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Vivendi is a world leader in entertainment with content creation and distribution at the heart of its businesses . The entertainment industry is a fast-growing sector driven by the development of leisure time (changing lifestyles, increased life expectancy, development of leisure activities, etc.), an increased desire for unique experiences, and by new technologies which provide quality digital content any time, anywhere at decreasing prices. Leisure activities are considered to be “very important” by 35% of the world’s population (from 14% in China to 55% in Sweden, 45% in the United Kingdom, 43% in the United States and 31% in France*). Entertainment has become a key component of everyday life to which consumers allocate an ever-increasing budget. Vivendi’s businesses – music, television, cinema, mobile, Internet and games – all meet this growing demand and are positioned to make the most of this profitable and important source of growth. Vivendi’s strategy is to expand its business activities in content creation and distribution and its digital services. In 2006, the group invested over €5 billion to expand its businesses and strengthen their leadership in their respective markets. Vivendi is well placed to facilitate the largest investments made by its subsidiaries such as the recent Canal+/TPS merger, the acquisition of exclusive broadcasting rights for the French League 1 soccer championship, the development of the World of Warcraft game, the launch of 3G services, the acquisition of game development studios and the proposed acquisition of BMG Music Publishing. Vivendi’s businesses share many common denominators: they directly target consumers via strong brands (Universal Music, Canal+, SFR, Maroc Telecom, Vivendi Games, etc.), and they offer creative content based on subscriptions and digital technology models. These denominators provide Vivendi with a strong competitive advantage: through the exchange of know-how, they allow the group to develop substantial expertise in subscriber management, brands, distribution platforms, creation, copyrights and digital technologies. The digitization of content, combined with the growing adoption of broadband distribution technologies, is creating major challenges and opportunities. Vivendi’s strength lies in anticipating consumer needs and meeting them, identifying future growth drivers for the group and reinforcing its businesses. (1) Human Beliefs and Values: a cross-cultural sourcebook, Inglehart, Basanez and Moreno (The University of Michigan Press). |