Report on ONO Midco, SAU and its subsidiaries as of December 31 ...

Obligations
According to the General Law on Audiovisual Communication and its implementing regulation, Cableuropa (and
others) are subject to the following primary obligations:
• Respect the rights of viewers set forth in the General Law on Audiovisual Communication;
• With respect to the television channels (including pay-per-view) over which it holds editorial responsibility,
Cableuropa must reserve 51% of its channels for European audiovisual production (50% out of the 51% reserve
must be reserved for European audiovisual productions in any of the Spanish languages and 10% of the total
quota shall be reserved for independent producers of which 10% must have been produced in the last five years);
• With respect to on-demand audiovisual services over which it holds editorial responsibility, 30% of the catalogue
of programs must be reserved for European audiovisual productions and half of the said 30% for European
audiovisual productions in any of the Spanish languages;
• To contribute on a yearly basis 5% of the total income accrued for the preceding fiscal year, according to its
exploitation account, to the pre-financing of the production of certain audiovisual works such as, amongst others,
full-length feature films, television films and series and documentaries and animated series and short movies, as
long as Cableuropa (either in chronological schedule or in a catalogue) or the channels it broadcasts without
bearing editorial responsibility over them include full-length feature films, television films and series, as well as
documentaries and animated series and movies of recent productions, that are less than seven years old as of their
production date. This 5% contribution has to comply with the following rules:
• 60% out of the referred 5% must be devoted to works whose original language is one of the existing
official languages in Spain;
• 50% out of the referred 5% must be devoted to works of independent producers;
• 60% out of the referred 5% must be devoted to full-length feature films; and
• 40% out of the referred 5% can be devoted to television films or television series or miniseries.
Despite not providing audiovisual communication services, Tenaria is also subject to the above 5% quota, as per
the General Law on Audiovisual Communication.
This 5% quota obligation was also included in the former Spanish Law on Television Without Frontiers
(currently replaced by the General Law on Audiovisual Communication). In April 2010, the Spanish
Constitutional Court accepted the filing of a constitutional claim against the 5% quota obligation set forth in the
former Spanish Law on Television Without Frontiers. A final decision is still pending;
• To comply with the rules regarding programming, advertising, teleshopping, sponsorships and programming
legislation should be aimed at protecting children and people with vision and hearing disabilities; and
• To comply with EU provisions and national legislation on intellectual property.
In order to maintain informational and audiovisual pluralism, the public broadcaster RTVE must provide cable
television operators with its radio and television channels for free broadcasting through their network. Nationwide digital
terrestrial television operators must provide cable television operators with their main free-to-air television channels for
broadcasting through their network, subject to negotiating the relevant price to be paid by cable television operators for such
carrier service.
Payments
According to the RTVE Financing Law, since September 2009 pay television and audiovisual communication services
operators are required to pay 1.5% of their television and other audiovisual communication services revenue on a yearly basis for
the financing of public broadcaster RTVE. This contribution cannot exceed 20% of the total income anticipated for the relevant
year in RTVE. ONO is challenging certain aspects of the contribution requirement before the Spanish Supreme Court. ONO has
challenged the revenue calculation and classification methodology used by the CMT to determine the amount of ONO’s 1.5%
contribution for 2009.
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