CHART OF THE WEEK

Percentage of New Zealand respondents rating a factor between 4 and 5 on a scale of 1 (not important) – 5 (very important), when deciding their next mobile service purchase 

NZ mobile survey

Survey question:  Would you pay a premium for a 5G mobile phone service when available? 

Price is the single most important factor for Kiwis when deciding their next mobile service purchase, followed by network performance/speed and regional network coverage. Only 9% were willing to pay more each year for their mobile phone service, and only 10% were willing to pay a premium for a 5G service. We, therefore, expect ARPU pressure to continue in the NZ mobile market and question whether MNOs will be able to charge a premium for their 5G services. 41% in NZ change their mobile phones after four years or more, while this number was 30% for Australia suggesting that Kiwis hang on to their phones longer than their Australian counterparts. NZ has traditionally had a comparatively high mobile service convergence level, and 32% will consider buying bundled mobile service from a utility company. For more details, click on to read our report.

Disney kids’ channels – Ceasing operation in the UK

Viewing to UK broadcasters’ kids’ channels by ages 4-15 (2010=100)

Disney’s suite of UK children’s channels will go off air in September. Disney was unable to reach a deal with Sky and Virgin for the carriage of the Disney Channel, Disney XD and Disney Junior. It is unsurprising that Sky and Virgin have felt able to walk away from negotiations to carry the channels—they have performed terribly over the past few years, having been well outperformed by comparable kids’ channels. Disney will continue to have a linear footprint with National Geographic and FOX, however the cessation of its kids’ linear operations has come before its time. Disney+ is doing well, however it is a pit of foregone revenues, while the recent performance of Disney channels raises questions as to the value of some of Disney’s non-film IP. For more details, click to read a report from our UK research partner, Enders Analysis.

Times Radio UK – A slow-build acquisition strategy

 The Times & The Sunday Times subscribers (000)

Times Radio launches as an ad-free commercial speech radio service on DAB and online. By extending brand reach, it forms part of the marketing funnel to convert listeners into subscribers. Radio is remarkably resilient for a traditional mass media, and this arrival will complement the strong commercial sector and the mighty Radio 4. Timing will be a revenue challenge, but this bold, cost-effective, intelligently deployed experiment comes as the news industry is most at risk, a welcome innovation for readers and listeners—and for the sector. For more details, click to read a report from our UK research partner, Enders Analysis.

UK broadband, telephony and pay TV trends Q1 2020

Market net additions

Consumer broadband, calls and pay TV market revenue growth continued its downward trajectory in Q1, with revenue growth dipping to -2% from roughly flat in the previous quarter. This was affected by the suspension of payments for sports pay TV subscriptions from mid-March, which we estimate took 1ppt away from growth, but the remaining 1ppt decline reflects ongoing negative trends. The lockdown is also reducing churn and firming up pricing, but it is unclear how long this will last post-lockdown. Pay TV revenue trends will continue to dominate next quarter; thereafter the battleground will move to ultrafast broadband. For more details, click to read a report from our UK research partner, Enders Analysis.

Asia-Pacific region gearing up for heightened cyber-warfare

Cumulative TikTok downloads by region, 2017-2020 (m)

Australian Government has announced to spend an additional $270bn on defense over the next decade, which includes $15bn to enhance offensive and defensive cyber capabilities. It comes after the recent targeted cyber attacks on government, health services, educational services and several industries that some defense academics said were likely conducted by China. Another country in the Asia-Pacific region, India, announced this week that it has banned 59 Chinese apps including TikTok. The Indian government released a statement declaring that the apps were prejudicial to defence and security of India, and accused the apps of “stealing and surreptitiously transmitting users’ data in an unauthorised manner to servers which have locations outside India”. This comes amidst the ongoing border clashes between India and China and increasing protectionism in India’s online and tech industries. Click on to read a brief on India’s ban of Chinese apps from our UK partner Enders Analysis.