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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
Audiovisual property rights
The following intangible assets are recognized under this heading:
Proper ty rights on external audiovisual production
These rights are initially recognized at their acquisition price. If they are acquired in closed packages and the breakdown
of the individual value of each product is not provided, individual values are calculated based on a weighting factor
equivalent to the acquisition cost of products of a similar type and category, as if the acquisition were made on an
individual basis. If the contract stipulates the individual value of each product/title, this is taken directly as the asset value.
The right is recognized at the time the material becomes available for broadcasting pursuant to the contract, and
is recognized under “Customer Advances” until it becomes available for broadcasting. In the case of several rights
associated with a single contract that become available during the same year but on different dates, the Company
recognizes the inclusion of the rights under the contract on the date on which the first right is available for broadcasting.
These rights are amortized based on the number of screenings, as follows:
1. Films and TV movies (non-series)
* Contractual rights for two screenings:
First screening: 50% of acquisition cost
Second screening: 50% of acquisition cost
* Contractual rights for three or more screenings:
First screening: 50% of acquisition cost
Second screening: 30% of acquisition cost
Third screening: 20% of acquisition cost
2. Other products (series)
* Contractual rights for two or more screenings:
First screening: 50% of acquisition cost
Second screening: 50% of acquisition cost
When a screening is sold to a third party, the value of the screening, calculated on the basis of the above percentages,
is amortized on the basis of the buyer’s territorial capacity to distribute the television signal. A cost of goods sold is
recognized based on the revenues generated in the territory where the screening has been sold and adjustments are
made to the unsold value of the screening in question.
When audience figures for first screenings or channel programming indicate that the net carrying amount is not in line
with the estimated real value, specific impairment provisions are recognized for each product or right.
In-house series production rights
These include productions that the Company, as the owner, may both broadcast and subsequently sell.
Their value includes both the costs incurred directly by the Company and recorded in the line “Work performed by the
entity and capitalized” of the Income Statement, and the amounts billed by third parties.