To start a new section, hold down the apple+shift keys and click to release this object and type the section title in the box below. The bottom line While UK-native media organisations are very successful at exporting their content, they appear to be focusing predominantly mature markets in Europe and North America, potentially relying on acquisition (or being acquired) to boost their scale and international footprint. The largest companies in our ranking are likely to have a wider geographic footprint than the most profitable companies. Our ranking therefore proves that it is possible to be highly profitable without seeking global expansion. For those companies seeking new revenue opportunities, improving connectivity and the continued growth in smartphone use are likely to drive demand for media content in developing markets. To be successful, media companies need to navigate challenges around managing and protecting their IP, as well as finding ways to establish a foothold in those markets, such as local partnerships or by acquiring existing businesses in those markets. Local vs Local Mature established Global global • Majority of revenues generated • Focussed predominantly on • Global presence in the UK western markets • Revenues spread across • Typically have growing presence developed and developing and investment in developing markets markets Critical • UK market for product set is • Products and services that • Have products and services success large translate well to other English- that are easy to tailor to local factors • Have products that are language or highly developed preferences targeted at UK audiences markets (eg. News, data • Can quickly set up operations products) in new geographies • Have a cost base that varies in line with local market conditions Challenges • Vulnerability to economic • Vulnerability to economic • Lower price points in of this downturns downturns developing markets model • Growth constrained by size • Growth contrained by size and • IP protection and regulatory and maturity of the market maturity of the market differences • Competitive landscape mature • Competitive landscape mature • Establishing local partnerships and congested and congested or identifying suitable acquisition targets Media Metrics The state of UK media and entertainment 13