Paris Conference 2

The growth of multi–channel

All-day ratings in Italy, 2001-2005 (in %) 50 47.0 46.4 45 44.9 44.3 43.3 43.9 V Rai and Mediaset continue to 40 43.2 43.0 43.0 41.9 35 lose their audience Rai 30 Mediaset VOther terrestrial TV channels 25 La7 are keeping steady 20 Other terres. Other sat. 15 + 1.5 VWith the success of Sky Italia, 10 6.6 7.8 8.8 6.2 6.5 sat TV increases 1.5 rating points 5 2.5 4.1 5.6 2.0 1.8 2.2 2.4 2.7 in one year 0 - - 2001 2002 2003 2004 2005

Satellite viewers, april 2006 (individuals) V Satellite is the main multi- Fta channel platform, with over 21 Dth viewers viewers million users 37% 35% VSky Italia had nearly 3.8 million subscribers in July 2006 Dth viewers Sky 63% viewers 65% Source: IsICult analysis on Auditel/ Eurisko figures News in the generalist channels

Morning edition’s news bulletins ratings 2004 /05 V Audience ratings of Italian 27.7 26.6 + 2,7 news prove the success of TV + 7,3 23.9 22.2 20.4 information + 7,6 17.2 14.6 V In the morning edition, 5 news 12.1 + 5,5 + 4,2 10.0 11.7 7.9 8.1 are at least 2.5 rating points 1.8 2.7 higher than channel’s average Tg1 Tg2 Tg3 Tg4 Tg5 Studio Tg La7 Aperto V The morning editions of Tg1 13:30 13:00 14:20 13:30 13:00 12:30 13:00 and Tg2 gain more than 7 rating Evening edition’s news bulletins ratings 2004 / 05 30.5 points against the average in the + 4,4 28.2 + 3,9 26.1 24.3 same time slot

15.1 + 3,5 V In the evening edition, 60 % 11.6 10.6 9.3 8.7 8.9 7.3 7.3 of the viewers on average 1.2 2.1 watch one of the 3 news Tg1 Tg2 Tg3 Tg4 Tg5 Studio Tg La7 programmes at the 8pm slot Aperto 20:00 20:30 19:00 19:00 20:00 18:30 20:00 Source: IsICult analysis on Auditeland Geca italia figures Genres prerfomance on satellite channels

Average weekly audience, 2005–2006 (in .000 )

+ 36,4 % 12,0 10.1 9.0 8.98.7 8.9 8.5 10,0 7.5 7.9 6.6 7.3 6.7 7.5 6.4 6.6 8,0 5.8 6.3 5.2 5.6 4.9 6.1 6,0 4.2 4,0 2,0 0,0 rt s a ds ic o w em Sp Ne n Docs n&ki Mus Ci re ild Entertainment Ch Spring 2005 Autumn 2005 Spring 2006 V News channels are the second most watched genre in the satellite habitat VAverage weekly audience increased 36.4 % in a year VAmong News channels, current affairs channels registered an average weekly audience of 8.7 million; economic channels had 2.2 million

Note: the figures refer only to the satellite habitat; other multi-channel platforms, such as Dtt are excluded (*) waves: Feb – Apr 2005, Sep – Nov 2005, Feb – Apr 2006 Source: IsICult analysis The offer of all-news channels in Italy V14 info-channels V8 current affairs channels V5 national channels V2 current affairs national channels: Rai News 24 and Sky Tg24 V1 current affairs channel on Dtt: Rai News 24

Sat Sat Iptv Iptv Mob. Mob. Channel Broadcaster Country Languages Genre Dtt (Sky) (Fta) (Fwb) (Atv) (Tre) (Tim) Subscribers (in ,000) 3,800 3,800 2,200 190 n.a. 150 n.a. Rai News 24 Rai It Italian Generalist √ √ √ √ Sky Tg24 Sky Italia (News Corp.) It Italian Generalist √ √ √ √ Euronews Secemie (Rai 21,7 %) Eu Italian Generalist √ √ Class News Class Editori It Italian Economy √ √ Class / Cnbc Class Editori 60 % It Italian Economy √ √ 24 Ore tv Il Sole 24 Ore It Italian Economy √ Bloomberg Bloomberg L.p. Us Italian Economy √ √ Eurosportnews Tf 1 Fr Italian Sport √ Bbc World Bbc Uk English Generalist √ √ √ √ Sky News BSkyB (News Corp) Uk English Generalist √ Cnn International Time Warner Us English Generalist √ √ Fox News Fox Ent. Group (News Corp.) Us English Generalist √ Cnbc Europe Nbc Universal Us English Economy √ Only 2 national Lci Tf 1 Fr French Generalist √ generalist all-news Note: weather channels are excluded; only dvb-h offers are taken into account (Umts offers are then excluded) channels Source: IsICult analysis News channels prerfomance

Average daily audience, spring 2006 (in .000)

1.500 V Sky Tg24 is the leader in the news 1.000 segment 500 0 s l g V Remarkable performance of Sky 24 ws tv ew ne tiona e Cnbc Tg a Or mber Sk ky N rn o Europe News and Eurosportnews S sport Euronews Fox News 24 Rai News 24 Inte Blo Bbc Worldnbc uro Class / C E nn C Note: the figures refer only to the satellite habitat; other multi-channel platform, such as Dtt are excluded Source: IsICult analysis V Weak position of the “economy” channels Average weekly audience 2005 – 2006 * (in .000) 5.000 V Strong performance of Sky Tg24, 4.000 3.000 with an increase of 65 % in one year 2.000 1.000 0 4 s al c 2 ws w s s v rg pe g24 s e e ew ion w t nb e o T N n at Ne re C b ur k ew ortn ro n O / m E S i N ky p u ox 24 ss oo c VThe gap between Sky Tg24 and Rai a S s E F la Bl Bbc World b R ro C Cn Eu Cnn Inter News 24 increased throughout last Spring 2005 Autumn 2005 Spring 2006 year

Note: the figures refer only to the satellite habitat; other multi-channel platforms, such as Dtt are excluded (*) Spring 2005, Autumn 2005, Spring 2006 Source: IsICult analysis Composition of all-news offer (1)

The place of origin of all news channels 5 4 V Only one-third of the channels is Italian

2 2 V Strong Usa presence, with 4 channels 1

Italy Usa Uk France Europe Source: IsICult analysis The genre of all-news Languages of all-news channels V All-news channels have only 3 genres V Prevalence of current affairs channels V Nearly half channels are 8 8 V 5 channels of ecomony in foreign languages

5 5 6

1 1

Current affairs Economy Sport Italian English French Source: IsICult analysis Source: IsICult analysis Composition of all-news offer (2)

The channels’ genres according to place of origin

2 3 Italy 2 2 VOnly 2 Italian current affairs channels against Usa 5 foreign channels (Euronews included) 2 Uk 1 1 France V Only the sub-genre “Economy” is produced 1 Europe by Italian broadcasters 8 5 1 Total

Current affairs Economy Sport

Source: IsICult analysis The channels’ genres according to language

3 4 1 Italian VStronger presence of English over Italian 4 1 spoken channels English 1 V4 economic against 5 current affairs French channels 8 5 1 Total

Current Affairs Economy Sport Source: IsICult analysis The market leaders: Sky Tg24

V Production: 5,800 h/year V Interactive service “Sky Active”: 6 windows (current programme, main dtt issues, weather, sports, show-biz ) Sky sat fta V 30’ news bulletins every 30’, 4 one-hour bulletins Fastweb V Formats: Sky Tg pomeriggio , Miaeconomia , Capitani di impresa , Alice Home Tv Tre (F.a.d.) Fashion, Art e Design , Controcorrente Tim V Available in Dvb -h Mobile Tv mode (Tre and Tim)

V Launch: Aug. 2003 Programming split per genre (in %)

V Personnel: 300 (100 journalists) 6% 8% V Offices : News bulletins - 9 national Sport magazines - 6 international 19% Business V Budget: ~150 mln Euros * 59% magazines Cultural magazines V Audience: 1,352,000 av. daily viewing 5% News magazines 3%

(*) IsICult estimates Source: IsICult analysis on Sky figures The market leaders: RaiNews24

V Production: around 3.800 h/year V Interactive services: on Dtt dtt Sky V Newsgathering based on Bbc model sat fta V Terrestrial window on Raitre every night (02:00-08:05) Fastweb Alice Home Tv V 15’ news bulletins every 30’ Tre Tim V 30’ time-shifted edition of the evening terrestrial bulletins (19:30 –21:00) V Format: Macrosfera , Next , Pianeta Economia, Superzap, Decoder , Atlante , Scirocco , Shownet

VLaunch: Apr. 1999 Net average annual weekly reach (.000) VPersonnel: 135 VOffices: 2,500 2,069 - 21 national 1,900 - 11 international VBudget: 30 Mln. Euros VAudience: 726.000 av. daily viewing 2003 2004 2005 (*) IsICult Estimates Source: IsICult analysis on Rai figures Comparison between the market leaders

+ + VIt is broadcasted on Dtt VMain position in Sky’s channels list VInteractive services on Dtt VGood trend of Sky brand VStrong sinergies with the 3 main terrestrial VUser friendly full screen format channels - - VIt is not broadcasted on Dtt and VSophisticated multi-screen format Fastweb Iptv VVery high-profile target VLow experience VWeak identity and low appeal

Average weekly viewing 2005-2006 * (in .000)

5.000 4.6 4.500 4.000 3.5 3.500 3.1 2.8 3.000 2.5 2.3 Sky Tg24 2.500 2.000 Rai New s 24 1.500 1.000 Note: (*) Spring 2005, Autumn 2005, 500 0 Spring 2006 Spring 2006 Autumn 2005 Spring 2006 Source: IsICult analysis And now? / 1

1) Short Term: high competition on Dtt platform:

Mediaset will launch news channel late this year on Dtt

Possible launch of Sky Tg 24 Possible re-launch, on Dtt platform re-branding of (depending on the Antitrust barriers to Rai News 24 Sky Italia) And now? / 2

2) Medium term: new entrants in the current affairs news market

Webcasting / Unicasting Broadcasting VWeb VMobile (Umts) VIptv

VSat

VDtt

3) Long term: new players on new genres:

Sport news channels About IsICult