Horizons newsletter – Week 26 // 2018
Horizons is a bi-monthly Dasym Research initiative to show you how the Dasym themes have been in the news. We publish the Horizons on our website and as an email newsletter. If you wish to receive the email, please contact Investor Relations.
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Soccer rights reach a limit
The FIFA World Cup proves the popularity of the soccer sport, making it no surprise that the national leagues are increasing the prices for their broadcasting rights. Last month the Italian and the French leagues sold their rights for a higher price. In Spain – where the bidding process is underway – La Liga demands an increase as well. The number of buyers, however, is decreasing. Pay TV operators in Spain and broadcasters such as Canal+ (France) and Mediaset (Italy) are not prepared to overpay for the rights. Not willing to drive up prices, the big online streamers are biding their time: Amazon waited until June to buy one of the unsold Premier League packages. The remaining bidders are the specialized sport distributors: pay-tv operator Sky (U.K. and Italy), the Spanish sport rights agency MediaPro (that operates the BEIN sport channels) and Perform’s streaming service DAZN. Fewer bidders might make price increases challenging, but the leagues are prepared: setting up their own (online) channels and/or creating alternative rights packages for streaming, linear TV, highlights and other content.
Demographic push for smart tech
Many countries across the world face declining populations hence increased fiscal burdens on their workforce and rising healthcare costs. New technologies can be a solution to these “demographic problems” by replacing the worker and improving healthcare services. In Japan, 5,000 care homes are testing “carerobos”, to nurse elderly, while South Korea plans to install sensors in 500 rental homes to detect “Godoksa”, a social problem where old people die a lonely death and remain undiscovered for a long time. Furthermore, China is speeding up the integration of AI in every domain of medical care, with Chinese tech companies already disrupting the Chinese healthcare system. Why are East Asian countries leading in the adoption of smart technologies to manage their demographic transitions? One reason, according to the World Value Survey, is that these countries hold a more positive view on whether technology and science can make their lives healthier, easier and more comfortable, and make the world better off. While Western countries pioneered the welfare state in the previous century, East Asian countries hold its future.
Muslim Millennials drive new forms of consumption
A new report from Pew Research shows that younger generations in 106 countries all over the world are less religious than their elders. This secularization trend is even visible in Muslim countries. Still, Muslims are the fastest growing religious group and the research indicates no significant reduction of religiosity among younger Muslim generations. By 2030, the Muslim middle class is expected to triple to 900 million people and Muslim consumers are expected to account for 26% of the global population, of which 50% will be under the age of 30 years. Especially these vast cohorts of Muslim Millennials are looking for ways to combine their modern lifestyle with being religious and are driving new forms of consumption. Sharia-compliant banking as a concept of halal banking has been expanding over Muslim countries, the Muslim travel market sector is rapidly growing, and by 2030 the global halal market from food to beauty and clothing will be worth $8 trillion. So even in a secularizing world, religiously inspired consumption has still room to grow.