MarketLine Blog

Posts about Media

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

BT’s offering unlikely to dethrone Sky from the Sports TV market

MarketLine

BT launched two new channels aimed at carving a lucrative pound of flesh from the incumbent Sky for the sports television market, although it is unlikely to seize the throne under its current plans. BT has invested £736m in 38 Premier League games and exclusive of coverage of the Aviva Premiership rugby season, with over 500,000 customers signed up. Other offerings include UFC, MotoGP, and Women’s Tennis. The company claims that its channels will be free to its broadband customers, although this is a half truth. Tablet, smartphone and computer… Read more

Was Tumblr worth $1.1bn for Yahoo!?

MarketLine

Yahoo!’s acquisition of blogging service Tumblr has been all over the news in the past few days, as the company looks to make its first big-ticket acquisition of 2013. Remarkably, the agreed price of the acquisition stands at $1.1bn, a substantial amount considering that Tumblr accrued just $13m in revenues last year. So, the question begs to be asked, why has Yahoo! paid such a premium in order to seize control of the fiver-year-old company? The answer lies with its online presence, specifically within the social media space. According to… Read more

Manchester United: Number 1 on and off the field

MarketLine

As the 2012/2013 Premier League season draws to a close, it looks very much like Manchester United is going to regain the right to call itself the best team in the land. Surely not even the club that loves to make things hard for itself can throw away a 13 point lead with only 5/6 matches remaining? The club’s success is not, however, limited to the field of play with financial data related this week showing that the club is by far and away the Premier League’s number one when… Read more

BSkyB Increasing Market Share in the Face of New Threats

MarketLine

British Sky Broadcasting Group plc (BSkyB) is active in the UK wholesale pay-TV market through its subscription television service Sky. It is the market leader in this area with a market share of 70%.  In recent years, the company has also diversified its operations to include fixed-line telephony and broadband services and has been successful in establishing a significant presence in these markets. This case study shows how BSkyB has achieved this. The Sky brand has become synonymous with technological advancement and product innovation. The launch   of pioneering services such… Read more

Google settles and wins in Brussels

MarketLine

Although Google is now — for the first time in the company’s history — giving in to proposed constraints on how it presents its search results, the company is clearly the winner in a three-year investigation involving both US authorities, the EU commission, and what can be called effectively the ‘litigants’: rivals Microsoft, Expedia, and other big tech affected heavily by Google’s search algorithms. Under the terms, contained in a draft deal formally submitted this week, Google will be under affective constraint to not only label its own specialist search… Read more

BT buys ESPN’s UK and Ireland channels

MarketLine

BT is proceeding full steam ahead on its mission to rival BSkyB as the UK’s leading sports broadcaster and today announced an agreement to buy the ESPN and ESPN America channels. The deal, the details of which remain scarce, will allow BT to significantly increase its live sports coverage, with ESPN currently holding rights to show FA Cup, Scottish Premier League, Uefa Europa League, and German Bundesliga matches. The deal is expected to complete in July this year and if all goes to plan, will coincide perfectly with the planned… Read more