decline in demand in print presents trading challenges, but the more immediate pressures are on the supply side, with a 15% rise in paper prices accentuating the burden of production and distribution costs.With digital advertising growing at stubbornly low rates, UK publishers need to return to their fundamental consumer-centred strengths by switching their strategic attention towards strong brands, curation, and community. The case for specialist, branded publishing media remains robust: products, services, and consumers are still best brought together in an authoritative, trusted media environment. Advertisers and agencies (and also media) have undervalued the effectiveness of those environments, and direct-to-consumer opportunities have been exaggerated by many brands. -
August 14, 2018Down, but not out: Why there’s still life in terrestrial broadc [...]
Focus Report, ReportsAustralian viewers are shifting irresistibly towards on-demand formats and IP-based video viewing. But is there still life in the terrestrial platform? And what does this mean for broadcasters and other industry participants? You could be forgiven for thinking that broadcast television is an anachronism, a relic of a time when audiences watched what was programmed, when it was programmed (more or less), and knew no better. Likewise, when every other headline lauds the benefits of online content delivery (though perhaps not so much at the moment given Optus’ recent World Cup travails – more on that later), it is surely a forgone conclusion that terrestrial broadcast is in terminal decline, following Blockbuster and Borders to the exits. However, our analysis suggests that while IP delivery is ascendant, there is still likely to be a significant and long-term role for terrestrial broadcast in Australia. In this report, we explore the factors driving the shift towards IP-based content delivery and argue why this shift does not spell the death of terrestrial broadcast, at least over the coming decade.Given this assessment, broadcasters and other industry participants need to carefully balance the expected ascendancy of IP with the potential longevity of the DTT platform as they place bets on the future of video entertainment. -
August 9, 2018IoT Connectivity Technologies
Focus Report, ReportsThe Internet of Things is becoming a pervasive part of our technology ecosystem. At its heart, communication and connectivity technologies enable IoT devices to interact and share information. There are a number of connectivity options available for IoT networks, each with specific characteristics which makes them suitable for specific applications and use cases. -
August 7, 2018BT Q1 2018/19 results: On target in the short term, making progre [...]
Focus Report, ReportsBT’s Q1 results were fairly robust given a number of one-offs hitting in the quarter, with revenue growth of -2% in line with full year guidance, EBITDA growth of 1% ahead of plan, and a number of metrics looking promising. Openreach’s newly announced volume discount plans offer advantages in growing high and higher speed volumes, infrastructure competitiveness and regulatory pricing pressure, while giving up little in external revenue, a win-win-win for BT at least. Full-fibre regulation appears to be slowly moving towards more clarity, but is still far too unclear to justify an accelerated investment, with critical issues being ducked (for now) by government and Ofcom alike. -
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August 5, 2018Venture Advisory Monthly Wrap – July 2018
Free Sample, Monthly wrap, ReportsVenture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things share price performers ( best and worst performers during the month), company news flow and ASX release updates and respective valuation trading multiples. The report is designed for busy executives and investment professionals that want to get a flash update and stay on top of key news flow. If you wish to find out more or have an deeper enquiry please feel free to contact Nigel Pugh or Sarah Houghton.$0.00 -
August 2, 2018Revenues down, guidance in the balance: Vodafone Q1 2018/19 resul [...]
Focus Report, ReportsEBITDA growth guidance of 1-5% is in question with group revenues flat to down. Counting AMAP growth in local currencies helps, as will cost control and roaming relief. Sustaining growth in Germany will be key; convergence-led ARPU declines could prove to be something Vodafone can’t afford. Vodafone’s UK business performed strongly in terms of mobile subscribers and fixed business financials, although revenue growth is still lacklustre. Profitability is expected to increase markedly, boosted 10ppts by roaming tariff relief. Although we view Iliad’s business model in Italy as unsustainable, it will nonetheless continue to put significant pressure on Vodafone Italy’s ARPU, which is almost three times that of Iliad’s package. -
August 1, 2018Hulu: Why Disney wants 21st Century Fox
Focus Report, ReportsDisney’s potential acquisition of certain 21st Century Fox assets is assuredly a play for further scale at a time when the company’s traditional domain, the family home, is increasingly welcoming services such as Netflix. The deal will consolidate Disney’s dominant film business. But also, the robustness of traditional television, especially 21CF’s cable interests, along with IP assets, will allow Disney to better control the inevitable viewer transition from linear to online and on-demand. Becoming the one media company with both a strong broadcast and online offering—the control of Hulu, a new Disney streaming service, ESPN+ and other add-on services—could grant Disney the ability to navigate the storm of change and dictate its own future. -
July 31, 2018Nine – Fairfax Merger Flash
Flash Report, ReportsThe proposed A$4.2bn merger of Nine Entertainment and Fairfax Media will produce one of the largest players in the Australian media landscape. This deal is on the table thanks to the change in media ownership laws that removed the ‘two out of three’ media ownership rule which prevented one business from owning a TV network, radio station and newspaper in the same market.Sector Media. -
July 30, 2018Quality media, Ozone protection
Focus Report, ReportsThe Telegraph, The Guardian and News UK (The Times and The Sun) will jointly invest in The Ozone Project to develop a state-of-the-art platform to sell their digital inventory. Ozone will add value to news digital inventory and seek to win back advertiser expenditure on Facebook and Google’s various properties, (indirectly) reigniting interest in placement next to quality news media content. Each JV participant operates a distinct business model, which risks friction, but this digital reboot is crucial. By 2020, Ozone could add circa £30 million per annum – not a trivial contribution to a national newspaper newsroom. -
July 26, 2018
The drive for convergence: a value-destructive strategy
Focus Report, ReportsMany European telecoms operators are pursuing a fixed/mobile convergence strategy on the pretext that the addition of mobile reduces churn. We see no evidence of churn reduction from this strategy. Discounts required to encourage take-up of fixed/mobile services are often value-destructive, even before competitor reaction: a 10% bundle discount necessitates a 2ppt improvement in churn to wash its face economically. M&A premia on the basis of convergence synergies raise the hurdle even higher. Most UK operators offer very limited discounts on fixed/mobile bundles for now, sensibly focusing on enhanced services. Vodafone is the most aggressive, albeit less so than it is elsewhere. All UK players should hope that it stays this way. -
July 25, 2018Unlimited mobile data – not quite all you can eat…
Focus Report, ReportsMobile data usage in Australia is expected to increase 6x between 2017 to 2021, driven by advances in mobile technologies, increasing time spent on larger screen smartphones and rising video streaming on mobile. Unlimited mobile data plans have finally made their way to Australian shores, as Telcos look to counter the impact of rising competitive intensity.Sector Telecom. -
July 24, 2018AV ad measurement: meretricious metrics
Focus Report, ReportsRigour and consistency in AV ad metrics is proving elusive. A 10-second ad on YouTube, ITV1, All4, MailOnline, Sky AdSmart or Facebook is measured in as many different ways, often indifferently. It is tricky, costly or impossible for agencies/advertisers to comprehend the overall picture. By 2020 JIC-based BVOD ad impressions should be available from BARB all being well, giving BVOD a clear advantage over other premium online video measurement. Google/YouTube seems to be ‘getting’ JIC co-operation now and has begun to galvanise video ad measurement, but forceful advertiser intervention is needed to extend and improve standards. Otherwise, advertisers are simply funding a JIC-free jamboree, and they (with content media) will lose the most.Sector Media. -
July 20, 2018Focus back on ARPU: TalkTalk Group Q1 2018/19 results
Focus Report, ReportsTalkTalk had another strong quarter for broadband net adds, adding 80k versus its full year target of 150k+. All of this was due to strong wholesale, with retail net adds slightly negative, although in the market and seasonal context even this retail performance is quite respectable. On-net revenue growth improved strongly to around 4%, with its ARPU decline moderating to 2%, and ARPU should be helped further by price increases for existing and new customers alike in July. TalkTalk therefore looks well placed to hit full year targets, albeit with considerable help from its wholesale customers and some aggressive price increases. The focus back onto ARPU and away from (expensively) chasing retail subscriber growth is nonetheless to be applauded. -
July 18, 2018Video viewing forecasts to 2027: No channels and everything to wa [...]
Market Outlook, ReportsVideo consumption will continue to shift to on-demand driven by high quality content and a better user experience. Is live TV dead? Is Netflix the future of TV? We address these questions and more in this report on the future of video consumption in Australia -
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July 13, 20185G Update July 2018 – auctions caps, potential vendor bans and [...]
Free Sample, ReportsRegulatory announcements regarding 5G will affect competition dynamics as the first 5G services are closer to launch. Internationally, there is excitement but also caution as the potential high price of providing 5G services will mean expected benefits such as unlimited mobile plans prove to be difficult to justify economically.$0.00Sector Telecom. -
July 13, 2018UK TV platform forecasts to 2022: stability rules
Focus Report, ReportsDespite significant changes in people’s video viewing habits over the last few years, the TV platform landscape has appeared to reach an equilibrium. We expect pay-TV to retain its utility status for most existing customers. At the margins, movement from Sky and Virgin Media to free-to-air or pay-lite services will be mitigated by population growth. The excitable growth phases for Netflix and Amazon are likely to be over, but they have carved out prominent positions in the market. Meanwhile, the uncomplicated allure of free TV remains strong for half the UK. -
July 12, 2018Virtual Reality in 2018: Ready Player None?
Focus Report, ReportsYet another annual hype cycle in 2018 can’t hide a tepid consumer appetite for all VR platforms and heavy weather for the industry as a whole. The launch of Oculus GO, a standalone device at an attractive price, is a milestone for VR; nevertheless, even Facebook remains worried about reach and the state of the industry. Mobile AR is still a strategic focus for Google and Apple, producing diverse applications instead of just games, but new headsets from Microsoft and Magic Leap which promise advanced MR experiences have no launch dates. -
July 11, 2018Media transformation is just beginning…
Focus Report, ReportsThe continued rise and dominance of Silicon Valley’s tech giants continue to vex traditional media operators and regulators, and equally, still fascinate and allure consumers and advertisers. Publishers and marketers can no longer rely on commoditised campaigns to reach target audiences, they must offer personalised and targeted experiences that consumers are willing to pay for either through attention or dollars. -
July 9, 2018
Europe’s Creative Hubs Update 2018
Market Outlook, ReportsThis third edition of Europe's Creative Hubs, produced on behalf of Bertelsmann, highlights the challenges of the digital age for enterprises of the creative industries of France, Germany and the UK from new consumer behaviors and the advent of new competitors and new forms of competition for users and customers from tech giants, Amazon, Facebook, Google and Netflix. The report calls upon policymakers in Europe to ensure a level playing field for traditional media in the key areas of taxation, competition law, privacy and data protection, highlighting the interaction of these three in the market for online advertising. -
July 6, 2018Westpac leads the Fintech investment charge
Focus Report, ReportsAustralia’s largest banks have been very active in the fintech market. This report explores the investments that they have made and considers their contrasting approaches to those investments. -
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Venture Advisory Monthly Wrap – June 2018
Free Sample, Monthly wrap, ReportsVenture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things share price performers ( best and worst performers during the month), company news flow and ASX release updates and respective valuation trading multiples. The report is designed for busy executives and investment professionals that want to get a flash update and stay on top of key news flow. If you wish to find out more or have an deeper enquiry please feel free to contact Nigel Pugh or Sarah Houghton.$0.00 -
July 4, 2018The eSports economy – it’s just getting started…
Focus Report, ReportseSports has grown in popularity beyond being a niche form of entertainment to becoming a powerful means to engage millennial audiences. There’s significant investment from major media corporations, mainstream advertisers and professional sports franchises, demonstrating the emerging importance of eSports. -
June 29, 2018
Is CRR still critical to protect advertisers from ITV?
Focus Report, ReportsThe workings of the TV advertising market are a mystery to most. Overlaying an arcane ‘share of broadcast spend’ trading mechanism is regulation in the form of CRR, which has prevented anti-competitive activity by ITV since 2003. CRR will protect advertisers ‘for as long as needed’. Most advertisers we canvassed believe it should stay in place, but the sell-side and auditors say CRR has passed its ‘Best before’ date and is heading towards its ‘Use by’ date. We propose a review of CRR by the Competition and Markets Authority (CMA) to determine whether it is now helping or hindering the TV advertising ecosystem to become fit-for-purpose for the digital age. -
June 28, 2018
The home screen: distribution, discovery and data on connected TV [...]
Market Outlook, ReportsThe TV, the main screen in the house, is rapidly becoming connected to the internet, opening a new front in the battle for people's attention. Tech players, pay-TV operators, and manufacturers are all aiming to control the user interface, ad delivery and data collection, leaving incumbent broadcaster interests less well represented. To protect their position, and the principles of public service broadcasting, broadcasters will have to work with each other at home and in Europe to leverage their content and social importance. -
June 27, 2018‘Telstra 2022’ – the inevitable end game of Australia’s n [...]
Market Outlook, ReportsTelstra has been on the path to structural separation ever since Senator Conroy came up with his plan for the nbn back in 2009. With its one-off nbn payments winding down, Telstra had no choice but to overhaul its business structure, structurally separate its assets & significantly reduce headcount. But this strategy comes with major implementation risk and any mis-steps could quickly negate the expected benefits. -
June 26, 2018
Sky finally renews Serie A rights until 2021
Market Outlook, ReportsItaly’s top football league awarded Sky the broadcasting rights to seven games per week from August 2018 until May 2021 for €780 million per year, up €208 million. UK-based Perform will carry three games for €193 million. Mediaset exits the market, freeing Sky from price competition. Besides Serie A, Sky added Mediaset’s Hollywood series and films to its content line up in May and will include the Champions League from August. We expect costs to rise by up to €500 million per year, which could be recouped by cuts in content and by recruiting Mediaset subscribers, notably on Sky’s new DTT feed. The best model for Perform would be to wholesale its new DAZN service to Sky, but even if a deal is found we doubt it could break even within the rights cycle. -
June 25, 2018
Hitting targets, but pushing too hard? TalkTalk Group Q4 2017/18 [...]
Focus Report, ReportsTalkTalk hit both its subscriber and EBITDA targets for 2017/18, but Q4 contained some worrying trends including core consumer revenue in decline despite strong subscriber growth, with strong business revenue growth compensating. It held fast on guidance for 2018/19, although the 15% target underlying EBITDA growth is largely driven by regulated cost cuts, and revenue growth may be (again) achieved through the business side, which will be purely wholesale following the sale of its direct business customer base. Having spent the last few years not growing retail subscribers enough in a growing market, TalkTalk is now perhaps trying to grow too fast in a mature market, putting pressure on its ARPU from new and existing customers alike.
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July 6, 2018
Westpac leads the Fintech investment charge
Focus Report, ReportsAustralia’s largest banks have been very active in the fintech market. This report explores the investments that they have made and considers their contrasting approaches to those investments. -
May 22, 2018Blockchain in Telecom – moving from concept to reality…
Flash Report, ReportsIn the past decade, Telcos have had to deal with a number of disruptive technologies. The pace of change is set to continue as Telcos transition towards a 5G and IoT enabled ecosystem. As Telcos seek new revenue opportunities and a way to streamline operations, Blockchain is rapidly evolving to become one of the most promising emerging innovations for telecoms today. -
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April 24, 2018AltFi Conference 2018 – Growth with transparency
Flash Report, Free Sample, ReportsVenture Insights attended the annual AltFi Australasian Conference on April 15th 2018. The key takeaway from the conference was that the Fintech Industry in Australia is growing at a fast rate and the industry is optimistic about the Federal Government’s Open Banking initiative.$0.00 -
April 17, 2018IoT & Cryptocurrency Mining: Cyber Security Update
Focus Report, ReportsThe Internet of Things represents a significant and growing target area for cyber criminals. The growth in cryptocurrencies is focussing cyber criminals on the benefits of crypto-mining malware. Individuals, businesses and governments need to include IoT related cyber risks in their security controls and plans. -
September 21, 2017The growth of Insurtech – Insurance companies should be worried
Focus Report, Free Sample, ReportsIn terms of new global investment, Insurtech has been one of the fastest growing Fintech segments over the last eighteen months – and it is now starting to pick up pace in Australia. This report explains what Insurtech is and why it matters. -
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August 16, 2017Follow the Money
Focus Report, Free Sample, ReportsAustralia’s VC market continued to advance, with over US$670m of investments made in FY17. Investments were supported by favourable economic and business conditions and record-high fundraising activities.$0.00 -
July 14, 2017Lending Disruption – Fact or fiction?
Free Sample, ReportsThe big four banking oligopoly have had a highly profitable run over the last five years. During this time start-ups have emerged to challenge the dominance of the banks in both consumer lending and business lending markets. Whilst the challengers are growing and gaining traction, the odds are still stacked against many of them. Will they survive and what are the likely outcomes?
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May 25, 2017Disruption in Payments: Time to throw out your wallet?
ReportsAs the usage of cash declines, we are trending towards a cashless society supported by new payment technologies.Within the next decade, cashless methods will be preferred, and have mostly positive implications for both businesses and consumers.However, cash will still be with us and being used for well over the next 20 years.
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May 17, 2017A$1bn at stake for fund managers from Robo-Advice disruption
ReportsRobo-advice can offer a lower cost structure, similar financial results and greater transparency over traditional asset managers and is going to have a significant impact on the wealth management industry.
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February 19, 2018Top Australian Healthcare Tech trends to watch in 2018
Flash Report, Free Sample, Reports$0.00Digital and mobile technologies are providing the foundation for many emerging healthcare innovations that are disrupting the Australian healthcare market. To keep pace with this continuous transformation, healthcare operators will need to embrace new technologies to improve health outcomes, be cost effective and provide timely care.
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October 11, 2017Game of Genomes – decoding the future of healthcare
Free Sample, ReportsMainstream genomics is still nascent but further decline in sequencing costs will drive adoption. Unprecedented intelligence (i.e. big data) involving the genotypic and phenotypic data of individuals will completely reengineer our health system over the next decade. Genomics is a game changer that will reshape not only the clinical health system but also our personal wellness and lifestyle decisions. -
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September 6, 2017National Digital Health Strategy – one byte at a time
Free Sample, ReportsIt’s time to move on from relying on doctors’ memories and the pulling together of fragmented information from across the health system. The National Digital Health Strategy outlines the transformation of the Australian healthcare system from a paper-based records system to a digital one that ensures the right information, at the right place and at the right time.$0.00 -
August 10, 2017
Disruption in Aged Care – Rise of the Silver Surfer
ReportsAustralia is in the early stages of a ‘silver tsunami’ that will play out over the next three decades. Like its population, the aged care industry is getting long in the tooth and the convergence of an ageing population, aged care reforms, evolving business models and technological disruption is about to reshape multiple areas of the aged care ecosystem. -
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November 6, 2015Disruption In – Disruption is good for health
Free Sample, ReportsOur proprietary Disruption Framework has identified the Healthcare industry as vulnerable to disruption. We estimate that A$23b of A$130b (revenue) is susceptible to disruption with a proportion of this at risk with big data in eHealth, point of care testing and mHealth emerging as the key disruptive trends. We believe Telstra will lead the disruption in healthcare.
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January 23, 2018Wind Farms – Adding wind to Australia’s energy sails
Flash Report, Free Sample, ReportsWind energy already accounts for 30 percent of renewable generation and over 5 percent of total electricity generation in Australia. Falling development and generation costs will drive the growth of wind as an energy source into the future.$0.00 -
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November 6, 2017Green Hydrogen – Opportunity or hype?
Flash Report, Free Sample, ReportsHydrogen as an energy carrier has long been discussed as a pathway to a greener future and although technology progress has been slow, recent developments point to tangible progress.Diversity of sources, security and flexibility within Australia’s energy system is the key to a reliable energy future; hydrogen could play an important role alongside other energy technologies. -
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October 13, 2017Energy Roundtable Breakfast – key findings
Focus Report, Free Sample, ReportsWhat will Australia’s energy future look like in 2030? Will it be business as usual? …… a utopian renewable energy reliant world? …… one powered by nuclear? …… or one with high technological consumption control?
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September 13, 2017AEMO Report – exacerbating our issues not finding solutions
Flash Report, Free Sample, ReportsAEMO’s report to the Government appropriately highlights the risks to the NEM following closure of key dispatchable capacity. However, the report and the Government’s reaction adds to the hysteria rather than addressing policy that provides incentives to invest in appropriate generation assets.$0.00 -
August 30, 2017‘Charging’ ahead – Five key trends reshaping the electricit [...]
Free Sample, ReportsThe traditional electricity industry is under significant pressure as rapid advances in technology are upending the electricity value chain. Disruption in electricity is no longer an ‘if’. Think when, how fast and how big. Batteries, renewables, prosumers and distributed electricity systems, electric vehicles and the Internet of Energy are the key trends leading the charge. -
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August 4, 2017Residential rooftop solar set to soar
Flash Report, Free Sample, ReportsSolar rooftop economics are approaching a tipping point. Not only does electricity generated from residential rooftop solar households reduce greenhouse gas emissions, recent market trends indicate residential rooftop solar is the solution for households to withstand increasing electricity prices. -
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July 18, 2017Disruption in Electricity – an electrifying start to a sunny fu [...]
Free Sample, ReportsWith the appropriate political and regulatory support and after years in the wilderness Australia now approaches a period of rapid change to the way in which it produces and consumes energy. This will mark the end of a ‘lazy’ era of burning fossil fuels and propel Australia’s energy sector toward being regarded as highly innovative with the ability to export our innovation and skills.
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June 21, 2017The Finkel Review – A politically acceptable outcome for no [...]
Free Sample, ReportsThe Finkel review has been released and appears to have come up with a ‘politically acceptable’ solution. However, even if all the recommendations are accepted, the future impact on the electricity market is far from certain. Human behaviour and the declining cost of renewables will have a more profound effect than the Finkel review suggests in its modelling.
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June 21, 2017Snowy Hydro 2.0: Good but not enough?
Free Sample, ReportsSnowy Hydro 2.0 has been proposed by the Federal Government to alleviate the Australian Energy Crisis. Will it be the golden solution they hoped for, or should the government consider alternative investments to allow a more effective or timely solution?
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April 19, 2017Batteries have become the mainstream solution to the energy crisi [...]
Free Sample, ReportsFollowing the blackouts in South Australia, a strong debate around the future of electricity has been sparked within both the state and national governments. We take a closer look at this debate, summarise the causes, consequences and likely outcomes, whilst discussing the impact to the wider Australian energy market. -
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February 15, 2017Towards Australia’s Smart Energy Future
Free Sample, ReportsAs technological developments continue Smart Energy is increasingly being adopted by the government, businesses and consumers in order to address climate issues and cut energy costs. We discuss the uptake of Smart Energy within Australia including the key technologies, government incentives driving uptake and the anticipated disruption from future changes.
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September 4, 2018
When an Amazon TV show wins a Golden Globe, Amazon sells more sho [...]
Focus Report, ReportsOver the past two decades, Amazon has grown to become the largest ecommerce player in the world. But to think of it as just an online retailer would be underestimating its presence across multiple other services and markets. Within this, Amazon Video is fast emerging as a key pillar of Amazon’s overall business as it uses video to increase Prime memberships and improve user stickiness on the Amazon platform. -
August 30, 2018
IoT in Transport – rise of the connected transport market
Focus Report, ReportsThe Internet of Things is set to transform the transport industry by driving real-time connectivity between vehicles and transport infrastructure. In Australia, the transport IoT market is forecast to generate about A$5bn in revenue in the next five years. -
August 9, 2018
IoT Connectivity Technologies
Focus Report, ReportsThe Internet of Things is becoming a pervasive part of our technology ecosystem. At its heart, communication and connectivity technologies enable IoT devices to interact and share information. There are a number of connectivity options available for IoT networks, each with specific characteristics which makes them suitable for specific applications and use cases. -
FreeAugust 5, 2018
Venture Advisory Monthly Wrap – July 2018
Free Sample, Monthly wrap, ReportsVenture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things share price performers ( best and worst performers during the month), company news flow and ASX release updates and respective valuation trading multiples. The report is designed for busy executives and investment professionals that want to get a flash update and stay on top of key news flow. If you wish to find out more or have an deeper enquiry please feel free to contact Nigel Pugh or Sarah Houghton.$0.00 -
July 30, 2018
Quality media, Ozone protection
Focus Report, ReportsThe Telegraph, The Guardian and News UK (The Times and The Sun) will jointly invest in The Ozone Project to develop a state-of-the-art platform to sell their digital inventory. Ozone will add value to news digital inventory and seek to win back advertiser expenditure on Facebook and Google’s various properties, (indirectly) reigniting interest in placement next to quality news media content. Each JV participant operates a distinct business model, which risks friction, but this digital reboot is crucial. By 2020, Ozone could add circa £30 million per annum – not a trivial contribution to a national newspaper newsroom. -
July 12, 2018
Virtual Reality in 2018: Ready Player None?
Focus Report, ReportsYet another annual hype cycle in 2018 can’t hide a tepid consumer appetite for all VR platforms and heavy weather for the industry as a whole. The launch of Oculus GO, a standalone device at an attractive price, is a milestone for VR; nevertheless, even Facebook remains worried about reach and the state of the industry. Mobile AR is still a strategic focus for Google and Apple, producing diverse applications instead of just games, but new headsets from Microsoft and Magic Leap which promise advanced MR experiences have no launch dates. -
July 9, 2018
Europe’s Creative Hubs Update 2018
Market Outlook, ReportsThis third edition of Europe's Creative Hubs, produced on behalf of Bertelsmann, highlights the challenges of the digital age for enterprises of the creative industries of France, Germany and the UK from new consumer behaviors and the advent of new competitors and new forms of competition for users and customers from tech giants, Amazon, Facebook, Google and Netflix. The report calls upon policymakers in Europe to ensure a level playing field for traditional media in the key areas of taxation, competition law, privacy and data protection, highlighting the interaction of these three in the market for online advertising. -
July 6, 2018
Westpac leads the Fintech investment charge
Focus Report, ReportsAustralia’s largest banks have been very active in the fintech market. This report explores the investments that they have made and considers their contrasting approaches to those investments. -
FreeJuly 5, 2018
Venture Advisory Monthly Wrap – June 2018
Free Sample, Monthly wrap, ReportsVenture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things share price performers ( best and worst performers during the month), company news flow and ASX release updates and respective valuation trading multiples. The report is designed for busy executives and investment professionals that want to get a flash update and stay on top of key news flow. If you wish to find out more or have an deeper enquiry please feel free to contact Nigel Pugh or Sarah Houghton.$0.00 -
July 4, 2018
The eSports economy – it’s just getting started…
Focus Report, ReportseSports has grown in popularity beyond being a niche form of entertainment to becoming a powerful means to engage millennial audiences. There’s significant investment from major media corporations, mainstream advertisers and professional sports franchises, demonstrating the emerging importance of eSports. -
June 21, 2018LEO Satellites: The race to connect the unconnected
Market Outlook, ReportsTraditional satellites have struggled to meet the connectivity requirements of current IoT applications and are expensive for existing segment users. Low Earth Orbit satellite technologies can complement traditional satellite and terrestrial services to solve IoT connectivity issues and the growing broadband digital divide. -
June 19, 2018Advertising after the turning point: When offline is the exceptio [...]
Market Outlook, ReportsOnline advertising became the majority of all UK ad spend last year, in step with China but ahead of all other major markets. Direct response has further increased its share to 54% of UK ad spend, fuelled by the self-serve platforms of Google, Facebook and Amazon, while content media nets just 11% of the online advertising pot. We estimate that all online-delivered channels - including "pure play" online properties, broadcaster VOD, digital out-of-home and online radio - could account for well over 60% of UK ad spend by 2020, but only with improved commitment to industry governance. -
June 12, 2018
Advertising Market Outlook:The Digital juggernaut continues with [...]
Market Outlook, ReportsVenture Insights expects total advertising spend to grow at a 2.7% CAGR to $17.4bn in 2022. Digital will account for the majority of the growth in AdEx through our forecast horizon increasing from 49% of the market today to 66% by 2022. While we see risks to TV audiences and hence ad revenues, we believe the TV model is far from dead. TV can continue to attract significant audience reach (and engagement) but it must evolve to stay relevant. Overall we forecast -3.7% CAGR (to FY22) for TV AdEx. -
June 11, 2018
Disruption in Premier League football? 2018 auction finally over
Focus Report, ReportsThe latest auction of live Premier League broadcast rights commencing in 2019/20 has concluded at last, with three different winners for the first time. The total sum has not been confirmed, but it looks to be down c. 10% from the previous auction at £1.55 billion per season—still substantial, and not far off the BBC’s entire TV content budget. As we predicted, Sky and BT remain dominant, winning 180 of the 200 games per season, whilst new entrant Amazon picked up one of the leftover packages at what looks to be a very low price. -
June 7, 2018Mobile Visual Search: A Picture is Worth a Thousand Searches
Focus Report, ReportsIn the past few years, search technologies have seen dramatic improvements with both voice and visual search emerging as alternatives to traditional text-based keyword search. While voice search may have gotten a head start, rapid improvements in AI and the quality of smartphone cameras means that Mobile Visual Search is fast catching up. -
FreeJune 5, 2018
Venture Advisory Monthly Wrap – May 2018
Free Sample, Monthly wrap, ReportsVenture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things share price performers ( best and worst performers during the month), company news flow and ASX release updates and respective valuation trading multiples. The report is designed for busy executives and investment professionals that want to get a flash update and stay on top of key news flow. If you wish to find out more or have an deeper enquiry please feel free to contact Nigel Pugh or Sarah Houghton.$0.00 -
May 29, 2018Machine Learning – connecting the dots…
Flash Report, ReportsMachine learning is a branch of Artificial Intelligence that enables computer programs to learn, analyse and identify trends and patterns within large sets of data. Rapid innovation in recent years has seen exciting advances in machine learning with the rise of multiple use cases across a range of industries. -
May 25, 2018Retailing in the material world
Focus Report, ReportsEcommerce has grown to 17.5% of retail spend, and accounts for almost all growth in spend. Physical retailers are beginning to feel the effects, with chains reporting falling profits and even bringing in administrators. The UK picture is muddied by a general lack of economic recovery, and irrelevant comparisons with the US. Finished goods stores, however, are clearly under extreme pressure. We are moving into a retail paradigm of online and offline elements being freely matched. To survive this transition, brick and mortar retailers have to become differentiated experiences and close the data gap with e-retailers -
May 22, 2018
Blockchain in Telecom – moving from concept to reality…
Flash Report, ReportsIn the past decade, Telcos have had to deal with a number of disruptive technologies. The pace of change is set to continue as Telcos transition towards a 5G and IoT enabled ecosystem. As Telcos seek new revenue opportunities and a way to streamline operations, Blockchain is rapidly evolving to become one of the most promising emerging innovations for telecoms today. -
May 17, 2018Wall St Shuffle: Spotify’s non-IPO
Focus Report, ReportsSpotify is now the world’s first publicly listed on-demand music streaming service. Its global footprint generated €4 billion in 2017 from over 70 million paying subscribers and 90 million ad-funded users across 65 countries. As it expands, the service is steadily but surely moving ever closer to profitability, with a 2019 operating profit a very real prospect. So far and for the near future, Spotify’s global pre-eminence versus competition from Apple, Amazon and Google proves remarkably resilient. Plans to build upon its differentiating features will become ever more decisive as the tech titans will continue to wield their resources and ecosystems against the comparatively undiversified company.
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NewSeptember 17, 2018
UK Broadcast TV is growing very old, very quickly
Market Outlook, ReportsUK mobile market service revenue grew by 1.7% in Q2, up from 1.3% in the previous quarter, a disappointing result in the context of boosts from both IFRS 15 accounting and the annual price rises in the quarter. O2 was the star performer this quarter, with its service revenue growth leaping ahead to claim the top spot. BT/EE’s service revenue growth declined on an underlying basis, with weak contract net adds over the last six months catching up with it, and H3G and Vodafone were slightly improved and steady respectively excluding some one-off effects. Next quarter, the impact from the EU roaming cuts will annualise out, providing a substantial fillip to all operators. Ceteris paribus, this would put market growth in the vicinity of 4%, a figure not reached for years. -
September 11, 2018
UK mobile market Q2 2018: Disappointment before dawn
Market Outlook, ReportsUK mobile market service revenue grew by 1.7% in Q2, up from 1.3% in the previous quarter, a disappointing result in the context of boosts from both IFRS 15 accounting and the annual price rises in the quarter. O2 was the star performer this quarter, with its service revenue growth leaping ahead to claim the top spot. BT/EE’s service revenue growth declined on an underlying basis, with weak contract net adds over the last six months catching up with it, and H3G and Vodafone were slightly improved and steady respectively excluding some one-off effects. Next quarter, the impact from the EU roaming cuts will annualise out, providing a substantial fillip to all operators. Ceteris paribus, this would put market growth in the vicinity of 4%, a figure not reached for years. -
September 10, 2018
Japan’s recorded music market starts to stream
Flash Report, ReportsRecorded music revenues in Japan are stuck in decline as physical sales sag, although 2017 marks the first year when streaming gained a foothold with 8 million subscribers. J-pop fans spend on 'experiences' with their idols including events, merchandise, CDs and DVDs, which streaming cannot replicate. Top native LINE MUSIC offers integration with a popular messaging app and bundling with mobile. Serving international repertoire, Apple Music claims more subscribers than Spotify in Japan, which is more localised, and has most users on the free tier. Amazon Prime Music is a looming constraint on the adoption of subscriptions. -
September 4, 2018
When an Amazon TV show wins a Golden Globe, Amazon sells more sho [...]
Focus Report, ReportsOver the past two decades, Amazon has grown to become the largest ecommerce player in the world. But to think of it as just an online retailer would be underestimating its presence across multiple other services and markets. Within this, Amazon Video is fast emerging as a key pillar of Amazon’s overall business as it uses video to increase Prime memberships and improve user stickiness on the Amazon platform. -
September 3, 2018
UK Commercial TV impact trends: better than viewing trends, worse [...]
Focus Report, ReportsThere has been no shortage of attention paid to declining TV viewing over recent years, but much of it focuses on overall viewing time rather than advertising delivery. This is to overlook the engine driving most of the UK’s television industry. Commercial impact delivery has held up well relative to overall viewing, and is strong for certain key demographics. Nonetheless there are generational and behavioural changes afoot which are exerting downward pressures on impacts, especially for younger audiences. An archipelago of Love Islands is needed (Stranger Things have happened). -
August 29, 2018
UK broadband, telephony and pay TV trends Q2 2018: Great volume, [...]
Market Outlook, ReportsThe UK broadband subscription market re-accelerated in the June quarter, bucking a consistent downwards trend that has been established for over three years, with line rental and pay TV subscriptions also accelerating having both also experienced a more general downwards shift over the last few years. The broadband acceleration may be short-lived, with line rental only a little more sustainable. Pay TV is perhaps the most robust recovery given that the over-the-top new entrants (primarily Netflix and Amazon) are now firmly establishing themselves as add-ons not substitutes.Revenue growth however took a more familiar path, dipping to 1.6% from 2.8% in the previous quarter, as BT’s overlapping price increase predictably dropped out, partially mitigated by an improvement in ARPU growth at TalkTalk caused by an improved (i.e. slightly less damaging) mix effect. -
August 27, 2018
Audible, audiobooks and lessons from Amazon in the UK
Flash Report, ReportsAudiobooks are growing fast, driven by smartphone adoption and better supply, as well as interest from people who don’t usually buy books, such as young men. The sector is dominated by the presence of Audible, Amazon’s audiobook publisher/retailer, which has driven growth of audiobooks but put publishers under pressure. Its strategy is a lesson in Amazon’s approach to media. Audio is an opportunity to sell to new customers, but publishers must acquire and use rights responsibly, and experiment while not letting the audio tail wag the print dog.Sector Media. -
August 27, 2018
Nine Entertainment FY18 earnings update: digital drives growth
Flash Report, ReportsOn 23rd August 2018, Nine Entertainment reported its FY18 earnings. Strong ratings performance in key demographics, rise in digital subscriber base and focus on controlling costs drove an uplift in revenue and earnings for FY18.Sector Media. -
August 23, 2018
Seven West Media FY18 earnings update: going all in on cricket
Flash Report, ReportsOn 21th August 2018, Seven West Media reported its FY18 earnings. While an improving core business and focus on cost reduction delivered operating profits that were at the upper end of guidance, new programming and sports content is expected to drive ratings and financial performance going forward.Sector Media. -
August 21, 2018
oOh!media earnings update: double digit revenue growth
Flash Report, ReportsOn 20th August 2018, oOh!media reported its first half CY18 earnings. While digital continues to underpin majority of the growth, product and customer diversification ensured double-digit revenue growth despite fluctuations in certain business segments.Sector Media. -
August 21, 2018
Regulating harmful video content and advertising online: Publishe [...]
Market Outlook, ReportsVideo-sharing platforms, such as YouTube and Facebook video, enjoy a light-touch regulatory regime for harmful content and advertising. As video viewing of non-broadcaster content grows, the regulatory gap between TV broadcasters and video-sharing platforms widens, part of a broader uneven playing field for publishers and platforms. However, there is momentum against this: the “platforms vs publishers” divide looks set to weaken in EU law, and the platforms themselves are investing more in combatting harmful content within a self-regulatory regime, though their internal policies and outcomes are still opaque. Effective and fair regulation of video-sharing platforms would involve the balancing of national freedom of speech conventions and the public utility of user-generated video hosting with concerned stakeholder views: something approaching a co-regulatory system for online video-sharing platforms. -
August 20, 2018
Sky UK 2017/18 full year results: Winning the game of content
Focus Report, ReportsSky maintained strong revenue growth of 5% in 2017/18, with EBITDA and operating profit both bouncing back into strong positive territory after the UK Premier League rights hit of 2016/17. The UK grew revenue well and profits better; Italy performed well and should improve much further given the retreat of its principal competitor; Germany is more challenged, but extra content investment may aid sustained growth. Sky is proving adept at managing content costs and revenue in a changing environment, with investment, cost control and monetisation all being put to effective use as the content type demands it. -
August 20, 2018
Virgin Media Q2 2018 results: Measured approach in a tough market
Focus Report, ReportsVirgin Media had a mixed quarter, with subscriber ARPU growth maintained, partly driven by a triple play focus with pay TV and telephony adds much improved, but subscriber and broadband net adds unchanged. Cable revenue growth did slow from 3.6% to 3.1%, mainly due to the previous quarter’s net adds slowdown working through, and it is still growing the fastest of the big operators in a slow-growth market that still suffers from pricing pressure at the low end. Its network roll-out was slower than last year and only just above the weather-impacted previous quarter, which appears to be deliberate, and which may at least partly relate to an uncertain regulatory and commercial climate over ‘full fibre’ roll-out by others. -
August 17, 2018
Local TV: Five years after launch
Focus Report, ReportsAlthough launched with an array of public service goals in mind, local TV’s flawed design has created a sector struggling to live up to its optimistic ambitions. Five years and £37 million of licence fee monies later, it is unclear what public service contributions are being made, or whether the scheme has provided value-for-money. A wholesale review of the sector is urgently needed. The vision of a “thriving and sustainable” sector has fallen flat. Most licences remain loss-making, with doubts as to their long-term viability. Those operating low-cost models seem best placed to survive.Sector Media. -
August 16, 2018
Fairfax FY18 earnings update: digital remains the main driver
Flash Report, ReportsOn 15th August 2018, Fairfax Media reported its last full year earnings as an independent news publisher. Digital assets remained the key driver of earnings while regional and community print continued its structural decline.Sector Media. -
August 15, 2018
Consumer magazine publishing: Quality, not quantity
Market Outlook, ReportsThe decline in demand in print presents trading challenges, but the more immediate pressures are on the supply side, with a 15% rise in paper prices accentuating the burden of production and distribution costs.With digital advertising growing at stubbornly low rates, UK publishers need to return to their fundamental consumer-centred strengths by switching their strategic attention towards strong brands, curation, and community. The case for specialist, branded publishing media remains robust: products, services, and consumers are still best brought together in an authoritative, trusted media environment. Advertisers and agencies (and also media) have undervalued the effectiveness of those environments, and direct-to-consumer opportunities have been exaggerated by many brands. -
August 14, 2018
Down, but not out: Why there’s still life in terrestrial broadc [...]
Focus Report, ReportsAustralian viewers are shifting irresistibly towards on-demand formats and IP-based video viewing. But is there still life in the terrestrial platform? And what does this mean for broadcasters and other industry participants? You could be forgiven for thinking that broadcast television is an anachronism, a relic of a time when audiences watched what was programmed, when it was programmed (more or less), and knew no better. Likewise, when every other headline lauds the benefits of online content delivery (though perhaps not so much at the moment given Optus’ recent World Cup travails – more on that later), it is surely a forgone conclusion that terrestrial broadcast is in terminal decline, following Blockbuster and Borders to the exits. However, our analysis suggests that while IP delivery is ascendant, there is still likely to be a significant and long-term role for terrestrial broadcast in Australia. In this report, we explore the factors driving the shift towards IP-based content delivery and argue why this shift does not spell the death of terrestrial broadcast, at least over the coming decade.Given this assessment, broadcasters and other industry participants need to carefully balance the expected ascendancy of IP with the potential longevity of the DTT platform as they place bets on the future of video entertainment. -
August 7, 2018
BT Q1 2018/19 results: On target in the short term, making progre [...]
Focus Report, ReportsBT’s Q1 results were fairly robust given a number of one-offs hitting in the quarter, with revenue growth of -2% in line with full year guidance, EBITDA growth of 1% ahead of plan, and a number of metrics looking promising. Openreach’s newly announced volume discount plans offer advantages in growing high and higher speed volumes, infrastructure competitiveness and regulatory pricing pressure, while giving up little in external revenue, a win-win-win for BT at least. Full-fibre regulation appears to be slowly moving towards more clarity, but is still far too unclear to justify an accelerated investment, with critical issues being ducked (for now) by government and Ofcom alike. -
FreeAugust 5, 2018
Venture Advisory Monthly Wrap – July 2018
Free Sample, Monthly wrap, ReportsVenture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things share price performers ( best and worst performers during the month), company news flow and ASX release updates and respective valuation trading multiples. The report is designed for busy executives and investment professionals that want to get a flash update and stay on top of key news flow. If you wish to find out more or have an deeper enquiry please feel free to contact Nigel Pugh or Sarah Houghton.$0.00 -
August 1, 2018
Hulu: Why Disney wants 21st Century Fox
Focus Report, ReportsDisney’s potential acquisition of certain 21st Century Fox assets is assuredly a play for further scale at a time when the company’s traditional domain, the family home, is increasingly welcoming services such as Netflix. The deal will consolidate Disney’s dominant film business. But also, the robustness of traditional television, especially 21CF’s cable interests, along with IP assets, will allow Disney to better control the inevitable viewer transition from linear to online and on-demand. Becoming the one media company with both a strong broadcast and online offering—the control of Hulu, a new Disney streaming service, ESPN+ and other add-on services—could grant Disney the ability to navigate the storm of change and dictate its own future.
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NewSeptember 19, 2018
TPG FY18 earnings update: Steady, as merger approaches
Focus Report, ReportsOn 18th September 2018, TPG announced its full FY18 financial results as an independent entity. Consumer performance has declined slightly, but TPG has extracted value out of its fibre assets in the corporate segment. Overall, the outlook for TPG is positive as it looks to utilise Vodafone’s mobile capabilities and branding to complement its own broadband strengths. -
NewSeptember 18, 2018
nbn Corporate Plan 2019 – challenging times ahead
Focus Report, Reportsnbn recently released its Corporate Plan 2019. Key performance targets were not met largely due to a delay in the HFC rollout, and as a result future forecasts were downgraded, and revenues deferred. As the rollout passes the halfway mark, nbn must focus on sustaining infrastructure quality, adopting a successful wholesale pricing strategy and address customer complaints issues. -
NewSeptember 17, 2018
UK Broadcast TV is growing very old, very quickly
Market Outlook, ReportsUK mobile market service revenue grew by 1.7% in Q2, up from 1.3% in the previous quarter, a disappointing result in the context of boosts from both IFRS 15 accounting and the annual price rises in the quarter. O2 was the star performer this quarter, with its service revenue growth leaping ahead to claim the top spot. BT/EE’s service revenue growth declined on an underlying basis, with weak contract net adds over the last six months catching up with it, and H3G and Vodafone were slightly improved and steady respectively excluding some one-off effects. Next quarter, the impact from the EU roaming cuts will annualise out, providing a substantial fillip to all operators. Ceteris paribus, this would put market growth in the vicinity of 4%, a figure not reached for years. -
September 13, 2018
IoT Impact 2018 – Preparing Australia for IoT
Flash Report, ReportsThe inaugural hosting of Australia’s largest Internet of things (IoT) conference and expo IoT Impact was held at the University of Technology, Sydney on 10-11 September 2018. IoT is truly here to stay and already making huge impacts across a variety of sectors. Government and private companies need to collaborate to ensure successful implementation of IoT to deliver long term benefits. -
September 11, 2018
UK mobile market Q2 2018: Disappointment before dawn
Market Outlook, ReportsUK mobile market service revenue grew by 1.7% in Q2, up from 1.3% in the previous quarter, a disappointing result in the context of boosts from both IFRS 15 accounting and the annual price rises in the quarter. O2 was the star performer this quarter, with its service revenue growth leaping ahead to claim the top spot. BT/EE’s service revenue growth declined on an underlying basis, with weak contract net adds over the last six months catching up with it, and H3G and Vodafone were slightly improved and steady respectively excluding some one-off effects. Next quarter, the impact from the EU roaming cuts will annualise out, providing a substantial fillip to all operators. Ceteris paribus, this would put market growth in the vicinity of 4%, a figure not reached for years. -
September 5, 2018
High 5G consumer interest keeps pressure on network rollout
Flash Report, ReportsOperator positioning for 5G network plans in Australia and New Zealand continues to pick up pace – as Venture Insights’ latest consumer mobile survey demonstrates strong interest from Australian consumers. Leadership in 5G network rollout is likely to provide strong benefits from the acquisition of early adopters from competing networks.Sector Telecom. -
September 3, 2018
UK Commercial TV impact trends: better than viewing trends, worse [...]
Focus Report, ReportsThere has been no shortage of attention paid to declining TV viewing over recent years, but much of it focuses on overall viewing time rather than advertising delivery. This is to overlook the engine driving most of the UK’s television industry. Commercial impact delivery has held up well relative to overall viewing, and is strong for certain key demographics. Nonetheless there are generational and behavioural changes afoot which are exerting downward pressures on impacts, especially for younger audiences. An archipelago of Love Islands is needed (Stranger Things have happened). -
FreeAugust 31, 2018
Consumers lose while the market wins: TPG and Vodafone merger
Focus Report, Free Sample, ReportsTPG and Vodafone announced the merging of the two companies to form a third major telco which will challenge leaders Telstra and Optus. This move is positive news for the market as the likelihood of a mobile price war is expected to be reduced, stabilising ARPUs and margins.Sector Telecom. -
August 30, 2018
IoT in Transport – rise of the connected transport market
Focus Report, ReportsThe Internet of Things is set to transform the transport industry by driving real-time connectivity between vehicles and transport infrastructure. In Australia, the transport IoT market is forecast to generate about A$5bn in revenue in the next five years. -
August 29, 2018
UK broadband, telephony and pay TV trends Q2 2018: Great volume, [...]
Market Outlook, ReportsThe UK broadband subscription market re-accelerated in the June quarter, bucking a consistent downwards trend that has been established for over three years, with line rental and pay TV subscriptions also accelerating having both also experienced a more general downwards shift over the last few years. The broadband acceleration may be short-lived, with line rental only a little more sustainable. Pay TV is perhaps the most robust recovery given that the over-the-top new entrants (primarily Netflix and Amazon) are now firmly establishing themselves as add-ons not substitutes.Revenue growth however took a more familiar path, dipping to 1.6% from 2.8% in the previous quarter, as BT’s overlapping price increase predictably dropped out, partially mitigated by an improvement in ARPU growth at TalkTalk caused by an improved (i.e. slightly less damaging) mix effect. -
August 24, 2018
Vocus FY18 earnings update: Focus on the business segment
Flash Report, ReportsOn 22nd August 2018, Vocus announced its FY18 financial results. Despite revenue and EBITDA increasing slightly, net profit fell 16%. Its SMB product Commander posted a revenue decline of 15%. Vocus needs to take immediate action to make the most of its fixed asset opportunities, acquire larger market share in Enterprise in NSW and VIC, and focus on differentiated products that reduce its dependence on legacy solutions.Sector Telecom. -
August 20, 2018
Virgin Media Q2 2018 results: Measured approach in a tough market
Focus Report, ReportsVirgin Media had a mixed quarter, with subscriber ARPU growth maintained, partly driven by a triple play focus with pay TV and telephony adds much improved, but subscriber and broadband net adds unchanged. Cable revenue growth did slow from 3.6% to 3.1%, mainly due to the previous quarter’s net adds slowdown working through, and it is still growing the fastest of the big operators in a slow-growth market that still suffers from pricing pressure at the low end. Its network roll-out was slower than last year and only just above the weather-impacted previous quarter, which appears to be deliberate, and which may at least partly relate to an uncertain regulatory and commercial climate over ‘full fibre’ roll-out by others. -
FreeAugust 17, 2018
Telstra FY18 earnings update: there’s a lot riding on 5G and Io [...]
Flash Report, Free Sample, ReportsOn 16th August 2018, Telstra announced its FY18 earnings. While subscriber growth remained strong, it was not strong enough to offset ARPU declines. Telstra is betting its future on new initiatives (IoT) and network technologies (5G) to remain ahead in times of increasing competitive pressure in both fixed and mobile, however it faces competition from multiple other market participants.$0.00Sector Telecom. -
August 14, 2018
Down, but not out: Why there’s still life in terrestrial broadc [...]
Focus Report, ReportsAustralian viewers are shifting irresistibly towards on-demand formats and IP-based video viewing. But is there still life in the terrestrial platform? And what does this mean for broadcasters and other industry participants? You could be forgiven for thinking that broadcast television is an anachronism, a relic of a time when audiences watched what was programmed, when it was programmed (more or less), and knew no better. Likewise, when every other headline lauds the benefits of online content delivery (though perhaps not so much at the moment given Optus’ recent World Cup travails – more on that later), it is surely a forgone conclusion that terrestrial broadcast is in terminal decline, following Blockbuster and Borders to the exits. However, our analysis suggests that while IP delivery is ascendant, there is still likely to be a significant and long-term role for terrestrial broadcast in Australia. In this report, we explore the factors driving the shift towards IP-based content delivery and argue why this shift does not spell the death of terrestrial broadcast, at least over the coming decade.Given this assessment, broadcasters and other industry participants need to carefully balance the expected ascendancy of IP with the potential longevity of the DTT platform as they place bets on the future of video entertainment. -
August 9, 2018
IoT Connectivity Technologies
Focus Report, ReportsThe Internet of Things is becoming a pervasive part of our technology ecosystem. At its heart, communication and connectivity technologies enable IoT devices to interact and share information. There are a number of connectivity options available for IoT networks, each with specific characteristics which makes them suitable for specific applications and use cases. -
August 7, 2018
BT Q1 2018/19 results: On target in the short term, making progre [...]
Focus Report, ReportsBT’s Q1 results were fairly robust given a number of one-offs hitting in the quarter, with revenue growth of -2% in line with full year guidance, EBITDA growth of 1% ahead of plan, and a number of metrics looking promising. Openreach’s newly announced volume discount plans offer advantages in growing high and higher speed volumes, infrastructure competitiveness and regulatory pricing pressure, while giving up little in external revenue, a win-win-win for BT at least. Full-fibre regulation appears to be slowly moving towards more clarity, but is still far too unclear to justify an accelerated investment, with critical issues being ducked (for now) by government and Ofcom alike. -
FreeAugust 5, 2018
Venture Advisory Monthly Wrap – July 2018
Free Sample, Monthly wrap, ReportsVenture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things share price performers ( best and worst performers during the month), company news flow and ASX release updates and respective valuation trading multiples. The report is designed for busy executives and investment professionals that want to get a flash update and stay on top of key news flow. If you wish to find out more or have an deeper enquiry please feel free to contact Nigel Pugh or Sarah Houghton.$0.00 -
August 2, 2018
Revenues down, guidance in the balance: Vodafone Q1 2018/19 resul [...]
Focus Report, ReportsEBITDA growth guidance of 1-5% is in question with group revenues flat to down. Counting AMAP growth in local currencies helps, as will cost control and roaming relief. Sustaining growth in Germany will be key; convergence-led ARPU declines could prove to be something Vodafone can’t afford. Vodafone’s UK business performed strongly in terms of mobile subscribers and fixed business financials, although revenue growth is still lacklustre. Profitability is expected to increase markedly, boosted 10ppts by roaming tariff relief. Although we view Iliad’s business model in Italy as unsustainable, it will nonetheless continue to put significant pressure on Vodafone Italy’s ARPU, which is almost three times that of Iliad’s package. -
August 1, 2018
Hulu: Why Disney wants 21st Century Fox
Focus Report, ReportsDisney’s potential acquisition of certain 21st Century Fox assets is assuredly a play for further scale at a time when the company’s traditional domain, the family home, is increasingly welcoming services such as Netflix. The deal will consolidate Disney’s dominant film business. But also, the robustness of traditional television, especially 21CF’s cable interests, along with IP assets, will allow Disney to better control the inevitable viewer transition from linear to online and on-demand. Becoming the one media company with both a strong broadcast and online offering—the control of Hulu, a new Disney streaming service, ESPN+ and other add-on services—could grant Disney the ability to navigate the storm of change and dictate its own future. -
July 26, 2018
The drive for convergence: a value-destructive strategy
Focus Report, ReportsMany European telecoms operators are pursuing a fixed/mobile convergence strategy on the pretext that the addition of mobile reduces churn. We see no evidence of churn reduction from this strategy. Discounts required to encourage take-up of fixed/mobile services are often value-destructive, even before competitor reaction: a 10% bundle discount necessitates a 2ppt improvement in churn to wash its face economically. M&A premia on the basis of convergence synergies raise the hurdle even higher. Most UK operators offer very limited discounts on fixed/mobile bundles for now, sensibly focusing on enhanced services. Vodafone is the most aggressive, albeit less so than it is elsewhere. All UK players should hope that it stays this way.