VIA SATELLITE: Are there markets outside of Spain and Portugal which are attractive to Chello Multicanal?
Zulueta: We belong to Chellomedia that operates successful regional thematic channel companies in other European territories. Spain and Portugal are our main focus and we have no pan-European objectives. However, we are being quite successful in Africa. We have found opportunities through our Portuguese business and are growing in Portuguese-speaking Africa. Most of the Chello Multicanal channels are carried in Angola. We are also going to expand into Mozambique, and one of our documentary channels is being distributed in South Africa.
VIA SATELLITE: What is the next phase of Chello Multicanal’s growth strategy?
Zulueta: There is clearly a process towards industry consolidation. In a recessionary environment, one way to grow while cutting costs is of course through [merger and acquisition] activity. In Spain, there has been a wave of consolidation. The DTH platforms merged years ago. There has also been a merger of the cable platforms ONO and Auna, and we have also seen substantial consolidation among production companies. We are currently seeing consolidation among FTA (free-to-air) broadcasters. Telecinco, owned by Mediaset, and Cuatro, owned by Prisa, are in advanced discussions to merge their two broadcasting companies. As a thematic channel producer, it was obvious to us, that we needed to play an active role in this consolidation process. The acquisition of Teuve allows us to gain size and critical mass to stay relevant in a market that is changing quickly.
As far as other major initiatives we are working on, we will continue to focus on costs and explore new revenue streams in the non-linear channel world.
VIA SATELLITE: How do you see the broadcast landscape changing over the next 12 months?
Zulueta: The FTA landscape is changing rapidly in Spain with analog switchover completed, proliferation of national FTA channels and mergers among broadcasting companies. We are going to see further audience fragmentation and more industry consolidation with Telecinco and Antena 3 as the main players in terms of audience and market share.
In the pay-TV environment, we are also going to see changes. A DTT pay platform is being launched and that is also a significant event that could increase pay TV penetration, which at 25 percent, is quite low in Spain. In short, both in the free- and pay-TV environments, we are going to see massive changes in terms of business structures, audience distribution and technological developments. We certainly plan to be an active and leading player in all these exciting new developments.
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