Top Banner
cscmediagroup.com
45

cscmediagroup - WikiLeaks

Nov 25, 2021

Download

Documents

dariahiddleston
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: cscmediagroup - WikiLeaks

cscmediagroup.com

Page 2: cscmediagroup - WikiLeaks

Historic growth of CSC Media

• Ten digital channelsacquired

• Four new channels launched

• Eight channelslaunchedon Freesat

+1

• Two newchannels launched

• Channel refreshes started

• Websites rolled out

• Three channelsrefreshed

• Five furtherchannels launchedon Freesat

• One newchannel launched

• One channel refreshed

• CSC moved todigital file delivery

• BuzMuziklaunches

• Flava and Bliss refreshed

• PopPower.com launched

• True Drama, Kix Power & True Christmas launch

• Channel Starz acquired• PopGirl and Chartshow

Dance refreshed• True Entertainment

launches on Freeview• Playout move to WRN• Ad-sales move to Sky

Media

• Two channels refreshed

• New advertising agreements withSky Media & Dolphin (Sony)

+1

2006 20092007 2008 2010 2011 2012 2013

2

Page 3: cscmediagroup - WikiLeaks

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

(m) Number of UK Digital TV Households

Dsat Dcab DTT (Freeview)

25m

16.8m

9.0m

4.9m2.3m

Total number of UK multichannel households

UK Television Market – Overview Digital satellite and free digital satellite continue to grow

Key Points

+ In October 2012 all UK TV households became digital multichannel. Platforms comprise Dsat, Dcab and DTT (Freeview)

+ CSC’s core distribution platform for its free-to-air channels in the UK is Dsat (Sky and Freesat) with some channels also available on Dcab (Virgin Media)

+ Dsat (pay and free) penetration in UK homes has grown by 52% since 2005

+ Free satellite (Free Sat from Sky and Freesat) is expected to grow at a 14% CAGR from 2010 to 2016

+ The Freesat platform is the fastest growing TV platform in the UK in terms of quarterly net additions

+ By 2014 Freesat will account for over 3m homes in the UK. This is a 43% improvement on Q1 2012 which stands at 1.4m

+ CSC has recently joined the Freeview platform which has 11m unique TV homes. 20m UK homes have a Freeview/Dsatcombination.

1.6

2.4

2.93.2

3.4 3.5 3.6

1.0 1.3

1.7 1.9 2.0

2.3 2.3

0.6

1.1 1.2 1.3 1.4 1.2 1.3

0.0

1.0

2.0

3.0

4.0

2010A 2011A 2012F 2013F 2014F 2015F 2016F

(m) Number of UK Free Satellite Households

Free Satellite Freesat Free Sat from Sky

CAGR: 14%

CAGR: 15%

CAGR: 14%

Source: BARB (from 2002 figures include homes with 2 or more reception capabilities. Satellite & Cable figures include both analogue & digital platforms) Techedge, Eurodata TV Worldwide, Attentional 3

Page 4: cscmediagroup - WikiLeaks

UK Advertising Market – Overview TV continues to be the most important advertising medium

Key Points

+ UK TV advertising revenue is expected to grow from 2012 to 2016 as TV remains the single most important advertising medium for brands

+ Digital devices are increasingly complementing the television experience as many people use a second display device (i.e. smartphone, laptop or tablet) while watching TV

+ In the UK, 80% of tablet owners and 78% of smartphone owners said they used their device while watching TV at least once a day

+ CSC’s digital strategy harnesses these digital devices to drive television impacts and market share growth

0.00.51.01.52.02.53.03.54.0

(£bn)UK Media Advertising Expenditure by Type

2009

2010

2011

2012

21.1%

13.7%

19.5%10.8%

9.3%

8.3%

5.8%

3.3%

3.4%2.1%

2.4%0.4%

2012 UK Media Advertising Expenditure by Type

TVInternet Display

Internet SearchDirect MailNational NewspapersRegional Newspapers

OutdoorConsumer Magazines

RadioDirectoriesB2B Magazines

Cinema

2.02.22.42.62.83.03.23.43.63.8

(£bn)Total UK TV Advertising Revenue

Source: Enders Analysis (October 2011 / January 2012), Sky /IHS Screen Digest, Nielsen

4

Page 5: cscmediagroup - WikiLeaks

CSC’s Strategic Focus

Grow Market Share + Increase market share in all genres providing opportunities for advertisers and sponsors

Grow Impacts + Grow commercial impacts to leverage ad sales negotiations and ensure continued price improvement

Increase Distribution + Increase UK distribution on Freeview and other, complementary digital platforms + Build international distribution infrastructure and maximise opportunities

overseas in both Pay TV and Free To Air (FTA)

High Quality Content + Invest in quality content and increase in-house production underpinning viewing and impact growth

More Channels + Harness CSC’s efficient operations to launch new channels and leverage existing content libraries

Efficient Cost Base + Maintain CSC’s low-cost model, increasing impressive margins and cash conversion

TechnologyDifferentiation

+ Drive CSC’s integrated broadcast platform to increase interactivity and maintain technological competitive edge.

+ Live linking of CSC’s channels to Social Media and its proprietary websites to maximise differentiation and increase ‘stickiness’.

5

Page 6: cscmediagroup - WikiLeaks

CSC’s Current Channel Distribution

Kids Music Movies / Entertainment

International

Digital Media Channels

6

Page 7: cscmediagroup - WikiLeaks

International Distribution and Pipeline for ExpansionKick-starting CSC’s international roll-out plan

Channel feed Territories Customers Feed launch date

Africa

Africa

Africa

South Africa & Sub-Saharan Africa

Jan 2012

Oct 2011

TBC: Discussions on-going

TBC: Discussionson-going

South Africa & Sub-Saharan Africa

Sub-Saharan Africa

Republic of Ireland

Republic of Ireland

South Africa & Sub-Saharan Africa

7

June 2013

Belgium

Belgium, Netherlands & Luxembourg

TBC: Discussions on-going

TBC: Discussions on-going

Page 8: cscmediagroup - WikiLeaks

CSC Total Impacts and Revenue – Our Key KPIsExcellent balance and growth through genre diversification and channel launches

Source: BARB/TechEdge; Kids: 4-15s, Music: 16-34s, Movies: 16+s. All Dsat (Tiny Pop also in Dcab)

(4-15 Kids, All Adult Movies commercial Advertising Impacts, 16 -34 Music)

0.8 0.9

1.5

3.72.1

4.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2006A 2013A

(bn)

Commercial Impacts

Music Kids Movies/Entertainment

Total: 4.4bn

Total: 9.4 bn 55%

20%

25%

2006 Advertising Revenue by Genre - £11.9m

Music

Kids

Movies/Entertainment

21%

47%

32%

2013 Advertising Revenue by Genre - £27.4m

Music

Kids

Movies/Entertainment

8

Page 9: cscmediagroup - WikiLeaks

Complementary Digital Media – Overview Harnessing technology and digital media to drive TV impacts

TV Impacts

9

Page 10: cscmediagroup - WikiLeaks

Music: 5 FTEs Kids: 4 FTEs Movies: 3 FTEs

Online: 5 FTEs

Scheduling: 5 FTEs

Production: 25 FTEs

Management, Finance & Administration: 6 FTEs

Commercial: 2 FTEs

Research: 2 FTEs

International : 1 FTEs

People and Culture Giving exceptional young people responsibility early in their careers

+ Young, positive and entrepreneurial culture

+ Average age 27, average salary £28k pa

+ 25% of employees have worked for CSC for 5 years

Most CSC young managers have worked their way up within CSC

10

Page 11: cscmediagroup - WikiLeaks

CSC Portfolio

11

Page 12: cscmediagroup - WikiLeaks
Page 13: cscmediagroup - WikiLeaks

CSC Kids – Demographic Profile

Boys 7-12

Kids 4-9

0%

50%

100%

Tiny Pop Pop Pop Girl Kix

Gender Profile

Girls Boys0%

50%

100%

TinyPop

Pop PopGirl

Kix

Age Profile

4-6 yr 7-9 yr 10-12 yr 13-15 yr

Kids 3 – 7

+1

Girls 7-12

+1

Boys 7-12

POP-UP

CHANNEL

13

Page 14: cscmediagroup - WikiLeaks

Well known branded programmes for children and parents to enjoy watching together, including brand new Care Bears, Franklin, Harry and his Bucket Full of

Dinosaurs and much more!

For 3-7 year olds

14

Page 15: cscmediagroup - WikiLeaks

On POP everything is fast paced and fun. Slapstick comedy, exploration, invention, art, make and do all add to the line up for 2013 .

Plus favourites Oggy and the Cockroaches and Sally Bollywood

For 4-9 year olds

15

Page 16: cscmediagroup - WikiLeaks

Returning series of the classics Sabrina and Zoey 101, back due to popular demand. Plus plenty of new live action comedy series and movies

For 7-12 girls

16

Page 17: cscmediagroup - WikiLeaks

Focussing on comedy and action, Kix has new series of Power Rangers, re-mastered classic anime series Dragon Ball Z Kai and new comedies including Total

Drama Island forming the backbone of the schedule

For 7-12 Boys

17

Page 18: cscmediagroup - WikiLeaks

For Power Rangers Fans2013

POP-UP

CHANNEL

Operation Overdrive

Wild Force(40 eps)

Mystic Force(32 eps)

Dino Thunder (38 eps)

Jungle Fury (32 eps)

SPD(38 eps)

18

Page 19: cscmediagroup - WikiLeaks

CSC Kids websites

19

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Tiny Pop Popfun Popgirl Kix

Average Monthly Page Impressions Q4 2014

0

20,000

40,000

60,000

80,000

100,000

Tiny Pop Popfun Popgirl Kix

Average Monthly Unique UsersQ4 2014

Page 20: cscmediagroup - WikiLeaks

Aqua Moon – CSC Skill-based, Social and Subscription Gaming

+ Aqua Moon JV (60% CSC ownership)

+ Operates a dedicated online skill-based gaming site for kids:www.poppower.com

+ Team of experienced illustrators, flash developers and web developers

+ Producing freemium mobile and tablet based app games marketed via the Pop Channels and virally

+ Integrated into the Pop channels with high scores on TV to hold viewers across breaks and build social networking

20

Page 21: cscmediagroup - WikiLeaks

CSC Music 21

Page 22: cscmediagroup - WikiLeaks

Over 20 years of Pop music heritage in the UK!

Chart Show give viewers a channel packed full of the latest releases packaged with exclusive content

+ The channel’s dominance in the UK means labels need to secure airplay on Chart Show to guarantee chart listing. CSC leverages this to secure first releases, exclusive content and interview time

+ CSC interviews 12-15 artists per month – A-list acts to UK newcomers. This content premieres on Chart Show and is then shared across CSC Music

+ Chart Show takes the lead on social media initiatives22

Page 23: cscmediagroup - WikiLeaks

Non-stop pop hits

+ The Vault draws upon CSC’s video vault of 30,000 music videos to deliver non-stop pop hits

+ The channel has found success in focussing on hits from the last five years along with themed Top 20-50 countdowns, artist vs. artist specials

+ The Vault has very clear positioning – with a mix of uplifting pop hits with carefully selected old favourites there to surprise

23

Page 24: cscmediagroup - WikiLeaks

The destination for urban music fans

+ Flava is the only music channel that is entirely dedicated to Hip Hop, R&B and Garage

+ The channel features videos from A-list stars such as Jay-Z , Rihanna and Beyoncé with are scheduled in charts or artist specials

+ Flava also has exclusive content to support its credible brand values with interviews with A list artists and programming packaged into Top review shows

24

Page 25: cscmediagroup - WikiLeaks

Contemporary temporary easy listening

+ Featured artists include; Adele, Take That, Westlife, Bruno Mars, Whitney Houston, Micheal Buble, Mariah Carey, Elton John and Sting

+ Regular artist interviews and music quizzes including: Movie Soundtrack Facts, Number 1’s Trivia and Where Are They Now?

+ Bliss positions itself as an easy listening channel for a slightly younger and more contemporary audience

25

Page 26: cscmediagroup - WikiLeaks

The definitive channel for rock fans!

+ Scuzz is 100% dedicated to the world of hard rock and metal and leaves no room for confusion

+ Bands like Foo Fighters, Bring Me The Horizon, Paramore, Metallica and You Me At Six deliver a carefully selected mix of music to cater for the broad church that is rock

+ Scuzz is a highly credible brand – maintained via its playlisting, its media partnerships with leading rock events and its exclusive and own produced content

26

Page 27: cscmediagroup - WikiLeaks

The biggest mixes from mainstream Dance

+ Chart Show Dance is targeted at the mainstream music market with dance mixes of mainstream artists such as David Guetta, Black Eyed Peas, Calvin Harris and Lady Gaga

+ Additionally CSC commissions exclusive dance mix one hour programmes that retain viewers and provide standout for the channel

+ Chart Show Dance also packaging up content into seasonal stunts using own produced idents and interviews

27

Page 28: cscmediagroup - WikiLeaks

FB users can send in:+ Messages+ Photos+ Track requests

BuzMuzik’s team of moderators check and publish all content and also drive interaction with topics and competitions

Viewers can interact using the Buz app

World’s first socially networked music channel

+ BuzMuzik picks the best and latest videos and then lets viewers pick which videos get played and lets them message each other live on-screen or see each other via photos

+ Viewers can engage via mobile or PC via Facebook or SMS or the Bz app.

+ There is a small charge per interaction to offset moderation costs but with the video window “squeezed” throughout advertising revenue will dominate

28

Page 29: cscmediagroup - WikiLeaks
Page 30: cscmediagroup - WikiLeaks

The home of 100% true stories

+ True Movies 1 offers a wide range of emotional and moving true stories, based on real people and actual events, 24 hours a day, 365 days a year

+ Films cover a variety of genres from missing children and family relationships to murder, miscarriages of justice and human rights

+ Our viewers are predominantly females aged 35+

+ 13 Premieres a month keeps the channel fresh and engaging

30

Page 31: cscmediagroup - WikiLeaks

True-to-life stories and author-based drama mini-series

• True Movies 2 takes the emotional core of True Movies 1 and combines it with strong narratives and mini-series

• The channel creates a unique and attractive mix, with series based on bestselling novels by authors such as Jackie Collins and Danielle Steel

• Our programmes and mini-series feature well known stars such as Helena Bonham Carter, Halle Berry, Patrick Stewart and Courtney Cox

31

Page 32: cscmediagroup - WikiLeaks

The best of British drama, timeless American classics and gripping documentaries

• TE has a winning combination of gritty dramas, mini-series, powerful true story movies, bestsellers and revealing Royal Documentaries

• Classic American series such as The Waltons and Little House on the Prairie

• The best of British drama including The Vice, Cold Feet, The Knock, Life Begins and At Home with the Braithwaites

32

Page 33: cscmediagroup - WikiLeaks

True Drama is the home of thought provoking Drama

• True Drama features a mix of powerful and emotional dramatic programming

• From hard hitting British Drama and gripping movies to moving mini-series & significant historical events

• True Drama shows award winning content from award winning actors

33

Page 34: cscmediagroup - WikiLeaks

CSC Operations

Page 35: cscmediagroup - WikiLeaks

CSC Operations – Content Acquisition Effective content acquisition strategy keeps costs down and drives impact growth

Content Create Distribute Sale & Consume

+ Maintain Competitive Pricing + Average price per movie <$5,000

+ Average price per kids episode <$1,000

+ Continued Content Investment

+ Licensors + Movies/entertainment – 20 distributors

+ Kids – 40 distributors

Content is typically licensed under a 36 month agreement 35

Page 36: cscmediagroup - WikiLeaks

Content Create Distribute Sale & Consume

+ Full service – creative conception to programme production

+ 10 Final Cut Server edit suites

+ Fully equipped green screen studio

+ Dedicated 2D & 3D animation team

+ Fully digital file delivery

+ Integrated playout solution

CSC Production - Fully Equipped, In-House Production Facility CSC’s content is increasingly produced in-house

36

Page 37: cscmediagroup - WikiLeaks

Technical distribution

Schedules Schedules

Dual SDI lines

Eutelsat 28A

Planning/Scheduling Content

Transmission Control

Grass ValleyBackup Servers

Grass Valley Main Servers

WarpMedia Storage

Compression and MUX

Uplink

Virgin MediaHead endContent

FTP Server

Astra 4A

Eutelsat ParisStellar DBS Cologne

Intelsat 20EutelSat 10A

Content Create Distribute Sale & Consume

37

Page 38: cscmediagroup - WikiLeaks

Content Create Distribute Sale & Consume

* Sky Media adjusts price for inflation/deflation

Advertising Sales

+ CSC sells its advertising impacts through Sky Media

Consume

+ CSC has carriage agreements with all UK paydigital platforms and both Freesat and Freeview inFTA

+ CSC licenses its channels to internationalbroadcasters at a fixed annual rate and also on aCPS basis

UK

International Sold by Consumed across

Consumed across Sold by

CSC From Production to Delivery – Sales & ConsumeBest of breed sales agents maximise value across UK and international platforms

38

Page 39: cscmediagroup - WikiLeaks

CSC Financials

Page 40: cscmediagroup - WikiLeaks

Income StatementStrong growth and industry leading EBITDA margins

5.9

8.5

9.8

11.1

14.1

15.0

19.7

24.8

29.3

36.6

41.142.9

0

5

10

15

20

25

30

35

40

45

50

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2011 2012 2013 2014 2015 2016

Re

ven

ue

£m

EBIT

DA

£m

EBITDA Revenue

Revenue and EBITDA

2013 proforma for effect of new Sky ad sales contract40

Page 41: cscmediagroup - WikiLeaks

2013 2014 2015 2016

Revenue (£m) Dec YE

Ad Sales 27.4 33.0 36.7 37.4

International 1.0 2.5 3.3 4.3

Other Revenue 0.9 1.1 1.1 1.2

Total Revenue 29.3 36.6 41.2 42.9

Cost of Sales

Fixed Costs (9.5) (13.0) (13.2) (13.3)

Variable Costs (8.2) (10.7) (12.2) (12.7)

Total Cost of Sales (17.7) (23.7) (25.4) (26.1)

Gross Profit 11.6 12.9 15.9 16.8

Overhead (1.8) (1.8) (1.8) (1.8)

EBITDA 9.8 11.1 14.1 15.0

Margin, % 33% 30% 34% 35%

Income StatementStrong growth and industry leading EBITDA margins

41

Page 42: cscmediagroup - WikiLeaks

Beyond The Business Plan

Page 43: cscmediagroup - WikiLeaks

Future Development PlansContinued diversification and growth initiatives beyond the business plan

International Office

+ Currently exploring feasibility/opportunity of opening a local office in South Africa for own and 3rd party channel/format distribution and independent ad-sales.

POP Movies Channel

+ CSC currently market-testing movies across CSC Kids channels

Marketing

+ CSC has limited marketing experience having achieved current levels of success with zero marketing spend. CSC considering its first national advertising campaign around its Freeview channel

Social Networking and Gaming

+ CSC has a robust strategy and roll-out pipeline. However, it is early days here and it only takes one ‘break out’ success to change the business model

Acquisitions

+ CSC considering FTA channel purchases in the UK alongside looking for complementary content libraries to acquire

43

Page 44: cscmediagroup - WikiLeaks

Executive Summary Exceptional operational and financial performance with a strong foundation for further growth

1. Strong Business Model + Leading FTA broadcaster with 16 profitable brands

2. Attractive Market + TV continues to be the single most important medium for advertisers (2013: £3.5bn)

3. Leading DistributionPlatforms

+ Channels available across all major UK Pay TV platforms reaching 15m+ UK homes (True Entertainment 25m+ homes). Exciting international opportunities in both Pay TV and FTA

4. Material Impact Growth

+ Commercial impacts across the group grew 115% between 2006 – 2013

5. Complementary Digital Properties

+ Building online and social media into the DNA of the business

6. Efficient Cost Structure + Leveraging economies of scale and scope to provide a cost-efficient infrastructure

7. Outstanding Profitability

+ Low fixed cost base creates high operational efficiency with industry leading EBITDA margins

8. Clear Expansion / Growth Opportunities

+ Grow UK impacts, increase UK distribution, expand international licensing and exploit other revenue streams

9. Experienced Dynamic Team

+ Entrepreneurial, young, loyal, dynamic and cost efficient culture - 2013 EBITDA per employee £171k

44

Page 45: cscmediagroup - WikiLeaks

cscmediagroup.com

45