Telefonica targets regional TV market
Telefonica is launching a full-frontal assault on the Spanish regional TV stations following the agreement between its subsidiary broadcast company, Telefonica Servicios Audiovisuales, and the media group Heraldo to provide and operate news services and TV management systems for regional broadcasters.
Both companies are already working with Aragon Television, the regional TV station in the north of Spain, with a contract estimated at €30 million, and plan to extend their services to other regional TV stations which are now in the process of privatisation following the recent modification of the law that the government approved to allow the sell-off or closure of state-owned regional TV broadcasters.
Total turnover of Telefonica Servicios Audiovisuales in terms of management and provision of audio/video production and post production currently amounts to over €200 million, according to the company, with 1,000 workers. Heraldo group, with an annual turnover of €100 million, owns the production company Factoria de Contenidos and two subsidiaries like Factoria Plural and CHIP with over 3,000 hours of TV content.