Leading Italian commercial broadcaster Mediaset has set out ambitious plans for global expansion, together with European partners, as well as for the launch of new pay-TV channels for the Italian market.

Mediaset CEO Maurizio Carlotti recently set out the company’s long-term strategy for the launch of a TV and technology group which would be able to compete with US media giants on an equal footing. Pointing out that Mediaset has already a solid presence in Spain (through private channel Telecinco) and is present in Germany thanks to a deal with Kirch Group, Carlotti identified the UK and France as the missing links in the chain.

Mediaset is set to increase local production this year, while imports will be cut. Maurizio Costanzo, president of Mediaset’s sales and acquisitions division MediaTrade, said the company will invest over L1,000 billion (Euro 500 million) in programming this year, 65 per cent of which will go towards the acquisition of movie rights. Another L40 billion will be invested in international productions for the European holding with Kirch Group. In the past 18 months, the value of Mediaset shares has increased tenfold, with the market reacting positively to Mediaset’s diversification of its core business. A new unit called Mediadigit will soon be formed in which Mediaset’s Internet portal (Mediaset Online) as well as all activities in the pay-TV sector will converge. So far, Mediaset has created just one pay-TV service, Happy Channel, broadcast as part of Telepiu’s D+ basic digital package. However, it is expected to create five new channels, with at least one of them available free-to-air. They include a channel for children and teenagers, a weather service and Mediaset International, which will offer a selection of programming from terrestrial TV channels Rete 4, Canale 5 and Italia 1. Nothing has been decided about the other two channels, but it is likely that they will be offered on an exclusive basis to the subscribers of the Stream digital platform. According to Carlo Vetrugno, director of Mediaset’s new-media division, each of the channels will cost between L9-12 billion and that breakeven is expected by the end of 2000. Around 50 per cent of their output will be produced in Italy.