Mediaset expects revenues and subscriber numbers at its pay-TV unit to "continue falling this year" but profit margins to "improve as it shifts to an on-demand business model," top execs said, according to Giancarlo Navach of REUTERS. The pay-TV unit, Premium, "has struggled to make a return on its large investments" in Champions League and Serie A matches, and has been "losing market share to its major competitor," Sky. It now wants to move to a strategy that "relies less on such expensive, premium sporting content." Milan-based Mediaset, controlled by the family of former Italy PM Silvio Berlusconi, agreed to sell Premium to France's Vivendi last year "but the deal collapsed." Mediaset CFO Marco Giordani said, "The falling trend for sales will continue. We got rid of (channels) for children making us lose subscribers and revenues, but margins are growing." Premium will lose its TV rights to broadcast Champions League matches in Italy from the second half of '18. The rights will switch to Sky, which last month won the rights for three seasons starting from the '18-'19 season. Mediaset CEO Pier Silvio Berlusconi said that he was "open to selling Premium's final season of Champions League matches," for '17-18, to Sky. "We must ask them. There are no ongoing talks. But if they make an offer," Berlusconi said, "without finishing his sentence." He added, "With soccer you always lose. If you don't buy it, you lose subscribers; if you do, you lose money for the investment you have to make" (REUTERS, 7/6).
