Annual report 2014

Group Profile |

Businesses

| Litigation | Risk Factors

Canal+ Group

Section 2

Businesses

2.1. Canal+ Group

Canal+ Group is the largest audio-visual media group in France. It

is a leading producer of premium and special-interest channels as

well as a leader in the bundling and distribution of pay-TV offers, in

France and internationally, particularly in Africa, Poland and Vietnam.

The group’s portfolio totals 11 million individual subscribers and

15.3 million subscriptions. Recently, the group has successfully developed

projects in free-to-air television.

A pioneer in the development of new television services, it is also a

benchmark player in the production and distribution of feature films.

2.1.1.

Strategy/Positioning

Canal+ Group strives to offer its subscribers the best content and

services in terms of exclusivity, quality, mobility, consumer choice and

customization.

Canal+ Group’s primary goal is to continue to accelerate its growth in the

short and medium term, both in France and abroad. It already possesses

all the assets needed to achieve this goal. Its Canal+ and Canalsat brands

are powerful, with strong brand recognition. Its culture, based on the

sharing of experiences, exchange of expertise and on cost synergies

between entities, carries its growth. Its ability for innovation to adapt to

changing markets is well recognized. In recent months it has confirmed

its presence in high-growth regions.

Furthermore, the group intends to capitalize on growth relays established

in free-to-air television around the three channels D8, i>Télé and D17,

in the production of audiovisual content based on initiatives developed

around new TV formats and via its Studiocanal subsidiary and, finally,

on the Internet, with new offers (Canalplay) and a stronger presence on

video sharing platforms.

2.1.2.

Pay-TV in France

■

2.1.2.1. Programming Activities

Canal+ channels

Canal+ Group produces six premium channels offering exclusive, original

and innovative programming:

a general interest channel (Canal+), which offers movies, sports,

news, drama, documentaries and entertainment programs; and

five high added-value channels (Canal+ Cinéma, Canal+ Sport,

Canal+ Family, Canal+ Décalé and Canal+ Séries), featuring their

own programs.

These channels (the Canal+ channels) broadcast 365 films on Canal+ and

485 over all their formats.

With widely recognized expertise in sports coverage, Canal+ Group

offers an average of 5,500 hours of sports programing annually to its

subscribers, most of which is live, covering more than sixty of the top

sports, including League 1 and the British Barclays Premier League in

soccer, the Top 14 in rugby, and the World Championship in Formula 1

racing.

Special-Interest Channels

Along with the premium channels, Canal+ Group produces about 20

special-interest pay channels covering major TV segments, including

movies with the Ciné+ channels, discovery with Planète+, sports with

Sport+, and children’s programming with Piwi+, Télétoon and Télétoon+1.

■

2.1.2.2. Bundling Activities

Canal+ Group combines and assembles channels in packages or theme

packs. The premium package offers the Canal+ channels, while the

Canalsat package is made up of special-interest channels.

Canalsat offers more than 150 channels, both those produced by the

group (the “+” channels) and the special-interest channels coming from

third-party publishers (50 exclusively). It is available on satellite, ADSL

and DVB via a new set-top box connected to the Internet.

Canalsat is accessible on all screens (Internet on PC and Mac, as well as

mobile devices) with over 100 channels offered live or on demand via the

site and the new myCanal interface.

The Canalsat catch-up on-demand offer represents the largest library of

this type in the French market, with nearly 70 channels representing more

than 8,000 programs available at any time. Every month, more than seven

million programs are viewed by subscribers.

■

2.1.2.3. Distribution Activities

Canal+ Group distributes its offerings through specific subscriptions

on DVB, satellite, ADSL, fiber, cable (the Canal+ channels only), mobile

devices and the Internet. Offers are sold through call centers, the group’s

websites, at nearly 7,000 points of sale, through the group’s commercial

partners (big-box retail stores, specialized stores and phone boutiques)

and via Internet Service Provider (ISP) distribution platforms.

Annual Report 2014