DRAFT

Country Analysis
Spain
Contacts : renaud.fuchs@technicolor.com; marc.vogeleisen@technicolor.com
January 28, 2011

Improve our customer & market insight and quantify

our sales opportunities :
DRAFT
Context
Evaluate Opps DDG & Entertainment
services.

Angel Martin (TCH) would like to

update his market data and get a
refreshed view on his customers
opportunities with a focus on NSPs &
Broadcasters & Content Creators

Update its market understanding,

Identify & Quantify Sales opportunities in the

supply of the following devices & solutions

Priority 1:

Digital Home & STBs

Sound services

VFX

Priority 2:

Films & Post-production (done)

Play out (Broadcast services)

HES (disc logistics services)

Scope
DRAFT

NSPs refers to Digital Satellite and Digital Cable and IPTV Pay TV services providers,
xDSL, FTTH, Cable Broadband Services Providers,
mobile services providers over GSM (GPRS, EDGE, HSPDA, 3G, CDMA, WCDMA,

Approach, deliverables and time line

DRAFT

* Additional inputs from Sales team will be necessary

4

Agenda
Executive summary
Digital Home & STBs market overview

Markets size and key players

Markets dynamic and regulation

Market size and competition on Technicolor products and services

Main Spanish Account profile

Sound services Market Assessment

Market segment, market revenues, market evolution & change

Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment

Spanish VFX market

Key VFX studios in Spain per type of content

Digital Broadcast Market

Spanish Broadcasting industry changes

A complete reshaped audiovisual sector

Key Spanish players along the content value chain

Focus on play-out services per type of TV channels

Top five accounts wallet for the provision of play-out services

DRAFT

Executive summary

DRAFT

Spanish market is driven by Broadband and Free-to-Air digital television.

Due to economic crisis, most of NSPs are obliged to improve their EBITDA while containing
their CAPEX and cost of customer acquisition. In 2010, the private and public Media sector
has been reshaped, following the adoption of a new law on the funding of public broadcaster
RTVE.
Main area of growth for digital Home & Set top Boxes are :
Ultra Speed Broadband Internet over Cable & xDSL, in view of evolution
towards Fiber Network roll-out in 2011 onwards.
Triple-play and bundling services will be the most frequent response from NSPs.
Premium pay content (Canal+ bouquet, GolTV)
The evolution of the market shows that CPEs will be more versatile, offering more users
features and better user experience (High Definition TV, xPlay Gateways, higher internet
speed)

Agenda
Executive summary
Digital Home & STBs market overview

Markets size and key players

Markets dynamic and regulation

Market size and competition on Technicolor products and services

Main Spanish Account profile

Sound services Market Assessment

Market segment, market revenues, market evolution & change

Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment

Spanish VFX market

Key VFX studios in Spain per type of content

Digital Broadcast Market

Spanish Broadcasting industry changes

A complete reshaped audiovisual sector

Key Spanish players along the content value chain

Focus on play-out services per type of TV channels

Top five accounts wallet for the provision of play-out services

DRAFT

Spanish Market Digital Home & STB: Key Findings

DRAFT

09/06/15

Agenda
Executive summary
Digital Home & STBs market overview

Markets size and key players

Markets dynamic and regulation

Market size and competition on Technicolor products and services

Main Spanish Account profile

Sound services Market Assessment

Market segment, market revenues, market evolution & change

Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment

Spanish VFX market

Key VFX studios in Spain per type of content

Digital Broadcast Market

Spanish Broadcasting industry changes

A complete reshaped audiovisual sector

Key Spanish players along the content value chain

Focus on play-out services per type of TV channels

Top five accounts wallet for the provision of play-out services

DRAFT

Penetration rates by services : Mobile, FTA TV and BB well adopted

DRAFT
Key Take-away

SPAIN:

24% penetration of PAY TV remains low

vs. other western European countries
(average 28%).
High penetration of Terrestrial FTA and
cost of Pay TV bouquets are the two main
inhibitors.
New Fiber network roll-out, combined
with services bundling should change the
penetration rates over the next 5 years.
61% penetration of Broadband services .
Fiber deployment should enable a wider
subs. Base whereas Cable NSPs have
already released their Docsis 3.0 offers.
Mobile services are mainly post-paid
(64%) in Spain (VS. 74% in France) . It will
contributes to a faster adoption of wireless
broadband services.

PayTV penetration in Europe (2010) >> 28,6%

BB penetration in Western Europe (2010) > 65%

10

Spain market is driven by ADSL & Digital Terrestrial FTA

Digital Subscribers Base Evolution in 000 (end of Q3 2010)
SPAIN (source: DATAXIS 2010)

11

DRAFT

Telefonica & ONO are the players with the largest subscriber base in Spain
DRAFT
NSPs revenue of 9,5 billions
in Spain
Telefonica: Leading xDSL BB NSPs
but being attacked by cable
MSOs.
SOGECABLE: Leading PayTv NSP
with revenue increased , keeping
its content leadership (Canal+)
which is sold through others NSPs
Platforms.
ONO & JAZZTEL : The two
outsiders in the market. One fast
growing player on xDSL and Fiber
(Jazztel) ; the second capitalizing
on its cable offers and service
bundling, but facing refinancing
issues (ONO-AUNA)
ABERTIS : The New entrant in
Digital PayTV using digital
terrestrial network widely
available and attractive pay-TV
content.

Households Spain=
12

Market size : SPAIN is a growing BB market with a high adoption of digital

Terrestrial FTA
DRAFT
Spain

Spain

Evolution of PAY TV & Broadband Subscribers Base (in 000)

(end of Q3 2010 vs. end of Q3 2010 vs. Y11 estimate (sources: DATAXIS 2010, Technicolor)

+ 713 000 Broadband subscribers (+ 8%) Y09oY10

+ 243 000 Pay TV subscribers (+ 6%) Y09oY10
+ 7 millions FTA DVB-T users (+59%) Y09oY10
13

Agenda
Executive summary
Digital Home & STBs market overview

Markets size and key players

Markets dynamic and regulation

Market size and competition on Technicolor products and services

Main Spanish Account profile

Sound services Market Assessment

Market segment, market revenues, market evolution & change

Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment

Spanish VFX market

Key VFX studios in Spain per type of content

Digital Broadcast Market

Spanish Broadcasting industry changes

A complete reshaped audiovisual sector

Key Spanish players along the content value chain

Focus on play-out services per type of TV channels

Top five accounts wallet for the provision of play-out services

14

DRAFT

Market dynamics, growing & shrinking accounts

DRAFT
4%

Major growth area in 2010

15

Major growth area in 2011

Market dynamics, growing & shrinking accounts

NSP
Players

Subs
Growth
09/10

Inhibitors

Drivers

Telefonica will continue its growth

especially in BB. IPTV seems to be more
challenging to sell-in.

Incumbent Operators
(Fixe & mobile) .
Drives the NGA .
Stakeholder in the
Content industry.

Financial crisis still

puts pressure on
CAPEX and therefore
on investment in new
networks.

Next Generation
Acces, Fiber roll-out,
Mobile broadband
subs.

+5%

ONO is continuing its growth (+4% in

2011) for all its services.
Launch of Zapper HD (100Ku @ 7075/unit)
Launch of HD in 2011 with most likely a
STB from Cisco (Nagra/Tivo). Similar to
Virgin media STB

Quality of its HFC

network. 1,4 m BB
subs.

Higher price pressure

from xDSL NSPs
(Telefonica, Orange,
Jazztel)
Financial difficulties
put pressure on
CAPEX and SAC.

Docsis 3.0
Quality and high
bandwidth offered
Introduction of HD
PVR with DVBT tuners
and HD Zapper in
2011

-7%

SOGECABLE should be able to recapture

subs. But not more than +2% in terms
of growth rate in 2011.

Attractiveness of
content offered and
HD quality.

Distribution of Canal+
bouquet through
competitors
platforms.
Digital Terrestrial TV

HD channels.

+52%

JAZZTEL continues its growth (+15%

estimated in 2011) focusing on ORLA
(mid-sized municipalities). Deployment
of its voice over IP services.
OTT offers with dedicated apps instead
of IPTV

Ownership of Fiber
network in several
high density area.
Attractive pricing
policy. Bandwith
offered.

Limited capability
of bundling BB
services with mobile
broadband.
CAPEX and churn
rate still high limiting
FCF.

ORLA (small ILEC

installation in midsized municipalities.
Subs. Base
approaching the
critical mass (1m
subs.)

ONO

SOGECABLE

16

Enablers

+6%
TELEFONICA

JAZZTEL

Trends 2011

DRAFT

Impacts from regulatory changes ?

DRAFT

The creation of NGA will question NSPs Business models & services offers
Possible impact
on Broadband
NSPs ?

1) NSPs which are not owning theirs network and/or relying on a pure
Unbundling business model may face lower ARPU
2) NSPs may push their customers towards mobile where margins are
higher and services differentiation possible;
3) The key question is the trade-off that will be made by Telefonica in
2011 strategic investment :
option 1 : only investing in upgrade for its mobile network
option 2 : only investing in NGA

Possible impact
on PayTV NSPs ?

17

1) It could encourage some BB NSPs ((Telefonica, Orange) to give up

IPTV and move to OTT services
2) Cable MSOs will react by promoting VOD services, UGC, Web-To-Tv
apps, and NAS

SPAIN: 2010-11 Total Wallet per Service Type

Spain

DRAFT

Evolution of annual Wallet spends per

Service Type (in 000 )
(source: Technicolor estimates & syndicated data)

Slight increase of
Wallet 2011 for
Broadband mostly
driven by more
bandwidth
offered by Cable
NSPs (Docsis 3.0)
and Telefonica /
Jazztel First
FTTX deployment

18

The relaunch of
digital Free-to-Air
DVB-T in Spain is
continuing to
capture viewers.
DVB-T STBs are
widely available in
retail outlets and
new channels have
been added.

SPAIN : 2010-2011 Total Wallet per NSPs

DRAFT

= 80%
( 176 m ;
3,3
millions
access
devices
purchased)

19

SPAIN 2011 : NSPs facing the financial crisis

DRAFT

Key findings for 2011: A slightly decreasing wallet in which is not offset by volume
purchased. Financial crisis is clearly impacting NSPs, despite market potential for Ultra
Broadband and n-Play Solutions.

ONO is almost flat, capitalizing on BB cable subs. Base.

TDT Abertis, is in line with CE Retail market.

Orange , after subs. Losses in 2010, should re-deploy its 3-Play offerings.

20

Sogecable more focused on replacement / refurbishing policy while decreasing its CAPEX.
JazzTel, after tremendous subs. growth in 2009-2010, is growing at a more reasonable rate.

09/06/15

SPAIN: 2010-2011 Wallet per NSPs & per Services

DRAFT

= 80%
(meaning a
total of 176
m spending in
2011)

6 accounts with a wallet

21

> 10 m each

SPAIN: 2010 Wallet per NSPs & per Services

DRAFT

= 20%
(meaning a
total of
15 m
spending in
2011)

4 accounts with a wallet

22

< A$ 10 m each

Agenda
Executive summary
Digital Home & STBs market overview

Markets size and key players

Markets dynamic and regulation

Market size and competition on Technicolor products and services

Main Spanish Account profile

Sound services Market Assessment

Market segment, market revenues, market evolution & change

Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment

Spanish VFX market

Key VFX studios in Spain per type of content

Digital Broadcast Market

Spanish Broadcasting industry changes

A complete reshaped audiovisual sector

Key Spanish players along the content value chain

Focus on play-out services per type of TV channels

Top five accounts wallet for the provision of play-out services

23

DRAFT

Telefonica Spain : the incumbent NSPs

DRAFT

Company
Descriptio
n

Group Telefonica, S.A. (Telefonica) is one of the

world's largest telecommunications companies.
The company provides fixed and mobile
telephony services, data and business-solutions
and services, wholesale services to
telecommunication operators, mobile business,
value added services, wireless data and Internet,
The company also engages in media and
contact center activities through investments in
Telefonica de Contenidos and Atento,

Services
Penetration

Key Access
Devices
Suppliers

Headquarters : Madrid, Spain

Key data

Foxtel:
Services
Offers

Access
Products by
subsidiaries
24

259,000 employees in the Group

Group Revenues 2009 57 billions (decrease of
2.27% from 2008)
Organized by segment : Telefonica Spain,
Telefonica Europe, Telefonica Latam.
Revenue for Telefonica Spain 2009 = 19 billion
down 5.7% over 2008.
34,000 employees in Telefonica Spain.
BB Subs (Spain) 2010 = 6,5 m (gain
subs.2009/2010 400K)
fixed and mobile telephony services
data and business-solutions and services,
wholesale services to telecommunication
operators,
mobile business, value added services,
wireless data and Internet (Movistar)
Media (including Sogecable/Digital +)
Modems & Gws
IP STB
VoIP telephony
Mobile terminal

Key Business
Issues

Strategic
Moves

Strategy for
sustaining
ARPU & Net
Subs Growth

Sources : Dataxis, MPA, Merrill Lynch, UBS, IMS Research, Advanced TV, Infonetics

3-play penetration ( %age out of total Subs. Base)

VOD adoption / usage
Canal+ bouquet well distributed over all key
competitors (Orange, Jazztel, ONO)

Huawei, ZTE (modems, GWs)

Dell (wireless access with smartphones & Laptops)
Ericsson / Alcatel -LU (4G infra)
Samsung Tab (Galaxy)
Financing FTTX and VDSL2 roll-out
Installation of local LECs in small cities may
intensify competition.
Encourage the take-up og IPTV services
Retain BB subs.
The company agreed with Prisa, and Sogecable to
purchase a 21% stake in Distribuidora de
Television Digital, S.A., which includes the pay TV
services (DIGITAL +) of the Prisa Group.
LTE (4G mobile) trials start end of 2009.
Large investment in Unified Communications
equipment in order to tackle the FMC market.
Acquisition of Tuenti (social networking) in Q3
2010
High Speed internet offers (xDSL & FTTX)
Triple play with Digital + TV bouquet

SOGECABLE (PRISA) : the leading pay TV

Company
Descriptio
n

Grupo PRISA is one is one of the major

independent Spanish-language media
groups. It is the leader in Spain and is, in
turn, formed by companies that are leaders
in their respective business sectors.
Presence in Broadcasting, Publishing, Media,
Internet, Entertainment
SOGECABLE : The company's key business
activities include Digital television, Cinema
production (Sogecine) and distribution
(Sogepaq), purchase and management rights,
and publicity and other businesses.
Headquarters in Madrid, SPAIN
Quoted in Madrid Stock Exchange
(NIF:A28297059 )

Key data

Prisa Group = 15,000 employees

Revenues 2010 3200 m
EBITDA 2010 = 674 m
Sogecable Subs. Pay TV = 1,7 m (loss of
subs.2009/2010 100K)

PRISA

Services
Offers

Foxtel:
Access
Products by
subsidiaries

25

Radio, Press, Publishing

Broadcasting, Internet, Entertainment
Pay TV Satellite
SOGECABLE : Satellite PayTV, Terrestrial
TV (Cuatro), Cinema Production, Film
distribution , audiovisaul right
management.

From SOGECABLE / DIGITAL + :

SD & HD Digital Set Top Boxes
Digital HD PVR

Sources : Dataxis, Current Analysis, Reuters,

DRAFT

Services
Penetration
Key
enabling
Techno
suppliers
Key Access
Devices
Suppliers
Key Business
Issues

Strategic
Moves

Strategy for
sustaining
ARPU & Net
Subs Growth

HD penetration ( %age out of total Subs. Base)

VOD adoption / usage
Canal+ bouquet well distributed over all key
competitors (Orange, Jazztel, ONO)

Conditionnal Access : NDS

MiddleWare Pay TV : NDS
Migration to MediaHighway CDI in 2011-12

Technicolor, Pace
Possibly Cisco in 2011

Reducing debt
Higher satellite capacity for higher HD penetration
Differentiation from Content offered vs. IPTV NSPs
rivals
Promoto 3D Content and increase HD channel lineup
Broadcast 3D Content in 2010 (Sport)
PrisaCom which groups all digital activities
Acquisition of Santillana publishing house for
accelerating the internationalization of the group.
Sell of Cuatro to Telecinco and 22% of Digital+ to
Telefonica and Telecinco. It result a stake in
Telecinco of 18%
HD Content and packages
PVR (Subs. Retention)
Multi-room (subs. Retention)

JAZZTEL : the fast growing BB NSPs

DRAFT
Company
Descriptio
n

Key data

26

Jazztel is an holding company, listed (85%

floating), providing telecom services.
It includes Jazz Telecom SA, Banda SA,
Banda26 SA, JazzPlat SA.
Jazztel has deployed a Fiber optic telecom
network in high density business districts
employing SDH & DSL based on the unbundling
Telefonica ILEC.
Headquarters : Spain, Madrid
Revenues 2010 (E) 606m (+ 24% vs 2009)
2400 employees
Market Cap = 868 m
EBITDA margin 2009 = 8%
Fast growing Company: +120% in 5 years
Churn rate high (> 15%) & Flat ARPU (41,8 /Subs.)
Subs. BB 2010 (E) = 804 000 (+34% yoy)
Positive Net Income in 2010 (+4m) after 3
consecutive negative income.
EBITDA > CAPEX in 2010

Services
Offers

Retail Broadband Internet (54% of total Revenue)

High bandwidth internet access (up to 1MBps)
Voice over IP, data,
Resell of Canal+ bouquet through 3-play services

Access
Products

DSL modem, routers, GWs

VoIP terminals,
Tablets could be an area of interest in a pure OTT
approach ?

Services
Penetration

Key Access
Devices
Suppliers

Key Business
Issues

Strategic
Moves

Strategy for
sustaining
ARPU & Net
Subs Growth

Sources : Dataxis, HSBC, SANTANDER, WRIGHT Investors, Ahorro Corporacion, Jazztel

Most of Jazztel BB subs have a high bandwidth

internet access thanks to Jazztel own fiber
network.
More than 50% of subs. Base are dual / triple play
users.

Huawei (router wifi 3G)

Comtrend

Keep gross margin level in limiting SG&A and

Increase of SAC in 2011.
Negative working Capital prevents growth
Increase its presence in small cities (less than 50
000 people) through the new Telefonica leased
circuits wholesale offer (ORLA)
Has stopped its IPTV service (Jazztelia) in Q2 2010
and focus now on OTT solutions.
Jazztel is (since 2010) a target for Vodafone M&A
or Orange Spain >> BB market consolidation
Jazztel has signed a MVNO agreement with Orange
for the provision of mobile services.
New development of Ethernet Virtual Private Lan
Service.
Quality of services,
Speed of internet access
No installation fees
OTT instead of IPTV,
Applications : Online Video Content, photo sharing
and access to social networks through the TV/PC

ABERTIS : the fast growing BB NSPs

DRAFT
Company
Descriptio
n

Key data

Group Revenues 2010 (E) = 4,1 b (+4% vs 2009)

Abertis Telecom : 539 m in 2010
employees
EBITDA margin 2009 = 61%
290 000 subs in Digital terrestrial TV (TDT
Premium)
Leading DVB-T signal carrier in Spain (2500
centres)

Services
Offers

Broacasting facilities
Digital Pay TV over DVB-T
Ethernet Carrier
Mobile network Carrier (B2B based on Tetra
technology)

Access
Products

27

ABERTIS Telecom is a subsidiary of ABERTIS

group . A group listed in Madrid, with a total
Y09 revenue of 3,9 billions .
ABERTIS Telecom is a 100% subsidiary
specialized in Mobile Network (Tretra based)
TV & Radio Broadcast facilities.
In 2007 Abertis bought 32% of Eutelsat and
Main shareholders are CVC, Caixa Bank .
Floating at 39% .
Headquarters : Spain, Barcelone

Digital DVB-T STBs based on CAM (CA module).

Labelized TDT Premium and sold in Retail and on
the web.

Services
Penetration

Key Access
Devices
Suppliers

Key Business
Issues

The relaunch of a Pay TV on Terrestrial network is

pretty new but adoption is fast.
Some channels remains popular in Spain : GolTV for
example.

Strong, Engel, Humax, Sagem, Pace, ...

Ability to enrich the content offer (nber of

channels)
Adress the regional digital terrestrial market with
specific channels

Strategic
Moves

Stake in Eutelsat , and Hispasat opening up access

to satellite broadcast capacities in hispanic
countries.

Strategy for
sustaining
ARPU & Net
Subs Growth

Focus on retail and web for the provision of digital

STBs equipped with a conditional access modules.

Sources : Dataxis, HSBC, SANTANDER, WRIGHT Investors, Ahorro Corporacion, Jazztel

ONO : the leading Cable Service Provider

DRAFT
Company
Descriptio
n

Key data

Services
Offers

Access
Products

28

ONO is the leading cable MSO in Spain thanks

to its take-over AUNA in 2005 for 2,2 billion.
ONO is financially backed by a large
consortium of European investment Banks
Headquarters :

Revenues 2010 (E) = 1,45 m (79% made in

Residential)
EBITDA /Sales = 51%
CAPEX 2010 = 225 m
Churn rate = 15%
ARPU 2010= 50,8 (+1% vs 2009)
Digital Subs. Pay TV = 790 000 (+4% vs 2009)
BB subs. = 1,44 millions subs. (+4% vs 2009)
Second largest PayTV services provider and BB
provider in Spain.
4,7 million of HRTM upgraded with Docsis 3.0
(representing in CAPEx of 61m)
Pay Tv cable
Cable Broadband Internet
VoIP
Wholesale

SD & HD Digital Set Top Boxes

Digital HD PVR
Cable Modem, routers and GWs
VoIP telephony
TOTAL CAPEX 2010 for all CPE = 36m

Services
Penetration

HD is going to be launched in 2011

Ultra High Broadband Internet (30MBps) : 40,000
subs. = 3% penetration
2 and 3 play penetration rate : 82% (+7% vs 2009)

Key
enabling
Techno
suppliers

Strong partnership with TiVO for enriching the TV

experience
Conditionnal Access : Nagra
MiddleWare Pay TV : TiVO

Key Access
Devices
Suppliers
Key Business
Issues
Strategic
Moves
Strategy for
sustaining
ARPU & Net
Subs Growth

STBs : Samsung, Cisco (Ex Scientific Atlanta)

GWs (Docsis 3.0) : Cisco, Netgear
Modem, Router Docsis 2.0 : Cisco-SA,
Dlink,Technicolor, Arris, Netgear
VoIP : Huawei
High bank debt
Reduce SAC and CAPEX for generating Free Cash
Flows
Reduce churn rate
Reduce the variable part of ARPU
Completion of the issue of 700m Secured Bonds

Ultra High Broadband Internet (Docsis 3.0)

HD Content and packages
Focus on lower churn bundles including telephony
Promote the GOL TV in several subscription
packages
Stimulate the pay VOD
Keep high the installation fees for limiting the
churn

Sources : Dataxis, HSBC, SANTANDER, WRIGHT Investors, Ahorro Corporacion, ONO Investors Relations

Matrix Business concerns & Commercial Strategies per NSPs

Business Concerns
Maximize content
value

DRAFT

NSPs

Commercial Responses

Business
Impacts

SOGECABLE
ONO

Distribute premium content on VOD

and catch-up TV;
Roll out HD content
Integrate a DVB-T tuner in the ONO
STBs

Lower Churn
Maintain ARPU

Adapt to BB
consumer
behaviors

Telefonica
Jazztel
ONO

Offer high speed rate (up and

downstream);
increase market reach with new
infrastructure
Content anywhere, anytime
Facilitate User Generated Content

Subs Acquisition
Increase ARPU
Better EBIT/CAPEX
ratio

Diversify on multiplatform (tablet,

Telefonica
Jazztel

IPTV (Telefonica)
Mobile BB (Telefonica)
OTT (Jazztel)

Lower churn
Bundled services /
products
Lower SAC

Telefonica

Simplify media consumption

Develop premium
subscription,
Generate
potential new
revenue streams

smartphone, TV, PC,

NAS)

Promote added
value services
(video and data)

29

(one box, unified U.I, intelligent RCU,

NAS)

Social network apps

Agenda
Executive summary
Digital Home & STBs market overview

Markets size and key players

Markets dynamic and regulation

Market size and competition on Technicolor products and services

Main Spanish Account profile

Sound services Market Assessment

Market segment, market revenues, market evolution & change

Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment

Spanish VFX market

Key VFX studios in Spain per type of content

Digital Broadcast Market

Spanish Broadcasting industry changes

A complete reshaped audiovisual sector

Key spanish players along the content value chain

Focus on play-out services per type of TV channels

Top five accounts wallet for the provision of play-out services

30

DRAFT

Sound Services : Market segments /Geography

DRAFT
Cinema
- National Production (Soundtrack addition)
-Multinational Produccin (Dubbing).
TV/HV
- Series and TV movies (Dubbing and/or Soundtrack addition)
-Documentaries (Voice and/or Soundtrack addition)
Videogames (Dubbing)
Advertising (Soundtrack addition)
Others: Dubbing to regional languages different to Castilian.

90% of the business for sound services is localized in Madrid & Barcelona:
- Madrid is more driven by TV/HV market segment
- Barcelona is more oriented towards sound services to Cinema

31

09/06/15

85m Market revenues in 2009 : 50% for TV, 25% for Cinema, 20% for
dubbing in regional languages.
DRAFT

2008-2009 : The increase of DVB channels and the needs for more podcast
have increased the business volume for the Sound Services.
2011 should not be higher in total revenue than 2009.
32

09/06/15

Market Evolution : towards consolidation & in-house solution for TV

DRAFT
There is a general tendency in TV producing companies to take care
directly of the dubbing management of their series.
A way of increasing technical, artistic and legal control over their
products.
Commercial market goes through Agencies and used to give all post
image and sound to the same post house.
The main cinema and TV producing companies have the policy of
working with two reference studios. (Excepted Buena Vista which
works with a unique contractor for dubbing Disney Character Voices Intl,
DCVI.

33

09/06/15

Sound Services : SoundDub, Tecnison, Sonoblok leading providers

DRAFT

34

09/06/15

Sales mix by key competitors in the provision of sound services

Name

35

Cinema

TV / Home Video

Others

Key facts

SOUNDUB

6%

90%

4%

For every Disney Product, exclusive

contract. Almost sole supplier to
Universal Spain

TECNISON

25%

72%

3%

New facilities opened summer 2008

103 TODDAO

50%

50%

Key customers : spanish cinema and

independent distributor

BEST Digital

85%

12%

3%

Growing in cinema. Dolby Premium

installed.

MediaSound

80%

20%

Mostly TV series without long-term

contract

09/06/15

DRAFT

Target the TV /HV market segment ?

DRAFT
TV/HV spanish content producers : 32m spent /year

Local TV

(regional languages)

producers : 7m spent /year

Highly fragmented customers base

http://www.catalanfilmsdb.cat/es/empresas/productora/mercuri-societat-general-de-produccio/1098/

Catalan Films & TV

Nicolau Mestre 23 int 1
08021 Barcelone (Espagne)
Tel +34 935 524 940
Fax +34 935 524 953

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09/06/15

Agenda
Executive summary
Digital Home & STBs market overview

Markets size and key players

Markets dynamic and regulation

Market size and competition on Technicolor products and services

Main Spanish Account profile

Sound services Market Assessment

Market segment, market revenues, market evolution & change

Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment

Spanish VFX market

Key VFX studios in Spain per type of content

Digital Broadcast Market

Spanish Broadcasting industry changes

A complete reshaped audiovisual sector

Key Spanish players along the content value chain

Focus on play-out services per type of TV channels

Top five accounts wallet for the provision of play-out services

37

DRAFT

VFX Market in Spain : a limited number of players

Visual effects spanish market has been initially driven by animation
films (CGI based).
Studios with growing expertise in 3D and visual effects (VFX) have
focused on TV commercials.
Madrid has become in couple of years the city for VFX Commercials.
7 studios are leading. Most of studio are independent ones, except
ZeligStudio (Group Molinare) and Infinia (Groupe MediaPart /Imagina
holding). Since VFX exists, 400 VFX commercials have been made in
Madrid Studio according to Visual Effect society.
Studios in Barcelona are more focused on VFX Films (drama,
animations). 4 studios are leading, 2 of them are clearly part of
Filmax Entertainment (Bren entertainment & SixBirds).

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09/06/15

Key VFX Studio in Spain : specialized on Commercials

FilmBakers. Visual Effects supervision, Design, Pre-production, script breakdown, Digital
Compositing, Visual effects and animation for feature films and broadcast.
t: +34 914 458 479.
The Silence is a motion design and VFX studio based in Madrid, focus on advertising
for tv and film, creative 3D and others audiovisual interactivity.
The studio works for clients around the globe covering the whole process of
projects, offering from conceptual script and motion design to visual effects and
postproduction.
Leframe Audiovisual Design is a film & design led Production Company. We specialize in
post production, motion graphics, editing, vfx and graphic design for TV and Film. We also
work with - Web design, illustration and print based design *Production for Publicity.
infinia. Part of Molinare Group. Post Production, Digital FX & compositing Based in
Madrid & Barcelona. Barcelonas office is specialized in visual effects for TV commercials
as well as a complete equipment for sound postproduction and a department devoted to
DVDs copyright.

Source : mandy.com

ZeligStudio . Part of MediaPro company. Design studio specialized in broadcast design

projects and motion graphics, fully structured to provide design, art direction, animation,
direction, production and post production services.
Comodo. Motion Graphic & Broadcast design. Based in Barcelona. Digital Effects. TV
commercials. Key customers : ONO and Canal+ .
Quanvision is an award winning company founded in 2001 in Marbella Spain, focusing on the
creation of digital content for a broad range of industries and the development and design
of audiovisual concepts for todays media platforms and distribution channels.
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09/06/15

Key VFX / CGI Studio in Spain : specialized on films & Animations

Bren is part of Filmax Entertainment, an independent company with 100% Spanish capital
and an international focus, dedicated to the creation, production, postproduction,
distribution and exhibition of audiovisual content for the entertainment industry.
Bren Entertainment was founded in 2000 as a CGI animation studio. Our specialty is the
production of animation films, which so far have garnered 5 awards Goya and a more
remarkable success in the international market.
El Ranchito is an award winning visual effects and digital post-production company working
primarily for the movie and advertising industries. We have participated in the postproduction of over 40 feature films and several VFX commercials. Our work has been
honored with national and international awards, among them 5 Spanish Flim Academy
Awards and 11 nominations.
lion Animation Studios was founded in 2002 to create state-of-the-art computer animated
movies for worldwide theatrical release using its own purpose-built cutting-edge
technology to achieve a unique visual animation experience. 250 highly talented and
experienced artists, program developers, high-tech engineers and other professionals from
over 20 nations work together at Ilion on Planet 51, the studios first CGI animation feature
which is currently in production.
SIXBIRDS - JOSE POZO (President). Accomplished Executive Producer and Director in
animation feature films, documentary, and advertising. One of his most notorious projects
is the feature film El Cid, the Legend (Filmax Animation, 2003). It is sold in 28 countries
and obtains several international awards, including Goya for Best Animation Feature Film in
2003. Furthermore, he acts as Creative Producer on feature animation films such as
Gisaku (2004 Filmax A- SEEI) and Nocturna, a Magical Adventure (2006 Filmax A.
Animakids).

VFX Company database: www.imdb.com & www.visualeffectssociety.com

40

09/06/15

Agenda
Executive summary
Digital Home & STBs market overview

Markets size and key players

Markets dynamic and regulation

Market size and competition on Technicolor products and services

Main Spanish Account profile

Sound services Market Assessment

Market segment, market revenues, market evolution & change

Key suppliers, and Identified accounts to target for TV/HV sound service provision

VFX Market assessment

Spanish VFX market

Key VFX studios in Spain per type of content

Digital Broadcast Market

Spanish Broadcasting industry changes

A complete reshaped audiovisual sector

Key Spanish players along the content value chain

Focus on play-out services per type of TV channels

Top five accounts wallet for the provision of play-out services

41

DRAFT

Spanish Broadcasting industry: major changes in 2010

Since January 2010, advertising has been
removed from all RTVE channels.
Funding now based on new tax mechanism
on Private Broadcasters revenues.
Several Mergers, acquisitions have
characterized the Year 2010

TV audience ranking

New TV audience ranking

Before M&A operations

After M&A operations

_______________________________

#1 TVE La Primera : 16,4%

#2 Telecinco : 15,1%
#3 Antenna 3 : 14,7%
#4 Cuatro : 8,2%
#5 La Sexta : 5,5%
#6 TVE 2 : 3,8%
(source Kantar Media)

42

DRAFT

The new law on

the funding of
public broadcaster
(RTVE) in 2009 has
speed up the
complete reshape
of spanish
audiovisual sector.

_______________________________

#1 Telecinco + Cuatro + Digital+ : 25,3%

#2 TVE La Primera : 16,4%
#3 Antenna 3 : 10,9%
#5 La Sexta + GolTV : 11%
#6 TVE 2 : 3,8%

Possible merger
in 2011 according to
several financials
sources and Press.

The reshaped Spanish Audiovisual sector : 4 new configurations

DRAFT

18%

41%

56%

22%

5%
Channel
Telecinco

April 2010 :
Telecinco took over
Cuatro from
Sogecable

Channel
Cuatro

Dec 2009 : Telecinco took 22% of Digital +

from Sogecable

April 2010: ONO sold Teuve (a 10 channels Bouquet) to

Chelomedia (Chellomulticanal in Spain) its company
Factorias de canales, one of the first channels producer
in Spain.

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09/06/15

78%

22%

2010 New changes

in shareholding

The reshaped Spanish Audiovisual sector : 4 major new configurations

DRAFT

2011 > Possible Merger between La Sexta

& Antena 3

20%

20%

40%

51%

20%

40%

Prodigius:
A 2010 joint project with
MediaPro for TV films
production in Spain
Home Entertainment
DeAPlaneta .
2010 Partnership with the Nber
one in Home Video Renting &
Selling (SAV)

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09/06/15

40%
40%

38%

Key Spanish players per type of Media services

Group

45

TV Channels
Broadcast

09/06/15

Content
Production

Content
Post-Prod

Content
Play out &
Media services

DRAFT

Content
distribution

The Play-out services is driven by niche channels & local channels.

Source : Mavisse.com 2011 & Technicolor estimates

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09/06/15

Play out services : the Top Five are PRISA (Sogecable), RTVE, LIBERTY,
MEDIASET, TELEVISIO DE CATALUNYA

Theses accounts
represent 55% of
total Play-out
spends in Spain :
22m out of 40m

Source : Mavisse.com & Technicolor SA

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09/06/15

APPENDIX

48

Assumptions taken for Play-Out Wallet calculation

Main services
provided by
Technicolor

Model

49

09/06/15

Channel playout (basic service)

Forecast based on:

Number of TV channels broadcasted over any network
Multiplied by an average annual transmission fee per channel (TDCD estimates):
240k for generalist, 200k for live news and sports, 120k for niche channels and
260k for global brands
It is assumed that all channels move to managed services for play out