October Digital Terrestrial TV
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1 M e d i a s e t G r o u p October 2004 Terrestrial TV
2 Number of DTT multiplexes (every multiplex can host 4-6 channels) mux 2 mux 1 mux Norway Finland Spain Germany Italy United Kingdom 1 mux 2
3 Mediaset owns the transmission infrastructure to broadcast The network, is made up of over 1800 sites nationwide (4500 transmitters), ensuring a 99% analog coverage of the country A minimum investment required to switch from analog to digital transmission Mediaset is already covering over 63% of the country with one Multiplex Total Estimated Investment : 70ml Population Coverage > 63%, 75% by end of 2004 > 63%, 70% by end of 2004 > 57%, > 63%, 75% by end of
4 MHP already sold in nearly 6 months Price between 0 and 199 (net of 150 State Contribution) No more State subsidies available in SOLD OUT Feb. Mar. Apr May. Giu Jul Sep Oct. 4
5 Estimates on DTT Set-up-Box Penetration in Italy 90% 93% 96% 99% 90% 28% 28% 35% 40% 22% 14% 19% 20% 5% 10% 15% 17% 12% 7% Scenario Ottimistico Scenario Intermedio Scenario Pessimista Switch off end 2006 Switch off end 2010 Switch off end 2012 Source: Booz Allen Hamilton 5
6 21 now on DTT Additional 5 by Year-end 7 GENERALISTIC CHANNELS 2 SPORT CHANNELS 3 MUSIC CHANNELS 5 NEWS CHANNELS VJ TV 1 INFO/CINEMA CHANNEL 2 PUBLIC SERVICE CHANNEL RAI DOC RAI UTILE 1 EDUCATIONAL CHANNEL 6
7 Broadcaster Mux MUX RAI 1 RAI UNO RAI DUE RAI TRE RAI DOC RAI UTILE MUX RAI 2 RAI NEWS 24 RAI SPORT NOTIZIE RAI EDU MUX RTI RETE 4 BBC WORLD 24 ORE TV CLASS NEWS VJTV COMING SOON TV MUX D-Free CANALE 5 ITALIA 1 LA CHAINE INFO SPORT ITALIA RADIO ITALIA TV MUX-TELECOM La La 7 MTV 7
8 launch a new Free Kids Channel together with Turner Broadcasting: on air before Christmas UK - Audience Share (Multichannel free+pay) (Daily Breakdown in min. per Day) Intrattenimento Bambini Sport Cinema Musica 00:16 00:10 00:09 00:06 00:36 Others Theme 8% s 1% 4% Documentary 6% Music 7% Entertainment 38% Documentari 00:05 s Canali specialisti 00:03 00:01 Cinema 9% Altri Source: BARB, Annual Report BSkyB, Analisi BAH 00:09 00:00 00:07 00:14 00:21 00:28 00:36 00:43 00:50 Sport 11% Kids 17% 8
9 ENTERTAINMENT SPORT NEWS FILM / FICTION GAMING SERVICES / PUBLIC UTILITY ADVERTISING COMMERCE BETTING 9
10 INNOVATIVE BUSINESS MODEL No subscription required Low Price per Unit (from 3 per match) Open Platform Nagravision supplier of Conditional Access Technology 1 Buying pre-paid card in the Kiosk 4 Expirying data Periodic Change of the card Premium 2 Watching Premium Content being charged 3 Recharging card (on-line / off line)
11 Teams Supporters (ml) Rights Investments JUVENTUS 9,7 MILAN 5,0 3 seasons + pre-emption INTER 4,7 ROMA SAMPDORIA 2,0 0,6 3 seasons + pre-emption 118 ml ATALANTA 0,4 3 seasons MESSINA 0,4 LIVORNO 0,3 11
12 SKY Italia - Satellite Rosso Alice - ADSL Fastweb - Cavo PPV Mediaset DTT Option Tutto Calcio 47,00 per months (564,00 per year) Option Tutto Calcio SKY 99,00 per year Option Sport, only Premium game, 32,00 per month (384,00 per year) + 371,00 yearly subscription 244,00 yearly subscription + 12,00-15,00 or per match 384,00 yearly flat subscription + 2,50 per match 371,00 yearly subscription + 12, per match No subscription + from 3 per match 12
13 Terrestrial TV - Revenue Stream Model - 13
14 MEDIASET Revenue Stream in the Analog Context FTA COMMERCIAL TV MULTIMEDIA OTHER NON TV ACTIVITIES 3 FTA generalistic channels funded by advertising Homeshopping Resale of 4 Theme to Pay TV platform Advertising on Teletext Internet Content Re-sale to Telecom Operator Brand Extension Publieurope (Pan-european Advertising) Billboards in the stadium Network operations Services Others 14
15 MEDIASET Revenue Stream in the Future DTT Context FTA COMMERCIAL TV 3 FTA generalistic channels funded by advertising MULTIMEDIA Resale of 4 Theme to Pay TV platform Advertising on Teletext MULTICHANNEL INTERACTIVITY PPV NETWORK OPERATOR Theme Channel funded by targeted advertising (Kids Channel) Interactive and Enhanced advertising Revenue Sharing from Transactional Services: Betting Commerce Banking Premium Content Access through: Pay-per-View Pay-per-Time Pay-per- Category Renting of Spectrum on Transmitting Network to noncaptive content provider OTHER NON TV ACTIVITIES Publieurope (Pan-european Advertising) Internet Content Re-sale to Telecom Operator Brand Extension Exchange Fee with Telecom Operator Billboards in the stadium Network operations Services Others 15
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