The new stage of Mediaset España, with Alessandro Salem at the head, continues to specify new steps. As Confidencial Digital has learned, the decision of the acting CEO of Mediaset Spain, to continue leading the content management and with the Film division in Italy, is part of a joint strategy, in which decisions between the international divisions that are part of the group will be adopted jointly.
According to an internal group strategy document, to which ECD has had access, the group’s parent company, MFE-MediaForEurope, is preparing an ambitious reform plan for the next few months.
Within this plan, one of the most outstanding measures is the centralized purchase for the production of television content and an optimization of resources. For this reason, from now on the decisions to purchase new series and programs will be adopted jointly for both televisions.
It should be remembered that Salem was already in charge of making these decisions and the relationship with the production companies in Italy before his appointment, so with this organizational model, he will be the person in charge of the new programming of Mediaset Spain after the departure of Paolo Vasile.
It is also contemplated a reform of the organizational model, with a change of relationship between the central part and each of the local parts. It should be remembered that there is already a signed commitment to increase investment in local content. They have also committed to improve administrative activities within the television organization, with the aim to reduce costs.
The reform of the organization will go beyond linear television. From now on, the production of Mitele’s content will be decided together with the Italian division. Within the technological aspect, the company wants to combine its data analysis structures.
Thanks to all these changes, they foresee a “lighter” organization within the chain, to enable decision-making “more agile”. You want to avoid duplication and increase cash savings.
55 million profit
Thanks to these synergies, Mediaset projects an increase in profits, before interest and taxes, of €55 million from now to 2025.
Of this amount, 34 million would be as a result, within their valuations, of being able to sell advertising on a larger scale, project synergies with other advertisers, and reinforce the advantages of digital advertising. The other 21 million would be thanks to the previously proposed reforms.
In the aforementioned document, from MFE-MediaForEurope they point out that this recipe for “facing the evolution of the sector” is based on “preserve the distinctive value” of linear television with economies of scale. Also, thanks to the “coordinated investment”, they want to “capture new business opportunities” and focus on value “for shareholders”.
The document sets guidelines to analyze how the sector is. As they point out, “exclusively local traditional media become increasingly vulnerable” in the face of competition from international Internet giants.
They recognize that viewers they are moving towards the platformsand that advertising is becoming “addressable” and adjustable to this new way of working and the new rules of the ecosystem, where there are “giants that heavily intervene in original local and international productions.”
As a consequence, they see, within the financial aspect, “structurally low margins” for local investors.
Change of strategy in Mediaset: Spain and Italy are going to centralize the purchase of content