November 30, 2009
Inside Market Data - Special Report
Report: Bloomberg Gains as Spend Falls
The financial industry
will spend $22.7 billion worldwide on market data and related
services this year, a decline of 1.5 percent from $23 billion in
2008, primarily as a result of budget and staff cuts at end-user
firms that have led to reductions in data terminals, according to
research released this week by
Burton-Taylor International Consulting LLC.
Spend in the Americas has been hit hardest by the reductions, with a 4.9 percent decrease, compared to flat growth in Europe, the Middle East and Africa, mitigated somewhat by Asia, where spend has increased in almost every country throughout the region, rising by 6.5 percent this year overall and reflecting the maturation of Asian markets, says Douglas B Taylor, managing partner at Burton-Taylor.
Another area bucking the overall trend with an upswing in spend is commodities and energy data, mostly resulting from demand for commodities data in Asia and as a result of volatile prices in energy markets, with vendors averaging revenue growth in the mid-teen percentage range for that market segment, Taylor says.
Budget cuts have hit spend on desktop data services by broker-dealers’ equities sales and trading groups and retail wealth managers the hardest, while investment managers have increased their expenditure on data as new regulatory requirements drive sales of pricing and reference data, and in response to the low-latency data needs of automated trading, he says.
Of the leading data vendors, Taylor projects that Thomson Reuters global market share will fall from 34 percent in 2008 to 33.2 percent in 2009, with contraction in the Americas and EMEA, and flat growth in Asia, while Bloomberg’s share is expected to grow from 24 percent in 2008 to 27.9 percent in 2009, with flat growth in the Americas and EMEA and increases in Asia driving a 2 percent growth in overall revenue at the vendor. Excluding revenues derived from other business lines, such as trading systems, Burton-Taylor calculates market share for Thomson Reuters and Bloomberg at 29.4 percent and 29.2 percent, respectively.
According to the report, Bloomberg will increase its market share in the Americas from 26.3 percent in 2008 to 27.6 percent in 2009, surpassing Thomson Reuters, whose Americas market share is projected to contract from 28.8 percent in 2008 to 26.6 percent in 2009. Though both vendors were affected by desktop reductions and budget cuts in the Americas, price increases and datafeed sales were sufficient to offset the revenue drop at Bloomberg to provide an estimated $6.32 billion in revenue in 2009, enabling the vendor to gain market share on Thomson Reuters, which is expected to post 2009 revenues of $7.54 billion, Taylor says.
Meanwhile, Interactive Data emerged as the fastest-growing provider in Asia in 2009, while FactSet Research Systems saw the largest growth overall among data vendors with a projected 5.1 percent revenue increase to $620.9 million in 2009, with a compound annual growth rate of 16.5 percent over the past four years. In fact, FactSet and Standard & Poor’s subsidiary Capital IQ are the only financial information providers with both positive growth and at least $100 million in revenue across the Americas, EMEA and Asia in 2009, Taylor says.
by Vicki Chan
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.