Drucken GB - MME moviement

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CONSOLIDATED ACCOUNTS |
GROUP MANAGEMENT REPORT
Overall there is intense competition on the German television market, both between
individual broadcasting companies as well as between producers. A small number of
broadcasting companies confronts a large number of production companies. In addition
there is a tendency by some broadcasting organisations to have their own subsidiaries
carry out production commissions. Taking into account a currently stagnating
or only moderately growing overall market, MME MOVIEMENT is exposed to permanent
competitive risks.
For TV production companies the risk exists that commissions will not be renewed
and/or that new commissions will not be given or only recorded. MME MOVIEMENT
contributes through increased development activities to the development of new
projects at an early date, in order to be able to respond to modified demands from TV
broadcasting organisations with corresponding offers.
The commissioned productions of MME MOVIEMENT are subject to a production
risk, since development and production are normally very cost-intensive. The availability
of sufficient financial means for the development of programmes as well as for
their production, and the ability to realise a production within the framework of the
financing available, is of existential importance. MME MOVIEMENT possesses great
expertise accumulated over many years, in order to be able to control the production
risk in making formats, series and TV films. Normally it is possible for the financing
risk to be transferred to the commissioning broadcasting organisation, so that MME
MOVIEMENT only has to undertake advance financing to a limited degree. Up to now
sufficient project credit lines from credit institutions have been available for this purpose.
Within the context of the contracts that MME MOVIEMENT enters into with customers,
service providers and partners, general contractual risks exist such as the performance
of contract risk. In addition, within the context of the agreements a series
of copyright and service protection rights have to be transferred from MME MOVIE-
MENT to the respective broadcasting organisations or from the service providers and
partners to MME MOVIEMENT. To reduce the legal risks arising in this connection
MME MOVIEMENT makes use both of its own internal legal department as well as
external legal experts.
The business success of MME MOVIEMENT depends to a very high degree on the performance
of individual employees. The success of individual projects in particular
also depends on the quality of the people involved in the development and production,
both in the creative and organisational spheres. The ability to retain qualified