Author

Juan Pablo Conti Senior Analyst Dataxis Latin America

Juan Pablo Conti is based at the Latin American offices of Dataxis in Buenos Aires, Argentina. With over 12 years experience covering the media and telecoms industries, Juan Pablo has been the editor of two UK-based trade magazines: the Daily Mail Group’s Cable & Satellite Communications International (CSCI) and the Institution of Engineering and Technology’s Communications Engineer – both published in London. Prior to joining Dataxis in February 2012, he was the Latin American correspondent for Rapid TV News. He has written numerous technology and market-focused articles about the broadcast, broadband, satellite and wireless sectors. His work has appeared in publications including Engineering & Technology (E&T), International Broadcast Engineer (IBE), Via Satellite, CableLabs’ Specs News & Technology, NFC Times and Flipside magazine. Juan Pablo has also worked as a News TV Producer for America 2 and as the Contents Coordinator for a Web design company in Buenos Aires. He can be contacted at: [email protected]

Table of Contents

1. Argentina

1.1 Free-to-Air market 1.1.1. Households with TV sets and FTA reception Chart 1. Households with TV sets (millions) and penetration over total households (%). Argentina, 2008-2018. Chart 2. Households with FTA (millions) and penetration over total households with TV sets (%). Argentina, 2008-2018. 1.1.2. FTA revenues Chart 3. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Argentina, 2008-2012.

1.2. Distribution strategies of main broadcasters 1.2.1. El Trece Table 1. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of El Trece. Argentina, 2013. 1.2.2. Telefe Table 2. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Telefe. Argentina, 2013. 1.2.3. TV Pública Digital Table 3. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of TV Pública. Argentina, 2013. 1.2.4. Canal 9 Table 4. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 9. Argentina, 2013. 1.2.5. América TV Table 5. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of América TV. Argentina, 2013.

2. Brazil

2.1. Free-to-Air market 2.1.1. Households with TV sets and FTA reception Chart 4. Households with TV sets (millions) and penetration over total households (%). Brazil, 2008-2018. Chart 5. Households with FTA (millions) and penetration over total households with TV sets (%). Brazil, 2008-2018.

2.1.2. FTA revenues Chart 6. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Brazil, 2008-2012.

2.2. Distribution strategies of main broadcasters 2.2.1. Rede Globo Table 6. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Rede Globo. Brazil, 2013. 2.2.2. Rede Record Table 7. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Rede Record. Brazil, 2013. 2.2.3. Rede Bandeirantes Table 8. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Band. Brazil, 2013. 2.2.4. RedeTV! Table 9. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, 3D, catch-up TV and international distribution strategies of RedeTV! Brazil, 2013. 2.2.5. SBT Table 10. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of SBT. Brazil, 2013.

3. Chile

3.1. Free-to-Air market 3.1.1. Households with TV sets and FTA reception Chart 7. Households with TV sets (millions) and penetration over total households (%). Chile, 2008-2018. Chart 8. Households with FTA (millions) and penetration over total households with TV sets (%). Chile, 2008-2018. 3.1.2. FTA revenues Chart 9. FTA TV advertising expenditure and percentage over total ad spend (%). Chile, 2008-2012.

3.2. Distribution strategies of main broadcasters 3.2.1. TVN (Televisión Nacional de Chile) Table 11. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of TVN. Chile, 2013.

3.2.2. Canal 13 Table 12. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 13. Chile, 2013. 3.2.3. Chilevisión Table 13. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Chilevisión. Chile, 2013. 3.2.4. Mega Table 14. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Mega. Chile, 2013.

4. Colombia

4.1. Free-to-Air market 4.1.1. Households with TV sets and FTA reception Chart 10. Households with TV sets (millions) and penetration over total households (%). Colombia, 2008-2018. Chart 11. Households with FTA (millions) and penetration over total households with TV sets (%). Colombia, 2008-2018. 4.1.2. FTA revenues Chart 12. FTA TV advertising expenditure and percentage over total ad spend (%). Colombia, 2008-2012.

4.2. Distribution strategies of main broadcasters 4.2.1. Caracol TV Table 15. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Caracol TV. Colombia, 2013. 4.2.2. RCN Televisión Table 16. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of RCN Televisión. Colombia, 2013.

5. Mexico

5.1. Free-to-Air market 5.1.1. Households with TV sets and FTA reception Chart 13. Households with TV sets (millions) and penetration over total households (%). Mexico, 2008-2018. Chart 14. Households with FTA (millions) and penetration over total households with TV sets (%). Mexico, 2008-2018. 5.1.2. FTA revenues Chart 15. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Mexico, 2008-2012.

5.2. Distribution strategies of main broadcasters 5.2.1. Canal de las Estrellas Table 17. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal de las Estrellas. Mexico, 2013. 5.2.2. Canal 5 Table 18. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 5. Mexico, 2013. 5.2.3. Gala TV Table 19. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Gala TV. Mexico, 2013. 5.2.4. Azteca Trece Table 20. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Azteca Trece. Mexico, 2013. 5.2.5. Azteca 7 Table 21. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Azteca 7. Mexico, 2013.

6. Peru

6.1. Free-to-Air market 6.1.1. Households with TV sets and FTA reception Chart 16. Households with TV sets (millions) and penetration over total households (%). Peru, 2008-2018. Chart 17. Households with FTA (millions) and penetration over total households with TV sets (%). Peru, 2008-2018. 6.1.2. FTA revenues Chart 18. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Peru, 2008-2012.

6.2. Distribution strategies of main broadcasters 6.2.1. América Televisión Table 22. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of América Televisión. Peru, 2013. 6.2.2. ATV (Andina de Televisión) Table 23. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of ATV. Peru, 2013. 6.2.3. Frecuencia Latina Table 24. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Frecuencia Latina. Peru, 2013.

6.2.4. Panamericana Televisión Table 25. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Panamericana. Peru, 2013.

7. Conclusions

7.1. Households with TV sets and FTA reception Chart 19. Households with TV sets (millions) and penetration over total households (%). Latin America, 2008-2018. Chart 20. Households with TV sets. Market share per country (%). Latin America, 2008-2018. Chart 21. Households with FTA (millions) and penetration over total households with TV sets (%). Latin America, 2008-2018. Chart 22. Households with FTA. Market share per country (%). Latin America, 2008-2018.

7.2. FTA revenues Chart 23. FTA TV advertising expenditure. Market share per country (%). Latin America, 2012.

7.3. Distribution strategies of Latin American broadcasters Table 26. FTA TV broadcasters actively implementing DTT, HD, Pay-TV, mobile TV, online simulcast, catch-up TV, international distribution and social networking strategies. Latin America, 2013.

Study Structure and Methodology

This report is entitled “New strategies for FTA broadcasting in Latin America”, and was completed in May 2013. It offers a detailed analysis of the progress that FTA TV stations are making towards adapting their traditional broadcast operations to meet changing expectations placed on them by regulators, the advent of digital HD broadcasting technology and new generations of viewers demanding anywhere, anytime and anyhow access to audiovisual content.

The work is organized around six country-specific chapters covering Argentina, Brazil, Chile, Colombia, Mexico and Peru. The top 25 FTA broadcasters operating throughout these key Latin American markets were analyzed, while a final chapter was used to provide total regional figures and our conclusions.

Each country-specific chapter was subdivided into two main sections. The first one analyzes the historical (2008-2012) and projected (2013-2018) size of the FTA TV market in each country. Additionally, it includes annual advertising revenues collectively generated by FTA broadcasters between 2008 and 2012.

The second section of each country chapter offers a detailed description of the work that the main broadcasters with nationwide analog coverage are carrying out in terms of: migrating towards digital terrestrial television (DTT) broadcasting; expanding their distribution over local pay-TV systems; simulcasting mobile TV channels using 1-Seg technology; migrating their full programming schedule to native HD production and transmission; deploying a catch-up TV strategy; offering a live online simulcast of their digital feeds; expanding their international distribution; and complementing their broadcast and VOD strategies with social networking activities.

The criterion used to select the top FTA broadcasters in each country was the annual audience ratings recorded by the main stations with nationwide coverage in 2012.

Historical figures used in this report were extracted from Dataxis’ Global Database. Forecasts were made in April 2013, and are also partly available in Dataxis’ Global Database. Unless specified, all financial figures (including advertising expenditure) were expressed in United States Dollars in order to provide a unified regional criterion.

Executive Summary

At the end of 2012, over 130 million households in Latin America’s seven largest TV markets had at least one TV set. Of those, households relying only on free-to-air (FTA) TV reception still accounted for 62.7% (or 81.6 million households). This figure also included households with illegal pay-TV access or underreported pay-TV subscriptions. However, as legal pay-TV services continued to enjoy high demand, Dataxis forecast that FTA TV and pirated connections would diminish markedly by 2018, accounting for less than one-third of TV homes in the region.

Annual advertising revenue generated by FTA broadcasters in six countries analyzed (Argentina, Brazil, Chile, Colombia, Mexico and Peru) totaled USD 15.8 billion. Compared with 2011, this represented a decrease of 9.3%, which was mainly explained by the devaluation of the Brazilian Real and the Mexican Peso in 2012. Brazilian broadcasters had obtained the largest share of such revenue: over 61% of total TV ad spend. Broadcasters from Latin America’s two other large TV markets, Mexico and Argentina, had respectively obtained 18.1% and 10.9% of regional FTA TV ad spend.

As of May 2013, 100% of the top-25 FTA TV stations across the six countries analyzed had begun broadcasting a digital terrestrial television (DTT) version of their analog TV networks. In most cases, digital broadcasts were still officially treated as “experimental”, given that analog transmissions had not yet been switched off in any country.

Over 90% of the FTA stations surveyed were broadcasting at least a portion of their programming schedule in native HD quality. Only two broadcasters had not yet launched any native HD content transmissions: América TV in Argentina and Panamericana Televisión in Peru. While several of the networks were making significant progress towards simulcasting 100% of their weekly programming grid in native HD broadcasting, only one station (Brazil’s RedeTV!) had actually managed to achieve this. RedeTV! was also Latin America’s only FTA broadcaster to be already offering a 3DTV version of its main channel – a world first in the FTA TV industry.

Whereas the SD version of all of the FTA digital TV channels analyzed was being carried by at least one – and, in most markets, several – pay-TV operators, the HD version of three different networks was still not included in the channel lineup of any pay-TV service providers.

As of May 2013, 56% of the broadcasters profiled across the six countries analyzed were actively simulcasting a mobile TV version of their DTT channels using the 1-Seg standard.

Of the 21 broadcasters that were simulcasting their live FTA feeds over the Internet, 20 were offering the service free of charge to domestic viewers, and 18 were also offering the live streaming service free of charge to users accessing it from a foreign country.

Only one of the 25 broadcasters surveyed (Canal 9 of Argentina) did not have a catch- up TV strategy in place to allow viewers to watch past episodes (or even highlights) from the network’s recent programming schedule. Of the 24 Latin American broadcasters that had deployed a catch-up TV platform, two (Globo in Brazil and Caracol in Colombia) were charging for the service, while all remaining VOD offerings were free of charge.

A select group of Latin American FTA broadcasters had begun to strike deals with smart TV, tablet and smartphone manufacturers, and to commission the development of software and applications that were allowing their TV programming to be accessible anywhere and anytime over those devices. Broadcasters leading this market included Globo and SBT in Brazil, TVN in Chile, Canal 13 in Argentina, América Televisión in Peru and Caracol TV in Colombia.

Argentina and Colombia were the only two FTA TV markets where all of the broadcasters analyzed had an international distribution strategy in place.

Televisa was the only major Latin American FTA TV broadcaster analyzed that did not have an institutional social networking presence on services such as Facebook, Twitter or YouTube. However, this did not mean that viewers of Televisa’s FTA TV channels were not able to share their views and experiences over social networking sites, as the broadcaster had instead created a wide range of Facebook pages and Twitter accounts that were specifically designed for individual soap operas and other popular TV programs.

1. Argentina

1.1. Free-to-Air market

1.1.1. Households with TV sets and FTA reception

Historically, Argentina had recorded high penetration rates of TV reception devices. As of the end of 2012, 98.2% of households (or 13 million homes) had at least one TV set, and it was expected that – by 2018 – this figure would increase marginally to 98.6% of households (14.4 million homes).

Chart 1. Households with TV sets (millions) and penetration over total households (%). Argentina, 2008-2018.

15 99%

14 98%

13 97%

12 96%

11 95%

10 94%

9 93% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 HHs with TV sets (MM) 11.99 12.27 12.54 12.81 13.06 13.28 13.49 13.70 13.91 14.14 14.37 HHs with TV sets/all HHs 97.6% 97.9% 98.1% 98.2% 98.2% 98.2% 98.2% 98.2% 98.2% 98.4% 98.6%

Source: Dataxis

Argentina boasted the greatest penetration rate of pay-TV services in Latin America. Of all households owning a TV set at the end of 2012, only 37.9% were not subscribed to a legal pay-TV system. If pirated connections to analogue cable and DTH services such as the so-called “AzBox” and similar variants were to be taken into consideration (together with underreported pay-TV subscribers), the universe of TV households relying exclusively on FTA broadcasts would be even smaller. Still, as pay-TV uptake continued to grow in Argentina, Dataxis estimated that the percentage of TV households that won’t be subscribing to any form of genuine pay-TV service will drop to 23% by 2018.

Chart 2. Households with FTA (millions) and penetration over total households with TV sets (%). Argentina, 2008-2018.

7 60%

6 50% 5 40% 4 30% 3 20% 2

1 10%

- 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FTA TV HHs (MM) 5.59 5.87 5.68 5.23 4.95 4.65 4.25 3.99 3.73 3.53 3.31 FTA HHs/HHs with TV sets 46.6% 47.9% 45.3% 40.8% 37.9% 35.0% 31.5% 29.1% 26.8% 25.0% 23.0%

Source: Dataxis

1.1.2. FTA revenues

Chart 3. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Argentina, 2008-2012.

9,000 50% 8,000 7,000 45% 6,000 40% 5,000 4,000 35% 3,000 2,000 30% 1,000 0 25% 2008 2009 2010 2011 2012 Local Currency 2,945.8 3,416.0 4,833.6 6,070.0 7,825.0 USD 851.4 896.6 1,205.9 1,469.7 1,727.8 % FTA/Total 38.8% 38.4% 39.2% 37.4% 34.9%

Source: Dataxis

The Argentine FTA TV sector raised most of its revenue from advertising sales. FTA TV attracted the largest share (nearly 35%) of total advertising expenditure in the country in 2012. In 2010, boosted by the Soccer World Cup, FTA TV revenue from advertising reached USD 1.2 billion. One year later, helped by a number of political campaigns

launched to contest provincial and presidential elections, revenues amounted to nearly USD 1.5 billion. In 2012, while overall economic growth in the country slowed significantly compared with the previous year, the retail sector continued to show strong demand, which explained why FTA TV ad spend had grown an additional 17.6% to reach over USD 1.7 billion.

The Argentinean FTA industry raised additional revenue through the export of original TV series and screenplays, particularly in the cases of Telefe and El Trece, the country’s two largest private broadcasters. Meanwhile, state-owned broadcaster TV Pública raised additional revenue from state funds. In the 2012 National Budget, 670 million Pesos (USD 146 million) were set aside for Radio y Televisión Argentina (RTA), the majority of which were expected to be used by TV Pública.

1.2. Distribution strategies of main broadcasters

The Argentine FTA market was regulated by the Federal Authority of Audiovisual Communication Services (Afsca). A different body, the National Communications Commission (CNC), was tasked with coordinating all relevant spectrum-related issues, effectively becoming involved whenever a shared RF band between broadcasting and telecommunications services requires intervention.

In Argentina, there were 60 FTA TV analog stations that operated over the Pal-N standard, both in the VHF and UHF bands. Of these, the five stations broadcasting from the national Capital were the country’s most important in terms of audience ratings and advertising revenues. They were: El Trece, Telefe, TV Pública, Canal 9 and América TV. Coverage from all five of these broadcasters effectively extended well beyond their assigned licensed area and into other provinces, thanks to networks of relay stations and agreements with affiliated channels. Additionally, all of them were included in the basic bouquets from most Argentine pay-TV companies operating in the Greater Buenos Aires area.

1.2.1. El Trece

Table 1. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of El Trece. Argentina, 2013.

Broadcaster profile

Station name Canal 13 (aka: El Trece). Owner Artear (Clarín Group). Programming focus Primarily focused on fictional TV series, live general-entertainment shows and news programs. Canal 13 produced a portion of the content it aired, but it also held key partnerships with

independent productions companies for some of its most successful shows. The Clarín Group was a strategic shareholder in Ideas del Sur and Pol-Ka, Argentina’s two most successful independent production companies. 2012 TV ratings 9.5 points (2nd spot behind Telefe). Analog terrestrial FTA Greater Buenos Aires area (AMBA). Artear also owned three coverage regional FTA TV stations in the interior of the country and held shares in another five. Additionally, there were seven independent FTA TV stations in the interior of the country that retransmitted part of its programming. Picture definition SD + HD (1080i). HD strategy Canal 13 was the first Argentine broadcaster to launch test FTA HD transmissions in DTT, in 1998. The company continued to test the technology for over a decade, using the ATSC standard. All FTA HD tests were stopped in 2009, following the Argentine Government’s official adoption of the ISDB-T DTT standard. However, the broadcaster continued to increase investment in HD production and, in 2011, became the first FTA network in the country to produce all content in HD. “El Trece HD” was then officially launched as a separate channel, to be exclusively distributed by pay-TV operators interested in carrying the HD network. DTT distribution El Trece was assigned, on a test basis, UHF channel 33 of the DTT spectrum for the AMBA region by the Argentine Government. As of April 2013, the network was intermittently simulcasting two SD and a 1-Seg DTT channels on this Mux, using its own transmission infrastructure equipment located in downtown Buenos Aires (on the roof of the Alas building). In March 2013, transmission power was reportedly increased to 800 W. Artear had publicly stated that it would not fully commit to DTT until it was officially granted a proper digital broadcast license. Distribution on Pay-TV As one of the five FTA TV channels broadcasting in the AMBA platforms region, El Trece was “must-carried” by all the local cable and the two DTH (DirecTV and INTV) operators offering video services in that area. Additionally, a satellite feed featuring similar (but not identical) programming was available to pay-TV operators in other Argentine cities (excluding those where Artear had affiliated FTA TV stations, in which cases the HD version of the same satellite feed was used by the corresponding affiliates to retransmit programming centrally produced in Buenos Aires and mix it with advertising insertions and locally produced content). As of April 2013, the HD version of the network (“El Trece HD”) was carried by pay-TV operators Cablevisión, Telecentro, Telered and INTV in the Buenos Aires area, Supercanal in various other cities and towns and smaller cable companies in the interior of the country using the Dibox pay-TV system, except in locations where Artear had FTA TV stations. Mobile TV distribution As of April 2013, Canal 13 was sporadically simulcasting (on a test basis) a mobile DTT version of its channel using the 1-Seg

standard on the 33.31 UHF channel of Argentina’s DTT network in the Greater Buenos Aires (AMBA) region. Live online simulcast? Yes – partial. As of April 2013, through the website of El Trece, Internet users in Argentina and globally were able to watch free of charge a live streaming version of four different news TV programs broadcast Mon-thru-Fri, and the second season of the Sunday TV show “Periodismo para Todos”. Catch-up TV strategy Starting in 2011, El Trece began to deploy a VOD strategy which, by April 2013, was allowing viewers to watch full past episodes and highlights of its most popular TV series and shows broadcast as early as the previous day and as far back as 12 months. Such programming was available, free of charge and in HD quality, via three different VOD platforms: the station’s own website (http://www.eltrecetv.com.ar/capitulos-completos), the VOD system of the Clarín Group-owned cable TV operator Cablevisión and an application embedded on Philips smart TVs produced and commercialized in Argentina. International Artear operated an international channel called “El Trece distribution Internacional”. As of April 2013, it was available in over 20 Latin American countries via cable, DTH and IPTV pay-TV platforms. Social networking Facebook; Twitter. presence Source: Dataxis

1.2.2. Telefe

Table 2. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Telefe. Argentina, 2013.

Broadcaster profile

Station name Televisión Federal S.A. (best known as: Telefe). Owner Telefónica de Argentina (a Telefónica Group subsidiary). Programming focus The bulk of the channel content consisted of general entertainment and fictional TV series starred by some of the country’s the most popular celebrities. Although the company relied on alliances with independent production houses, Telefe directly produced a good deal of its series through Telefe Contenidos. Telefe was also one of Argentina’s leading exporters of TV content. 2012 TV ratings 11.2 points (1st spot). Analog terrestrial FTA Greater Buenos Aires area (AMBA). The company also owned coverage eight VHF channels that broadcast in cities located in the interior of the country, and had a stake in three other channels. Additionally, seven independent FTA TV channels retransmitted part of Telefe’s programming in other cities and towns. Picture definition SD + HD (1080i).

HD strategy Telefe launched its first sporadic HD “broadcasts” in 2010, when a simulcast of its South Africa Soccer World Cup Argentina games was distributed to HD subscribers of cable operator Cablevisión. In 2011, the company launched its first FTA HD broadcasts, on a test basis. These consisted primarily of HD versions of some of its most popular TV series and coverage of some soccer games played by the Argentina National Team. As of April 2013, “Telefe HD” was still a channel featuring only partial HD content, with the bulk of the programming in SD. DTT distribution Telefe was assigned UHF channel 34 of the DTT spectrum for the AMBA region by the Argentine Government. As of April 2013, the network was simulcasting three DTT channels on this Mux: an HDTV (Telefe HD), an SD and a 1-Seg version. The Mux was being broadcast from multiple transmitters belonging to the state- owned infrastructure deployed as part of the TDA project, located in downtown Buenos Aires and in the Greater Buenos Aires area, including in Villa Martelli, Campana, La Matanza, Luján, Coronel Bransen, Cañuelas and La Plata. Distribution on Pay-TV As one of the five FTA TV channels broadcasting in the AMBA platforms region, Telefe was “must-carried” by all the local cable and the two DTH (DirecTV and INTV) operators offering video services in that area. Additionally, a satellite feed featuring similar programming but excluding the advertising was available to pay- TV operators in other Argentine cities (excluding those where Telefe had affiliated FTA TV stations, in which cases the affiliated companies had exclusive retransmission use of the programming centrally produced in Buenos Aires, which was then mixed with local advertising insertions and locally produced content). As of April 2013, Telefe HD (which only featured partial HD content) was distributed by cable operator Telecentro in the Greater Buenos Aires area. Argentina’s largest cable operator, Cablevisión, was only retransmitting (in one of its special-events HD channels) occasional soccer games played by the National Team. In early April, Cablevisión began testing the “full version” of Telefe HD in the city of Rosario, and it was expected that the channel would be added to the operator’s HD grid in Buenos Aires only after Telefe completed its all-HD programming switch, which was expected to take place later in 2013. Mobile TV distribution As of April 2013, Telefe was simulcasting a mobile DTT version of its channel using the 1-Seg standard on the 34.31 UHF channel of Argentina’s DTT network in the Greater Buenos Aires (AMBA) region. Live online simulcast? Yes – paid-for service provided by online TV service provider KyLin through its GuaoTV website (www.guaotv.com). The actual channel used for this online feed was Telefe’s international channel, “Telefe Internacional”. It could be accessed anywhere in the world as part of Guao TV’s Argentina Package, priced at USD 11.99/month, or as part of the Latin America Package, priced at USD 15.99/month.

Catch-up TV strategy As of April 2013, Telefe had deployed a catch-up TV strategy that allowed viewers to watch full past episodes of its most popular TV series, soap operas and TV news clips broadcast as early as the previous day and as far back as 12 months. Such programming was available, free of charge and in varying SD and HD qualities (up to an impressive 1080p resolution), via two different VOD platforms: the station’s own website (SD) and Telefe’s YouTube online channel (Full HD). Additionally, recent and past episodes of the broadcaster’s most popular original TV series were also available through the VOD system of Telefónica de Argentina’s On Video platform. International Telefe operated an international channel called “Telefe distribution Internacional”, launched in 1998 and available on the digital cable, DTH and IPTV lineup of over 30 pay-TV operators in Latin America, Europe and the United States. The channel was part of an international distribution business unit set up by the broadcaster, which also commercialized standalone TV series, original scripts and TV production services. As of April 2013, between its international TV channel and standalone TV series and formats, contents produced by Telefe were present in over 80 countries and territories, according to the company. Social networking Facebook; Twitter; YouTube (24,324 subs as of April 2013). presence Source: Dataxis

1.2.3. TV Pública Digital

Table 3. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of TV Pública. Argentina, 2013.

Broadcaster profile

Station name TV Pública Digital (aka: Canal 7; formerly: ATC). Owner RTA (state-owned company). Programming focus TV Pública’s programming usually drew the lowest TV ratings among the five large Argentine broadcasters. However, unlike the other four, it was the only channel authorized to broadcast nationwide. Canal 7’s main programming content consisted of live broadcasts of Argentina’s top-tier soccer league games, other live sports, news coverage and analysis, documentaries, general- interest shows and fictional TV series, usually in partnership with independent production companies. 2012 TV ratings 2.7 points (5th spot). Analog terrestrial FTA TV Pública’s analog FTA broadcasts reached over 70% of the coverage country’s land mass through approximately 300 relay stations. Picture definition SD + HD (1080i). HD strategy As of April 2013, a large portion of the programming broadcast by TV Pública was available in HD quality, including all live TV shows,

newscasts and major sports transmissions. “TV Pública Digital HD” was available nationwide on the country’s FTA DTT platform, with partial programming of the network (mainly, live high-profile soccer games) carried by several pay-TV operators. DTT distribution TV Pública was assigned UHF channel 23 of the DTT spectrum nationwide by the Argentine Government. As of April 2013, the network was simulcasting two DTT channels on this Mux: an HDTV (TV Pública Digital HD) and a 1-Seg version. The Mux was being broadcast from all of the transmitters belonging to the state-owned infrastructure deployed as part of the TDA project. As of April 2013, a total of 65 antennas had been switched on (including one in Antarctica), bringing coverage to over 82% of Argentinean households. Government officials estimated that the remaining antennas necessary to extend coverage to 95% of the population would be operational by 2014. Aside from TV Pública, five other sister public networks owned by the Federal Government (Encuentro, INCAA TV, Paka Paka, Tecnópolis TV and DeporTV) were also available on the DTT platform nationwide. Distribution on Pay-TV Pay-TV operators in Argentina were legally required to incorporate platforms TV Pública in their line-ups at no additional cost to subscribers, together with a group of other public, state-owned TV networks created for the pay-TV (Encuentro) or DTT (INCAA TV, Paka Paka, Tecnópolis TV and DeporTV) environments. While as of April 2013 pay-TV operators were by and large complying with such requirement for most of these additional public channels, cable companies tended to include them only in their digital lineups and not in their basic analog packages. In April 2013, two new such public DTT channels (ACUA Mayor and ACUA Federal) were launched by the Argentine Government, initially on a test basis in the Greater Buenos Aires (AMBA) region.

As of April 2013, the HD version of TV Pública Digital was distributed by cable operator Telecentro in the Greater Buenos Aires area. Most other cable and DTH operators offering HD services (including Cablevisión, DirecTV, Supercanal, INTV and Dibox operators) were only retransmitting (in one of their special- events HD channels) domestic soccer league games and other major sporting events broadcast live on weekends by TV Pública Digital HD. Mobile TV distribution As of April 2013, TV Pública was simulcasting a mobile DTT version of its channel using the 1-Seg standard on the 23.31 UHF channel of Argentina’s DTT network, throughout the national territory. Live online simulcast? Yes. Free of charge, via the broadcaster’s website (http://www.tvpublica.com.ar/vivo). Catch-up TV strategy As of April 2013, TV Pública had built a catch-up TV platform that allowed viewers to watch full past episodes and highlights of most of its programs broadcast as early as the previous day and as far back as 12 months. Such programming was available, free of

charge and in varying SD and HD qualities, through the station’s own website (in a separate section called “Mediateca”), and only partially available on the broadcaster’s YouTube online channel. International As of April 2013, TV Pública Digital was distributed by one cable distribution operator in Chile (TV Red) and another one in Peru (Cable Perú). Social networking Facebook; Twitter; YouTube (95,700 subs as of April 2013). presence Source: Dataxis

1.2.4. Canal 9

Table 4. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 9. Argentina, 2013.

Broadcaster profile

Station name Telearte S.A. (best known as: Canal 9). Owner Albavisión (controlled by Mexican entrepreneur Remigio Ángel González González). Programming focus In 2007, following the arrival of new owners, Canal 9 made the decision to broadcast mainly canned telenovelas produced elsewhere in Latin America, as well as movies. The company argued that this was a temporary strategy designed to lower costs and improve its financial position. While unambitious from an own-content production perspective, the strategy still allowed Canal 9 to outperform audience ratings drew by América TV. Starting in 2010, Canal 9 began to produce some of its own content and to show live domestic soccer league games produced by TV Pública. 2012 TV ratings 4.7 points (3rd spot behind Telefe and El Trece). Analog terrestrial FTA Greater Buenos Aires area (AMBA). coverage Picture definition SD + HD (1080i). HD strategy Canal had begun broadcasting an HD version of its channel (“Canal 9 HD”) on DTT in 2011. However, as of April 2013, only a limited portion of the network’s programming was being actually shown in native HD, such as the studio show “Bendita TV”. Much of the rest of the programming shown on Canal 9 HD consisted of a native SD feed upscaled to HD. DTT distribution Canal 9 was assigned UHF channel 35 of the DTT spectrum for the AMBA region by the Argentine Government. As of April 2013, the network was simulcasting two DTT channels on this Mux: an HDTV and a 1-Seg version. The Mux was being broadcast from multiple transmitters belonging to the state-owned infrastructure deployed as part of the TDA project, located in downtown Buenos Aires and in the Greater Buenos Aires area. Distribution on Pay-TV As one of the five FTA TV channels broadcasting in the AMBA

platforms region, Canal 9 was “must-carried” by all the local cable and the two DTH (DirecTV and INTV) operators offering video services in that area. Additionally, a satellite feed was available to pay-TV operators in other Argentine cities. The company’s HD channel (Canal 9 HD) was not being carried by any pay-TV operators. Mobile TV distribution As of April 2013, Canal 9 was simulcasting a mobile DTT version of its channel using the 1-Seg standard on the 35.31 UHF channel of Argentina’s DTT network in the Greater Buenos Aires (AMBA) region. Live online simulcast? No. Catch-up TV strategy As of April 2013, the broadcaster was the only major FTA TV channel in Argentina that did not have a catch-up TV strategy in place. International As of April 2013, Canal 9 was distributed by a single pay-TV distribution network outside Argentina: DTH operator DirecTV, only in neighboring Uruguay. Social networking Facebook; Twitter. presence Source: Dataxis

1.2.5. América TV

Table 5. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of América TV. Argentina, 2013.

Broadcaster profile

Station name América 2 (aka: América TV). Owner Uno Medios Group (aka: Grupo Vila-Manzano). Programming focus Of the four major privately owned Argentine TV channels, América was the one typically recording the lowest TV ratings, only occasionally managing to match the audience level of its nearest rival, Canal 9. The company based the bulk of its programming on live studio and TV gossip shows, mainly through partnerships with independent production companies. It also featured two daily editions of a news TV program. 2012 TV ratings 4.3 points (4th spot). Analog terrestrial FTA Although the broadcaster was originally authorized to operate coverage only in the city of La Plata, capital city of the Buenos Aires province, its main television studios were located in the City of Buenos Aires. America’s analog FTA transmission infrastructure was located in Florencio Varela (halfway between La Plata and Buenos Aires), which allowed the broadcaster’s airwaves to reach both major cities. Picture definition SD + HD (1080i). HD strategy Technically, as of April 2013 América had an HD version of its channel actively transmitting on DTT. However, such broadcast

actually consisted of a standard definition (SD) digital channel broadcast on an HD channel. The company had not started native HD production for any programs and had not publicly indicated future plans to do so. DTT distribution América was assigned UHF channel 36 of the DTT spectrum for the AMBA region by the Argentine Government. As of April 2013, the network was simulcasting its analog FTA TV channel on two DTT channels on this Mux: an HDTV (albeit native content was still SD) and a 1-Seg version. A third, SD DTT channel (36.03) on this Mux was being used to simulcast a sister pay-TV news channel, called América 24. The Mux was being broadcast from multiple transmitters belonging to the state-owned infrastructure deployed as part of the TDA project, located in downtown Buenos Aires and in the Greater Buenos Aires area. Distribution on Pay-TV As one of the five FTA TV channels broadcasting in the AMBA platforms region, América was “must-carried” by all the local cable and the two DTH (DirecTV and INTV) operators offering video services in that area. Additionally, a satellite feed was available to pay-TV operators in other Argentine cities. Mobile TV distribution As of April 2013, América TV was simulcasting a mobile DTT version of its channel using the 1-Seg standard on the 36.31 UHF channel of Argentina’s DTT network in the Greater Buenos Aires (AMBA) region. Live online simulcast? Yes. Free of charge, via the broadcaster’s website (http://www.america2.multimediosamerica.com.ar/home). The service was only intermittently working at the time this report was compiled. Catch-up TV strategy As of April 2013, América had in place a very basic catch-up TV strategy, which consisted of allowing viewers anywhere in the world to watch short video clips featuring highlights of programs broadcast in recent days. Such content was available – free of charge and in low resolution – through the station’s website. International As of April 2013, “América Internacional” (an international version distribution of the network featuring only live programming broadcast by the station) was distributed by a number of cable and DTH operators in Bolivia, Chile, Costa Rica, Uruguay and Venezuela. Social networking Facebook; Twitter; YouTube (1,263 subs as of April 2013 – no presence new content had been uploaded for over two years). Source: Dataxis

2. Brazil

2.1. Free-to-Air market

2.1.1. Households with TV sets and FTA reception

As of the end of 2012, 97.3% of Brazilian households (or 59.3 million homes) had at least one TV set. By 2018, Dataxis expected this figure to increase to 98.6% of households (64.3 million homes).

Chart 4. Households with TV sets (millions) and penetration over total households (%). Brazil, 2008-2018.

66 99%

64 98% 62 97% 60

58 96%

56 95% 54 94% 52

50 93% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 HHs with TV sets (MM) 54.78 55.95 57.10 58.24 59.26 60.20 61.07 61.91 62.80 63.55 64.30 HHs with TV sets/all HHs 95.1% 95.7% 96.3% 96.9% 97.3% 97.6% 97.8% 98.0% 98.2% 98.5% 98.6%

Source: Dataxis

Brazil had traditionally recorded one of the lowest pay-TV penetration rates in Latin America. However, during a four-year period between 2009 and 2012, the country’s pay-TV sector had experienced one of the world’s most vigorous growth rates. As a consequence, in 2011 Brazil stopped being the market exhibiting the lowest penetration of pay TV among Latin America’s top seven markets, surpassing Peru for the first time. Still, at the end of 2012, over 72% of Brazilian TV households were still not subscribed to any legal pay-TV system.

That figure was projected to fall dramatically over the next six years, as the strong ongoing trend of pay-TV service uptake continued and the World Cup 2014 and 2016 Olympics – both to be staged in Brazil – were expected to generate even more demand. By 2018, Dataxis forecast that the percentage of TV households that won’t be subscribing to any form of genuine pay-TV service will be 29.9%.

A large number of households in Brazil (estimated around 17 million homes as of the end of 2012) were receiving analog and digital satellite FTA transmissions in the C- band. Several of the country’s national and regional FTA TV channels were distributed unencrypted to regional headends via Embratel’s Star One C2 and Brasilsat B4 satellites. In a country with vast areas of land outside the reach of terrestrial TV infrastructure, this had created a situation where millions of Brazilian had bought a large, C-band dish antenna and pointed it towards these or similar satellites in order to receive a relatively wide range of FTA TV (including HD content) and radio channels.

Chart 5. Households with FTA (millions) and penetration over total households with TV sets (%). Brazil, 2008-2018.

60 100% 90% 50 80% 70% 40 60% 30 50% 40% 20 30% 20% 10 10% - 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FTA TV HHs (MM) 48.39 48.48 47.29 45.38 42.92 40.09 36.28 32.55 28.45 23.95 19.25 FTA HHs/HHs with TV sets 88.3% 86.7% 82.8% 77.9% 72.4% 66.6% 59.4% 52.6% 45.3% 37.7% 29.9%

Source: Dataxis

2.1.2. FTA revenues

The Brazilian FTA TV sector raised most of its revenue from advertising sales. The share of FTA TV over total advertising expenditure in the country grew uninterruptedly between 2008 and 2012, when it reached nearly two-thirds of overall ad spend.

Measured in US Dollars, FTA TV ad revenue actually declined between 2011 and 2012. However, this was due to a controlled devaluation on the Real carried out by the Brazilian Government in 2012 and – measured in local currency terms – revenues grew by 8.3%, from R$18 billion to R$19.5 billion.

In 2012, Brazil’s main FTA broadcaster, Rede Globo, became the world’s second- largest TV company in terms of revenue, trailing only USA-based ABC and displacing another American network (CBS) from the second position.

Chart 6. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Brazil, 2008-2012.

25,000 70%

20,000 65%

15,000 60% 10,000

55% 5,000

0 50% 2008 2009 2010 2011 2012 Local Currency 12,605.2 13,569.3 16,498.7 18,011.1 19,511.3 USD 7,892.8 6,918.6 9,131.0 11,428.9 9,675.8 % FTA/Total 58.8% 60.9% 62.9% 63.3% 64.7%

Source: Dataxis

2.2. Distribution strategies of main broadcasters

The Brazilian FTA market was regulated by the Ministry of Communications and the National Telecommunications Agency (Anatel). In Brazil, there were seven national FTA TV broadcasters operating analogically in the VHF radiofrequency band, using the Pal- M standard. Of these, two were public broadcasters and five were privately run.

2.2.1. Rede Globo

Table 6. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Rede Globo. Brazil, 2013.

Broadcaster profile

Station name Rede Globo. Owner Organizações Globo (Marinho family). Programming focus The broadcaster had historically led the country’s TV ratings, by large margins. It specialized in the production of very successful soap operas, which were also exported. Globo also owned the TV rights for all teams competing in the Brazilian top-tier soccer league, as well as for Formula 1 motor racing. By 2012, the company was producing an average of 2,500 hours of

entertainment programming and 1,800 hours of TV journalism a year. 2012 TV ratings 15.5 points (1st spot). Analog terrestrial FTA Rede Globo was headquartered in Rio de Janeiro. The station coverage actually produced two different main FTA TV feeds: one for Rio de Janeiro and another one for Sao Paulo. Using these two feeds as the “backbone” of its national programming, analog broadcasting extended nationwide through five Globo-owned FTA TV channels (TV Globo Rio de Janeiro, TV Globo Sao Paulo, TV Globo Minas, TV Globo Brasilia and TV Globo Nordeste) and 117 affiliated stations distributed across the nation. Picture definition SD + HD (1080i). HD strategy Globo first started buying HD production equipment in 1995. During the 1998 World Cup, the broadcaster showcased the technology to a selected group of people, who were shown a live match in HD. However, it took nearly a decade following that event for the first official HD broadcast of a Globo program (an episode of the “Duas Caras” soap opera) to take place. This was in December 2007, following the inauguration of the first Brazilian DTT transmitter in the Sao Paulo area. As of April 2013, the station was broadcasting tens of hours per week of HD programming (notably still excluding TV newscasts) through its standalone HD channel, “Globo HD”. DTT distribution Using its own transmission infrastructure (and that of its affiliated stations), Globo was actively broadcasting a DTT version of its analog TV channel in approximately 85 of the over 450 cities and towns that were covered by ISDB-T transmissions in Brazil as of April 2013. In some of those transmissions (and for viewers with digital receiving devices equipped with the Ginga middleware), Globo was offering interactive service for some of its shows. The broadcaster had been assigned the following UHF channels, including frequencies assigned to Globo subsidiaries and affiliated stations:

UHF DTT broadcast area DTT broadcast area channel (operational) (not yet launched as of April 2013) 14 Rio Branco, Porto Velho, Brasileia, Ariquemes Juiz de Fora 15 Manaus Ji-Parana 16 Luziania, Sao Jose dos Campos 17 Curuaru, Boa Vista, Itanhaem 18 Sao Paulo 19 Joao Pessoa, Santos 21 Brasilia, Maceio, Belem Campina Grande, Cachoeiro de Itapemirim 22 Vitoria Santarem

23 Palmas, Santo Antonio Linhares da Patrulha 26 Teresina, Sao Joao da Boa Vista Araçatuba/Birigui, Barretos, Bauru/Piratininga, Jundiai, Sao Jose do Rio Preto 28 Macapa, Resende, Pindamonhangaba, Sorocaba, Taubate 29 Rio de Janeiro, Codo, Imperatriz, Salvador, Sao Luis, Colatina Cianorte 30 Campo Grande, Araguari, Ponta Pora, Itabuna, Ituiutaba, Uberaba, Teixeira de Freitas, Uberlandia Araxa 31 Presidente Prudente Corumba, Lucas do Rio Verde 32 Cascavel, Guarapuava Caninde de Sao Francisco, Itabaiana, Dracena, Alto Parana 33 Belo Horizonte, Cabo Juazeiro do Norte, Cruz Frio, Caxias do Sul, Alta, Santa Maria Anapolis, Fortaleza, Florianopolis, Aracaju, Joinville 34 Goiania, Aracaju, Porto Joacaba Alegre, Capao da Canoa, Torres, Uruguaiana, Blumenau, Natal 35 Foz do Iguaçu, Novo Santa Rosa Hamburgo, Osorio 36 Recife, Cuiaba, Campos Nova Motum dos Goytacazes 41 Curitiba, Pinhais Altonia 42 Poços de Caldas, Pouso Matao, Valinhos, Ceu Alegre, Varginha, Aguas Azul, Paranavai de Lindoia, Amparo, Araraquara, Campinas, Cravinhos, Franca, Itupeva, Jardinopolis, Limeira, Mogi-Guaçu, Piracicaba, Ribeirao Preto, Sao Carlos, Sertaozinho, Londrina, Mandaguari, Ponta Grossa 43 Campo Mourao

46 Cruzeiro do Sul 52 Mogi das Cruzes

Satellite FTA As of April 2013, Globo was simulcasting an analog satellite FTA TV distribution version of its national feed using the C-band on Embratel’s Star One C2 satellite. The broadcaster was also uplinking both SD and HD unencrypted digital versions of the national feed to the same satellite, which was widely used in Brazil to receive FTA TV programming.

Additionally, in 2012 the company expanded its digital satellite FTA coverage with the re-launch of a platform called “Sat HD Regional” (based on a previous platform called Televisao Digital Rural, or TVDR). Sat HD Regional allowed viewers located not only in rural areas (as the older version did) but also in cities and towns who were already using a satellite dish pointing to the Star One C2 satellite to watch an HD version of the local Globo network. Users needed to buy a STB manufactured by Brazilian firm Elsys, which incorporated a GPS chip (to determine which local Globo feed to decode) and the Irdeto conditional access system (CAS) needed to decrypt the – in this case – encrypted regional HD feeds.

As of April 2013, the platform was available to rural areas and metropolitan users in 62 municipalities of the Parana state, 126 municipalities of Goias, 180 of Rio Grande do Sul and 182 of Minas Gerais. As the service gradually extended to cover all other regional areas attended by Globo, the broadcaster planned to start encrypting its digital national feeds and to stop analog satellite FTA transmissions, forcing viewers to migrate to an “official” Sat HD Regional STB to continue to receive Globo programming. As of April 2013, these STBs were providing access, on top of the local Globo HD programming, to over 80 digital FTA channels, including another four in HD, one in 3D (RedeTV!) and several radio channels – all of them uplinked unencrypted by different Brazilian broadcasters to the Star One C2 satellite. Distribution on Pay-TV As of April 2013, one of the two main national SD FTA feeds of platforms Rede Globo (or, in some cases, a corresponding regional FTA feed) was carried by most pay-TV operators in Brazil. CATV companies were the only type of pay-TV operators that were forced to carry all local FTA analog TV channels available in their respective licensed areas. Broadcasters, in turn, were not allowed to charge CATV operators for carrying their programming. Such obligation did not apply to DTH operators or terrestrial wireless pay-TV systems. Therefore, programming of some of the FTA broadcasters, especially Globo’s local feeds, was not necessarily available in such platforms – at least in the most basic packages. As a technical answer, both Sky and Claro TV (the country’s two largest DTH operators) had developed a hybrid DTH/DTT offering, which consisted of allowing subscribers to their high-end HDTV packages to add an ISDB-T module to their set-top boxes. In theory, such

devices allowed local FTA digital channels (including Globo’s) to be integrated into the operator’s EPG. In practice, there remained some technical glitches that prompted subscribers to report problems regarding synchronization of pay and FTA TV channels into the EPG, which prevented them from recording and – in some cases – even watching the local FTA channels.

In early 2013, Net Serviços, Brazil’s largest cable MSO, began offering new subscribers to even its most basic pay-TV package access to the FTA HD channels already broadcasting in each region, including Globo HD or the station’s affiliated HD network. Unlike the approach originally chosen by some DTH operators, such access was not provided via a hybrid STB and separate UHF antenna but directly routed through the HFC network. Mobile TV distribution As of April 2013, both Globo and most of its affiliated TV stations that were already broadcasting a DTT signal were also simulcasting a mobile version of the channel using the 1-Seg standard in their respective broadcast area. In Brazil there existed a wide range a 1- Seg-compliant mobile handsets, portable TV sets and GPS receivers, which were being used by a growing section of the population to decode digital broadcasts. Live online simulcast? No. Catch-up TV strategy In September 2012, Globo launched a paid-for catch-up TV service called “Globo.TV+”, which was only available in the state of Minas Gerais as of April 2013. A different version of the service, called Globo Mídia, was available nationwide. They were both priced at R$12.90 a month, and they allowed viewers access to past programs from the full Rede Globo broadcast schedule, including episodes of its most popular TV series, soap operas, sports events and TV news clips broadcast as early as the same day and dating back as far as six months. Such programming was available in varying SD and HD qualities through an internet website. In the case of the Globo.TV+ variant only, the service also supported tablet and smartphone access. Additionally, a free version of the Globo.TV service included only short video clips with highlights from some programs originally broadcast both by Rede Globo and some of the basic pay-TV channels owned by Globosat, such as Sport TV, Canal Off, Globo News and Multishow. As part of its wider VOD strategy, Globosat also operated a VOD service called Muu, which as of April 2013 was available to subscribers of the Net, GVT and CTBC pay-TV systems.

International The Globo Group operates an international channel called “TV distribution Globo Internacional”). Launched in 1999, as of April 2013, it was available in 118 countries as a premium, a la carte channel. Distributed via cable, DTH and IPTV pay-TV platforms, it had over 620,000 subscribers according to the company. Social networking Facebook; Twitter. Source: Dataxis

2.2.2. Rede Record

Table 7. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Rede Record. Brazil, 2013.

Broadcaster profile

Station name Rede Record. Owner Edir Macedo (founder of the Universal Church of the Kingdom of God (Igreja Universal do Reino de Deus) whose bishops run the broadcaster. Programming focus Record produced soap operas, entertainment and news TV programs. In 2009 Record started producing its own fictional series. As of April 2013, the broadcaster also held the FTA TV rights for popular US series such as CSI (Las Vegas, Miami and New York), Dr House, Grimm and Smash. Record and SBT had traditionally competed for the second spot in the national battle for TV ratings. 2012 TV ratings 6.8 points (2nd spot behind Globo). Analog terrestrial FTA Rede Record was headquartered in Sao Paulo and reached large coverage areas of the country via 13 own FTA TV stations and 96 affiliated companies, which retransmitted the bulk of the programming produced by the Sao Paulo station. Picture definition SD + HD (1080i). HD strategy As of April 2013, Rede Record was simulcasting practically all of its programming in HD quality (including news TV material) through its “Record HDTV” channel, which was available in both DTT and digital satellite FTA TV platforms, and carried by at least a couple of pay-TV operators in Brazil. DTT distribution Using its own transmission infrastructure (and that of its affiliated stations), Record was actively broadcasting a DTT version of its analog TV channel in approximately 35 of the over 450 cities and towns that were covered by ISDB-T transmissions in Brazil as of April 2013. In some of those transmissions (and for viewers with digital receiving devices equipped with the Ginga middleware), Record was offering interactive service for some of its shows. The broadcaster had been assigned the following UHF channels, including frequencies assigned to Record subsidiaries and affiliated stations:

UHF DTT broadcast area DTT broadcast area channel (operational) (not yet launched as of April 2013) 14 Franca 17 Joao Pessoa, Manaus 18 Goiania

20 Sao Paulo 21 Salvador, Porto Alegre 22 Belem Feira de Santana 23 Brasilia 26 Aurora 27 Bauru/Piratinga 28 Belo Horizonte, Araguari, Piracicaba, Campinas, Itupeva, Ribeirao Preto, Sao Uberlandia Carlos, Itajai 30 Florianopolis, Porto Velho Blumenau, Joinville 32 Campo Grande, Fortaleza, Aracaju, Natal 33 Santos 34 Teresina, Curitiba, Cornelio Procopio, Pinhais 35 Aracaju 36 Sao Luis Rio Branco 38 Cuiaba, Vitoria, Toledo Campos dos Goytacazes 39 Rio de Janeiro, Recife 42 Sao Jose do Rio Preto Araçatuba/Birigui, Sao Jose dos Campos 43 Maceio Presidente Prudente, Taubate

Satellite FTA As of April 2013, Record was simulcasting an analog satellite FTA distribution TV version of its Sao Paulo feed using the C-band on Embratel’s Star One C2 satellite. The broadcaster was also uplinking an unencrypted digital HD version of the channel (Record HDTV) to the same satellite, which was widely used throughout Brazil and even in neighboring countries to receive FTA TV programming from a range of Brazilian TV and radio broadcasters. Distribution on Pay-TV As of April 2013, either the national or a corresponding regional SD platforms FTA feed of Rede Record was carried by most pay-TV operators in Brazil. CATV companies were the only type of pay-TV operators that were forced to carry all local FTA analog TV channels available in their respective licensed areas. Broadcasters, in turn, were not allowed to charge CATV operators for carrying their programming. Such obligation did not apply to DTH operators or terrestrial wireless pay-TV systems. Therefore, programming of some of the local FTA broadcasters was not necessarily available in such platforms – at least in the most basic packages. As a technical answer, both Sky and Claro TV (the country’s two largest DTH operators) had developed a hybrid DTH/DTT offering, which consisted of allowing subscribers to their high-end HDTV packages to add an ISDB-T module to their set-top boxes. In theory, such devices allowed local FTA digital channels (including Record’s) to be integrated into the operator’s EPG. In practice, there remained some technical glitches that prompted subscribers to report problems regarding synchronization of pay and FTA TV channels

into the EPG, which prevented them from recording and – in some cases – even watching the local FTA channels. In early 2013, Net Serviços, Brazil’s largest cable MSO, began offering new subscribers to even its most basic pay-TV package access to the FTA HD channels already broadcasting in each region, including Record HDTV or the station’s affiliated HD network. Unlike the approach originally chosen by some DTH operators, such access was not provided via a hybrid STB and separate UHF antenna but directly routed through the HFC network. Record HD was also carried by a second pay-TV provider, Telefónica Group’s Vivo TV. Mobile TV distribution As of April 2013, both Rede Record and most of its affiliated TV stations that were already broadcasting a DTT signal were also simulcasting a mobile version of the channel using the 1-Seg standard in their respective broadcast area. In Brazil there existed a wide range a 1-Seg-compliant mobile handsets, portable TV sets and GPS receivers, which were being used by a growing section of the population to decode digital broadcasts. Live online simulcast? No. Catch-up TV strategy As of April 2013, Rede Record had built a basic catch-up TV platform, which allowed viewers to watch mainly short (two-to- three-minute long) online video clips from the broadcaster’s newscasts and general-interest TV shows. The video archive contained a selection of material from programs broadcast as early as the previous day and as far back as over 12 months. Such programming was available, free of charge and in SD quality, through the station’s own website (http://videos.r7.com/). International The broadcaster operated an international channel called “Record distribution Internacional”, which featured a selection of Rede Record’s most popular TV content (much of it retransmitted live) and was mainly targeted at Brazilians living abroad and at the Portuguese TV market. As of April 2013, it was available in over 150 countries, distributed via cable, DTH and IPTV pay-TV platforms, as well as a terrestrial FTA TV channel in parts of Africa. In a number of European markets, the channel was included in the basic pay-TV package of certain operators, such as DTH provider Sky in the UK. The channel reached the European market through four broadcast satellites: the Astra 2, Hispasat 1C, Eurobird 1 and Atlantic Bird 1. For the Africa region, the channel was uplinked to the Intelsat 907 and Eutelsat W4 satellites. Additionally, in Africa the network was also distributed as a terrestrial FTA channel, for which it owned and operated over a dozen transmission sites and several TV local studios. In Asia, the channel was uplinked to the Measat-3 satellite. In North America, Record Internacional was redistributed (downlinked from the Intelsat 806 and an EchoStar satellite) by US pay-TV companies Comcast and Dish Network. Social networking Facebook; Twitter; Orkut. Source: Dataxis

2.2.3. Rede Bandeirantes

Table 8. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Band. Brazil, 2013.

Broadcaster profile Station name Rede Bandeirantes (aka: Band). Owner Grupo Bandeirantes de Communicação (Saad family). Programming focus Headquartered in Sao Paulo, Band’s programming included a mixture of US TV series (The Simpsons, The Walking Dead, The Sopranos, Futurama), live sports coverage (the Izod Indycar Series), co-produced TV series (Agora é Tarde, CQC) and news TV programming. It was the fourth most-watch FTA network in the country. 2012 TV ratings 2.4 points (4th spot). Analog terrestrial FTA The company offered coverage to large areas of Brazil via 15 coverage regional FTA TV stations and 15 affiliated channels, which retransmitted the bulk of the programming produced by the Sao Paulo station and mixed it with locally produced content, mainly news TV. Measuring 212m tall, the Sao Paulo transmission tower was Latin America’s tallest FTA transmission antenna. Picture definition SD + HD (1080i). HD strategy As of April 2013, Bandeirantes was simulcasting most of its programming in HD quality through its “Band HD” channel, which was available in both DTT and digital satellite FTA TV platforms, and carried by at least five pay-TV operators in Brazil. During the 2006 Soccer World Cup, a sister pay-TV channel controlled by the Bandeirantes Group (BandSports) became the first Brazilian TV network to broadcast a World Cup game in high definition. DTT distribution Using its own transmission infrastructure (and that of its affiliated stations), Band was actively broadcasting a DTT version of its analog TV channel in approximately 30 of the over 450 cities and towns that were covered by ISDB-T transmissions in Brazil as of April 2013. In some of those transmissions (and for viewers with digital receiving devices equipped with the Ginga middleware), Band was offering interactive service for some of its shows. The broadcaster had been assigned the following UHF channels, including frequencies assigned to Band subsidiaries and affiliated stations:

UHF DTT broadcast area DTT broadcast area channel (operational) (not yet launched as of April 2013) 16 Vitoria, Campinas, Piracicaba Itupeva, Jardinopolis,

Ribeirao Preto, Sao Carlos 17 Uberaba, Uberlandia 18 Franca 19 Presidente Prudente 20 Belo Horizonte, Recife 21 Campo Grande 22 Manaus 23 Sao Paulo, Pindamonhangaba, Santos, Taubate 24 Araçatuba/Birigui 26 Brasilia 28 Foz do Iguaçu 30 Aracaju, Londrina, Goiania Mandaguari 32 Porto Alegre Florianopolis 35 Rio de Janeiro, Fortaleza, Belem 36 Cascavel Santarem 38 Curitiba, Pinhais 39 Maceio 41 Campos do Jordao Sorriso, Cuiaba, Primavera do Leste 43 Aracaju 46 Salvador 56 Sao Jose dos Campos Sao Luis

Satellite FTA As of April 2013, Band was simulcasting an analog satellite FTA distribution TV version of its national feed using the C-band on Embratel’s Star One C2 satellite. The broadcaster was also uplinking both SD and HD unencrypted digital versions of the national feed to the same satellite, which was widely used throughout Brazil and even in neighboring countries to receive FTA TV programming from a range of Brazilian TV and radio broadcasters. Distribution on Pay- As of April 2013, either the national or a corresponding regional TV platforms SD FTA feed of Rede Band was carried by most pay-TV operators in Brazil. CATV companies were the only type of pay- TV operators that were forced to carry all local FTA analog TV channels available in their respective licensed areas. Broadcasters, in turn, were not allowed to charge CATV operators for carrying their programming. Such obligation did not apply to DTH operators or terrestrial wireless pay-TV systems. Therefore, programming of some of the local FTA broadcasters was not necessarily available in such platforms – at least in the most basic packages. As a technical answer, both Sky and Claro TV (the country’s two largest DTH operators) had developed a hybrid DTH/DTT offering, which consisted of allowing subscribers to their high-end HDTV packages to add an

ISDB-T module to their set-top boxes. In theory, such devices allowed local FTA digital channels (including Band’s) to be integrated into the operator’s EPG. In practice, there remained some technical glitches that prompted subscribers to report problems regarding synchronization of pay and FTA TV channels into the EPG, which prevented them from recording and – in some cases – even watching the local FTA channels. In early 2013, Net Serviços, Brazil’s largest cable MSO, began offering new subscribers to even its most basic pay-TV package access to the FTA HD channels already broadcasting in each region, including Band HD or the station’s affiliated HD network. Unlike the approach originally chosen by some DTH operators, such access was not provided via a hybrid STB and separate UHF antenna but directly routed through the HFC network. Band HDTV was also carried by four other pay-TV providers in Brazil: Telefónica Group’s Vivo TV, ViaCabo, Cabo Telecom and TV Nordeste. Mobile TV distribution As of April 2013, both Band and most of its affiliated TV stations that were already broadcasting a DTT signal were also simulcasting a mobile version of the channel using the 1-Seg standard in their respective broadcast area. In Brazil there existed a wide range a 1-Seg-compliant mobile handsets, portable TV sets and GPS receivers, which were being used by a growing section of the population to decode digital broadcasts. Live online simulcast? Yes – partial. Internet users in Brazil and globally were able to watch free of charge a live streaming version of a selection of Rede Band’s live, studio programming, including newscasts, via the broadcaster’s website (http://www.band.uol.com.br/tv/), which had been developed in partnership with Brazilian ISP and content provider UOL. Catch-up TV strategy Rede Band had developed a catch-up TV platform that allowed viewers to watch short clips (one-to-three-minute long), full programming blocks (10-to-16-minute long) and, in a few instances, full-episode online video versions from the broadcaster’s main programs and live shows. The video archive contained a selection of material from programs broadcast as early as the previous day and usually as far back as one or two months, although in some cases this online availability period could extend for over 12 months. Such programming was available, free of charge and in SD quality, through the station’s own website (http://videos.band.uol.com.br/).

International The broadcaster operated an international pay-TV channel called distribution “Band Internacional”, which featured a selection of Rede Band’s most popular audiovisual material and was mainly targeted at Brazilians living abroad. The channel was retransmitting its original programming abroad during the same day that programs were broadcast in Brazil. Launched in 2007 in the US market, where it started to be distributed by DTH operator Dish Network, Band Internacional was later expanded to the Angolan market (2009) and to Paraguay (2011). Social networking Facebook; Twitter. Source: Dataxis

2.2.4. RedeTV!

Table 9. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, 3D, catch-up TV and international distribution strategies of RedeTV! Brazil, 2013.

Broadcaster profile Station name RedeTV! Owner Grupo TeleTV (Dallevo family). Programming focus Rede TV! was headquartered in Osasco, in the Greater Sao Paulo. Its programming was focused on content targeted to specific segments, with comedy, talk shows, women’s shows and news programs among its regular formats. Approximately 70% of its programs were live TV productions. In April 2013, the network showed coverage of the Summer X Games event staged in Foz do Iguaçu, Brazil. Earlier, the company had witnessed relatively high viewing figures through for its Brazilian version broadcast of Ugly Betty. Still, annual 2012 audience ratings showed that RedeTV! was the least watched of the five large commercial national FTA TV networks operating in Brazil. This was partly explained by the fact that the company was the newest of the five, having been launched in November 1999. 2012 TV ratings 1.2 points (5th spot). Analog terrestrial FTA The FTA network was broadcasting in parts of 25 of the 26 coverage Brazilian Federal states. It was doing so through five subsidiary TV stations (located and transmitting in Sao Paulo, Rio de Janeiro, Belo Horizonte, Recife and Fortaleza) and 40 affiliated regional FTA TV channels. Picture definition SD + HD (1080i) + 3D. HD + 3D strategy As of April 2013, the broadcaster was simulcasting its entire weekly programming schedule in native HD quality through its “RedeTV! HD” channel, which was available in both DTT and digital satellite FTA TV platforms, and carried by at least four pay-TV operators in Brazil. To support this strategy, as of 2012 the Sao Paulo TV station was equipped with 120 HD cameras

and 50 HD editing suites. This prompted the station to claim, also in 2012, that it was the world’s only FTA TV station to produce (and not just broadcast) all content in HD. Additionally, in May 2010 the company also began simulcasting a 3D version of its HD channel, which the station also claimed was a “world first” in the FTA TV industry. Called “RedeTV! 3D” and only partially mirroring its HD programming in 3D, the channel was available in both DTT and digital satellite FTA TV platforms, but was not yet carried by any known pay-TV operators. DTT distribution Using its own transmission infrastructure (and that of its affiliated stations), RedeTV! was actively broadcasting a DTT version of its analog TV channel in seven of the over 450 cities and towns that were covered by ISDB-T transmissions in Brazil as of April 2013. In some of those transmissions (and for viewers with digital receiving devices equipped with the Ginga middleware), RedeTV! was offering interactive service for some of its shows. The broadcaster had been assigned the following UHF channels, including frequencies assigned to its subsidiaries and affiliated stations:

UHF DTT broadcast area DTT broadcast area channel (operational) (not yet launched as of April 2013) 16 Porto Velho 19 Recife 21 Rio de Janeiro 23 Joao Pessoa 25 Belo Horizonte 26 Porto Alegre 28 Brasilia 29 Sao Paulo 34 Fortaleza 38 Taubate 40 Santa Ines 46 Cuiaba 48 Araçatuba/Birigui

Satellite FTA As of April 2013, RedeTV! was simulcasting an analog satellite distribution FTA TV version of its national feed using the C-band on Embratel’s Star One C2 satellite. The broadcaster was also uplinking an SD, an HD and a 3D unencrypted digital versions of the national feed to the same satellite, which was widely used throughout Brazil and even in neighboring countries to receive FTA TV programming from a range of Brazilian TV and radio broadcasters. Distribution on Pay- As of April 2013, either the national or a corresponding regional TV platforms SD FTA feed of RedeTV! was carried by most pay-TV operators in Brazil. CATV companies were the only type of pay-TV operators that were forced to carry all local FTA analog TV

channels available in their respective licensed areas. Broadcasters, in turn, were not allowed to charge CATV operators for carrying their programming. Such obligation did not apply to DTH operators or terrestrial wireless pay-TV systems. Therefore, programming of some of the local FTA broadcasters was not necessarily available in such platforms – at least in the most basic packages. As a technical answer, both Sky and Claro TV (the country’s two largest DTH operators) had developed a hybrid DTH/DTT offering, which consisted of allowing subscribers to their high-end HDTV packages to add an ISDB-T module to their set-top boxes. In theory, such devices allowed local FTA digital channels (including RedeTV!’s) to be integrated into the operator’s EPG. In practice, there remained some technical glitches that prompted subscribers to report problems regarding synchronization of pay and FTA TV channels into the EPG, which prevented them from recording and – in some cases – even watching the local FTA channels.

In early 2013, Net Serviços, Brazil’s largest cable MSO, began offering new subscribers to even its most basic pay-TV package access to the FTA HD channels already broadcasting in each region, including RedeTV! HD or the station’s affiliated HD network. Unlike the approach originally chosen by some DTH operators, such access was not provided via a hybrid STB and separate UHF antenna but directly routed through the HFC network. RedeTV! HD was also carried by at least three other pay-TV providers in Brazil: Telefónica Group’s Vivo TV, ViaCabo and Cabo Telecom. Mobile TV distribution As of April 2013, RedeTV! was simulcasting a mobile version of its digital FTA channel using the 1-Seg standard in those area where the broadcaster was already operating a DTT station. In Brazil there existed a wide range a 1-Seg-compliant mobile handsets, portable TV sets and GPS receivers, which were being used by a growing section of the population to decode digital broadcasts. Additionally, the company had implemented an online shop through which it was commercializing smartphone applications. Live online simulcast? Yes. Free of charge, via the broadcaster’s website (http://www.redetv.com.br/aovivo/). Very low video resolution. Catch-up TV strategy RedeTV! had developed a catch-up TV platform that allowed viewers to watch short clips and full programming blocks of online video versions from the broadcaster’s main programs and live shows. The video archive contained a selection of material from programs broadcast as early as the past hour and as far back as several months. Such programming was available, free of charge and in SD quality, through the station’s own website (http://www.redetv.com.br/videos/).

International While the company had been rumored in the past to have been distribution working on an international version of its channel (to be possibly named RedeTV! Internacional), as of April 2013 such project had not materialized, which turned RedeTV! into the only large national commercial FTA TV station in Brazil not to have an international distribution strategy in place. Social networking Facebook; Twitter. presence Source: Dataxis

2.2.5. SBT

Table 10. Analog FTA, DTT, digital satellite FTA, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of SBT. Brazil, 2013.

Broadcaster profile

Station name Sistema Brasileiro de Televisao (aka: SBT). Owner Grupo Silvio Santos (Abravanel family). Programming focus Headquartered in Sao Paulo, SBT’s main programming focus was on international TV series and Hollywood movies. The channel also featured regular newscasts and the long-running Sunday TV show “Programa Silvio Santos”, presented by the owner of the network since the 1960s. Although in the past SBT was strongly focused on sports, such content had been removed from the company’s offer. The broadcaster had an ongoing distribution deal with Mexican TV group Televisa, through which SBT was offering reruns of a number of Mexican soap operas. SBT and Rede Record have traditionally competed for the second spot in the national battle for TV ratings. 2012 TV ratings 5.4 points (3rd spot behind Globo and Record). Analog terrestrial FTA SBT was broadcasting nationwide through nine subsidiary FTA TV coverage stations (located in Sao Paulo, Rio de Janeiro, Brasilia, Jau, Ribeirao Preto, Aracatuba, Belem, Porto Alegre and Nova Friburgo) and 99 affiliated channels. Picture definition SD + HD (1080i). HD strategy As of April 2013, SBT was simulcasting only a small portion of its programming (especially shows broadcast in the evenings and primetime) in native HD quality. It was doing so through its “SBT HD” channel, which was available in both DTT and digital satellite FTA TV platforms, and carried by at least two pay-TV operators in Brazil. DTT distribution Using its own transmission infrastructure (and that of its affiliated stations), SBT was actively broadcasting a DTT version of its analog TV channel in approximately 20 of the over 450 cities and towns that were covered by ISDB-T transmissions in Brazil as of

April 2013. In some of those transmissions (and for viewers with digital receiving devices equipped with the Ginga middleware), SBT was offering interactive service for some of its shows. The broadcaster had been assigned the following UHF channels, including frequencies assigned to SBT subsidiaries and affiliated stations:

UHF DTT broadcast area DTT broadcast area channel (operational) (not yet launched as of April 2013) 19 Maceio 20 Goiania 21 Apucarana 23 Varginha Londrina 24 Rio de Janeiro, Ribeirao Preto Brasilia 25 Salvador 26 Belem, Alta Floresta 28 Sao Paulo, Teresina, Campo Grande Porto Alegre 30 Campinas Piracicaba 31 Joao Pessoa 32 Ituiutaba, Juiz de Fora 34 Manaus Dourados, Araçatuba/Birigui 35 Recife, Sorocaba 36 Belo Horizonte Aracaju, Porto Velho 38 Sao Luis 39 Curitiba, Pinhais Sobral, Foz do Iguaçu 42 Vitoria 45 Cuiaba, Santos Pindamonhangaba 46 Florianopolis Taubate, Lages 57 Cascavel

Satellite FTA As of April 2013, SBT was simulcasting an analog satellite FTA TV distribution version of its national feed using the C-band on Embratel’s Star One C2 satellite. The broadcaster was also uplinking an SD and an HD unencrypted digital versions of the TV channel to the same satellite, which was widely used throughout Brazil and even in neighboring countries to receive FTA TV programming from a range of Brazilian TV and radio broadcasters. Distribution on Pay-TV As of April 2013, either the national or a corresponding regional platforms SD FTA feed of SBT was carried by most pay-TV operators in Brazil. CATV companies were the only type of pay-TV operators that were forced to carry all local FTA analog TV channels available in their respective licensed areas. Broadcasters, in turn, were not allowed to charge CATV operators for carrying their programming. Such obligation did not apply to DTH operators or terrestrial wireless pay-TV systems. Therefore, programming of some of the local FTA broadcasters was not necessarily available

in such platforms – at least in the most basic packages. As a technical answer, both Sky and Claro TV (the country’s two largest DTH operators) had developed a hybrid DTH/DTT offering, which consisted of allowing subscribers to their high-end HDTV packages to add an ISDB-T module to their set-top boxes. In theory, such devices allowed local FTA digital channels (including SBT’s) to be integrated into the operator’s EPG. In practice, there remained some technical glitches that prompted subscribers to report problems regarding synchronization of pay and FTA TV channels into the EPG, which prevented them from recording and – in some cases – even watching the local FTA channels. In early 2013, Net Serviços, Brazil’s largest cable MSO, began offering new subscribers to even its most basic pay-TV package access to the FTA HD channels already broadcasting in each region, including SBT HD or the station’s affiliated HD network. Unlike the approach originally chosen by some DTH operators, such access was not provided via a hybrid STB and separate UHF antenna but directly routed through the HFC network. SBT HD was also carried by at least one other pay-TV provider in Brazil: Telefónica Group’s Vivo TV. Mobile TV distribution As of April 2013, both SBT and most of its affiliated TV stations that were already broadcasting a DTT signal were also simulcasting a mobile version of the channel using the 1-Seg standard in their respective broadcast area. In Brazil there existed a wide range a 1-Seg-compliant mobile handsets, portable TV sets and GPS receivers, which were being used by a growing section of the population to decode digital broadcasts. Live online simulcast? No. Catch-up TV strategy In 2011, SBT became the first Brazilian FTA TV station to sign an agreement with a smart TV company to have a selection of its digital video archive made available to users of connected devices. Through this deal, some of the most popular past episodes, shows and video highlights of the broadcaster’s programming started to be accessible over the Internet to Sony Bravia TVs and Bravia Blu- ray players used in Brazil, Mexico, Guatemala, Honduras, El Salvador, Costa Rica, Nicaragua, Panama, Colombia, Ecuador, Venezuela, Peru, Bolivia, Chile, Argentina, Uruguay, Paraguay, Trinidad and Tobago, Dominican Republic, Jamaica and Barbados.

In addition, SBT had developed an online catch-up TV platform, which allowed viewers to watch full episodes, short clips and full programming blocks of online video versions from some of the broadcaster’s main programs and live shows. The video archive contained a selection of material from programs broadcast as early as the same day as far back as several months. Such programming was available, free of charge and in SD quality, through the station’s own website (http://www.sbt.com.br/home). International While the broadcaster did not operate (as was the case with distribution competitors Globo, Record and Band) an international TV channel,

SBT was distributing some of its programming abroad. The company had built up and was offering to international content buyers a large catalog that included many of the soap operas and other TV shows that it broadcast in its native Brazil. Social networking Facebook; Twitter. presence Source: Dataxis

3. Chile

3.1. Free-to-Air market

3.1.1. Households with TV sets and FTA reception

As of the end of 2012, 96.5% of Chilean households (or 4.7 million homes) had at least one TV set. Dataxis forecast that, by 2018, this figure would increase to 97.9% of households (5.2 million homes).

Chart 7. Households with TV sets (millions) and penetration over total households (%). Chile, 2008-2018.

6 99%

5 98%

4 97%

3 96%

2 95%

1 94%

- 93% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 HHs with TV sets (MM) 4.29 4.40 4.49 4.59 4.68 4.76 4.84 4.92 5.00 5.08 5.16 HHs with TV sets/all HHs 94.7% 95.3% 95.7% 96.1% 96.5% 96.8% 97.1% 97.3% 97.5% 97.7% 97.9%

Source: Dataxis

Chile ended 2012 with the third-highest penetration of pay-TV services among Latin America’s top seven TV markets – 46.6% of TV households. This left 53.4% of TV households in the country turning to either FTA TV or illegal pay-TV reception. In line with most other countries in the region, total Chilean households relying on illegal pay- TV alternatives plus FTA TV had been steadily declining since 2008, a trend that was expected to continue for the foreseeable future. Dataxis forecast that, by 2018, this market will be reduced to 29.7% of households with TV sets, a phenomenon almost exclusively explained by the continued rise of pay-TV services.

Chart 8. Households with FTA (millions) and penetration over total households with TV sets (%). Chile, 2008-2018.

3.0 70%

2.5 60%

50% 2.0 40% 1.5 30% 1.0 20%

0.5 10%

- 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FTA TV HHs (MM) 2.77 2.67 2.55 2.50 2.50 2.38 2.18 2.02 1.85 1.69 1.53 FTA HHs/HHs with TV sets 64.6% 60.8% 56.7% 54.5% 53.4% 50.1% 45.1% 41.1% 37.0% 33.3% 29.7%

Source: Dataxis

3.1.2. FTA revenues

The Chilean FTA TV market raised revenue from advertising. In 2012, FTA TV was estimated to have attracted 44% of total advertising spend in the country. During that year, FTA TV stations were estimated to have collectively raised USD 624.6 million in advertising revenue, nearly matching the record USD 627.7 million which had been registered in 2011.

Chart 9. FTA TV advertising expenditure and percentage over total ad spend (%). Chile, 2008-2012.

700 60%

600 55% 500 50% 400 45% 300 40% 200

100 35%

0 30% 2008 2009 2010 2011 2012 (est) Local Currency (billions) 248.14 250.38 284.18 295.83 313.786 USD (millions) 480.7 463.3 513.7 627.7 624.6 % FTA/Total 48.4% 51.5% 48.2% 44.9% 44%

Source: Dataxis

3.2. Distribution strategies of main broadcasters

The Chilean FTA TV market was regulated by the National TV Council (CNTV). The Sub-secretariat of Telecommunications (Subtel) was in charge of setting technical standards and allocating radiofrequency spectrum. In Chile, there were 91 free-to-air TV broadcasters. Six of them operating in the national Capital, Santiago de Chile, offered nationwide coverage thanks to networks of regional stations that either belonged to or were associated with them. Chilean analog TV used the American NTSC standard over the VHF and – in some cases – the UHF frequency bands.

3.2.1. TVN (Televisión Nacional de Chile)

Although TVN was a state-owned broadcaster, it did not receive any financial support from the Government, forcing the company instead to finance itself entirely through advertising or other commercial activities.

Table 11. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of TVN. Chile, 2013.

Broadcaster profile

Station name Televisión Nacional de Chile (aka: TVN). Owner Chilean State.

Programming focus The broadcaster had nine regional offices where local news content was produced. It was the main producer of fictional works in Chile, with an average of four series produced each year, targeted at different segments. This had helped TVN establish itself as a TV content exporter. The broadcaster led TV ratings in 2010, but it subsequently yielded the top spot as it began to face growing competition from rival networks Mega, Chilevisión and Canal 13. 2012 TV ratings 7.6 points (2nd spot). Analog terrestrial FTA Headquartered in Santiago, TVN was broadcasting nationwide coverage through its own transmission infrastructure. Picture definition SD + HD (1080i). HD strategy TVN carried out Chile’s first experimental HD broadcasts in 1999. In 2004, TVN became the first Chilean FTA broadcaster to produce a TV series (“Geografía del Deseo”) in HD. The network’s second phase of experimental HD transmissions took place in 2007, during a Youth Soccer World Cup game. The following year, TVN made the first HD broadcast of a TV series (“Hijos del Monte”). As of April 2013, TVN HD (the HD version of the network) was only accessible to people living in the national Capital, Santiago, via experimental DTT broadcasts. Not all programming was being broadcast in HD, although the proportion of HD content was being gradually invreased. The channel was additionally partially distributed by at least two pay-TV operators in Chile. DTT distribution Chile formally adopted the Brazilian version of the Japanese DTT standard, ISDB-T, in September 2009. The country required a new Law designed to regulate the implementation of DTT. As of April 2013, the Chilean Congress continued to debate about the technical details of such Law, which was delaying an official implementation of the technology. Since 2010, TVN had been transmitting an experimental HD DTT version of its analog FTA channel in the national Capital, Santiago. It was available in the UHF channel 33 of the radiofrequency spectrum. The network was using its own transmission infrastructure, which in 2010 had also been used to carry out Chile’s first experimental 3DTV broadcast. Distribution on Pay-TV In Chile, while they were not legally required to do so, in practice platforms pay-TV operators were carrying most of the main Santiago-based FTA TV channels, including TVE. The channel was included in the basic pay-TV package of, among others, DirecTV, Movistar TV, VTR, Claro TV, TuVes HD, GTD Manquehue and TV Red. Additionally, the HD version of the channel (TVN HD) was distributed by pay-TV operators VTR and GTD Manquehue, although only to Santiago residents. Mobile TV distribution Once the Chilean DTT Law was finalized and FTA broadcasters were granted their respective DTT licenses, it was expected that TVN would launch a mobile TV version of its national feed, based on the 1-Seg standard. Indeed, an experimental version of the channel (TVN Móvil) had been broadcasting as part of the

Santiago DTT trial since 2010. Live online simulcast? Yes. For viewers in Chile, a live online version of the channel was available, free of charge, through the company’s website (http://www.tvn.cl/player/envivo/). For international viewers, the broadcaster was offering a paid-for version of the service. This was commercialized by online TV service provider KyLin through its GuaoTV website (www.guaotv.com). The actual channel used for this online feed was TVN’s international pay-TV channel, “TV Chile”. It could be accessed anywhere in the world as part of Guao TV’s Chile Package (USD 11.99/month), or as part of the Latin America Package (USD 15.99/month). Catch-up TV strategy TVN had developed one of Latin America’s most comprehensive multi-screen catch-up TV strategies by a FTA broadcaster. Full past episodes and TV shows recently broadcast by the network were available for anywhere/anytime reproduction via a multitude of Internet-connected consumer electronic devices, including PCs/laptops, tablets, smart TVs and smartphones. Content was available in SD and, in some cases, in HD resolution, free of charge. For its smart TV distribution, TVN had struck separate deals with three leading brands: Sony (for Bravia devices), LG (for the LG Cinema 3D smart TV line) and Samsung. Past episodes of recent TV programs were usually available to be watched for up to one month following the original TV screening. For Internet- connected computer users, TVN had launched (as a Beta version) its own online catch-up TV player. Called TVN Player (http://www.tvn.cl/player), it included full past episodes of series, reality shows, documentaries and entertainment shows, with individual titles available as soon as the previous day of original broadcast. International TVN was operating an international TV channel called “TV Chile”, distribution launched in 1989. Distributed by Fox Latin American Channels, it featured many of the most popular programs originally produced for the domestic market, which were combined with content produced specifically for an international audience. Six different broadcast satellites were carrying TV Chile, which allowed its footprint to extend throughout the Americas, parts of Europe, North Africa and Australia. It was carried by cable, DTH and IPTV pay-TV platforms in 25 countries. According to the broadcaster, the channel had an international customer base of 11 million subscribers, with 35 million potential viewers. Social networking Facebook; Twitter; YouTube (25,100 subs as of April 2013). presence Source: Dataxis

3.2.2. Canal 13

Table 12. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 13. Chile, 2013.

Broadcaster profile

Station name Canal 13. Owners Grupo Luksic (67%) and Pontifical Catholic University of Chile (33%). Programming focus Following a period of approximately four years of declining fortunes (between 2008 and 2011) during which Canal 13 lost its traditional firm grip as Chile’s most watched FTA TV channel, the broadcaster regained its leading position in 2012. In general terms, the channel relied on canned TV programs, mainly foreign series and soap operas. Several of the exclusive sports TV rights that the broadcaster once enjoyed were subsequently lost to rival networks. Still, the company was able to broadcast major Olympic Games events including London 2012, and Canal 13 was due to share with TVN the TV rights for the Brazil 2014 Soccer World Cup. 2012 TV ratings 8.9 points (1st spot). Analog terrestrial FTA The broadcaster, which as its name suggested operated in coverage channel 13 of the VHF radiofrequency spectrum, was headquartered in Santiago and had nationwide coverage through partnerships with multiple affiliated stations. Picture definition SD + HD (1080i). HD strategy The company started testing HD technology in 2006. While Canal 13 was not the first Chilean FTA broadcaster to launch an HD channel, in November 2009 the company became the first one in the country to show live programming in HD. As of April 2013, “13HD” (the HD version of the network) was still transmitting via experimental DTT broadcasts to people living in the national Capital, Santiago. The HD network was also distributed by at least four pay-TV operators in Chile – the highest pay-TV distribution by an HD FTA TV channel in the country. DTT distribution Chile formally adopted the Brazilian version of the Japanese DTT standard, ISDB-T, in September 2009. The country required a new Law designed to regulate the implementation of DTT. As of April 2013, the Chilean Congress continued to debate about the technical details of such Law, which was delaying an official implementation of the technology. Canal 13 had been simulcasting an experimental HD DTT version of its analog FTA channel in the national Capital, Santiago. “13HD” was available in the UHF channel 24.1 of the radiofrequency spectrum. A second DTT channel (“13C”, in this case in SD and a simulcast of the pay- TV channel by the same name) was available in the 24.2 UHF channel. The network was using its own transmission

infrastructure for DTT distribution. Distribution on Pay-TV In Chile, while they were not legally required to do so, in practice platforms pay-TV operators were carrying most of the main Santiago-based FTA TV channels, including Canal 13. The channel was included in the basic pay-TV package of, among others, DirecTV, Movistar TV, VTR, Claro TV, TuVes HD, GTD Manquehue and TV Red. Additionally, “13HD” was distributed by pay-TV operators Movistar, VTR, GTD Manquehue and Telsur. Mobile TV distribution Once the Chilean DTT Law was finalized and FTA broadcasters were granted their respective DTT licenses, it was expected that Canal 13 would launch a mobile TV version of its national feed, based on the 1-Seg standard. As an alternative, the broadcaster had developed a mobile streaming service that could be accessed via a web page (http://m.13.cl/). With content adapted to suit the small screen size of feature mobile phones and smartphones, the service, named 13 Móvil, included both a live simulcast of the national feed (only available to Chilean residents) and a selection of TV news and other recorded content. Live online simulcast? Yes – free of charge, available only to Internet users located in Chile. The service was accessible via the company’s own website (http://envivo.13.cl/13.php). Catch-up TV strategy As of May 2013, Canal 13 had deployed a catch-up TV strategy that allowed viewers to watch short clips and full past episodes of its most popular TV series, soap operas and TV news clips broadcast as early as the previous day and as far back as 12 months. Such programming was available, free of charge and in varying SD and HD qualities, via two different VOD platforms: the station’s own website and its YouTube online channel. International As of May 2013, the broadcaster did not have an international distribution pay-TV channel featuring a selection of its programming. The company had operated one such channel in the past: it was called “Canal 13 Chile” and it had satellite coverage over the Americas between 1996 and 2001. But the channel was shut down following an internal financial crisis. Social networking Facebook; Twitter; YouTube (41,795 subs as of May 2013). presence Source: Dataxis

3.2.3. Chilevisión

Table 13. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Chilevisión. Chile, 2013.

Broadcaster profile

Station name Chilevisión (aka: CHV). Owner Turner Broadcasting System (a Time Warner subsidiary).

Programming focus Chilevisión’s programming strength was in TV news (Turner operated sister news pay-TV channel CNN Chile in the country) and in live TV shows. The broadcaster, which also produced TV series, had won the TV rights for all soccer games involving the Chilean National Team’s participation in the 2014 World Cup Qualifying campaign. The company was traditionally fourth in TV audience ratings, but starting in 2010 it began to successfully challenge the top broadcasters. In 2011 the network actually won the national TV ratings battle, becoming Chile’s most watched FTA TV station. However, the company was unable to maintain that momentum in 2012. 2012 TV ratings 7.1 points (3rd spot). Analog terrestrial FTA Headquartered in Santiago, Chilevisión operated in channel 11 of coverage the VHF radio spectrum, and had nationwide coverage through agreements with a series of affiliated stations. Picture definition SD + HD (1080i). HD strategy As of April 2013, CHV HD and CHV HD 2 (the HD simulcast and an additional HD channel of the network featuring material previously broadcast by the company) were only accessible to people living in a restricted area of the national Capital, Santiago, via experimental DTT transmissions. None of the channels were yet distributed by pay-TV systems (except for certain special events such as the Viña del Mar Music Festival) and their programming was only partially available in HD quality. The broadcaster had also carried out some of Chile’s first experimental 3DTV broadcasts by a FTA TV channel. DTT distribution Chile formally adopted the Brazilian version of the Japanese DTT standard, ISDB-T, in September 2009. The country required a new Law designed to regulate the implementation of DTT. As of April 2013, the Chilean Congress continued to debate about the technical details of such Law, which was delaying an official implementation of the technology. Since 2010, Chilevisión had been transmitting an experimental HD DTT version of its analog FTA channel in the national Capital, Santiago. It was available in the UHF channel 30 of the radiofrequency spectrum. Using this same UHF channel, the company later added a second experimental HD channel. The network was using its own transmission infrastructure. Distribution on Pay-TV In Chile, while they were not legally required to do so, in practice platforms pay-TV operators were carrying most of the main Santiago-based FTA TV channels, including Chilevisión. The channel was included in the basic pay-TV package of, among others, DirecTV, Movistar TV, VTR, Claro TV, TuVes HD, GTD Manquehue and CMET. Mobile TV distribution Once the Chilean DTT Law was finalized and FTA broadcasters were granted their respective DTT licenses, it was expected that Chilevisión would launch a mobile TV version of its national feed, based on the 1-Seg standard. Live online simulcast? Yes – free of charge, available to Internet users located anywhere in the world. The service (based on the CHV HD version of the

channel) was accessible via the company’s own website (http://www.chilevision.cl/home/senal-online.html). When tested by Dataxis in May 2013 from Buenos Aires, Argentina, the service was not working smoothly, with the video stream frequently “freezing” for periods of up to several minutes at a time. Catch-up TV strategy Chilevisión had developed a catch-up TV platform that allowed viewers to watch short clips and, in some instances, full-episode online video versions from the broadcaster’s main programs and live shows. The video archive contained a selection of material from programs broadcast as early as the previous day and as far back as over 12 months. Such programming was available, free of charge and in SD and HD quality, through the station’s own website (http://www.chilevision.cl). When tested by Dataxis in May 2013 from Buenos Aires, Argentina, the service was not working smoothly, with most VOD video streams frequently “freezing” for periods of up to several minutes at a time. International In 2007, the company launched “Chilevisión Internacional”, an distribution international version of the FTA TV channel. Featuring similar but not identical programming to the Chilean FTA feed, it was distributed by pay-TV operators in Australia and New Zealand. Additionally, Chilevisión Internacional was distributed as a paid-for online TV channel. Priced at approximately USD 10 per month and available anywhere in the world except in the domestic Chilean market, the service also included a VOD feature which gave subscribers access to full past episodes of some of the network’s most popular programs. Social networking Facebook; Twitter. Source: Dataxis

3.2.4. Mega

Table 14. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Mega. Chile, 2013.

Broadcaster profile

Station name Mega (aka: Red Televisiva Megavisión). Owner Bethia Holding (Liliana Solari). Programming focus In 2008 and 2009, Mega was the most popular FTA TV channel in Chile. However, the station found it difficult to maintain that success and had progressively slipped down the national audience ratings. Mega had positioned itself with a strong percentage of canned TV productions, mainly foreign soap operas. In general terms, the channel’s own productions were carried out through the purchase of successful foreign formats, which, in some cases, assumed the joint production with the original rights owner. Traditionally, Mega’s news programs adopted a conservative

editorial line. The network won the domestic TV rights for all 2018 Soccer World Cup qualifiers played by the Chilean National Team, a package that also includes all friendly games played by the team between 2014 and 2018. 2012 TV ratings 6.6 points (4th spot). Analog terrestrial FTA Headquartered in Santiago, Mega operated in channel 9 of the coverage VHF radio spectrum and had nationwide coverage through agreements with a series of affiliated stations. Picture definition SD + HD (1080i). HD strategy The broadcaster started working on HD in 2009. As of April 2013, Mega HD (the HD version of the network) was only accessible to people living in a restricted area of the national Capital, Santiago, via experimental DTT simulcasts. The channel was not yet distributed via pay-TV systems and its programming was only partially available in native HD quality (Mega’s TV newscasts began to air in HD in late 2012). DTT distribution Chile formally adopted the Brazilian version of the Japanese DTT standard, ISDB-T, in September 2009. The country required a new Law designed to regulate the implementation of DTT. As of April 2013, the Chilean Congress continued to debate about the technical details of such Law, which was delaying an official implementation of the technology. Mega had been transmitting an experimental HD DTT version of its analog FTA channel in the UHF channel 27 in the national Capital, Santiago (since 2010). The network was using its own transmission infrastructure. Distribution on Pay-TV In Chile, while they were not legally required to do so, in practice platforms pay-TV operators were carrying most of the main Santiago-based FTA TV channels, including Mega. The channel was included in the basic pay-TV package of, among others, DirecTV, Movistar TV, VTR, Claro TV, TuVes HD, GTD Manquehue and TV Red. Mobile TV distribution Once the Chilean DTT Law was finalized and FTA broadcasters were granted their respective DTT licenses, it was expected that Mega would launch a mobile TV version of its national feed, based on the 1-Seg standard. Live online simulcast? Yes – free of charge, available to Internet users located anywhere in the world. The service was accessible via the company’s own website (http://www.mega.cl/senal-en-vivo/). Catch-up TV strategy As of April 2013, Mega had in place a catch-up TV strategy that consisted of allowing viewers anywhere in the world to watch short video clips featuring highlights of programs broadcast in recent days. Full episodes of certain TV series were also available. All content was accessible – free of charge and in low resolution – through the station’s website (http://www.mega.cl/webtv/videos). International As of April 2013, Mega did not have an international TV channel. distribution Social networking Facebook; Twitter. presence Source: Dataxis

4. Colombia

4.1. Free-to-Air market

4.1.1. Households with TV sets and FTA reception

As of the end of 2012, 98.3% of Colombian households (or 11.7 million homes) had at least one TV set. By 2018, Dataxis forecast that this figure will climb to 99.1% of households (a total of 13 million homes in the country).

Chart 10. Households with TV sets (millions) and penetration over total households (%). Colombia, 2008-2018.

13.5 100%

13.0 99% 12.5 98% 12.0

11.5 97%

11.0 96% 10.5 95% 10.0

9.5 94% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 HHs with TV sets (MM) 10.86 11.07 11.28 11.49 11.71 11.93 12.15 12.37 12.59 12.81 13.03 HHs with TV sets/all HHs 97.5% 97.7% 97.9% 98.1% 98.3% 98.5% 98.7% 98.8% 98.9% 99.0% 99.1%

Source: Dataxis

Colombia ended 2012 with a penetration of pay-TV services of 36.8% of households with TV sets, leaving 63.2% of TV homes in the country turning to FTA TV or illegal connections for their regular TV reception. Among these 7.4 million HHs, there existed an unknown but suspected relatively large number of underreported pay-TV subs in Colombia.

In line with most other countries in the region, total Colombian households relying on FTA and illegal pay-TV alternatives had been slowly declining since 2008, a trend that was expected to continue in the medium term. Dataxis forecast that, by 2018, this market will represent 42.8% of households with TV sets, as the demand for pay-TV services continued to grow.

Chart 11. Households with FTA (millions) and penetration over total households with TV sets (%). Colombia, 2008-2018.

9 80%

8 70% 7 60% 6 50% 5 40% 4 30% 3 20% 2

1 10%

- 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FTA TV HHs (MM) 7.69 7.86 7.77 7.67 7.40 7.11 6.71 6.42 6.13 5.86 5.58 FTA HHs/HHs with TV sets 70.8% 71.0% 68.9% 66.8% 63.2% 59.6% 55.2% 51.9% 48.7% 45.7% 42.8%

Source: Dataxis

4.1.2. FTA revenues

Chart 12. FTA TV advertising expenditure and percentage over total ad spend (%). Colombia, 2008-2012.

1,200 70%

1,000 65% 800

600 60%

400 55% 200

0 50% 2008 2009 2010 2011 2012 Local Currency (billions) 916.86 882.40 984.64 1,082.17 1,106.90 USD (millions) 476.3 407.2 509.8 601.9 603.2 % FTA/Total 66.6% 65.8% 65.5% 66.2% 65.7%

Source: Dataxis

The Colombian FTA TV sector raised most of its revenue from advertising sales. FTA TV attracted the vast majority (nearly 66%) of the country’s total advertising expenditure in 2012. Advertising revenue generated by Colombia’s FTA broadcasters

registered uninterrupted growth in Colombia between 2009 and 2012, when they reached USD 603.2 million.

4.2. Distribution strategies of main broadcasters

The Colombian free-to-air TV market, which used the NTSC standard for analog transmissions, was regulated by the National Television Authority (ANTV). There were five national FTA broadcasters in Colombia. Three of them (Señal Colombia, Canal Institucional and Canal Uno) were state-owned, run by RTVC. The other two (Caracol and RCN) were the country’s dominant, privately run stations.

The country had been analyzing the assignment of a third national commercial TV channel since 2008. The process was suspended in 2010 due to the fact that only one bidder (Planeta) remained after two other participating companies (Prisa and Cisneros) left the bidding process citing modifications in the terms and conditions. However, ANTV announced a new auction in 2012, a process that the regulator estimated would lead to the creation of a third private national network by the second half of 2013. Colombia had enough unused radio spectrum for an eventual fourth national commercial TV channel, but there remained doubts as to how sustainable the country’s advertising ecosystem could prove to support even three national networks.

There also existed seven state-owned regional channels that could only be tuned in locally via analog terrestrial TV, but which were also occasionally available elsewhere courtesy of some pay-TV operators including them in their lineups. There were also several local FTA TV channels. Most of these were not-for-profit local stations, with a notable exception: Bogota’s CityTV, owned by Casa Editorial El Tiempo.

Colombia was one of only a handful of Latin American nations which had not selected the ISDB-T specification for its DTT deployments. In August 2008, the country formally adopted the European DVB-T standard, albeit with the important modification that the system would employ MPEG-4 video compression.

In August 2011, the Colombian Government informed that it was analyzing the possibility of migrating towards DVB-T2, given its better coverage and more efficient use of the available RF spectrum. In December 2011, CNTV (now, ANTV) confirmed that the new version would be adopted. The agency ruled that both DVB-T and “T2” should coexist for three years before DVB-T transmissions would cease. The decision was made to avoid a potential backlash from owners of new DVB-T STBs and integrated TV sets, who would still find that their equipment will no longer be compatible with DTT broadcasts beyond 2014.

Early DTT broadcasts began in 2010 in Colombia, while analog TV switch-off was scheduled for 2019.

4.2.1. Caracol TV

Table 15. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Caracol TV. Colombia, 2013.

Broadcaster profile

Station name Cadena Radial Colombiana de Televisión (aka: Caracol TV). Owner Valórem Group. Programming focus The station relied mainly on own-content production, especially soap operas, which enabled it to export to the region and to the United States. Caracol actually ran a TV channel in the state of Florida, called GenTV and targeted at the Latin community there. The company had obtained TV rights for highly popular sports programming, including all soccer games played by the Colombian National Team and certain UEFA Champions League games.

Caracol TV had traditionally been engaged in a long-standing competition with RCN to determine which of the two rival commercial FTA broadcasters led Colombia’s TV audience ratings. During the 2003-2012 decade, Caracol had emerged as the winning station in six occasions (2003, 2004, 2005, 2008, 2009 and 2012), whereas RCN had taken the top spot in the remaining four calendar years (2006, 2007, 2010 and 2011). 2012 TV ratings 1st spot. Analog terrestrial FTA The broadcaster, which was headquartered in Bogota, had coverage nationwide analog terrestrial FTA TV coverage. Picture definition SD + HD (1080i). HD strategy Caracol had been testing HD broadcasting extensively since 2010. The company was simulcasting an HD version of its national FTA feed (called Caracol HD) in those areas of the country where DTT transmissions had already been launched by a consortium of commercial national broadcasters (CCNP), of which it was one of two major partners. As of April 2013, Caracol HD featured the majority of its programming up-scaled from SD resolution into a 16:9 configuration. The HD channel was also carried by at least four pay-TV operators in Colombia. For special occasions such as during the London 2012 Olympics, the company used its allocated DTT spectrum to operate a second HDTV channel. DTT distribution As of April 2013, the same analog terrestrial TV feed with Caracol Televisión was being simulcasted as an HD channel (named Caracol HD) in the Greater Bogota, Medellin, Cali, Barranquilla, Cucuta, Bucaramanga, Pereira, Manizales, Cartagena and Santa Marta areas. In each of these locations, the DTT channel was broadcast using DVB-T2 transmission equipment that had been deployed by a consortium of commercial national broadcasters (CCNP) jointly set up by Caracol and rival broadcaster RCN to share digital infrastructure costs. DVB-T2 receiving equipment

was becoming increasingly available to the general public in Colombia, with standalone STBs being marketed from USD 79 and OEMs such as Samsung launching their first lines of DVB-T2- compliant integrated digital TV sets. Distribution on Pay-TV As of April 2013, Caracol Televisión was included in the basic platforms video package of practically all pay-TV operators in the country, including Une, DirecTV, Movistar Colombia, Claro TV, Supercable and Global TV Comunicaciones. Additionally, the HD version of the channel (Caracol HD) was distributed by Une, DirecTV, Movistar and Claro TV. Mobile TV distribution Unlike the ISDB-T standard chosen by most Latin American nations to deploy DTT services, the European DVB-T (and “T2”) specification had not been developed with mobility as a main consideration. As a consequence, as of May 2013 Caracol TV had not been adapted for mobile TV reception and the broadcaster had not indicated any intention to move in that direction. Live online simulcast? Yes. For users located in Colombia, Caracol’s live online TV service was free of charge and accessible through the company’s own website (http://www.caracoltv.com/senal-vivo). For international users located anywhere else in the world, there was a paid-for version provided by online TV service provider KyLin through its GuaoTV website (www.guaotv.com). The actual channel used for this online feed was “Caracol TV Internacional”. It could be accessed as part of Guao TV’s Colombia Package, priced at USD 11.99/month, or as part of the Latin America Package, priced at USD 15.99/month. Catch-up TV strategy The broadcaster had implemented a sophisticated VOD offering. Called “Caracol Play”, it consisted of a comprehensive catalog of past and ongoing TV programs originally shown by Caracol, which could be accessed via an Internet-connected computer. Among the content there were popular TV series, soap operas, movies, TV newscasts broadcast earlier in the day and even live events (including soccer World Cup Qualifiers played by Colombia). It was a paid-for service operating under both the subscription (S- VOD) and transactional (T-VOD) modalities. Viewers in Colombia were offered the chance to subscribe to all content for one year for USD 31.50, or to pay individually for each title. For example, Colombian National Team WC Qualifier games cost USD 4.30 each. The service was not available in other countries, although the company had stated its intention to take it international “soon”. Caracol was also planning to extend the list of electronic devices that could be used to access the Caracol Play service, citing smartphones and tablets using the iOS and Android operating systems, as well as different lines of smart TVs, as future compatible video players. International In 2002, the company launched its international pay-TV channel. distribution As of April 2013, Caracol TV Internacional reached over eight million homes through distribution of the channel by DTH, cable and IPTV systems in 26 countries in the Americas and Europe.

Additionally, Caracol was exporting an average of 20,000 hours of original programming per year to over 80 countries. Social networking Facebook; Twitter. presence Source: Dataxis

4.2.2. RCN Televisión

Table 16. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of RCN Televisión. Colombia, 2013.

Broadcaster profile

Station name Radio Cadena Nacional de Televisión de Colombia (aka: RCN Televisión). Owner Ardila Lülle Group. Programming focus RCN’s programming strategy was heavily built around own- content production, especially soap operas, where the company had successfully introduced new ideas in recent years. The broadcaster was also an active exporter of TV content, and had uninterruptedly held the FTA TV rights to show two live Colombian First-Division soccer games per week since 2004. As of 2013, all other live games from this competition (including the most popular ones each week) were shown by Win Sports, a new pay-TV channel jointly owned by RCN and DTH operator DirecTV.

RCN had traditionally been engaged in a long-standing competition with Caracol to determine which of the two rival commercial FTA broadcasters led Colombia’s TV audience ratings. During the 2003-2012 decade, Caracol had emerged as the winning station in six occasions (2003, 2004, 2005, 2008, 2009 and 2012), whereas RCN had taken the top spot in the remaining four calendar years (2006, 2007, 2010 and 2011). 2012 TV ratings 2nd spot (behind Caracol TV). Analog terrestrial The broadcaster, which was headquartered in Bogota, had FTA coverage nationwide analog terrestrial FTA TV coverage. Picture definition SD + HD (1080i). HD strategy RCN had been testing HD broadcasting extensively since 2010. The company was simulcasting an HD version of its national FTA feed (called RCN HD) in those areas of the country where DTT transmissions had already been launched by a consortium of commercial national broadcasters (CCNP), of which it was one of two major partners. As of May 2013, RCN HD featured the majority of its programming in native HD resolution. RCN

HD was also carried by at least three pay-TV operators in Colombia. DTT distribution As of April 2013, the same analog terrestrial TV feed with RCN Televisión was being simulcasted as an HD channel (named RCN HD) in the Greater Bogota, Medellin, Cali, Barranquilla, Cucuta, Bucaramanga, Pereira, Manizales, Cartagena and Santa Marta areas. In each of these locations, the DTT channel was broadcast using DVB-T2 transmission equipment that had been deployed by a consortium of commercial national broadcasters (CCNP) jointly set up by RCN and rival broadcaster Caracol to share digital infrastructure costs. Using its allocated DTT spectrum, RCN was broadcasting a second (in this case, SD) digital FTA TV channel in the areas where it was already transmitting. The second network (the company’s international news TV channel NTN24) was using the slot originally used by the SD version of RCN. DVB-T2 receiving equipment was becoming increasingly available to the general public in Colombia, with standalone STBs being marketed from USD 79 and OEMs such as Samsung launching their first lines of DVB-T2-compliant integrated digital TV sets. Distribution on Pay- As of May 2013, RCN was included in the basic video package TV platforms of practically all pay-TV operators in the country, including Une, DirecTV, Movistar Colombia, Claro TV, Supercable and Global TV Comunicaciones. Additionally, the HD version of the channel (RCN HD) was distributed by Une, Movistar and Claro TV. Mobile TV Unlike the ISDB-T standard chosen by most Latin American distribution nations to deploy DTT services, the European DVB-T (and “T2”) specification had not been developed with mobility as a main consideration. As a consequence, as of May 2013 RCN Televisión had not been adapted for mobile TV reception and the broadcaster had not indicated any intention to move in that direction. Live online Yes – free of charge, available only to Internet users located in simulcast? Colombia. The service was accessible via the company’s own website (http://www.canalrcnmsn.com/streamingrcn). Catch-up TV strategy RCN had built a VOD strategy which allowed viewers to watch full past episodes and highlights of its most popular TV series, soap operas and other programs and shows broadcast as early as the same day and as far back as 12 months. Such programming was available, free of charge and in SD quality, via the station’s own website (http://www.canalrcnmsn.com/videos). A large portion of this catch-up TV programming was only available to Colombian residents.

International RCN Televisión operated an international channel called “RCN distribution Nuestra Tele” (previously known as “TV Colombia”). It was carried by digital cable, DTH and IPTV pay-TV operators in the United States and Canada in North America, five countries in Central America, seven South American countries, one European market (Spain), and Australian and New Zealand in Asia. As of May 2013, RCN Nuestra Tele reached over 10 million homes worldwide according to the company. The international network’s TV schedule featured up to six Colombian soccer games each week. Social networking Facebook; Twitter. Source: Dataxis

5. Mexico

5.1. Free-to-Air market

5.1.1. Households with TV sets and FTA reception

As of the end of 2012, 96.9% of Mexican households (or 28.6 million homes) had at least one TV set. By 2018, Dataxis expected this figure to reach 97.5% of households (32 million homes).

Chart 13. Households with TV sets (millions) and penetration over total households (%). Mexico, 2008-2018.

35 98%

30 97%

25 96%

20 95%

15 94%

10 93%

5 92%

- 91% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 HHs with TV sets (MM) 26.26 26.86 27.45 28.04 28.62 29.20 29.78 30.35 30.92 31.50 32.08 HHs with TV sets/all HHs 93.2% 95.7% 96.3% 96.7% 96.9% 97.1% 97.2% 97.3% 97.4% 97.4% 97.5%

Source: Dataxis

The pay-TV sector in Mexico had been growing on double-digit rates uninterruptedly since 2008, with penetration of these services reaching 45.5% of households with TV sets in 2012. This meant that, at the end of that year, there were still 54.5% of households with TV sets in the country (some 15.6 million homes) receiving FTA TV broadcasts, using pirated pay-TV technology or being underreported.

In line with most other countries in the region, total Mexican households relying on illegal pay-TV alternatives plus FTA TV had been steadily declining since 2008, a trend that was expected to continue for the foreseeable future. Dataxis forecast that, by 2018, less than 29% of TV households will not be paying for a genuine multichannel television service.

Chart 14. Households with FTA (millions) and penetration over total households with TV sets (%). Mexico, 2008-2018.

25 80%

70% 20 60%

15 50% 40%

10 30%

20% 5 10%

- 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FTA TV HHs (MM) 19.21 18.79 17.30 16.50 15.59 14.64 13.49 12.48 11.45 10.37 9.23 FTA HHs/HHs with TV sets 73.1% 69.9% 63.0% 58.8% 54.5% 50.1% 45.3% 41.1% 37.0% 32.9% 28.8%

Source: Dataxis

5.1.2. FTA revenues

The Mexican FTA TV sector, which was dominated by two players, the Televisa and TV Azteca groups, raised most of its revenue from advertising sales.

Chart 15. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Mexico, 2008-2012.

45,000 70% 40,000 65% 35,000 30,000 60% 25,000 55% 20,000 15,000 50% 10,000 45% 5,000 0 40% 2008 2009 2010 2011 2012 (est) Local Currency 31,331 30,664 33,730 35,520 38,377 USD 3,040.2 2,326.1 2,622.7 3,022.6 2,867.2 % FTA/Total 58.1% 59.0% 58.3% 55.5% 55.5%

Source: Dataxis

In 2012, FTA TV was estimated to have attracted over 55% of total advertising expenditure in the country. That year, Dataxis estimated that Mexican FTA broadcasters generated over USD 2.8 billion in advertising revenue (a 5% drop compared with the year before, but the third consecutive year of growth measured in Mexican Pesos).

5.2. Distribution strategies of main broadcasters

The Mexican free-to-air TV market was organized around 486 commercial and 191 non-profit TV licenses – all of them granted for local TV broadcasting. Having said that, the vast majority (95%) of all commercial TV licenses were owned by just two private groups: Televisa and TV Azteca. The remaining 5% of licenses were owned by public agencies and other private companies. Such high market concentration had enabled both Televisa and Azteca to develop what in practice were multiple FTA TV networks offering simultaneous, nationwide coverage. Both media giants were also highly integrated conglomerates that produced most of their content.

In April 2013, both the Lower and Upper Houses of the Mexican Congress passed legislation previously agreed by all the main political parties that – if ultimately ratified by individual state legislatures and the President – would drastically reform the legal framework that regulated the telecommunications industry in Mexico. As part of the reforms, two new private and a state-owned FTA TV networks with nationwide coverage would be established. Existing license holders with over 12 megahertz of radiofrequency spectrum would be excluded from the bidding process, which meant that neither Televisa nor Azteca would be able to participate in the auction. On the other hand, telecommunication service providers, which until then were forbidden from taking part in the television business, would be allowed to bid for the new FTA TV licenses, which would open the door to Carlos Slim’s Telmex Group to finally put a foothold in the Mexican television market.

The new legislation would introduce both “must-offer” and “must-carry” rules to the relationship between local FTA TV stations and pay-TV service providers, similar to those already in place in the US market. If approved, this would force Televisa and Azteca to offer their FTA channels to all pay-TV operators (even those directly competing with pay-TV operators owned by Televisa) on an equal basis.

Mexico used the NTSC standard for analog TV broadcasting. In 2004, Mexico adopted the American ATSC standard for its DTT system. One of the stated reasons for such decision was the fact that ATSC had been adopted in the United States, a country with which Mexico has a free trade agreement (NAFTA). Mexico was a major producer of both television sets for the American market and audiovisual content for the Spanish- speaking community in that country.

Mexico had been the first country in Latin America to choose a DTT standard, but ongoing delays had in practice meant that progress in increasing the penetration of digital broadcasting reception had been slower than that verified in other markets in the region which had actually started to work on DTT later, such as Brazil or Argentina.

However, in late 2012 and early 2013, the Mexican Federal Government made a strategic decision to accelerate digital migration in the country. An ambitious project to ensure that over 90% of the population of Tijuana city had access to digital receiving television equipment in the space of a few months appeared to have succeeded by May 2013. The city was on track to become the first one in Latin America to switch analog TV broadcasts off before the end of the first half of 2013. By December 2015, every city and town in Mexico was due to have switched off analog TV transmissions.

5.2.1. Canal de las Estrellas

Table 17. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal de las Estrellas. Mexico, 2013.

Broadcaster profile

Station name Canal de las Estrellas (aka: XEW-TV). Owner Grupo Televisa (Azcárraga family). Programming focus Canal de las Estrellas was Televisa’s flagship FTA TV network. The channel’s main programming format had traditionally been the “telenovela” (soap opera), whose episodes dominated most of the network’s daily schedule. Indeed, up to seven different soap operas (all produced by Televisa) were typically broadcast during weekdays, usually consecutively shown from 4:00 p.m. to 10:30 p.m. Televisa had taken advantage of this prolific production capacity to mount a significant soap opera export business. Canal de las Estrellas was Mexico’s most popular TV channel, and it regularly featured children, sports and TV newscasts among other programs. 2011 TV ratings 34% of Mexico’s FTA TV audience share (1st spot). Analog terrestrial FTA Headquartered in the Federal District, Canal de las Estrellas was coverage broadcasting locally through channel 2 of the VHF radiofrequency spectrum. The channel was also retransmitted nationwide via a vast network of affiliated and repeater FTA TV stations. Picture definition SD + HD (1080i). HD strategy As of May 2013, “Canal de las Estrellas HD” was broadcasting most of its programming schedule in HD quality. The channel was available via DTT transmissions in over 20 urban conurbations of the country, including the National Capital. A group of pay-TV operators were also including Canal de las Estrellas HD as part of their HD video packages.

DTT distribution As of May 2013, the HD version of Televisa’s flagship network (Canal de las Estrellas HD) was being simulcast as a digital terrestrial TV (DTT) channel in the following Mexican cities and their corresponding surroundings:

- Mexico City (DTT channel 2.1) - Guadalajara (DTT channel 9.1) - Tijuana (DTT channel 57.1) - Monterrey (DTT channel 10.1) - Mexicali (DTT channel 14.1) - Ciudad Juarez (DTT channel 32.1) - Leon (DTT channel 11.1) - Acapulco (DTT channel 12.1) - Altzomoni (DTT channel 10.1) - Huajuapan de Leon (DTT channel 5.1) - Queretaro (DTT channel 5.1) - Los Mochis (DTT channel 4.1) - Nuevo Laredo (DTT channel 25.1) - Reynosa (DTT channel 19.1) - Matamoros (DTT channel 9.1) - Coatzacoalcos (DTT channel 2.1) - Las Lajas (DTT channel 39.1) - Zacatecas (DTT channel 43.1) - Torreon (DTT channel 11.1) - Toluca (DTT channel 10.1) - Morelia (DTT channel 10.1) - Culiacan (DTT channel 7.1) - Villahermosa (DTT channel 3.1) - Tampico (DTT channel 7.1) - Xalapa (DTT channel 7.1) - Merida (DTT channel 9.1)

Additionally, an SD version of Canal de las Estrellas was being broadcast as DTT channel 32.2 in Ciudad Juarez and 2.2 in Aguascalientes. In all sites, the channel was broadcast using Televisa’s own transmission equipment. Distribution on Pay-TV Canal de las Estrellas was not distributed by all the major pay-TV platforms operators in Mexico. Notably, DTH company Dish Mexico was not carrying any of the Televisa Group’s FTA TV channels following a long-standing carriage dispute between the two companies. New IPTV operator Axtel was another example of a pay-TV company failing to agree carriage terms with Televisa. In contrast, all of the pay-TV companies controlled by Televisa (DTH service provider Sky and cable MSOs Cablevisión and Cablemás) were including Canal de las Estrellas in their basic video packages. In some cases, they were dedicating up to three different physical channels to carry the network, which allowed them to show the channel’s programming not only simultaneously with the original FTA broadcast time but also with one and two hours of delay.

Additionally, most of these pay-TV operators were also including the FTA broadcaster’s HD channel (Canal de las Estrellas HD) in their respective HD lineups.

Some of the pay-TV providers that had not reached an agreement with Televisa to carry its FTA TV channels were offering subscribers the chance to install the necessary DTT receiving equipment in their premises to demodulate the local DTT channels available in their areas (including Canal de las Estrellas) and integrate them with the pay-TV channels provided via the STB. Both Dish and, more recently, Axtel, had begun pursuing such a strategy. Mobile TV distribution Unlike the ISDB-T standard chosen by most Latin American nations to deploy DTT services, the North American ATSC specification had not been developed with mobility as a main consideration. As a consequence, as of May 2013 Canal de las Estrellas had not been adapted for mobile TV reception and Televisa had not indicated any intention to move in that direction. Live online simulcast? Yes. Free of charge for Mexican residents only, via Televisa’s Internet portal “Tvolucion” (http://www.esmas.com/tv). However, as of May 2013, the service had suspended registration of new users and was only available to old users with an active account. Catch-up TV strategy Televisa had developed a catch-up TV strategy through which all of the popular “televonovelas” (soap operas) currently and recently broadcast by Canal de las Estrellas, as well as other TV shows, news clips and sports programs shown by the channel, were available over the Internet as VOD content. Televisa had built a unified VOD platform (called TVolucion, developed as the “video arm” of the group’s Esmas.com online portal) that concentrated all catch-up TV material available for each of Televisa’s FTA TV networks, including Canal de las Estrellas. The service, which was free of charge and available only to Mexican residents for most content, offered the streaming of full episodes of programs originally broadcast as early as the previous day and as old as over twelve months. The VOD service was accessible via http://tvolucion.esmas.com/. International As of May 2013, Canal de las Estrellas was being distributed distribution internationally via two different pay-TV channels belonging to Televisa Networks, both of them featuring much of the same programming originally broadcast in Mexico. The first one, called “Canal de las Estrellas Latinoamérica”, was carried by cable and DTH operators in 18 Latin American countries. The second one (originally called Galavisión Europa, later renamed as “Canal de las Estrellas Europa”) was distributed by pay-TV operators in Europe, Australia and New Zealand. Social networking As of May 2013, Televisa had not implemented any strategies presence designed to extend the visibility of Canal de las Estrellas onto the social networking space (except for particular TV programs). Source: Dataxis

5.2.2. Canal 5

Table 18. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Canal 5. Mexico, 2013.

Broadcaster profile

Station name Canal 5 (aka: XHGC-TV). Owner Grupo Televisa (Azcárraga family). Programming focus Canal 5’s programming emphasis was on content for children and teenagers. As such, on Canal 5 viewers could typically watch foreign animated TV series and shows. The broadcaster also aired programming produced by Televisa. 2011 TV ratings 20% of Mexico’s FTA TV audience share (3rd spot behind Canal de las Estrellas and Canal 13). Analog terrestrial FTA Headquartered in the Federal District, Canal 5 was broadcasting coverage locally through channel 5 of the VHF radiofrequency spectrum. The channel was also retransmitted nationwide via a large network of affiliated and repeater FTA TV stations. Picture definition SD + HD (1080i). HD strategy As of May 2013, “Canal 5 HD” was broadcasting a significant portion of its programming schedule in HD quality. The channel was available via DTT transmissions in over 17 urban conurbations of the country, including the National Capital. A group of pay-TV operators were also including Canal 5 HD as part of their HD video packages. DTT distribution As of May 2013, the HD version of the Televisa network (Canal 5 HD) was being simulcast as a digital terrestrial TV (DTT) channel in the following Mexican cities and their corresponding surroundings:

- Mexico City (DTT channel 5.1) - Guadalajara (DTT channel 21.1) - Aguascalientes (DTT channel 13.1) - Monterrey (DTT channel 6.1) - Mexicali (DTT channel 32.1) - Ciudad Juarez (DTT channel 56.1) - Leon (DTT channel 25.1) - Acapulco (DTT channel 4.1) - Altzomoni (DTT channel 8.1) - Huajuapan de Leon (DTT channel 2.1) - Queretaro (DTT channel 3.1) - Los Mochis (DTT channel 28.1) - Coatzacoalcos (DTT channel 4.1) - Zacatecas (DTT channel 3.1) - Torreon (DTT channel 40.1)

- Toluca (DTT channel 31.1) - Culiacan (DTT channel 22.1) - Tampico (DTT channel 4.1) - Xalapa (DTT channel 9.1) - Merida (DTT channel 4.1)

Additionally, an SD version of Canal 5 was being broadcast as DTT channel 6.2 in Tijuana. In all sites, the channel was broadcast using Televisa’s own transmission equipment. Distribution on Pay-TV Canal 5 was not distributed by all the major pay-TV operators in platforms Mexico. Notably, DTH company Dish Mexico was not carrying any of the Televisa Group’s FTA TV channels following a long-standing carriage dispute between the two companies. New IPTV operator Axtel was another example of a pay-TV company failing to agree carriage terms with Televisa. In contrast, all of the pay-TV companies controlled by Televisa (DTH service provider Sky and cable MSOs Cablevisión and Cablemás) were including Canal 5 in their basic video packages. Additionally, most of these pay-TV operators were also including the FTA broadcaster’s HD channel (Canal 5 HD) in their respective HD lineups.

Some of the pay-TV providers that had not reached an agreement with Televisa to carry its FTA TV channels were offering subscribers the chance to install the necessary DTT receiving equipment in their premises to demodulate the local DTT channels available in their areas (including Canal 5) and integrate them with the pay-TV channels provided via the STB. Both Dish and, more recently, Axtel, had begun pursuing such a strategy. Mobile TV distribution Unlike the ISDB-T standard chosen by most Latin American nations to deploy DTT services, the North American ATSC specification had not been developed with mobility as a main consideration. As a consequence, as of May 2013 Canal 5 had not been adapted for mobile TV reception and Televisa had not indicated any intention to move in that direction. Live online simulcast? Yes. Free of charge for Mexican residents only, via Televisa’s Internet portal “Tvolucion” (http://www.esmas.com/tv). However, as of May 2013, the service had suspended registration of new users and was only accessible to previously registered users with an active account. Catch-up TV strategy Televisa had developed a catch-up TV strategy through which some of the popular TV programs currently and recently broadcast by Canal 5 were available over the Internet as VOD content. Televisa had built a unified VOD platform (called TVolucion, developed as the “video arm” of the group’s Esmas.com online portal) that concentrated all catch-up TV material available for each of Televisa’s FTA TV networks, including Canal 5. The service, which was free of charge and available only to Mexican residents for most content, offered the streaming of full episodes of programs originally broadcast as

early as the previous day and as old as over twelve months. The VOD service was accessible via http://tvolucion.esmas.com/. International Canal 5 did not have an internationally distributed version as of distribution May 2013 (See International Distribution category in Table 17 for more information on Televisa’s strategy regarding the international distribution of the group’s Mexican FTA TV networks). Social networking As of May 2013, Televisa had not implemented any strategies presence designed to extend the visibility of Canal 5 onto the social networking space (except for particular TV programs). Source: Dataxis

5.2.3. Gala TV

Table 19. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Gala TV. Mexico, 2013.

Broadcaster profile

Station name Gala TV (formerly: Galavisión; aka: XEQ-TV; Canal 9). Owner Grupo Televisa (Azcárraga family). Programming focus Sports and entertainment content were the network’s programming strengths. From 1985 to 1992, it was Televisa’s cultural channel, which meant the station did not run advertising. In 2008, the station signed a deal with US broadcaster Telemundo to bring soap operas, talk shows and other programs to Gala TV’s screen. The station changed its name from Galavisión to Gala TV in April 2013. 2011 TV ratings 12% of Mexico’s FTA TV audience share (4th spot). Analog terrestrial FTA Headquartered in the Federal District, Gala TV was broadcasting coverage locally through channel 9 of the VHF radiofrequency spectrum. The channel was also retransmitted nationwide via a large network of affiliated and repeater FTA TV stations. Picture definition SD + HD (1080i). HD strategy As of May 2013, “Gala TV HD” was broadcasting a significant portion of its programming schedule in HD quality. The channel was available via DTT transmissions in over 11 urban conurbations of the country, including the National Capital. A group of pay-TV operators were also including Gala TV HD as part of their HD video packages. DTT distribution As of May 2013, the HD version of the Televisa network (Gala TV HD) was being simulcast as a digital terrestrial TV (DTT) channel in the following Mexican cities and their corresponding surroundings:

- Mexico City (DTT channel 9.1) - Guadalajara (DTT channel 5.1)

- Tijuana (DTT channel 45.1) - Monterrey (DTT channel 22.1) - Mexicali (DTT channel 38.1) - Altzomoni (DTT channel 32.1) - Queretaro (DTT channel 21.1) - Aguascalientes (DTT channel 2.1) - Zacatecas (DTT channel 13.1) - Morelia (DTT channel 4.1) - Villahermosa (DTT channel 9.1) - Xalapa (DTT channel 22.1) - Tapachula (DTT channel 4.1) - Cuernavaca (DTT channel 11.1) - Mazatlan (DTT channel 22.1)

Additionally, an SD version of Gala TV was being broadcast as DTT channel 57.2 in Tijuana, 5.1 in Ciudad Juarez, 10.1 in Victoria de Durango and 6.1 in Leon. In all sites, the channel was broadcast using Televisa’s own transmission equipment. Distribution on Pay-TV Gala TV was not distributed by all the major pay-TV operators in platforms Mexico. Notably, DTH company Dish Mexico was not carrying any of the Televisa Group’s FTA TV channels following a long-standing carriage dispute between the two companies. New IPTV operator Axtel was another example of a pay-TV company failing to agree carriage terms with Televisa. In contrast, all of the pay-TV companies controlled by Televisa (DTH service provider Sky and cable MSOs Cablevisión and Cablemás) were including Gala TV in their basic video packages. Additionally, most of these pay-TV operators were also including the FTA broadcaster’s HD channel (Gala TV HD) in their respective HD lineups.

Some of the pay-TV providers that had not reached an agreement with Televisa to carry its FTA TV channels were offering subscribers the chance to install the necessary DTT receiving equipment in their premises to demodulate the local DTT channels available in their areas (including Gala TV) and integrate them with the pay-TV channels provided via the STB. Both Dish and, more recently, Axtel, had begun pursuing such a strategy. Mobile TV distribution Unlike the ISDB-T standard chosen by most Latin American nations to deploy DTT services, the North American ATSC specification had not been developed with mobility as a main consideration. As a consequence, as of May 2013 Gala TV had not been adapted for mobile TV reception and Televisa had not indicated any intention to move in that direction. Live online simulcast? Yes. Free of charge for Mexican residents only, via Televisa’s Internet portal “Tvolucion” (http://www.esmas.com/tv). However, as of May 2013, the service had suspended registration of new users and was only accessible to previously registered users with an active account. Catch-up TV strategy Televisa had developed a catch-up TV strategy through which some of the popular TV programs currently and recently

broadcast by Gala TV were available over the Internet as VOD content. Televisa had built a unified VOD platform (called TVolucion, developed as the “video arm” of the group’s Esmas.com online portal) that concentrated all catch-up TV material available for each of Televisa’s FTA TV networks, including Gala TV. The service, which was free of charge and available only to Mexican residents for most content, offered the streaming of full episodes of programs originally broadcast as early as the previous day and as old as over twelve months. The VOD service was accessible via http://tvolucion.esmas.com/. International Gala TV did not have an internationally distributed version as of distribution May 2013 (See International Distribution category in Table 17 for more information on Televisa’s strategy regarding the international distribution of the group’s Mexican FTA TV networks). Social networking As of May 2013, Televisa had not implemented any strategies presence designed to extend the visibility of Gala TV onto the social networking space (except for particular TV programs). Source: Dataxis

5.2.4. Azteca Trece

Table 20. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Azteca Trece. Mexico, 2013.

Broadcaster profile

Station name Azteca Trece (aka: XHDF-TV; Canal 13). Owner Grupo Salinas (Salinas Pliego family). Programming focus Headquartered in the Federal District, its programming was focused on soap operas – to such an extent that in 2010 the station decided to increase the hours dedicated to show its novelas from three to four, always on prime time. The station also featured live studio shows, sports, TV news programs and reality shows. 2011 TV ratings 21% of Mexico’s FTA TV audience share (2nd spot behind Canal de las Estrellas). Analog terrestrial FTA Azteca Trece was broadcasting analogically in Mexico City through coverage channel 13 of the VHF radiofrequency spectrum. The channel was also retransmitted nationwide via a large network of affiliated and repeater FTA TV stations. Picture definition SD + HD (1080i). HD strategy As of May 2013, “Azteca Trece HD” was simulcasting a large portion of its programming schedule in native HD quality – and upscaling the rest from SD to HD. The channel was available via DTT transmissions in over two dozen urban conurbations of the country, including the National Capital. A group of pay-TV operators were also including Azteca Trece HD as part of their HD

video packages. DTT distribution As of May 2013, the HD version of the channel (Azteca Trece HD) was being simulcast (or in the process of being simulcast) as a digital terrestrial TV (DTT) channel in the following Mexican cities and their corresponding surroundings:

- Mexico City (DTT channel 13.1) - Guadalajara (DTT channel 13.1) - Tijuana (DTT channel 27.1) - Monterrey (DTT channel 4.1) - Puebla (DTT channel 6.1) - Mexicali (DTT channel 5.1) - Ciudad Juarez (DTT channel 11.1) - Leon (DTT channel 12.1) - Acapulco (DTT channel 10.1) - Aguascalientes (DTT channel 4.1) - Ensenada (DTT channel 13.1) - Campeche (DTT channel 5.1) - Cancun (DTT channel 11.1) - Celaya (DTT channel 12.1) - Chilpancingo (DTT channel 5.1) - Iguala (DTT channel 2.1) - Taxco (DTT channel 4.1) - Tehuacan (DTT channel 11.2) - Escarcega (DTT channel 9.1) - Comitan (DTT channel 12.1) - Tapachula (DTT channel 13.1) - Colima (DTT channel 9.1) - Cuencame (DTT channel 7.1) - Guadalupe Victoria (DTT channel 8.1) - Santiagi Papasquiaro (DTT channel 4.1) - Tuxtla Gutierrez (DTT channel 4.1) - Oaxaca (DTT channel 13.2) - Arriaga (DTT channel 6.1) - Monclova (DTT channel 9.1) - Pachuca (DTT channel 6.1) - Nogales (DTT channel 2.1) - Heroica Matamoros (DTT channel 11.1) - Cananea (DTT channel 4.1) - Guaymas (DTT channel 9.1) - Chetumal (DTT channel 12.1) - Felipe Carrillo Puerto (DTT channel 9.1) - Ciudad Valles (DTT channel 11.1) - Matehuala (DTT channel 5.1) - San Luis Potosi (DTT channel 11.1) - Ciudad Obregon (DTT channel 6.1) - Tamazunchale (DTT channel 12.1) - San Nicolas Jacala (DTT channel 12.1) - Tulancingo (DTT channel 12.1) - Parras de la Fuente (DTT channel 7.1)

- Tepic (DTT channel 4.1) - Ciudad Acuña (DTT channel 7.1) - Piedras Negras (DTT channel 9.1) - Sabinas (DTT channel 4.1) - Hermosillo (DTT channel 4.1) - Manzanillo (DTT channel 2.1) - Mazatlan (DTT channel 6.1) - Cuernavaca (DTT channel 13.1) - Tampico (DTT channel 12.1) - Lazaro Cardenas (DTT channel 7.1) - Patzcuaro (DTT channel 8.1) - Zitacuaro (DTT channel 23.1) - Pinotepa Nacional (DTT channel 8.1) - Salina Cruz (DTT channel 7.1) - Tecoman (DTT channel 2.1) - Victoria de Durango (DTT channel 7.1) - Zihuatanejo (DTT channel 10.1) - Ciudad Mante (DTT channel 5.1) - San Fernando (DTT channel 3.1) - Fresnillo (DTT channel 12.1) - Sombrerete (DTT channel 11.1) - Santiago Tuxtla (DTT channel 8.1) - Valladolid (DTT channel 4.1) - Soto la Marina (DTT channel 3.1) - Cerro Azul (DTT channel 2.1) - Huajuapan de Leon (DTT channel 9.2) - Matias Romero (DTT channel 12.2) - Queretaro (DTT channel 9.1) - Los Mochis (DTT channel 6.1) - Nuevo Laredo (DTT channel 21.1) - Coatzacoalcos (DTT channel 11.1) - Zacatecas (DTT channel 10.1) - Torreon (DTT channel 13.1) - Toluca (DTT channel 6.1) - Culiacan (DTT channel 9.1) - Villahermosa (DTT channel 6.1) - Ciudad Victoria (DTT channel 3.1) - Xalapa (DTT channel 13.1) - Merida (DTT channel 11.1)

Additionally, an SD version of Azteca Trece was being broadcast as DTT channel 40.7 in Mexico City (programming shown with two hours delay as a “catch-up” version of the channel). In all sites, the channel was broadcast using TV Azteca’s own transmission equipment. Distribution on Pay-TV Azteca Trece was not distributed by all the major pay-TV platforms operators in Mexico. Notably, DTH company Dish Mexico was not carrying any of the Azteca Group’s FTA TV channels following a long-standing carriage dispute between the two companies. New

IPTV operator Axtel was another example of a pay-TV company failing to agree carriage terms with Azteca. In contrast, all of the pay-TV companies controlled by Televisa (DTH service provider Sky and cable MSOs Cablevisión and Cablemás), as well as the Mexican pay-TV company owned by Azteca (Totalplay) were including Azteca Trece in their basic video packages. Additionally, most of these pay-TV operators were also including the FTA broadcaster’s HD channel (Azteca Trece HD) in their respective HD lineups.

Some of the pay-TV providers that had not reached an agreement with Azteca to carry its FTA TV channels were offering subscribers the chance to install the necessary DTT receiving equipment in their premises to demodulate the local DTT channels available in their areas (including Azteca Trece) and integrate them with the pay-TV channels provided via the STB. Both Dish and, more recently, Axtel, had begun pursuing such a strategy. Mobile TV distribution Unlike the ISDB-T standard chosen by most Latin American nations to deploy DTT services, the North American ATSC specification had not been developed with mobility as a main consideration. As a consequence, as of May 2013 Azteca Trece had not been adapted for mobile TV reception and the broadcaster had not indicated any intention to move in that direction. Live online simulcast? Yes – Free of charge, in HD streaming quality (simulcast of Azteca Trece HD), and available to Internet users anywhere in the world via the broadcaster’s site (http://www.azteca.com/aztecatrece). Catch-up TV strategy TV Azteca had developed a catch-up TV strategy through which all of the popular “televonovelas” (soap operas) currently and recently broadcast by Azteca Trece, as well as other TV shows, news clips and sports programs shown by the channel, were available over the Internet as VOD content. Azteca had built a unified VOD platform that concentrated all catch-up TV material available for both Azteca Trece and Azteca 7. The service was free of charge. For telenovelas, it was available only to residents of Mexico and certain countries with cleared TV rights for that particular content. Most other video material, such as newscasts and short video clips, were available to viewers anywhere in the world. The VOD service (accessible on http://www.azteca.com/) offered the streaming of full episodes of programs originally broadcast as early as the previous day and as old as several months.

Additionally, some of the older telenovelas and TV series produced and broadcast by Azteca were available as VOD content through Totalmovie, an OTT portal owned by Grupo Salinas and operating in over 40 countries. International In 2000, Grupo Azteca began combining the most popular TV distribution programs originally broadcast by Azteca 7 and Azteca Trece into

an international pay-TV channel. Called “Azteca Internacional”, it was distributed by DTH, cable and IPTV network operators in over 20 countries in Latin America and over 25 countries in Europe as of May 2013. Additionally, the broadcaster ran a Spanish- language FTA TV network in the United States. Called “Azteca América”, it was broadcasting over the air in 75 US markets, in addition to being carried by DTH operators DirecTV and Dish, as well as by several cable MSOs.

In April 2013, Grupo Salinas confirmed that two Azteca TV channels would soon also be retransmitted in real time over an OTT streaming video service owned by the same group: Totalmovie. Should Azteca Trece be chosen as one of the linear channels to join Totalmovie, this would expand the international footprint of the network to over 40 countries. The channel’s programming would also be accessible via multiple devices, including PCs, tablets and smartphones. Social networking Facebook; Twitter. presence Source: Dataxis

5.2.5. Azteca 7

Table 21. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Azteca 7. Mexico, 2013.

Broadcaster profile

Station name Azteca 7 (aka: XHIMT-TV; Canal 7; El 7). Owner Grupo Salinas (Salinas Pliego family). Programming focus Headquartered in the Federal District, Azteca 7’s main programming focus was sporting events, children and youth TV programs and American TV series. The channel’s regional content output included locally produced programs at specific times. 2011 TV ratings 11% of Mexico’s FTA TV audience share (5th spot). Analog terrestrial FTA Azteca 7 was broadcasting in Mexico City through channel 7 of coverage the VHF radiofrequency spectrum. The channel was also retransmitted nationwide via a large network of affiliated and repeater FTA TV stations. Picture definition SD + HD (1080i). HD strategy As of May 2013, “Azteca 7 HD” was simulcasting a portion of its programming schedule in native HD quality – and upscaling the rest from SD to HD quality. The channel was available via DTT transmissions in over two dozen urban conurbations of the country, including the National Capital. A group of pay-TV operators were also including Azteca 7 HD as part of their HD video packages. DTT distribution As of May 2013, the HD version of the channel (Azteca 7 HD) was

being simulcast (or in the process of being simulcast) as a digital terrestrial TV (DTT) channel in the following Mexican cities and their corresponding surroundings:

- Mexico City (DTT channel 7.1) - Guadalajara (DTT channel 11.1) - Tijuana (DTT channel 21.1) - Monterrey (DTT channel 7.1) - Puebla (DTT channel 12.1) - Mexicali (DTT channel 20.1) - Campeche (DTT channel 2.1) - Cancun (DTT channel 7.1) - Escarcega (DTT channel 7.1) - Celaya (DTT channel 7.1) - Ciudad Juarez (DTT channel 20.1) - Leon (DTT channel 7.1) - Acapulco (DTT channel 6.1) - Aguascalientes (DTT channel 10.1) - Calvillo (DTT channel 11.1) - Colima (DTT channel 3.1) - Comitan (DTT channel 8.1) - Ensenada (DTT channel 2.1) - Isla Cedros (DTT channel 7.1) - Chilpancingo (DTT channel 9.1) - Iguala (DTT channel 5.1) - Tapachula (DTT channel 11.1) - Tuxtla Gutierrez (DTT channel 2.1) - Motozintla (DTT channel 6.1) - Manzanillo (DTT channel 4.1) - Tecoman (DTT channel 11.1) - Tehuacan (DTT channel 7.1) - Tonala (DTT channel 10.1) - Hermosillo (DTT channel 10.1) - Nogales (DTT channel 22.1) - Zihuatanejo (DTT channel 5.1) - Monclova (DTT channel 11.1) - Cuernavaca (DTT channel 28.1) - Chetumal (DTT channel 9.1) - Parras de la Fuente (DTT channel 12.1) - Saltillo (DTT channel 44.1) - Tepic (DTT channel 8.1) - Victoria de Durango (DTT channel 2.1) - San Pedro del Gallo (DTT channel 13.1) - Huajuapan de Leon (DTT channel 7.1) - Puerto Escondido (DTT channel 11.2) - Tlacotepec (DTT channel 11.2) - Matehuala (DTT channel 12.1) - San Luis Potosi (DTT channel 6.1) - La Venta (DTT channel 9.1) - Tamazunchale (DTT channel 2.1)

- Matias Romero (DTT channel 4.1) - Oaxaca (DTT channel 11.1) - Queretaro (DTT channel 36.1) - Ciudad Victoria (DTT channel 9.1) - Los Mochis (DTT channel 7.1) - Mazatlan (DTT channel 10.1) - Ciudad Obregon (DTT channel 10.1) - Nuevo Laredo (DTT channel 33.1) - Coatzacoalcos (DTT channel 7.1) - Zacatecas (DTT channel 5.1) - Torreon (DTT channel 6.1) - Puerto Peñasco (DTT channel 7.1) - Toluca (DTT channel 19.1) - Santiago Tuxtla (DTT channel 10.1) - Tampico (DTT channel 2.1) - Morelia (DTT channel 39.1) - Culiacan (DTT channel 11.1) - Villahermosa (DTT channel 11.1) - Heroica Matamoros (DTT channel 14.1) - Xalapa (DTT channel 11.1) - Merida (DTT channel 7.1) - Valladolid (DTT channel 10.1) - Zamora (DTT channel 48.1) Distribution on Pay-TV Azteca 7 was not distributed by all the major pay-TV operators in platforms Mexico. Notably, DTH company Dish Mexico was not carrying any of the Azteca Group’s FTA TV channels following a long-standing carriage dispute between the two companies. New IPTV operator Axtel was another example of a pay-TV company failing to agree carriage terms with Azteca. In contrast, all of the pay-TV companies controlled by Televisa (DTH service provider Sky and cable MSOs Cablevisión and Cablemás), as well as the Mexican pay-TV company owned by Azteca (Totalplay) were including Azteca 7 in their basic video packages. Additionally, most of these pay-TV operators were also including the FTA broadcaster’s HD channel (Azteca 7 HD) in their respective HD lineups.

Some of the pay-TV providers that had not reached an agreement with Azteca to carry its FTA TV channels were offering subscribers the chance to install the necessary DTT receiving equipment in their premises to demodulate the local DTT channels available in their areas (including Azteca 7) and integrate them with the pay- TV channels provided via the STB. Both Dish and, more recently, Axtel, had begun pursuing such a strategy. Mobile TV distribution Unlike the ISDB-T standard chosen by most Latin American nations to deploy DTT services, the North American ATSC specification had not been developed with mobility as a main consideration. As a consequence, as of May 2013 Azteca 7 had not been adapted for mobile TV reception and the broadcaster had not indicated any intention to move in that direction.

Live online simulcast? Yes – Free of charge, in SD streaming quality, and available to Internet users anywhere in the world via the broadcaster’s website (http://www.azteca.com/azteca7). Catch-up TV strategy TV Azteca had developed a catch-up TV strategy through which some of the TV programs shown by Azteca 7 were available over the Internet as VOD content. Azteca had built a unified VOD platform that concentrated all catch-up TV material available for both Azteca Trece and Azteca 7. The service (accessible on http://www.azteca.com/) was free of charge. Certain content was available to residents of Mexico only. For US TV series broadcast by Azteca 7 (such as The Killing, The Simpson or Revenge) the VOD service was not technically operating as “catch-up TV”, since the only video material available consisted of short previews of upcoming episodes instead of full or partial past episodes. International In 2000, Grupo Azteca began combining the most popular TV distribution programs originally broadcast by Azteca 7 and Azteca Trece into an international pay-TV channel. Called “Azteca Internacional”, it was distributed by DTH, cable and IPTV network operators in over 20 countries in Latin America and over 25 countries in Europe as of May 2013. Additionally, the broadcaster ran a Spanish- language FTA TV network in the United States. Called “Azteca América”, it was broadcasting over the air in 75 US markets, in addition to being carried by DTH operators DirecTV and Dish, as well as by several cable MSOs.

In April 2013, Grupo Salinas confirmed that two Azteca TV channels would soon also be retransmitted in real time over an OTT streaming video service owned by the same group: Totalmovie. Should Azteca 7 be chosen as one of the linear channels to join Totalmovie, this would expand the international footprint of the network to over 40 countries. The channel’s programming would also be accessible via multiple devices, including PCs, tablets and smartphones. Social networking Facebook; Twitter. presence Source: Dataxis

6. Peru

6.1. Free-to-Air market

6.1.1. Households with TV sets and FTA reception

As of the end of 2012, 82% of Peruvian households (some 5.9 million homes) had at least one TV set. Such penetration rate – the lowest among the countries surveyed – had been improving steadily since 2008 and, by 2018, it was expected that 93.6% of Peruvian households (7.2 million homes) would own one or more TV sets.

Chart 16. Households with TV sets (millions) and penetration over total households (%). Peru, 2008-2018.

8 100%

7 90% 80% 6 70% 5 60% 4 50%

3 40% 30% 2 20% 1 10% - 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 HHs with TV sets (MM) 5.05 5.24 5.46 5.68 5.90 6.12 6.34 6.56 6.78 7.01 7.23 HHs with TV sets/all HHs 73.9% 75.7% 77.9% 80.0% 82.1% 84.1% 86.0% 87.9% 89.8% 91.7% 93.6%

Source: Dataxis

The pay-TV market in Peru had experienced strong growth since 2008, following the arrival of major regional players Claro and DirecTV, which began to challenge Movistar’s dominance.

Peru ended 2012 with a penetration of pay-TV services of 22.7% of households with TV sets, meaning that 77.3% of TV homes in the country were still using a combination of FTA TV access and illegal connections for their television reception. Such FTA TV/piracy penetration level, which had been decreasing since 2008, was expected to continue to fall. Dataxis forecast that, by 2018, this portion of the market would represent 64.1% of TV households, influenced by ongoing demand for pay-TV services.

Chart 17. Households with FTA (millions) and penetration over total households with TV sets (%). Peru, 2008-2018.

4.8 90%

4.7 80%

4.6 70%

4.5 60%

4.4 50%

4.3 40%

4.2 30%

4.1 20%

4.0 10%

3.9 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FTA TV HHs (MM) 4.19 4.28 4.42 4.50 4.56 4.60 4.59 4.62 4.66 4.67 4.63 FTA HHs/HHs with TV sets 83.0% 81.7% 81.0% 79.3% 77.3% 75.2% 72.4% 70.5% 68.7% 66.6% 64.1%

Source: Dataxis

6.1.2. FTA revenues

Peruvian FTA TV broadcasters raised most of their revenue from advertising sales. In 2012, FTA TV attracted nearly half (49.2%) of the country’s total advertising expenditure. FTA TV advertising revenues had been consistently growing in Peru since 2008, going from USD 178 million that year to USD 320 million in 2012.

Chart 18. FTA TV advertising expenditure (millions) and percentage over total ad spend (%). Peru, 2008-2012.

350 60%

300 55% 250 50% 200 45% 150 40% 100

50 35%

0 30% 2008 2009 2010 2011 2012 USD 178.2 189.6 265.4 295.6 320.0 % FTA/Total 37.0% 36.0% 45.0% 49.7% 49.2%

Source: Dataxis

6.2. Distribution strategies of main broadcasters

In Peru, there were 105 companies licensed to operate local free-to-air analog TV stations over the VHF (875 channels) and UHF (498 channels) frequency bands. Of them, 23 broadcasters were headquartered in the national Capital, Lima. Despite the local character of the licenses, the market was organized around seven big TV networks (one of them state-owned), all of them headquartered in Lima. These seven networks offered nationwide coverage through partnerships with affiliated broadcasters and stations that retransmitted the original broadcasts.

In April 2009, Peru formally adopted the Brazilian-Japanese ISDB-T standard for its migration to DTT. In 2010, a Master Plan was announced by the Ministry for Transport and Communications (MTC), which set out a four-stage implementation of DTT across the country. In each phase, a series of pre-determined cities and towns will launch DTT transmissions and turn off analog signals a few years later. The process will start in 2014 (with the cities of Lima and Callao switching analog broadcasts off that year) and finish in 2024 (with the cities of Ayacucho, Chimbote, Iaca, Iquitos, Juliaca, Pucallpa, Puno and Tacna turning off analog signals that year).

6.2.1. América Televisión

Table 22. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of América Televisión. Peru, 2013.

Broadcaster profile

Station name América Televisión (aka: Canal 4). Owner Grupo Plural TV (a partnership between Peruvian newspapers El Comercio and La República). Programming focus América Televisión, a Televisa affiliated network, had been Peru’s most-watched TV channel for over nine consecutive seasons. The channel’s main programming focus was on general-interest programs, although its most popular content consisted on news TV programs and soap operas – the latter typically produced by Televisa. As of the end of 2012, the broadcaster’s programming schedule was being filled with up to 60% of own productions. This was possible thanks to the use of eight television studios owned by América, to which the company planned to add another four studios in 2013. Approximately one-tenth of the revenue generated by the network originated outside the national Capital, Lima, which had prompted the station to increase local production in ten different Peruvian markets. 2012 TV ratings 1st spot. Estimated share: 36% of Peru’s FTA TV audience. Analog terrestrial FTA América Televisión operated in Lima through channel 4 of the VHF coverage radio spectrum, and had extended nationwide coverage through

partnerships with a series of affiliated and retransmitting stations. Picture definition SD + HD (1080i). HD strategy América Televisión launched experimental HD transmissions in Lima in January 2009. Two years later, the broadcaster officially launched its “América HD” channel on DTT. As of May 2013, the network was also included in the HD packages of at least two pay-TV operators in Peru. Not all programs were broadcast in native HD content, but the high-definition format was increasingly being used for some of the most popular programs, such as América Televisión’s hit TV series “Al fondo hay sitio” and a number of Televisa soap operas. DTT distribution In April 2010, the Peruvian Government granted América Televisión a digital terrestrial TV (DTT) license to broadcast in UHF channel 24 of the radiofrequency spectrum in the Greater Lima area. The FTA broadcaster was using this frequency to simulcast a standard (SD), HD and mobile TV versions of its analog feed. DTT broadcasts were carried out using the station’s own transmission infrastructure, and were limited to the National Capital and nearby city of Callao. Distribution on Pay-TV In Peru, while they were not legally required to do so, in practice platforms pay-TV operators were carrying most of the main Lima-based FTA TV channels, including América Televisión. The channel was included in the basic pay-TV package of, among others, DirecTV, Movistar TV, Claro TV, TuVes HD, Cable Perú and Cable Mundo. Additionally, the HD version of the channel (América HD) was distributed by pay-TV operators Movistar and Claro. Mobile TV distribution As of May 2013, América TV was simulcasting a mobile DTT version of its channel using the 1-Seg standard on the 24 UHF channel of Peru’s DTT platform in the Greater Lima area. Live online simulcast? Yes. Free of charge and available to Internet users located anywhere in the world, via the broadcaster’s online video portal AméricaTVGo (http://tvgo.americatv.com.pe/). Video content was shown in SD. Additionally, a paid-for service was provided by online TV streaming provider KyLin through its GuaoTV website (www.guaotv.com). This could be accessed anywhere in the world as part of Guao TV’s Peru Package (USD 11.99/month), or as part of the Latin America Package (USD 15.99/month). Catch-up TV strategy América Televisión had developed one of Latin America’s most complete free-to-watch online television platforms, which included sophisticated VOD functionalities. The service was part of the “AméricaTVGo” online video portal. The strict catch-up TV functionality was accessibly via a section of the portal called “NPVR” (Net Private Video Recorder, http://tvgo.americatv.com.pe/npvr.php?dia=0). It allowed viewers located anywhere in the world to watch, free of charge, full past episodes of ALL of the TV shows, telenovelas, Hollywood films, newscasts and animated TV series broadcast by the network over the past seven days. Programs were uploaded onto the portal a couple of hours after being broadcast, and were available in HD

quality if that had been the format in which they had been originally screened. A different section of the portal, called simply “VOD” (http://tvgo.americatv.com.pe/vod.php) gave viewers access to a vast catalog of archived material and TV shows, telenovelas, sports TV shows and other programs currently on-air. The archive contained programs first shown up to two years back, with full episodes available in HD for some programs. Additionally, AméricaTVGo was an app that users of Android tablets and smartphones could download and install in their devices to access the VOD + catch-up TV + live streaming TV service. International As of May 2013, the broadcaster did not have an international distribution pay-TV channel featuring a selection of its programming. Social networking Facebook; Twitter. presence Source: Dataxis

6.2.2. ATV (Andina de Televisión)

Table 23. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of ATV. Peru, 2013.

Broadcaster profile

Station name Andina de Televisión (aka: ATV; Canal 9). Owner Albavisión (controlled by Mexican entrepreneur Remigio Ángel González González). Programming focus The channel was focused on general-interest programs and held TV rights for major international sporting events, such as the Soccer World Cup and the Olympic Games. As of the end of 2012, the broadcaster’s programming schedule was being filled with up to 50% of own productions. 2012 TV ratings 2nd spot. Analog terrestrial FTA ATV operated in Lima through channel 9 of the VHF radio coverage spectrum, and had extended nationwide coverage through partnerships with a series of affiliated and retransmitting stations. Picture definition SD + HD (1080i). HD strategy In 2007, ATV became Peru’s first FTA TV broadcaster to launch experimental HD transmissions (then using the American ATSC standard). In August 2009, the company switched to the Japanese-Brazilian ISDB-T standard to continue with its HD tests. The following year, the broadcaster officially launched its HD channel (ATV HD) on DTT in Lima and Callao. As of May 2013, the network was also included in the HD packages of at least two pay-TV operators in Peru. Not all programs were broadcast in native HD content. However, the high-definition format was being increasingly used for studio shows (“Magaly TeVe”, “Hola a Todos”, “Día D”, sports analysis programs), soap operas

(“Aurora”, “Ojo por Ojo”), reality TV shows (“Vidas Extremas”) and newscasts. The 2010 South Africa World Cup was also shown in native HD quality. DTT distribution In March 2010, the Peruvian Government granted ATV a digital terrestrial TV (DTT) license to broadcast in UHF channel 18 of the radiofrequency spectrum in the Greater Lima area, under the ISDB-T specification. The FTA broadcaster was using this frequency to simulcast a high-definition (ATV HD) and a mobile TV version of its analog feed, as well as a news FTA TV channel (ATV+) that the broadcaster had launched in 2011. Additionally, two other sister FTA TV networks belonging to the ATV Group (“Global Televisión” and “La Tele”) were available on DTT using a separate UHF channel. All DTT broadcasts were carried out using the station’s own transmission infrastructure, and were limited to the National Capital and nearby city of Callao. Distribution on Pay-TV In Peru, while they were not legally required to do so, in practice platforms pay-TV operators were carrying most of the main Lima-based FTA TV channels, including ATV. The channel was included in the basic pay-TV package of, among others, DirecTV, Movistar TV, Claro TV, TuVes HD and Cable Perú. Additionally, the HD version of the channel (ATV HD) was distributed by pay-TV operators Movistar and Claro. Mobile TV distribution As of May 2013, ATV was simulcasting a mobile DTT version of its channel using the 1-Seg standard on the 18 UHF channel of Peru’s DTT platform in the Greater Lima area. Live online simulcast? Yes. Free of charge and available to Internet users located anywhere in the world, via the broadcaster’s Tuteve online portal (http://play.tuteve.tv/ATV). Video content was shown in low resolution. Catch-up TV strategy ATV had developed an Internet portal (called Tuteve) that allowed viewers located anywhere in the world to watch, free of charge, full past episodes of most of the TV programs currently or recently broadcast by the network. Catch-up TV content available included popular soap operas, TV series, studio shows, sports analysis, current affairs and news programs. Episodes were usually uploaded onto the platform (http://play.tuteve.tv/) immediately after being broadcast over the air, and they were available in low video resolution. Advertising (in the shape of short video spots inserted at the beginning of each online programming block) was used to help fund the free service. International As of May 2013, the broadcaster did not have an international distribution pay-TV channel featuring a selection of its programming. Social networking Facebook; Twitter. presence Source: Dataxis

6.2.3. Frecuencia Latina

Table 24. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Frecuencia Latina. Peru, 2013.

Broadcaster profile

Station name Frecuencia Latina (aka: Canal 2; formerly: Frecuencia 2). Owners Baruch Ivcher; Enfoca Inversiones. Programming focus The network’s programming schedule mixed varied TV formats, although general-interest TV shows and news/current affairs programs featured prominently. As of the end of 2012, the broadcaster’s programming schedule was being filled with up to 50% (or nearly 80 hours per week) of own productions. 2012 TV ratings 3rd spot. Analog terrestrial FTA Frecuencia Latina operated in Lima through channel 2 of the VHF coverage radio spectrum, and had extended nationwide coverage through partnerships with a series of affiliated and retransmitting stations. Picture definition SD + HD (1080i). HD strategy In September 2010, Frecuencia Latina became Peru’s third FTA TV broadcaster to launch an HD version of its channel. Called Frecuencia Latina HDTV, it was transmitting on DTT in the Greater Lima (including Callao) area. As of May 2013, the network was also included in the HD packages of at least two pay-TV operators in Peru. Not all programs were broadcast in native HD content. The high-definition format was being used for titles including “El valor de verdad”, “Volverte a ver” and “La Tayson”. DTT distribution In April 2010, the Peruvian Government granted Frecuencia Latina a digital terrestrial TV (DTT) license to broadcast in UHF channel 20 of the radiofrequency spectrum in the Greater Lima area, under the ISDB-T specification. The FTA broadcaster was using this frequency to simulcast a high-definition (Frecuencia Latina HDTV) and a mobile TV version of its analog feed. DTT broadcasts were carried out using the station’s own transmission infrastructure, and were limited to the National Capital and nearby city of Callao. Distribution on Pay-TV In Peru, while they were not legally required to do so, in practice platforms pay-TV operators were carrying most of the main Lima-based FTA TV channels, including Frecuencia Latina. The channel was included in the basic pay-TV package of, among others, DirecTV, Movistar TV, Claro TV, TuVes HD and Cable Perú. Additionally, the HD version of the channel (Frecuencia Latina HDTV) was distributed by pay-TV operators Movistar and Claro. Mobile TV distribution As of May 2013, Frecuencia Latina was simulcasting a mobile DTT version of its channel using the 1-Seg standard on the 20 UHF channel of Peru’s DTT platform in the Greater Lima area. Live online simulcast? Yes. Free of charge and available to Internet users located anywhere in the world, via the broadcaster’s website

(http://www.frecuencialatina.com/tvenvivo). Video content was shown in low resolution. Catch-up TV strategy Frecuencia Latina had deployed a VOD strategy which, by may 2013, was allowing viewers to watch full past episodes and highlights of its most popular TV series, news programs and shows broadcast as early as the previous day and as far back as several months. Such programming was available to Internet users located anywhere in the world, free of charge and in SD quality, via the station’s own website (http://frecuencialatina.com/). International In 2001, the broadcaster created a new business unit called distribution Frecuencia Latina International (FLI). Based in Miami, it was designed to commercialize its original programming abroad. Instead of looking to create a pay-TV channel based on the Peruvian version of the network that could be sold to pay-TV operators in the US and other countries, FLI focused on the distribution of TV productions and original screenplays. In 2004, the unit was divested from Frecuencia Latina, although it kept its original name. By becoming an independent company, FLI was able to commercialize TV programs, scripts and adaptations produced not only by Frecuencia Latina but also from other broadcasters and independent production houses. As of May 2013, its catalog included dozens of TV series and soap operas, as well as a number of films, talk shows and news programs. Social networking Facebook; Twitter. presence Source: Dataxis

6.2.4. Panamericana Televisión

Table 25. Analog, DTT, Pay-TV, mobile TV, HD, catch-up TV and international distribution strategies of Panamericana. Peru, 2013.

Broadcaster profile

Station name Panamericana Televisión (aka: Pantel; Canal 5). Owners Telespectra S.A.C.; Global Corporation & Consulting S.A.C. Programming focus Until 2001, Panamericana was Peru’s most-watched TV channel. Much of this success was attributed to Panamericana’s strong focus on locally produced content and its alliance with Globo, which enabled the station to broadcast the Brazilian broadcaster’s most popular soap operas. However, a series of disputes regarding the ownership of the channel resulted in a long litigation process, which concluded in 2009. By then, the channel was suffering from very low audience ratings, had accumulated a large debt and had no assets left. The main beneficiary from the station’s crisis was rival FTA network América Televisión. Panamericana entered a financial restructuring process and was

re-launched under new ownership (controlled by entrepreneur Ernesto Schütz Freundt). In its 2013 programming season, Panamericana was making a renewed effort to improve its audience ratings. Programs regularly broadcast included old movies, documentaries, general-interest TV shows and news programs. 2012 TV ratings 4th spot. Analog terrestrial FTA Panamericana operated in Lima and Callao through channel 5 of coverage the VHF radio spectrum, and had extended nationwide coverage through partnerships with a series of affiliated and retransmitting stations. Picture definition SD + HD (1080i). HD strategy Panamericana Televisión was the last of Peru’s “big-four” FTA broadcasters to launch experimental HD transmissions. In March 2012, the company confirmed that it had finalized equipping its entire production chain with HD cameras, editing suites and a switcher. The following month, “Panamericana HD” was launched (on a test basis) on DTT in the Greater Lima (including Callao) area. However, as of May 2013, no known TV program had been broadcast in native HD quality. Instead broadcasts actually consisted of an SD digital feed upscaled to HD. DTT distribution In April 2010, the Peruvian Government granted Panamericana Televisión a digital terrestrial TV (DTT) license to broadcast in UHF channel 26 of the radiofrequency spectrum in the Greater Lima area, under the ISDB-T specification. The FTA broadcaster had begun using this frequency to simulcast a standard-definition (SD), an HD (Panamericana HD) and a mobile TV version of its analog feed in April 2012. DTT broadcasts were carried out using the station’s own transmission infrastructure, and were limited to the National Capital and nearby city of Callao. Distribution on Pay-TV In Peru, while they were not legally required to do so, in practice platforms pay-TV operators were carrying most of the main Lima-based FTA TV channels, including Panamericana Televisión. The channel was included in the basic pay-TV package of, among others, DirecTV, Movistar TV, Claro TV and Cable Perú. It was not carried by DTH operator TuVes in Peru. The HD version of the channel (Panamericana HD, which had been launched in 2012 but did not include any actual native HD content yet), was not being distributed by any Peruvian pay-TV operators as of May 2013. Mobile TV distribution As of May 2013, Panamericana TV was simulcasting a mobile DTT version of its channel using the 1-Seg standard on the 26 UHF channel of Peru’s DTT platform in the Greater Lima area. Live online simulcast? Yes. Free of charge and available to Internet users located anywhere in the world, via the broadcaster’s website (http://www.pantel.com.pe/tvenvivo). Video content was shown in low resolution. Additionally, a paid-for service was provided by online TV streaming provider KyLin through its GuaoTV website (www.guaotv.com). This could be accessed anywhere in the world as part of Guao TV’s Peru Package (USD 11.99/month), or as part

of the Latin America Package (USD 15.99/month). Catch-up TV strategy As of May 2013, Panamericana had in place a basic catch-up TV platform, which consisted of allowing viewers anywhere in the world to watch short video clips and full programming blocks featuring highlights of programs broadcast in recent days. Such content was available – free of charge and in low resolution – through the station’s site (http://www.panamericana.pe/videos). International As of May 2013, the broadcaster did not have an international distribution pay-TV channel featuring a selection of its programming. Social networking Facebook; Twitter; YouTube (18,630 subs as of May 2013). presence Source: Dataxis

7. Conclusions

7.1. Households with TV sets and FTA reception

In any country, the total installed base of TV sets – and, increasingly, of second and third TV screens – conforms the main substratum for the development of a TV industry. In Latin America’s seven largest markets (the six analyzed in detail in this report plus Venezuela), there were 130.2 million households (equaling to 96.6% of the population) that had a minimum of one TV set at end of 2012.

Such rate, which had steadily improved since 2008, was expected to continue to grow in the medium term. Dataxis projected that, by 2018, over 98% of the population in the seven countries analyzed (144.2 million households) will own one or more TV sets.

Chart 19. Households with TV sets (millions) and penetration over total households (%). Latin America, 2008-2018.

160 99%

140 98%

120 97%

100 96%

80 95%

60 94%

40 93%

20 92%

- 91% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 HHs with TV sets (MM) 119.44 122.17 124.95 127.67 130.24 132.70 135.08 137.42 139.77 142.03 144.27 HHs with TV sets/all HHs 94.0% 95.0% 95.6% 96.1% 96.6% 96.9% 97.1% 97.4% 97.7% 97.9% 98.1%

Source: Dataxis

When analyzing the share of each country in the number of TV households, it could be seen that Brazil alone had been contributing on average over 45% of the regional total during the ten-year period analyzed.

The other major contributor was Mexico, which accounted on average for 22% of TV households in the seven markets analyzed. Meanwhile, Argentina and Colombia accounted for 10% and 9%, respectively, of the residential TV market.

Chart 20. Households with TV sets. Market share per country (%). Latin America, 2008-2018.

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Argentina 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Brazil 45.9% 45.8% 45.7% 45.6% 45.5% 45.4% 45.2% 45.1% 44.9% 44.7% 44.6% Chile 3.6% 3.6% 3.6% 3.6% 3.6% 3.6% 3.6% 3.6% 3.6% 3.6% 3.6% Colombia 9.1% 9.1% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% Mexico 22.0% 22.0% 22.0% 22.0% 22.0% 22.0% 22.0% 22.1% 22.1% 22.2% 22.2% Peru 4.2% 4.3% 4.4% 4.4% 4.5% 4.6% 4.7% 4.8% 4.9% 4.9% 5.0% Venezuela 5.2% 5.2% 5.3% 5.3% 5.4% 5.4% 5.5% 5.5% 5.6% 5.6% 5.6%

Source: Dataxis

As a result of a stable macroeconomic environment and increasing competition, the Latin American pay-TV market had recorded strong growth rates since 2008. As of the end of 2012, 37.3% of TV households in the seven countries surveyed were subscribed to some variant of pay-TV service.

Chart 21. Households with FTA (millions) and penetration over total households with TV sets (%). Latin America, 2008-2018. 100 90% 90 80% 80 70% 70 60% 60 50% 50 40% 40 30% 30 20 20% 10 10% - 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FTA TV HHs (MM) 92.12 92.15 89.07 85.85 81.63 76.95 70.66 65.14 59.19 52.76 45.95 FTA HHs/HHs with TV sets 77.1% 75.4% 71.3% 67.2% 62.7% 58.0% 52.3% 47.4% 42.3% 37.1% 31.9% Source: Dataxis

Total TV households with FTA TV reception, illegal pay-TV access or underreported pay-TV subscriptions had been decreasing since 2008. However, such portion of the market still accounted for 62.7% of TV homes at the end of 2012 (or 81.6 million households in Latin America’s seven largest markets).

However, as pay-TV services continued to enjoy high demand over the next six years (helped by the fact that both of the next two major global sporting events, the 2014 Soccer World Cup and 2016 Olympics will be staged in the region), Dataxis forecast that FTA TV and pirated connections will diminish markedly, accounting for less than one-third of TV homes in the region by 2018.

As can be seen in Chart 22, Brazil, which at the end of 2012 commanded more than half (52.6%) of all FTA households in the seven countries analyzed, will gradually cede market share to other countries, eventually ending 2018 with less than 42% of the region’s FTA TV HHs. The historically high market share of Brazilian FTA homes in the region had been explained by the country’s comparatively vast geographic and demographic size, combined with its persistently low pay-TV penetration rates. The expected reduction of such market share was in turn explained by the way in which Brazil had been steadily catching up with pay-TV penetration rates more typical of other countries in the region over the past few years – a trend that Dataxis expected to continue in the medium term.

Chart 22. Households with FTA. Market share per country (%). Latin America, 2008-2018.

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Argentina 6.1% 6.4% 6.4% 6.1% 6.1% 6.0% 6.0% 6.1% 6.3% 6.7% 7.2% Brazil 52.5% 52.6% 53.1% 52.9% 52.6% 52.1% 51.3% 50.0% 48.1% 45.4% 41.9% Chile 3.0% 2.9% 2.9% 2.9% 3.1% 3.1% 3.1% 3.1% 3.1% 3.2% 3.3% Colombia 8.3% 8.5% 8.7% 8.9% 9.1% 9.2% 9.5% 9.8% 10.4% 11.1% 12.1% Mexico 20.8% 20.4% 19.4% 19.2% 19.1% 19.0% 19.1% 19.2% 19.3% 19.7% 20.1% Peru 4.6% 4.6% 5.0% 5.2% 5.6% 6.0% 6.5% 7.1% 7.9% 8.8% 10.1% Venezuela 4.6% 4.6% 4.6% 4.7% 4.6% 4.5% 4.5% 4.7% 4.9% 5.1% 5.3% Source: Dataxis

7.2. FTA revenues

The main source of revenue for Latin America’s FTA TV industry was advertising. While FTA TV absorbed the majority of the overall advertising expenditure in all countries, actual percentages for each market varied depending on the level of competition between TV broadcasters and other media outlets including newspapers, radio stations and online companies.

In 2012, FTA TV revenue from advertising in the six countries analyzed totaled USD 15.8 billion (a decrease of 9.3% compared with 2011, which was mainly explained by the devaluation of the Brazilian Real and the Mexican Peso in 2012). Brazilian broadcasters had obtained the – by far – largest share of such revenue: 61.2% of the total. They were followed by broadcasters from Latin America’s two other large TV markets: Mexico (with 18.1% of the regional FTA TV ad spend) and Argentina (with 10.9%).

Chart 23. FTA TV advertising expenditure. Market share per country (%). Latin America, 2012.

Peru 2% Argentina 10.9% Mexico 18.1% Colombia 3.8% Chile 3.9%

Brazil 61.2%

Source: Dataxis

7.3. Distribution strategies of Latin American broadcasters

Table 26. FTA TV broadcasters actively implementing DTT, HD, Pay-TV, mobile TV, online simulcast, catch-up TV, international distribution and social networking strategies. Latin America, 2013.

FTA TV stations analyzed Argentina 5 Brazil 5 Chile 4 Colombia 2 Mexico 5 Peru 4 TOTAL 25 DTT distribution Argentina 5/5 Brazil 5/5 Chile 4/4 Colombia 2/2 Mexico 5/5 Peru 4/4 TOTAL 25/25 Broadcasting in native HD Argentina 4/5 Brazil 5/5 Chile 4/4 Colombia 2/2 Mexico 5/5 Peru 3/4 TOTAL 23/25 Distribution on Pay-TV platforms Argentina 5/5 Brazil 5/5 Chile 4/4 SDTV Colombia 2/2 Mexico 5/5 Peru 4/4 TOTAL 25/25 Argentina 3/4 Brazil 5/5 Chile 2/4 HDTV Colombia 2/2 Mexico 5/5 Peru 3/3 TOTAL 20/23 Mobile TV broadcasting (1-Seg) Argentina 4/5 Brazil 5/5 Chile 1/4 Colombia 0/2 Mexico 0/5 Peru 4/4 TOTAL 14/25

Live online simulcast Argentina 4/5 Brazil 2/5 Chile 4/4 Colombia 2/2 Mexico 5/5 Peru 4/4 TOTAL 21/25 Catch-up TV strategy Argentina 4/5 Brazil 5/5 Chile 4/4 Colombia 2/2 Mexico 5/5 Peru 4/4 TOTAL 24/25 International distribution Argentina 5/5 Brazil 4/5 Chile 2/4 Colombia 2/2 Mexico 3/5 Peru 1/4 TOTAL 17/25 Social networking presence Argentina 5/5 Brazil 5/5 Chile 4/4 Colombia 2/2 Mexico 2/5 Peru 4/4 TOTAL 22/25 Source: Dataxis

As of May 2013, 100% of the top-25 FTA TV stations across the six countries analyzed had begun broadcasting a digital terrestrial television (DTT) version of their analog TV networks. In most cases, digital broadcasts were still officially treated as “experimental”, given that analog transmissions had not yet been switched off in any country.

Over 90% of the FTA stations surveyed were broadcasting at least a portion of their programming schedule in native HD quality. Only two broadcasters had not yet launched any native HD content transmissions: América TV in Argentina and Panamericana Televisión in Peru. While several of the networks were making significant progress towards simulcasting 100% of their weekly programming grid in native HD broadcasting, only one station (Brazil’s RedeTV!) had actually managed to achieve this.

RedeTV! was also Latin America’s only FTA broadcaster to be already offering a 3DTV version of its main channel – a world first in the FTA TV industry. At least one other

Latin American broadcaster (Chilevisión) had carried out experimental 3DTV transmissions.

Whereas the SD version of all of the FTA digital TV channels analyzed was being carried by at least one – and, in most markets, several – pay-TV operators, the HD version of three different networks was still not included in the channel lineup of any pay-TV service providers.

As of May 2013, 56% of the broadcasters profiled across the six countries analyzed were actively simulcasting a mobile TV version of their DTT channels using the 1-Seg standard.

Of the 21 broadcasters that were simulcasting their live FTA feeds over the Internet, 20 were offering the service free of charge to domestic viewers, and 18 were also offering the live streaming service free of charge to users accessing it from a foreign country. In Mexico, Televisa had suspended the registration of new users to the company’s live online simulcast service for its FTA TV channels, allowing access only to older users with an active account.

Only one of the 25 broadcasters surveyed (Canal 9 of Argentina) did not have a catch- up TV strategy in place to allow viewers to watch past episodes (or even highlights) from the network’s recent programming schedule. Of the 24 Latin American broadcasters that had deployed a catch-up TV platform, two (Globo in Brazil and Caracol in Colombia) were charging for the service, while all remaining VOD offerings were free of charge.

A select group of Latin American FTA broadcasters had begun to strike deals with smart TV, tablet and smartphone manufacturers, and to commission the development of software and applications that were allowing their TV programming to be accessible anywhere and anytime over those devices. Broadcasters leading this market included Globo and SBT in Brazil, TVN in Chile, Canal 13 in Argentina, América Televisión in Peru and Caracol TV in Colombia.

Argentina and Colombia were the only two FTA TV markets where all of the broadcasters analyzed had an international distribution strategy in place.

Televisa was the only major Latin American FTA TV broadcaster analyzed that did not have an institutional social networking presence on services such as Facebook, Twitter or YouTube. However, this did not mean that viewers of Televisa’s FTA TV channels were not able to share their views and experiences over social networking sites, as the broadcaster had instead created a wide range of Facebook pages and Twitter accounts that were specifically designed for individual soap operas and other popular TV programs.