Spanish broadcaster Telecinco is expected to see its net advertising revenues rise by over 50% as a result of high price increases and boosted by the soccer World Cup. Investment bank Morgan Stanley has forecast that ad revenues will increase by 50.6% in the second quarter. The network has also been helped by the ad ban on public broadcast rival TVE.
The investment bank has applauded Telecinco’s strategy of forcing advertisers that want to advertise on its main channel to also spend on its bouquet of digital terrestrial channels. “TL5’s multichannel strategy is very efficient and well liked by advertisers. As a reminder, advertisers cannot air spots on TL5’s core channels without investing in TL5’s DTT channels. This allows TL5 to maximise its DTT revenues while taking into account the fact that DTT targets are different from the core channels,” it noted.
Analysts have also said that the broadcaster’s acquisition of Cuatro, which will be consolidated into the company’s financial results from September, heralds a major turning point for the Spanish broadcasting industry. “The timing of the Cuatro deal is not crucial for the 2010 numbers, it is however important for sentiment as the consolidation of Cuatro will mark the beginning of a new era for Spanish TV,” it added.
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21 October 2020 @ 12:30:00 UTC