Half Morgan Stanley 7th Annual TMT Conference
Barcelona, 14th -16th November 2007 Entertaiment Industry | What has changed
Technological Innovation is changing consolidated 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 channels, internet site and free press and distribution platform as mobile phones and even video games.
The “Long Tail” of the modern entertainment Broadcaster | Macro Strategic Options
1. Pure “Content provider” and “Content packager” focus on the product low level of vertical integration platform agnostic
2. “All-round” Media Company Shift from product to client/viewer vertical integrated “Access” management Mediaset | Inclination towards Media Company
Entrepreneurial approach
First to understand importance of developing its business on an international scale
Control of the broadcasting infrastructure
First among FTA Broadcaster to get into the PPV market
Recent acquisition on the Content side (Endemol, Medusa)
Natural inclination towards Media Company Entertaiment Industry | Audience Fragmentation Effect
Impacts on the audience market
Audience +
Generalistic Theme - - Content Content Niche Content
Mass Market Fragmented “Long Tail“ Audience Audience Audience
Concentration Fragmentation Entertaiment Industry | Audience Fragmentation Effect Two main business models have proven to co-exist
Mainly Advertising Audience (Analog/digital)
+
Mainly Pay-TV(digital)
Generalistic Theme Niche Content - Content Content Mass Market Fragmented “Long Tail” Audience Audience Audience
Concentration Fragmentation Entertaiment Industry | Mediaset’s strategic approach
FTA TV: C5, I1, R4 (Mediaset Core Business) Audience + Multichannel: Boing, others to come
Pay TV: Football, Movies, TV Series, others
Niche: Home Shopping, Internet, Mobile, PCTV, VOD, User Generated Content Generalistic Theme Niche Content - Content Content Mass Market Fragmented “Long Tail” Audience Audience Audience
Concentration Fragmentation FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS Mediaset’s Approach | Free to Air Television
24 hours Audience Share: Figures include analog, satellite (incl. SKY Italia homes) and DTT platforms
10M 2006 10M 2007
43.5% 41.6% INDIVIDUALS
40.4% 40.6%
39.9% 37.4% COMMERCIAL TARGET (15-64 Years) 42.5% 43.1%
Source: Auditel Mediaset’s Approach | Free to Air Television
Prime Time Audience Share (20:30 - 22:30) Figures include analog, satellite (incl. SKY Italia homes) and DTT platforms
10M 2006 10M 2007
45.2% 43.8% INDIVIDUALS
40.6% 40.6%
42.5% 40.8% COMMERCIAL TARGET (15-64 Years) 42.5% 42.9%
Source: Auditel Mediaset’s Approach | Free to Air Television
Sky Italia – Audience Share: April – October, 24 hours, Individuals
Audience Share (%)
Sky Channels (10) 2.7 1 channel audience > 0.5 Fox Channels (6) 1.7 21 channels audience 0.1 – 0.5 RAI SAT 0.5 64 channels audience < 0.1
Discovery Channels 0.3
SitCom Channels 0.1
Other FTA Satellite 2.9
TOTAL SATELLITE 8.2
Source: Auditel FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS Mediaset’s Approach | Multichannel
Boing Audience: First Kids Channel
Individuals (Dtt) - 24 Hours Kids 4 –14 (Dtt) – 24 Hours
1.9% 9.9% 8.6% 1.1%
September ‘06 September’07 September ‘06 September’07
Individuals - 24 Hours Kids (4 – 14) – 24 Hours
Boing 0.35 Boing 2.53 Disney Channel 0.33 Disney Channel 2.36 Playhouse Disney 0.24 Playhouse Disney 1.42 Disney Channel +1 0.16 Disney Channel +1 1.20 RaiSat Yoyo 0.06 RaiSat Smash 0.42 RaiSat Smash 0.05 RaiSat Yoyo 0.30
Source: Auditel, September 2007 FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS Mediaset’s Approach | PPV
Mediaset Premium present PPV offer:
live broadcast of Serie A and FOOTBALL Champions League matches
the most recent international MOVIES blockbusters
the latest episodes of America’s SERIE most famous Series
24 hours coverage of the currently REALITY SHOWS playing shows
OTHER EVENTS theater plays, concerts Mediaset’s Approach | PPV
Mediaset Premium smart cards and recharges sale
End of Phase 1 000’s 10.365 9.756 10.000 9.188
8.202 7.933 8.000
6.911 6.266 6.000 5.380
4.338
4.000 2.730 2.918 2.794 2.628 2.820 2.574 2.369 2.048 2.092 2.998 2.000 2.540 1.282 1.951 2.330 1.994 1.798 1.922 1.438 1.561
0 Aug. Dec '05 Feb '06 Apr Jun '06 Aug Oct. Dec '06 Feb '07 Mar '07 Jun '07 July '07 Aug '07 Sept'07 31-ott-07
SmartCard Sold to retailers Recharges Sold to retailers FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS Mediaset’s Approach | Niche Audience
Mediaset is testing all platform/ business models
Home Shopping
Internet based platform
Digital Merchandising (VAS)
Mobile DVB-H / UMTS
Participation TV
Merchandising
Music Mediaset’s Approach | Home Shopping
C5, I1, R4 Production and post Production Facilities Retail Windows Retailing and Marketing Customer Service Delivery and Logistics Direct 24h Channel Over 20 ml TV contacts each day Marketing on Dtt & Over 1.3 ml clients Satellite 60% Revenues from windows and 24h Channel From Jan. to Oct. 2007: Internet Catalogue and Print - 30.000 average orders per month - 100 euro, average revenue per order Mediaset’s Approach | Internet platform
Through internet platform Mediaset offers:
COMMUNITIES MULTIPLATFORM and VIDEO ON DEMAND NEWS SERVICE USER GENERATED CONTENT Mediaset’s Approach | Internet platform
MULTIPLATFORM NEWS NEWS SERVICE TGCOM provides real time news through its website and its mobile update service
Unique Users: 4.600.000 per month Page Impressions: 144.000.000 per month
Source: Nielsen NetRatings Mediaset’s Approach | Internet platform
COMMUNITIES and USER GENERATED CONTENT
Unique Users: up to 3.600.000 per month Page Impressions: up to 100.000.000 per month
120 SECONDS 6 COME 6 120 SECONDS 6 COME 6 Wanna-be reporters can Viewers can shoot their share and publish their own Italia 1 channel work on this section of the promotional video. The TGCom website best works will be broadcast on FTA
LE IENE TALENT 1 LE IENE TALENT 1 On the website of one of Singers, dancers and Mediaset most popular tv young film directors can shows people can share promote themselves by funny videos and candid sharing their perfomance cameras samples on the web
Source: Nielsen NetRatings Mediaset’s Approach | Internet
The best content from all Mediaset platforms is also available on demand through its PC – Television service
VIDEO ON DEMAND
Unique Users: 60 million videos watched up to 1.300.000 per month since launch in April 2007
DOWNLOAD AND PLAY STREAMING WITH ADVERTISING Content available for download upon Content can be viewed on line with payment (e.g. TV Series: EUR 1.99 per advertising windows episode)
Live Football Entertainment Italian Fiction US TV Series Movies Matches shows
Source: Nielsen NetRatings Mediaset’s Approach | Mobile Big Brother: more than 80.000 videos downloaded WAP based mobile site that integrates a wide during the last edition of textual and proprietary audiovisual content, delivered via all the mobile operators portals under the umbrella brand “mediaset.it”
Main operator in Italy on the DVB-H technology both on content and transmission broadcasting side
FTA Premium
Canale 5 Italia 1 “Serie A” Italian League
Uefa Rete 4 Boing Champions League FREE TO AIR
MULTICHANNEL
PAY TV
NICHE
CONCLUSIONS Conclusions | Mediaset’s Strategic Priority
In MS strategy: “Content is king … but cash is the queen” Endemol Medusa “all platform” agreement with Universal and Warner Focus on FTA “Core Business” Maintain our market share in a cyclical 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 content Enhancing Multichannel strategy (FTA) CONTENT Widening “premium” content offer (PPV) Platform “neutral” … but preference on DTT Test valuable business model in the “niche audience” area (independently from the platform) GEOGRAPHY
Opportunistic approach in International M&A ACCESS Investor Relations Department:
Tel: +39 02 2514.7008 Fax: +39 02 2514.6719 Email: [email protected] WebSite: www.gruppomediaset.it/investor/
Forward-looking Statements Statements contained in this document, particularly the ones regarding any Mediaset Group possible or assumed future performance, are or may be forward looking statements and in this respect they involve some risks and uncertainties. Mediaset Group actual results and developments may differ materially from the ones expressed 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 an indication of future performance. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein.