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The market variables that influence the value of this asset are the market price of the
Parent's share, its volatility and its dividend yield. The Group's estimated results also have
an influence. The market price and historical volatility at 31 December 2015 were used to
measure the value of the asset at that date, and the market consensus at year-end and
credit risk (due to application of IFRS 13) were used to estimate results and the dividend
yield.
9.
Programme rights
The detail of “Programme Rights” is as follows:
Thousands of euros
2015
2014
Programme rights, net
Rights on external productions
330,017
277,114
In-house productions and productions in process
25,171
18,782
Sports broadcasting rights
14,568
3,214
Write-down of external productions
(35,545)
(38,406)
334,211
260,704
Advances to suppliers
14,457
25,171
Total
348,668
285,875
At 31 December 2015, the Parent had commitments, mainly for the purchase of audiovisual
property rights and the production of programmes, amounting to EUR 299,204 thousand
(2014: EUR 279,146 thousand). In addition, the Parent has purchase commitments to
distributors, the definitive amount and price of which will be determined once the
programmes are produced and, in certain cases, by establishing the acquisition price on the
basis of box-office takings. In 2015 the best estimate of these commitments amounted to
EUR 120,913
thousand (2014:
EUR 94,312 thousand).
It is estimated that inventoriable in-house productions will be amortised in full and
approximately EUR 170,000 thousand of external production rights will be amortised in
2016.
The changes in the write-downs of external production rights included under “Programme
Rights” in the consolidated balance sheet were as follows (in thousands of euros):
Balance at
31/12/13
Additions
Transfers
Disposals
or
reductions
Balance at
31/12/14
Additions Transfers
Disposals
or
reductions
Balance at
31/12/15
Write-downs
(33,755)
(7,073)
315
2,106
(38,406)
-
-
2,861
(35,545)
The write-downs recognised arose since it was decided that certain titles would not be
marketable and it was not likely that they would form part of the Parent’s programme
schedule. Also, in 2014 in relation to the impact of the shutdown of three channels (see Note
1), an adjustment of EUR 3 million was made to the value of certain audiovisual rights, as it
was no longer possible to broadcast the channels. These write-downs were recognised under
“Programme Amortisation and Other Procurements” in the consolidated statement of profit or
loss.