1. The European way to think the Digital World www.idate.org Overview of the TV markets in the 10 new EU Member States November 2004

2. IDATE © 2004 www.idate.org 2 26m TV households EU 15 85% (150m) 10 new EU members 15% (26m) Significant impact of Poland, Czech Republic and Hungary. Poland alone becomes the 6 th largest TV market in terms of TVHH. Other new members are the smallest EU TV markets. Most of these countries are below, or at best, at the minimum level to be attractive for investors and/or to create a competitive TV market. Total TV HH in the « EU 25 » in 2004: 176m Source : IDATE

3. IDATE © 2004 www.idate.org 3 TV reception: slightly more cable, slightly less satellite TV reception modes According to its high cable TV roll out, the new 10 members group affect the whole EU TV reception market by increasing the proportion of cable TVHH. Differences are however marginal with quite similar TV receptions modes Source : IDATE Terrestrial only TV HH

4. IDATE © 2004 www.idate.org 4 DTT and pay-TV: the road to digital ? Cable TV HH Cable remains analogue 10-20 channel line up Satellite TV HH Satellite is FTA TV analogue oriented Very low penetration rate of satellite pay TV. Poland is an exception with 1 M subs (7.5% of TVHH)

5. IDATE © 2004 www.idate.org 5 TV revenues booming TV revenues broken down by country - 2003 Source : IDATE 10 new members are among the most dynamic EU markets, thanks to : TV advertising : commercial TV channels launch TV subscription : growth potential for pay TV revenues

6. IDATE © 2004 www.idate.org 6 A potential for advertising revenues Advertising revenues split by media - 2002 Source : Carat TV Adspend per Capita in USD Source : IDATE, based on IP

7. IDATE © 2004 www.idate.org 7 Regulation: from transposition to enforcement Implementation of the legal framework for pluralism took place between 1991 and 1996. Television Without Frontier Directive was transposed between 2000 and 2002. Regulatory authorities implemented 10 new EU countries benefit from EU audiovisual public programs -MEDIA : audiovisual production competitiveness -EURIMAGES : european cinema Less regulation than in most EU15 countries -Market access : few constraints, only Poland, Cyprus and Hungary kept non EU members investments restrictions. -Program constraints : no more than European directive, except sometimes national language programs obligations.

8. IDATE © 2004 www.idate.org 8 Foreign investments: the US and German footprints Slovak Republic 18 EUR/month Selection of additional TV programms (german speaking, more or less 1/3 of additional channels) ARD, Das Erste, arte German, Bayerisches Fernsehen, Der Kinderkanal, Deutsche Welle, DSF, Eins Extra, Eins Festival, Eins MuXx,, Eurosport German, SR Fernsehen Sudwe, VOX, ZDF INFObox, ZDF.doku, Kabel 1, MDR Fernesehen, n-tv, ORF, Phoenix, Premiere World Info- Kanal, PRO 7, QVC Germany, RTL 2… UPC Direct (digital satellite) completes the cable TV coverage Basic package presented. Premium offers include HBO and adult channel Numerous TV channels are English speaking Slovakian channel is TA3, some channels are dubbed, subtitled in Slovakian Cable TV offer is more local (Slovak here) oriented (national generalist channels available) « With UPC Direct, you will be able to view, … over 100 various television stations, some of which are in Slovak or Czech »

9. IDATE © 2004 www.idate.org 9 Foreign investments: the US and German footprints Foreign channels language preferences Base : 2.1 M satellite TVHH (Croatia, Czech and Slovak Rep., Hungary, Poland and Slovenia) Source : SES Astra Satellite Monitor. European players -RTL Group : RTL Klub in Hungary (49%) US investors lead the game -Liberty Media: UPC: Czech Republic, Hungary, Poland, Slovak Republic, Malta SBS (20%) : TV2 in Hungary -Central European Media Enterprises (CME): 8 networks in 5 countries across Central and Eastern Europe, including Markiza TV in Slovakia and POP TV and Kanal A in Slovenia -HBO: HBO Czech/Slovakia, Hungary, Poland in the 10 new EU, + launch of few local channels