Patricia Domingo Aaron Calatayud

Loránd János Xavier Jardí

Rokas Buciunas

Structure of Communication and Advertising Media

The european media

group report

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INDEX

2. The main private actors in the European media system are

22. The owners of the main private actors in the European media system are

28. What specific companies do these media groups own

49. How the largest media groups are financed, with special focus on advertising

57. Bibliography

57. Webography

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THE MAIN PRIVATE ACTORS IN THE EUROPEAN MEDIA SYSTEM

First of all, we want to explain how the EU has become what is today. It started in 1951 with the emergence of The European Coal and Steel Community (ECSC). It was a six-nation international organisation (Belgium, Luxembourg, France, Italy, West Germany, and Netherlands) serving to unify Western Europe during the Cold War and it was the first organisation to be based on the principles of supranationalism. The six countries signed a treaty to run their heavy industries-coal and steel, a common way. Thus, none can individually produce weapons of war against the other, as in the past. 25th of March of 1957, based on the successful treatment established the European Coal and Steel Community; the six countries expanded the cooperation to other economic sectors. Signed the Treaty of Rome creating the European Economic Community (EEC), or 'common market'. The goal is people, goods and services can move freely across borders. Finally, in 1993 and with the help of the Treaty of Maastrich, the EU was borned. Its main objective was to develop a single market trought a standardized system of laws with the 'four movement freedoms' of: goods, services, people and capital. Citizens are concerned about environmental protection and joint actionon security and defense. Since 2000, expansion continues: The euro is the new currency for many Europeans and on September 11, 2001, when a hijacked airliners are flown into buildings in New Yorkand Washington, becomes a leader in the "fight against terrorism." EUcountries begin to work more closely against crime. When, in 2004, ten new countries join the EU, the political divisions between Eastern Europe and west are finally declared healed.

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1.1 List of the largest private media groups in Europe

Position Corporation Country

1 Bouygues SA France

2 Vivendi SA France

3 Bertelsmann Germany

4 Thomson Reuters Corporation Canada/UK

5 Lagardère SCA France

6 Reed Elsevier Uk/ The Netherlands

7 Mediaset Italy

8 Promotora de Informaciones SA Spain

9 Wolters Kluwer NV The Netherlands

10 ProSiebenSat. 1 Media AG Germany

11 Sanoma Finland

12 Investment AB Kinnevik Sweden

13 RCS MediaGroup Italy

14 Daily Mail & General Trust UK

15 Georg von Holtzbrinck Germany

16 ITV UK

17 Indepentment News & Media Ireland

18 Axel Springer Germany

19 Schibsted Norway

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1.2 The largest private media groups in Europe Companies Revenues Place of

birth Number of employees

Place of current location

Founders

1.Bouygues SA

46, 47 billion France 145.150 France Francis Bouygues (1952)

2.Vivendi SA 33,74 billion France 43.208 France Napoleon III (1853)

3.Bertelsmann AG

21,40 billion Germany 106.000 Germany Carl Bertelsmann (1835)

4.Thomson Reuters 13,44 billion UK 50.000 Canada Roy Thomson (1934) and Paul Julius Reuter (1851)

5. Largardère SCA 10,92 billion France 28.510 France Matra hachette and Lagardère Group (1991)

6. Redd Elsevier PIc/NV

7,64 billion UK and Holand

30.200 UK, Holland, USA

Merger of Elsevier and Redd Inernational PLC (1993)

7.MediaSet Spa 5,66 billion Italy 6.285 Italy Silvio berlusconi (1978)

8.Grupo Prisa 5,32 billion Italy and Spain

13.885 Italy and Spain Jesús de Polanco (1958)

9. Wolters Kluwer NV

4,5 billion Netherlands 18.240 Netherlands Wolters, Noordhoff, Kluwer and Samson (1836)

10.ProSiebenSab. 1 4.05 billion Germany 4.749 Spain Leo Kirch (2000)

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1.2.1 BOUYGUES Is a French industrial group headquartered in the 8th arrondissement of Paris, France. Bouygues is listed on Euronext Paris exchange and is a blue chip in the CAC 40 stock market index. The company was founded in 1952 by Francis Bouygues (educated at the École Centrale Paris, 1946) and since 1989 has been led by his son Martin Bouygues. - 1965: Development of civil engineering and public works activities (engineering structures, earthworks, infrastructure, etc.) - 1972: International operations are launched with the Tehran Olympic complex (first prestressed

concrete triangular truss). Creation oh the Bouygues logo. -1978: Founding of "Maison Bouygues" (catalogue homes), sold in 1990 - 1982: Francis Bouygues is named "Manager of the Year" by the magazine Le Nouvel

Economiste. - 1984: Bouygues acquires ETDE, specialising in energy supply and transmission, and Saur,

France's third-largest water supply company. Saur was sold to PAI Partners on 15 February 2005, with the exception of its African subsidiaries.

-1986: Acquisition of the Screg group, France's leading roadworks contractor, comprising Colas, Screg Routes and Sacer. Bouygues becomes the world’s leading construction firm. Acquisition of Dragages and Smac Acieroïd (waterproofing) -1987: Acquisition of TF1: Bouygues becomes the main shareholder (25%) and operator of France’s leading television channel. -1990: Acquisition of Losinger, Switzerland's third-ranking construction group, whose subsidiary, VSL, is world leader in post-tensioning. Francis Bouygues founds Ciby 2000, a feature film production company, which stopped its production activities in 1998 -1994: Bouygues increases its stake in TF1 from 25% to 34%. Bouygues gains a licence to operate France’s third mobile phone network under the DCS 1800 standard. -1996: the company launched Bouygues Télécom. -1997: Bouygues Telecom signs a loan agreement for FF 15 billion

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-1999: Bouygues raises its stake in Bouygues Telecom from 34% to 54%. -2002: Bouygues increases its stake in Bouygues Telecom from 54% to 65% by acquiring Telecom Italia's interest -2006: the company acquired 23.26% of Alstom. -2007: On 4 January 2007, TF1, M6 and Vivendi sign a final agreement to bring together the pay-TV businesses of Groupe Canal+ and TPS in France as part of Canal+ France, a new group controlled by Vivendi

Business structure

Telecom/media services and new construction businesses (construction, roads, buildings, etc.)

-Construction

-Bouygues Construction (100% share): public works, electricity, maintenance -Colas group (96.6% share): roadworks, construction and maintenance -Bouygues Immobilier (100% share): residential, corporate, commercial and hotel real estate and urban development, property development -BINA Istra (16% share): motorway development and management

-Telecoms - Media

-Bouygues Télécom (89.5% share): mobile phone network -TF1 Group (43.1% share): audiovisual group; with TF1 itself owning the Eurosport, LCI, TV Breizh, Odysée, and History channels. TF1 also owns 34.3% of Publications Metro France, a free-distribution press group.

-Energy - Transportation

-Alstom (30.8% share): railways, electric energy production equipment and services

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1.2.2 VIVENDI SA Formerly known as Vivendi Universal, is a French international media conglomerate founded in 1853 by Napoleon III Vivendi is at the heart of the different worlds of content, platforms and interactive networks like music publishing, film production, publishing, pay TV services, Internet, telecommunications and video games.

It combines the world leader in video games (Activision Blizzard), the world leader in music (Universal Music Group), the French leader in alternative telecoms (SFR), the Moroccan leader in telecoms (Maroc Telecom Group), the leading alternative telecoms provider in Brazil (GVT)and the French leader in Pay TV (Canal+ Group).

A few dates to remember

It was 14th of December of1853, when a water company named Compagnie Générale des Eaux (CGE) was created by an Imperial decree of Napoleon III. It remained largely focused on the water sector. However, following the appointment of Guy Dejouany as CEO in 1976, CGE extended its activities into other sectors with a series of takeovers. Beginning in 1980, CGE began diversifying its operations from water into waste management,energy, transport services, and construction and property. In 1983, CGE helped to found Canal+, the first Pay-TV channel in France, and in the 1990s, they began expanding into telecommunications and mass media, especially after Jean-Marie Messier succeeded Guy Dejouany on June 27, 1996. In 1996, CGE created Cegetel to take advantage of the 1998 deregulation of the French telecommunications market, accelerating the move into the media sector which would culminate in the 2000 demerger into Vivendi Universal and Vivendi Environnement. In 1998, Compagnie Générale des Eaux changed its name to Vivendi, and sold off its property and construction divisions the following year to what would become Vinci. Vivendi went on to acquire stakes in or merge with Maroc Telecom,Havas, Cendant Software, Anaya, and NetHold, a large Continental European pay-TV operator. Beginning in 1998, Vivendi launched digital channels in Italy, Spain, Poland, Scandinavia, Belgium, and the Netherlands. In July 2000, Vivendi spun off its water and waste companies—once its core business—along with interests in other public service sectors such as transport into Vivendi Environnement Vivendi Universal Entertainment was created in December 2000 with the merger of the Vivendi media empire with Canal+ television networks and the acquisition of Universal Studios from Canadian company Seagram. On December 2, 2007, Vivendi announced that it would be merging its Vivendi Games unit with Activision in a $18.8 billion deal.[5][6] This will allow the merged company, Activision Blizzard, to rival Electronic Arts, the world's biggest video games publisher Finally in 2010 Vivendi completes the acquisition of Vodafone’s 44% stake in SFR. The Group has achieved its strategic objective to own 100% of SFR.

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Business structure

1.2.3 BERTELSMANN AG Bertelsmann AG is a multinational media corporation founded in 1835, based in Gütersloh, Germany. This company operates in 63 countries and its revenues have become in 21,40 billion

A few dates to remember On July 1, 1835, the printer Carl Bertelsmann (1791-1850) founded C. Bertelsmann Verlag in Gütersloh, Germany, having already successfully operated a lithographic printing shop here since 1824. its origins are based on the publication of religious books and related policy and gradually spread to the publication of novels. After the Second World War the company was closed but in the 1950s, Bertelsmann expanded with the bookclub Bertelsmann Leserring (Book Club) and entered the music market with the founding of the LP label Ariola Records in 1958. In 1964 Bertelsmann entered the movie market with the purchase of the Ufa Filmproduktionsgesellschaft. It sold Ufa's cinema chain in the 1970s. In 1969 Bertelsmann bought into the Gruner und Jahr publishing house. Since the 1980s, Bertelsmann has expanded internationally: Bertelmann bought the American Arista Label (1979), Bantam Books (1980), Label RCA Victor and Doubleday (1986)and Windham Hill Records (1992-1996). 2000: Bookspan was created by Time Warner and Bertelsmann

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From 1995 to 2000 Bertelsmann had a major Internet service provider (and associated content) joint venture with AOL that operated throughout Europe.

In 2003, the new CEO Gunter Thielen expanded the music branch BMG with the buying of Zomba Records.

In 2004, BMG set up a joint-venture with Sony Music to create Sony BMG, reducing the Big Five of music companies to the Big Four. BMG Music Publishing, the world's third largest music publisher, remained wholly owned by Bertelsmann at the time, but was sold to Universal Music Publishing in 2006.

Also in 2004, the London Borough of Camden, England, brought anti-social behaviour orders (ASBOs) against Sony Music UK and BMG for alleged fly posting. Illegal fly posting by the two companies is thought to save them £8 million a year in advertising costs in Camden and cost the Borough £250,000 to clean up. Falling to comply with an ASBO can result in a jail sentence of up to 5 years.

In July 2006 Bertelsmann AG purchased back 25% of own company from Groupe Bruxelles Lambert.

As of September 1, 2007, Bertelsmann agreed to pay music publishers $130 million to settle a copyright infringement lawsuit brought on by its deal with Napster. They took over complete ownership of Bookspan.

Finally, in 2008, Bertelsmann completed the sale of its 50 % stake in Sony BMG to Sony Corporation of America. Sony has since renamed its now wholly owned music business to Sony Music Entertainment. Business structure After the Sony BMG joint venture was given up in 2008 and the Direct Group division disbanded in 2011, Bertelsmann currently maintains four corporate divisions:

-RTL Group, Europe's biggest broadcaster of radio and television, which is also the umbrella division for Bertelsmann's movie and TV production enterprises -Gruner + Jahr, the biggest magazine publisher in Europe -Random House, the world's largest trade book publisher -Arvato, an international media and communications service provider BMG Rights Management replaced BMG Music Publishing, concentrating on music rights management. The division is currently forthcoming. Together with its five major divisions Bertelsmann holds assets in more than 200 companies and enterprises worldwide. Direct Group was disbanded as a separate corporate entity in June 2011, its businesses subsequently being transferred to the Corporate Investments division in Bertelsmann's Gütersloh corporate headquarters

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1.2.4. THOMSON REUTERS This Corporation is a provider of information for the world's businesses and professionals and is created by the Thomson Corporation's purchase of Reuters Group on 17 April 2008.Thomson Reuters is headquartered at 3 Times Square, New York City, USA. The Woodbridge Company, a holding company for the Thomson family of Canada, owns 53% of the group,which operates in 100 countries, and has over 55,000 employees.

A few dates of history

[The Thomson Corporation + Reuters Group= Thomson Reuters]

Reuters Group was founded by Paul Julius Reuter in 1851 in London as a business transmitting stock market quotations. Reuter set up his "Submarine Telegraph" office in October 1851 and negotiated a contract with the London Stock Exchange to provide stock prices from the continental exchanges in return for access to London prices, which he then supplied to stockbrokers in Paris in France. It was acquired by the British National & Provincial Press in 1941 and first listed on the London Stock Exchange in 1984. Reuters began to grow rapidly in the 1980s, widening the range of its business products and expanding its global reporting network for media, financial and economic services. The company was involved in developing the use of radio in 1923. Reuters began to grow rapidly in the 1980s, widening the range of its business products and expanding its global reporting network for media, financial and economic services.

In other hand, Thomson Corporation was founded by Roy Thomson in 1934 in Ontario as the publisher of The Timmins Daily Press. He consolidated his media position in Scotland in 1957. In 1959 he bought the Kemsley Group, a purchase that eventually gave him control of the Sunday

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Times. He separately acquired the Times in 1967. He moved into the airline business in 1965, when he acquired Britannia Airways and into oil and gas exploration in 1971 when he participated in a consortium to exploit reserves in the North Sea. In the 1970s, following the death of Lord Thomson, the Company withdrew from media selling the Times, the Sunday Times and Scottish Television and instead moved into publishing, buying Sweet & Maxwell in 1987. In 1989, Thomson Newspapers was merged with The Thomson Corporation. In 1996 The Thomson Corporation effectively doubled its size and ensured future profitability by purchasing West Publishing, a purveyor of legal research and solutions including Westlaw.

Finally, on April 17, 2008, Thomson Corporation acquired Reuters Group and togheter formed Thomson Reuters. In 2009 Thomson Reuters completes the unification of its dual listed company structure. 2010: Thomson Reuters Foundation created TrustLaw, global service for free legal assistance and anti-corruption news.

1.2.5 LAGARDÈRE SCA Lagardère is a French-based multinational conglomerate headquartered in the 16th arrondissement of Paris. The group once covered a broad range of industries but is now largely focused on the media sector, in which it is one of the world’s leading companies. Headed by Arnaud Lagardère, the firm does business in nearly 40 countries and is structured around four main business lines: its book and electronic publishing division (Lagardère Publishing) includes the major imprint Hachette Livre; while the Lagardère Active unit encompasses newspaper, digital media and magazine publishing (including Hachette Filipacchi Médias), radio and television broadcasting and production and advertising sales. The Lagardère Services unit includes store retail, largely in airports and railway stations, and Lagardère Unlimited engages in sports and talent management, sports academies, event management, marketing of sports broadcast rights and management of sports venues. The company also holds a 7.5% stake in the aerospace and defence firm EADS, which was originally created from, amongst other entities, the Lagardère subsidiary Aérospatiale-Matra. A few dates of history

In 1826, Louis Hachette buys Bréfid, a Paris booktore and lays the foundation for what is todar one of Hachette’s main areas of activity, in the media sector: bokk publishing, the press and distribution. Created in 1945, Matra (Mechanics/Aviation/Traction) was the company behind several technological projects. In 1990, Matra Espace and the aerospace division of Gec Marconi came together to create Matra Marconi Space, the top European space company.

In 1988, the group’s first major success abroad was the acquisition of Grolier Encyclopedias in the United States.

In 1992, after a major year-long restructuring, Matra Hachette and Lagardère group were born. In the early 1990s, Jean-Luc Lagardère turned to television, and became head of La Cinq.

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In 1994 with Arnaud Lagardère commanding, Hachette Livre launched the first multimedia encyclopedia, Axis, which gave it a dominant position in multimedia. In 1994, Matra Hachette Multimedia presented EPSIS, the first image-substitution process for advertising. In 1998, Hachette Multimedia was born of the consolidation of the multimedia division of Hachette Livre and Grolier Interactive (online educational services). A strategic agreement signed in 2000 by Lagardère and Deutsche Telekom to provide Internet service led to the merger of T-Online and Club-Internet. In 2000, Hachette Distribution Services created Relay, an international brand specializing in selling media products at public points of sale. That same year, Lagardère and Canal+ got into digital television. In 2001, Lagardère acquired the Virgin Stores brand and Virgin Megastore in France. Hachette Filipacchi Médias has continued its growth by taking a 42% stake in the Marie-Claire Group. In 2004, the Group acquired 40% of Editis (formerly Vivendi Universal Publishing). Lagardère took advantage of the growth of TNT to launch the youth channel Gulli in partnership with France Télévisions. On May 31, 2010, Lagardère Sports changed its name and became Lagardère Unlimited, a new branch of the group specializing in sport industry and entertainment.

On 28 March 2011, Lagardère SCA signed a contract for the sale of its international magazine business (102 titles) to Hearst Corporation for €651 million.

Business structure

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1.2.6 REED ELSEVIER Reed Elsevier is a world leading provider of professional information solutions in the Science, Medical, Risk, Legal and Business sectors. The Reed Elsevier group is a dual-listed company consisting of Reed Elsevier PLC and Reed Elsevier NV. His emergence was in 1993 with the merger between Elsevier and Reed International PLC. Headquarters’ Corporation are in London and Amsterdam.

A few dates of history

Reed Elsevier has a long comiento going back to late 19th century and the work of two businessmen, one English and one Dutch national. On the one hand, Albert E Reed in 1894 created a newsprint plant, which would become the foundation for future business. Reed International STI subsequently reorganised in order to concentrate portfolio STI publishing and information on Businesses, disposing of last STI Manufacturing Operations DURING 1987/88. On the other hand, Jacobus George Robbers laid the foundations of What Was to Become Elsevier NV, When in 1880 a number of publishers and booksellers ESTABLISHED Dutch pooled their interests.

After the Second World War the company diversified and achieved considerable growth as a publisher of scientific journals. In the 1970’s Elsevier acquired major interests in Dutch national newspapers and commercial printing activities

In 1993 Reed International PLC (now renamed Reed Elsevier PLC) and Elsevier NV (now renamed Reed Elsevier NV) contributed their respective businesses to form Reed Elsevier. The combined businesses operate through two jointly owned companies: Reed Elsevier Group plc (which owns the publishing and information businesses); and Elsevier Reed Finance BV (which owns the financing activities)

Business structure

Reed Elsevier came into existence in January 1993, when Reed Elsevier PLC and Reed Elsevier NV contributed their business to two jointly owned companies. The first of these is Reed Elsevier Group plc, a UK registered company which owns the publishing and information businesses. This company is equally owned by the two parent companies, Reed Elsevier PLC and Reed Elsevier NV.

The second is Elsevier Reed Finance BV, a Dutch registered company which owns the financing

activities. This is 61% owned by Reed Elsevier NV and 39% owned by Reed Elsevier PLC.

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Reed Elsevier PLC and Reed Elsevier NV have retained their separate legal and national identities and are publicly held companies. Reed Elsevier PLC's securities are listed in London and New York; and Reed Elsevier NV's securities are listed in Amsterdam and New York.

1.2.7 MEDIASET Is an Italian company dedicated to the television media, listed on the Italian Stock Exchange and is controlled by Fininvest Group, owned by Silvio Berlusconi. It is chaired by Vice-Chairman Fedele Confalonieri and Pier Silvio Berlusconi is the son of former Prime Minister of Italy. Much of his study lies in Milano 2, the area of the city of Milan, from which began issuing Telemilano A few dates of history

Mediaset Group's story began almost thirty years ago, in 1978, with Telemilano, a local Milan-based broadcaster that became Canale 5 two years later and began broadcasting nationally. Canale 5 was subsequently joined by Italia 1 (bought from the publishing group Rusconi in 1982) and Retequattro (acquired from Arnoldo Mondadori Editore in 1984). Television area was called RTI and became established with three national analogue networks, supported by an advertising sales company, Publitalia '80, that exclusively collects advertising for all three channels, and two other companies, Videotime, that manages TV technology and production activities, and Elettronica Industriale that guarantees signal distribution through the management of the broadcasting infrastructure. In1997 Mediaset expands outside Italy with the acquisition of a 25% stake in the Spanish broadcaster, Telecinco.

In 1999 Mediaset Group expands its web-based activities with Mediaset.it and Mediaset Online (in 2001 will became TgCom) , a daily online news service, is accessible from a range of media (internet, TV, radio, Mediavideo teletext and mobile phones).

In 2005 The Group launches Mediaset Premium, a pay digital terrestrial television service that offers viewers live Serie A football, with a pre-paid card and without a subscription. Mediaset Premium also has a pay-per-view offer including films (including first TV-screenings), theatre and live events.

In 2008, Telecinco enters the North American market with the acquisition of a 29.2% stake in Caribevision, a US broadcaster for the country's Spanish-speaking population. On July, the Gallery family is joined by the Disney Channel end Premium Calcio 24 kicks off and they expanded offering includes: Playhouse Disney, Cartoon Network, Hiro.

On May, Mediaset Premium will double its offer of cinema with the launch of Premium Cinema and the much anticipated re-launch of Studio Universal.

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2009: Mediaset S.p.A., the subsidiary Gestevision Telecinco S.A. and Promotora de Informaciones S.A. (Grupo Prisa) approved and signed an agreement that foresees, conditional upon determined conditions being met, the acquisition by Telecinco of a newly-founded company which will include the company part of Cuatro Business structure

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1.2.8 GRUPO PRISA PRISA is the leader in content creation and distribution of cultural, educational, information and entertainment markets in Spanish and Portuguese, thanks to its multichannel offer top quality products. Present in 22 countries, reaching over 50 million users through its global brands: El País, 40 Principales, Santillana and Alfaguara.

A few dates of history

In 1958 Jesús de Polanco sets up the publishing house Santillana but it was not until five days after Franco's death when he published the first issue. In 1990 CANAL + begins regular broadcasts. In 1994, Sogecable launches Canal Satélite Digital, the largest satellite television platform in Spain with a package of four theme-oriented pay channels: Cinemanía, Documanía, Cineclassics and Minimax. In 1997, Canal Satellite Digital launches first European offer digital pay television in Castilian, via satellite. PRISA wins "Soccer War". A court obliges Mediapro to provide all football rights to Audiovisual Sport (AVS). PRISA and Telecinco formalize the integration operation and the acquisition of Four 22% of Digital+ Business structure PRISA is set on five business areas: Editorial and publishing, TV, press, Radio and Digital. Education and publishing: Santillana is the leading textbook and general-interest publishing group in Spain and Latin America, and a benchmark for quality in the field of creative writing in Spanish. With more than 117 million books sold each year, Santillana has been synonymous with quality, innovation and service to teachers since its inception in 1960. It is involved in a wide range of products and services including school textbooks (Santillana Education), executive training (Instituto Universitario de Posgrado-IUP), online learning (Santillana En Red), language-learning books (Richmond, Santillana Français, Santillana ELE, Santillana Español), general publishing (through publishing houses such as Alfaguara, Taurus, Aguilar o Salamandra) and distribution (Itaca). Other services offered by Santillana include student-evaluation systems and quality management for educational centres. Santillana is active in Portugal through Constância Editores and Editora Objectiva; and in Brazil through Editora Moderna and Editora Objetiva, publishers of school textbooks and general interest, respectively.

Grupo Santillana

Santillana Education

Santillana Training

General Publishing

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Press: PRISA is the publisher of Spain's leading general-interest daily newspaper El País a world benchmark for quality news and information in Spanish, with an average daily circulation of 370.082 copies (OJD 2009).

It was first published on May 4, 1976, just as Spain was beginning the transition to democracy. The paper's vigorous defense of civil liberties and its support for political and social change, quickly made it an icon of modern Spain.

El País and El Viajero

Specialist Press: As and Cinco Días

Prisa Revistas: Cinemanía, Rolling Stone, Gentleman, Claves, Car, LuxWoman

International Press

Radio: PRISA Radio is the world's largest Spanish-language radio broadcasting group with more than 23 million listeners and more than 1,200 stations, either directly owned or associates, spread out over Spain, the US, Mexico, Colombia, Costa Rica, Panama, Argentina and Chile, and franchised in Guatemala and Ecuador.

Cadena SER

40 Principales

Cadena Dial

M-80

Maxima FM

Radiolé

Ona Catalana

TV: In terms of distribution, PRISA offers a wide and varied range of products and services:

Pay TV, via the satellite platform Digital+, which distributes the premium channel Canal+ and a variety of thematic channels, products and services.

Free-to-View TV Portugal, through the Media Capital group, owner of the ratings-leader channel TVI, and TVI 24 horas.

Free-to-view TV U.S., through V-me Media, Inc. which owns the cable television network targeting the Hispanic market.

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In the area of audiovisual production, PRISA is the market leader in Portugal with Plural Entertainment a company owned by Media Capital. The company brings together the production of film and television content for Spain, Portugal, the United States, Latin America and Africa.

Digital: PRISA is Spain's leading company in the production and exploitation of digital news and information, education and entertainment with a clear focus on multichannel access. It has over 250 web pages, visited by 52 million users a month across different product segments, with streaming figures of over 18 million songs 1.2.9 WOLTERS KLUWER Wolters Kluwer is a global information services and publishing company. The company provides products and services for professionals in the health, tax, accounting, corporate, financial services, legal and regulatory sectors. Wolters Kluwer is headquartered in Netherlands. The CEO and Chairman of the Executive Board is Nancy McKinstry. Wolters Kluwer formed under its present name in 1987 when Kluwer Publishers merged with Wolters Samson as a defensive move against an attempted hostile takeover of Kluwer Publishers by Elsevier.

A few dates of history

Wolters Kluwer was founded in the Netherlands 175 years ago. Two founding fathers of 18th century Dutch publishing houses, Æbele Kluwer and Jan-Berend Wolters, launched their business to improve the quality of educational materials. As a result of their work, they educated new generations of professionals.

To this day, Wolters Kluwer continues his strong tradition, always focused on delivering value-adding, next-generation information and solutions to their customers. Key milestones:

• 1792: Lippincott opens office in Philadelphia • 1815: Carl Heymanns Verlag founded • 1836: Wolters founded • 1889: Kluwer starts business • 1996: Major step into the U.S. market with acquisition of CCH Inc. • 2009: Wolters Kluwer chosen as best place to work for in Spain

And Wolters Kluwer keeps on developing. By 2013, for example, more people will access the internet on mobile devices than from desktops. Wolters Kluwer has launched several initiatives across the company to take full advantage of such trends to make sure we keep adding value to customers.

• January 1, 2010: Implementation of global organization • February 3, 2010: UpToDate selected for all health care in Norway

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• December 13, 2010: CCH IntelliConnect research platform accessible via mobile devices Business structure Legal and regulatory: Legal and business professionals rely on the authoritative information, tools, and resources provided by Wolters Kluwer Legal & Regulatory to ensure legal compliance in an ever more complex and dynamic world. Wolters Kluwer Legal & Regulatory provides a wide range of unique, proprietary information and tools in multiple specialty areas, including law, health and safety, public administration, and more. The division has operations in North America, Europe, and

Asia Pacific. Tax and Accounting: Tax, accounting, and audit professionals who serve as trusted advisors to clients and businesses worldwide rely on authoritative content and integrated workflow solutions from global leader Wolters Kluwer Tax & Accounting. Wolters Kluwer Tax & Accounting is the preferred provider of premier information, research, and software tools in the global tax and accounting arena.Tax & Accounting holds the number one global position in the tax and accounting market. Health & Pharma Solutions: Healthcare professionals and organizations use the integrated information,

tools, and solutions provided by Wolters Kluwer Health & Pharma Solutions to improve the quality, efficiency, and effectiveness of healthcare. We are a global provider of medical information, business intelligence, and solutions for research and development for the healthcare market. The division is organized into two customer-facing units, Wolters Kluwer Health and Wolters Kluwer Pharma Solutions.

Financial & Compliance Services: use the deep domain expertise, leading software solutions, and services provided by Wolters Kluwer Financial & Compliance Services to manage risk, ensure compliance, and achieve transparency and control in rapidly changing environments. Wolters Kluwer Financial & Compliance Services is a leading provider of intelligent audit, risk, and compliance products, services, and solutions across the globe.

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1.2.10 PROSIEBENSAT.1 The ProSiebenSat.1 Group was founded in 2000 as the largest TV company in Germany. The company now has 27 TV channels in 10 countries and is one of Europe's leading media companies. With the range we offer, we reach more than 67 million TV households every day, naturally including online and mobile, around the clock, everywhere in the world. His core business is television. A few dates of history

ProSiebenSat.1 programs had low ratings because of unconvincing marketing efforts. So ProSiebenSat.1 was bought by the American media tycoon Haim Saban for approximately $700 million. After Saban lost interest in the company because the programs could not compete with Bertelsmann's channels RTL, Vox, and Super RTL, he started an auction to sell the company. Possible bidders were Axel Springer AG, Dogan Group of Turkey, Permira/Kohlberg Kravis Roberts and some others like Goldman Sachs. The Axel Springer AG's bid was rejected by a federal competition commission, "Bundeskartellamt", because of the influence of Springer in Germany's media who owns already the nations most selling tabloid BILD and the newspaper Die Welt. On December 14, 2006, Germany's Handelsblatt reported that the winner of the bid was the consortium of Permira/KKR. A possible bidder for the company was Italian prime minister Silvio Berlusconi, whose family holding company controls Mediaset. On June 27, 2007, ProSieben bought SBS Broadcasting for the total sum of €3.3 billion. SBS was also owned by Permira/KKR

Business structure

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OWNERS OF MEDIA IN EUROPE

1. Bouygues has two large shareholders: SCDM, a holding company which is controlled by Martin and Olivier Bouygues, owning the 18,1% of the capital, and Group employees. As stated in their Annual Report 2010, over 60.000 employees owned shares in the company as up to 31st December of 2010, representing the 19.0% of the total capital. Bouygues is the CAC 40 company with the highest level of employee share ownership.

2. VIVENDI: As of December 31, 2010, the company’s share capital amounted to €6,805,354,094.00, divided into 1,237,337,108 shares. The corresponding number of voting rights, considering that treasury shares have no voting rights, amounted to 1,237,257,544 as of December 31, 2010 and 1,235,498,544 as of February 28, 2011. To the Management Board’s knowledge, as of December 31, 2010, the major shareholders holding shares in registered form or having sent a share ownership notice to the company were as follows:

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3. Bertelsmann: There is a closed group of shareholders. Three foundations (Bertelsmann Stiftung, Reinhard Mohn Stiftung, BVG-Stiftung) indirectly hold 80.9 percent of Bertelsmann AG shares, with the remaining 19.1 percent held indirectly by the Mohn family. Bertelsmann Verwaltungs- gesellschaft (BVG) controls all voting rights at the Bertelsmann AG Annual General Meeting. BVG is responsible for upholding the interests of the Bertelsmann Stiftung foundation and the Mohn family as Bertelsmann AG shareholders and ensuring the continuity of the company’s management as well as Bertelsmann’s distinctive corporate culture. BVG shareholders include three representatives of the Mohn family and three ad- ditional shareholders elected by the BVG shareholder meeting who are not members of the Mohn family. As of December 31, 2010, foundations (Bertelsmann Stiftung, Reinhard Mohn Stiftung, BVG-Stiftung) held 80.7 percent of Bertelsmann AG shares, with the other 19.3 percent held indirectly by the Mohn family. Since January 2011, the foundations have held 80.9 percent and the family 19.1 percent of the shares.

4. THOMSON REUTERS is being controlled by the Woodbridge Company Limited and other companies affiliated with it. Woodbridge beneficially owned approximately 55% of the total shares as of March 1, 2011. Woodbridge may be able to exercise a controlling influence over the business and affairs, the selection of the senior management, the acquisition or disposition of the assets, their access to capital markets, the payment of dividends and any change of control of the company, such as a merger or take-over. The effect of this control may be to limit the price that investors are willing to pay for the shares. The Woodbridge Company Limited is a Canadian private holding company. Woodbridge is the primary investment vehicle for members of the family of the late Roy Thomson, the first Lord Thomson of Fleet. Woodbridge is the primary investment vehicle for the Thomson family of Canada. Thomson Reuters previously operated under a dual listed company (DLC) structure, with shareholders in two publicly listed entities, Thomson Reuters Corporation and Thomson Reuters PLC. The DLC structure was established to facilitate the acquisition of Reuters in 2008. Given changes to their shareholder base since the Reuters acquisition, the shareholders and a U.K. court approved a proposal for unification of the DLC. Unification was completed in September 2009. Unification was a change to our corporate structure that did not impact their global businesses, operations, strategy, financial position or employees. Thomson Reuters PLC was renamed Thomson Reuters UK Limited and became a wholly owned subsidiary of our company. 5. Lagardère: Since 4 January 2007, the Lagardère group has held a 20% interest in Canal+ France following the merger operations involving certain production, broadcasting and pay television services of TF1, M6, Vivendi and Lagardère, and Lagardère’s contribution to Canal+ France of its 34% share in the capital and voting rights of CanalSatellite. A shareholder agreement was signed on 4 January 2007 between Vivendi, Canal+ Group, Lagardère and Lagardère Active. This shareholder agreement gives Vivendi rights excluding rights of joint control over Canal+ France, even if Lagardère exercises its call option. Lagardère’s rights are intended to preserve its economic interests, and depend on its level of investment in Canal+ France.

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As all Lagardère SCA shares are in registered form, information on shareholders and changes in ownership are available to the Company. The proportion of freely traded shares is high at approximately 90%, the other 9.62% being held by Lagardère Capital & Management, controlled by Arnaud Lagardère, the Group’s Managing Partner. There are 116 number of shareholders, according the 2010 Annual Report, and a number of shares of 12,646,294, or 9.64% of the share capital. The companies 63% is held by Non-French Institutional Investors.

6. Reed Elsevier: The results of Reed Elsevier PLC reflect its shareholders’ 52.9% economic interest in the Reed Elsevier combined businesses. The results of Reed Elsevier NV reflect its shareholders’ 50% economic interest in the Reed Elsevier combined businesses. The respective economic interests of the Reed Elsevier PLC and Reed Elsevier NV shareholders take account of Reed Elsevier PLC’s 5.8% indirect interest in Reed Elsevier NV.

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7. Mediaset´s 38,98% belong to Silvio Berlusconi´s Fininvest. Fininvest is is a financial holding company controlled by Silvio Berlusconi's family. The Fininvest group is composed by several companies: Mediolanum (an insurance and banking company), Medusa (a major Italian film production company), Mondadori (one of Italy's leading publishing companies), A.C. Milan (a football team) and , as mentioned, Mediaset, currently the biggest private entertainment competitor in Italy, owning three channels (Canale 5, Italia 1, Rete 4), two channels in Spain, Endemol, a digital TV broadcasting network and many other companies related to TV broadcasting.

9. Wolters: Estimated geographical spread of Wolters Kluwer shares. Institutional investors hold the majority (87%) of the shares in Wolters Kluwer stock. With over 350 institutional investors in 26 countries, ownership is spread across international markets. Investors in North America had an estimated interest of 26% in the company in 2010 (2009: 25%), while European shareholders, including the United Kingdom, held an estimated interest of 71% (2009: 74%).

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10. ProSiebenSat1: Lavena Holding Companies are the majority Shareholders. The share capital of ProSiebenSat.1 Media AG amounts to EUR 218,797,200 and is made up of 109,398,600 voting shares of common stock and 109,398,600 non-voting shares of listed preference shares. They are controlled by funds advised by Kohlberg Kravis Roberts & Co. L.P. (KKR) and Permira Beteiligungs GmbH (Permira). As of December 31, 2010, the Lavena Holding Companies held 88.0% of the voting common shares and 25.3% of the non-voting preference shares. This corresponds to a share of 56.7% of the share capital of ProSiebenSat.1 Media AG. The Dutch media corporation Telegraaf Media Groep N.V. (TMG) holds 12.0% of the voting common stock, equivalent to 6.0% of the share capital. The remaining roughly 74.7% of the preference shares, equivalent to approximately 37.3% of the share capital, is in free float or is held by ProSiebenSat.1 Media AG as treasury shares. On December 31, 2010, holdings of treasury shares amounted to some 5.7 million shares, equivalent to 5.2% of the preference shares and 2.6% of the share capital. Large parts of the listed preference shares are held by institutional inves- tors, most notably from the USA and the UK.

Spanish Cases

8. Prisa is the only spanish company appearing in the European top 10 of major companies. Its owners are Liberty Acquisition Holding with 57,7% of shares, the Polanco Family owning 34,2% and Daiwas Securities (6,2%). Liberty Acquisition Holding was founded by Nicolas Berggruen and Martin E. Franklin and was the door oponer to International investment, changing Prisa´s image. Daiwa Securities is one of the largest brokerage and financial services gruoups in Japan. The Polanco family owns the 34,5% of Grupo Prisa, founded in 1984 by Jesus de Polanco. Digital+ is also mainly owned by Prisa.

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Mediaset is owned partly by Berlusconi´s Fininvest (42%), and Grupo Prisa with a 17% of shares.

Vocento is owned by the Ibarra family (Mezouna owning 11%, Energay Inversiones owning 6,5%), by Victor Urrutia Vallejo (Lima, S.L. owning a 10,14%), the Luca Tena family (Valjarafe S.L. owning 10%), Bergareche family (Bycomel Prensa S.L. with 7,9%), Maria del Carmen Careaga Salazar (onchena S.L: owning 5,4%), the Aguirre family (5%) and the Castellanos family (casgo S.A. 4,4%). Planeta – DeAgostini: os owned a 100% by the Lara family. Then again, the subsidiary Planeta – DeAgostini is owned partly by Planeta (50%) and DeAgostini Communications (50%). Antena3 Televivion is owned and shared by Planeta and the family group DeAgostini Communications, all through their subsidiary Planeta – DeAgostini. Conclusions:

-­‐ we can cleary differenciate a meditteranean model, where media is mainly owned by families. In case of Italy, we have seen the Berlusconi family, in case of Mediaset. RCS Media Company is another example of this family structure – owning (MedioBanca representing 14,29%, Agnelli family owning 10,49%, Giuseppe Rotelli 7,54%, Pesenti family 7,74%, Della Valle family 5,49% and Ligresti family 5,46%). In case of Spain, we have seen the Polanco family in case of Prisa, Lara family or in case of Planeta – DeAgostini. We have another examples, like the Ibarra family in case of Vocento, the Godó group owned by the Godó family, Prensa Ibérica owned by Moll family, Zeta owned by Asensio family, RBA and RBA Edipresse owned by Ricardo Rodrigo Amar and the LaMunière family, Hola owned by the Sánchez Pérez family, or Voz owned by the Frenández-Latorre family.

-­‐ We can find family-monopoly also in case of the german Bertelsmann (Mohn family with 19,1%), but this is not a typical case for the european panorama, where most of the companies are owned by several shareholders. In case of Lagardère, Arnaud Lagardère ownes 9,62%.

-­‐ While looking for information about owners and shareholders we have determined a certain lack of transparence of actual interests and of persons/companies behind the major media companies. Reed Elsevier, for instance, has been linked to arms trade (http://www.guardian.co.uk/science/2007/feb/10/badscience.uknews), or Bertelsmann has been linked to polytical interests (http://www.youtube.com/watch?v=w35uKF9bOi4). There are similar examples for Lagardère, where political and economical linkings can be found. We dare to say, that information gets filtered depending the interests.

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ASSETS This report analyses the assets of 8 largest European private media groups in order to derive findings about financial and organisational characteristics shared by European media groups in general. 1. BOUYGUES GROUP Bouygues group runs their business in 5 areas of operation which are listed as follows: construction; property development; road works; media; and telecoms. Bouygues group owns the following companies in each sector respectively: Bouygues Construction, Bouygues Immobilier, Colas, TF1 and Telecom. Bouygues Construction and Immobilier are wholly owned by Bouygues Group, and it is also the majority shareholder of Colas with a 96.5% stake since Bouygues group was initially founded in the engineering and construction industry. Although Bouygues group holds slightly lower percentage in the shares of TF1 and Telecom, 43.2% and 89.5% respectively, it is still the major shareholder in those companies. Moreover, the figure below illustrates that media and telecommunication generates the highest net profit amongst all their operational areas.

As the report focuses on the media sector, TF1 is being further analysed. TF1 is a leading television group founded in France in 1987. It is also an integrated media Group that has build up a range of activities in high-growth segments alongside its core business. It now generates the average of the sales of €2.6 billion each year. It is controlled by their majority shareholder Bouygues Group. TF1 owns their business units which are illustrated in the figure below.

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The business unit model shows companies which are wholly owned by TF1, such as TF1 itself, LCI, Euro Sport, TF1 films production, and companies which are partly owned by TF1, such as Metro, TMC, Serieclub, and TFS. The figure below states that the greatest turnover (€ million) comes from 3 main assets, listed as follows: Broadcasting Finance (income generated from advertisement), audiovisual rights and International broadcasting.

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Above the all, Broadcasting France is the most important asset of TV1 as it generates the largest turnover and mostly contributes to the net profit of Bouygues group. This sector faces competition from other major players which are listed below. France Televisions

• Government owned; funded by a combination of licence fee and advertising • Operates three public analogue terrestrial channels (France 2, France 3 and France 5),

with combined viewing share of 39% (19%, 15% and 5% respecti vely), and five cable and satel lite channels.

M6

• Commercial broadcaster • 49% owned by RTL Group • Owns M6, an analogue terrestrial FTA channel with 13% viewing share, and eight thematic

channels Canal+

• Wholly owned by Vivendi Universal • Owns major stake in Canal Plus, the pay analogue terrestrial channel (audience share of

3%), the Canal Plus bouquet(1), and nine thematic channels

2. VIVENDI GROUP Vivendi is the world’s leader in communications and entertainment. This group takes leading positions in the worldwide music and video games industry as well as taking over the telecommunication industry in France and Morocco along with the pay TV market in France.

#1 Video Games Worldwide #1 Music Worldwide #2 Telecoms France #1 Telecoms Morocco #1 Pay-TV France The diagram below demonstrates the structure of Vivendi’s assets and it also shows what companies are wholly and partly owned by this media giant. Vivendi wholly owns Universal Music Group, Canal+ Group and the telecom company GVT in Brazil. The corporation is also the major shareholder in the French mobile company (SFR), the video game company Activision Bizzard, Moroccan telecom company and NBC Universal with the shares of 56%, 61%, 51%, and 12.34% respectively.

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Furthermore, Universal Music Group owns several smaller companies, such as Mauritel, natel, Gabon Telecom and Sotelma, with the equal share of 51%. Canal+ Group has theirown wide structure of owned companies which is illustrated above. The graph below demonstrates that Vivendi generates the largest revenue share from Canal+ Group across all the divisions.

The diagrams below show a detailed graphical layout of all smaller companies owned by Vivendi’s divisions of Music, Television, Video Games, and Telecommunication.

Vivendi

Activision  Bizzard  61%

Universal  Music  Group  100% Mauritel  

51%

Onatel  51% Gabon  

Telécom  51%

Sotelma  51%

SFR  56% Maroc  Telecom  51%

GVT  100% Canal+  Group  100%

Canal+  France  80% Canal+  SA  49%

Multi  Thématiques  SAS  100%

Canal+  Distribution  SAS  100%

Canal+  Overseas  SAS  

100%

StudioCanal  100%

Cyfra+  75%

Vietnam  49%

i>Télé  100%

NBC  Universal  12,34%

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The graphs above and below illustrate the complex structure of Vivendi’s divisions, which are made up of many small companies partly or wholly owned by Vivendi.

The corporation has proved itself to be a money-making behemoth, employing over 50,000 people worldwide and having a 2010 operating income of approximately $4.8 billion.

After getting authorization from an imperial decree Compagnie Générale des Eaux began in 1853 by a small pool of wealthy investors, including Napoleon III’s half-brother and the Rothschild family. The main purpose of the organization was to supply water to the towns of Lyon, Nantes, and Paris from the French farmlands. By 1976, the company had grown to encompass trash collection,

Telecommunications SFR Maroc  

Telecom

Global  Village  Telecom

Television  and  film

Vivendi  Entertainment  Canal+  Group

Canal+ multiThématiques

CinéCinéma Planète

Jimmy  and  Seasons Sport+

CanalSatellite Ma  Planète

Extrem  Sports  Channel NBA+

Pilotime StudioCanal

StudioCanal  UK

NBC  Universal  (50%)

Video  games Activision  Bizzard  

(57%) Activision

Beenox Budcat  Creations DemonWare

FreeStyleGames High  Moon  Studios

Infinity  Ward Knowledge  Adventure

Neversoft Radical  Entertainment

Raven  Software Sledgehammer  Games

Toys  For  Bob Treyarch

Vicarious  Visions

Bizzard  Entertainment

Music Division

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heating networks, waste incineration and construction and its irrigation services accounted for less than 50% of its operating income.

Under the leadership of chairman Guy Dejouany in 1976, the company began a rapid buyout plan. The company purchased Générale de Chauffe, Compagnie Générale d'Entreprises Automobiles and created Société Francaise de Radiotelephonie. Upon Dejouany’s resignation in 1996, Jean-Marie Messler assumed the role of chairman and immediately began to shake things up. One of the biggest events in Vivendi’s history occurred later in 2000 with the three-way merger between Vivendi, Canal+ and Canada’s Seagram. After being cleared by the European Commission, the $34 billion deal created the world’s biggest media group, Vivendi Universal. Vivendi Universal would hold assets in Hollywood film studio Universal, as well as music, telecom and television companies. In 2003, Vivendi Universal announced an agreement for the merger of NBC and Vivendi Universal Entertainment, which would form a new company called NBC Universal. General Electric would own 80% of the company with the remaining 20% belonging to Vivendi Universal. Messier’s strategy as chairman drove Vivendi to the brink of bankruptcy. The rapid expansion was overambitious and brought the company to debt and a down-grade by credit-rating services.

All eyes were on Jean-Bernard Levy at the start of 2009 to see how he would pick the company back up. Left with little decision, Vivendi Universal agreed to sell the remaining 20% stake to General Electric, giving GE total control of the company in 2009, in order to raise some cash. Levy’s strategy was focused on internal/organic growth and investing in high-growth countries and industries.

With the increase of mobile phone owners globally, Vivendi is betting mostly on the telecommunications industry, pumping more money into the industry and taking measures to protect it. In late 2009, the Maroc Telecom, a subsidiary of Vivendi, paid €252 million for a controlling stake in Sotelma, the incumbent telecommunications provider in Mali, beating out the likes of Sudatel and Portugal Telecom in the auction. Sotelma has a stock of an estimated 90,000 fixed lines and 480,000 GSM subscribers and the market is expected to grow in the near future. Next, Vivendi signed an agreement with Swarth Group and Global Village Telecom BV the controlling shareholders of Brazilian telecommunications firm GVT for 100% control of the firm. GVT has become an important contestant in Brazil, quickly becoming the “fastest growing broadband and telecoms player in Brazil.” Vivendi stated it hopes to offer its expertise in the industry to further push GVT to the forefront of progress by helping it enter new market segments such as IPTV. Most recently, at the beginning of April, Vivendi took a three billion euro loan from thirteen banks to acquire Vodafone’s 44% stake in SFR, the mobile telecommunications company it first began in 1987. The move to buy SFR is also important for Vivendi because the mobile and Internet operator is its biggest cash contributor.

Moreover, in light of Levy’s internal growth strategy, there is speculation that Vivendi will reach a deal to increase its stake in CANAL+. Vivendi currently owns 80% of CANAL+, with the remainder belonging to rival Lagardere. Talks were postponed due to the earthquake in Japan but are expected to start again sometime soon. CANAL+ has been praised as the “sharpest player around the table.” CANAL+ has a dominating market share in pay-TV across Europe and is considering bringing that brand equity into free television. CANAL+ has announced its plans to launch CANAL 20, a free-to-air generalist digital channel. CANAL 20 will offer French productions and films. Vivendi states that this move into free-TV is necessary to combat the potential threat of outside competitors Google TV and Apple TV.

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By using Vivendi as a compass, it is possible to forecast that the telecommunications and free-TV industries will be most profitable in the future. Vivendi will continue in its quest to add value to the brand through the help of mergers and acquisitions. The firm will continue to invest in the other industries it has footholds in so as to accomplish organic growth. It will be interesting to where or what Vivendi does next. 3. BERTELSMANN GROUP Bertelsmann group runs 4 business divisions of which 3 divisions belong to the sole media sector. Their areas of business operation entitle broadcasting, publishing, and outsourcing services. Therefore, their 4 owned companies are listed as follows:

- RTL Group - the No. 1 European broadcaster;

- Random House - the world's largest book-publishing group;

- Gruner + Jahr - Europe's largest magazine publisher;

- Arvato- outsourced service provider. Random House and Arvato are wholly owned by Bertelsmann group. Moreover, Bertelsmann is the majority shareholder in RTL Group and Gruner + Jahr with the shares of 91.6% and 74.9% respectively. The following figure demonstrates the revenue distribution amongst those business divisions. It is seen that broadcasting and tailored media and communication services make up the largest share of Bertelsmann’s revenues.

To have a better understanding of Bertelsmann’s assets, their media divisions are analysed separately.

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RTL Group The largest revenue maker, RTL Group, is Europe’s largest broadcasting and production company which operates television and radio stations in ten different countries. In terms of television, RTL group serves more than 170 million viewers in Europe by broadcasting the following TV channels: RTL Television, Super RTL, Vox or N-TV in Germany, M6 in France, Antena 3 in Spain, RTL 4 in the Netherlands, RTL TVI in Belgium, and RTL Klub in Hungary to name only a few. Since RTL Group works across European countries, it directly competes with a range of broadcasting companies in each country. In their home country, Germany, RTL Group competes with ProSiebenSat.1 which is another leading European media group. Random House

The Random House Group is one of the largest general book publishing companies in the UK and is based in London. It is one of the European divisions of Random House, the world's largest trade-book publisher, and is owned by Bertelsmann AG, one of the world's foremost media companies. The Group comprises five publishing companies: Cornerstone Publishing, Vintage Publishing, Ebury Publishing, Random House Children's Books and Transworld Publishers, boasting more than 40 diverse and highly respected imprints. Its distribution business services its own imprints as well as 60 other UK publishers.

Verlagsgruppe Random House was established after Bertelsmann's 1998 acquisition of Random House, grouping its German imprints (until then operating as Verlagsgruppe Bertelsmann) under the new name. It is the second largest book publisher in Germany with more than 40 imprints, including historic publishing houses Goldmann and Heyne, as well as C. Bertelsmann, the publishing house from which today's Bertelsmann AG would eventually evolve. Verlagsgruppe Random House is headquartered in Munich (with additional locations in Gütersloh, Cologne, and Aßlar), employs about 850 people, and publishes roughly 2.500 titles per year.

Their major competitors in the publishing industry are, Lonely Planet Publications, and The McGraw-Hill Companies, Inc.

Gruner + Jahr

Gruner + Jahr GmbH & Co. KG is the largest European printing and publishing firm. Its headquarters is in Hamburg, Germany. Gruner + Jahr publishes approximately 285 magazines and newspapers in 22 countries, including Poland, Spain, Russia, France and the People's Republic of China. As of 2007, Gruner + Jahr publications include:

Stern, Geo GeoLino, Financial Times Deutschland, National Geographic Deutschland, Brigitte, P.M. Magazin, Eltern, Eltern Family, Capital, Unternehmermagazin impulse, Art – Das Kunstmagazin, Neon, Gala, Schöner Wohnen, Essen & Trinken, YPS, Auto Motor und Sport.

In addition to direct publishing, Gruner + Jahr own interests in a number of other publishers and printers. They own 60% of Sächsische Zeitung, 56% of the NEWS Publishing Group, 50% of the Financial Times Deutschland, 37.45% of Prinovis, 25.5% of Spiegel Publishing, and 95% of Henri-Nannen-Schule, a journalist school in Germany.

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Gruner + Jahr owns several publishers and printers outright (100%), including the fourth largest U.S. magazine printer, Brown Printing Company in Waseca, Minnesota; East Greenville, Pennsylvania and Woodstock, Illinois, and the second largest magazine printer in France, the Prisma Presse S.N.C. in Paris. Their main competitors in the meganize publishing industry are Advance Magazine Publishers Inc, and Editis.

4. THOMSON REUTERS Thomson Reuters is the world's largest international multimèdia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, estoc market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms.

Powered by approximately 3,000 journalists reporting from nearly 200 bureaus around the world, Media provides indispensable news and information tailored for media and business professionals and drives decision-making around the globe with speed, accuracy and independence.

Their News Agency business provides the world’s media companies with text, video, pictures, graphics and multimedia products.

In 2010, Media launched Reuters America for Publishers as part of its planned transformation from a traditional news agency business model to a platform-oriented business model that focuses on providing coverage, content solutions and services that meet our clients’ needs. This new service provides U.S.-based print and online publishers with broader and deeper coverage of U.S. news as well as tools and on-demand services designed to increase efficiency, reduce cost and increase revenues.

THOMSON  REUTERS

Professional  $5.6B  (43%)

Legal $3.7B Tax  &  

Accounting  $1.1B

Healthcare  &  Science  $0.8B

Market  $7.4B  (57%)

Sales  &  Trading  $3.5B

Investment  &  Advisory  $2.2B

Enterprise  $1.4B

Media  $0.8B

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Areas of operation They deliver most of the information online through the Internet and dedicated transmission lines and to mobile devices. Electronic delivery improves their ability to rapidly provide additional products and services to our existing customers and to access new customers around the world. In addition, their offerings often combine software and services as integrated solutions to better serve the workflow needs of our customers. Reuters also distributes their information in print format. Increasingly, their customers have been purchasing products and services delivered electronically and have migrated away from print products. The figure below shows the major brands of Thompson Reuters. It seen that the company mainly uses their sole company name of Thomson Reuters on each division.

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Media Competition Major global competitors of our News Agency business include the Associated Press, Agence France-Presse, Getty and Bloomberg. Competitors of Media’s consumer products and services include WSJ.com, Bloomberg.com, Forbes.com, CNNMoney and FT.com.

5. LAGARDÈRE Lagardère, a world-class pure-play media group led by Arnaud Lagardère, operates in nearly 40 countries and is structured around four distinct, complementary divisions. The corporation owns 520 companies on the global scale. The diagram below shows that the vast majority of operation is dedicated to the division of Press Distribution under the name of Lagardère Service. This sector generated the sales of over € 4.6 billion in 2010. The second largest division is the Publishing division as it is the world's second-largest trade-book publisher for the general public and educational markets.

The third largest division is media and the 4th one is the sports industry.

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This scheme below illustrates the simplified structure of major companies under 4 largest divisions which are owned by Lagardère.

Lagardère Active is a global leader in the production and aggregation of multimedia structured around six business segments: magazine publishing (ELLE, Paris Match, etc.), radio (Europe 1, Virgin Radio, Radio ZET, etc.), television broadcasting (Gulli, MCM, Mezzo, etc.), audiovisual production, digital activities (Doctissimo, Elle.fr, etc.) and advertising sales. The graph below shows that the largest area of operation within this business division is devoted to the magazines industry where it has well positioned press titles. The second largest share of operation falls in the radio sector where a strong, well recognised brand, Europe 1 is also one of the most podcasted radio stations in Europe.

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The aforementioned business division is Lagardère Publishing which leads the French market in illustrated works, dictionaries and encyclopaedias,

textbooks and academic segments. This unit directly competes with another large player in the industry – Editis. The world's second-largest trade-book publisher for the general public and educational markets (first in France and the United Kingdom, second in Spain and fifth in the United States), Lagardère Publishing is a federation of publishing houses united by common management rules and a concerted effort to expand digital activities.

With a presence in 20 countries in Europe, North America, and the Asia-

Pacific region, Lagardère Services is the global leader in Press Distribution. It manages a large network of outlets in the world's transportation hubs, offering reading material and convenience goods, along with luxury boutiques and duty free goods, specialised concepts stores, and fast food restaurants. The major service offerings are listed as follows: 1. Retail sales, with importance in those dedicated to travelling. - World leader in retail sales dedicated to travellers. companies such - Relay France, Lagardère Services Asia-Oceania, HDS North America and Aelia (70% of Lagardère Services sales). 2. Press distribution to the sales outlets. - Largest distributor in the United States and Spain (SGEL)

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Lagardère Group also partly operates their business in the sector which is unrelated to the media industry. The corporation holds the share of 7.5% in European Aeronautic Defence and Space Company (EADS). It is the European leader in

aeronautics, space and defence. EADS consists of emerged companies such as Aerospatiale Matra, DaimlerChrysler Aerospace AG, and Construcciones Aeronáuticas SA.

6. REED ELSEVIER Reed Elsevier owns 5 business divisions which are tailored to provide a wide spectrum of information, from business to medicine. Their areas of operation include scientific/medical information, financial risk management, legal information, organising trade exhibitions, and business information. Their divisions are listed respectively: Elsevier, LexisNexis Risk Solutions, LexisNexis Legal and Professional, Reed Exhibitions and Reed Business information. The figure below shows the revenue distribution across their divisions.

It seen that Reed Elsevier generates the most revenue from LexisNexis Risk Solutions and Legal information. On the other hand, this report focuses on the media sector and so two main media divisions are furthered analysed. Reed Elsevier group is the major shareholder of the aforesaid companies. Reed Elsevier group originally was founded as a scientific information publisher but later reorganised their business to concentrate more on the business information. The scientific information division (Elsevier) has remained the most profitable and most important asset in Reed Elsevier’s media sector. Elsevier The Science & Technology division contributed 51% of the total Elsevier revenue in 2007. Through a number of imprints, including Elsevier, Academic Press and Butterworth Heinemann, Elsevier supplies scientific and technical information. Among Elsevier’s scientific journals well known in their fields are Cell, Brain Research, or Neuroscience, in the life sciences; Tetrahedron and Journal of Chromatography A in chemistry; Physics Letters A or Solid State Communications, n

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physics; Journal of Financial Economics and Social Sciences in Medicine in the fields of economics and social sciences; Artificial Intelligence in the computer sciences field; and Biomaterials in the field of material sciences and engineering. Science & Technology’s flagship electronic product is ScienceDirect, the world’s largest database of scientific, technical and medical journal articles. Elsevier’s online products include Scopus, which provides scientists with a comprehensive database to navigate their way quickly through the world’s accumulated scientific research. Competition within the science and technology publishing fields is generally on a title by title and product by product basis. Competing journals, books and databases are typically published by other professional publishers and learned societies. Reed Business Information Reed Business Information comprises the business magazine, website and information business. In 2007, approximately 56% of Reed Business Information revenue came from advertising, 26% from subscription sales, 6% from circulation sales, 3% from training and 9% from other sources. Online revenue grew by 27% in 2007 to over £250 million reflecting user and advertising demand for our community websites (webzines), recruitment, lead generation and search, as well as our online data services. Supporting the continued online growth is an established network of online focused sales, search and marketing resources. Reed Business Information UK (“RBI UK”), a business information publisher, has a portfolio of over 100 business magazines, directories, market access products and online services. Its business magazines include Computer Weekly, Farmers Weekly, Estates Gazette, Flight International, New Scientist, Caterer & Hotelkeeper, Commercial Motor and Community Care. Its other online services include recruitment sites such as totaljobs.com and CWjobs.co.uk, an online targeted newsletter provider, eMedia, and data services supplying information to the aerospace, property, banking, chemicals industries and XPertHR for the human resources sector. RBI UK competes directly with EMAP Business Communications, Nielsen and CMP Media in a number of sectors in the United Kingdom, and also with many smaller companies on an individual title by title basis. Reed Business Information competes for online advertising with other business-to-business websites as well as Google and other internet search engines.

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7. MEDIASET It’s an Italian-based media company which is the largest commercial broadcaster in the country. Its business sectors are advertising, free and pay television, film, information, communication and television technology. It has the following complex structure, which matches the different business areas in which Mediaset operates:

The scheme above shows that Mediaset Group wholly owns 4 major companies Publitalia ’80 SpA, R.T.I SpA, Mediaset Investment SpA and Mediaset Investment Sarl. Those major companies are in charge of smaller firms which work across several sectors. The diagrams below illustrate the financial situation of those sectors.

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As it can be seen from the table and graph, television is the most dominant sector in Mediaset Group. This sector generates the net profit of nearly € 2,5 million. Mediaset Group is the major shareholder in this sector as it is the largest commercial broadcaster in Italy. The print and digital media respectively takes up the second and third largest shares in Mediaset Group. This can be explained due to the media-centric nature of the company.

Publitalia’80 is the business divisions which works in the advertising sector, and thus is in charge of marketing and

advertisement of all the channels which belong to Mediaset Group.

Among the companies that are owned by Mediaset Group, that is the owner of television concessions. Furthermore, this division has a number of businesses, and external partners, amongst Elettronica

Industriale SpA, Media Shopping SpA and BOING SpA. Moreover, this sector also operates in the multimedia activities and entertainment.

It is a subsidiary company of MediaSet which controls the group MediaSet España Communication S.A., and the advertising

enterprise called Publiespaña. This group allows Mediaset Group a large weight in Spain. Mediaset Spain Communication is a Spanish media group, established in March 1989, whose activities focus essentially on the production and exhibition of television content. It currently operates televisión channels Telecinco, Cuatro, LaSiete, FactoríaDeFicción, Divinity, Boing and Telecinco HD. In additioN, Prisa TV is responsible for the management of Channel+2. The main concurrence of this group in the field of television entertainment is the channel "Antena 3", pertaining to the group Prisa (the main media group in Spain).

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MediaSet Investment Sarl This company, with its headquarters in Luxemburgo, manages the Mediaset Group's international activities.

Mediaset – Fininvest In the same way that Mediaset owns many companies, it also belongs to a superior entity, Finivest. This is a financial holding company, controlled by Silvio Berlusconi’s family, and managed by Silvio Berlusconi’s eldest daughter, Marina. In 1996 Finivest based Mediaset, wich converges the management of their terrestrial channels. It represents the 36% of the benefits of the whole group. 8. PRISA

the world’s leading Spanish and Portuguese-language media group in the fields of education, information and entertainment, thanks to its multi-channel offer of high-quality products. PRISA is configured into four major business areas: Publishing and Education, Press, Radio and broadcasting, all of which are supported in their digital development by a transversal, cross-corporate division. Most companies within the umbrella of PRISA are wholly owned by PRISA. The graph shows those 4 areas of operation according to the precentage of revenues in 2011. The broadcasting sector takes the greatest share across all the areas with a percentage of 47% which is nearly half of all the revenues, generated by

the other areas. Publishing is the second most important sector in terms of the revenue stream. To have a better understanding of PRISA group, each division has been analysed seperately. Broadcasting PRISA is one of the world’s leading production and distribution companies for Spanish and Portuguese-language audiovisual content. Indeed, it is the largest operator in this sector in Spain and Portugal.With companies in Spain, Portugal and Bolivia, its content reaches viewers throughout Europe and Latin America.

In terms of distribution, PRISA offers a wide and varied range of products and services:

Pay TV, via the satellite platform Digital+, which distributes the premium channel Canal+ and a variety of thematic channels, products and services.

Free-to-View TV Portugal, through the Media Capital group, owner of the ratings-leader channel TVI, and TVI 24 horas.

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Free-to-view TV U.S., through V-me Media, Inc., which owns the cable television network targeting the Hispanic market.

In the area of audiovisual production, PRISA is the market leader in Portugal with Plural Entertainment a company owned by Media Capital. The company brings together the production of film and television content for Spain, Portugal, the United States, Latin America and Africa.

Canal+ is one of PRISA’s most important assets in the broadcasting sector.

Education and Publishing Santillana is the leading textbook and general-interest publishing group in Spain and Latin America, and a benchmark for quality in the field of creative writing in Spanish. With more than 117 million books sold each year, Santillana has been synonymous with quality, innovation and service to teachers since its inception in 1960. The overall of 16 companies are owned by Grupo Santillana. The following table includes all smaller firms under the umbrella of Grupo Santillana:

The major competitors of PRISA in the publishing industry are:

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Press PRISA is the publisher of Spain's leading general-interest daily newspaper El País a world benchmark for quality news and information in Spanish, with an average daily circulation of 370.082 copies (OJD 2009). Another large brand, El Viajero, PRISA's new travel portal is the result of cooperation and teamwork among a number of the Group's companies: El País, El País-Aguilar (Santillana) and Canal Viajar (PRISA TV). Apart from those two major brands in the press sector, PRISA owns 17 smaller companies, which are listed below as follows:

Radio PRISA Radio is the world's largest Spanish-language radio broadcasting group with more than 23 million listeners and more than 1,200 stations. In 2008, PRISA Radio, 80% owned by PRISA and 20% by Grupo Godó, approved an agreement to sell part of their stake in Union Radio to British venture capital firm 3i giving them a 16.63% stake.

In Spain, PRISA Radio's flagship station is Cadena SER which boasts 481 stations -both directly owned and associates- broadcasting to the general public. There are also five music stations: 40 Principales, Cadena Dial, M-80,Radiolé and Máxima FM, and a sport station, Ona Catalana.

Cadena SER closed 2010 confirming its absolute lead in Spanish radio, with 4,247,000 listeners daily, from Monday to Friday, according to audit bureau figures from EGM. Its programs also strengthened their lead in all time slots, 24 hours a day, comfortably beating all competitors, with its most important programs garnering more listeners than the sum of all rivals combined.

The table below entitles the whole list of radio companies which are owned by PRISA.

EL  PAÍS

El  País El  Viajero  

Specialized  Press

As   Cinco  Días  

Magazines Cinemanía Rolling  Stone Gentleman Car Claves La  Revista  40 Paisajes Europa Cruz  Roja MCE  (Portugal,  4  magazines)

International Participation:   Le  Monde El  País  (México  &  Buenos  Aires)

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CONCLUSIONS The analysis of 8 largest European media group suggests the following findings. Most media groups are media-centric which means that they have been initially founded as media companies. Therefore, due to their long established positions in the market, the media sectors, such as broadcasting and press, generate most of the revenue. On the other hand, Bouygues illustrates an opposing example where the initially non-media company in the engineering industry used their purchase power to invest in the media sector and thus fight off their position in the media market. There is a high level of oligopoly in the media sector. Large media companies exploit their financial capacities and thus acquire smaller companies in order to expand their reach of dominance. Most media groups, such as Lagardère, Bertelsmann or Vivendi, have established a complex shareholding structure which helps them operate a vast number of brands which are divided across divisions. This makes it difficult for small autonomous media companies to compete and defend themselves from those media brands which are owned by the giant media groups. Therefore, the media market is dominated by media groups which eventually compete against one another in order to win more shares across various media sectors. Lastly, the ownership of media assets demonstrates the tight relationship between media groups and large companies or entities in other private sectors. For example, Lagardère Group also operates in the defence sector, Bouygues wholly owns a range of engineering companies, and Mediaset is partly owned by the major Italian political force.

Prisa  Radio

• SER • Grupo  Latino  Radio • Radio  Caracol • Iberoamericana  Radio  Chile

• Radiópolis

Media  Capital  Radio

• Portugal • 6  stations

Gran  Vía  Musical

• Promotion  and  production  of  musical  events.

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F INANCING Advertising Market: The Spanish case Our intention is show the market situation using a close example. This is the reason why we have chosen the Spanish example as a studied paradigm. The Spanish advertising market will be a tool for us and it will be the way to teach you how a specific European market shares its information. How the market use conventional and non-conventional media is a good solution to discover how is its dynamic. And also lead us to establish its situation and, perhaps, a possible evolution. In 2011 the advertising market grew 1.4%, reaching 12,883.8 million Euros of investments. In this development we can notice some differences between conventional and non-conventional media:

- The growth of conventional media in 2010 was 3.9% as a result; the percentage of the total market of 45.4% was obtained (increasing 1.1% in a year).

- The non-conventional media in 2010 represented the 54.6% of total investment (0.6% less than last year).

Now, we provide data about this differences and how conventional and non-conventional media, distribute their activities. Conventional Media We are talking about “old media”. As mentioned, there has been a 3.9% growth in advertising related investment. The previous two years however, all media related businesses, excepting Internet, witnessed decrease, especially newspapers and magazines (so above all printed media). Television is considered to be the most important media from an economical point of view (it reported 2471.9 million Euros), increased its revenue by 4.0% in 2010 compared to the previous year. Open signal transmitting national television channels: 2.3% growth -Regional television: 14.7% growth -Pay-tv: 30.1% -Local networks: -39.5%

Newspapers ranked second by weight, experiencing an advertising investment volume of EUR 1124.4 million, representing 19.2% of total advertising investments in conventional media (-1.7% share from 2009). There is an investment descent of -4.2% respecting the previous years.

Internet maintains the third position; its growth in 2010 was of 20.7%, reaching 789.5 million Euros. The total percentage of Internet investment in 2010 was 13.5%, representing an increase of 1.9%. Radio is on the fourth place, there has been 548.5 million Euros invested, showing a 2.1% increase. Advertising investment in Radio represents 9.4% of total investment volume in conventional media (1% less than last year). Exterior is the fifth medium, 7.2% of total media. The foreign investment in the year was of 420.8 million Euros, that means a growth of 4.8%. On the sixth place we find Magazines; there was a decrease -1.0% (397.8 million). In the total percentage regarding advertising revenues magazines occupy 6.8%, descending from past years 7.1%.

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Regarding Sunday special newspaper editions (dominicales), there has been an investment of 1.2%, experiencing a total growth of 4.8%; 72,2 million Euros.

Cinema is the less represented percentage in this chart, representing 0.4% of total advertising income, with a slight (0.1%) increase. If we look however at the total millions invested in advertising thru cinema, we can notice a quite important increase, from 15,4 millions (in 2009) to 24.4 millions (2010). Non-conventional media As for non-conventional media, also known as “below the line” communication, we will have a look at personalised mailing, leafleting and Mobile marketing (excluding however investments in Internet Mobile, that we included in the conventional media study when we talked about Internet investments) In 2010 the estimated investment in unconventional means reported 7034.3 million Euros, with a -0.6% decrease compared to the previous year (7078.1 million Euros). Personalised mailing represented 29.0% (increased 2.3%, 1.971,3 millions); Merchandising, public signs represent 18% of the total advertising investment (5.5% increase, 1.263,7 millions); Phone marketing decreased -1,6% (15, 7% of the total advertising investment with 1.103,1 millions) Mailbox advertising and brochures represent 11,2% of the total below the line communication reporting 791,3 million Euros (5.0% less than previous year). Here we include all the publicity that is being distributed without any form of personalisation (no addressed to anybody specifically) Sponsorship, patronage, social marketing actions and events received a total of 537,3 millions of investment, 7.4% higher than the year before, representing 7.6% of the total investments in non-conventional media Sports related sponsorship represents 6,6%. With a total of 465,6 millions invested, it experienced a 6.7% growth compared to the year before. Directories and Guides: 387.8 million, a decrease of -20.2%. 5.5% of total investment in below the line advertising Advertising gifts, 1.8% of total investment (125.2 million euros in 2010), -28.7% less than in the previous year Catalogues investment decreased -6.3%, reaching 112.5 million investment, representing 1.6% of total volume Fairs and Exhibitions, with an investment of 86.1 million shows a growth of 6.6% compared to 2009, bringing its share to 1.2%. Business Publications, including corporate magazines, newsletters and reports, among other publications, increased 6.5% in investment and are at 25.3 million Mobile Marketing also grew since last year by 6,3%, with a total investment of 22,0 millions of Euros

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Visual Information To complete our Spanish market’s study we provide a comparative between 2007 and 2010 years. It will make easier understand the information. In our report, like in our presentation, we focus on the 2010 year.

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This additional information, this comparative, helps us to show changes in the market. Despite the generalized reduction in expenditure terms, we can identify a trend that we think will be more exaggerated and sustained once the crisis overcome. The use and exploitation of non-conventional media is winning the conventional media. Understand how the market grows and changes are the best way to anticipate some fundamental aspects which can have influence on the media groups we are studying.

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Media Groups: Revenues and weight of advertising Considering the potential of our research we will take four groups to show how revenues are distributed and what weight the advertising in top media has. We have focused on these three groups we call the podium: the tree most important groups in Europe. These groups are, in order of importance, Bouygues, Vivendi and Bertelsmann. To continue in the line of our research we have also consider a Spanish important example. We have made an investigation studying the Spanish advertising market and, consequently, we want to take Prisa to show this alternative even it is not so important like the other groups. The information we have find is, in summary, in the following graphics:

We can see how Bouygues revenues are distributed by business units. In this first case, it was impossible get information about advertising weight from the corporate annual reports. To show how advertising has importance in this group we have taken the TF1 example. This branch of communication, this channel, has consolidated revenue of advertising of 1,549 million Euros.

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In case of Vivendi we know the distribution by business units. Like in Bouygues, there wasn’t any public information from their own reports. In any case, the newspaper The Economist states that Vivendi’s revenue from advertising is extremely low, as it reaches only 1% of the total company income. For example, Canal+ revenue is nearly 4 million Euros.

To end the podium we have the Bertelsmann case. Advertising represents a 29% of the total revenues of the group. It is the second more important revenue by economic volume and it breaks with the other two top groups. Bertelsmann advertising dependence is bigger. Even so, it is not a third of their total income.

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The Spanish example Now, it is the turn of the Spanish media group selected: Prisa.

In the Spanish case we can see a bigger difference between the first and the second European groups. Advertising revenues represent a 22% of the total revenues. With these four cases that we have analyzed we can discover what are the main revenues of some of the most important groups in the European media system. Our intention was give a visual information escaping from data tables. Considering these results we try to discover a relationship between the competitive position of the groups and their advertising revenues. As we descend we see a bigger influence and diversified influence of advertising. In any case, it is not an accurate sentence because, in total terms, advertising revenues from Bertelsmann are bigger than in Prisa.

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Effects and conclusions Finally, to put the end to the financing investigations, we want add an important topic to the conclusions. In the topics we had to investigate there was one wich can be included in our conclusions. We want consider the effect of the recent advertising crisis in European media system, in general terms. First, it is interesting know why advertising is in crisis. The crisis is related with the economic and global crisis. This relationship supposes a smaller investment in advertising. Crisis means measure the level of incidence of the economic downturn in ad investment. In this sense, once the economic crisis, investment increases and disappears. We are in front a new communication paradigm very similar wich the 90’s lived situation. This new situation has influence in the composition of our daily culture and has deep implications in European media system and its natural development. These poor investments suppose a catharsis to the European system and its consumers. The global culture is limited, the development of audivovisual technologies could be lower… The economical disposal of sources breaks the chances of improving the system and, in consequence, it affects the population. In any case, we suppose it will be reverted once the crisis. In general conclusions of this final block: -We have identify a new dynamic in the European advertising markets. Despite the present investment we think the future will be for the Below The Line medias. It supposes a new dynamic for the market and the way it present its communication. -We have seen the main differences between four important media groups in Europe. Advertising is obviously important because it represent a huge quantity of money for media. Even, we have discovered than these data are not so inmenses. There’s no a common pattern. In revenue terms, European media systems are very diversitied. Advertising revenues are also characterized by diversification: if the two most importants groups had so low ad revenues it is clear that these are not sentencing elements. Advertising doesn’t build media groups because they have differents revenues, in a higger volume, wich give them an excellent competitive position and make them profitables.

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B IBLIOGRAPHY

2010 Annual reports of all the above-mentioned top 10 media companies. ALMIRON, Núria (2009): “Grupos privados propietarios de medios de comunicación en España: prinicpales datos estructurales y financieros”, in Comunicación y Sociedad, vol. 22, n.1, pp.243-273. ALMIRON, Núria (2010): Journalism in crisis. Cresskil, NJ: Hampton Press. ALMIRON, Núria (2011): “Grups de Comunicació”, in Informe de la Comunicació 2009-2010, Incom-UAB, pp. 137-156. BALBI, Gabrielle & Prario, Benedetta (2010): "The history of Finivest/Mediaset's media strategy: 30 years of politics, the market, technology and italian society". In Media, Culture & Society, 32:391, pp.391-409. BERGÉS, Laura (2011). “La publicitat”, in Informe de la Comunicació 2009-2010, Incom-UAB, pp. 99-118. eMEDIA INSTITUTE (2005): Top 20 European Media Groups EUROPEAN FEDERATION OF JOURNALISTS (2005): Media power in Europe: the big picture of ownership. Beligum: IFJ. Concentration of Media Ownership. eMEDIA INSTITUTE (2005): Top 20 European Media Groups EUROPEAN FEDERATION OF JOURNALISTS (2005): Media power in Europe: the big picture of ownership. Belgium: IFJ. Concentration of Media Ownership. eMEDIA INSTITUTE (2005): Top 20 European Media Groups INFOADEX (2011), Informe 2011 de la inversión publicitaria en España

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