{"id":644570,"date":"2024-11-18T18:11:07","date_gmt":"2024-11-18T15:11:07","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/canal-ceo-touts-super-aggregator-strategy-says-overspending-kills\/"},"modified":"2024-11-18T18:11:07","modified_gmt":"2024-11-18T15:11:07","slug":"canal-ceo-touts-super-aggregator-strategy-says-overspending-kills","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/canal-ceo-touts-super-aggregator-strategy-says-overspending-kills\/","title":{"rendered":"#Canal+ CEO Touts \u201cSuper-Aggregator Strategy,\u201d Says \u201cOverspending Kills\u201d"},"content":{"rendered":"
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\n\tCanal+, the pay-TV business of French media<\/a> and telecom conglomerate Vivendi, on Monday shared its core beliefs and business strategies ahead of its planned split from Vivendi into a separate stock listed in London. Among them are a belief in the power of the Paddington<\/em> franchise, its \u201csuper-aggregation strategy,\u201d which CEO Maxime Saada compared to judo, and cost and spending discipline.<\/p>\n

\n\t\u201dI have seen competition come and go. The one common thread to all of these competitors: overspending,\u201d Saada told the firm\u2019s capital markets day in London, which was live streamed. \u201cI believe you live or die at the moment you sign the check. On content, on technology<\/a>, on M&A, overspending is what kills companies in our business. At Canal+, we do not believe in what some would call \u2018strategic spending that does not have a clear positive impact on P&L (profit and loss statements).\u201d<\/p>\n

\n\tThat was one of eight core beliefs the CEO highlighted on Monday. \u201cPay-TV is an attractive and growing market,\u201d is another. \u201cWe have deliberately expanded Canal+ to 52 countries on three continents,\u201d Saada emphasized. \u201cThe one thing that these markets have in common: all of them are growing \u2013 for different reasons \u2026 but all of them are growing.\u201d<\/p>\n

\n\tA third core focus is a diverse content slate. \u201cOur multi-content value proposition is unique, and it is a winning app<\/a>roach for two reasons,\u201d the CEO explained. \u201cOne, offering cinema, series<\/a>, sports documentaries, kids programs, combining local and global content and mixing third-party and in-house content allows us to satisfy each and every member of the household and maximize satisfaction, average revenue per user (ARPU) and loyalty. Two, this diversified multi-content approach enables us to reduce our dependency on any given type of piece of content.\u201d He cited the examples of the COVID pandemic, when sports weren\u2019t available on TV, and the dual Hollywood strikes, when the firm was lacking U.S. originals as key examples.<\/p>\n

\n\tAgility is yet another core Canal+ belief. Despite a presence in more than 50 countries and 27 million subscribers, the firm relies on fast decision-making, Saada said. \u201cI believe speed is critical, and so is the ability to change course when required,\u201d he said. One example is how the company approached the emergence of subscription video on-demand platforms. \u201cWhen they emerged, we did not see a threat. We saw an opportunity, and we seized it,\u201d the Canal+ CEO said. \u201cLike in judo, we\u2019ve used the strength of others to our advantage in our super-aggregation strategy.\u201d<\/p>\n

\n\tAnother core strategy of the Canal+ team is that \u201ccontrolling distribution is absolutely essential,\u201d he noted. The same is true for the belief that \u201cscale and a local approach complement each other.\u201d<\/p>\n

\n\tThe final two strategic focuses are of a different sort. \u201cOur seventh core belief is that as a media company, Canal+ has a specific responsibility that extends beyond financial performance to include our impact on the environment and society,\u201d Saada told the event. \u2018Finally, core belief number eight, we believe in Paddington<\/em>.\u201d <\/p>\n

\n\tThe famous bear from Peru then appeared on screen with some more information touting Canal+ after mentioning he was currently in his homeland, in which the upcoming third feature film, Paddington in Peru<\/em>, is set. <\/p>\n

\n\tSaada on Monday also mentioned Netflix several times. Over a decade ago, when he ran marketing, pay-TV penetration in France was stable at around 30 percent. \u201cThe reality was, we hit a wall,\u201d he recalled. \u201cWe simply did not prove our ability to grow the market. Our growth potential was totally constrained. Then, Netflix arrived with a new value proposition, low price, no commitment, and an impressive user experience, and was later joined by Amazon, Disney+, and others. As a result, these platforms convinced an entirely new spectrum of the population to do something they had never done before \u2013 pay for content.\u201d<\/p>\n

\n\tAnd he emphasized: \u201cPay-TV penetration in France jumped from 35 to 71 percent over the last eight years. SVOD platforms literally doubled the size of the market.\u201d<\/p>\n

\n\tNetflix and other streamers are being offered on Canal+ as third-party streaming platforms. \u201cIn 2016, I went to Los Gatos to meet with [Netflix boss] Reed Hastings,\u201d Saada told the investor event, quipping: \u201cYes, I did go to Los Gatos.\u201d<\/p>\n

\n\tWhat did he say? \u201cI argued that although we could be perceived as competitors, we were actually on the same side, encouraging people to pay for content,\u201d the Canal+ boss recalled. \u201cAs a result, Canal+ was one of the first operators, and certainly the first incumbent, to carry Netflix on its platform. This was the first of many agreements we signed with streaming platforms. But these are not simple carriage agreements. They are true partnerships.\u201d <\/p>\n

\n\tHaving those streaming partnerships in addition to free-to-air networks, basic pay-TV channels, and premium in-house channels differentiates Canal+. \u201cThis position is not replicable by other competitors,\u201d concluded Saada.\u201d Netflix will not carry Apple TV+ or Max or Paramount+. This is a key element of our positioning.\u201d<\/p>\n

\n\tThe supervisory board of\u00a0Vivendi, led by chairmanship Yannick Bollor\u00e9 and\u00a0CEO Arnaud de Puyfontaine, recently approved a plan for a\u00a0split into four companies, with shareholders set to vote on it on Dec. 9. If approved, it will lead to the separation of\u00a0Canal+, advertising powerhouse Havas and publishing firm Louis Hachette Group, which consists of the firm\u2019s 66.53 percent stake in Lagard\u00e8re and full ownership of Prisma Media, from Vivendi. Bollor\u00e9 will serve as chairman at Canal+, with\u00a0Saada\u00a0remaining CEO.<\/p>\n

\n\tVivendi early on Monday had also said that Canal+ expects revenue growth for 2024 to be \u201cbroadly in line\u201d with 2023. Revenue for 2025 will \u201cgrow organically but this growth will be negatively affected and slightly more than offset by the anticipated end of broadcasting of its French free to air channel C8, and the termination of sub-licensing contracts and of onerous third-party content contracts in France.\u201dOver the medium term and assuming an unchanged asset mix, Canal+ expects its revenue to grow \u201cmoderately,\u201d the firm added.<\/p>\n

\n\tMeanwhile, also over the medium term, Canal+ expects adjusted its earnings before interest, tax, and amortization margin \u201cto continue to improve moderately as a result of cost optimization, operating leverage, and the expected transition to profitability of newly integrated assets transferred from Vivendi,\u201d the company said. Plus, cash flow from operations is for 2025 projected to return to a level similar to that of 2023 after a hit in 2024 \u201cdue to an exceptional concentration of payments following recent content contract renewals and signatures and potential non-recurring payments in respect of proposed tax adjustments.\u201d<\/p>\n

\n\tThe Canal+ guidance came with one big caveat. If its proposed acquisition of control of African pay-TV giant MultiChoice does get completed, this \u201cwould significantly impact the financial profile of the group in the medium-term in Africa and overall, adding a revenue growth engine while providing potential significant cost synergies,\u201d the company said.<\/p>\n

\n\tVivendi has said that its separation plan is designed \u201cto fully unleash the development potential of Vivendi\u2019s different activities,\u201d adding: \u201cThe group has endured a very high conglomerate discount since the distribution and listing of Universal Music Group (UMG) in 2021.\u201d The new stocks are set to start trading on Dec. 16.<\/p>\n<\/p><\/div>\n

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Canal+, the pay-TV business of French media and telecom conglomerate Vivendi, on Monday shared its core beliefs and business strategies ahead of its planned split from Vivendi into a separate stock listed in London. Among them are a belief in the power of the Paddington franchise, its \u201csuper-aggregation strategy,\u201d which CEO Maxime Saada compared to…<\/p>\n","protected":false},"author":1,"featured_media":644571,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.hollywoodreporter.com\/wp-content\/uploads\/2019\/04\/maxime_saada_-2_c_philippe_mazzonicanal_copy.jpg?w=1296&h=730&crop=1","fifu_image_alt":"","footnotes":""},"categories":[17],"tags":[147222,124783,138251],"class_list":["post-644570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-mediaa","tag-canal","tag-international","tag-vivendi"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/644570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=644570"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/644570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/644571"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=644570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=644570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=644570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}