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Italy: Update on free-to-air and pay-TV - Venture Insights

Report Overview

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Italy: Update on free-to-air and pay-TV

PublisherEnders Analysis.
Publish Date December 9, 2010
Sector Fixed Line (Internet and Voice), FTA TV, Pay TV.

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In this presentation we highlight Mediaset’s star position among European FTA broadcasters, enjoying the highest share of its national advertising market (and profit margin), stable throughout digitalisation and secure for the future.

Mediaset Premium, the pay-as-you-go and subscription DTT service, grew customers rapidly up to 2010, leveraging both DTT expansion and the appetite for low cost football and film programming. This hampered subscriber recruitment at satellite pay-TV operator Sky Italia, which relaunched its sales in 2010 on heavy programming in programming, set-top boxes and marketing.

Sky Italia’s subscriber base may be just above that of Mediaset Premium, but Sky’s ARPU is 8x that of Mediaset premium, underlining the greater efficiency of the monthly subscription bundle in relation to PAYG pay-TV. Sky Italia is profitable while Mediaset Premium might just reach breakeven in 2010.