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dates, the Company recognizes the inclusion of the rights under the contract on the date on which the frst 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.

When audience fgures for frst screenings or channel programming indicate that the net carrying amount is not in line with the estimated real value, specifc 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 “workperformed by the entity and capitalized” of the Income Statement and the amounts billed by third parties.

The residual value, estimated at 2% of total cost, is amortized on a straight-line basis over three years from the time the productions are available, unless these rights are sold to third parties during the amortization period, in which case the remaining value is expensed to the revenues generated by the sale.

Amortization is based on the screenings, as follows:

Series of less than 60 minutes and/or broadcast daily. First screening: 100% of the amortizable double value.

Series of less than 60 minutes and/or broadcast weekly. First screening: 90% of the amortizable value. Second screening: 10% of the amortizable value.

In addition, the residual values of broadcasting rights over three years old, from the date of recording of the assets, are written of.

When audience fgures for frst screenings or channel programming indicate that the net carrying amount is not in line with the real estimated value, each specifc product or right is amortized.

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Financial Statements, Management and Corporate Governance Report. 2010