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Approaches for Growth and Sustainability. DTT and the evolution of TV market in Europe. Hervé Michel – France Televisions, Deputy Director, International Affairs. Wednesday May, 25th - Hanoï. Initial equilibrium of TV market in France. Public service media License fee paid by government.
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Approaches for Growth and Sustainability DTT and the evolution of TV market in Europe HervéMichel– France Televisions, Deputy Director, International Affairs. Wednesday May, 25th - Hanoï
Initial equilibrium of TV market in France Public service media License fee paid by government Private channels Advertising revenues or pay-revenues HistoricalChannels TOTAL TV OFFER 1990’s: New threat from Cable TV & Satellite TV 2
2005 & the Digital Terrestrial Television revolution New TV offer 30$ Key benefits to consumers • 15 new free channels available • Wider choice of programs • Improvement of Sound & Picture quality DTT coverage (2005)
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
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”
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 ! HervéMichel – France Televisions, Deputy Director, International Affairs. Wednesday May, 25th - Hanoï