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Media

Video Transcript

2018 has been a real year of growth across the media sector. In marketing services, there’s been more than 7% growth in 2018 and in the content sector, whereas in 2017 we were talking about Netflix and Amazon, this year we’re talking about Facebook, Amazon, Apple, Netflix and Google. So, there’s been great opportunities for growth.

Challenges

The challenges for 2019 across the sector are varied. For marketing services the challenge is around generally people and also debtor days. In terms of people it’s trying to get the right mix of both permanent and freelance staff and for debtor days it’s around really trying to make sure you collect those debtors early.

So, in 2019, we see payment terms for content production as being a challenge. It’s been a challenge over the last sort of 12 - 24 months and we see that continuing. The main issue there is that the FAANGS on the whole pay post-delivery, up to three years.

Now that can cause a real issue in terms of cashflow for production companies and also the number of budgets can be a challenge for production companies. On one hand, it’s making sure they’ve got the funding in place for those productions but also a bigger issue is actually making sure that they can get the right people on set when they’re making these productions.

Opportunities

In 2019 we see a number of opportunities in the marketing services space. Primarily we see digital as a real growth area, also we think there’s real opportunities around M&A. It’s a consolidating market and the businesses within those areas are in a good space and so 2019 might be a good time to have those conversations.

We see real opportunities in the content space with the rise of the FAANGs, so Facebook, Apple, Amazon, Netflix and Google, there’s just an increasing demand for content.

Looking Forward

At Barclays we’ve been supporting the media sector for over 30 years and we’re constantly working with production companies, with broadcasters, with SVoD providers to come up with solutions to the challenges that we see arising.

So if you do have any issues or do wanna talk to us about what you’re making then give us a call.

End transcript

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