AT&T provided the market with some details on its upcoming streaming video service. Press reports broke the news of Facebook settling with the FTC on its privacy breach issue with Cambridge Analytica. It prompted a 'relief rally', as the stock went up 4.3 percent in week 28. The internet platform majors were getting ready to be heard by US politicians next week. The political headwinds apparently have already been discounted, since the Alphabet stock was up 1.2 percent. ComScore lost another 13 percent, making it the worst performer in our index from a year-to-date perspective, with a loss of 68 percent.
Last week's winner was Prisa (+6.5%), followed by Twitter (+4.4%) and Facebook. The Telecompaper Stock Index Global Consumer Media was up 1.3 percent, while the S&P 500 gained 0.8 percent.
Broadcasting and video
- AT&T (-1.9% for the week) revealed the name of its upcoming streaming video service, HBO Max, and gave a preview of the content that it will carry.
- Vivendi's (+0.2%) Canal+ was forced to reorganise its business, with up to 500 redundancies.
- Vivendi further objected to the way Mediaset (-4.5%), in which it holds an almost 30 percent stake, is setting up a new holding company in the Netherlands. In the meantime, speculation started regarding possible tie-ups with Mediaset's new holding Media For Europe; candidates mentioned were Media Capital in Portugal, a unit of Spanish Prisa (+6.5%), and French radio and TV group NRJ (+0.6%).
- Mediaset Spain (-5.4%) launched its own streaming video service Mitele Plus.
- Atresmedia (-6.9%) and Mediaset Spain may be looking at a fine based on anticompetitive behaviour on the advertising market, once the regulator CNMC concludes its investigation. The fine however could be lower than originally feared.
- RTL (-1.2%) announced plans to integrate three units in the field of digital video, including United Screens, Divimove and RTL MCN.
Publishing
- Lagardere (-0.2%) is considering exiting the sports-related market segments.
- The Axel Springer (+0.2%) board recommended the KKR offer to its shareholders.
Internet platforms
- It was reported that Facebook (+4.3%) is settling with the FTC in a deal worth USD 5 billion for allowing Cambridge Analytica access to its data. The fine is considered rather limited.
- France approved a tax on internet platforms and the US was quick to announce that it would look into how this could hurt American companies.
- The House Judiciary Committe scheduled a hearing for 16 July where Facebook, Alphabet's (+1.2%) Google, Apple and Amazon will have to defend themselves in an antitrust case related the large internet platforms.
- Facebook also needs to answer the US Senate Banking Committee (16 July) and the House Financial Services Committee (17 July) in relation to its plans to launch a blockchain-based currency and wallet, Libra and Calibra, in 2020.
Advertising
- WPP (-3.1%) sold a 60 percent stake in research firm Kantar to Bain Capital. The deal values Kantar at USD 4 billion.
- WPP further won a large advertising deal from Centrica (energy company) and was in the running for the Vodafone account, competing with Dentsu (-2.6%) and Publicis (+0.4%).
- The latter announced a restructuring and won a deal for a brand relaunch by BT (telecoms).
