Our activities in broadcasting and television production include, primarily, production, acquisition and broadcasting of information, sports and entertainment programs as well as TV series and feature films broadcast on television channels. Our portfolio comprises 42 channels including our flagship channel POLSAT. Moreover, there is a group of 5 cooperating channels that are related to Polsat Plus Group either by capital links or joint broadcasting projects. The Group’s channels are delivered both over multiplexes in the terrestrial network (free of charge) and over cable or satellite (paid).
Within our wholesale business, we sell advertising airtime and sponsoring time on our channels as well as third-party channels. The key factor with a bearing on our revenue from advertising and sponsoring time sales is our share in total audience. Airtime on our channels is more attractive if the demographic profile of the audience meets advertisers' requirements. To make our airtime more attractive, our programming offering is carefully selected and broadcast in specific parts of the day.
A significant part of the revenue of the media segment is generated by the wholesale of broadcasting rights to TV channels from Polsat Plus Group’s portfolio. Our channels are distributed by the majority of Polish cable networks and by all major satellite platforms (with the exception of selected sports channels, which are exclusive to the Polsat Box platform), as well as using the IPTV technology and selected OTT platforms. Our agreements with third-parties provide for a non-exclusive license of a specific duration to distribute our channels. The agreements also provide for monthly licensing fees, charged as the product of the contractual rate and the number of customers, or as fixed fees.