03. EDUCATION, INFORMATION, AND ENTERTAINMENT IN TRANSFORMATION ANNUAL REPORT 2011 PRISA TV PRISA TV is Grupo PRISA’s audiovisual holding and owner of Digital+. Once again, this year, it is the leading pay TV operator in Spain. With more than 1,800,000 subscribers, Digital+ has long been a pioneer in both digital high and definition television, 3D broadcasts and interactive services. The platform features more than 150 channels with top-quality content produced both in-house and by other parties and Digital+ is committed to bringing all the latest technological advances to its content. The rapid changes affecting the sector have made Digital+ a global digital entertainment hub and its content is accessible today from any media device, allowing the viewer to shape their own programming according to their tastes. In 2010 Digital+ signed agreements with other pay-TV operators (TeleCable, Orange TV and ONO) through whom it distributes its premium channel Canal+. In May 2010, an agreement was reached with Jazztel that offers subscribers a combined package of ADSL with phone calls and more than 30 Digital+ channels. In 2010, PRISA TV had a turnover of 1372.40 billion euros, and EBITDA of 308.78 million euros. PRISA’s international expansion has made it market leader in the free-to-view sector in Portugal through the channel TVI, and has positioned it as one of the world’s leading creators of content through its production company Plural Entertainment. Its international presence is boosted by VMe, the fourth largest network in the United States focused entirely on the Hispanic community. 2010 saw changes to the shareholding structure and composition of the company. It was decided to cease the production of CNN+ for reasons of profitability, the integration of Cuatro in Telecinco was completed in exchange for 17.3% of the new combined company, and the sale took place of two minority stakes in Digital+. Thus PRISA now holds 56% stake in Digital+, 22% is held by Telefónica Contenidos and another 22% by Gestevisión España. DIGITAL+ In 2010 Digital+ continued its commitment to technology, ushering in the start of a new model of entertainment in which the viewer programs his own television schedule.There has been an increase in the quality and quantity of content and, therefore, our level of commitment to subscribers. This dedication has paid off, with a net increase in the number of subscribers every month since September 2010. Digital+ in 2010 generated revenues of EUR 1,133.99 million and EBITDA of 269.37 million. Digital+’s future mission can be seen in its commitment to broadcasting the very best in content . Starting with the 2013 season, the UEFA Champions League returns to Digital+. The best European football will be offered exclusively on the PRISA TV platform, which will deploy all the latest image and sound technologies to bring the viewer a unique television experience. Digital+ is, without doubt, the best showcase for all major series. Our commitment is also reflected in the success of the TV Series Festival organized by Digital+ over the past three year. The 2011 edition is set to expand, with an increased number of venues, a spring edition at the Mostra de Valencia ahead of the main festival which will be held in Madrid in autumn, with the participation of all the major Hollywood distributors. A key to our growth strategy in 2010 has been the iPlus, the platform’s exclusive decoder, which offers more functions than any of its competitors on the market. The iPlus has changed the way people watch television, turning the TV into a digital entertainment center. It allows the viewer total control over programs, letting them freeze, fast forward or rewind. It is also the gateway to High Definition and 3D TV and comes equipped with a 500 GB hard drive that can record more than 80 hours of content. IPlus is currently available in approximately 400,000 households and users have highly rated their experience with it, with Digital+ clients stating that the decoder allows them to make better use of television. 53