Cisneros Group Releases Study on Effects of RCTV Closure

NEW YORK, September 10: The removal of RCTV from the
terrestrial airwaves in Venezuela has not increased the ad revenues of other
broadcasters in the market, according to a report released exclusively to World
Screen Newsflash by the Cisneros Group of Companies.

Citing data from AGB Nielsen Media Research, CGC—the
parent company of broadcaster Venevision—says that the supply of
advertising space is now “severely limited due to the large amount of pre-sold
space.” Advertisers, meanwhile, “have been cautious about redistributing their
advertising, waiting for greater stability in the TV audience and the
advertising market in general.”

The report continues, “Whatever the level of demand for
advertising, the departure of RCTV and the prevalence of pre-sold space in the
Venezuelan market made it nearly impossible for RCTV clients to purchase space
from RCTV’s former broadcast competitors.”

As such, the report notes a fall in broadcasters’ Cost Per
Rating Point (CPPR). Globovision’s fell 34 percent in June and July, while
Televen experienced a 17 percent decline and Venevision a 14 percent drop when
compared with the first five months of 2007.

AGB Nielsen projects a 15-percent increase in Venezuelan TV
advertising in 2008, with Televen leading with a 40 percent projected gain in
advertising, followed by Globovision with 33 percent and Venevision with 10
percent. RCTV, now only available on cable, is also expected to see its ad
revenues rise 10 percent next year.

The report notes that RCTV’s competitors have managed to
increase their market share: Globovision’s nearly doubled to 7 percent from 4
percent in 2006, Televen’s rose to 18 percent from 12 percent, while Venevision
moved up to 36 percent from 31 percent. Looking ahead, the market share
increases are expected to be even more significant in 2008.

“In summary, the major beneficiary so far of the closure of
RCTV is the Venezuelan advertiser. This is due primarily to the significant
decrease in CPPR and the better ‘bang for the buck’ they now receive for their
advertising spend. The ultimate loser remains RCTV which—in its present
form—has been marginalized as a significant media presence in Venezuela.”