Annual Corporate Governance Report 2017

39 viewers and users’ changing interests, and has bolstered its leading position in news and entertainment segments where subscription television operators do not compete. The content offer of subscription operators under the “VOD” (video on demand) mode has driven down consumption of linear TV measured as average consumption time per viewer (minutes/day). The fall is too limited in the case of Atresmedia to have a significant impact. Secondly, Atresmedia has followed a strategy of investing in new distribution channels for its content by investing in new platforms. Combined measurement of television content consumption across devices and the emergence of deferred consumption has enabled the total audience of all the TV channels of the Atresmedia Group to be added together, regardless of the viewer’s chosen form of consumption. The Atresmedia Group’s strategy is to continue to enhance its brands and ability to create content that can be offered over an increasing range of distribution platforms and channels to increase its viewer and user base and retain and even reinforce its leadership position. 3) Criminal proceedings relating to SGAE, Spain’s music copyright society: SGAE (Sociedad General de Autores y Editores) is one of the collective copyright management entities to which Atresmedia pays royalties for use in its own programming of copyrights owned by the authors of audiovisual works. This economic relationship covers copyrights owned by the authors of music broadcast on our TV channels. The internal rules of the SGAE make provision for a procedure for settlement and payout of royalties for broadcasting, which are collected by the SGAE and distributed among the authors and publishers of music broadcast in audiovisual media. Distribution of royalties is based on a tariff system, also put in place by the management organs of the SGAE, which sets the amount payable for each broadcast work and determines the share due to the author and the publisher. This information is set out in further detail in the appendix to section H. E.6 Describe the response and supervision plans for the main risks to which the Company is exposed, including tax contingencies. The Atresmedia Group has defined a series of response plans for the different risks identified. Risks that materialise or are more likely to materialise are covered by an additional exhaustive monitoring process by the management of the organisational or business unit and by the senior management of the Group. Existing alerts are monitored to identify any threat that might raise the criticality of identified risks. Responses to existing risks are classified into 4 areas: + − Avoid − Accept − Reduce − Share Based on the analysis of the risk response adopted, and on the degrees of materialisation of the risks arising, action plans are implemented that define the measures to be taken based on the scenario envisaged when the risk materialises. Action plans are undertaken by the Group’s business areas, and the entire organisation is involved in managing the risks faced by the Group. These scenarios emerge from a range of forecasts in the following domains: − Regulatory environment − Competition − Advertising market − Technology − Business − Trends among communities and users − Wider economic environment We have in place a range of operational and supervisory committees to create alerts and support close interdepartmental communication so as to identify risks promptly and create action plans immediately when more than one area is affected.