February 29, 2008
Gerson Lehrman Group Councils - Analysis View
New Thomson-Reuters Combination Will Command 32% Share of US$23 Billion Market
The Thomson-Reuters merger approval reduces “the Big 3” financial information players to “the Big 2”. Not only does it dramatically change the market share of the dominant players but it also limits competition and vendor choice for the users of information…at least until a new vendor steps-up to create “the new Big 3".
shows that the global spend for financial information and analysis
topped US$23 billion in 2007, with roughly half coming from the
Americas and almost 30% occurring in the Fixed Income/Foreign
Exchange (FX) Sales & Trading segment.
I estimate that worldwide information and analysis spend by the corporate and financial services sectors grew 4.9% in 2007. Asia led all regions with nearly 8% growth, year on year. Not surprisingly, China was the fastest growing country at 12.9%, followed by India at 11.5%. Fixed Income/FX Sales & Trading, totaling US$6.47 billion globally, is the largest single segment within each major region. While Investment Management is the second largest segment in the Americas and Asia, Equity Sales & Trading holds the number two spot in the Europe, Middle East and Africa region.
Although 2008 will be challenging for the industry, I expect financial information/analysis spend to grow at a rate of just over 6% for the year, to US$24.4 billion. Regulatory changes cascading through countries around the world, coupled with the continued evolution and maturity of the markets in China and India, will drive growth.
Uncertain economic times, particularly in the US, will make 2008 a year of caution for many clients of the information/analysis vendors. Fortunately for data suppliers, uncertain times often increase the importance of high-quality, differentiating content. With a smaller margin for error, and US economic uncertainty generally seen as short rather than long-term, many financial services clients will be less focused on internal contraction and more focused on finding Alpha. Consequently, they’ll continue to invest in premium information and tools.
Even with the credit crunch and pending elections in North America, 2008 looks to be an interesting and exciting year for the industry. Generally, stricter reporting standards and the growing trend for corporations to take a more proactive and direct approach to their investor relations and communications globally, set this up to be a banner year for spend in the Corporate segment.
Moreover, the merger of Thomson and Reuters (which by my calculation gives the new combination a 32% share of this US$23 billion market) will force answers to several interesting questions. Will the new combination seek to maintain a dominant position in the low margin Wealth Management segment? How will the Investext, FirstCall, Multex, Datastream and EcoWin franchises be impacted by the mandated database sale? Which company will step-up alongside Thomson-Reuters and Bloomberg to form “the new Big 3”?
My guess is that IDC will take the first run at joining “the new Big 3”, if they can 1) fill their current strategy void and 2) acquire experienced talent to integrate real-time data with historical/reference data and news. FactSet could also make a run, if they were to 1) find the motivation and 2) find a way to continue to meet their high customer service standards while pursuing new markets.
GLG members may download my 2008 Global Financial Information/Analysis Competitor Market Share Maps and Segment Sizings free of charge by visiting the Research Request page and inputting research sample code FINMARKET2007GLG.
Latest Burton-Taylor News
May 17, 2013
Il Sole 24 Ore
Offuscato Il Modello Bloomberg
Giornalismo, scoop e una rete di dati
funzionano se vangono mantenuti separati
Il sogno di Michael Bloomberg è rosa ed è una celebrità in tutti i continenti. Un sogno scosso da uno scandalo che proprio per questo motivo crediamo stia irritando il sindaco di New York assai più del previsto. Avvicinare il suo nome a pratiche giornalistiche a dir poco eterodosse rischia di allontanarlo dall'ambito frutto che siede in un cubo nero e luccicante sulla sponda del Tamigi: il Financial Times. Full Story
This story, as well as all Burton-Taylor news may be accessed through the Press Room link below.
Latest Burton-Taylor Research
April 10, 2013
Public Relations Information & Software Global
Share & Segment Sizing 2013
Burton-Taylor delivers a comprehensive, 88 page analysis of public relations information & software supplier share, demand segmentation, vendor demographics and survey results of key user expectations. The analysis is sufficiently detailed as to allow public relations information & software providers or industry analysts to clearly understand competitive positioning currently, historically, globally, regionally and within individual demand segments and to enable public relations information & software users to make better informed, more confident and more appropriate purchase decisions which could result in greater profitability.
This report, as well as all Burton-Taylor free or for purchase research, may be requested through the All Research link below.