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Research

(Source: GSMA 2022 Internet Value Chain Report)

➢ Revenues across the internet value chain nearly doubled from $3.3 trillion in 2015 to $6.7 trillion in 2020. Much of that growth comes from online services, with paid-for online services soon set to exceed $1 trillion in revenues.

➢ The annual growth rate of number of users being connected to the internet globally sits at 7.5%

➢ Return on investment in infrastructure for network operators ranges from 6-11%. That is concerning due to pressures on telecom operators to keep investing capex into that infrastructure at rates of up to 20% of revenues.

Up Ahead

May 23-25: Media Financial Management Association’s Annual Conference; Tampa, FL

June 12: Cablefax’s Fiber Panels for Cable Operators, Fiber Connect Pre-Conference; Nashville

June 27-30: CTA’s CEO Summit, Santa Barbara

June 29: Cablefax’s FAXIES Virtual

July 24-27: NCTC and ACA Connects’ Independent Show; Orlando

Quotable

“When you take a look at what’s left in the bundle of value, it’s news and sports. So, you know, I don’t believe that MVPDs such as DirecTV are going to be willing to take the risk to go without some key product. Specifically, we’re talking about DirecTV, they are a very sports-focused offering, sort of the opposite of DISH. The MVPDs very much want this content. And to some degree, we’ve already crossed the Rubicon on direct-to-consumer because we had to negotiate for the right to do it years in advance. They all want this content. They know their subscribers want it, and I don’t see them taking the risk.”

– Sinclair CEO Chris Ripley at the MoffettNathanson Media & Communications Summit discussing whether the launch of Bally Sports+ raises the risk that Sinclair nets will be dropped by MVPDs

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