MAM
Frost & Sullivan’s report on the streaming media market
MUMBAI: Media streaming over the Internet faces stiff competition from traditional television. The anticipated convergence of television, cable, and the Internet and high speed Internet access are expected to lessen the impact of this restraint.
New analysis from Frost & Sullivan on the world media streaming platforms, reveals that revenue in this market totaled $720.5 million in 2003. The number is projected to grow significantly by 2010.
One of the company’s analysts Mukul Krishna was quoted in a company release saying, “Online content owners are under pressure to provide a value proposition that can draw customers from televisions to their desktop screens. This is an uphill task, considering the present quality of streaming over the Internet compared to that of television and the amount of content available to television viewers.”
The report further noted that in order to compensate for the lower visual quality, Internet content providers need to focus on niche markets such as adult and sports entertainment — otherwise available by subscription or pay-per-view. Delivering a richer viewing experience through higher bandwidth coupled with better video compression is also likely to attract new users.
There is also a rising demand for high quality video streaming, sparked off by the application of digital media in the phenomenally growing mobile wireless market. With end users looking for rich multimedia experiences, streaming platform providers are striving to enable delivery to portable wireless devices states the release.
These platform providers are usually multinational giants with the financial might and resources to provide free basic media players along with their systems. With two or three branded players installed in systems, there is hardly any demand for new units offered by new entrants. This lack of demand coupled with lack of resources proves to be a barrier to the entry of new market participants, and established companies usually acquire any new entrants. In addition, the market is beset by concerns such as piracy and digital rights management, patent infringement litigation, and anti-trust issues.
However the report has noted that in spite of these challenges, the media streaming platform market holds great potential for the participants. In fact, participants from the telecom and other allied technology markets are also seeking opportunities in the streaming space which adds a new dimension to the competitive environment.
“In a nutshell, market success of participants will hinge on the level of functionality, portability, and reliability they can provide to their customers” concluded Krishna.
International growth consultancy group Frost & Sullivan has been supporting clients’ expansion for more than four decades. Its market expertise covers a broad spectrum of industries, while the portfolio of advisory competencies includes custom strategic consulting, market intelligence, and management training.
Brands
Estée Lauder to shed 10,000 jobs as new boss bets on digital shift
The cosmetics giant raises its profit outlook but stays silent on a possible merger with Spain’s Puig, as job cuts deepen and a three-year sales slump weighs on the turnaround
NEW YORK: Stéphane de La Faverie is not done cutting. Estée Lauder announced on Friday that it plans to eliminate as many as 3,000 additional jobs, taking its total redundancy programme to as many as 10,000 roles, up from a previous target of 7,000 announced a year ago. The company, which owns La Mer, The Ordinary, Tom Ford, and Aveda, employs roughly 57,000 people worldwide. The mathematics of what is now being contemplated is stark.
The fresh round of cuts is expected to generate a further $200 million in savings, bringing the total annual savings from the programme to as much as $1.2 billion before taxes. That money, De La Faverie has made clear, will be ploughed back into the turnaround.
A CEO in a hurry
De La Faverie, who took the helm in January 2025, inherited a company that had endured three consecutive years of annual sales declines. His response has been to move fast and cut deep. A significant portion of the latest redundancies reflects his push to reduce headcount at US department stores, long a cornerstone of Estée Lauder’s distribution model but now a channel in structural decline. In their place, he is accelerating the shift toward faster-growing online platforms, including Amazon.com and TikTok Shop, a pivot that is reshaping not just where Estée Lauder sells but how it thinks about its customers.
The numbers are moving in the right direction
Despite the pain, there are signs the medicine is working. Estée Lauder raised its profit outlook for the remainder of the fiscal year, guiding for adjusted earnings per share in the range of $2.35 to $2.45, above analyst estimates and a notable step up from the $2.05 to $2.25 range it had guided for in February. Organic net sales growth is expected to come in at 3 per cent, the company said, at the high end of the range it set out in February.
The share price tells a mixed story. After De La Faverie took charge, the stock surged nearly 60 per cent, buoyed by investor optimism that a longtime company insider could finally arrest the decline. But 2026 has been rougher: the shares have fallen 27 per cent this year, weighed down by disappointing February results and the overhang of unresolved merger talks with Spanish beauty giant Puig Brands SA. The company gave no additional details about those discussions on Friday, leaving the market to guess.
Silence on Puig
The proposed tie-up with Puig remains the most consequential unknown hanging over Estée Lauder. A deal with the Barcelona-based group, which owns brands including Carolina Herrera and Rabanne, would reshape the global luxury beauty landscape. But with nothing new to say and a turnaround still very much in progress, De La Faverie is asking investors to trust the process.
Three years of sales declines, 10,000 job cuts, and a merger that may or may not happen. At Estée Lauder, the overhaul has barely started.
