28 / 11 / 16

  Broadband access, Mobile Telephony , SVoD, Pay TV, Fixed Line Telephony

  Spain, USA

  DirecTV, AT&T, HBO, Time Warner

Time Warner acquisition to drive domestic AT&T subscriptions to more than 200m by end 2017

Today, HBO launched subscription video-on-demand (SVoD) service, HBO Espana, in Spain, giving it an SVoD presence in more than 10 markets across the US, Latin America and Europe. If AT&T’s acquisition of HBO’s parent, Time Warner, closes, not only will it complement DirecTV’s Latin American offering, it will also give AT&T its first European foothold. Unlike the Nordic HBO Now, HBO Espana, which costs €7.99 per month, will also include a selection of TV Shows and movies from other studios including Disney and Nickelodeon on top of HBO content.

AT&T is also unveiling its linear TV streaming service, DirecTV Now, which, along with the acquisition of Time Warner - also a 10% stakeholder in US streaming service Hulu -  will give AT&T an extensive portfolio of subscription over-the-top (OTT) services. It will also help AT&T to surpass 200m subscriptions across its domestic subscription services by the end of 2017, making it the first US telecoms company to do so. Had Time Warner maintained ownership of TWC, which had around 30m subscribers when it was sold to Charter Communications in the first half of 2016, this milestone would be reached upon the closing of the deal. The extra assets, however, would make the deal subject to more regulatory scrutiny.

AT&T has 13% of its subscribers on triple or quadruple-play packages, so the new subscription OTT services could drive multi-play customers for AT&T even higher. According to our latest consumer data, 47% of AT&T customers have access to HBO services, which could lead to as much as 6% of AT&T subscribers becoming quadruple or quintuple-play subscribers.


25 / 11 / 16

  Pay TV, OTT

  Middle East, USA, UK, Sweden, Denmark, France, Germany, Italy, Spain

  Netflix

How much is an hour of TV viewing worth?

How much is an hour of TV viewing worth to the industry? Roughly 23 cents ($0.23), by Ampere's estimates - at least in Western markets. Across eight territories in Western Europe and North America, Ampere has compared a typical consumer's broadcast TV viewing (which ranges from as low as 150 minutes per day in parts of Scandinavia to as high as 280 minutes per day in the USA) with the amount of revenue generated by the broadcast TV industry. On average across these markets, an hour of TV viewing corresponds to 23 cents in revenue generated by the industry. The USA and Denmark make the most money from an hour of TV viewing - 30 cents or more - while Italy and Spain generate just 9 cents for any given consumer's hour of TV viewing.

High revenue per hour is not necessarily always better, and may indicate underlying vulnerabilities. In both Italy and Spain, TV viewing has increased over the last decade, meaning (in spite of the underlying economic woes), TV generates more commercial impacts and has a greater role in the average consumer's leisure time and spend. But in markets such as the USA, Denmark and the UK, average TV viewing times per person have begun to slide as consumers switch over to online platforms, and revenue per-hour-viewed has climbed rapidly. Capturing a consumer's attention for an hour is now more valuable than it used to be in these markets, but this cash is now at greater risk - ad dollars are jeopardised by a loss of impressions, pay TV spend from a loss of relevance in the home.

The value per hour of the subscription video-on-demand space gives some clue as to the issues at hand. In 2015 Netflix made 19 cents in revenue per hour of video streamed to its subscribers. Taking into account the fact that many of these streams will be delivered to more than one end viewer (whereas broadcasting bodies already account for multiple simultaneous viewers in the same household), this means that on a revenue-per-hour-watched basis, Netflix is substantially undercutting the traditional broadcast model - by a factor of as much as 2x in the USA or Denmark. And the gap is widening. Coasting on overvalued viewing will only take traditional players so far, and the TV industry as a whole needs to be very wary of the dangers of a market correction towards this lower value ratio.



22 / 11 / 16

  OTT

  Facebook, Snapchat, Instagram, YouTube

Snapchat and Instagram lead change in content preference

Targeting social media video viewers is not just about considering the device environment as there are dramatic differences in the content preferences of video viewers on different social media platforms.

11 / 11 / 16

  Mobile Telephony

  France, Italy

  Free

Iliad's Italian odyssey

As Three Italia's and Wind Italy's merger is finalized, Iliad will enter the Italian mobile market as the fourth operator.

11 / 11 / 16
Are millennials moving the goalposts for premium sports?

Sport on TV is facing a demographic challenge, Ampere's analysis of data on over 30,000 consumers in Europe and the USA indicates. Young millennials are being lured away from watching sport by the plethora of other content on offer in the TV and online video market.

4 / 11 / 16

  VoD, SVoD

  North America

Vudu launches free movie streaming service

Vudu recently announced a free streaming service, 'Movies on Us' - Ampere data highlights trends in the titles available.

2 / 11 / 16

  Broadband access, Pay TV, SVoD

  Western Europe

Is the biggest threat to US media group growth the dollar?

Exchange rate effects – and specifically the strength of the dollar relative to European currencies – have been some of the key issues impacting addressable market value for the international branches of US film and TV groups.

28 / 10 / 16

  Pay TV, SVoD

  Western Europe

  Mediaset

Two months on - what Mediaset can do to turn the tables

Two months on from the aborted Vivendi-Mediaset deal, conditions remain challenging for domestic pay TV services in Europe.

21 / 10 / 16

  Netflix

Netflix and China

Netflix global ambition hinges on localisation.

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