18
Annual Report -
2013
-
Vivendi
Group Profile |
Businesses
| Litigation | Risk Factors
1
Canal+ Group
2.1.6.
2013 Highlights
In January, Canal+ Group acquired exclusive rights to all broadcasts
of the English Barclays Premier League, the most-widely watched
soccer championship in the world.
In February, Canal+ Group obtained exclusive and complete rights to
the FIA Formula One World Championship.
In March, the Canal+, ITI and Liberty Global audiovisual groups
announced the launch in Poland of nc+, the digital package created
from the merger of Cyfra+ and “n.”
In April, Canal+ Group and HBO announced they had entered into
a five-year licensing agreement for all new HBO series, covering
all the Group’s premium, special-interest and free-to-air channels.
In June, Canal+ Overseas and the Loret Group announced an
agreement that Canal+ Overseas would take a 51% majority interest
in the share capital of Mediaserv, an overseas telecommunications
operator. The Competition Authority approved the deal on
February 10, 2014.
In July, Canalplay became available on Apple TV.
In September, Canal+ Group launched Canal+ Séries, which offers
new series in the original subtitled versions, immediately after their
broadcast in the United States, as well as broadcasts of complete
seasons.
In November, Canal+ Group announced the launch of several
channels based on unscrambled Canal+, D8, D17 and i>Télé
programs on YouTube.
In December, Studiocanal announced it was taking a majority
ownership interest in Red Production Company, one of the largest
English TV series production companies.
In December, the myCanal app became available for all connected
devices. It allows Canal+ and Canalsat subscribers to use a single
screen for all their offerings and related services.
At the end of December, Société d’Edition de Canal Plus SA
(SECP SA) announced a transaction aimed at simplifying the
Canal+ Group’s corporate structure, by means of a merger and
takeover by Canal+ SA Group of Canal+ France, its wholly-owned
subsidiary, which took place on December 31, 2013. Pursuant to this
transaction, the Canal+ SA Group directly owns 48.5% of the share
capital and voting rights of SECP SA.
2.1.7.
Regulatory Environment
The overall Canal+ Group regulatory environment has been discussed in
previous annual reports and did not change significantly in 2013.
The audiovisual communication industry in Europe is subject to
national laws and regulations. In France, their application is overseen
by regulatory authorities such as the CSA. Canal+ has a license to
broadcast the Canal+ channel in France via terrestrial networks as well
as networks that do not use frequencies assigned by the CSA, such as
satellite, cable and ADSL. This license was renewed in December 2000
for a period of five years, then extended for an additional five years
by the CSA’s decision in March 2005, before the Canal+ channel’s
authorization to broadcast over terrestrial networks was extended for
another ten years, up to December 2020.
Through its subsidiary Canal+ France, Canal+ Group holds a controlling
interest in SECP SA, a company listed on Compartment B of Euronext
Paris, which holds the Canal+ broadcast license. (A non-EU national
shareholder is not permitted to hold more than 20% of a company that
holds a broadcast license.)
A single company may hold, directly or indirectly, seven licenses for a
national terrestrial digital television broadcasting service. Canal+ Group
has four licenses for pay-TV channels (Canal+ HD, Canal+ Cinéma,
Canal+ Sport and Planète+) and three for free channels (i>Télé, D8
and D17).
Under its license to broadcast in France, Canal+ Group must comply with
certain requirements. 60% of audiovisual works and films distributed
by Canal+ SA must be of European origin, and 40% must be originally
broadcast in French. Each year, the channel must spend at least 3.6% of
its aggregate net revenues from the previous year on “heritage works”
(works of fiction, animation, creative documentaries, music videos
and filming or recreation of live performances). A portion of these
expenditures (representing at least 3.1% of net revenue) is allocated to
the development of independent production.
In the film sector, in December 2009, film industry organizations,
including BLOC (
Bureau de liaison des organisations du cinéma
), UPF
and ARP, entered into an agreement. The purpose of the agreement is
to sustain and strengthen film financing: Canal+ must dedicate 12.5%
of its annual revenue to acquiring European films, including 9.5%
for original French works. This figure includes a success premium
guaranteed at 0.5% of revenue. It benefits French films that have sold
over 500,000 tickets at the box office or French and European diversity
pre-purchases that enjoy the greatest success. This agreement, which
was confirmed through regulations, became effective in 2010.
For their part, the Canalplay VoD and Canalplay Infinity services are
subject to regulations relating to on-demand audiovisual media services.
Firstly, in November 2010, regulations were passed regarding the duty
to invest in the production of audiovisual and cinematographic works
and obligations related to offers and advertising, and secondly, in
December 2011, a CSA decision ruled on the protection of young people
and program ethics and accessibility.
Pursuant to the law of June 2009, media scheduling (which requires
compliance with the distribution window for films after their release)
has been adjusted. On July 6, 2009, Canal+ Group entered into an
agreement to ensure compliance with the law of June 2009, as
extended by the order of July 9, 2009, which provides for the following
required distribution windows:
for films available via pay-per-view video-on-demand (primarily the
Canalplay VoD service) and on DVD: four months minimum after
theater release and three months for films which sold fewer than
200 tickets in their fourth week in theaters;
