Spain

Spanish public broadcaster RTVE has no licence fee income but receives subsidies from the state which make 26 % of its total income. Although it is still the market leader in terms of advertising income (35 % of the total advertising spending), it faces strong competition since the launch of Spanish commercial channels in 1991, in particular from Antenna3. Unlike in other European countries, the start of commercial television did not boost the advertising market. Broadcasters have to fight in a discounting battle in which the combined advertising income rises only gradually.

In order to reverse the downward trend of RTVE’s finances, Monica Ridruejo who previously worked for CNN and Canal+ has been appointed director general earlier this year. A further approach to cut the estimated accumulated $ 1.8 billion debt (making RTVE Europe’s biggest loss-making state broadcaster) could be a possible merger of TVE’s two television channels. Notwithstanding this financial problem, RTVE announced to the surprise of most media analysts an increase in its film financing budget by 67 % to $ 24 million.

Commercial Station Tele5 already appears to have turned the corner since shareholder Berlusconi introduced Maurizio Carlotti as director general last year. 1994 losses of $ 18 million have been turned to 1995 profits of $ 2.4 million.

In contrast, Antenna3 had pre-tax profits in 1995 of more than $ 40 million, an increase of 58 % on the previous year. This satisfying budget enables Antenna3 to invest in further projects. After already having launched a number of pay services in January 1996, its 20-channel digital pay-TV is due to launch this autumn through its cable television company Cable Antenna. It is also in talks about co-operating with Mexican Multivision in order to launch a Spanish-language channel for Latin America on DirecTV’s digital satellite system. Antenna3 is supposed to be the channel’s sole programmer while Multivision will be responsible for the technical support.

Also Canal Plus España will be launching a bouquet of more than 25 digital cable and satellite channels. Although not guaranteeing a success, it can gain from its experience with more than 1.3 million subscribers to its terrestrial pay-TV service.

© August 1996 by Jens Barkemeyer