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France: Update on free-to-air and pay-TV - Venture Insights

Report Overview

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France: Update on free-to-air and pay-TV

PublisherEnders Analysis.
Publish Date December 1, 2010
Sector Fixed Line (Internet and Voice), FTA TV, Pay TV.
Company Canal Plus, Orange, Vivendi.

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The digital transition is almost complete in France, five years after the launch of DTT. After undergoing an audience share decline, TF1’s share is stabilising. In contrast, M6 improved its audience share during the transition. Both groups are likely to remain dominant in the FTA TV market, thanks to the partial withdrawal of public TV from advertising sales.

The advertising recovery in 2010 was strong. Thanks to its diversification, M6 is less exposed to the cycle than TF1, which is rebounding more strongly. M6 is also structurally more profitable.

Pay-TV platform growth has stalled, with subscription decline at Canal+ somewhat balanced by growth of low cost packages of IPTV providers. Canal+ will benefit from the withdrawal of Orange from premium TV and a new distribution deal with Orange. Combined with the roll out of new set-tops with PVRs, we are moderately optimistic on Canal+ prospects.