Cisco will continue with its acquisition spree as it looks to diversify away from its legacy core networking products. Ericsson has been mooted as a target, and while the merged company will have unrivalled scale and reach, it would also need a level of integration that neither company has so far experienced.
Sky has launched a streaming service outside its core footprint in Europe, for the first time. Targeting Spain, following Netflix and HBO, is interesting, but we believe the structure of the market, moving towards a high level of convergence, will mean Sky will have a limited customer base to address.
Should they choose to, OTT players could become major players in the sports content market. As usage is geared towards streaming, they have the financial clout to outbid their rivals, which are rationalising their spending as price inflation hits premium sports content. Fragmentation and the live nature of the content will continue to be hindrances in the short-to-medium term however.
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Thanks, BMI Research