| 1 |
Sanford C. BernsteinFourth Annual
Strategic Decisions Conference 2007
London, 26th September 2007
Half Results
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Entertaiment Industry | What has changed
Technological Innovation is changing consolidated entertainments models
Increase in the personalisation of the different forms of entertainments
Increase in demand of “premium” content
Audience is increasingly spreading across a multitude of different channels, internet site and free press and distribution platform such as mobile phones and even video games.
“Long Tail Effect” of the modern entertainment
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Traditional Broadcaster | Macro Strategic Options
1. Pure “Content provider” and “Content packager”focus on the productlow level of vertical integrationplatform agnostic
2. “All-round” Media CompanyShift from product to client/viewer vertical integrated“Access” management
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Mediaset | Inclination towards Media Company
Entrepreneurial approach
First to understand importance of developing its business model on an international scale
Control of the broadcasting infrastructure
First among FTA Broadcaster to get into the Pay-TV market
Recent acquisition on the Content side (Endemol, Medusa)
Natural inclination towards Media Company
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Entertaiment Industry | The “Long Tail” Effect
Audience
Fragmentation
GeneralisticContent
ThemeContent Niche Content
Mass Market Audience
Fragmented Audience
“Long Tail“Audience
Concentration
Impacts on the audience market
++
--
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Entertaiment Industry | The Audience Market
Audience
Fragmentation
GeneralisticContent
ThemeContent
Mass Market Audience
Fragmented Audience
“Long Tail”Audience
Concentration
Mainly Advertising (Analog/digital)
Mainly Pay-TV(digital)
Two main business models have proven to co-exist
Niche Content
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Entertaiment Industry | Mediaset’s strategic approach
Audience
GeneralisticContent
ThemeContent
FTA TV: C5, I1, R4 (Mediaset Core Business)
Multichannel: Boing, others to come
Pay TV: Football, Movies, Series, others
Niche: Home Shopping, Internet, Mobile, PCTV, VOD, User Generated Content
Niche Content
Fragmentation
Mass Market Audience
Fragmented Audience
“Long Tail”Audience
Concentration
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FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS
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Mediaset’s Approach | Free to Air Television
Source: Auditel excl. SanRemo
40.7%
43.9%
43.0%
40.1%
1H 2006
INDIVIDUALS
COMMERCIAL TARGET(15-64 Years)
41.1%
41.6%
43.6%
37.4%
1H 2007
24 hours Audience Share:Figures include analog, satellite (incl. SKY Italia homes) and DTT platforms
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Mediaset’s Approach | Free to Air Television
Prime Time Audience Share (20:30 - 22:30)Figures include analog, satellite (incl. SKY Italia homes) and DTTplatforms
INDIVIDUALS
COMMERCIAL TARGET(15-64 Years)
40.9%
45.4%
43.0%
42.6%
1H 2006
41.2%
43.7%
43.4%
40.9%
1H 2007
Source: Auditel excl. SanRemo
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Mediaset’s Approach | Free to Air Television
Sky Italia – Audience Share:April – June, 24 hours Individuals
Sky Channels
Fox Channels
RAI SAT
Discovery Channels
SitCom Channels
Other FTA Satellite
TOTAL SATELLITE
Audience Share (%)
Source: Auditel
2,6
0,7
0,2
0,2
0,1
5,6
9,4
1 channel audience > 0,5
16 channels audience 0,1 –0,5
58 channels audience < 0,1
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FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS
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Mediaset’s Approach | Multichannel
Boing Audience: First Kids Channel
8.6%
9.9%
Individuals (Dtt) - 24 Hours Kids 4 –14 (Dtt) – 24 Hours
September ‘06 September’07
1.1%
1.9%
September ‘06 September’07
Source: Auditel
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Mediaset’s Approach | Multichannel
Boing Audience: First Kids Channel
Individuals - 24 Hours Kids (4 – 14) – 24 Hours
Boing 0.35 Boing 2.53Disney Channel 0.33 Disney Channel 2.36
Playhouse Disney 0.24 Playhouse Disney 1.42Disney Channel +1 0.16 Disney Channel +1 1.20
RaiSat Yoyo 0.06 RaiSat Smash 0.42RaiSat Smash 0.05 RaiSat Yoyo 0.30
Source: Auditel, September’07
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Mediaset’s Approach | Multichannel
Further implementation of the “family of channels” strategy on DTT, in order to:
Take advantage from the ongoing audience fragmentationSatisfy the viewers’ multichannel demandBuild a multichannel offer at no incremental cost: new channels will mainly feature re-runs Further exploitation of existing library and production
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FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS
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Mediaset’s Approach | Pay TV
Mediaset Premium Pay-TV present offer:
FOOTBALL
MOVIES
SERIES
REALITY SHOWS
OTHER EVENTS
live broadcast of Serie A and UEFA Champions League matches
the most recent international blockbusters
the latest episodes of America’s most famous Series
24 hours coverage of the currently playing shows
theater plays, concerts
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Mediaset’s Approach | Pay TV
Mediaset Premium smart cards and recharges sale performance*:
End of Phase 1
2.9182.9982.7942.5742.369
2.0921.9511.9221.7981.438
2.135
1.5611.994
9.413
7.933
9.1888.202
6.9116.266
5.380
4.3382.820
1.2822.048
2.6282.730
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
Aug. Dec '05 Feb '06 Apr Jun '06 Aug Oct. Dec '06 Feb '07 Mar Jun '07 July '07 Aug 16/09/2007
SmartCard Sold to retailers Recharges Sold to retailers
000’s
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FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS
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Mediaset’s Approach | Niche Audience
Home Shopping
Internet based platform
Digital Merchandising (VAS)
Mobile
Participation TV
Merchandising
Music
coming soon
DVB-H / UMTS
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Mediaset’s Approach | Home Shopping
Internet
Retail
Catalogueand Print
Direct Marketing
Production and post Production FacilitiesRetailing and MarketingCustomer Service Delivery and Logistics
C5, I1, R4 Windows
Over 20 ml tv contacts each dayOver 1.3 ml clients 60% Revenues from Windows and 24h ChannelFrom Jan. to Sept. 2007:
- 30.000 average orders per month- 100 euro, average revenue per order
24h Channelon Dtt & Satellite
Mediaset’s home shopping business:
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Mediaset’s Approach | Internet platform
Through internet platform Mediaset offers:
MULTIPLATFORM NEWS SERVICE
COMMUNITIESand
USER GENERATED CONTENTVIDEO ON DEMAND
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Mediaset’s Approach | Internet platform
TGCOM provides real time news through its website and its mobile update service
MULTIPLATFORM NEWS SERVICE
Unique Users: 4.400.000 per monthPage Impressions: 147.000.000 per month
Source: Nielsen NetRatings
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Mediaset’s Approach | Internet platform
120 SECONDS120 SECONDS
Wanna-be reporters can share and publish their work on this section of the TGComwebsite
6 COME 66 COME 6
Viewers can shoot their ownItalia 1 channel promotionalvideo. The best works will bebroadcast on FTA
LE IENELE IENE
On the website of one of Mediaset most popular tv shows people can share funny videos and candidcameras
TALENT 1TALENT 1
Singers, dancers and youngfilm directors can promotethemselves by sharing theirperfomance samples on the web
Unique Users: up to 3.600.000 per monthPage Impressions: up to 100.000.000 per month
COMMUNITIES and SELF GENERATED CONTENT
Source: Nielsen NetRatings
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Mediaset’s Approach | Internet
VIDEO ON DEMAND
The best content from all Mediaset platforms is also available on demand through its PC – Television service
DOWNLOAD AND PLAY
STREAMING WITH ADVERTISING
Content available for download upon payment (e.g. TV Series: EUR 1.99 per episode)
Content can be viewed on line with advertising windows
45 million videos watchedand 350.000 new unique
users since launch in April2007
Unique Users: up to 1.200.000 per month
Source: Nielsen NetRatings
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Mediaset’s Approach | Internet
Video on demand: current content offer
Italian FictionItalian Fiction
American TV Series
American TV Series
Live Football Matches
Live Football Matches
MoviesMovies
Entertainment shows
Entertainment shows
Carabinieri, Distretto di Polizia,…
The Closer, The OC, Smalville, Nip/Tuck
The Serie A league 3 most excitingmatches of the day
National and internationalblokbuster movies
Re-runs of Mediaset’s best entertainment programming
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Mediaset’s Approach | Mobile Big Brother: more than 80.000 videos downloadedduring the last edition
ACCESS
CONTENTS
One integrated offer of textual and audiovisual content:developed as a wap-based mobile site delivered via the Mobile Operators portals under one umbrella brand Mediaset.itTV services: program guide, in-depth information, programmingVideos from the best TV shows: Grande Fratello, Amici, Scherzi a Parte..Videonews: Tg5, Tgcom, Studio Aperto…
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Mediaset’s Approach | Mobile (DVB-H)
Transmission Network Content
- 3 Commercial Channels- “Series A” Championship- Champions League
- 3 Commercial Channels- “Series A” Championship- Boing (kids channel)
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FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS
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Conclusions | Mediaset’s Strategic Priority
Focus on “Core Business”Enhance the value of specific target audience and emphasize the uniqueness of commercial TV target
Consolidate the present programming cost discipline
Increase exploitation of our brand and contentEnhancing Multichannel strategy (FTA)
Increasing “premium” content (PPV)
Enlarge DTT platform
Test valuable business model in the “niche audience” area (independently from the platform)
Opportunistic approach in M&A
CONTENT
GEOGRAPHY
ACCESS
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Sanford C. BernsteinFourth Annual
Strategic Decisions Conference 2007
London, 26th September 2007
Half Results
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Forward-looking StatementsStatements contained in this document, particularly the ones regarding any Mediaset Group possible or assumed future performance, are or may be forward lookingstatements and in this respect they involve some risks and uncertainties.
Mediaset Group actual results and developments may differ materially from the onesexpressed or implied by the above statements depending on a variety of factors.
Any reference to past performance of Mediaset Group shall not be taken as anindication of future performance.
This announcement does not constitute an offer to sell or the solicitation of an offerto buy the securities discussed herein.
Investor Relations Department:
Tel: +39 02 2514.7008Fax: +39 02 2514.6719Email: [email protected]: www.gruppomediaset.it/investor/
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