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  • March 11, 2019

    ACCC’s Digital Platforms Inquiry – more regulation on the hor [...]

    Google and Facebook have made their submissions relating to the ACCC’s Digital Platforms Inquiry. Both tech giants have focused their attention on the ACCC’s recommendation for the need to establish an "algorithm" regulator. If implemented it will have major consequences to the tech giants and potentially other players.
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  • March 8, 2019

    GDPR tested on Google, ad tech and Facebook

    Recently issued regulator rulings on Google, ad tech companies and Facebook challenge prevailing online advertising practices of obtaining user consent under the EU’s General Data Protection Regulation (GDPR). Rulings from France on Google and ad tech partners of media owners called them out for inadequate disclosure to users, and excessive merging and processing of data. In a landmark precedent for Germany, the Federal Cartel Office found that Facebook lacked “freely given” consent from users, calling its terms “exploitative” and an abuse of its dominant position, also harming competitors.
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  • March 7, 2019

    Mobile payments – New Zealand moving from cashless to walletles [...]

    The New Zealand payments ecosystem has seen considerable disruption in the last decade with new technologies, innovations and new industry players changing the way we pay. In particular, contactless payments has laid the foundation for mobile payments with consumers increasingly looking to ditch their cards and wallets in favour of digital wallets or mobile payment apps.
  • March 4, 2019

    MWC – all very exciting but where’s the money?

    ­­­­The combination of 5G, AI, IoT and big data were evangelised at MWC as generating massive scope for the transformation of multiple industries. That much is probably true, but it is the tech and consultancy companies who will likely receive the benefits, with connectivity revenue likely to be modest. For the operators, 5G brings more capacity much needed for hungry smartphone users, and perhaps the opportunity to transform themselves into a leaner operating model.
  • February 20, 2019

    Monthly Australian TMT Wrap: January 2019

    January was a rather quiet month in the Australian M&A space, with the ELMO Software/ BoxSuite’s binding sale agreement as the only major transaction. The launch of 5G networks in Australia continues with the results of the 3.6GHz spectrum auctions, though TPG will scale down its deployment due to the Huawei equipment ban.
  • February 13, 2019

    AI in Insurance: Disruption Assured

    Artificial intelligence (AI) has enormous potential to disrupt across the data- and process-heavy insurance value chain. The growth of AI startups and adoption of (AI) by Australian insurers began in earnest over the last two years. The approach taken so far is one of collaboration rather than direct competition between incumbents and disruptors.
  • February 5, 2019

    Why does Amazon sell the Echo?

    Smart speakers like the Amazon Echo and Google Home accelerated their prodigious rate of adoption in Q4 2018, and we expect they will soon be in 20% of UK homes. Amazon and Google price devices low to drive adoption to mass-market levels and win the race to own the home, in contrast to Apple’s profit-making strategy for its speaker. Echo’s main strategic benefits to Amazon are the scope for data collection and the intelligence it supports, and gatekeeping partners’ access to customers.
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  • January 29, 2019

    AI in Financial Services: Who wins the future of banking?

    Financial services are ripe for AI disruption; they are data-heavy, with significant potential for automation. The question is not if, but how fast, and how profoundly, would AI reshape the competitive landscape. In Australia, the AI ecosystem is exciting, but has yet to reach critical mass.
  • January 21, 2019

    UK advertising spend: Brexit year forecasts

    Our central case forecast with orderly EU withdrawal predicts 2.7% growth for total UK advertising spend, down from 4.7% in 2018. We have a no-deal Brexit scenario that predicts a smaller advertising recession than in 2009, with total ad spend declining 3% and display down 5.3% in 2019. The total advertising figures partly mask the pressure on UK consumers, through an expansion of the measured advertising spend universe. This is due to significant self-serve online advertising growth by SMEs, and non-advertising marketing budgets moving to online advertising platforms. In a downturn, we’d expect advertisers to become more tactical, which would disproportionally affect display media including TV, which is further affected by declining commercial impacts among younger adults. Search and social advertising would see only small growth through the first year of a recession.
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  • January 17, 2019

    Apple and Amazon bury the hatchet

    Amazon’s recent deals with Apple in TV, music and device sales mark a turning point after a decade of frosty relations. The context for this involves shifting priorities at both firms, growing pressure on Apple’s iPhone business, and rivals in common — first and foremost Google, but also the likes of Netflix and Spotify. The uneasy alliance helps both companies consolidate their strengths in the platform competition over media and the connected home — but trouble already brews.
  • January 16, 2019

    Disruption in Australian Super: Only skin deep?

    Australia’s superannuation system is broadly admired. Disruptive entrants have thus far focused on user experience, ethical alignment and branding rather than fees or performance. However, regulatory change will drive significant shifts in the industry in the coming years.
  • December 18, 2018

    UK Vertical marketplaces overview and property classified outlook

    The UK consumer’s loss of confidence since the June 2016 referendum vote in favour of Brexit has reduced the revenues of both estate agents and auto dealers, with knock-on effects on their media spend, entrenching further the leadership positions of Rightmove and Auto Trader respectively. Only the UK’s recruitment marketplace is buoyant with a record level of vacancies, benefiting general recruitment aggregator Indeed, although deepening Brexit gloom among businesses will rapidly melt away vacancies. With internet users flocking to portals and away from print media, advertisers have followed suit with media spend on these portals to stimulate purchaser interest, although transactions are still conducted offline. Facebook and Google, which have long histories of contesting markets for local advertisers with little success, have re-entered classifieds. Facebook Marketplace is now accepting listings from estate agents and dealers, expanding from C2C to B2C in homes and cars. Google Jobs launched in the UK in July 2018 and enjoys partnerships with all the major portals other than Indeed. The sharp decline in sales and shift to lettings, sluggish price growth and pressure on estate agents’ commissions, are making marketing key to driving transactional activity in a longer sales funnel. Rightmove’s revenues are on track for a 10% increase in 2018 on the uplift in average revenue per agent (ARPA). Zoopla's market share rose with the end of OnTheMarket's 'one-other-portal' rule for shareholders upon its AIM listing in February 2018.
  • December 4, 2018

    SVOD in the US and UK: A tale of three-player markets

    There is a belief in some quarters that there is space for a myriad of large SVOD services in the UK. Like the UK, the US market is dominated by three services, but there is also evidence that there is appetite for further offerings: Netflix households tend to take a secondary SVOD service to complement Netflix’s content library, and are likely to take up a third service, and in some cases a fourth and fifth. Potential domestic UK services will struggle to compete with the resources that foreign tech giants can marshal, along with NOW TV’s steady position and top content.  
  • November 28, 2018

    Telemedicine and AI Outlook in Primary Care

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    In this report, we provide a brief overview of ‘telemedicine’ including a 2035 forecast of the impact of telehealth tools, both human and artificial intelligence, in relation to ‘unreferred medical services’2 in the primary health market. This report does not assess or analyse the full potential for telemedicine which derives from other applications, such as remote surgical operations, sharing of digital health records or remote patient monitoring. These activities clearly would have significant additional benefits to the those explored in this report. The report outlines the importance of primary care in shaping Australian health and seizing ever-increasing health costs.
  • November 27, 2018

    Telemedicine in Australia

    In this report, we provide a brief overview of ‘telemedicine’ and business models associated with provision of telemedicine services along with barriers that may slow down adoption of the online tool. Venture Insights believes that telemedicine will play an important tool in scoping the primary care in Australia- changing the way GPs deliver their services. We believe that the inefficiencies in healthcare, growing health costs and rising demand for quality care lead to a rising need for disruption: tools that can reduce costs while driving access to care.
  • November 6, 2018

    Recruitment Marketing Outlook

    The Net Employment Outlook for 2018 for Australia has improved compared to CY2017—Employment Outlook peaked at 13% (a six-year high) in March 2018, before falling to 11% in September 2018. Unemployment rate decreased to 5.0% (a six-year low) in September 2018 from 5.5% in August 2017. Seek is the dominant player in the job boards industry, while LinkedIn is a dominant player in the Professional Networks space. While alternative job boards exist, they are unlikely to challenge Seek’s dominance at least in the Australian market. Artificial Intelligence and Machine Learning are transforming the industry by allowing recruitment companies to offer better job recommendations and data driven insights    
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  • November 5, 2018

    UK Radio’s evolution towards a digital future

    ­­­­Radio faces challenges from Spotify and other online audio propositions, while the radio “dial” is challenged by smart speakers and global tech. UK radio broadcasters have risen to the occasion through innovation. New DAB stations have helped radio achieve record audiences and revenues. Combined digital listening is now over 50%, but FM remains the primary platform. The current mix of FM/AM and digital maintains radio’s relevance for the medium term. The long-term future is digital—a wide-ranging sector review is required to determine how to support digital radio’s growth and the question of a future switchover.  
  • November 2, 2018

    AI and Genomics in Healthcare

    Given the unsustainability of health expenditure growth rates, we explore how AI and genomics might assist Australia to achieve higher quality health services at lower costs. We provide a definition and analyse main drivers and impacts of implementing AI and genomics in medicine.    
  • October 31, 2018

    US department stores, Amazon, and omnichannel fashion retail

    Amazon is finding women’s fashion, a missing piece of its household-centric model, a tougher nut to crack than downmarket apparel. Higher-end US department stores are pushing back with an omnichannel model, emphasising long-term partnerships, a clever full-price/outlet model, and experiences which cross the online-offline divide. In apparel, Amazon and big box retailers have already triumphed over lower-tier American department stores, and even prestigious fashion brands are finding it harder and harder to refuse cooperation with the giants.
  • October 30, 2018

    Neobanks – The David against banking Goliaths?

    The banking industry has traditionally displayed inertia to major disruption and innovation. With the rise of neobanks in Europe and the UK, and the arrival of Australia’s first neobanks; Volt, Xinja and 86 400, this may be set to change as the younger generation of customers increasingly adopt more digital and customer-centric banking services.
  • October 17, 2018

    Property Advertising Market Outlook

    Even as the RBA chooses to keep interest rates stable, the Federal Government has implemented measures to cool the rising property market. This has resulted in a decline in new listings and housing sales in major cities and a decline in real estate purchases by foreign buyers. Macroeconomic indicators, such as GDP growth, household income and consumption continue to strengthen, with labour participation increasing and the unemployment rate falling to 5.4% in June as 41,200 full time jobs were created. The RBA continues to maintain the cash rate at the same level due to a below-target inflation rate and high consumer debt that makes many households’ consumption rates sensitive to the mortgage rate. Household debt recently reached 190.0% of total annualised household income. The online real estate classified market is dominated by two players, the REA Group and Domain, which together hold 98.0% of the market. Both players reported strong annual results, with about 20% revenue growth for FY18. Despite the dominance of the two players, new start-ups continue to enter the market in the hopes of grabbing a slice of the lucrative property classifieds market. However, to date, none have gained any material traction in the Australian market.
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  • October 13, 2018

    Venture Advisory Monthly Wrap – September 2018

    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.
  • October 11, 2018

    UK Esports & broadcasters: No game for old players

    Drawn by its rapid growth and enviably youthful audience profile, incumbent broadcasters are paying increased attention to esports and its followers. Viewership of esports on UK broadcasters’ linear channels is low, with consumption on their online platforms likely the same. The market’s fragmented nature and global audience, along with the dominance of Twitch—and to a lesser extent YouTube—makes this unlikely to change. Broadcasters’ low-cost approach has primarily benefited competition organisers and games publishers. For broadcasters to create real revenues, massive upfront investment would be needed, with the risk of failure high.
  • October 5, 2018

    Apple – Price is the object: the iPhone and its services

    With a carefully priced, strong line-up of iPhones, Apple will consolidate its main revenue line and core user base in the near term. The latter feeds into a services business showing impressive growth, but which is also marked by missed opportunities and mounting negative consequences on the rest of the online ecosystem. For media businesses, Apple’s impact is larger than ever, inevitably leading to new kinds of friction around commercial terms, App store policies and browser features.