1. 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

2. 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

3. 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

4. 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 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

5. 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”

6. 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).

7. Thank you for your time ! Hervé Michel – France Televisions, Deputy Director, International Affairs. Wednesday May, 25th - Hanoï