Mediaset to increase non-free-to-air TV business to 20-25 pct of EBITDA by 2012

Mediaset to increase non-free-to-air TV business to 20-25 pct of EBITDA by 2012

	Published : Wed, 14 Mar 2007 17:31 By : Agencies Print this Story

MILAN (AFX) - Mediaset SpA said it is committed to increasing the weight of non-free-to-air (FTA) TV business to 20-25 pct of EBITDA by 2012 from the present contribution of almost zero, although FTA TV remains the group's core business.

The group said it is working on a project that will allow the group to migrate its pay-per-view clients into subscribers, increasing the company's average revenues per user (ARPU).

'This will allow us to compete for a share of the Italian pay TV market, which is worth around 2.5 bln eur and which is destined to grow,' vice chairman Pier Silvio Berlusconi said.

He added this would be a springboard for Mediaset to enter other distribution platforms at a later date.

Berlusconi said Mediaset is examining ways to strengthen the direct relationship with viewers in the distribution of content.

'Distribution will be not just on digital TV but on mobile phones, broadband and Internet Protocol TV,' he said.

Mediaset has already developed two digital terrestrial TV (DTT) multiplexes covering around 80 pct of Italy and a digital terrestrial network to broadcast TV via mobile phones.

Berlusconi said the group is also evaluating wholesale commercial agreements with telephone operators, adding it is interested in developing more direct contact with the operators.

Asked whether the more direct relationship might include the acquisition of a mobile telecoms company, Berlusconi said the group is interested in becoming a virtual mobile phone operator but denied any interest, for the time being, in buying a stake in a telecom operator.

stephen.jewkes@thomson.com

sj/ms1

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited