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An Integrated Reporting Process Promoting Value Creation
Creating Value for Artists
It is essential for Vivendi to create value for the artists and the talent
that produce the cinematographic, musical and audiovisual content or the
entertainment programs that the group offers its customers, its subscribers
and its different audiences. Discovering creative sources, paying special
attention to the contribution of women and their access to cultural life,
identifying talent, supporting it, ensuring respect for intellectual property,
providing this talent with exposure on a local and international scale are
at the core of Vivendi’s missions.
In this way, the investments of Universal Music Group, the world leader in
music, contribute to musical creation by discovering and supporting artists
in all the countries where this group has a presence. This mobilization of
financial resources and employee know-how creates a continuous renewal
of the repertories that satisfies the diverse tastes of audiences on a global
scale. It also favors the attraction of local talent eager to be signed by
prestigious labels with an international reputation.
Finally, the investments made to digitize the catalog allow the artists
to extend the life of their works while simultaneously ensuring that the
group’s profits continue to increase. In fact, the digitization of musical
works no longer accessible on physical medium enhances the value of the
assets making up the exceptional UMG catalog in all its genres, including
pop, classical, jazz and rock.
Canal+ Group, the leading French audiovisual media group, established
in France, Africa, Poland and Vietnam, is the main contributor of funds to
French cinema and the European leader in the production and distribution
of films and TV series along with its subsidiary Studiocanal. Cultivating the
creativity of local talent and taking advantage of the pooling of the group’s
areas of expertise strengthens artists’ exposure.
Thus, in 2015, Canal+ Group has remained a privileged partner of French
cinema. It actively supported creation by financing 55% of the French-
initiative films approved by the CNC (the French national centre for cinema
and motion pictures) for 175 million euros, which represents a total of
129 films.
Studiocanal has developed an ambitious production policy for European
works with important international potential, thus proposing an alternative
and complementary offer to that of the major American production
companies. With a direct presence in the three largest European markets
– France, Germany, United Kingdom – Studiocanal thus secures its supply
of projects and a durable link with some of the greatest European talent.
On the African continent, the investments of Canal+ Afrique in local
content increased by 80% in one year. In 2015, 5.5 million euros were
invested in African production (films, audiovisual programs, A+, Nollywood
TV). The construction of the CanalOlympia movie theatres and performance
venues in numerous countries of the continent is fuelled by the same
determination: identifying and supporting local talent to give it the means
to make itself known and to reach vast audiences.
In Vietnam, the subsidiary of Canal+ Group, K+ is attentive to the
development of new talent to work for an ambitious and accessible
Vietnamese movie industry. The study of scripts, prior to commitment,
corresponds to this dual ambition. In 2015, for the first time,
K+ co-produced five Vietnamese films.
Digital gives an additional impetus to this business expertise in the
discovery and support of talent particularly through the effectiveness of
social networks and easier access to works, allowing the group to meet
the new needs of their customers, particularly as regards the conditions
under which they choose to consume their content. Vivendi is also
increasing its investments in different platforms including Dailymotion and
Watchever to optimize the exposure of the artists signed by the group (see
Chapter 2, Section 2.1.1 of the Annual Report 2015).
Vivendi pays close attention to the distribution of value and puts significant
effort to ensuring respect for intellectual property, which is a necessary
condition for the fair remuneration of rights holders.
On October 2, 2015, Universal Music France signed a Memorandum
of Understanding for the fair development of online music pursuant to
which the parties “believe that it is indispensable, in the best interest of
the entire industry, to re-establish trust by ensuring the most transparent
and the most equitable sharing possible of all revenues generated by the
digital exploitation of musical works.” Producers in particular made the
commitment within this framework to guarantee a minimum compensation
to artist-performers. “All these provisions constitute considerable advances
for artists.” (source: French Ministry of Culture).
Furthermore, in May, Canal+ signed an agreement with all of the
professional organizations of the film industry. This agreement defines
in particular the investment commitments of Canal+ “in European
and original French expression feature-length cinematographic
works“ in addition to commitments to a diversified film acquisition
policy of French expression feature-length cinematographic works
2.5.
Creating Value for Artists
31%
AMOUNT OF MARKETING AND RECORDING
INVESTMENT OF UNIVERSAL MUSIC FRANCE
dedicated to new talent
(artists releasing their first album) as a percentage
of total investment
29%
ON AVERAGE OF UNIVERSAL
MUSIC FRANCE’S REVENUE
from the sale of new products, was
generated by new talent (artists
releasing their first album)
65%
OF UNIVERSAL
MUSIC GROUP SALES
generated by local artists
in their own country
20
first French-
initiative films
and
14
second French-
initiative films
financed by
CANAL+
K E Y F I G U R E S *
Source: Universal Music France.
Source: UMG
Source: Canal+
(scope of 59 countries)
EXTRA-FINANCIAL INDICATORS HANDBOOK
2015
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