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February 9, 2021Amazon beats the flu: Non-commerce drives impressive growth over [...]
Flash Report, ReportsThe pandemic has pushed ecommerce to new heights around the world, as consumers substitute their offline purchases for online in the absence of being able to leave their homes. In this new paradigm for retail, Amazon stands to benefit most, providing customers with convenient one-day delivery and a range of competitively priced products. -
January 21, 2021Top 5 Telco Trends in 2021
Flash Report, Reports2020 was a disruptive year for everyone, including the telecommunications industry. But as a semblance of normality emerges, change in the industry continues unabated. Our top telco trends for 2021 are:- Low end operator brands seize leadership in the consumer market
- Telco infrastructure comes into play as operators seek to monetise assets
- Government refocus on regional communications as nbn rollout ends
- Enterprise market shift as nbn disrupts the fibre wholesale market
- 5G comes into its own as handset availability surges and coverage expands
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January 21, 2021(UK) Update 2021: COVID-19 and Mobility
Flash Report, Reports- The UK entered 2021 in the grip of a dangerous third wave of the pandemic, despite Lockdown 3.0 over Christmas, driving down trips taken by people to depressed levels last seen in Lockdown 1.0, reducing economic activity for Q1
- Time spent at home closely tracks the severity of lockdowns and mandates to work from home (WFH). Underpinned by the UK’s advanced digital infrastructure and services, WFH is providing resilience to Gross Value Added (GVA) creation, while staff in B2C activities are furloughed
- The City of London is emblematic of the potential for outsourced GVA creation under WFH. Its skilled and highly paid staff are too valuable to employers to risk exposure to the virus. WFH, largely preserving GVA, will anchor the future of work
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October 2, 2020Made in China- TikTok Global between a deal and the precipice
Focus Report, ReportsByteDance is rushing to sell a 20% stake in TikTok Global to Oracle and Walmart at an enterprise value of $60 billion. TikTok otherwise faces a ban in the US on 12 November, subject to legal challenges
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October 1, 2020Commentary: Webscale Capex in 2Q20
Focus Report, ReportsAs WNOs have grown, they’ve developed more sophisticated offerings in the cloud, often targeting specific vertical markets with customized platforms, including telecom. This is impacting how telcos build their networks and develop services. In the last year, webscale partnerships with telcos have expanded, spanning workload shift, joint development, and service partnerships – often supporting 5G. In January, our research partner MTN Consulting flagged the need for more collaboration between telcos, WNOs, and carrier-neutral providers as essential for 5G success as telcos aim to lower their capex outlays. -
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
ReportsÂÂÂÂSnap’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.
