TV Broadcasting CEO Conference 2007
July 11, 2007 JP Morgan 1 Introduction To face fragmentation, M6 develops strong contents on all platforms
►A fragmenting broadcast market: ►M6 offers content on a family of new channels and new platforms channels and all paltforms
ls e n n a h / c e i l e V W t b t O l a lli u C e D e t b M a W T s T e T D b I L n V Strong S t 2 D e o .0 r n n contents e t
A complementary A presence family of on all Mobile TV channels platforms
2 The broadcast market « big bang »: Fragmentation of channels and platforms
3 TV fragmentation TV fragmentation in Europe
Multi channels Planned penetration switch off rate in 2007 date
~80% 2012 UK
~99%
Germany 2008
~43,5%
France End of 2011
~41%
Italy End of 2008
~30%
Spain 2010
Source : Ofcom/ EPRA/AGCOM 4 The core business : Free- Focus on the French TV market : to-Air expected changes from 2007 to 2011 ► Multiplication and digitization of the French audiovisual offer 2006 : proportion of Free/Pay TV 2011e : proportion of Free/Pay TV households equipped households equipped 25.1 million of households 26 million of households
Pay TV Pay TV 33% 35%
Historical TV, Analogue Free Multi- chanels, DTT 47% Multi-channels 45% offers 18-100 channels Multi-channels 35% offers 6 channels 18 18-100 channels 33% channels
18 channels 18 18 channels channels Free multi- channels, DSL 7% Free multi- Free Multi- channels, DSL Free TV chanels, DTT Free TV 20% 66% 12% 65%
►The growth in multi-channel access is driven by Free DTT Source : internal sources 5 TV fragmentation Impacts of fragmentation
Daily average audience share on Hwives <50 years old in H1 2007 M6 average Audience 3 million of 10million of 16million of 24million of 11million of audience share by share in % viewers viewers viewers viewers viewers time slots M6 daily average audience share 20
18.6% Other TV average audience share by time slots 15.9% 15 Other TV daily average audience Other TV share
10 6:00-12:00 am 12:00-5:00 pm 5:00-9:00 pm 9:00-10:40 pm 10:40-00:30 pm
Audience fragmentation
Weak resiliency Historical channels are Niche channels Advertising market Despite the increase in federative, powerful and dedicated to specific channels (offer), TV dedicated to mass audiences targets changes to be mitigated consumption remains High audiences have a real Attractiveness depends stable value on time slots Source : Médiamétrie - Mediamat 6 Platforms New technologies bring about a fragmentation fragmentation of platforms …
Network
Broadband Web 2.0
Multi- media New platforms and VOD/TV on Internet technologies Digital TV
Mobile TV : Mobility HD 3G/DVB-H Multi- platforms
7 Platforms fragmentation …and new consumption
Network Individual personal media culture Broadband Web 2.0
Consumers become Increasing popularity of Multi- media producers and creators life-style media New platforms and VOD/TV on Internet technologies Digital TV lead to On demand culture New consumption Popularity of video- (anytime, anywhere) sharing sites
Mobile TV : Mobility HD 3G/DVB-H Multi- platforms Community webs
Interactivity Tribes Free Extended programmes life
New business models
Consumers are mainly looking for professional videos 8 One media, one type of consumption
Exclusivity of media – 15 to 24 y.o
TV remains the most exclusive media - TV consumption does not decline far
Among new media, Internet is the most used – But it is the less exclusive media
Internet exclusivity TV exclusivity
100% Monday - Friday 100% Monday - Friday
90% 90% % exclusive % exclusive TV 80% 80% Intenet users users 70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
h h h h h h h h h h 5h 6 7h 8h 9 6 9 2 5h 6h 7 8h 9h 1 2 5 8 10h 11h 12h 13h 14h 15h 1 17h 18h 1 20h 21h 2 23h 10h 1 1 13h 14h 1 16h 17h 1 19h 20h 21h 22h 23h
Media are complementary Source : Media In Life - Médiamétrie 9 Platforms fragmentation A new lifecycle still dominated by original FTV
Before Original Free-TV original After original broadcast broadcast broadcast
Viewers Free VoD Programmes repetition Trailers , Babelgum Cable and niche channels , daily motion broadcaster websites, broadcaster websites, mobiles, digital set-top- mobiles boxes Exclusive Preview / Pay Pay VoD DVD VoD Buy on- and off-line Broadcaster websites; Mix Pay/Free VoD In competition with digital set-top-boxes; Pay VoD mobiles
Original Free TV broadcast is the core step of the business cycle New+ revenues cycles
10 M6’s strategy : Strong content for a powerful multimedia group
11 Contents Strong contents for strong brands
To be used To be sold to other All rights and librairies in M6 Group players
M6 Group broadcasting rights
Output deals Inhouse production External sourcing
US series Entertainment Information magazines Movies
Mandarin Films
Strong contents to build powerful brands Broadcast on a family of channels and different platforms Diversify revenues (rights, librairies) 12 A family of channels A comprehensive family of channels
M6 Family of Channels A leading FTA channel on the main commercial targets : housewives under 50 years old, 1 15-34 years old, and 15- 49 years old
2 Premium content, innovation and know-how
Creation of the content and the brand value 3 Sharing of content with the other channels to build a strong family 4
13 A family of channels A comprehensive family of channels
M6 Family of Channels Leader of DTT channels for 15-49 years old
1 A mix of dedicated content and M6 successful brands extension
2 A different offer
Sharing of content and know-how with M6 3
4
14 A family of channels A comprehensive family of channels
M6 Family of Channels
Thematic channels dedicated to specific targets: women and upper-middle classes 1 Complementarity of Time slots and targets with M6 2 A strong identity
3 Sharing of content and know-how with M6
4
15 A family of channels A comprehensive family of channels
M6 Family of Channels
Young targets
1 Morning and daytime consumption
Niche channels 2 Sharing of content and know-how with M6 3
4
16 Contents on all platforms A multimedia presence
Launch of the programme Mobile TV It acquires power Free-to-Air TV It attracts the largest audience Nouvelle Star Mobile An average audience of 4.5 million viewers Videos of candidates, contents, games Community
Web platforms DTT channels W9, Nouvelle StarStar…ç…ç…ç…çaa Castings Clips, trailers, parts continue of the prime An average audience Entire shows share of 6.2% on +4 nouvellestar.fr years old DTT equipped 141 million viewed Digital channel pages (+74% vs. 2006) 6 million visitors (+6% vs 2006) Nouvelle Star ………ççça ça continue 17 Conclusion A powerful multimedia group
Content creation and Expand a family of 4 years old acquisition to build strong generalist, thematic and brands niche channels covering all main targets
Women 50 y.o Men
Use of content on Enlarged audiences diversified platforms to and monetisation, extend the brand combined with new audience sources of revenues + 50 y.o 18 TV Broadcasting CEO Conference 2007
July 11, 2007 JP Morgan 19