Audiovisual

Vocento has a presence in the audiovisual market, with a national DTT licence which enables it to broadcast two channels, regional DTT licences, a network of radio licences, shareholdings in content producers and the management of a catalogue of film rights.

Vocento via its 55% stake in the share capital of Sociedad Gestora de Televisión Net TV S.A. (“NET TV”) is one of the private companies to have a national free-to-air DTT license.

NET TV currently broadcasts Disney Channel and Paramount Channel, giving Vocento a presence in the niche television sector with international content suppliers who are global leaders in entertainment, guaranteeing the NET TV business for the medium and long term.

The combined channels had a share in December 2015 of 3.3%, according to data from Kantar Media. Their positioning in the thematic television market contributes to the Group’s overall profitability.

In 2015, NET TV consolidated its two channels during a period of new license awards. 2016 will be a year of continuity.

The presence of Vocento in the audiovisual production sector (the production of entertainment and drama programmes and the distribution of films) is based on Veralia Corporación and Veralia Contenidos, a holding company for audiovisual production companies, which includes BocaBoca Producciones, Europroducciones and Hill Valley, and Veralia Distribución de Cine, which has a catalogue of rights for 230 films.

In 2015, the Veralia production companies had various formats in development including “Hit, la canción” (TVE), the sixth series of “Conexión Samanta”, “21 Días” (both on Cuatro), “Los Vengadores” (Disney), “¿Bailamos?” (Canal Sur), “A Tu Vera” (Castilla la Mancha TV) and “Guinness World Records” (Canale5, Italy), as well as Christmas and New Year galas on TVE.

In January 2016, the programme ‘Conexión Samanta’, produced by the channel in collaboration with BocaBoca Producciones, was broadcast for some weeks by Cuatro, first on Saturday nights and then on Fridays. The programmes explored unusual issues such as the world of ‘baby adults,’ the trafficking of footballers, the world of wedding luxury and how to become a leader.

Veralia is also internationalizing its output. The “21 días” format has been successfully adapted in the Netherlands, Italy, France, Canada and Chile. Magic Mania, a format developed and produced by Veralia, has been sold to Canal+ France and Israel. Agreements have also been reached with various international companies to introduce new formats into the Spanish market.

In the film distribution business, Veralia Distribución de Cine, the agreement in 2013 with some minority partners of Veralia has reduced the risk of the impact of the business’s volatility and improved its prospects of profitability. In 2016, the strategy is to continue maximising the revenues from the existing catalogue.

In 2015, a highlight was the divestment of the Italian subsidiary Europroduzione, in line with our commitment to profitability and our intention to focus our production efforts in Spain. Europroduzione was Vocento’s only company outside Spain.

For 2016, we will focus our efforts on consolidating production levels and on the renewal of programmes, in order to maintain profitability. The arrival of new players as potential new clients is an opportunity. We will also maximise revenues from the film catalogue.

The development of our radio business is based on the alliance with Cadena COPE that was authorized by the Comisión Nacional de Competencia (CNC) on 15 March 2013. This is a strategic agreement that aims to reinforce a shared editorial line, especially with ABC, and to defend the same values.

Following the agreement, the broadcasters owned by various subsidiaries of COPE transmit channels including COPE, Cadena 100, Rock FM and Mega Star and close links have been created between the COPE and ABC brands especially in news bulletins. As well as working together, ABC also highlights the programmes, presenters and contents of COPE in its pages.

Likewise, the two groups have integrated the radio portals COPE, Cadena 100 and Rock FM on the ABC website to strengthen both media in the competitive online market for information and news.

In September 2015, Carlos Herrera joined the team at Cadena Cope for the next three years, which may be extended. The best rated broadcaster in radio returned after 20 years with the programme ‘Herrera en Cope,’ on weekday mornings, as the group looks to lead the sector in Spain.

2015 was a year of consolidation for the radio business and for creating value following the COPE agreement. Listener numbers were strong, with the audience rising by around one million to 2.671.000 according to the third EGM survey. In 2016, a similar trend is expected, with good listener numbers and results.