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.

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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.

New

August 21, 2018
Regulating harmful video content and advertising online: Publishe [...]
Market Outlook, Reports
Video-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.

Video-sharing platforms, such as YouTube and Facebook video, enjoy a light-touch regulatory regime for harmful content and advertising. As video viewing of non- [...]
Sector Internet, Media, TV.
New

August 20, 2018
Sky UK 2017/18 full year results: Winning the game of content
Focus Report, Reports
Sky 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.

Sky 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 L [...]
Sector Fixed Line (Internet and Voice), Media, Mobile, Non-UK Media, TV, UK Media.
New

August 20, 2018
Virgin Media Q2 2018 results: Measured approach in a tough market
Focus Report, Reports
Virgin 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.

Virgin 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 [...]
Sector Fixed Line (Internet and Voice), Internet, Media, Telecom, UK Media.
New

August 17, 2018
Telstra FY18 earnings update: there’s a lot riding on 5G and Io [...]
Flash Report, Free Sample, Reports
On 16^th 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.
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On 16^th August 2018, Telstra announced its FY18 earnings. While subscriber growth remained strong, it was not strong enough to offset ARPU declines. [...]
Sector Telecom.
New

August 17, 2018
Local TV: Five years after launch
Focus Report, Reports
Although 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.

Although 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 [...]
Sector Media.
New

August 16, 2018
Fairfax FY18 earnings update: digital remains the main driver
Flash Report, Reports
On 15^th 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.

On 15^th August 2018, Fairfax Media reported its last full year earnings as an independent news publisher. Digital assets remained the key driver of e [...]
Sector Media.
New

August 15, 2018
Consumer magazine publishing: Quality, not quantity
Market Outlook, Reports
The 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.

The 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 accentuatin [...]
Sector Internet, Media.
August 14, 2018
Down, but not out: Why there’s still life in terrestrial broadc [...]
Focus Report, Reports
Australian 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.

Australian viewers are shifting irresistibly towards on-demand formats and IP-based video viewing. But is there still life in the terrestrial platform? And what [...]
Sector Media, Telecom.
August 9, 2018
IoT Connectivity Technologies
Focus Report, Reports
The 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.

The Internet of Things is becoming a pervasive part of our technology ecosystem. At its heart, communication and connectivity technologies enable IoT devices to [...]
Sector Technology, Telecom.
August 7, 2018
BT Q1 2018/19 results: On target in the short term, making progre [...]
Focus Report, Reports
BT’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.

BT’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 growt [...]
Sector Fixed Line (Internet and Voice), Media, Mobile, Telecom.
Free

August 5, 2018
Venture Advisory Monthly Wrap – July 2018
Free Sample, Monthly wrap, Reports
Venture 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.
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Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
August 2, 2018
Revenues down, guidance in the balance: Vodafone Q1 2018/19 resul [...]
Focus Report, Reports
EBITDA 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.

EBITDA 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 [...]
Sector Fixed Line (Internet and Voice), Mobile, Non-UK Telecoms, Telecom.
August 1, 2018
Hulu: Why Disney wants 21st Century Fox
Focus Report, Reports
Disney’s potential acquisition of certain 21^st 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.

Disney’s potential acquisition of certain 21^st Century Fox assets is assuredly a play for further scale at a time when the company’s traditional [...]
Sector Media, Telecom.
July 31, 2018
Nine – Fairfax Merger Flash
Flash Report, Reports
The 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.

The 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 [...]
Sector Media.
July 30, 2018
Quality media, Ozone protection
Focus Report, Reports
The 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.

The 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 di [...]
Sector Media, Technology, UK Media.
July 26, 2018
The drive for convergence: a value-destructive strategy
Focus Report, Reports
Many 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.

Many European telecoms operators are pursuing a fixed/mobile convergence strategy on the pretext that the addition of mobile reduces churn. We see no evidence o [...]
Sector Fixed Line (Internet and Voice), Mobile, Telecom, vodafone.
July 25, 2018
Unlimited mobile data – not quite all you can eat…
Focus Report, Reports
Mobile 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.

Mobile data usage in Australia is expected to increase 6x between 2017 to 2021, driven by advances in mobile technologies, increasing time spent on larger scree [...]
Sector Telecom.
July 24, 2018
AV ad measurement: meretricious metrics
Focus Report, Reports
Rigour 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.

Rigour 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 di [...]
Sector Media.
July 20, 2018
Focus back on ARPU: TalkTalk Group Q1 2018/19 results
Focus Report, Reports
TalkTalk 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.

TalkTalk 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 retai [...]
Sector Fixed Line (Internet and Voice), Media, Telecom, TV.
July 18, 2018
Video viewing forecasts to 2027: No channels and everything to wa [...]
Market Outlook, Reports
Video 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

Video 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? [...]
Sector Media, TV.
Free

July 13, 2018
5G Update July 2018 – auctions caps, potential vendor bans and [...]
Free Sample, Reports
Regulatory 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.
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Regulatory announcements regarding 5G will affect competition dynamics as the first 5G services are closer to launch. Internationally, there is excitement but a [...]
Sector Telecom.
July 13, 2018
UK TV platform forecasts to 2022: stability rules
Focus Report, Reports
Despite 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.

Despite significant changes in people’s video viewing habits over the last few years, the TV platform landscape has appeared to reach an equilibrium. We expec [...]
Sector Media, TV, UK Media.
July 12, 2018
Virtual Reality in 2018: Ready Player None?
Focus Report, Reports
Yet 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.

Yet 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 O [...]
Sector Digital Media, Media, Technology, Telecom, TV.
July 11, 2018
Media transformation is just beginning…
Focus Report, Reports
The 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.

The continued rise and dominance of Silicon Valley’s tech giants continue to vex traditional media operators and regulators, and equally, still fascinate and [...]
Sector Digital Media, Media.
July 9, 2018
Europe’s Creative Hubs Update 2018
Market Outlook, Reports
This 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.

This third edition of Europe's Creative Hubs, produced on behalf of Bertelsmann, highlights the challenges of the digital age for enterprises of the creativ [...]
Sector Digital Media, Media, Technology.
July 6, 2018
Westpac leads the Fintech investment charge
Focus Report, Reports
Australia’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.

Australia’s largest banks have been very active in the fintech market. This report explores the investments that they have made [...]
Sector Disruption, financial services, fintech, Technology.
Free

July 5, 2018
Venture Advisory Monthly Wrap – June 2018
Free Sample, Monthly wrap, Reports
Venture 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.
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Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
July 4, 2018
The eSports economy – it’s just getting started…
Focus Report, Reports
eSports 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.

eSports has grown in popularity beyond being a niche form of entertainment to becoming a powerful means to engage millennial audie [...]
Sector Digital Media, Media, Technology.
June 29, 2018
Is CRR still critical to protect advertisers from ITV?
Focus Report, Reports
The 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.

The 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 [...]
Sector Media, Telecom.
June 28, 2018
The home screen: distribution, discovery and data on connected TV [...]
Market Outlook, Reports
The 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.

The 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 [...]
Sector Media, Telecom.
June 27, 2018
‘Telstra 2022’ – the inevitable end game of Australia’s n [...]
Market Outlook, Reports
Telstra 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.

Telstra 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 wi [...]
Sector Fixed Line (Internet and Voice), Telecom.
June 26, 2018
Sky finally renews Serie A rights until 2021
Market Outlook, Reports
Italy’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.

Italy’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 [...]
Sector Media, Telecom.
June 25, 2018
Hitting targets, but pushing too hard? TalkTalk Group Q4 2017/18 [...]
Focus Report, Reports
TalkTalk 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.

TalkTalk hit both its subscriber and EBITDA targets for 2017/18, but Q4 contained some worrying trends including core consumer revenue in decline despite strong [...]
Sector Fixed Line (Internet and Voice), Media, Telecom, UK Media.
June 21, 2018
LEO Satellites: The race to connect the unconnected
Market Outlook, Reports
Traditional 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.

Traditional satellites have struggled to meet the connectivity requirements of current IoT applications and are expensive for existing segment users. Low Earth [...]
Sector Technology, Telecom.
June 20, 2018
European mobile in Q1 2018: North–South divide to exacerbate
Market Outlook, Reports
In this report we show our analysis of revenue growth trends for mobile operators in the top five European markets (UK, Germany, France, Italy and Spain). The historical analysis is based on the published results of the operators, although they include our estimates where their data is inconsistent or incomplete, and we have updated previous period figures where better information has come to light. A copy of the underlying data in spreadsheet format is available to our subscription clients on request.

In this report we show our analysis of revenue growth trends for mobile operators in the top five European markets (UK, Germany, France, Italy and Spain). The [...]
Sector Mobile, Non-UK Telecoms, Telecom.
June 19, 2018
Advertising after the turning point: When offline is the exceptio [...]
Market Outlook, Reports
Online 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.

Online 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 increa [...]
Sector Internet, Media, Mobile, Non-UK Media, Technology, TV, UK Media.
June 15, 2018
BBC iPlayer Boxsets: performance and what it tells us about on-de [...]
Focus Report, Reports

The BBC is concerned with the performance of the iPlayer, handicapped by its inability to monetise its content. Nevertheless, as it moves towards an all-IP future, it is experimenting with new content strategies. Data from Digital-i shows that the iPlayer's Christmas Boxsets brought 360,000 unique viewers/week to the BBC portfolio; an audience which skewed encouragingly young. Furthermore, case studies of two of the programmes made available over this period—Peaky Blinders and Hard Sun—provide insight into how people consume content delivered this way, something that has been difficult to ascertain due to the major SVODs' secretive treatment of their own data.

The BBC is concerned with the performance of the iPlayer, handicapped by its inability to monetise its content. Nevertheless, as it [...]
Sector Media, Telecom.
June 14, 2018
UK broadband, telephony and pay TV trends Q1 2018: Diverging stra [...]
Market Outlook, Reports
UK residential communications market revenue growth strengthened in Q1, but this was entirely driven by an overlapping price increase from BT, and the decline in market volume growth continues. Continued pressure on both subscriber volume growth and ARPU has led to diverging strategies, with most operators focused on sustaining ARPU, but TalkTalk chasing volumes at the low end, with the former approach currently proving more successful. Looking forward, the benefit of BT’s price rise will fall away completely next quarter and market revenue growth will likely resume its downward trend, but the nadir may be within sight if the flight to quality persists at most operators

UK residential communications market revenue growth strengthened in Q1, but this was entirely driven by an overlapping price increase from BT, and the decline i [...]
Sector Fixed Line (Internet and Voice), Media, Telecom.
June 12, 2018
Advertising Market Outlook:The Digital juggernaut continues with [...]
Market Outlook, Reports
Venture 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.

Venture 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 [...]
Sector Advertising, Digital Marketing, Marketing, Media, Online Advertising, Technology.
June 11, 2018
Disruption in Premier League football? 2018 auction finally over
Focus Report, Reports
The 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.

The 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 tot [...]
Sector Media, Technology, TV, UK Media.
June 8, 2018
UK mobile market Q1 2018: Primed for revenue acceleration
Market Outlook, Reports
Service revenue growth for the UK mobile market improved in the first quarter of the year, lifting from 1.0% to 1.2%. There was an easing of the EU roaming regulatory impact helping growth improve, but the SIM-only drag likely grew to counteract this, suggesting a modest underlying improvement overall. We expect continued market growth improvement in the coming year due to a number of tailwinds, namely annual price rises, the arrival of IFRS 15, and the EU roaming impact dropping out. The fundamentals of the market remain solid: competition is rational; pricing is firm; data demand is strongly rising; supply is partially constrained; MVNOs and convergence do not appear a threat.

Service revenue growth for the UK mobile market improved in the first quarter of the year, lifting from 1.0% to 1.2%. There was an easing of the EU roaming regu [...]
Sector Media, Telecom.
June 7, 2018
Mobile Visual Search: A Picture is Worth a Thousand Searches
Focus Report, Reports
In 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.

In the past few years, search technologies have seen dramatic improvements with both voice and visual search emerging as alternatives to traditional text-based [...]
Sector AI, Big Data, Disruption, Technology.
June 6, 2018
Football embraces Chinese ‘hot’ money – at a risk
Focus Report, Reports
In a display of chutzpah, Mediapro acquired the Ligue 1 domestic broadcasting rights from 2020-24 in what is the most disruptive shock to the French broadcasting industry in a generation; one that is likely to accelerate Canal+’s decline, force a review of the outdated regulatory framework, and possibly spur an M&A spree. The Mediapro move only makes sense as a highly speculative bid to resell the rights, or a dedicated channel, to French platforms in 2020. The odds are high that the broker ultimately fails to fulfil the contract, as just happened in Italy, where Sky is now expected to get the Serie A licence. Precedents of new entrants acquiring domestic top-flight rights bode poorly for Mediapro, and for the league. The Ligue 1 may live to regret the introduction of a ‘re-sell right’ into its licensing terms.

In a display of chutzpah, Mediapro acquired the Ligue 1 domestic broadcasting rights from 2020-24 in what is the most disruptive shock to the French broadcastin [...]
Sector Fixed Line (Internet and Voice), Media, Non-UK Media, Non-UK Telecoms, Telecom, UK Media.
Free

June 5, 2018
Venture Advisory Monthly Wrap – May 2018
Free Sample, Monthly wrap, Reports
Venture 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
Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
June 4, 2018
News brands and reader subscriptions: Towards a sustainable futur [...]
Focus Report, Reports
Print remains the primary revenue driver for most newspapers, but after 20 years of online news publishing we ask the critical question: how will publishers sustain newsrooms at scale when print has disappeared, or has contracted to a weekend luxury experience? The question needs to be answered in the context of both: 1) Rapidly declining advertising revenues in print media; and 2) A tiny and shrinking market share of digital advertising revenues. We believe these circumstances strongly imply the race for audience scale is more investor fallacy than a sustainable business prize; and besides, over-reliance on the advertising market for quality content provision is unappealing, particularly to proudly independent news publishers. Reader revenue, long assumed to be an impossibility for general quality digital news services, is the only answer. Registrations, membership and subscription models are being explored, tested, adopted or exploited by almost every major quality news provider in the US and Europe. The transition to subscription is hugely attractive, but requires first and foremost a new editorial strategy, requiring a wholesale business transformation.

Print remains the primary revenue driver for most newspapers, but after 20 years of online news publishing we ask the critical question: how will publishers su [...]
Sector Media, Non-UK Media, Telecom.
May 31, 2018
French, Spanish and Italian telcos won’t bankroll further footb [...]
Focus Report, Reports
The rights auction for France’s Ligue 1 will be held on 29 May. With Altice’s struggling subsidiary SFR unlikely to bid, Canal+ and BeIN Sports may not offer enough to meet reserve prices, triggering a postponement of the auction. In Spain, stiff fixed-line competition is shifting battlegrounds from football to scripted content. The Champions League has yet to sign up a platform for next season, while the upcoming 2019-22 La Liga rights auction may well fail to increase domestic revenues. With just 12 weeks before next season kicks off, Italy’s Serie A is also yet to secure a broadcaster, although we expect the league to back down and settle with Sky. In this deflationary environment, top clubs are eyeing a new Club Word Cup as an extra revenue stream – running the risk of further widening the financial chasm between themselves and smaller clubs.

The rights auction for France’s Ligue 1 will be held on 29 May. With Altice’s struggling subsidiary SFR unlikely to bid, Canal+ and BeIN Sports may not offe [...]
Sector Media, Telecom.
May 30, 2018
BT new Consumer strategy: Converging, but in a good way
Flash Report, Reports
BT has emphasised ‘convergence’ in its new Consumer strategy, but it has avoided most of the usual fixed-mobile convergence mistakes, with separate brands, minimal discounting and only slightly flawed converged products. The general strategy is to improve customer service to improve market share trends (particularly in broadband), enable premium products/positioning, and allow for cross-selling of a strong set of converged (in a broader sense) products, which is very sensible in our view. It does require extra spending in the short-term to improve customer service and the perception thereof (particularly in broadband) before premium positioning and cross-selling can be effective, therefore improved trends at the bottom line may take some time to come through.

BT has emphasised ‘convergence’ in its new Consumer strategy, but it has avoided most of the usual fixed-mobile convergence mistakes, with separate brands, [...]
Sector Fixed Line (Internet and Voice), Media, Mobile, Telecom, UK Media.
May 29, 2018
Machine Learning – connecting the dots…
Flash Report, Reports
Machine 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.

Machine learning is a branch of Artificial Intelligence that enables computer programs to learn, analyse and identify trends and patterns within large sets of d [...]
Sector AI, Big Data, Technology.
May 28, 2018
Strategically challenged: Vodafone Q4 2017/18 results
Focus Report, Market Outlook, Reports
The major change in trend evidenced in Vodafone’s Q4 results was a decline in mobile service revenue growth in Germany by 2ppts on the December quarter, in spite of record contract net adds and improving growth trends from its competitors. At least part of this deterioration is likely due to its strategic focus on converged products; we estimate discounts of around one third and question the rationale for this initiative, particularly given the admission that this is distracting from the core mobile business. Vodafone’s guidance for 1-5% group EBITDA growth next year reflects the challenging outlook and uncertainty in southern European markets, a more positive view on the UK, with Vodafone’s German strategy a major swing factor.

The major change in trend evidenced in Vodafone’s Q4 results was a decline in mobile service revenue growth in Germany by 2ppts on the December quarter, in sp [...]
Sector Telecom.
May 25, 2018
Retailing in the material world
Focus Report, Reports
Ecommerce 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

Ecommerce has grown to 17.5% of retail spend, and accounts for almost all growth in spend. Physical retailers are beginning to feel the effec [...]
Sector Internet, Media, Technology.

July 6, 2018
Westpac leads the Fintech investment charge
Focus Report, Reports
Australia’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.

Australia’s largest banks have been very active in the fintech market. This report explores the investments that they have made [...]
Sector Disruption, financial services, fintech, Technology.
May 22, 2018
Blockchain in Telecom – moving from concept to reality…
Flash Report, Reports
In 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.

In 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 an [...]
Sector Disruption, fintech, Technology, Telecom.
Free

April 24, 2018
AltFi Conference 2018 – Growth with transparency
Flash Report, Free Sample, Reports
Venture Insights attended the annual AltFi Australasian Conference on April 15^th 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.
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Venture Insights attended the annual AltFi Australasian Conference on April 15^th 2018. The key takeaway from the conference was that the Fintech Indu [...]
Sector digital, Disruption, fintech, Technology.
April 17, 2018
IoT & Cryptocurrency Mining: Cyber Security Update
Focus Report, Reports
The 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.

The Internet of Things represents a significant and growing target area for cyber criminals. The growth in cryptocurrencies is focussing cyber criminals on the [...]
Sector digital, fintech, IoT, Technology.
September 21, 2017
The growth of Insurtech – Insurance companies should be worried
Focus Report, Free Sample, Reports
In 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.

In 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 pi [...]
Sector Disruption, fintech, Technology.
Free

August 16, 2017
Follow the Money
Focus Report, Free Sample, Reports
Australia’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
Australia’s VC market continued to advance, with over US$670m of investments made in FY17. Investments were supported by favourable economic and business cond [...]
Sector fintech, Technology.
July 14, 2017
Lending Disruption – Fact or fiction?
Free Sample, Reports

The 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?

The big four banking oligopoly have had a highly profitable run over the last five years. During this time start-ups have emerged t [...]
Sector banks, Disruption, fintech, Technology.
May 25, 2017
Disruption in Payments: Time to throw out your wallet?
Reports

As 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.

As the usage of cash declines, we are trending towards a cashless society supported by new payment technologies.Within the next dec [...]
Sector Digital Media, Disruption, fintech, Non-UK Telecoms, Technology, Telecom, TV.
May 17, 2017
A$1bn at stake for fund managers from Robo-Advice disruption
Reports

Robo-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.

Robo-advice can offer a lower cost structure, similar financial results and greater transparency over traditional asset managers an [...]
Sector Disruption, fintech, Technology.

Free

February 19, 2018
Top Australian Healthcare Tech trends to watch in 2018
Flash Report, Free Sample, Reports

Digital 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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Digital and mobile technologies are providing the foundation for many emerging healthcare innovations that are disrupting the Austr [...]
Sector Health, Technology.
Free

October 11, 2017
Game of Genomes – decoding the future of healthcare
Free Sample, Reports
Mainstream 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.

Mainstream genomics is still nascent but further decline in sequencing costs will drive adoption. Unprecedented intelligence (i.e. big data) involving the genot [...]
Sector Disruption, Health.
Free

September 6, 2017
National Digital Health Strategy – one byte at a time
Free Sample, Reports
It’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
It’s time to move on from relying on doctors’ memories and the pulling together of fragmented information from across the health system. The National Digita [...]
Sector digital, Health.
August 10, 2017
Disruption in Aged Care – Rise of the Silver Surfer
Reports
Australia 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.

Australia 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 gettin [...]
Sector Disruption, Health, Technology.
Free

November 6, 2015
Disruption In – Disruption is good for health
Free Sample, Reports

Our 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.

Our proprietary Disruption Framework has identified the Healthcare industry as vulnerable to disruption. We estimate that [...]
Sector Big Data, Disruption, Health, Technology.

Free

January 23, 2018
Wind Farms – Adding wind to Australia’s energy sails
Flash Report, Free Sample, Reports
Wind 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.
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Wind energy already accounts for 30 percent of renewable generation and over 5 percent of total electricity generation in Australia. Falling development and gen [...]
Sector Energy, Technology.
Free

November 6, 2017
Green Hydrogen – Opportunity or hype?
Flash Report, Free Sample, Reports
Hydrogen 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.

Hydrogen 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 [...]
Sector Energy, Technology.
Free

October 13, 2017
Energy Roundtable Breakfast – key findings
Focus Report, Free Sample, Reports

What 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?

What will Australia’s energy future look like in 2030? Will it be business as usual? …… a utopian renewable energy reliant wo [...]
Sector Energy, Technology.
Free

September 13, 2017
AEMO Report – exacerbating our issues not finding solutions
Flash Report, Free Sample, Reports
AEMO’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
AEMO’s report to the Government appropriately highlights the risks to the NEM following closure of key dispatchable capacity. However, the report and the Gove [...]
Sector Energy, Technology.
August 30, 2017
‘Charging’ ahead – Five key trends reshaping the electricit [...]
Free Sample, Reports
The 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.

The traditional electricity industry is under significant pressure as rapid advances in technology are upending the electricity value chain. Disruption in elect [...]
Sector Disruption, Energy, Technology.
Free

August 4, 2017
Residential rooftop solar set to soar
Flash Report, Free Sample, Reports
Solar 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.

Solar rooftop economics are approaching a tipping point. Not only does electricity generated from residential rooftop solar households reduce greenhouse gas emi [...]
Sector Energy, Technology.
Free

July 18, 2017
Disruption in Electricity – an electrifying start to a sunny fu [...]
Free Sample, Reports

With 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.

With the appropriate political and regulatory support and after years in the wilderness Australia now approaches a period of rapid [...]
Sector Disruption, Energy, Technology.
Free

June 21, 2017
The Finkel Review – A politically acceptable outcome for no [...]
Free Sample, Reports

The 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.

The Finkel review has been released and appears to have come up with a ‘politically acceptable’ solution. However, even if all [...]
Sector Energy, Public Policy, Technology.
Free

June 21, 2017
Snowy Hydro 2.0: Good but not enough?
Free Sample, Reports

Snowy 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?

Snowy Hydro 2.0 has been proposed by the Federal Government to alleviate the Australian Energy Crisis. Will it be the golden soluti [...]
Sector Energy, Public Policy.
Free

April 19, 2017
Batteries have become the mainstream solution to the energy crisi [...]
Free Sample, Reports
Following 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.

Following the blackouts in South Australia, a strong debate around the future of electricity has been sparked within both the state and national governments. We [...]
Sector Disruption, Energy, Infrastructure.
Free

February 15, 2017
Towards Australia’s Smart Energy Future
Free Sample, Reports

As 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.

As technological developments continue Smart Energy is increasingly being adopted by the government, businesses and consumers in or [...]
Sector Energy, Infrastructure, Technology.

August 9, 2018
IoT Connectivity Technologies
Focus Report, Reports
The 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.

The Internet of Things is becoming a pervasive part of our technology ecosystem. At its heart, communication and connectivity technologies enable IoT devices to [...]
Sector Technology, Telecom.
Free

August 5, 2018
Venture Advisory Monthly Wrap – July 2018
Free Sample, Monthly wrap, Reports
Venture 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
Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
July 30, 2018
Quality media, Ozone protection
Focus Report, Reports
The 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.

The 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 di [...]
Sector Media, Technology, UK Media.
July 12, 2018
Virtual Reality in 2018: Ready Player None?
Focus Report, Reports
Yet 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.

Yet 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 O [...]
Sector Digital Media, Media, Technology, Telecom, TV.
July 9, 2018
Europe’s Creative Hubs Update 2018
Market Outlook, Reports
This 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.

This third edition of Europe's Creative Hubs, produced on behalf of Bertelsmann, highlights the challenges of the digital age for enterprises of the creativ [...]
Sector Digital Media, Media, Technology.
July 6, 2018
Westpac leads the Fintech investment charge
Focus Report, Reports
Australia’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.

Australia’s largest banks have been very active in the fintech market. This report explores the investments that they have made [...]
Sector Disruption, financial services, fintech, Technology.
Free

July 5, 2018
Venture Advisory Monthly Wrap – June 2018
Free Sample, Monthly wrap, Reports
Venture 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
Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
July 4, 2018
The eSports economy – it’s just getting started…
Focus Report, Reports
eSports 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.

eSports has grown in popularity beyond being a niche form of entertainment to becoming a powerful means to engage millennial audie [...]
Sector Digital Media, Media, Technology.
June 21, 2018
LEO Satellites: The race to connect the unconnected
Market Outlook, Reports
Traditional 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.

Traditional satellites have struggled to meet the connectivity requirements of current IoT applications and are expensive for existing segment users. Low Earth [...]
Sector Technology, Telecom.
June 19, 2018
Advertising after the turning point: When offline is the exceptio [...]
Market Outlook, Reports
Online 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.

Online 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 increa [...]
Sector Internet, Media, Mobile, Non-UK Media, Technology, TV, UK Media.
June 12, 2018
Advertising Market Outlook:The Digital juggernaut continues with [...]
Market Outlook, Reports
Venture 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.

Venture 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 [...]
Sector Advertising, Digital Marketing, Marketing, Media, Online Advertising, Technology.
June 11, 2018
Disruption in Premier League football? 2018 auction finally over
Focus Report, Reports
The 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.

The 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 tot [...]
Sector Media, Technology, TV, UK Media.
June 7, 2018
Mobile Visual Search: A Picture is Worth a Thousand Searches
Focus Report, Reports
In 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.

In the past few years, search technologies have seen dramatic improvements with both voice and visual search emerging as alternatives to traditional text-based [...]
Sector AI, Big Data, Disruption, Technology.
Free

June 5, 2018
Venture Advisory Monthly Wrap – May 2018
Free Sample, Monthly wrap, Reports
Venture 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
Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
May 29, 2018
Machine Learning – connecting the dots…
Flash Report, Reports
Machine 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.

Machine learning is a branch of Artificial Intelligence that enables computer programs to learn, analyse and identify trends and patterns within large sets of d [...]
Sector AI, Big Data, Technology.
May 25, 2018
Retailing in the material world
Focus Report, Reports
Ecommerce 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

Ecommerce has grown to 17.5% of retail spend, and accounts for almost all growth in spend. Physical retailers are beginning to feel the effec [...]
Sector Internet, Media, Technology.
May 22, 2018
Blockchain in Telecom – moving from concept to reality…
Flash Report, Reports
In 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.

In 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 an [...]
Sector Disruption, fintech, Technology, Telecom.
May 17, 2018
Wall St Shuffle: Spotify’s non-IPO
Focus Report, Reports
Spotify 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.

Spotify 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 p [...]
Sector Media, Music and Radio, Technology.
May 16, 2018
SXSW 2018 – Visions of the future: Blockchain, AI and Colonies [...]
Flash Report, Free Sample, Reports
Venture Insights attended this year’s South by South West (SXSW), Austin’s annual technology conference.This report highlights 7 key trends from the event, including: the impact of Blockchain, whether we should trust AI, how ethics apply to platforms, the battle for your voice and whether we will be on Mars by 2019!

Venture Insights attended this year’s South by South West (SXSW), Austin’s annual technology conference.This report highlights 7 key trends from the event, [...]
Sector AI, Augmented Reality, Digital Media, Media, Technology.
Free

May 10, 2018
TPG mobile launch plans – there’s going to be data on the str [...]
Flash Report, Free Sample, Reports
With an increasingly commoditised fixed market, the Australian mobile market is under attack as both margins and market share are under pressure. TPG is set to launch its mobile network with rock bottom introductory pricing for mobile data.
$0.00
With an increasingly commoditised fixed market, the Australian mobile market is under attack as both margins and market share are under pressure. TPG is set to [...]
Sector Fixed Line (Internet and Voice), Non-UK Telecoms, Technology, Telecom.

New

August 21, 2018
Regulating harmful video content and advertising online: Publishe [...]
Market Outlook, Reports
Video-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.

Video-sharing platforms, such as YouTube and Facebook video, enjoy a light-touch regulatory regime for harmful content and advertising. As video viewing of non- [...]
Sector Internet, Media, TV.
New

August 20, 2018
Sky UK 2017/18 full year results: Winning the game of content
Focus Report, Reports
Sky 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.

Sky 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 L [...]
Sector Fixed Line (Internet and Voice), Media, Mobile, Non-UK Media, TV, UK Media.
New

August 20, 2018
Virgin Media Q2 2018 results: Measured approach in a tough market
Focus Report, Reports
Virgin 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.

Virgin 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 [...]
Sector Fixed Line (Internet and Voice), Internet, Media, Telecom, UK Media.
New

August 17, 2018
Local TV: Five years after launch
Focus Report, Reports
Although 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.

Although 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 [...]
Sector Media.
New

August 16, 2018
Fairfax FY18 earnings update: digital remains the main driver
Flash Report, Reports
On 15^th 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.

On 15^th August 2018, Fairfax Media reported its last full year earnings as an independent news publisher. Digital assets remained the key driver of e [...]
Sector Media.
New

August 15, 2018
Consumer magazine publishing: Quality, not quantity
Market Outlook, Reports
The 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.

The 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 accentuatin [...]
Sector Internet, Media.
August 14, 2018
Down, but not out: Why there’s still life in terrestrial broadc [...]
Focus Report, Reports
Australian 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.

Australian viewers are shifting irresistibly towards on-demand formats and IP-based video viewing. But is there still life in the terrestrial platform? And what [...]
Sector Media, Telecom.
August 7, 2018
BT Q1 2018/19 results: On target in the short term, making progre [...]
Focus Report, Reports
BT’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.

BT’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 growt [...]
Sector Fixed Line (Internet and Voice), Media, Mobile, Telecom.
Free

August 5, 2018
Venture Advisory Monthly Wrap – July 2018
Free Sample, Monthly wrap, Reports
Venture 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
Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
August 1, 2018
Hulu: Why Disney wants 21st Century Fox
Focus Report, Reports
Disney’s potential acquisition of certain 21^st 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.

Disney’s potential acquisition of certain 21^st Century Fox assets is assuredly a play for further scale at a time when the company’s traditional [...]
Sector Media, Telecom.
July 31, 2018
Nine – Fairfax Merger Flash
Flash Report, Reports
The 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.

The 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 [...]
Sector Media.
July 30, 2018
Quality media, Ozone protection
Focus Report, Reports
The 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.

The 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 di [...]
Sector Media, Technology, UK Media.
July 24, 2018
AV ad measurement: meretricious metrics
Focus Report, Reports
Rigour 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.

Rigour 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 di [...]
Sector Media.
July 20, 2018
Focus back on ARPU: TalkTalk Group Q1 2018/19 results
Focus Report, Reports
TalkTalk 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.

TalkTalk 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 retai [...]
Sector Fixed Line (Internet and Voice), Media, Telecom, TV.
July 18, 2018
Video viewing forecasts to 2027: No channels and everything to wa [...]
Market Outlook, Reports
Video 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

Video 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? [...]
Sector Media, TV.
July 13, 2018
UK TV platform forecasts to 2022: stability rules
Focus Report, Reports
Despite 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.

Despite significant changes in people’s video viewing habits over the last few years, the TV platform landscape has appeared to reach an equilibrium. We expec [...]
Sector Media, TV, UK Media.
July 12, 2018
Virtual Reality in 2018: Ready Player None?
Focus Report, Reports
Yet 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.

Yet 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 O [...]
Sector Digital Media, Media, Technology, Telecom, TV.
July 11, 2018
Media transformation is just beginning…
Focus Report, Reports
The 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.

The continued rise and dominance of Silicon Valley’s tech giants continue to vex traditional media operators and regulators, and equally, still fascinate and [...]
Sector Digital Media, Media.
July 9, 2018
Europe’s Creative Hubs Update 2018
Market Outlook, Reports
This 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.

This third edition of Europe's Creative Hubs, produced on behalf of Bertelsmann, highlights the challenges of the digital age for enterprises of the creativ [...]
Sector Digital Media, Media, Technology.
Free

July 5, 2018
Venture Advisory Monthly Wrap – June 2018
Free Sample, Monthly wrap, Reports
Venture 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
Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.

New

August 20, 2018
Virgin Media Q2 2018 results: Measured approach in a tough market
Focus Report, Reports
Virgin 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.

Virgin 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 [...]
Sector Fixed Line (Internet and Voice), Internet, Media, Telecom, UK Media.
New

August 17, 2018
Telstra FY18 earnings update: there’s a lot riding on 5G and Io [...]
Flash Report, Free Sample, Reports
On 16^th 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.
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On 16^th August 2018, Telstra announced its FY18 earnings. While subscriber growth remained strong, it was not strong enough to offset ARPU declines. [...]
Sector Telecom.
August 14, 2018
Down, but not out: Why there’s still life in terrestrial broadc [...]
Focus Report, Reports
Australian 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.

Australian viewers are shifting irresistibly towards on-demand formats and IP-based video viewing. But is there still life in the terrestrial platform? And what [...]
Sector Media, Telecom.
August 9, 2018
IoT Connectivity Technologies
Focus Report, Reports
The 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.

The Internet of Things is becoming a pervasive part of our technology ecosystem. At its heart, communication and connectivity technologies enable IoT devices to [...]
Sector Technology, Telecom.
August 7, 2018
BT Q1 2018/19 results: On target in the short term, making progre [...]
Focus Report, Reports
BT’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.

BT’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 growt [...]
Sector Fixed Line (Internet and Voice), Media, Mobile, Telecom.
Free

August 5, 2018
Venture Advisory Monthly Wrap – July 2018
Free Sample, Monthly wrap, Reports
Venture 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
Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
August 2, 2018
Revenues down, guidance in the balance: Vodafone Q1 2018/19 resul [...]
Focus Report, Reports
EBITDA 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.

EBITDA 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 [...]
Sector Fixed Line (Internet and Voice), Mobile, Non-UK Telecoms, Telecom.
August 1, 2018
Hulu: Why Disney wants 21st Century Fox
Focus Report, Reports
Disney’s potential acquisition of certain 21^st 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.

Disney’s potential acquisition of certain 21^st Century Fox assets is assuredly a play for further scale at a time when the company’s traditional [...]
Sector Media, Telecom.
July 26, 2018
The drive for convergence: a value-destructive strategy
Focus Report, Reports
Many 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.

Many European telecoms operators are pursuing a fixed/mobile convergence strategy on the pretext that the addition of mobile reduces churn. We see no evidence o [...]
Sector Fixed Line (Internet and Voice), Mobile, Telecom, vodafone.
July 25, 2018
Unlimited mobile data – not quite all you can eat…
Focus Report, Reports
Mobile 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.

Mobile data usage in Australia is expected to increase 6x between 2017 to 2021, driven by advances in mobile technologies, increasing time spent on larger scree [...]
Sector Telecom.
July 20, 2018
Focus back on ARPU: TalkTalk Group Q1 2018/19 results
Focus Report, Reports
TalkTalk 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.

TalkTalk 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 retai [...]
Sector Fixed Line (Internet and Voice), Media, Telecom, TV.
Free

July 13, 2018
5G Update July 2018 – auctions caps, potential vendor bans and [...]
Free Sample, Reports
Regulatory 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.
$0.00
Regulatory announcements regarding 5G will affect competition dynamics as the first 5G services are closer to launch. Internationally, there is excitement but a [...]
Sector Telecom.
July 12, 2018
Virtual Reality in 2018: Ready Player None?
Focus Report, Reports
Yet 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.

Yet 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 O [...]
Sector Digital Media, Media, Technology, Telecom, TV.
Free

July 5, 2018
Venture Advisory Monthly Wrap – June 2018
Free Sample, Monthly wrap, Reports
Venture 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
Venture Advisory provides a review of leading Australasian telco, media and technology companies on a monthly basis. This review considers amongst other things [...]
Sector Media, Technology, Telecom.
June 29, 2018
Is CRR still critical to protect advertisers from ITV?
Focus Report, Reports
The 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.

The 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 [...]
Sector Media, Telecom.
June 28, 2018
The home screen: distribution, discovery and data on connected TV [...]
Market Outlook, Reports
The 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.

The 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 [...]
Sector Media, Telecom.
June 27, 2018
‘Telstra 2022’ – the inevitable end game of Australia’s n [...]
Market Outlook, Reports
Telstra 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.

Telstra 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 wi [...]
Sector Fixed Line (Internet and Voice), Telecom.
June 26, 2018
Sky finally renews Serie A rights until 2021
Market Outlook, Reports
Italy’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.

Italy’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 [...]
Sector Media, Telecom.
June 25, 2018
Hitting targets, but pushing too hard? TalkTalk Group Q4 2017/18 [...]
Focus Report, Reports
TalkTalk 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.

TalkTalk hit both its subscriber and EBITDA targets for 2017/18, but Q4 contained some worrying trends including core consumer revenue in decline despite strong [...]
Sector Fixed Line (Internet and Voice), Media, Telecom, UK Media.
June 21, 2018
LEO Satellites: The race to connect the unconnected
Market Outlook, Reports
Traditional 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.

Traditional satellites have struggled to meet the connectivity requirements of current IoT applications and are expensive for existing segment users. Low Earth [...]
Sector Technology, Telecom.

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