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July 12, 2017Cometh the hour for the commercial PSBs
ReportsThe first half of 2017 has seen the announced departure of three CEOs from the commercial PSBs within the space of less than two months: David Abraham of Channel 4 (14th March), Rob Woodward of STV (25th April) and lastly Adam Crozier of ITV (3rd May). Responding to the challenges of digital switchover and the advertising recession of 2008/09, as well as their own specific company issues, one of the first tasks for all three CEOs has been to raise staff morale. The last seven to ten years may have been taxing at times. The next seven to ten promise to be no easier, and may yet be harder, as the successor CEOs chart their way through the continuing transformation of the UK digital landscape
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July 10, 2017Tinder and online dating: who’s paying?
ReportsTinder is one of the most high-profile mobile apps on the market and has transformed the adoption of online dating.Tinder’s success is due in large part to its understanding of user experience, which is key to getting, keeping and upselling users through network effects.But the financial value of this success is limited by the industry: even a mobile revolution has not created a high- revenue mass market where none existed before
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June 21, 2017Mary Meeker Internet Trends 2017
ReportsMary Meeker discusses the key internet trends for 2017. The continued rise of digital advertising, as well as growth within eSports, and eCommerce all feature heavily -
April 27, 2017Virtual worlds become a reality
ReportsToday, we see the foundational layers of new Virtual Reality platforms. How is this landscape going to evolve, and how quickly will we get there? Building on today’s technology, we expect to see targeted experiences, distributed computing driving down hardware costs, and a convergence of current standards.
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April 12, 2017Spotify secures UMG royalty discount
ReportsAs Spotify wavers around the breakeven point, the deal with UMG is good news for royalty costs and thus for the likely advent of the IPO rumoured for autumn 2017. Royalty costs will reduce if Spotify reaches the subscriber growth targets that have been agreed – these have not been disclosed, so are hard to track. Question marks persist over whether a two-week optional windowing of new releases on the premium tier will significantly drive upgrades from the free tier. -
April 7, 2017The Future of Audio and Radio
ReportsAudio media are converging, with various crossmedia platforms already on the market. We explore what this means for the future of audio, how the market is being impacted and discuss how far this convergence is likely to go. -
January 13, 2017Music subscription streaming 2017
ReportsStreaming is now mainstream and we predict 113% growth in expenditure on subscriptions for 2015-18 in the top four markets (US, UK, Germany and France).
Free vs paid-for streaming is the central question for the music ecosystem: free yields fractions of pennies, making subscription the only credible business model.
Market leader Spotify is facing competition from tech giants Amazon, Apple and Google, with deep pockets, for whom content is a pawn in a larger game.
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November 18, 2016
Snappy birthday: Snapchat’s IPO
ReportsSnap’s IPO is reportedly pressing ahead as expected, suggesting a remarkably early maturity for the company’s advertising business model. Snapchat creatively adapts the tried and true TV advertising formula, focusing on content, context and audience affinity – this goes against the grain of digital advertising and could unlock new brand budgets for online. After an IPO, Snap’s founders would have the freedom to expand their platform with new content, distribution channels and even devices.
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November 10, 2016
Airbnb – not just a sharing economy
ReportsAirbnb has become Australia’s largest accommodation provider with success being fuelled by consumer demand. We discuss Airbnb’s effect on the Australian accommodation market, including the disruption of traditional hotels and the expected impact into the future.
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September 30, 2016
Tug of War: Apple Pay versus The Big Australian Banks
ReportsApple Pay launched in Australia in November 2015 and is seeking to capture a slice of the banks’ interchange fee, worth an estimated $2.5b annually. With the exception of ANZ who adopted Apple Pay, this has not gone down well with other banks. We discuss the ongoing dispute between Apple and the large Australian banks, the repercussions of this for the market as a whole, including the consumer impact, and the expected outcome.
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July 21, 2016
Pokémon Go is a game changer
ReportsPokémon Go is taking the world by storm, and gamers are not the only winners as businesses reap the benefits of Augmented Reality. The success of the Pokémon Go game may seem like an overnight phenomenon. We discuss the key factors which ensured it got off to a good start in creating a new category of gaming.
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July 18, 2016
Mobile Google: beyond the smartphone
ReportsGoogle’s recent product updates and upcoming features aim for as many users on as many platforms and devices as possible – a return to strategic form. The company has a dual approach: using Android as a mobile trend-setter while also devising new ways for users and developers on other platforms to use Google services. The reach provided by these initiatives will help Google’s machine learning algorithms to better understand and predict user intent – the cornerstone of the company’s ad business.
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June 3, 2016
Is Audio’s Netflix moment approaching?
ReportsCompetition is set to increase between radio and online streaming as major players seek to perfect the total audio experience – though no-one has yet fully married music with the spoken word. We discuss the rise of audio adjacencies, their expected future growth and the impact this is likely to have on traditional audio formats. -
May 16, 2016
Facebook leans in to video
ReportsFacebook has become the second largest online video platform after YouTube by viewing time, largely thanks to muted autoplay streams - for the moment. This is about to change as Facebook seeks to grow viewing and expand inventory with a new standalone video hub, live streams and revenue share models for professional content. Facebook’s lofty ambitions to become a destination for long-form, premium video content will be harder to achieve and less compatible with current strengths than for online news. -
March 23, 2016
Apple’s iPhone bargain
ReportsMore attractively priced than previous entry level iPhones, the new SE extends Apple’s smartphone lineup down towards the mid-price segment to better compete with Android over price-sensitive users. At a time of investor concern over slowing down iPhone unit sales, the SE marks the first shift in Apple’s strategic calculus for the iPhone from gross margins to unit volumes. SE supports the iOS ecosystem in a crucial period of growth for mobile payment services, making the entire iPhone roster Apple Pay compatible.
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March 11, 2016
The arrival of electronic marketplaces and bookings platforms
ReportsMany overseas entrants are arriving virtually uncontested, winning customers with superior services and price. Though it is not too late, local incumbents need to move quickly… -
March 8, 2016
The role of Millennials in the digital economy and the generation [...]
ReportsAre Millennials really that different? Older cohorts increasingly exhibit similar behaviours and consume a similar mix of digital services. As the fastest adopters of technology, Millennials have become the focus of many marketers. However, as the digital expenditure of older, richer cohorts grows rapidly, companies need to deliver solutions and services for the whole market. -
February 24, 2016
A future for tablet publishing? La Presse case study
ReportsMontreal’s La Presse follows a unique tablet-focussed, free access, fast track digital strategy. It said adieu to weekday print editions in December. An in-house developed app – La Presse+ – sets new benchmarks: advertising friendly, easy to navigate, and engaging. High ABC1 market share in French speaking Quebec helped build digital scale rapidly. La Presse+ has broken circulation records thanks to an influx of younger readers. Advertising is sold at a premium to print and the newsroom has expanded. In a tougher market The Toronto Star launched the app last September with positive initial results. The Star Touch approach is additive rather than substitutional to print and may be more relevant to newspapers elsewhere. Slower tablet penetration growth is no big worry as phone screen sizes increase and PCs converge towards tablets.
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January 29, 2016
Google’s exaggerated mobile trouble
ReportsRumoured details of Google’s traffic acquisition deal with Apple and also the size of its Android revenue have prompted many to doubt the search giant’s prospects on mobile.
Compared to previous analyst estimates and in view of Google’s traffic cost structure, we see the reported figures as positively rather than negatively surprising.
Since the mobile economy is still developing around the world, it is in our view misguided to evaluate the success of Android in revenue terms alone, since the OS responds to Google’s broader strategic aims.
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December 18, 2015
Pandora’s 2016 music royalties to rise 12%
ReportsThe Copyright Royalty Board (CRB) delivered its Web IV ruling on statutory SoundExchange licensing rates for webcasters for 2016-20, raising Pandora’s total music royalty costs by a forecast 12% in 2016. Had the CRB sided with SoundExchange, rates for Pandora’s non-subscription tier would have shot up 79%, leaving the company floundering in a sea of red ink. Nevertheless, these increased licensing costs for Pandora over 2016-20 will postpone the moment when the company attains net profitability.
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November 20, 2015
The rise of the YouTube economy
ReportsIn this report, we examine how YouTube and in particular Multichannel Networks (MCNs) have emerged within the Digital video market, their key growth drivers, revenue model, challenges and the impact on traditional TV.
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November 12, 2015
Activision: the new King of the games industry
ReportsActivision’s announcement of its intention to buy King, the maker of Candy Crush, for $5.9 billion, is a major strategic play but positions the company well as it seeks to broaden its exposure to the growing mobile games market. Activision has answered the “build or buy” question by looking to King to strengthen its capabilities in key areas: specifically mobile development, online gameplay, customer acquisition and retention analytics, as well expanding its range of revenue streams. Other mobile and online game developers are now under renewed focus as possible acquisition targets by major developers. Enders expects more acquisitions in this space in the near term.
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November 6, 2015
YouTube Red: Google’s original bid for premium content
ReportsAt launch, Google’s new subscription service YouTube Red competes most directly with premium music streaming services, also offering ad-free videos. YouTube’s augmented revenue model re-boots incentives for native talent to produce content for the platform, and will also widen its appeal for established content producers. Although consumers are likely to find paid subscription for ad-free videos a weak proposition, Red holds much potential for YouTube as it competes for attention across device ecosystems, and presents little risk to its existing advertising model.
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October 12, 2015
Ad blocking on iOS 9 – Now you see me, now you don’t
ReportsWith mobile AdEx growing at a CAGR of 205% (2011-14) and mobile ad blocking just around the corner, we believe up to A$85m of mobile AdEx pa is at risk. Publishers that are seeing increasing usage on mobile including Fairfax Media, News Australia and Yahoo!7 are most vulnerable to this disruption. In-app ads, paid content and native advertising are the three key solutions for publishers.
