In what may be a bid to appease the recent rumours it will close down, Unidad Editorial's Veo7 has announced that it will reach a space rental agreement with Sony Entertainment Television's AXN.
Veo7 has always been in deficit since it started out test transmissions back in 2002 and also since its official transmissions begun three years later. At the same time its share has never been strong: the latest figures amount to 0.7% of average share which is a percentage difficult to make profit from in terms of selling advertising.
On the other hand the losses of the channel amount to some €16 million and last year the company received some €23 million in advertising according to the consultant Infoadex.
All in all the solution may now possibly allow Sony to book space on its pay-TV channel AXN on a daily basis preferably in prime time. In this way Veo7 will be able to continue broadcasting some of its most popular programmes. The rest of the content will be AXN's responsibility.
AXN already occupies one of Unidad Editorial's DTT frequencies, in this case on the pay-DTT. This way the production costs for Veo7 will be reduced.
The AXN solution is not the only possibility Veo7 is working on as the company is also having talks with Fox and the producers of laSexta's Mediapro (in charge of producing the other of Unidad Editorial's channel sporting Marca TV) and Vértice 36º, according to 'El Economista'.
Finally Unidad Editorial is also negotiating with laSexta's advertising company Pulibeis and Pulsa Media in order for them to commercialise its advertising.
All in all Unidad Editorial's main goal for this year is to reduce costs down to €25 million.