Page 261 - 2012 Annual Report

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VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
III - CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 10 Content assets and commitments
Off balance sheet commitments given/(received)
(in millions of euros)
Minimum future payments as of December 31, 2012
Total minimum future
payments as of
December 31, 2011 Total
Due in
2013 2014-2017 After 2017
Film and television rights (a) 2,590 1,138 1,411 41 2,143
Sports rights (b) 1,715 612 1,103 - 2,052
Creative talent, employment agreements and others (c) 959 478 445 36 1,009
Given commitments 5,264 2,228 2,959 77 5,204
Film and television rights (a) (114) (72) (42) - (85)
Sports rights (12) (7) (5) - (15)
Creative talent, employment agreements and others (c) not available
Other (199) (78) (121) - (63)
Received commitments (325) (157) (168) - (163)
Total net 4,939 2,071 2,791 77 5,041
(a) Mainly includes contracts valid over several years for the broadcast of film and TV productions (mainly exclusivity contracts with major US studios)
and pre-purchase contracts in the French movie industry, StudioCanal film production and co-production commitments (given and received) and
broadcasting rights of CanalSat and Cyfra+/“n” multichannel digital TV packages. They are recorded as content assets when the broadcast is available
for initial release. As of December 31, 2012, provisions recorded relating to these commitments amounted to €86 million, compared to €153 million
as of December 31, 2011.
In addition, this amount does not include commitments given in relation to channel right contracts for which Canal+ Group and GVT (following
the launch of its pay-TV offer in October 2011) did not grant minimum guarantees. The variable amount of these commitments cannot be reliably
determined and is not reported in the Statement of Financial Position or in given commitments and is instead recorded as an expense for the period in
which it was incurred. Based on the estimation of the future subscriber number at Canal+ Group, commitments in relation to channel right contracts
would have increased by €288 million as of December 31, 2012, compared to €143 million as of December 31, 2011.
Moreover, according to the agreement entered into with cinema professional organizations on December 18, 2009, Société d’Edition de Canal Plus
(SECP) is required to invest, every year for a five-year period (2010-2014), 12.5% of its annual revenues in the financing of European films. With respect
to audiovisual, in accordance with the agreements with producers and authors’ organizations, Canal+ France is required to invest a percentage of its
revenues in the financing of heritage work every year.
Agreements with cinema organizations and with producers and authors’ organizations are not recorded as off balance sheet commitments as the future
estimate of these commitments cannot be reliably determined.
(b) Notably includes the rights to broadcast the French professional Soccer League 1 awarded to Canal+ Group in 2011. The price paid by Canal+ Group
represents €427 million per season, or a total of €1,281 million as of December 31, 2012 for the 2013-2014 to 2015-2016 seasons, compared to
€1,708 million as of December 31, 2011. These commitments will be recognized in the Statement of Financial Position either upon the start of every
season or upon initial payment.
(c) Primarily relates to UMG which routinely commits to artists and other parties to pay agreed amounts upon delivery of content or other products
(“Creative talent and employment agreements”). Until the artist or the other party has delivered his or her content or the repayment of an advance,
UMG discloses its obligation as an off balance sheet given commitment. While the artist or the other party is obligated to deliver a content or other
product to UMG (these arrangements are generally exclusive), this counterpart cannot be reliably determined and, thus, is not reported in received
commitments.