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 2011 France Télévision / Médiahub 2 Initial equilibrium of TV market in France Public service media License 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 2011 France 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 2011 France Télévision / Médiahub Evolution factors of the French TV Market - Wider Choice available to consumers Fragmentation of historical channels’ audiences Historical channels: 88% MS in 2005 to 65% MS in 2011 Free TNT channels : 0% MS in 2004 to 25% MS in : 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 2011 France 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 2011 France 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