144 / 214
144
MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
4.7.2. In-house production rights
This includes productions owed by the Group in which it may proceed with broadcasting or subsequent sale.
Their value includes both the costs incurred directly by the Group and the amounts billed by third parties.
The cost of audiovisual rights acquired in a business combination is fair value at the date of acquisition.
The residual value, estimated at 2% of the total cost, is amortized on a straight-line basis over three years from the time
the productions become available; unless these rights are sold to third parties during the amortization period, in which
case the residual value is allocated to the revenue generated by the sale.
These rights are recognized in the separate income statement under “Amortization of audiovisual property rights”
based on the number of shows broadcast in accordance with the following:
•
Series of less than 60 minutes and/or broadcast daily.
First screening: 100% of the amortizable value.
•
Series of more than 60 minutes and/or broadcasted weekly.
First screening: 90% of the amortizable value.
Second screening: 10 % of the amortizable value, excepting promotional coupons.
These rights are subject to valuation adjustments, where necessary, as detailed in Note 4.11.
4.7.3. Distribution rights
These include the rights acquired by the Group for their exploitation in all windows in Spain.
The cost of the right is that stipulated in the contract. Amortization of distribution rights is recognized on the basis of
the expected pattern of consumption in each window in which the right is used, as well as the estimated audiences for
each window.
When the free-to-air broadcasting or right commences, it is reclassified to “Outside production rights.”
In the free-to-air window, the amortization of the rights is recognized in the separate income statement under
“Amortization of audiovisual property rights” in the same way as in the case of audiovisual property rights, as detailed
in the related note to these consolidated financial statements.
4.7.4. Co-production rights
These include the co-production rights acquired by the Group for exploitation in all windows.
The cost of the right is that stipulated in the contract. Amortization of co-production rights is recognized on the basis
of the expected pattern of consumption in each window in which the right is used, as well as the estimated audiences
for each window.
When the free-to-air broadcasting or right commences, it is reclassified to “In-house production rights.”
In the free-to-air window, the amortization of the rights is recognized in the separate income statement under
“Amortization of audiovisual property rights” in the same way as in the case of audiovisual property rights, as detailed
in the related note to these consolidated financial statements.