Magazine article Screen International

Vivendi Announces $338M Cuts at France Pay-TV Channel Canal+

Magazine article Screen International

Vivendi Announces $338M Cuts at France Pay-TV Channel Canal+

Article excerpt

Paris-based media and entertainment giant Vivendi has launched a $338m (euro300m) cost-cutting programme at Canal+ France, aimed at reining in mounting losses at the premium pay-TV channel.

"A euro300 million cost-savings plan, which does not impact the customer, has been implemented at Canal+ in France," the company said in a press release.

"It comprises a euro100 million reduction in costs associated with subscriptions (e.g., marketing, set-top box management), a euro50 million reduction in technical and broadcasting-related costs as well as a euro150 million decrease in program production and publishing costs."

It said the full effects of the plan would be seen in 2018 with savings of euro60-80m expected already this year.

Mounting losses

According to Vivendi's first half 2016 results, which were announced on Thursday (Aug 25), Canal+ France losses rose to euro106m, against euro47m for the same period in 2015.

The conglomerate said that Canal+ subscribers in mainland France had declined by 272,000 contracts over the first half of 2016 and stood at 8.187 million subscriptions as of June 30, 2016.

The French arm of the pay-TV network has come under increased competition in recent years for entertainment and sports rights as well as customers with the arrival of new players such as BeIN Sports and the rise of global digital platforms.

It was not clear whether spending in cinema production would be impacted by the cuts.

Under state obligations, the channel invests 12. …

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