Telecinco welcomes ad plan

Spanish commercial broadcaster Telecinco has welcomed plans by the country’s government to cut advertising on the public broadcaster and says that it expects to see a positive effect in the medium term.

“It is a very positive change for the sector,” Telecinco general manager Massimo Musolino told investors after announcing the company’s first quarter results.

However, investment bank Morgan Stanley is doubtful about the prospects for the advertising market. “TV ad spend is still down – 36% in April, and May is not shaping up better though visibility is too low to be definitive,” it noted.