There is a large hat conspicuously on the table as CTN’s managing director, Stephen Watson, presents the results of our third annual webcasting survey. Last year, when just 74 out of the FTSE 250 were using streaming media, he promised, ‘I’ll eat my hat if the number of FTSE 250 webcasts doesn’t jump dramatically during the next year.’ With the revelation that the number has fallen to 64, Watson starts chomping on his sombrero.
Watson surmises the fall in usage is due to bad market conditions that have caused smaller companies to ‘rein in’ their IR activities and resist new technology.
That’s the bad news. The good news is that the number of FTSE 100 companies using streaming media has risen from 83 to 90, confirming the webcast as an established and proven IR tool. For the first time CTN (Simplywebcast has lately adopted the brand of its parent CTN, which produces interactive and video communications for companies) looked at the FTSE Eurotop 100. It found the continent following closely in the footsteps of the UK, with 83 of the companies in the index currently webcasting.
As for the big news, according to CTN’s Richard Coope, whose eyes are still swimming from his webcast trawl, ‘Broadband and interactive Q&A have leapt ahead. Institutions are operating in a broadband environment; it’s their tool of choice. And now it’s the norm for companies to offer a high bandwidth connection for their webcasts.’
The survey shows 62 FTSE 100 companies offering the broadband option, compared to just 25 last year. Watson sees broadband coming into its own with future online operating & financial reviews (OFR, which is UK equivalent of MD&A): ‘Companies are committing to broadband now but a lot of the value will really be in the broadband environment of the future.’
CTN uncovered only four webcast AGMs in the UK, in contrast with 27 in the Eurotop 100 (note that there is overlap between the FTSE 100 and the Eurotop 100). But with the spread of online voting there might come the day when companies are obliged to webcast the sometimes unruly annual event. Consider GlaxoSmithKline’s May event, which featured vocal criticism of executive remuneration. The pharmaceuticals giant opted not to webcast but CTN believes streaming media could have served GSK well. ‘It was actually quite a good meeting,’ Watson remarks. ‘However, it looked chaotic on the evening news. A webcast could have told the real story.’
Behind the scenes some big companies are ‘trialing’ AGM webcasts. BP, for example, has considered it for the past two years and may webcast its AGM in 2004 in tandem with the introduction of online voting.
Critical criteria
CTN’s Nathan Oxley studied the whole universe of FTSE 100, FTSE 250 and Eurotop 100 web sites between April 21 and May 23. Two new criteria were added to the 32 from our surveys in 2001 and 2002: whether webcasts are available in a format for downloading to a palm-top computer (so far Vodafone seems to be the only company with this feature); and evidence of interactivity like e-mail questions (only five companies with interactivity were identified – all of them from continental Europe).
Among the FTSE 100, CTN generally found the same non-webcasters as last year. These included Morrisons (‘just don’t want our mugs on telly’) and Canary Wharf (which prefers investors come in person and see what they’re investing in). BOC Group is a newcomer to this band of recalcitrant webcasters, having stopped the practice over the past year.
Continental European companies have their own challenges to face in terms of language differences. Many offer simultaneous translation, but not necessarily to good effect. The best webcasts give the viewer or listener a choice but the worst give you both languages at once. Continental companies haven’t taken to the CEO interview yet, with only seven of the Eurotop 100 featuring it versus 23 of the FTSE 100.
Considering how hot CSR is as an issue, it is surprising that only two companies in the survey produce any webcasts supporting their CSR policies. ‘Does this reveal a discrepancy between the commitments companies say they’re making to CSR and the commitments themselves?’ Watson wonders.
CTN, along with CSR consultancy Futerra, recently studied how UK companies are communicating CSR online. Their conclusion is ‘slowly’. There is also a strange inverse correlation in the level of communications: ‘Some companies with strong records in CSR are doing the worst job of communicating. Conversely, some of the worst corporate citizens make a big song and dance about CSR on their web sites,’ Watson says. Among the FTSE 100, only 48 companies have a CSR report online, including 36 that make it useful and engaging with some form of interaction for readers.
While clearly disappointed with some of the survey results (and his headwear lunch), Watson nonetheless says there’s been good progress among large companies, particularly in continental Europe. ‘People used to see webcasting as a substitute for face-to-face meetings,’ he remarks. ‘But now the archive is very important, too.’
Does webcasting help companies live up to the spirit of full, open and honest communications that is now demanded of them? On the surface, yes. But consider that just 51 companies out of the FTSE 100 include the Q&A on the webcast, leaving the other 39 open to accusations of selective disclosure. Eurotop 100 companies are slightly better here, with 62 companies putting the Q&A online. Smaller companies are awful, with just eleven of the 69 webcasting FTSE 250 companies archiving the Q&A on the web. In fact, while the technology is willing, the spirit is weak.
Webcast Streams (%)
| FTSE 100 | FTSE 250 | Eurotop 100 | ||||
| 2001 | 2002 | 2003 | 2002 | 2003 | 2003 | |
| Companies with streaming media | 47 | 83 | 90 | 30 | 28 | 83 |
| Video webcasts | 39 | 64 | 64 | 19 | 16 | 66 |
| Broadband option | 23 | 25 | 62 | 14 | 11 | 59 |
Critical picks
Reuters’ prelim results
Reuters has a webcast micro-site with different formats, bandwidth options and ‘help’ available. The webcast itself has a large, high-quality video display and a drop-down index for agenda and Q&A. The whole package is integrated into the design of Reuters’ IR web site and has a ‘clear, engaging layout.’
BP’s location report videos
These archived webcasts show how BP looks from far-flung points of view, providing a good complement to the usual material on an IR web site. The videos themselves are simple to use and accessible, with links to related information and footage. Other good examples of companies using webcasting not just for earnings results but for other IR-related information include CSR videos by BAT and RBS.
Swisscom’s AGM webcast
Swisscom presents a clear, large image with a high standard of production. The micro-site includes options for downloading the slides and a drop-down menu showing the agenda.
Deutsche Post’s analyst conference
With a large picture and large, clear charts, Deutsche Post uses webcasting to good advantage. The webcast follows the branding of the main web site and viewers can choose to listen and view slides in German or English. There is an automatic, pop-up feedback page, too.
International Power’s prelim results
A high quality image, download options and a good index make International Power’s webcast a strong one.
SkyPharma’s prelim results
The production values of SkyPharma’s webcast are high and the material cleanly and clearly displayed.
Quantitative questions
1. Is streaming media being used?
2. What type of webcasting is being used?
(video/audio/synchronized & downloadable slides, PDA)
3. In what area is it being used?
(IR, product, communications)
4. For what reason is it used?
(results briefings, annual meetings, investor events)
5. Which formats are offered?
(RealPlayer, Windows Media Player, Quicktime)
6. What connection speeds are offered?
(standard, fast/broadband)
7. What registration facility is offered?
(online registration, e-mail address required)
8. Is Q&A included in webcast?
(Q&A available, indexed Q&A)
9. What additional features are available?
(CEO interviews, speaker biographies, downloads, specific content for retail investors, indexed highlights, feedback facilities, interactivity)
Qualitative questions
1. Webcast accessibility
Is the webcast easy to access and find?
Is the webcast easy to navigate with clear functionality?
Is this an effective online facility?
2. Webcasting production values
Does the webcast have good picture quality?
Does the webcast have good sound quality?
Is the quality of the actual webcast of a high standard?
3. Design and brand experience
Is the webcast effectively integrated into the web site design?
Does the webcast add to the company’s online presentation?
Does the webcast reflect the company’s brand values?
The top
| FTSE 100 | % score | Eurotop 100 | % score | FTSE 250 | % score |
| BAE Systems | 84 | BAE Systems | 84 | International Power | 74 |
| Barclays | 84 | Swisscom | 84 | Dimension Data Holdings | 71 |
| Abbey National | 81 | Barclays | 84 | Balfour Beatty | 68 |
| BP | 81 | Abbey National | 81 | SkyePharma | 68 |
| Centrica | 81 | BP | 81 | ARM Holdings | 65 |
| Reuters Group | 81 | Credit Suisse Group | 81 | Britannic Group | 65 |
| Vodafone | 81 | Deutsche Post | 81 | Pilkington | 65 |
| Aviva | 77 | Vodafone | 74 | RMC Group | 65 |
| Kingfisher | 77 | Aviva | 77 | Rolls-Royce | 65 |
| Reed Elsevier | 77 | Royal Bank Of Scotland Group | 77 | United Business Media | 65 |
| Royal Bank Of Scotland Group | 77 | SAP | 77 | Aegis Group | 61 |
| Alliance & Leicester | 74 | St Gobain | 77 | British Vita | 61 |
| Friends Provident | 74 | Aventis | 74 | EMI Group | 61 |
| Smith & Nephew | 74 | Bayer | 74 | IMI | 61 |
| Novartis | 74 | ||||
| Swiss Reinsurance | 74 | ||||
| UBS | 74 |
The bottom
| FTSE 100 | % score | Eurotop 100 | % score | FTSE 250 | % score |
| HSBC | 23 | HSBC | 23 | Galen Holdings | 23 |
| BG Group | 32 | Telecom Italia | 29 | Amlin | 29 |
| Emap | 35 | Enel | 32 | Cox Insurance Holdings | 29 |
| Kelda Group | 35 | Nokia | 35 | Intermediate Capital Group |
29 |
| GKN | 45 | Ahold | 39 | Luminar | 29 |
| Johnson Matthey | 45 | Roche | 39 | William Hill | 29 |
| Rentokil Initial | 45 | Endesa | 42 | Capital Radio | 32 |
| Unilever | 45 | L’Oréal | 45 | Acambis | 35 |
| WPP Group | 45 | Unilever | 45 | National Express Group | 35 |
| Whitbread | 48 | Dexia | 48 | Securities Trust of Scotland |
35 |
| Munich Re | 48 | Matalan | 39 | ||
| Telefonica | 48 | ||||
| Volkswagen | 48 | ||||
| Zurich Financial Services | 48 |
