Country Analysis SPAIN 01182011.ppt

Country AnalysisSpain

Contacts : [email protected]; [email protected]

January 28, 2011

DRAFT

mailto:[email protected]

mailto:[email protected]

Angel Martin (TCH) would like to update his market data and get a refreshed view on his customers opportunities with a focus on NSPs & Broadcasters & Content Creators

Evaluate Opp’s DDG & Entertainment services. Update its market understanding, Identify & Quantify Sales opportunities

in the supply of the following devices & solutions

Priority 1: Digital Home & STBs Sound services VFX

Priority 2: Films & Post-production (done) Play out (Broadcast services) HES (disc logistics services)

Improve our customer & market insight and quantify our sales opportunities :

2

Context

DRAFT

Scope

•NSPs refers to Digital Satellite and Digital Cable and IPTV Pay TV services providers, •xDSL, FTTH, Cable Broadband Services Providers, • mobile services providers over GSM (GPRS, EDGE, HSPDA, 3G, CDMA, WCDMA,

DRAFT

Approach, deliverables and time line

4

* Additional inputs from Sales team will be necessary

DRAFT

Executive summary

Digital Home & STBs market overview Markets size and key players Markets dynamic and regulation Market size and competition on Technicolor products and services Main Spanish Account profile

Sound services Market Assessment Market segment, market revenues, market evolution & change Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment Spanish VFX market Key VFX studios in Spain per type of content

Digital Broadcast Market Spanish Broadcasting industry changes A complete reshaped audiovisual sector Key Spanish players along the content value chain Focus on play-out services per type of TV channels Top five accounts wallet for the provision of play-out services

Agenda

5

DRAFT

Spanish market is driven by Broadband and Free-to-Air digital television.

Due to economic crisis, most of NSPs are obliged to improve their EBITDA while containing their CAPEX and cost of customer acquisition. In 2010, the private and public Media sector has been reshaped, following the adoption of a new law on the funding of public broadcaster RTVE.

Main area of growth for digital Home & Set top Boxes are :

Ultra Speed Broadband Internet over Cable & xDSL, in view of evolution towards Fiber Network roll-out in 2011 onwards.

Triple-play and bundling services will be the most frequent response from NSPs.

Premium pay content (Canal+ bouquet, GolTV)

The evolution of the market shows that CPEs will be more versatile, offering more users features and better user experience (High Definition TV, xPlay Gateways, higher internet speed)

Executive summary

6

DRAFT

Executive summary





Agenda

7

DRAFT

8

Spanish Market Digital Home & STB: Key Findings

04/18/23

DRAFT

Executive summary





Agenda

9

DRAFT

Penetration rates by services : Mobile, FTA TV and BB well adopted

10

PayTV penetration in Europe (2010) >> 28,6% BB penetration in Western Europe (2010) > 65%

Key Take-away SPAIN: 24% penetration of PAY TV remains low vs. other western European countries (average 28%). High penetration of Terrestrial FTA and cost of Pay TV bouquets are the two main inhibitors. New Fiber network roll-out, combined with services bundling should change the penetration rates over the next 5 years. 61% penetration of Broadband services . Fiber deployment should enable a wider subs. Base whereas Cable NSPs have already released their Docsis 3.0 offers.

Mobile services are mainly post-paid (64%) in Spain (VS. 74% in France) . It will contributes to a faster adoption of wireless broadband services.

DRAFT

Spain market is driven by ADSL & Digital Terrestrial FTA

11

Digital Subscribers Base Evolution in 000 (end of Q3 2010)

SPAIN (source: DATAXIS 2010)

Digital Subscribers Base Evolution in 000 (end of Q3 2010)

SPAIN (source: DATAXIS 2010)

DRAFT

Telefonica & ONO are the players with the largest subscriber base in Spain

12

NSPs revenue of € 9,5 billions in Spain

Telefonica: Leading xDSL BB NSPs but being attacked by cable MSO’s.

SOGECABLE: Leading PayTv NSP with revenue increased , keeping its content leadership (Canal+) which is sold through others NSPs Platforms.

ONO & JAZZTEL : The two outsiders in the market. One fast growing player on xDSL and Fiber (Jazztel) ; the second capitalizing on its cable offers and service bundling, but facing refinancing issues (ONO-AUNA)

ABERTIS : The New entrant in Digital PayTV using digital terrestrial network widely available and attractive pay-TV content.

Households Spain=

DRAFT

Market size : SPAIN is a growing BB market with a high adoption of digital Terrestrial FTA

13

SpainEvolution of PAY TV & Broadband Subscribers Base (in 000)(end of Q3 2010 vs. end of Q3 2010 vs. Y11 estimate (sources: DATAXIS 2010, Technicolor)

SpainEvolution of PAY TV & Broadband Subscribers Base (in 000)(end of Q3 2010 vs. end of Q3 2010 vs. Y11 estimate (sources: DATAXIS 2010, Technicolor)

+ 713 000 Broadband subscribers (+ 8%) Y09oY10+ 243 000 Pay TV subscribers (+ 6%) Y09oY10 + 7 millions FTA DVB-T users (+59%) Y09oY10

+ 713 000 Broadband subscribers (+ 8%) Y09oY10+ 243 000 Pay TV subscribers (+ 6%) Y09oY10 + 7 millions FTA DVB-T users (+59%) Y09oY10

DRAFT

Executive summary





Agenda

14

DRAFT

Market dynamics, growing & shrinking accounts

15

Major growth area in 2010

4%

Major growth area in 2011

DRAFT

Market dynamics, growing & shrinking accounts

16

NSP Players

Subs Growth 09/10

Trends 2011 Enablers Inhibitors Drivers

TELEFONICA+6% Telefonica will continue its growth

especially in BB. IPTV seems to be more challenging to sell-in.

Incumbent Operators (Fixe & mobile) . Drives the NGA . Stakeholder in the Content industry.

•Financial crisis still puts pressure on CAPEX and therefore on investment in new networks.

Next Generation Acces, Fiber roll-out, Mobile broadband subs.

ONO+5% ONO is continuing its growth (+4%

in 2011) for all its services. Launch of Zapper HD (100Ku @ 70-75€/unit)Launch of HD in 2011 with most likely a STB from Cisco (Nagra/Tivo). Similar to Virgin media STB

Quality of its HFC network. 1,4 m BB subs.

•Higher price pressure from xDSL NSPs (Telefonica, Orange, Jazztel)•Financial difficulties put pressure on CAPEX and SAC.

Docsis 3.0Quality and high bandwidth offeredIntroduction of HD PVR with DVBT tuners and HD Zapper in 2011

SOGECABLE-7% SOGECABLE should be able to

recapture subs. But not more than +2% in terms of growth rate in 2011.

Attractiveness of content offered and HD quality.

Distribution of Canal+ bouquet through competitors platforms. Digital Terrestrial TV

HD channels.

JAZZTEL+52% JAZZTEL continues its growth

(+15% estimated in 2011) focusing on ORLA (mid-sized municipalities). Deployment of its voice over IP services.OTT offers with dedicated app’s instead of IPTV

Ownership of Fiber network in several high density area.Attractive pricing policy. Bandwith offered.

• Limited capability of bundling BB services with mobile broadband. • CAPEX and churn rate still high limiting FCF.

•ORLA (small ILEC installation in mid-sized municipalities.•Subs. Base approaching the critical mass (1m subs.)

DRAFT

The creation of NGA will question NSPs Business models & services offers

1) NSPs which are not owning theirs network and/or relying on a pure Unbundling business model may face lower ARPU

2) NSP’s may push their customers towards mobile where margins are higher and services differentiation possible;

3) The key question is the trade-off that will be made by Telefonica in 2011 strategic investment :

option 1 : only investing in upgrade for its mobile network

option 2 : only investing in NGA

1) It could encourage some BB NSPs ((Telefonica, Orange) to give up IPTV and move to OTT services

2) Cable MSOs will react by promoting VOD services, UGC, Web-To-Tv apps, and NAS

The creation of NGA will question NSPs Business models & services offers

1) NSPs which are not owning theirs network and/or relying on a pure Unbundling business model may face lower ARPU

2) NSP’s may push their customers towards mobile where margins are higher and services differentiation possible;

3) The key question is the trade-off that will be made by Telefonica in 2011 strategic investment :

option 1 : only investing in upgrade for its mobile network

option 2 : only investing in NGA

1) It could encourage some BB NSPs ((Telefonica, Orange) to give up IPTV and move to OTT services

2) Cable MSOs will react by promoting VOD services, UGC, Web-To-Tv apps, and NAS

Impacts from regulatory changes ?

17

Possible impact on Broadband

NSPs ?

Possible impact on Broadband

NSPs ?

Possible impact on PayTV

NSPs ?

Possible impact on PayTV

NSPs ?

DRAFT

SPAIN: 2010-11 Total Wallet per Service Type

18

SpainEvolution of annual Wallet spends per Service Type (in 000 €)(source: Technicolor estimates & syndicated data)

SpainEvolution of annual Wallet spends per Service Type (in 000 €)(source: Technicolor estimates & syndicated data)

The relaunch of digital Free-to-Air DVB-T in Spain is

continuing to capture viewers.DVB-T STBs are

widely available in retail outlets and

new channels have been added.

Slight increase of Wallet 2011 for Broadband mostly driven by more bandwidth offered by Cable NSPs (Docsis 3.0) and Telefonica / Jazztel First FTTX deployment

DRAFT

SPAIN : 2010-2011 Total Wallet per NSPs

19

= 80%(€ 176 m ; 3,3 millions access devices purchased)

DRAFT

Key findings for 2011: A slightly decreasing wallet in € which is not offset by volume

purchased. Financial crisis is clearly impacting NSPs, despite market potential for Ultra

Broadband and n-Play Solutions. Sogecable more focused on replacement / refurbishing policy while decreasing its CAPEX. JazzTel, after tremendous subs. growth in 2009-2010, is growing at a more reasonable rate. ONO is almost flat, capitalizing on BB cable subs. Base. TDT Abertis, is in line with CE Retail market. Orange , after subs. Losses in 2010, should re-deploy its 3-Play offerings.

Key findings for 2011: A slightly decreasing wallet in € which is not offset by volume

purchased. Financial crisis is clearly impacting NSPs, despite market potential for Ultra

Broadband and n-Play Solutions. Sogecable more focused on replacement / refurbishing policy while decreasing its CAPEX. JazzTel, after tremendous subs. growth in 2009-2010, is growing at a more reasonable rate. ONO is almost flat, capitalizing on BB cable subs. Base. TDT Abertis, is in line with CE Retail market. Orange , after subs. Losses in 2010, should re-deploy its 3-Play offerings.

SPAIN 2011 : NSPs facing the financial crisis

20 04/18/23

DRAFT

SPAIN: 2010-2011 Wallet per NSPs & per Services

21

6 accounts with a wallet > € 10 m each6 accounts with a wallet > € 10 m each

= 80% (meaning a total of € 176 m spending in 2011)

DRAFT

SPAIN: 2010 Wallet per NSPs & per Services

22

4 accounts with a wallet < A$ 10 m each4 accounts with a wallet < A$ 10 m each

= 20% (meaning a total of€ 15 m spending in 2011)

DRAFT

Executive summary





Agenda

23

DRAFT

Telefonica Spain : the incumbent NSPs

Foxtel:

24

Company Descriptio

n

•Group Telefonica, S.A. (Telefonica) is one of the world's largest telecommunications companies.• The company provides fixed and mobile telephony services, data and business-solutions and services, wholesale services to telecommunication operators, mobile business, value added services, wireless data and Internet,•The company also engages in media and contact center activities through investments in Telefonica de Contenidos and Atento,

Headquarters : Madrid, Spain

Key data

• 259,000 employees in the Group• Group Revenues 2009 € 57 billions

(decrease of 2.27% from 2008)• Organized by segment : Telefonica Spain,

Telefonica Europe, Telefonica Latam.• Revenue for Telefonica Spain 2009 = €19

billion down 5.7% over 2008.• 34,000 employees in Telefonica Spain.• BB Subs (Spain) 2010 = 6,5 m (gain

subs.2009/2010 400K)

Access Products

by subsidiarie

s

• Modems & Gws• IP STB• VoIP telephony• Mobile terminal

Services Offers

• fixed and mobile telephony services• data and business-solutions and services, • wholesale services to telecommunication

operators,• mobile business, value added services, • wireless data and Internet (Movistar)• Media (including Sogecable/Digital +)

Strategy for

sustaining ARPU &

Net Subs Growth

• The company agreed with Prisa, and Sogecable to purchase a 21% stake in Distribuidora de Television Digital, S.A., which includes the pay TV services (DIGITAL +) of the Prisa Group.

• LTE (4G mobile) trials start end of 2009. • Large investment in Unified

Communications equipment in order to tackle the FMC market.

• Acquisition of “Tuenti” (social networking) in Q3 2010

Sources : Dataxis, MPA, Merrill Lynch, UBS, IMS Research, Advanced TV, Infonetics

Services Penetration

Key Access Devices

Suppliers

• Huawei, ZTE (modems, GWs)• Dell (wireless access with smartphones &

Laptops)• Ericsson / Alcatel -LU (4G infra) • Samsung Tab (Galaxy)

Strategic Moves

• High Speed internet offers (xDSL & FTTX)• Triple play with Digital + TV bouquet

Key Business

Issues

• Financing FTTX and VDSL2 roll-out• Installation of local LECs in small cities

may intensify competition.• Encourage the take-up og IPTV services• Retain BB subs.

• 3-play penetration ( %age out of total Subs. Base)

• VOD adoption / usage• Canal+ bouquet well distributed over all

key competitors (Orange, Jazztel, ONO)

DRAFT

SOGECABLE (PRISA) : the leading pay TV

Foxtel:

25

Company Descriptio

n

• Grupo PRISA is one is one of the major independent Spanish-language mediagroups. It is the leader in Spain and is, in turn, formed by companies that are leaders in their respective business sectors.

• Presence in Broadcasting, Publishing, Media, Internet, Entertainment

• SOGECABLE : The company's key business activities include Digital television, Cinema production (Sogecine) and distribution (Sogepaq), purchase and management rights, and publicity and other businesses.

• Headquarters in Madrid, SPAIN• Quoted in Madrid Stock Exchange

(NIF: A28297059 )

Key data

• Prisa Group = 15,000 employees • Revenues 2010 € 3200 m• EBITDA 2010 = € 674 m• Sogecable Subs. Pay TV = 1,7 m (loss of

subs.2009/2010 100K)

Access Products

by subsidiarie

s

• From SOGECABLE / DIGITAL + :• SD & HD Digital Set Top Boxes• Digital HD PVR

Services Offers

• PRISA • Radio, Press, Publishing• Broadcasting, Internet,

Entertainment • Pay TV Satellite• SOGECABLE : Satellite PayTV,

Terrestrial TV (Cuatro), Cinema Production, Film distribution , audiovisaul right management.

Key enabling Techno

suppliers

• Conditionnal Access : NDS• MiddleWare Pay TV : NDS• Migration to MediaHighway CDI in 2011-12

Strategy for

sustaining ARPU &

Net Subs Growth

• Broadcast 3D Content in 2010 (Sport)• PrisaCom which groups all digital

activities• Acquisition of Santillana publishing house

for accelerating the internationalization of the group.

• Sell of Cuatro to Telecinco and 22% of Digital+ to Telefonica and Telecinco. It result a stake in Telecinco of 18%

Sources : Dataxis, Current Analysis, Reuters,


Key Access Devices

Suppliers

• Technicolor, Pace• Possibly Cisco in 2011

Strategic Moves

• HD Content and packages• PVR (Subs. Retention)• Multi-room (subs. Retention)

Key Business

Issues

• Reducing debt • Higher satellite capacity for higher HD

penetration• Differentiation from Content offered vs.

IPTV NSP’s rivals • Promoto 3D Content and increase HD

channel line-up

• HD penetration ( %age out of total Subs. Base)

• VOD adoption / usage• Canal+ bouquet well distributed over all

key competitors (Orange, Jazztel, ONO)

DRAFT

26

Company Descriptio

n

• Jazztel is an holding company, listed (85% floating), providing telecom services.

• It includes Jazz Telecom SA, Banda SA, Banda26 SA, JazzPlat SA.

• Jazztel has deployed a Fiber optic telecom network in high density business districts employing SDH & DSL based on the unbundling Telefonica ILEC.

• Headquarters : Spain, Madrid

Key data

• Revenues 2010 (E) €606m (+ 24% vs 2009)• 2400 employees• Market Cap = 868 m €• EBITDA margin 2009 = 8%• Fast growing Company: +120% in 5 years• Churn rate high (> 15%) & Flat ARPU

(41,8€ /Subs.)• Subs. BB 2010 (E) = 804 000 (+34% yoy)• Positive Net Income in 2010 (+4m€) after

3 consecutive negative income. • EBITDA > CAPEX in 2010

Access Products

• DSL modem, routers, GWs• VoIP terminals, • Tablets could be an area of interest in a

pure OTT approach ?

Services Offers

• Retail Broadband Internet (54% of total Revenue)

• High bandwidth internet access (up to 1MBps)

• Voice over IP, data,• Resell of Canal+ bouquet through 3-play

services

Sources : Dataxis, HSBC, SANTANDER, WRIGHT Investors, Ahorro Corporacion, Jazztel


• Most of Jazztel BB subs have a high bandwidth internet access thanks to Jazztel own fiber network.

• More than 50% of subs. Base are dual / triple play users.

Key Access Devices

Suppliers

• Huawei (router wifi 3G)• Comtrend

Strategic Moves

• Quality of services, • Speed of internet access• No installation fees• OTT instead of IPTV, • Applications : Online Video Content,

photo sharing and access to social networks through the TV/PC

Key Business

Issues

• Keep gross margin level in limiting SG&A and Increase of SAC in 2011.

• Negative working Capital prevents growth• Increase its presence in small cities (less

than 50 000 people) through the new Telefonica leased circuits wholesale offer (ORLA)

Strategy for

sustaining ARPU &

Net Subs Growth

JAZZTEL : the fast growing BB NSPs

• Has stopped its IPTV service (Jazztelia) in Q2 2010 and focus now on OTT solutions.

• Jazztel is (since 2010) a target for Vodafone M&A or Orange Spain >> BB market consolidation

• Jazztel has signed a MVNO agreement with Orange for the provision of mobile services.

• New development of Ethernet Virtual Private Lan Service.

DRAFT

27

Company Descriptio

n

• ABERTIS Telecom is a subsidiary of ABERTIS group . A group listed in Madrid, with a total Y09 revenue of 3,9 billions €.

• ABERTIS Telecom is a 100% subsidiary specialized in Mobile Network (Tretra based) TV & Radio Broadcast facilities.

• In 2007 Abertis bought 32% of Eutelsat and

• Main shareholders are CVC, Caixa Bank .

• Floating at 39% .• Headquarters : Spain, Barcelone

Key data

• Group Revenues 2010 (E) = € 4,1 b (+4% vs 2009)

• Abertis Telecom : 539 m€ in 2010• employees• EBITDA margin 2009 = 61%• 290 000 subs in Digital terrestrial TV (TDT

Premium)• Leading DVB-T signal carrier in Spain

(2500 centres)

Access Products

• Digital DVB-T STBs based on CAM (CA module).

• Labelized “TDT Premium “ and sold in Retail and on the web.

Services Offers

• Broacasting facilities• Digital Pay TV over DVB-T• Ethernet Carrier• Mobile network Carrier (B2B based on

Tetra technology)

Sources : Dataxis, HSBC, SANTANDER, WRIGHT Investors, Ahorro Corporacion, Jazztel


• The relaunch of a Pay TV on Terrestrial network is pretty new but adoption is fast.

• Some channels remains popular in Spain : GolTV for example.

Key Access Devices

Suppliers• Strong, Engel, Humax, Sagem, Pace, ...

Strategic Moves

• Focus on retail and web for the provision of digital STBs equipped with a conditional access modules.

Key Business

Issues

• Ability to enrich the content offer (nber of channels)

• Adress the regional digital terrestrial market with specific channels

Strategy for

sustaining ARPU &

Net Subs Growth

ABERTIS : the fast growing BB NSPs

• Stake in Eutelsat , and Hispasat opening up access to satellite broadcast capacities in hispanic countries.

DRAFT

ONO : the leading Cable Service Provider

28

Company Descriptio

n

• ONO is the leading cable MSO in Spain thanks to its take-over AUNA in 2005 for € 2,2 billion.

• ONO is financially backed by a large consortium of European investment Banks

• Headquarters :

Key data

• Revenues 2010 (E) = €1,45 m (79% made in Residential)

• EBITDA /Sales = 51% • CAPEX 2010 = € 225 m• Churn rate = 15%• ARPU 2010= 50,8 € (+1% vs 2009)• Digital Subs. Pay TV = 790 000 (+4% vs

2009)• BB subs. = 1,44 millions subs. (+4% vs

2009)• Second largest PayTV services provider

and BB provider in Spain.• 4,7 million of HRTM upgraded with Docsis

3.0(representing in CAPEx of €61m)

Access Products

• SD & HD Digital Set Top Boxes• Digital HD PVR• Cable Modem, routers and GWs• VoIP telephony • TOTAL CAPEX 2010 for all CPE = €36m

Services Offers

• Pay Tv cable• Cable Broadband Internet• VoIP• Wholesale

Key enabling Techno

suppliers

• Strong partnership with TiVO for enriching the TV experience

• Conditionnal Access : Nagra• MiddleWare Pay TV : TiVO

Strategy for

sustaining ARPU &

Net Subs Growth

• Completion of the issue of €700m Secured Bonds


Key Access Devices

Suppliers

• STBs : Samsung, Cisco (Ex Scientific Atlanta)

• GWs (Docsis 3.0) : Cisco, Netgear• Modem, Router Docsis 2.0 : Cisco-SA,

Dlink,Technicolor, Arris, Netgear • VoIP : Huawei

Strategic Moves

• Ultra High Broadband Internet (Docsis 3.0)

• HD Content and packages• Focus on lower churn bundles including

telephony• Promote the GOL TV in several

subscription packages• Stimulate the pay VOD • Keep high the installation fees for

limiting the churn

Key Business

Issues

• High bank debt• Reduce SAC and CAPEX for generating

Free Cash Flows• Reduce churn rate • Reduce the variable part of ARPU

• HD is going to be launched in 2011• Ultra High Broadband Internet (30MBps) :

40,000 subs. = 3% penetration• 2 and 3 play penetration rate : 82% (+7%

vs 2009)

Sources : Dataxis, HSBC, SANTANDER, WRIGHT Investors, Ahorro Corporacion, ONO Investors Relations

DRAFT

Matrix “Business concerns & Commercial Strategies per NSPs”

29

Business Concerns

NSPs Commercial Responses Business Impacts

Maximize content value

SOGECABLE

ONO

•Distribute premium content on VOD and catch-up TV; •Roll out HD content•Integrate a DVB-T tuner in the ONO STBs

• Lower Churn• Maintain ARPU

Adapt to BB consumer behaviors

TelefonicaJazztelONO

•Offer high speed rate (up and downstream); • increase market reach with new infrastructure•Content anywhere, anytime•Facilitate User Generated Content

• Subs Acquisition• Increase ARPU• Better EBIT/CAPEX ratio

Diversify on multi-platform (tablet, smartphone, TV, PC, NAS)

TelefonicaJazztel

•IPTV (Telefonica)Mobile BB (Telefonica)•OTT (Jazztel)

• Lower churn • Bundled services / products• Lower SAC

Promote added value services (video and data)

Telefonica •Simplify media consumption (one box, unified U.I, intelligent RCU,NAS)•Social network app’s

• Develop premium subscription,• Generate potential new revenue streams

DRAFT

Executive summary




Digital Broadcast Market Spanish Broadcasting industry changes A complete reshaped audiovisual sector Key spanish players along the content value chain Focus on play-out services per type of TV channels Top five accounts wallet for the provision of play-out services

Agenda

30

DRAFT

Sound Services : Market segments /Geography

31 04/18/23

Cinema- National Production (Soundtrack addition)-Multinational Producción (Dubbing).

TV/HV- Series and TV movies (Dubbing and/or Soundtrack addition)-Documentaries (Voice and/or Soundtrack addition)

Videogames (Dubbing)

Advertising (Soundtrack addition)

Others: Dubbing to regional languages different to Castilian.

90% of the business for sound services is localized in Madrid & Barcelona: - Madrid is more driven by TV/HV market segment- Barcelona is more oriented towards sound services to Cinema

DRAFT

85m€ Market revenues in 2009 : 50% for TV, 25% for Cinema, 20% for dubbing in regional languages.

32 04/18/23

2008-2009 : The increase of DVB channels and the needs for more podcasthave increased the business volume for the Sound Services.2011 should not be higher in total revenue than 2009.

DRAFT

Market Evolution : towards consolidation & in-house solution for TV

33 04/18/23

There is a general tendency in TV producing companies to take care directly of the dubbing management of their series. A way of increasing technical, artistic and legal control over their products.

Commercial market goes through Agencies and used to give all post image and sound to the same post house.

The main cinema and TV producing companies have the policy of working with two reference studios. (Excepted Buena Vista which works with a unique contractor for dubbing Disney Character Voices Int’l, DCVI.

DRAFT

Sound Services : SoundDub, Tecnison, Sonoblok leading providers

34 04/18/23

DRAFT

Sales mix by key competitors in the provision of sound services

35 04/18/23

Name Cinema TV / Home Video

Others Key facts

SOUNDUB 6% 90% 4% For every Disney Product, exclusive contract. Almost sole supplier to Universal Spain

TECNISON 25% 72% 3% New facilities opened summer 2008

103 TODDAO

50% 50% - Key customers : spanish cinema and independent distributor

BEST Digital

85% 12% 3% Growing in cinema. Dolby Premium installed.

MediaSound

- 80% 20% Mostly TV series without long-term contract

DRAFT

TV/HV spanish content producers : €32m spent /year

Local TV (regional languages) producers : €7m spent /yearHighly fragmented customers basehttp://www.catalanfilmsdb.cat/es/empresas/productora/mercuri-societat-general-de-produccio/1098/

Catalan Films & TV Nicolau Mestre 23 int 108021 Barcelone (Espagne)Tel +34 935 524 940Fax +34 935 524 953

Target the TV /HV market segment ?

36 04/18/23

DRAFT

http://www.catalanfilmsdb.cat/es/empresas/productora/mercuri-societat-general-de-produccio/1098/

http://www.catalanfilms.cat/

Executive summary





Agenda

37

DRAFT

VFX Market in Spain : a limited number of players

38 04/18/23

Visual effects spanish market has been initially driven by animation films (CGI based).

Studios with growing expertise in 3D and visual effects (VFX) have focused on TV commercials.

Madrid has become in couple of years the city for VFX Commercials. 7 studios are leading. Most of studio are independent ones, except ZeligStudio (Group Molinare) and Infinia (Groupe MediaPart /Imagina holding). Since VFX exists, 400 VFX commercials have been made in Madrid Studio according to Visual Effect society.

Studios in Barcelona are more focused on VFX Films (drama, animations). 4 studios are leading, 2 of them are clearly part of Filmax Entertainment (Bren entertainment & SixBirds).

The Silence is a motion design and VFX studio based in Madrid, focus on advertisingfor tv and film, creative 3D and others audiovisual interactivity. The studio works for clients around the globe covering the whole process ofprojects, offering from conceptual script and motion design to visual effects andpostproduction.

Key VFX Studio in Spain : specialized on Commercials

39

04/18/23

Leframe Audiovisual Design is a film & design led Production Company. We specialize in post production, motion graphics, editing, vfx and graphic design for TV and Film. We also work with - Web design, illustration and print based design *Production for Publicity.i’nfinia. Part of Molinare Group. Post Production, Digital FX & compositing – Based in Madrid & Barcelona. Barcelona’s office is specialized in visual effects for TV commercials as well as a complete equipment for sound postproduction and a department devoted to DVDs copyright.

FilmBakers. Visual Effects supervision, Design, Pre-production, script breakdown, Digital Compositing, Visual effects and animation for feature films and broadcast. t: +34 914 458 479.

Sourc

e :

mandy.c

om

Comodo. Motion Graphic & Broadcast design. Based in Barcelona. Digital Effects. TV commercials. Key customers : ONO and Canal+ .

ZeligStudio . Part of MediaPro company. Design studio specialized in broadcast design projects and motion graphics, fully structured to provide design, art direction, animation, direction, production and post production services.

Quanvision is an award winning company founded in 2001 in Marbella Spain, focusing on the creation of digital content for a broad range of industries and the development and design of audiovisual concepts for today’s media platforms and distribution channels.

40 04/18/23

VFX Company database: www.imdb.com & www.visualeffectssociety.com

Key VFX / CGI Studio in Spain : specialized on films & Animations

SIXBIRDS - JOSE POZO (President). Accomplished Executive Producer and Director in animation feature films, documentary, and advertising. One of his most notorious projects is the feature film “El Cid, the Legend” (Filmax Animation, 2003). It is sold in 28 countries and obtains several international awards, including Goya for Best Animation Feature Film in 2003. Furthermore, he acts as Creative Producer on feature animation films such as “Gisaku” (2004 Filmax A- SEEI) and “Nocturna, a Magical Adventure” (2006 Filmax A.– Animakids).

lion Animation Studios was founded in 2002 to create state-of-the-art computer animated movies for worldwide theatrical release using its own purpose-built cutting-edge technology to achieve a unique visual animation experience. 250 highly talented and experienced artists, program developers, high-tech engineers and other professionals from over 20 nations work together at Ilion on Planet 51, the studios’ first CGI animation feature which is currently in production.

Bren is part of Filmax Entertainment, an independent company with 100% Spanish capital and an international focus, dedicated to the creation, production, postproduction, distribution and exhibition of audiovisual content for the entertainment industry.Bren Entertainment was founded in 2000 as a CGI animation studio. Our specialty is the production of animation films, which so far have garnered 5 awards Goya and a more remarkable success in the international market. El Ranchito is an award winning visual effects and digital post-production company working primarily for the movie and advertising industries. We have participated in the post-production of over 40 feature films and several VFX commercials. Our work has been honored with national and international awards, among them 5 Spanish Flim Academy Awards and 11 nominations.

http://www.imdb.com/

Executive summary





Agenda

41

DRAFT

Spanish Broadcasting industry: major changes in 2010

42

• Since January 2010, advertising has been removed from all RTVE channels.

• Funding now based on new tax mechanism on Private Broadcasters revenues.

• Several Mergers, acquisitions have characterized the Year 2010

• Since January 2010, advertising has been removed from all RTVE channels.

• Funding now based on new tax mechanism on Private Broadcasters revenues.

• Several Mergers, acquisitions have characterized the Year 2010

The new law on the funding of

public broadcaster

(RTVE) in 2009 has speed up the

complete reshape of

spanish audiovisual

sector.

TV audience ranking Before M&A operations _______________________________

#1 TVE La Primera : 16,4%

#2 Telecinco : 15,1%

#3 Antenna 3 : 14,7%

#4 Cuatro : 8,2%

#5 La Sexta : 5,5%

#6 TVE 2 : 3,8%

(source Kantar Media)

New TV audience rankingAfter M&A operations _______________________________

#1 Telecinco + Cuatro + Digital+ : 25,3%

#2 TVE La Primera : 16,4%

#3 Antenna 3 : 10,9%

#5 La Sexta + GolTV : 11%

#6 TVE 2 : 3,8%

Possible merger in 2011 according toseveral financials sources and Press.

DRAFT

The reshaped Spanish Audiovisual sector : 4 new configurations

43 04/18/23

Channel Cuatro

Channel Telecinc

o April 2010 : Telecinco took over Cuatro from Sogecable

Dec 2009 : Telecinco took 22% of Digital + from Sogecable

22%56%

22%

78%

April 2010: ONO sold Teuve (a 10 channels Bouquet) to Chelomedia (Chellomulticanal in Spain) its company Factorias de canales, one of the first channels producer in Spain.

DRAFT

2010 New changes in shareholding

41%18%

5%

The reshaped Spanish Audiovisual sector : 4 major new configurations

44 04/18/23

20%

20%

20%51%

40%38%

40%

40%40%

Prodigius: A 2010 joint project with MediaPro for TV films production in Spain

Home Entertainment DeAPlaneta . 2010 Partnership with the Nber one in Home Video Renting & Selling (SAV)

2011 > Possible Merger between La Sexta

& Antena 3

DRAFT

Key Spanish players per type of Media services

4504/18/23

Group TV ChannelsBroadcast

ContentProduction

Content Post-Prod

Content Play out & Media services

Content distribution

DRAFT

The Play-out services is driven by niche channels & local channels.

46 04/18/23

Source : Mavisse.com 2011 & Technicolor estimates

Play out services : the Top Five are PRISA (Sogecable), RTVE, LIBERTY, MEDIASET, TELEVISIO DE CATALUNYA

47 04/18/23

Source : Mavisse.com & Technicolor SA

Theses accountsrepresent 55% of total Play-out spends in Spain : 22m€ out of 40m€

APPENDIX

48

Assumptions taken for Play-Out Wallet calculation

49 04/18/23

• Forecast based on: • Number of TV channels broadcasted over any network• Multiplied by an average annual transmission fee per channel (TDCD

estimates): €240k for generalist, €200k for live news and sports, €120k for niche channels and €260k for global brands • It is assumed that all channels move to managed services for play out

• Channel playout (basic service)

Model

Main services

provided by Technicolor

Country Analysis SPAIN 01182011.ppt

Documents

Transcript of Country Analysis SPAIN 01182011.ppt