Brazil and Latin America - WikiLeaks 2013/SPT Networks Latin... · • Group of five channels...
Transcript of Brazil and Latin America - WikiLeaks 2013/SPT Networks Latin... · • Group of five channels...
Brazil and Latin AmericaNetworks Regional Overview
January 2013
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•Population of 590M
•Total TV HHs: 135M
•Pay TV HHs: 50M
•21 Countries and select Caribbean islands
•Primary Countries‒ Mexico‒ Brazil‒ Colombia‒ Argentina‒ Chile
Latin and South America Region
SPT office locations
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Competitive LandscapeHBO Distributed Group
• Group of18 channels including premium and basic channels (SPT, Warner, AE, History, Bio, and E!)
• Based in Miami and Caracas with sales offices across region• SPT sold remaining interest in HBO LatAm in March 2011. SPT is
distributed under a five year agreement which has a five year renewal option
Fox Group• Group of 21 channels including premium (Telecine and Moviecity)
and basic cable (Fox, FX, Nat Geo). Also distributing Universal channels
• Launched Fox Sports in Brazil in 2012• Based in Los Angeles and Argentina with sales offices across
region
• Turner Group• Group of 15 channels including Turner, CNN, Space and Cartoon
Network• Launch TBS Very Funny channel in 2012 by converting local
channel brand• Purchased Chilevision (Free TV) in 2010• Based in Atlanta and Argentina with sales offices across region
• Discovery Group• Group of nine channels including Discovery, Animal Planet, TLC• Rebranded Liv to Discovery ID in 2012• Based in Miami with sales offices across the region
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Competitive Landscape - continued
Viacom Group• Group of four channels• Licenses MTV brand to third party in Brazil market and that
channel was rumored to be for sale• Launch of Comedy Central in 2012
• Disney Group• Group of five channels including Disney, ESPN and XD• Based in Argentina with sales offices across the region
• Liberty/Chellomedia• MGM channels were acquired in 2012 and expected to
consolidate with operations in Argentina• Cosmopolitan channel 50% ownership from Hearst was
acquired in 2012.
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Market Focus - Brazil
• Population: 193M
• Total HHs: 58M
• Total TV HHs: 55M
• Pay TV HHs: 15M
• Pay TV Penetration: 28%
• Globo media group dominates market‒ Broadcast TV 75% share of advertising‒ Pay TV (Globosat) 50% share of advertising
• Strong growth in PayTV penetration by doubling number of households in last three years. Expected to reach 50% in 2016
• Telmex owned Claro (Carlos Slim) completed acquisition of Net Brazil system in 2012
• PayTV Local content requirements were implemented in 2012.
Affiliate Market Share by Groups(subscribers)
38.4%
29.1%
16.5%
5.9%2.9%
7.2%NET Services
Sky
Via Embratel
Telefonica/TVA
Oi
Others
Brazil Market Overview
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• Strongest subscriber growth has been in DTH systems. Overall increase in middle class subscribers and growth in C class consumers.
• Ad market had slower growth in 2012 but picked up in fourth quarter. SPT Channels projected to grow by 9% versus 3% for other LAMAC channel members. Growth despite new TV regulations and ad allotment limitations.
Open TV; 65%Newspaper; 11%
Magazine; 6%Online; 5%Pay TV; 4%
Radio; 4%OOH; 3% Cinema; 0%Others; 1%
Ad Sales Market
Pay Entertainment Channels (including Local), MON-SUN 18:00-24:00
Source: IBOPE Media
YTD Channel Rankers
6% higher vs. same time last
year
14% higher vs. same time last
year
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• Movement of CSI Miami from AXN to SET with strong ratings
Source: IBOPE Media
YTD Channel Rankers
-11% vs. same time last year
-5% vs. same time last year
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Pay Entertainment Channels (including Local), MON-SUN 18:00-24:00
Criminal Minds and Unforgettable strong performers for AXN
BRA
Source: DTV Ratings
YTD Sky Brazil Channel RankersPay Entertainment Channels, Mon-Sun 18:00-24:00
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• Population: 112M• Total HHs: 26M• Pay TV HHs: 11M• Pay TV Penetration: 41.5%
Market Focus - Mexico
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• Televisa group is largest broadcaster and Pay TV channel operator. Also has ownership in large affiliate systems (Sky Mexico, Cablemas and Cablevision)
• Televisa applied market influence to control growth of international programmers advertising. Ad minute restriction to six minutes per hour was enforced in 2012 and negatively impact SPT channel sales. Reduction from prior market selling practice of 10-12 minutes. Lobbying efforts continue with TAP and USTR on adjusting restriction
• Presidential election in September 2012 and Enrqique Pena Nieto took office in Dec 2012. Nieto is closed linked with Televisa.
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Mexico Market Overview
• Increase in PayTV penetration to over 40% in 2011 with growth of introductory cable packages.
• Highest growth in DTH with launch of Dish in Dec 2008 and rapidly grown to over 3M subscribers
• Ad Sales growth for SPT Channels despite ad minute restriction. Increased rates and use of other day parts
Open TV; 56%
Pay TV; 7%
Radio; 9%
Magazines; 3%
News Paper; 8%
Cinema; 2%
Online; 7%
OOH; 9% Other; 1%
Ad Sales MarketUS$5B Total
Affiliate Market Share by Groups(subscribers)
Mexico Ratings Highlights
• Performance of key programs– Greys Anatomy - #1 show for PayTV
– The Client List has proven to be a success with its first season in Mexico, where it has become Sony’s current second strongest show among Women 18-49 High+Medium. In its time slot, it ranks Sony #2 among the competition and #3 among All Pay TV.
– Continued strong performance of CSI series on AXN
• Production of MNTM Season 3 for SET– Sony #3 among All Pay TV during its time slot in Mexico in Women 18-49 High+Medium
– #1 Reality Show in its time period in 11 different targets
– #2 program in GE after The Simpsons
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Mexico
(Out of 64 Channels)
YTD CHANNEL RANKERS
18% higher vs. same time last year
6% higher vs. same time last year
20% higher vs. same time last year
4% higher vs. same time last year
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Pay Entertainment Channels (including Local), MON-SUN 18:00-24:00
Source: IBOPE Media
Pan
Pay Entertainment Channels, MON-SUN 18:00-24:00
Source: IBOPE Media
Same rating vs. same time last year
8% higher vs. same time last year
5% higher vs. same time last year
Same rating vs. same time last year
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YTD CHANNEL RANKERS
YTD DirecTV Channel Rankers
PAN
Pay Entertainment Channels , MON-SUN 19:00-25:00
Source: DTV Ratings
SPT Channels perform higher in the DTV ratings with AXN consistently being number one. Due to DTV sample versus IBOPE sample group
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Market Focus – Latin Region
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• Venezuela ‒ Ongoing channel operation in Caracas with approx 80 personnel. ‒ Have been monitoring situation since Chavez won re-election in October 2012‒ In December announced cancer return and underwent additional surgery. Has
been in Cuba in an unknown medical state. January 10th inauguration took place without Chavez. Vice President Nicolas Maduro has been acting as President
‒ Bolivar currency is expected to devalue in 2013 and currency restrictions remain in place
• Argentina ‒ Opened Ad Sales office in April 2012 and have small channel team.‒ Regulation which would have forced Grupo Clarin to divest of some affiliate
system assets was delayed due to local influence. Largest cable system in market.
‒ Ongoing concerns over Argentine Peso and risk of devaluation.
• Colombia
• Opened Ad Sales office in April 2012
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Crackle Enjoying An Early Success In Latin America
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Crackle Enjoying An Early Success In Latin America
Financials – Combined EBIT
Market Revenues – Affiliate and Ad Sales
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FY13 impacted by Brazil FX due to Real devaluationFY13 first full year of Crackle operation
FY12 FY13 FY14Actuals EOY Budget
Brazil 54,802 52,969 61,313 Mexico 37,974 42,375 47,160 Other LatAm Markets 77,376 87,582 104,396 Crackle/Ad Sales 4,549 4,522 8,103
Total Revenues 174,701 187,448 220,972
LatAm Br Total LatAm Br Total LatAm Br TotalChannels 38,478 16,403 54,881 46,463 9,996 56,459 49,087 10,290 59,377 Ad Sales 3,108 3,108 965 965 1,353 1,353
Crackle (2,776) (2,776) (5,286) (5,286) (7,565) (7,565) Total EBIT 38,810 16,403 55,213 42,142 9,996 52,138 42,875 10,290 53,165
FY12 Actual FY13 EOY FY14 Budget