BRAZIL and LATIN AMERICA. NETWORKS REGIONAL OVERVIEW January 2013

Transcription

1 BRAZIL and LATIN AMERICA NETWORKS REGIONAL OVERVIEW January 2013

2 Latin and South America Region Population of 590M Total TV HHs: 135M Pay TV HHs: 50M 21 Countries and select Caribbean islands Primary Countries Mexico Brazil Colombia Argentina Chile

3 Financials Combined EBIT Channels Ad Sales Crackle Total EBIT FY12 Actual LatAm Br 38,478 16,403 3,108 (2,776) 38,810 16,403 Total 54,881 3,108 (2,776) 55,213 FY13 EOY LatAm Br 46,463 9, (5,286) 42,142 9,996 Total 56, (5,286) 52,138 FY14 Budget LatAm Br Total 49,087 10,290 59,377 1,353 1,353 (7,565) (7,565) 42,875 10,290 53,165 Market Revenues Affiliate and Ad Sales Brazil Mexico Other LatAm Markets Crackle/ Ad Sales Total Revenues Insert financial notes FY12 Actuals 54,802 37,974 77,376 4, ,701 FY13 EOY 52,969 42,375 87,582 4, ,448 FY14 Budget 61,313 47, ,396 8, ,972

4 Market Focus - Brazil Population: Total HHs: 193M Total TV HHs: Pay TV HHs: 55M Pay TV Penetration: 28% 58M 15M Globo media group dominates market Broadcast TV 75% share of advertising Pay TV (Globosat) 50% share of advertising Growth in PayTV penetration. Expected to reach 50% in 2016 Telmex owned Claro (Carlos Slim) acquisition of Net Brazil system in 2012 Local content requirements

5 Brazil Revenues Market Share by Groups (subscribers) 2.9% 5.9% Ad Sales info - Insert 7.2% NET Services Sky 38.4% Via Embratel 16.5% Telefonica/TVA Oi 29.1% Others Slower growth in 2012 but picked up in fourth quarter

6 SPT Ad Sales Company Update Evolved into SPT exclusive resource no 3rd Party representation Geographic sales team expansion to Argentina and Colombia Focus helped grow ad revenues and selling success for key SPT initiatives Mexico s Next Top Model, Breakout Brazil, The Firm, Agora Vai and Crackle launch Expanded client access for theatrical marketing partners (i.e.- Nestle Wonka MIB3 partnership and attendance at BsAs Upfront) and increased sponsored exposure for Amazing Spider-man, Resident Evil, Skyfall and Total Recall Overcame constant redefining of local ad regulations regarding minutes and requirements Mexico FY2013 sales targeted to grow 25.3% despite new enforcement on ad minute limitations Reduced to a strict 4 minutes per hour from a typical 10 minutes Brazil FY2013 sales targeted to grow 4% (Q3 grew 11%) despite new TV regulations and ad allotment limitations Restructured commercial terms with SPT Brazil largest client Direct Response Outperforming key competitors in ad sales Year on Year (CY) growth terms: Mexico +19.9% vs. 4.3% (LAMAC Members) Brazil +9.3% vs. 3.0% (LAMAC Members) Digital business transforming into a market maker Successful sales strategic partnership with Microsoft (MSN) MNTM S3 Crackle has innovated the ad industry by monetizing free VOD Through Crackle SPT Ad Sales has amplified its digital offer serving as a lead in digital sales tool Non traditional screen advertising opportunities -- Mobile, OTT and Console

7 Brazil Ratings Highlights Performance of key programs UPDATE Once Upon a Time has launched as - #1 show for PayTV Moved CSI Miami from AXN to SET and achieving top ratings Criminal Minds and Unforgettable strong performers on AXN. Production of original content for SET (Time has Come) and Spin (Breakout) in pre-production SET and AXN rank in top 15 for PayTV channels (April 2012)

8 Market Focus - Mexico Population: Total HHs: Pay TV HHs: Pay TV Penetration: 112.3M 26.0M 10.8M 41.5% Televisa group is largest broadcaster and Pay TV operator Presidential election and Nieto took office in Dec 2012 Televisa using muscle to control growth of international programmers advertising.

9 Mexico Revenues Ad Sales - IRVING Affiliate Televisa Systems (5.3M) Ownership: Sky Mexico 59% Cablemas 100% Cablevision 51% DISH (3.6M) MVS 51% DISH 49% Megacable (1.6) Increase in PayTV penetration to over 40% in 2011 with growth of introductory cable packages Highest growth in DTH with launch of Dish in Dec 2008 and rapidly grown to over 3M subscribers

10 Mexico Ratings Highlights Performance of key programs Greys Anatomy - #1 show for PayTV Continued strong performance of CSI series on AXN Klaudia - Update Production of MNTM for SET Pre-production of season three now Ad Sales sponsorship budget of MX$30M SET and AXN rank as top 10 channel for PayTV channels (April 2012)

11 Local Productions increase To be inserted CONTINUE BUILDING TOP MODEL FRANCHISE MNTM S4 VNTM / ANTM (TIED TO SPONSORS FUNDING) DEVELOPMENT OF OP S THAT WILL ENHANCE THE BRAND REGIONAL DRAMA / DRAMEDY OTHER REALITIES THE AMC MODEL APPROACH OP S THAT ENHANCE THE BRAND CREATE VIEWER LOYALTY BECOMES THE HOME FOR THE BEST ORIGINAL CONTENT FOCUS ON BUILDING NEW SHOWS AS RISK TO LOSING MAJOR FRANCHISES

12 Market Focus Latin Region Venezuela continued political uncertainty Sub1 Sub2 Argentina economic situation Sub1 Sub2

13 CRACKLE

14 Crackle Enjoying An Early Success In Latin America MINUTES/VIDEO ON WEB Launched in March, 2013 in 18 countries, 6 different platforms, and 3 languages 3.4 million unique users in December 1.9 MILLION HOURS Spent on Crackle in December 4 Participating studios/distributors FY13 Revenues of $3.1M EST. over 50 advertisers and 75 campaigns SONY MGM DISNEY POLAR STAR 14 BRAZI L MEXICO CRACK LE YOUTUB E VEVO TERRA/SU NDAY TV 0.6 N/A Source: comscore SEPT 2012 (& Crackle Omniture GLOBO Sept N/A TELEVIS A N/A 3.5

15 Competitive Landscape Update with summary of the other channel groups

16 Competing Channel Packages 15 Channels 21 Channels Purchased in 2010 Chilevision (Free TV) 9 Channels Channels above do not include separate HD feeds

17 Additional Channel Packages 4 Channels 6 Channels MGM sold to Liberty/Chellomedia Cosmo sold to Liberty/Chellomedia to purchase the 50% did not own Viacom Launched Comedy Central in early 2012 Turner launched TBS in 2012 and converted a local channel brand