RTVE joins the fight to cut costs

Spanish company slashes spending

MADRID — Spanish pubcaster Radio Television Espanola will slash costs for 2009 by e96.7 million ($121.5 million), as it battles Spain’s dramatically deteriorating TV ad market.

RTVE ad revs plunged a whopping 19% in 2008 to $700 million, prompting losses of $90.2 million.

According to RTVE prexy Luis Fernandez, RTVE will have a 2009 budget of $1.37 billion, 8% down on 2008.

The cost-drive is unlikely to affect acquisitions of foreign shows hugely.

RTVE is locked into multi-year output deals with Warner Bros. Intl. TV, Universal and Sony.

It can already look to an immediate savings of $66.9 million, the total broadcast costs of the 2008 Olympic Games.

The cost cuts come as its Spanish fiction drama and mini-series co-productions are getting spectacular ratings.

Set in 17th-century Madrid, family adventure series “Red Eagle,” produced by RTVE and Globomedia, has taken  26.4% and 26.5% shares in its first two segs. 

RTVE execs have beome more adept at picking content that skew towards their core 45-plus demo rather the 15-49 target of much U.S. fiction.

Last year, RTVE pacted with WBIT and Spanish network La Sexta for “The Mentalist.”

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety