Technology & Media

We have worked on a number of instructions in the technology and media sectors. Operations here are often characterised by medium to long-term product and service developments, and a constant need to innovate in competitive markets.

Many companies in these sectors serve their end-customers directly, meaning that revenues may be spread over a very high number of individual customers.

Brands, customer goodwill and other intangible assets (which may not be recorded on an entities balance sheet) are commonly the most valuable parts of technology and media companies. Valuations of such ‘assets’ may be subject to a high level of uncertainty due to the huge number of factors influencing value.

Where revenues are based on a subscription model, there can be complex mechanisms driving changes in revenue, e.g. new subscribers, upgrades, downgrades, terminations and terminated subscriber win-backs. Discounts and supplementary offers are the main tools to win new subscribers and upgrades, while also being used to minimise downgrades and terminations.

As a result of this complexity, an incident lasting a few days or weeks can result in financial impacts lasting for years if there is permanent degradation to the overall subscription base. Demonstrating this can be extremely difficult and requires a full understanding of the consumer modelling data use to monitor and maintain subscriptions.