my presentation for CME from February 2011

1. Analysis: European media landscape and trends Petr Illík February 2011

2. Main European media groups Source: Company.info All data from 2009 1US based, but present also in Europe ,2British Sky Broadcasting, data from 2010

3. Main European media groups

4. Main Competitors for CME and competitive environment - The Czech republic Českátelevize (public service): 4 channels (market share) – ČT1 (19%), ČT2 (5,9%), ČT4 (1,3%), ČT24 (1,9%) … 28% in total FTV Prima a.s (controlled by MTG): 2 channels – Prima TV (16,5%), Prima Cool (1,2%) … 17,7% in total 82% of population watches 4 major channels (Nova, ČT1,Prima,ČT2) daily TV Nova has highest advertising revenues, ČT financed also via subscription fees revenues (9% of its annual income) law limited allocation of ads on public TV from 3% to 1% to 0,5% broadcasting time + no advertising on public TV planned from 2012decrease of advertising revenues for ČT Switching off away from analog broadcasting moreopportunities for new ventures (BarrandovTV, …) However threat of new entrants is still moderate due to demanding financial requirements in order to obtain rights for popular TV programs Low growth of market expected towards 2015 –compound annual growth predicted to be 1,1%

5. Main Competitors for CME and competitive environment - Slovakia MAC TV (controlled by J&T) – 2 channels (audience share) –JOJ TV (31,1%), JOJ Plus (2,7%)…33,8% in total Slovak Television (STV; Slovenskátelevízia) – 3 channels – STV1 (14,8%), STV2 (3,9%), STV3 (1,0%)…19,7% in total More 85% of market share for 4 major channels (Markíza, JOJ, STV1, STV2) Trend: public TV is continuously loose its market share while private broadcasters gain it Importance of cultural and language diversity there Czech TVs and Hungarian speaking TV still holds significant market share Unlike in the Czech Rep. the biggest competitor for CME is privately owned TV Switching off away from analog broadcasting planned to be finished until 2012 Thanks to cultural and language connection with Czech Republic Slovak TV channels can broadcasts Czech programs without any dubbing significant reduction of costs

6. Main Competitors for CME and competitive environment- Slovenia RTV Slovenia (public service) – 3 channels (audience share) - RTV SLO 1 (20,7%), RTV SLO 2 (8,1%), RTV SLO 3(0,4%) … 29,2% in total MTG (Modern Times group) - channel TV3 (5,7%) RTV Slovenia financed mainly via subscription fees and media services to third parties however public service obligations, which are not always easy to meet, are required Broadcasting sector highly saturated + small market small advertising revenue for most of broadcasters Inadequate transparency of media market no official data on advertising revenue of Slovenian media Implementation of digital terrestrial broadcasting high switching costs even for biggest broadcasters possible threat of new entrants very limited unless they are generously financed

7. Main Competitors for CME and competitive environment - Croatia Croatian radiotelevision (HRT; public service) – 2 channels – HTV1 (28,2%), HTV2 (9,7%) … 37,9% in total Bertelsmann AG – 1 channel – RTL Televizija (21,5%) Very high importance of TV broadcasting in local media market (50% of public do not read newspapers or listen to radio) 77% of advertising revenues in media sector goes for TV broadcasting HRT has high influence on public opinion, its news are dominant source of information for general public but it lost about 10% of audience in last 4 years Commercial channels became more successful in area of entertainment but increasing tendencies to offer more news and informative programs growth of audience in recent years TV Nova 30% and RTL Televizja 27% of total advertising revenues in 2009

8. Main Competitors for CME and competitive environment- Romania Intact group – 5 channels – Antena 1 (11%) , Antena 2 (1%), Antena 3 (3,6%), Euforia (0,5%), Telesport (0,2) … 15,6% in total SRTV (public service) – 3 channels – TVR1 (5,1%), TVR2 (2,0%), TVR Cultural (0,2%)… 7,3% in total Realitatea-Caţavencu – 1 channel - Realitatea TV (5,7%) SBS (ProSiebenSat.1 Media) – 2 channels – Prima TV (4,2%), Kiss TV (0,4%) … 4,6% in total Popular topics for Romanian audience: political and economical topics, reality shows, soap operas and sport Trend in last last years: niche stations (sport, news) has started to gain more audience share in opposition to general interest channels SRT– regularly criticized thanks to its hybrid and non-standard financing system and political control Due to economic situation TV market continues to decline broadcasters has to keep or/and increase market share in order to stay profitable even heavier competition expected

9. Main Competitors for CME and competitive environment - Bulgaria MTG (Modern Times group) – 5 channels – Nova TV (20,6%), Diema (2,7%), Diema 2(1,0%), Diema Family (2,7%), Nova Sport (N/A)… 27% in total BNT (Bulgarian national television, public service) – 2 channels – BNT 1 (12,2%), BNT Sat (0,6) … 12,8% in total Public TV lose its market share every year, private channels take advantage of it while average viewing time is growing Important mergers & acquisitions in recent years: News Corp. sold bTV to CME, MTG bought whole share in Nova TV analysts called it “television revolution” Media market is believed to be very problematic due to its highly political dependency, ownership of media often non-transparent Implementing of digital terrestrial broadcasting 6 multiplexes (5 commercial + 1 public)  18 channels has been awarded license so far

10. How will the media consumption look like in 2020? Dominant platform of media consumption today: TV - analog/digital terrestrial broadcasting, cable TV, IPTV, SAT Publishing – printing is still the most used method for mass-production Media changes as technology advances: TV – invest heavily in new technologies (on-line broadcasting, web archives, on-demand videos) and try to differentiate themselves by targeting specific demographics (young men, women, kids – Prima Cool, Prima Love) and niche markets (minorities – Ethnic TV), as well as they specialize in specific sectors Publishing – market more conservative here. However not only physical products but also electronic versions of books (accessed via Kindle, Nook etc.) , magazines (Wired for iPad, Computer for iPad) and newspapers (The Daily – iPad-only newspaper)

13. Media in the Czech Republic: Industry profile, Datamonitor 2010

14. Školkay, A. (2010): Media landscape: Slovakia. Retrieved February 19, 2011, from http://www.ejc.net/media_landscape/article/slovakia/

15. Milosavljević, M.; Vobič,I.(2010): Media landscape: Slovenia. Retrieved February 19, 2011, from http://www.ejc.net/media_landscape/article/slovenia/

16. Buric, N. (2010): Media landscape: Croatia. Retrieved February 19, 2011, from http://www.ejc.net/media_landscape/article/croatia/

17. Ulmanu, A-B. (2010): Media landscape: Romania. Retrieved February 19, 2011, from http://www.ejc.net/media_landscape/article/romania/

18. media fact book Romania 2010, Initiative media S.A., Bucharest 2010 Retrieved February 19, 2011, from http://www.mediafactbook.ro/

19. Tabakova, V. (2010): Media landscape: Bulgaria Retrieved. February 19, 2011, from http://www.ejc.net/media_landscape/article/bulgaria/

20. German Expert: Bulgarian Media Market Most Problematic in EU, Novite.comRetrieved February 20,2011 from http://www.novinite.com/view_news.php?id=123784

21. TV market in Bulgaria, Mavise, Retrieved February 20, 2011 from http://mavise.obs.coe.int/country?id=29

22. Bhatia, M. (2009): You Can Take It With You: Future Trends in Media. Retrieved February 20,2011 from http://blog.nielsen.com/nielsenwire/online_mobile/you-can-take-it-with-you-future-trends-in-media/