DTT and the evolution of TV market in Europe

DTT and the evolution of TV market in Europe

Hervé Michel– France Televisions, Deputy Director, International Affairs.

Approaches for Growth and Sustainability

Wednesday May, 25th - Hanoï

AMS 2011France Télévision /Médiahub

2

Initial equilibrium of TV market in France

Public service mediaLicense fee paid by government

Private channels Advertising revenues or pay-revenues

TOTAL TV OFFER

1990’s: New threat from Cable TV & Satellite TV

Historical Channels

AMS 2011France Télévision /Médiahub

2005 & the Digital Terrestrial Television revolution

30$

- 15 new free channels available- Wider choice of programs- Improvement of Sound & Picture quality

Key benefits to consumers

DTT coverage (2005)

New TV offer

AMS 2011France Télévision /Médiahub

Evolution factors of the French TV Market

- Wider Choice available to consumers Fragmentation of historical channels’ audiencesHistorical channels: 88% MS in 2005 to 65% MS in 2011Free TNT channels : 0% MS in 2004 to 25% MS in 2011

- 2007: The Global economic crisis Downturn in Channels revenue Programs creation jeopardized

- Internet revolution UGC, Catch-up TV, VOD OTT TV and soon hybrid-TV

AMS 2011France Télévision /Médiahub

4 main reasons to be optimistic

1 - Audience behaviour 2010: New highs in viewing levels Average daily viewing time is 3hrs and 10 min

2 - Bouquet Strategy: “it’s better to fragment ourselves than to be fragmented by others”

AMS 2011France Télévision /Médiahub

4 main reasons to be optimistic

3 - Economic dominance of classic business models Linear TV based on advertising & pay revenues and license fee generates

11 billions € Non linear TV (VOD + Catch-up TV) generates 180 millions $

4 - The high value of content In France, 90% of program production is financed by historical

broadcasters in volume (99% in financial terms).

Thank you for your time !

Hervé Michel – France Televisions, Deputy Director, International Affairs.

Wednesday May, 25th - Hanoï