Telecinco-Cuatro will dominate Spanish TV

Spanish broadcasters Telecinco and Cuatro will take between 44% and 50% of the entire Spanish TV ad market by 2012, according to analysts.

In the wake of Mediaset-backed Telecinco buying Cuatro, investment bank Morgan Stanley noted that the best case scenario for the group is it taking a 50% market share and delivering a 40% profit margin. The worst case scenario is a 44% market share and 18% profit margin, the bank added. The deal for Cuatro unlocks value in both broadcasters, according to Morgan Stanley, which added the combined group should be able to shave €50 million of costs from 2011.