Focus on Media & Entertainment
We focus on global and regional companies in the media & entertainment industry. For us, media & entertainment is more than just one of many industries a consulting company could serve. We are passionate about all aspects of this rapidly changing industry and are dedicated to shaping the future of media & entertainment.

Network of Experts
Founded by Ex-BCG consultants, MECN readily draws upon a pool of more than 40 experts for every engagement - we are not bound by any restrictions and will source the team wherever the experts might be. Not limited by the constraints of a fixed staff, our network of consultants provides greater objectivity in staffing and further allows us to minimize costs for our clients.

Strategy and Impact
We provide advice to management based on in-depth knowledge and profound analysis. Throughout the projects, we collaborate closely with the management of our clients. The typical engagement doesn't end with the definition of strategic cornerstones – we follow through on the implementation of the strategies in order to secure sustainable impact for our clients

Thought Leadership
One of our goals is to shape the future of the media & entertainment industry. To this end, the consultants in the network dedicate a significant amount of their time developing new points of view and perspectives on various aspects of the industry. Many of our consultants are authors of innovative studies and the network is closely bound to leading universities and institutes.

MECN Analysis No. 1
Consolidation in the Online Gambling Industry – Finally Gaining Strength?
Aftermath of the Bwin / PartyGaming Merger
“Exclusive white paper of MECN”
LONDON / MUNICH, August 2010
Who comes next - the hottest guesses for potential mergers and acquisitions in the next 2-3 years........Subscribers

MECN Analysis No. 1
Consolidation in the Online Gambling Industry – Finally Gaining Strength? Part3
Aftermath of the Bwin / PartyGaming merger
“Exclusive white paper of MECN”
LONDON / MUNICH (August 2010) Factors driving consolidation in the online gambling industry
So far, the discussion has mostly focused on consolidation among private operators, but we want to extend it to all major groups in the market: 1) private operators and 2) their traditional suppliers as well as 3) state/public operators and 4) their traditional suppliers. In our view, the following major factors will drive consolidation in the short and medium term – some of them apply to all groups, some only to selected groups.....Subscribers

MECN Analysis No. 1
Consolidation in the Online Gambling Industry – Finally Gaining Strength?
Aftermath of the Bwin / PartyGaming Merger
“Exclusive white paper of MECN”
LONDON / MUNICH, August 2010
Consolidations – a key driver for the future of the online gambling
market
In our report “Online Gambling Trends 2010/2011” we asked industry insiders to name the key drivers and factors most likely to shape the online gambling industry in the next 2-3 years. ......Subscribers

MECN Analysis - Consolidation in the Online Gambling Industry - Finally Gaining Strength?
Aftermath of the Bwin / PartyGaming merger
Exclusive white paper for MECN clients
LONDON / MUNICH, August 2010 Bwin and PartyGaming merge - the facts, reasoning, reactions, ... On Thursday, 29 July 2010, PartyGaming and Bwin finally announced their long expected merger - the first relevant merger among online gambling heavyweights...........Subscribers

Increasing Liberalisation and consolidation Will Drive Online Gambling in the Near Future According to a New Survey
Unique new report discusses the key trends in online gambling and provides objective analyses
LONDON / MUNICH (June 29, 2010) – Currently, the online gambling market is awash with new industry trends and issues: liberalisation, consolidation, B2B/B2G, U.S. market, mobile betting, …to name just a few. But which trends are relevant (and for whom), which ones are just hype, and what are the figures/analyses behind the trends?.......Subscribers

The Balkan Gambling Markets
Report on the gambling markets in Greece, Turkey, Croatia, Bulgaria, Romania, Slovenia, Serbia, and Montenegro
Summary
After continental and southern Europe, the global gambling industry is now focusing on the Balkan states and Eastern Europe for its expansion. In the Balkan states most forms of gambling enjoy above-average popularity - foremost sports betting...................Subscribers

The Liberalisation of Denmark’s Gambling Market Small Giant in the North – Paving the Way for Scandinavia?
New report on Denmark’s gambling market presents in-depth analyses and includes a unique overview of the current draft law.
LONDON, MUNICH, COPENHAGAN (November 6, 2009) - Currently, the French liberalisation plans are probably getting most of the industry’s attention. But in the background, at times almost neglected, several other countries, such as Denmark, are setting about liberalising large parts of their gambling market. Therefore, the consulting firm MECN and the law firm Horten have joined forces to compile a new report that offers an unprecedented in-depth analysis of Denmark’s gambling market........................Subscribers

La Française des Jeux – Potential Privatisation In The Light Of The French Gambling Market’s Liberalisation
LONDON, U.K. (October 8, 2009) -- When markets are opening up and allow private operators to compete against state-owned companies, one key question always comes up: Can a state monopolist survive in a tougher market environment and should the government consider privatisation?
While the French government is currently focusing on the pending liberalisation of its online gambling markets, by the middle of next year it will have to consider again whether to privatise the French state lottery La Française des Jeux (LFDJ).
Short overview of the market liberalisation in France
The unresolved conflicts between the EU and France regarding France’s gambling monopoly seem to have prompted the French government to rethink things fairly quickly in 2009. In March 2009 a draft bill was presented that included the following main points:

• Interactive betting and poker to be liberalised - Three key sectors of the online gambling market are slated to be opened: sports betting, horse race betting (pari-mutuel betting only), and so-called “jeux de cercle” (mainly online poker).
• No changes to lotteries and casino games - Lotteries will continue to be under the LFDJ monopoly, and slot machines and other casinos games will remain available only in land-based casinos.
• Five-year licenses - A government agency will issue licenses to gambling/betting operators; these licenses will be valid for a period of five years with an option to renew.
• No restriction on the number of licenses - The number of licenses issued should not be limited.
• Other EU licenses are not valid - Licenses from other EU member states will not be recognised automatically as valid for online gambling operations in France.
• Start in 2010 - It is assumed that the actual start date will be near the end of the first quarter of 2010 or even in the summer of 2010.

La Française des Jeux will have to deal with tougher market conditions
Although LFDJ’s key lottery business will remain untouched by the liberalisation (and probably also beyond), the tougher competition in the sports betting and poker sectors is sure to affect LFDJ’s overall business development. First of all, LFDJ will have to hold its ground in the growing markets of sports betting and online poker with its current and/or new offers, and second, the new online games will undoubtedly take away market share from the traditional gambling sectors.
What is already clear now is that the competition in the French market will be fierce. According to MECN, ca. 80% of the gambling operators and experts surveyed consider the French market a key market for their future business. More than 75% of the operators surveyed are planning to obtain a French online poker and/or sports betting license. Nevertheless, most experts surveyed believe that both, LFDJ and PMU, will be able to stand up to the competition and will play an important role in the future post-liberalisation markets.
The privatisation of La Française des Jeux – many rumours but no clear statements so far
Shortly after the planned liberalisation was announced, the potential privatisation of LFDJ became a topic of discussion. But so far, only very little clear information on this issue has been made public:
The current share structure of LFDJ will change significantly if the French state reduces its 72% stake. The remaining shares are currently split up as follows: 5% of shares are owned by the LFDJ Employee Investment Fund; 20% are in the hands of former Loterie Nationale lottery tickets issuers; ... 3% are retained by Soficoma (sales agent organisation).

• In mid-2008 the information leaked that the French government would evaluate plans of the privatisation of LFDJ through an IPO. In September 2008 rumours spread that LFDJ chose Merrill Lynch as financial advisor.
• According to information provided by LFDJ, the privatisation process was put on hold in late 2008/early 2009 as a result of the international financial and economic crisis.
• LFDJ explained also that until beginning of 2009 no government proposals had been made regarding a tender process/procedure.
• According to Les Echos, in mid-September 2009 Budget Minister Eric Woerth stated that "the privatisation of LFDJ is not related to the liberalisation draft … the privatisation is not an immediate subject”.
• The following companies have been named by experts and the press as possible investors in LFDJ: Lagardère, Bouygues, Intralot, and Vivendi.

According to a recent MECN survey, nearly two thirds of the surveyed experts believe in a privatisation of LFDJ in the near future.
Likelihood that La Française des Jeux will be privatised in the near future - Results of MECN survey

Conclusion – no privatisation in the very short term but worth keeping an eye on
It seems that LFDJ is currently well positioned to compete successfully under tougher market conditions. Therefore, the government is understandably focusing on the pending liberalisation instead of increasing the complexity of the situation by planning a simultaneous privatisation of LFDJ. Thus, detailed plans for privatisation seem to have been pushed aside for the time being. However, in our view, this situation can change quickly as soon as the liberalisation is wrapped up, the economic harsh times come to end, and/or the French government rethinks (or has to rethink) its standpoint regarding the lottery monopoly.
MECN’s reports on lottery privatisation and the French gambling market
The above article is based in large parts on MECN’s updated report “Privatisation of state-controlled gambling operators - 2nd edition” and the new report “The French Gambling Market.”
More information under http://www.privatisation.mecn.net and http://www.france-gambling.mecn.net
SOURCE: MECN.

Updated 2nd Edition of MECN's Benchmarking Report for the Global Lottery Industry
MECN is proud to present the second and updated edition of its unique lottery benchmarking study
LONDON, UK (April 1, 2009) -- In summer 2007 MECN published the first lottery benchmarking study, which was very well received. Last year, as more and more requests came in from clients, MECN decided to update the study. Now MECN is proud to present the second edition of our benchmarking study.
The updated study includes:

• Analyses of data from more than 150 lotteries for the years 2006 and 2007.
• Selected 2008 analyses - the impact of the global financial and economic crisis on state lotteries.
• Sales benchmarks - total sales and product-related sales (e.g., lotto, betting, instant,).
• Sales channel (incl. interactive) benchmarks - number of residents and catchment area per average outlet, interactive/Internet sales per capita and per registered user, …
• Operating expenses benchmarks - operating expenses in % of sales and analysis of economies of scale.
• Marketing, human resource, and other benchmarks.
• Updated best practices as well as success factors.

The study can be obtained at: http://www.lottery-benchmarking.mecn.net
About MECN:
MECN is a network of experts on issues concerning the media and entertainment industry. Together they provide in-depth knowledge, analysis, and advice to global clients.
CONTACT: Martin Oelbermann, Tel: +49 (0)89 3835 6785, e-mail: pr@mecn.net

The Balkan Gambling Markets
Report on the gambling markets in Greece, Turkey, Croatia, Bulgaria, Romania, Slovenia, Serbia, and Montenegro
MUNICH / LONDON (December 19, 2008) -- After continental and southern Europe, the global gambling industry is now focusing on the Balkan states and Eastern Europe for its expansion. In the Balkan states most forms of gambling enjoy above-average popularity – foremost sports betting. These facts combined with the recent or impending EU-membership of many states and their growing individual wealth makes the Balkan one of the most relevant markets to be analysed.
MECN accordingly analysed the Balkan region (that is, Greece, Turkey, Croatia, Bulgaria, Romania, Slovenia, Serbia, and Montenegro) in unprecedented detail and depth. For this study MECN worked together with various local researchers, interviewed local operators and regulators, and surveyed a total of 90 operators and market experts regarding their thoughts and insights:

• Total gambling market (gross revenue) of Euro 4.5 billion - In 2007 the total Balkan market had an estimated gross revenue (after payout of prizes) of ca. Euro 4.5 billion; the figure for turnover/wagers came to ca. Euro 25 billion.
• Most experts see great growth potential in Balkan gambling markets - More than 60% of the experts surveyed by MECN believe that the growth potential of the Balkan gambling market is great or even very great.
• Most operators are right now deciding whether to increase their investment in the Balkan markets.
• Some forerunners are paving the way - Intralot is on the way to becoming a betting heavyweight in the region; Sportingbet is realising about 4% of its business in Bulgaria; Bwin and Bet-at-home just recently increased their focus and investments in the region.

The report includes:

• Analysis of all sectors - The report analyses all key sectors of the gambling markets: lottery, casino, betting, gambling machines, and interactive gambling (Internet/mobile).
• Current market figures - Comprehensive market data, such as market size and development of sales/turnover as well as gross revenues, including 2007 and in some cases also 2008 figures.
• Legal and tax information - Detailed explanation of the current legislation and the taxes imposed
• Insights from local expert - The analyses of Balkan gambling markets need local expertise. Therefore, we gathered some of the most renowned local market insiders and authors.

Click here to view report summary.

SOURCE: MECN GmbH. If you are interested in learning more about us and our offerings, please CONTACT: info@mecn.net

Privatization of state-controlled gambling operators
Only hype or a reality in the near future?
Detailed industry report analyzing one of the most relevant and controversial issues of state shareholders in the gambling industry.
Hard-to-control Internet gambling offers and the intensive debate about increasing liberalization make life difficult for state-controlled operators. Although they recently won some “battles”, according to many experts business will not get any easier for them, and the value of state-controlled operators will probably decrease rather than increase in the future.
This fact combined with tight budgets might lead a growing number of state shareholders to see the regular contributions to state budgets in jeopardy and prompt them to consider privatizing their gambling operations as soon as possible. Indeed, recent and current privatizations, such as those of the Greek OPAP and the UK tote, show that this is not just idle speculation. Furthermore 73% of the experts surveyed expect that the number of privatized state gambling operations will continue to increase in the near future.
But what exactly are the advantages and disadvantages of privatizing the gambling sector besides filling up state coffers? Many complex issues have to be analyzed closely in advance, for example:

• Are state-controlled companies really inferior and inefficient compared to private operators? While some state-controlled operators, such as German WestLotto, work even more efficiently than some privatized companies, others are indeed far more inefficient.
• How could a privatized operation be regulated to prevent excessive gambling or other negative side effects?
• What are state-controlled gambling operators worth and how could they be valuated meaningfully since the number of examples to refer to is limited.

The report addresses primarily state shareholders and provides an objective analysis of all relevant issues as well as firsthand information about possible options for privatization and their implementation. The results are based in part on a survey of more than 90 industry insiders who offered their unique insights. The report is coauthored by many renowned experts, among them the investment bank Sal. Oppenheim and industry insiders such as Rob van der Gaast and Wulf Hambach.
View Brochure and Table of Contents