FTSE 350: Streaming and streamlining

American behemoths Netflix (US:NFLX) and Amazon (US:AMZN) were at the forefront of this technological movement. But these stocks aren’t alone in the streaming space. Other US players entered the fray last year – among them, Apple (US:AAPL) and Walt Disney (US:DIS).

It’s easy to see why some are describing this chaotic, fast-evolving storyline as ‘the streaming wars’. Whether there will be one clear victor remains to be seen. In any case, on this side of the Atlantic, ITV (ITV) is attempting to carve out its own niche. The group has, with the BBC, launched ‘Britbox’ – bringing together “the nation’s favourite programmes” in a competitively priced bundle. It has also cited data to suggest that people are open to signing up to more than one streaming deal. We haven’t, it seems, reached ‘peak stream’ yet.

We anticipate updates on the progress of Britbox’s UK-centric platform in the coming months. Overall, ITV said at the nine-month stage in November that it was on track to meet its full-year guidance (with results due in March) – expecting a dip in total advertising revenues of 2 per cent, and revenue growth of at least 5 per cent for its studios business.

Elsewhere in the expansive London-listed media realm, companies have been doing less streaming and more streamlining. Advertising group WPP (WPP) sold 60 per cent of its data and analytics business Kantar to Bain Capital in 2019. The proceeds of this are expected to land at $3.1bn (£2.4bn), with WPP retaining around 60 per cent of this sum to reduce debt. The remainder is being distributed to shareholders via a share buyback programme.

WPP maintained its 2019 guidance at the third-quarter mark, but acknowledged the possibility of “twists and turns” en route to achieving its longer-term goal of sustainable growth in line with peers. More detail on the advancement of this strategy may be given in February’s results – and we could, presumably, see further simplification of the group’s assets this year.

While continuing to bulk up in some ways (for example, via the recent acquisition of data-driven intelligence provider Wealth-X), Euromoney (ERM) is simultaneously conducting a strategic review of its asset management business. The division has endured ongoing structural and cyclical challenges, and was held for sale within Euromoney’s November results.

The group also saw its investor register ‘streamlined’ last year, when the Daily Mail and General Trust (DMGT) redistributed its 49 per cent stake to its own shareholders. Euromoney has arguably entered 2020 as a more independent entity with greater liquidity in its shares. We await further news on the asset management business, but the group has seen good growth in its pricing segment. Ongoing M&A activity seems highly probable.