ACCC looks into eSims and competition\ Champions League – end of growth cycle\ oOh!media upgrades forecasts\ Sky NZ to tie-up with TVNZ\ Spark launches 5G fixed wireless

 



Welcome to the Venture Insights newsletter!

In this week’s edition, we look at the ACCC’s assessment into eSims and competition, the end of growth cycle for Champions League, oOh!media upgrades forecasts, Sky NZ ties up with TVNZ, and Spark launches 5G fixed wireless.

CHART OF THE WEEK

Sports streaming usage by age group in Australia



Source: VENTURE INSIGHTS MOBILE CONSUMER SURVEY MARCH 2019, N=1,026

ACCC looks into eSims and competition



The ACCC has completed an assessment into the potential competition issues regarding the use and support of eSims in Australia and concluded that eSim technology is likely to promote competition and greater choice in the mobile market. Interestingly, whilst the ACCC has not found any evidence of anti-competitive conduct from the MNOs, it is concerned about the current inability of MVNOs to support eSims. It is often the case that MNOs release network updates to their MVNO customers after the service has been introduced at the MNO’s retail layer and the ACCC has recognised this in its assessment. However, given its concerns, the ACCC plans to keep a close watch on how the MNOs engage with the MNVOs on support for eSims and the extent to which any features of eSim implementation limit consumer switching. For a more detailed at eSims and the implications for MNOs, click through to read our previous report.

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Champions League – end of growth cycle

Champions League live UK broadcast rights costs (£m/season)



Source: COMPANY PRESS RELEASES, PRESS REPORTS

The Champions League is a major driver of growth of European football’s revenues, catalysed by its unparalleled quality and competitiveness. In the eight years to 2017 – covering four rights cycles – revenues of the Union of European Football Associations (UEFA) increased 3.3 times to €2.1 billion, primarily generated by sales of Champions League rights. This growth was much faster than that of domestic leagues’ TV rights or sponsorship, but ti could be nearing its end. With pay-TV competition faltering, UEFA is aiming to stimulate demand for 2021-24 TV rights with early auctions, a possible relaunch of FTA broadcasts, and even, unrealistically, by considering an online service of its own. For a detailed look at how the auctions could play out in other markets, click through to read a report from our UK research partner, Enders Analysis

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oOh!media upgrades forecasts

OOH market forecasts (A$mn, 2015-2023) – FY



Source: VENTURE INSIGHTS

Leading OOH player, oOh!media announced an upgrade to its full year earnings forecast driven by a pick up in billboard bookings. The company now expects underlying EBITDA to be between $138mn and $143mn, which is an improvement on the guidance given in August 2019 of $125mn to $135mnn. While the company continued to see a softer market in the September quarter, ad bookings significantly picked up in October and for the fourth quarter which resulted in the upgraded forecasts. This is in line with Venture Insights’ view that OOH’s previously reported subdued earnings performance was a temporary blip and the structural growth story remains in tact. Overall, Venture Insights expects the OOH market to continue growing at a 5.4% CAGR through to 2023. For a more detailed look at our five year forecasts for the OOH market, click through to read our report.

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Sky NZ to tie-up with TVNZ



New Zealand Pay TV operator Sky NZ has tied up with TVNZ for the upcoming Tokyo Olympics in 2020. As per the deal, TVNZ will be allowed to air 12 hours of events each day while Sky would air all of the events across its dedicated sports channels and on its Sky Now streaming service. The commercial terms of the deal were not disclosed. Sports remains an important part of the landscape for traditional broadcasters even as they face an emerging threat from the rise of sports streaming services. For a more detailed look at how sports streaming services could provide competition for traditional broadcasters, click through to read our report.

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Spark launches 5G fixed wireless

Fixed broadband customers willing to shift to wireless broadband



Source: VENTURE INSIGHTS

Spark NZ has launched the first commercial 5G fixed wireless product in New Zealand priced at NZ$75 per month. While, Spark may have been the first to launch and beaten Vodafone NZ, the service will only be available in a handful of South Island towns for now. Spark said it was using latest Nokia 5G radio equipment including a smart antenna system that provides better capacity and coverage that the antennas used for 4G. The plan will provide 60GB of data and will go up to NZ$95 for up to 600GB data. This move is in line with Venture Insights’ view that Spark will push to get more fixed broadband subscribers on to its own network through 5G enabled fixed wireless products. Fixed wireless remains a key use for 5G in New Zealand – as per Venture Insights’ last consumer survey in NZ, 18% of fixed broadband subscribers would be willing to switch to a 5G fixed wireless service within two years of launch. For a more detailed look at how the New Zealand telco market is evolving and our five year forecasts, click through to read our report.

Click to read report