MarketLine Blog

Posts about Media

IMAX Corporation Reducing 3D Movie Showings: 3D set to become a niche rather than the norm

MarketLine

The release of Avatar in December 2009 paved the way for an explosion of 3D movies. There was much hype surrounding the release of this movie, with director James Cameron being famous for pushing boundaries in film making technology leading to the 3D version being hotly anticipated. In its opening weekend, 70% of Avatar’s gross came from 3D viewing, leading to numerous successful 3D releases in 2010 including Toy Story 3 and Alice in Wonderland. Despite a rise in the release of 3D movies following Avatar, demand quickly began to… Read more

The Independent: Independent No More

MarketLine

On March 25, 2010 the failing Independent newspaper was bought for £1 ($1.30) by the Russian Lebedev family. Since then, father-and-son team Alexander and Evgeny have invested over $140m and the newspaper – now an online-only publication – has been revitalized while maintaining its traditional pro-free speech, left-wing approach to reporting. The recent politicization of young people in the UK – driven by their defeat in the EU membership referendum when young people voted overwhelmingly in favor of remaining a member – is one of the driving forces behind the… Read more

Social Media: Disruptors likely unless culture changes in Silicon Valley

MarketLine

The deletion and subsequent reinstatement of the Google account belonging to prominent scholar Jordan Peterson has set a dangerous precedent regarding the treatment of individuals promoting viewpoints which are at odds with those held by leading social media and technology companies. Mostly thanks to a campaign to reverse the decision, Jordan Peterson is now back online, but with a near absence of information coming from Google, many in online communities now fear censorship from the largest internet giant of them all. Engaging in ever closer oversight of dissident voices increases… Read more

Discovery Communications seeking to merge with Scripps Networks Interactive

MarketLine

Due to the emergence of online streaming services such as Netflix, Amazon Prime and Hulu, the demand for traditional TV broadcasting has taken a hit. As consumers especially those belonging to the younger demographic have slowly made their way towards substitutes, advertisement too has followed suit. In fact according to some sources 2016 was the first year in which online advertisement overtook the value of traditional TV advertisement, clearly emphasizing the change that has taken place. Given these recent developments in the TV broadcasting market, it comes as no surprise… Read more

AT&T and Time Warner looking to complement each other as part of merger deal

MarketLine

In October 2016, Time Warner and AT&T agreed to merge as part of a deal which would see AT&T paying $85.4bn for the merger to take place. The total transaction value would further take the deal up to $108.7bn adding in Time Warner’s debt. Despite the hefty cost, the merger deal makes perfect sense from a business point of view since through a merger with telecommunications giant AT&T, Time Warner is able to broadcast its globally recognized digital content to a much wider audience. AT&T meanwhile will be able to… Read more

Spotify: How the Swedish start-up revolutionized an ailing music industry

MarketLine

The power of the internet has grown rapidly since its introduction to the mainstream in the early 2000s and it has become the most powerful tool on the planet, both socially and economically. However the music industry has struggled in recent years, in freefall since the turn of the century and the birth of the mainstream internet. The shift from physical to digital music has been stifled by the rapid growth in internet piracy, with software such as LimeWire, Napster and later torrent clients making it incredibly simple to download… Read more

GAME Digital: How the cyclical console release pattern is stifling GAME’s growth

MarketLine

The video game industry across the West is incredibly cyclical, with regular console releases every seven to eight years providing very large revenues to major players and carrying them through the period in-between releases. However a shift in the console market, with console developers choosing to release completely new consoles at a slower rate and instead releasing interim consoles (such as Sony’s PlayStation 4 Pro), has hurt GAME Digital, a company only recent out of administration. It’s profit warning announced on June 30, the result of Nintendo’s decision to prioritize… Read more

Behind the Digital Iron Curtain: Rise of Chinese Silicon Valley

MarketLine

After a long period of rapid, double digit growth, the Chinese economy entered a more sustainable phase of development, based on innovation and consumption. Given the large population of 1.3 billion in China, the explosive growth of smartphone users, e-commerce, and online content consumption and creation led to a digital revolution in almost all industries and business sectors. While the Chinese Communist Party is trying to match its social control in the real world with the virtual world, which becomes more and more restrictive, the country’s internet is thriving and… Read more

Selfie generation: Refashioning make-up market

MarketLine

The global make-up industry grew by a record 8.4% in 2016 and was the main growth driver for the cosmetics market worldwide. The range of make-up products is endless, and some product categories, in particular those highly popular with the generation of Millennials, (i.e. concealers, illuminating highlighters, lipsticks) are booming. These hyper-connected customers are young, have a strong purchasing power, new ideas about beauty, and are also very keen to spend money on beauty products. While clothing and department stores are increasingly closing their physical locations, not being able to… Read more

Netflix competition: Not a chill environment

MarketLine

Growing from a DVD rental/ selling service in 1997, Netflix today has become one of the leading companies in the online streaming market. Netflix has benefitted greatly from the increased range and depth of broadband internet. The global reach of Netflix and its competitors serve to increase rivalry.  Gaming systems which now incorporate applications into their systems present new and growing opportunities and potential dangers for Netflix. The increased advertisements from gaming systems can help recruit more customers which is also an opportunity for competitors of Netflix. Netflix, as one… Read more

Piracy: The social acceptability of theft and its effect on the movie industry

MarketLine

Internet piracy has been around almost as long as the internet itself. Communities exist, consisting of millions of web users, which are dedicated to sourcing, converting and sharing valuable copyrighted material. Some – The Pirate Bay – were the inspiration for political parties. Others – Megaupload – were responsible for accelerating the fortunes of a small group into the billions of dollars. But all major sites have been in the spotlight for a decade, coming and going, constantly switching web hosts from Sweden to Somalia to Costa Rica, managing to… Read more

Bernie Ecclestone departs F1

MarketLine

The business model utilized in Formula One under the regime of Bernie Ecclestone and the ownership of CVC served the purpose of making shareholders rich. Yet, this was achieved at the expense of the sport. TV audiences have been in decline for a long time, several teams are struggling to survive, races are leaving traditional areas of support and the fans are unhappy. New owner, Liberty Media, must address these problems if Formula One is to regain impetus and become sustainable for all interested parties in the long term. For… Read more

Verizon purchase of Yahoo: Data breach puts deal at risk, but purchase still likely

MarketLine

The theft of confidential information from Yahoo in 2013, although only recently announced, has heaped doubt over the proposed purchase of Yahoo by Verizon. Many predict the final bill will be substantial and worse could follow – the FBI are investigating and could yet cause more problems. A reduced share price caused Verizon to reappraise the sale. For both parties the realization that damage occurring from the data theft has yet to be fully felt is a serious problem, making revaluing Yahoo much harder. Regardless of which route Verizon chooses… Read more

AT&T to buy Time Warner

MarketLine

When business acquisitions on this scale are announced they almost inevitably become political – hence extensive investment in political lobbying. Announcing a buyout, therefore, just weeks before one of the most acrimonious presidential races in living memory concludes gives a difficult birth. Both candidates have already declared their displeasure. Some Senators have also voiced concerns and their intent to heavily scrutinize any proposals that come before them. Exactly why this time should be chosen is unclear: it makes the deal far more politicized than need be the case, raising uncertainties… Read more

Football spending – Driven on by TV revenue and relegation fear

MarketLine

Headline grabbing transfer fees, staggering sums paid to agents, and a record-breaking total summer transfer spend by English Premier League clubs has prompted questions over how far football’s extravagance can go. In response, Mino Raiola, agent to Manchester United’s world record signing Paul Pogba, stated that he expects to see the first £200m ($305.6m) transfer fee paid within three to four years. With the new deal to broadcast Premier League games coming into play this summer, clubs have vast financial resources available to them, with an estimated £2.78bn ($4.2bn) flooding… Read more

British festivals face tough challenges, just ask ATP

MarketLine

All Tomorrow’s Parties (ATP), which spent 15 years attempting to set itself apart from the mainstream, commercial festivals, finally succumbed in June to the overwhelming debts which had been chasing the event for years. Liquidation and reincarnation in 2012 did nothing to rid it of its demons, and after cancelling the Drive Like Jehu curated event planned for Manchester in late April, founder Barry Hogan was forced to admit defeat. According to a new report published by couriers Parcelhero, ATP is not the first, and will not be the last… Read more

BT Sport and UEFA: Poor European football viewing figures continue to cause concern

MarketLine

BT turned up the pressure on its rival Sky in November 2013 when it announced that it had acquired the rights to become the exclusive UK broadcaster of the UEFA Champions League from 2015. The Champions League is the pinnacle of European club football and the presence of clubs such as FC Barcelona, Bayern Munich, Manchester United, and Real Madrid ensures that there is great global interest. The competitions final is now the worlds most-watched sporting event, attracting a global TV audience of around 180 million in 2015. By way… Read more

Amazon Web Services, revolutionizing cloud computing

MarketLine

Amazon Web Services (AWS) was developed alongside the online retail giant’s vast e-commerce from the world’s largest online retailer’s inception. Although having built its reputation and brand recognition on its retail operations, Amazon has gone on to expand its offerings into products and services as diverse as media, electronics and cloud computing. Responsible for over 4% of Amazon’s revenues in 2013, AWS has seen Amazon sink over 10 years of development and millions of dollars of investment into the world’s largest cloud service provider. Available in over 190 countries worldwide,… Read more

All gone Kim Jong? Both Sony and Paramount withdraw satirical films following hack and cyber threats

MarketLine

Two major studios have cancelled plans to screen films critical of North Korea following a major hack of Sony Pictures, prompting concerns that other companies may be susceptible to cybercrime to force a change in behaviour. Sony cancelled the Christmas Day release of The Interview on Wednesday, shortly after it was confirmed by US intelligence officials that North Korea was behind a recent cyber-attack on the Hollywood studio. Several cinema chains cancelled the screenings forcing the company to pull the picture altogether. In another twist, Paramount studios has reportedly banned… Read more

Spotify turning users from Premium to Uber

MarketLine

Music streaming subscription service, Spotify, has teamed up with the somewhat controversial mobile taxi app service, Uber. The partnership will get underway from November 21 when the joint service will be launched in 10 cities around the world, including London, Los Angeles, New York, Sydney, and Toronto. Both companies hope the service will be launched globally weeks after the initial launch. Providing Uber users subscribe to the Spotify Premium service, they will be able to choose what music they wish to listen to during their journey. Users will be able… Read more

Tumblr pressing play on video improvements won’t worry YouTube

MarketLine

The media networking and blogging site Tumblr have made some upgrades to their native video-player in a bid to boost revenue and keep up with their rivals. There is speculation however that Yahoo! plans to use its acquired blogging site to rival YouTube’s iron grip on the video streaming market. If this is indeed a secret ambition it is surely doomed to failure. Yahoo! bought Tumblr for $1.1bn in 2013, its revenue was $13m, now Yahoo! CEO Marrisa Mayer has announced Tumblr is expected to hit $100m from advertising revenue… Read more

Is time running out for Sony?

MarketLine

  “We must be like the Russians defending Moscow against Napoleon, ready to scorch the earth to stay ahead of the invaders. We must be Sony United and fight like the Sony warriors we are.” Exactly nine years ago to the month, Sir Howard Stringer then Sony’s first foreign CEO roused his comrades with these words, as he aimed to revive the fortunes of the Japanese electronics giant. Nine years on and with the General now departed to pastures new, Sony fights on like a war weary battalion trying desperately… Read more

Wii U-turn: is Nintendo preparing to sell on iOS following console failure and smartphone boom?

MarketLine

Nintendo has completed a volte-face by announcing it is developing games for iOS, paving the way for a relaxation of its exclusivity policy. Elsewhere, there has been a renewed interest in Nintendo’s core market, and cause a scissor polarity in Nintendo’s consumers. Pokémon Trading Card Online is now being developed by the company to be played on iPad. This represents a major departure for Nintendo, which has previously focused all of its game production efforts on Nintendo hardware, although it has released iOS apps before. A policy of hardware exclusivity… Read more

Samsung aiming to take bite out of Apple’s tablet dominance

MarketLine

With the launch of its Galaxy Tab S, Samsung has signaled its intent to take on Apple head-on in the premium tablet. Priced at the same level as Apple’s flagship iPad Air the Galaxy Tab S could be the Korean company’s last attempt to compete with Apple at the higher end of the tablet market. If rumours are to be believed, Samsung may exit the high-end tablet market if the Galaxy tab S fails to make significant inroads against the iPad. Although Samsung has been able to compete effectively in… Read more

Global Music & Video – Industry Analysis

MarketLine

Introduction On-going financial difficulties being experienced in many nations around the world, and the rise in illegal downloads have contributed to the continuing poor performance of the global music and video market. Industry figures The global music & video market shrank by -0.5% in 2011, to reach a value of $56.6bn, representing a compound annual rate of change (CARC) of -2.5% for the period spanning 2009-2013. Decline was primarily driven by the largest markets: the US and Europe, which both posted the biggest declines. The US, representing $27bn of global… Read more

Nintendo toppled by Sony as Wii U sales slump

MarketLine

A report from Japan’s Nikkei Asian Review has revealed that, for the first time in eight years, Sony’s console sales outstripped those of Nintendo to take top spot in the console sales charts (FY ending March 31st 2014). The release of the PS4 console last year helped boost Sony’s console sales both in terms of unit sales and revenue – which increased 38.5% to JPY 979 billion. Meanwhile Nintendo saw a slump in net sales, partially caused by markdowns of Wii U hardware in the US. Growth in higher margin… Read more

Financial services from Facebook?

MarketLine

Is Facebook planning to enter the European money transfer market? Yes, according to a report in the Financial Times that has been widely disseminated in the media. If so, it’s a bold move, but potentially a highly lucrative one. Let’s look first at the lucrative bit. The global money transfer market is huge and growing. One driver is remittances: money sent home by migrant workers. The figure below shows net transfers (inflows minus outflows) for several regions of the world. It is clear that between 1990 and 2010, there has… Read more

Can BT Sport challenge Sky’s dominance?

MarketLine

On August 1 2013, BT launched its sports TV offering, BT Sport, a flagship service broadcasting out of London’s Olympic Park. By paying vast sums of money to acquire the rights to a wide range of sports including Barclays Premier League football, Serie A football, Bundesliga football, Aviva Premiership Rugby, UFC, and MotoGP, and by poaching well-respected sports presenters like Jake Humphrey and Clare Balding, BT has shown that it is serious about rivaling Sky when it comes to sports broadcasting. Sky’s previous competitors, Setanta and ESPN, ultimately failed to… Read more

IMAX revenues and profits fall in Q3 2013 but future opportunities remain

MarketLine

IMAX Corporation (IMAX) has announced its Q3 2013 results and, on the surface, it does not look good: Q3 2013 revenues are down by 35.9% over the same quarter of last year, and net income is down by a substantial 89.2%. This will be of great concern for IMAX and its shareholders, but it would be wrong to write the company off at this stage. On a year-to-date basis, the company’s slide in revenue and profit is not as severe. Revenues for the first three quarters of 2013 are down… Read more

A digital future for The Washington Post?

MarketLine

Jeff Bezos, the founder and CEO of Amazon, has reached an agreement to purchase the Washington Post newspaper, in a personal capacity, for $250 million. The sale is expected to be completed within the next 60 days and will see Mr. Bezos acting as the sole owner of this leading daily American newspaper. Prior to Mr.Bezos’s offer, the newspaper was owned by The Washington Post Company, an educational and media group who also own the test preparation company, Kaplan. The deal, which includes the sale of the paper, washingtonpost.com, and… Read more