Results Films, television programs, production, distribution, exhibition, exports, video, new media

Transcription

1 RESULTS 2015

2 Results 2015 Films, television programs, production, distribution, exhibition, exports, video, new media May 2016

3 Centre national du cinéma et de l image animée 12, rue de Lübeck Paris cedex 16 Tél : Fax : Nicolas Besson, Fanny Beuré, Benoît Danard, Sophie Daubard, Hugo Dessaigne, Louis Gauthier, Sophie Jardillier, Alice Landrieu, Evelyne Laquit, Ariane Nouvet, Cindy Pierron, Linda Zidane. 2 results 2015

4 Results ELECTRONICS AND HOUSEHOLD SPENDING ON FILM, VIDEO, TV AND VIDEO GAMES CINEMA Theatrical Releases Distribution Movie theater audiences Exhibition Feature film production TELEVISION The television audience Films on television Fiction on television Support for television production Catch-up TV VIDEO, VIDEO GAMES, TECHNICAL SERVICES SECTORS DVD and Blu-ray Video on Demand (VoD) Video games The Technical Services Sector INTERNATIONAL Export of French films and Television Programs Admissions for French films abroad Cinema throughout the world CNC Public Funding results

5 1. ELECTRONICS AND HOUSEHOLD SPENDING ON FILM, VIDEO, TV AND VIDEO GAMES 4 results 2015

6 Household spending on film, video, TV and video games by the French Household spending on film, video and TV by the French amounted to 10.3 billion in 2015 (+0.3%) In 2015, household spending on film, video and TV (excluding equipment) increased by 0.3% from 2014 to 10.3 billion (after tax). According to the French national office of statistics (INSEE), in the same period, total household spending on consumer goods increased by 1.3%. Spending on video games grew (+8.8%) while spending on television (-2.0%) and video (-4.4%) were down and spending on theaters was stable. In 2015, each French household (27.9 million in total) spent an average of 370 on film, video and TV (-0.5% compared to 2014). In 2015, spending on television represented an average of 203 per household (-2.7%), versus 83 for video games (+8.1%), 48 for cinema (-0.9%) and 37 for videos (-5.1%). Household spending on film, video,tv and video games by the French¹ ( M) cinema 1, ,331.3 television 5, ,659.0 TV subscriptions 3, ,371.5 TV license fee² 2, ,287.5 video 1, ,025.2 physical video video on demand video games (physical and online) 2, ,317.4 total 10, ,332.9 ¹ Estimate, spending after tax. ² TV portion, excluding external audiovisual services and State contributions. Source: CNC / Canal+, DGMIC, GfK, IDATE, NPA Conseil. Television was the main item of expenditure Television was the main item of expenditure on film, video, TV and video games for French households. The share of television in household spending on film, video, TV and video games was 54.8% in 2015 (56.0% in 2014) of which 32.6% for subscriptions (33.4% in 2014) and 22.1% for the TV license fee (22.6% in 2014). The share of spending on video games amounted to 22.4% (20.7% in 2014). The share of spending on film was stable at 12.9%. The share of video purchases was down 0.5 points to 9.9% of which 6.8% for physical video (-1.0 point) and 3.1% for video on demand (+0.5 points). In 2015, spending on online offers accounted for over 17% of total spending of French households on film, video, TV and video games. The share of TV in household spending on film, video, TV and video games was 54.8% in results

7 Spending patterns of the French on film, video and TV (%) video games 20,7 cinema 12,9 video games 22,4 cinema 12,9 video 10,4 video 9,9 television 56,0 television 54,8 Source: CNC / Canal+, DGMIC, GfK, IDATE, NPA Conseil. Spending for theaters was stable In 2015, the film consumption of French households was stable compared to 2014 at 1,331.3 million. The decrease in the number of admissions (-1.8%) was offset by the increase in the average price of the theater ticket (+1.7%). Spending on films in theaters represented an average of 7.3 visits per household in 2015, compared with 7.5 in Spending on television was down In 2015, household spending on television (public television and pay television) was down 2.0% from 2014 at 5,659.0 million. In 2015, direct household spending on public television (the TV portion of the TV license fee, excluding external audiovisual services) fell by 2.0% on 2014 to 2,287.5 million. In 2015, the amount collected by the TV license fee increased by 3.5% to 3,181.3 million. FTA public channels received 71.9% of net resources from the TV license fee (76.0% in 2014). Household spending on this item does not directly reflect consumer behavior. Rather, this spending illustrated the French government's fiscal policy objectives for financing the public aspect of the broadcasting sector. TV license fee spending is dependent on the level of this tax, changes in the total number of television sets, current exemption policies, and how the contributions are divided up to fund public television and radio. In 2015, household spending on pay TV fell 1.9% on 2014 to 3,371.5 million. Spending on pay TV does not include revenue from access services for broadband television. According to the French regulatory authority for electronic and postal communications (ARCEP), revenue from broadband services over land line networks (internet, television, telephone) increased by 1.2% to 10.7 billion between 2014 and In the 4thquarter of 2015, the number of television accesses coupled with a subscription to internet increased by 5.0% year on year to 18.7 million. 6 results 2015

8 TV license fee in 2015 fee collected 3,181 M collection costs 29 M net fee collected (tax included) 3,153 M tax relief refund (tax included) 514 M VAT¹ 65 M available license fee revenues 3,088 M tax relief refund (before tax) 503 M VAT¹ 11 million television 71.9% radio 16.8% INA 2.5% external services 8.9% ¹Reduced VAT rate of 2.1%. Source: DGMIC. Spending on video declined while spending on video games increased The video market (physical video media and online) dropped to its lowest level since In 2015, it shrank 4.4% compared to 2014, to 1,025.2 million. The growth of the video on demand market (+19.8% to million) failed to offset the decline in the physical video market (-12.3% to million). In 2015, household spending on video games (physical and online) amounted to 2,317.4 million. It grew by 8.8% compared to results

9 Audiovisual equipment in French households Decline in TV, DVD and Blu-ray equipment, growth in smartphones, tablets and game consoles In 2015, each household had an average of 5.3 screens according to GfK, versus 3.4 screens in The television set, which represented more than half of screens owned in 2010, accounted for less than a third of the screens owned in 2015, due to the development of other screens (mobile phone, tablet, computer). The total number of screens per household is expected to rise to 7.1 in 2020 according to GfK. In 2015, the proportion of households with at least one television screen was down 1.5 points compared to 2014 at 96.1%. In 2015, sales of television sets dropped to their lowest level in France since million television sets were sold in 2015, versus 5.8 million in However, sales of ultra high-definition screens (UHD) continued on an upward curve: 570,000 units in 2015, versus 210,000 in 2014 and 10,000 in % of French households were equipped with a UHD screen in 2015, versus 0.8% in In 2015, 20.9% of households had a television set that can be connected to the internet, up by 4.4 points in one year. 2.8% of French households had a UHD television set in In 2015, the average size of screens sold (measured diagonally) was 94 centimeters (+ 2 centimeters in one year). In 2016, GfK estimated that the sales volume of television screens would rise to 5.6 million units, mainly due to the transition to high definition by the digital terrestrial network (April 5, 2016) and the European Football Championship (in June 2016). Terrestrial is still the most common means of television reception. According to the CSA television council, in the third quarter of 2015, 56.0% of French households received television via the terrestrial network (-2.4 points compared with the second half of 2014), 45.1% by broadband (+1.7 points), 23.1% via satellite (-1.3 points) and 9.4% via cable (+1.1 points). Sales of video players were down 17.3% In 2015, the sales volume for video players (DVD and Blu-ray players) slumped to a new low. With 1.3 million units sold for all products combined, sales decreased by 17.3% compared to Sales of DVD players fell 14.3% to 0.6 million units, sales of Blu-ray players were down 20.7% to 0.5 million units and sales of portable video players dropped 16.3% to 0.2 million. The equipment rate of French households in video players (all types combined) is falling. In 2015, it stood at 74.2% for DVD players (-5.1 points compared to 2014) and 28.2% for Blu-ray players (-1.1 point). In parallel, the share of households with a home cinema was down for the third consecutive year (13.9% in 2015). Sales of smartphones totaled more than 20 million units The smartphone is the audiovisual product which enjoyed the strongest growth, both in terms of equipment rates and sales. In 2015, 62.3% of over 11 year olds possessed a smartphone, 8 results 2015

10 versus 51.2% in Smartphone sales reached record levels: 20.6 million units in 2015, compared with 18.2 million units in The average screen size of phones sold (measured diagonally)was almost 12 centimeters (+1 centimeter in one year). According to GfK, smartphone sales are set to rise to 22.0 million units in % of French households had a games console in % of French households had a tablet in 2015, compared with 36.1% in Tablet sales dropped to 5.2 million units in 2015 (6.2 million in 2014). The volume of tablet sales was higher than the volume of television set sales for the third year in succession. In 2016, tablet sales are forecast to drop to 4.3 million units according to GfK. In parallel, 52.1% of French households had a video game console (all types) in 2015, versus 51.5% in The equipment rate for 8th generation home consoles was 12.6% in 2015 versus 7.1% in French household audiovisual equipment millions of households equipped % of households TV set connectable TV DVD player¹ Blu-ray player¹ home cinema video game console tablet smartphone² ¹ All types (home player, video game console, computer, etc.). ² % of individuals aged 11 and over. Source: GfK - Connected equipment reference. results

11 Sales of audio-visual equipment (millions of units) ,2 20,6 15, ,5 11, ,7 6,5 8,5 8,7 6,2 6,2 5,4 7,5 5,2 4,2 6,7 5,4 5,9 6,0 3,6 3,4 3,6 3,0 5,6 5,8 2,5 5,1 1,8 1,5 1,8 1,5 1,3 0, , TV set video player smartphone tablet Source: GfK. 10 results 2015

12 2. CINEMA results

13 Methodology 2.1. Theatrical Releases In order to analyze cinema attendance in more detail, three distinct program scopes were retained: feature films, short films and non-feature films (recordings of live shows and audiovisual programs). Some analyses are presented on all programs, others strictly on feature films. Revenues include all taxes (incl. VAT). Traditionally the CNC calculates an average revenue per admission (ARA). This indicator is the result of dividing the box office receipts by the paid admissions, as declared by the operators. The ARA takes into account both paid admissions (other than unlimited subscriptions) and actual admissions through these subscriptions, for which the revenues are valued based on the reference price of Over 205 million admissions, -1.8 % With million tickets sold in 2015, paid admissions to theaters fell by 1.8 % compared with After an exceptional 2014, the results for attendance observed in 2015 remained at a historically high level. For the sixth time in ten years, admissions broke through the 200 million barrier. Moreover, the 2015 attendance level was above the average recorded for the last ten years (199.5 million). In 2015, attendance at movie theaters in France remained the highest in Europe. Nevertheless, attendance increased on the other European markets: % in Germany, +9.2 % in the United Kingdom, +8.9 % in Italy and +8.2 % in Spain. More than 1.33 billion euros in revenues In 2015, the box office at movie theaters totaled 1,331.3 million, a level close to that of 2014 (- 0.1 %). Revenues excluding taxes (excl. VAT and tax on cinema tickets) amounted to 1,118.2 million in 2015 vs. 1,119.8 million in 2014 (-0.1 %). Increase in average revenue per admission to 6.48 In 2015, the decline in admissions was greater than that of revenues. Consequently, the average revenue per admission (ARA) amounted to 6.48 incl. taxes in 2015, a rise of 1.7 % from 2014 ( 6.38 incl. taxes). The ARA excluding taxes (excl. VAT and tax on cinema tickets) amounted to 5.45 in 2015 vs in 2014 (+1.7 %). In 2015, attendance reached million admissions (-1.8 % compared to 2014) for 1.33 billion euros in revenues (-0.1 %) and average revenue per admission of 6.48 incl. taxes (+1.7 %). 12 results 2015

14 The total number of showings continues to grow In 2015, film programming exceeded the threshold of 7 million showings for the fifth consecutive year. In fact, 7.8 million paid showings were organized in theaters in 2015 (+2.6 % from 2014). Since 1993, the year of the first multiplexes, the annual number of showings has continued to grow (+3.5 % per year on average between 1993 and 2015). Over the period , the number of showings increased 24.7 %. Over 98% of admissions generated by feature films In 2015, feature films accounted for 99.0 % of the showings. They generated million admissions (-1.7 % from 2014) and 1,309.6 million in revenues, or 98.5 % of admissions and 98.4 % of total revenues. In 2015, the average revenue including taxes per admission to feature films was 6.48 ( 6.36 in 2014). Decrease in non-feature films Nationally, non-feature films (broadcasting of operas, concerts, sporting events, etc.) occupied a very marginal place in theaters: 0.1 % of showings, 0.4 % of admissions and 1.0 % of total revenues in After a 2014 which was particularly favorable to non-feature films, the genre suffered a 23.4 % decline in admissions in 2015, to total 0.8 million. The corresponding revenues amounted to 12.7 million (-22.8 %). In 2015, the average revenue including taxes per admission to non-feature films was ( in 2014). Among the retransmissions of concerts which enjoyed considerable success in 2015, it is worth mentioning the Patrick Bruel Symphony Concert at The Opera Garnier (over 43,000 admissions) and the Kendji Girac Concert at The Olympia (over 40,000 admissions). More than 2 million tickets for short films The programs comprised exclusively of short films accounted for 0.8 % of showings for a total of 2.26 million admissions (-3.2 % from 2014) and 9.0 million in revenues (respectively 1.1 % and 0.7 % of the total). The average revenue including taxes per admission to short film programs was 3.98 in 2015 ( 4.03 in 2014). 7.8 million showings were organized in theaters in 2015 (+2.6% compared to 2014) results

15 Movie attendance 1 average box office admissions receipts 2 revenue per showings (in millions) admission 2 (millions) ( millions) ( ) , , , , , , , , , , dev. 15/ % -0.1 % +1.7 % +2.6 % 1 Updated data for 2014; provisional data for Revenues inclusive of tax (incl. VAT). Base: all programs (feature films + short films + non-feature films). Source: CNC. Attendance for feature films in theaters1 admissions (in millions) box office receipts 2 ( millions) showings (millions) , , , , , , , , , , dev. 15/ % +0.2 % +1.9 % 1 Updated data for 2014; provisional data for Revenues inclusive of tax (incl. VAT). Base: feature films Source: CNC. Decline in attendance for French films After an exceptional 2014 for French films with 44.4 % of admissions, their market share decreased significantly in 2015 (-8.9 points) to 35.5 %. French films totaled 71.8 million admissions in 2015 (-21.4 % compared to 2014), which was below the ten-year average (77.9 million). Over the past ten years, the market share of French films was 39.5 %. A record level of attendance for American films American films achieved million admissions (+13.9 % from 2014). This result is well above the average observed over the last ten years (93.6 million) and represents the highest level since 1998 (108,0 million). The market share of American cinema increased by 7.1 points, to 52.0 % in This result is higher than the average over the past ten years (47.5 %). Seven American films recorded over 4 million admissions in results 2015

16 Increase in attendance for European films Admissions to non-french European films jumped 49.1 % in 2015 to 18.0 million. Their market share rose 3.0 points to 8.9 % in This rise should primarily be viewed in relation with that observed for British films. In 2015, 12.9 million admissions were achieved by British films (+93.2 % compared to 2014). Although 007 Spectre was behind more than a third of that score with 4.81 million admissions, two other British films also passed the one-million mark in 2015: Cinderella (1.67 million) and Kingsman: The Secret Service (1.67 million also) A total of 6 non-french European films recorded over 500,000 admissions in 2015 (as in 2014). Among these successes in 2015, besides the three British titles already mentioned, there was a German film Maya the Bee Movie and two other British films Jupiter Ascending and Pan. Admissions achieved by non-european and non-american films fell 26.5 % to 7.2 million in 2015, for a market share of 3.6 % (4.8 % in 2014). Nine non-european and non-american films accounted for more than 100,000 admissions in 2015 (12 in 2014) and none passed the 4-million mark (this was the case for a New Zealand title The Hobbit: the Battle of the Five Armies, in 2014). Admissions based on the country of origin of feature films 1 (in millions of euros) dev. 15/14 French films % 100 % French % majority French minority French % % American films % European films % German % British % Spanish % Italian % films of other % countries of origin total % 1 Updated data for 2014; provisional data for Base: feature films Source: CNC. results

17 Breakdown of admissions according to the country of origin of feature films1 (% of admissions) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 44,3 44,7 1 Updated data for 2014; provisional data for Base: feature films Source: CNC. 2,2 1,8 1,7 3,3 1,4 2,2 3,6 4,7 4,8 3,6 8,9 12,4 9,4 9,8 14,8 10,6 13,0 7,5 5,9 8,9 49,3 36,5 43,4 45,5 50,0 47,9 36,9 35,9 46,2 43,0 54,0 41,0 40,5 33,8 44,9 44,5 52,0 35, films of other countries of origin European films American films French films million in revenues for French films In 2015, French films achieved million in box office revenue (-21.8 % compared with 2014), American films million (+17.0 %), non-french European films million (+56.1 %) and films from other countries 46.9 million (-27.8 %). French films captured 33.7 % of revenues and 35.5 % of admissions for feature films in The market share for American films stood at 54.2 % of revenues and 52.0 % of admissions in The market share differential between revenues and admissions is explained by the existing difference between average revenue per admission for French films ( 6.14 in 2015) and for American films ( 6.75 in 2015). In effect, the majority of films shown in 3D, whose ticket price is generally higher, are American (26 of the 37 films released in 3D in 2015). Revenue based on films' country of origin ( millions) dev. 15/14 French films % American films % European films % other films % total 1, , , , , , , , , , % 1 Updated data for 2014; provisional data for Base: feature films Source: CNC. 16 results 2015

18 Breakdown of revenues by films' country of origin (%) 1 100% 1,9 1,6 1,5 3,1 1,2 1,9 3,5 4,7 5,0 3,6 8,8 12,1 9,2 90% 9,5 14,6 10,6 12,8 7,7 5,5 8,5 80% 70% 44,7 44,0 50,3 51,8 47,6 46,4 60% 50,2 44,6 55,6 54,2 50% 40% 30% 20% 44,6 45,3 36,1 35,7 39,8 34,0 39,0 31,9 43,1 33,7 10% 0% other films European films American films French films 1 Updated data for 2014; provisional data for Base: feature films Source: CNC. More than 7,000 films on screens The total selection of films on French screens was extensive with 7,377 films shown in 2015 compared to 7,045 in 2014 (+4.7 %). 654 feature films were projected first on French screens in 2015 (663 in 2014). They accounted for 90.0 % of all feature film admissions recorded during the year (91.6 % on average since 2006). This result is mainly due to The Bélier Family, released in December 2014, which achieved 5.35 million admissions in new released films projected in 3D In 2015, 37 new released films were entirely or partially released in 3D (versus 41 in 2014) The 3D screening of these new released films generated 21.6 million admissions and million in revenues in 2015, representing 33.5 % of total admissions and 40.6 % of total revenues respectively for the films concerned. In 2014, the new films released entirely or partially in 3D generated 21.7 million admissions and million in revenues, representing 41.2 % of total admissions and 48.6 % of the total corresponding revenues. results

19 Results of new films and re-runs1 (% of admissions to feature films) films released in the year films released the previous year other films total Updated data for 2014; provisional data for Base: feature films Source: CNC. Growth in the concentration of admissions After dropping in 2014, the concentration of admissions on a few films increased again in The share of the first 10, 20, 30, 50 and 100 films increased from the previous year. The 30 bestperforming films totaled 49.0 % of the annual admissions in 2015, 5.0 points more than in 2014 and the highest level observed over the decade. However, for French films, the concentration of admissions on the best-performing titles tended to decrease. The 10 most successful French films generated 39.6 % of the total admissions to French feature films in 2015, vs % in This decrease is the kickback from the presence of three French films in the top three of the 2014 rankings. Results of the most successful films1 (%feature films admissions) top 10 top 20 top 30 top 50 top Updated data for 2014; provisional data for Base: feature films Source: CNC. Ten French films with more than 4 million admissions 44 films broke through the one-million-ticket mark in 2015 vs. 57 in films generated more than two million admissions in 2015 (23 in 2014) and ten films attracted more than four million admissions (versus 4 in 2014). 14 French films generated more than one million admissions in 2015, 6 fewer than in Seven French films crossed the threshold of two million admissions (ten in 2014). Two French films achieved over four million admissions in 2015, against 3 in results 2015

20 At the same time, 26 American films recorded more than one million admissions in 2015 (32 in 2014), including 15 that crossed the threshold of two million admissions (12 in 2014). Seven American films achieved more than four million admissions in 2015, while none reached this threshold in In 2015, three non-french European films crossed the threshold of one million admissions, as in One film from other countries of origin also broke through the one-million mark in 2015 (two in 2014): namely, the Australian film Mad Max: Fury Road (2.36 million admissions). Feature films reaching an admission threshold1 more than 4 million more than 2 million more than 1 million more than 500,000 more than 100,000 all films French films American films Updated data for 2014; provisional data for Base: feature films Source: CNC. A French film ranking thrid in 2015 In 2015, the top spot at the box office was occupied by Star Wars: Episode 7, the Force Awakens. The seventh installment of the Star Wars saga totaled 7.32 million admissions at the end of The animated film Minions took second place in 2015 with 6.65 million admissions. A French comedy released in 2014, The Bélier Family, took third place with 5.35 million admissions in results

21 In 2015, the three most successful films accounted for million admissions, or 9.6 % of the annual total for feature films. In 2014, the three films with the most admissions accounted for 11.1 % of the annual admissions for feature films. Among the 44 films that generated more than one million admissions in 2015, 21 of them were shown partially or entirely in 3D. Feature films that generated more than one million admissions in 2015 rank title country origin 1 of release date admissions (in millions) 1 Star Wars: Episode 7, the Force Awakens US 12/16/ Minions US 7/8/ la Famille Bélier (The Bélier Family) FR 12/17/ Jurassic World US 6/10/ Spectre GB 11/11/ Fast & Furious 7 US 4/1/ The New Adventures of Aladdin FR 10/14/ Inside out US 6/17/ Avengers: Age of Ultron US 4/22/ Fifty Shades of Grey US 2/11/ Serial Teachers 2 FR 7/1/ American Sniper US 2/18/ Maze Runner: the Scorch Trials US 10/7/ Daddy or Mommy FR 2/4/ Mission Impossible: Rogue Nation US 8/12/ The Hunger Games: Mockingjay - Part 2 US 11/18/ Taken 3 FR 1/21/ Babysitting 2 FR 12/2/ The Martian US 10/21/ The Divergent Series: Insurgent US 3/18/ Pourquoi j'ai (pas) mangé mon père FR 4/8/ Mad Max: Fury Road AU 5/14/ Arlo's Journey US 11/25/ Hotel Transylvania 2 US 10/7/ The Little Prince FR 7/29/ Ant-Man US 7/14/ Cinderella GB 3/25/ Kingsman: The Secret Service GB 2/18/ Big Hero US 2/11/ Night at the Museum: Secret of the Tomb US 2/4/ Bis FR 2/18/ Terminator: Genisys US 7/1/ Belle & Sebastian: The Adventure Continues FR 12/9/ Wolf Totem FR 2/25/ The SpongeBob Movie: Sponge Out of Water US 2/18/ Home US 4/15/ Fantastic Four US 8/5/ The Parisian Bitch FR 4/29/ San Andreas US 5/27/ Ted 2 US 8/5/ Imitation Game GB 1/28/ Shaun the Sheep GB 4/1/ Memories FR 1/14/ Marguerite FR 9/16/ AU: Australia / BE: Belgium / FR: France / GB: United Kingdom / US: United States. Source: CNC. 20 results 2015

22 Seven films with more than five million admissions since January 2014, including four French films Since January 2014, seven films have generated more than five million admissions: Serial (Bad) Weddings, The Bélier Family, Star Wars: Episode 7, the Force Awakens, Minions, Supercondriaque, Jurassic World and Lucy In all, during the past two years, 25 films have generated more than three million admissions, including eight French films (19 films including 5 French films between January 2013 and December 2014). Films that generated more than three million admissions between January 2014 and December 2015 title country of origin 1 release date admissio ns (millions) 1 Serial (Bad) Weddings FR 4/16/ The Bélier Family FR 12/17/ Star Wars: Episode 7, the Force Awakens US 12/16/ Minions US 7/8/ Supercondriaque FR 2/26/ Jurassic World US 6/10/ Lucy FR 8/6/ The Hobbit: the Battle of the Five Armies NZ 12/10/ Spectre GB 11/11/ Fast & Furious 7 US 4/1/ The New Adventures of Aladdin FR 10/14/ Inside out US 6/17/ Avengers: Age of Ultron US 4/22/ Fifty Shades of Grey US 2/11/ Dawn of the Planet of the Apes US 7/30/ Serial Teachers 2 FR 7/1/ How to Train Your Dragon 2 US 7/2/ X-Men: Day of future past US 5/21/ RIO 2 US 4/9/ Hunger Games: Mockingjay Part 1 US 11/19/ Samba FR 10/15/ The Maze Runner US 10/15/ American Sniper US 2/18/ Maze Runner: the Scorch Trials US 10/7/ Asterix: The Land of the Gods FR 11/26/ FR: France / GB: UK / NZ: New Zealand / US: United States. Source: CNC. results

23 Methodology For the ninth consecutive year this assessment includes the results of films based on their genre. These data only refer to first-run releases of films. Consequently, their contribution should be compared to the market share of new released films. Decline in the market share of comedy films Comedy films traditionally generate the largest share of admissions in France. In 2015, 72 first run releases of comedies were offered on French screens, or 11.0 % of all new released films (98 films and 14.8 % in 2014). Due to there being fewer films, the genre accounted for a smaller market share in 2015 (18.5 % of admissions) than in 2014 (29.5 %). In 2015, nine comedies achieved over one million admissions (versus 14 in 2014) and five broke through the two-million mark (eight in 2014). French comedies, however, continued to generate a significant proportion of admissions for the genre, at 79.7 % in 2015 (90.2 % in 2014). Of the five comedies generating more than two million admissions in 2015, all were French. Nearly 30 million admissions for animated films In 2015, the selection of animated films rose with 34 new released films (29 in 2014). Animated films generated on average more admissions per film than the other genres. They represented 5.2 % of new released films in 2015 and generated 16.4 % of admissions (29.8 million admissions in 2015 vs million in 2014). Two American animated films were among the ten films with the most admissions in 2015: Minions and Inside out. In 2015, French animated films generated 18.8 % of admissions (5.6 million) for all first run releases of feature animated films (21.6 % and 5.0 million in 2014). Two French animated films were especially successful in 2015: Pourquoi j'ai (pas) mangé mon père (2.41 million admissions) and The Little Prince (1.93 million admissions). More than 2 million admissions for documentaries The selection of first run releases of documentary films increased in 2015, reaching 104 films distributed vs. 100 films in They accounted for 15.9 % of the first-run releases (15.1 % in 2014) and generated 1.2 % of the admissions in 2015, or 2.2 million admissions (2.0 million in 2014). 22 results 2015

24 Breakdown of admissions according to film genre1 (first run releases of feature films) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 48,6 54,6 52,8 56,4 59,6 55,5 66,7 61,8 57,0 63,9 34,9 30,2 24,5 34,6 23,6 28,9 16,1 21,7 29,5 18,5 1,0 1,9 1,6 2,6 0,7 1,0 1,8 1,2 1,1 1,0 15,5 15,3 15,4 16,4 16,2 9,9 14,6 14,6 12,4 16, other films comedies documentary films animated films 1 Calculated only on the basis of films released for the first time during the year (new released films), i.e. on 90 % to 94 % of attendance depending on the year. Updated data for 2014; provisional data for Base: feature films Source: CNC. Drop in admissions to Art House films In 2015, the downward trend in feature film admissions (-1.7 %) was sharper for recommended Art House films. Indeed, their admissions decreased 6.8 % to 41.0 million admissions in Their share of total admissions amounted to 20.3 % in 2015 vs % in This drop was partially due to a slight decrease in the number of recommended films: 4,175 Art House films were screened in French theaters in 2015 (versus 4,205 in 2014), of which 406 new released films (382 in 2014). Four Art House films achieved over one million admissions in 2015 (seven in 2014), two British films, an American film and a French film. American Sniper by Clint Eastwood, was the recommended film that totaled the most admissions in 2015 (3.13 million). In 2014, the recommended film totaling the most admissions was The Wolf of Wall Street with 2.00 million admissions. In 2015, 52.3 % of the admissions recorded by recommended films concerned French films (50.8 % in 2014). 1,952 French Art House films were projected on French screens in 2015 vs. 1,923 in 2014 (-1.5 %). They accounted for 21.4 million admissions in 2015, vs million in 2014, a drop of 4.1 %. Marguerite was the French Art House film that generated the most admissions in 2015 (1.01 million). In 2014, Minuscule - Valley of the Lost Ants was the recommended French film that had the most admissions (1.50 million). 918 recommended American films were shown in 2015 vs. 966 in 2014 (-5.0 %). They accounted for 10.8 million admissions (11.9 million in 2014, or -8.8 %). American films accounted for 26.5 % of admissions of recommended films (27.1 % in 2014). results

25 Admissions based on the recommendation of feature films1 Art House films nonrecommended films total dev. 15/ % -0.3 % -1.7 % 1 Updated data for 2014; provisional data for Base: feature films Source: CNC. Breakdown of admissions depending on recommendation of films1 100,0 90,0 80,0 70,0 60,0 74,4 80,8 78,6 72,1 73,5 75,4 77,2 73,6 78,6 79,7 50,0 40,0 30,0 20,0 10,0 25,6 19,2 21,4 27,9 26,5 24,6 22,8 26,4 21,4 20,3 0, nonrecommended films Art House films 1 Updated data for 2014; provisional data for Base: feature films Source: CNC. The share of original versions remains stable In 2015, 16.3 % of admissions were generated by films shown in their original foreign language version (as in 2014). Admissions for films in their original foreign version decreased 1.6 % to 33.5 million admissions in Over the past 10 years, this share varied from 16.3 % (in 2014 and 2015) to 20.2 % (in 2009). 24 results 2015

26 A particularly strong first quarter 2015 experienced a particularly strong first quarter, with 56.9 million admissions (+0.8 % compared to first quarter results 2014, which were already particularly high). The start of the year was marked by the excellent performance of Fifty Shades of Grey (released on February million admissions) and American Sniper (released on February million) and the continued success of The Bélier Family, released in December 2014 (5.35 million admissions in 2015). Monthly admissions1 (millions) dev. 15/14 January % February % March % April % May % June % July % August % September % October % November % December % total % 1 Updated data for 2014; provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC. Seasonality of attendance1 (millions of admissions) January February March April May June July August September October November December 2015 ave Updated data for 2014; provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC. More than half of admissions on the weekend Although movie-goers continued to prefer going to the theater at the weekend, the share of weekend admissions remained stable in In fact, 53.3 % of admissions occurred between Friday and Sunday, vs % in The contribution of Wednesdays increased in 2015 to 13.2 % of admissions, versus 12.7 % in Conversely, the share of admissions recorded on Tuesdays, which had increased in recent years, fell by 0.5 points in 2015 to 12.7 %. results

27 The concentration of revenues remained high. In 2015, 55.1 % of revenues were generated between Friday and Sunday (55.0 % in 2014). Wednesdays represented 12.8 % of revenues in 2015, versus 12.4 % in Tuesdays accounted for 12.0 % of revenues in 2015 (12.4 % in 2014), a lower share than that of admissions. This is explained by the promotions cinema operators offer at the beginning of the week. Breakdown of admissions by day1 (%) Monday Tuesday Wednesday Thursday Friday Saturday Sunday total Updated data for 2014; provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC. Breakdown of revenues by day1 (%) Monday Tuesday Wednesday Thursday Friday Saturday Sunday total Updated data for 2014; provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC. Increase in attendance in smaller towns and conurbations. In 2015, the decline in attendance did not concern the entire French territory. In fact, admissions in Ile-de-France theaters fell by 6.0 % to 53.9 million, while they were virtually unchanged in other regions (-0.2 % to million). The drop in attendance was particularly significant within the Paris city limits (-8.7 %). This decrease is partly attributable to closures of three theaters in 2014 which were extended into 2015: closure for building work of the Gaumont Convention (15th arrondissement, 6 screens) and the Gaumont Alésia (14th arrondissement, 7 screens); permanent closure of the Forum Orient Express (1st arrondissement, 7 screens). In 2015, an increase in attendance was even observed in smaller towns and conurbations. In fact, admissions increased 3.4 % in the urban areas of 20,000 to 100,000 inhabitants and 2.1 % in the urban areas and conurbations of fewer than 20,000 inhabitants and rural zones. 26 results 2015

28 Admissions by location1 (million) Ile-de- France Paris inner suburbs (92, 93, 94) outer suburbs (77, 78, 91, 95) other regions urban units> 100,000 inhabitants. urban units 20, ,000 inhabitants. other towns and urban areas total for France dev. 15/ % -8.7 % -1.9 % -5.6 % -0.2 % -2.4 % +3.4 % +2.1 % -1.8 % 1 Updated data for 2014; provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC/INSEE census. Breakdown of admissions by location1 (%) 100,0 90,0 80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 10,8 10,9 10,5 9,9 9,7 10,2 9,8 9,7 10,5 10,9 16,1 16,3 16,8 16,7 16,9 17,6 17,6 17,7 18,7 19,7 43,5 43,6 43,9 44,4 45,2 44,4 44,2 44,0 43,4 43,2 7,2 7,2 7,1 7,3 7,3 7,3 7,3 7,3 7,2 6,9 7,5 7,7 7,6 7,6 7,5 7,4 7,6 7,7 7,7 7,7 14,9 14,3 14,1 14,0 13,4 13,0 13,4 13,7 12,6 11, other towns and urban units urban units 20, ,000 inhab. urban units >100,000 inhab. outer suburbs (77, 78, 91, 95) inner suburbs (92, 93, 94) Paris 1 Updated data for 2013; provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC/INSEE census admissions per inhabitant in 2015 In 2015, average cinema admissions amounted to 3.28 admissions per inhabitant in France, vs in This index remained stronger in the capital (10.73), which draws in many moviegoers from the outer suburbs. In 2015, the attendance index fell in Paris and in conurbations with over 100,000 inhabitants, while it increased in smaller urban units. results

29 Attendance index by location1 Ile-de- France Paris inner suburbs (92, 93, 94) outer suburbs (77, 78, 91, 95) other regions urban units> 100,000 inhabitants. urban units 20, ,000 inhabitants. other towns and urban areas total for France Attendance index = admissions / total population. Updated data for 2013; provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC/INSEE census. Rise in admissions between 4 and 4.50 Cinema operators practice a large range of prices. A large proportion of tickets were sold between 5 and 7. In 2015, 42.3 % of the paid admissions were sold (or valued) between 5 and 7, vs % in In 2015, 23.5 % of the tickets sold were priced less than 5 (23.3 % in 2014). Since 2014, the consolidation of the cheapest admissions has mainly been linked to the increase in the number of tickets sold at 4 corresponding to the price set by theaters in favor of movie-goers aged under 14. Since 2015, some theaters have offered a price of 4.50 to those under 14. In 2015, admissions between 4 and 4.99 were up 8.4 % to 35.3 million or 17.5 % of attendance, versus 15.8 % in In 2015, 18.7 million admissions were made at 4 (20.7 million in 2014) and 9.3 million at 4.50 (3.5 million in 2014). 10% of admissions at over 10 Tickets sold at 10 or more represented 21.2 million admissions in 2015 (19.9 million in 2014, i.e %). They accounted for 10.3 % of total admissions in 2015 (9.5 % in 2014). The number of tickets sold between 20 and 30 decreased 27.9 % compared to These higher prices represented slightly more than 180,000 admissions in This increase should be viewed in relation to the increase in admissions to "non-feature film" programs, where the prices are usually higher. Free admissions are stable It should be noted that the annual movie attendance is increased by a certain number of free admissions. In 2015, 4.7 million free admissions were recorded, which brings the total movie attendance to million. Consequently, free admissions represented 2.3 % of all admissions in In 2014, 4.7 million free admissions were counted (2.2 % of all admissions), which brought the total admissions to million. By including the free admissions, the ARA stood at 6.34 in 2015 ( 6.24 in 2014). 28 results 2015

30 Admissions by the ticket sales price1 (million) dev. 15/14 less than % 3.00 to % 4.00 to % 5.00 to % 6.00 to % 7.00 to % 8.00 to % 9.00 to % and more % total % 1 Excluding free admissions. Updated data for 2013; provisional data for Base: all programs (feature films + short films + non-feature films). Revenue distribution Theaters' box office receipts are subject to two taxes: the VAT at a reduced rate (5.5 % until the end of 2011, 7.0 % in 2012 and 2013, and 5.5 % in 2015) and the tax on cinema tickets (TSA), which contributes funds to the CNC's support fund (10.72 %). Net of these taxes, the revenue (called the film base) is shared between the operator and the distributor, based on a rental rate negotiated by mutual agreement for each film and each establishment. The distributor's remuneration is calculated by multiplying the rental rate by the "film base." In 2015, the average rental rate was 47.0 %. SACEM collects at the same time remuneration for the public performance of the film's music. Pursuant to an agreement between the Fédération Nationale des Cinémas Français (FNCF) and SACEM, the operator remunerates SACEM based on the following percentages: % of the "film base" when the operator is a member of the FNCF and 2.02 % of the "film base" when the operator is not a member. For the distribution of the box office receipts as it is calculated in this document, a single percentage is applied (1.515 %). In 2015, 42.1 % of the revenue paid by each movie-goer went to the film's distributor, 40.6 % being retained by the operator. results

31 Distribution of box office receipts 1 ( millions) box office receipts 1, , , , , Tax on cinema tickets VAT sacem earnings (before tax) 1, , , , , distributors' remuneration operators' remuneration (%) box office receipts Tax on cinema tickets VAT sacem distributors' remuneration operators' remuneration Rental rates data updated since 2004; provisional 2013 data % of the box office receipts excluding VAT and excluding tax on cinema tickets. 3 all taxes included 5.5 % VAT in 2011, 7.0 % VAT in , 10.0 % VAT in = operators' remuneration = box office receipts - Tax on cinema tickets-vat-sacem-distributors' remuneration 5 rental rate = (distributor's total receipts excl. taxes + distributor sacem share)/film base Base: all programs (feature films + short films + non-feature films). Source: CNC. The 200 largest cinema successes since 1945 rank title film director year of release country of origin 1 admissions (millions) 2 1 Titanic J. Cameron 1998 US Welcome to the Sticks D. Boon 2008 FR The Intouchables E. Tolédano, O. Nakache 2011 FR La Grande Vadrouille G. Oury 1966 FR/GB Gone with the Wind V. Fleming 1950 US Once Upon a Time in the West S. Leone 1969 IT The Jungle Book W. Reitherman 1968 US Avatar J. Cameron 2009 US One Hundred and One Dalmatians W. Disney 1961 US Asterix & Obelix: Mission Cleopatra A. Chabat 2002 FR The Ten Commandments C.B. DeMille 1958 US Ben Hur W. Wyler 1960 US Les Visiteurs (The Visitors) J.M. Poiré 1993 FR The Bridge on the River Kwai D. Lean 1957 GB Cinderella W. Disney 1950 US Le Petit Monde de Don Camillo J. Duvivier 1952 IT/FR The Aristocats W. Reitherman 1971 US Serial (Bad) Weddings? P. De Chauveron 2014 FR The Longest Day Collective 1962 US Le Corniaud G. Oury 1965 FR/IT Lady and the Tramp W. Disney 1955 US results 2015

32 rank title film director year of release country of origin 1 admissions (millions) 2 22 The Lion King R. Aller, R. Minkoff 1994 US Bambi W. Disney 1948 US Taxi 2 G. Krawczyk 2000 FR Trois hommes et un couffin C. Serreau 1985 FR Les Bronzés 3 - amis pour la vie P. Leconte 2006 FR The Guns of Navarone J. Lee Thompson 1961 US War of the Buttons Y. Robert 1962 FR Les Misérables J.P. Le Chanois, J.P. Dreyfus 1958 FR/IT Doctor Zhivago D. Lean 1966 US ,000 Leagues Under the Sea R. Fleischer 1955 US The Greatest Show on Earth C.B. DeMille 1953 US E.T. the Extra-Terrestrial S. Spielberg 1982 US Finding Nemo A. Stanton, L. Unkrich 2003 US Harry Potter and the Philosopher's Stone C. Colombus 2001 US Le Dîner de cons F. Veber 1998 FR Le Grand Bleu L. Besson 1988 FR L'Ours J.J. Annaud 1988 FR Emmanuelle J. Jaeckin 1974 FR La Vache et le prisonnier H. Verneuil 1959 FR/IT Harry Potter and the Chamber of Secrets C. Colombus 2002 US Asterix & Obelix Take On Caesar C. Zidi 1999 FR/DE/IT West Side Story R. Wise, J. Robbins 1962 US High Sierra R. Walsh 1963 US Le Bataillon du ciel A. Esway 1947 FR Le Fabuleux Destin d'amélie Poulain J.P. Jeunet 2001 FR/DE Les Choristes C. Barratier 2004 FR/CH The Dictator C. Chaplin 1945 US For Whom the Bell Tolls S. Wood 1947 US Rien à déclarer D. Boon 2011 FR/BE Violettes impériales R. Pottier 1952 FR/ES Les Couloirs du temps - les visiteurs 2 J.M. Poiré 1998 FR Un Indien dans la ville H. Palud 1994 FR Pinocchio W. Disney 1946 US Star Wars Episode I: The Phantom Menace G. Lucas 1999 US Tarzan C. Buck, K. Lima 1999 US Ice Age: Dawn of the Dinosaurs C. Saldanha 2009 US Le Gendarme de Saint-Tropez J. Girault 1964 FR/IT The Count of Monte Cristo R. Vernay 1955 FR/IT The Sixth Sense M. Night Shyamalan 2000 US Ratatouille B. Bird, J. Pinkava 2007 US The Fifth Element L. Besson 1997 FR la Famille Bélier (The Bélier Family) É. Lartigau 2014 FR Harry Potter and the Goblet of Fire M. Newell 2005 GB A Clockwork Orange S. Kubrick 1972 GB The Five Crazy Boys C. Zidi 1971 FR Le Retour de Don Camillo J. Duvivier 1953 IT/FR La Vérité si je mens 2 T. Gilou 2001 FR The Lord of the Rings: The Return of the King P. Jackson 2003 NZ 7.38 results

33 rank title film director year of release country of origin 1 admissions (millions) 2 70 Aladdin J. Musker 1993 US Peter Pan W. Disney 1953 US Star Wars: Episode 7, the Force Awakens J. J. Abrams 2015 US The Mad Adventures of Rabbi Jacob G. Oury 1973 FR/IT Dances with Wolves K. Costner 1991 US Jour de fête J. Tati 1949 FR The Rescuers Collective 1977 US Jean de Florette C. Berri 1986 FR Star Wars: Episode 3 - Revenge of the Sith G. Lucas 2005 US Shrek 2 A. Adamson, V. Jenson 2004 US Samson and Delilah C.B. DeMille 1951 US Joan of Arc V. Fleming 1949 US Harry Potter and the Prisoner of Azkaban A. Cuaron 2004 GB The Lord of the Rings: The Two Towers P. Jackson 2002 NZ La Chèvre F. Veber 1981 FR/MX Monsieur Vincent M. Cloche 1947 FR The Magnificent Seven J. Sturges 1961 US Skyfall S. Mendes 2012 GB Si Versailles m'était conté S. Guitry 1954 FR Les Grandes Vacances J. Girault 1967 FR/IT The Lord of the Rings The Fellowship of the Ring P. Jackson 2001 NZ Le Salaire de la peur (The Wages of Fear) H.G. Clouzot 1953 FR/IT Michel Strogoff C. Gallone 1956 FR/IT Le Gendarme se marie J. Girault 1968 FR/IT The Hunchback of Notre Dame K. Wise, G. Trousdale 1996 US Astérix aux Jeux Olympiques F. Forestier, T. Langmann 2008 FR/DE/SP/IT Mission spéciale M. de Canonge 1946 FR Jurassic Park S. Spielberg 1993 US Fanfan la Tulipe Christian-Jaque 1952 FR/IT The Fox and the Hound A. Stevens 1981 US The Exorcist W. Friedkin 1974 US Goldfinger G. Hamilton 1965 GB Les Trois Frères D. Bourdon, B. Campan 1995 FR Nous irons à Paris J. Boyer 1950 FR Minions P. Coffin, K. Balda 2015 US Manon des sources C. Berri 1986 FR Ice Age: Continental Drift M.Thurmeier, S. Martino 2012 US Sissi E. Marischka 1956 AT Ice Age: The Meltdown C. Saldanha 2006 US Dead Poets Society P. Weir 1989 US Sleeping Beauty W. Disney 1959 US Pirates of the Caribbean: Dead Man's Chest G. Verbinski 2006 US Harry Potter and the Deathly Hallows - Part 2 D. Yates 2011 GB Taxi G. Pires 1998 FR Rain Man B. Levinson 1989 US Robin Hood W. Reitherman 1974 US Star Wars G. Lucas 1977 US Sissi impératrice E. Marischka 1957 AT From Here to Eternity F. Zinnemann 1954 US results 2015

34 rank title film director year of release country of origin 1 admissions (millions) Arthur et les Minimoys (Arthur and the Invisibles) L. Besson 2006 FR Raiders of the Lost Ark S. Spielberg 1981 US La Cuisine au beurre G. Grangier 1963 FR/IT Spider-Man S. Raimi 2002 US La Symphonie pastorale J. Delannoy 1946 FR Ivanhoe R. Thorpe 1952 US The Good, the Bad and the Ugly S. Leone 1968 IT Spider-Man 3 S. Raimi 2007 US Quo Vadis M. Le Roy 1953 US La Gloire de mon père (My Father's Glory) Y. Robert 1990 FR Le Gendarme et les extra-terrestres J. Girault 1979 FR Jaws S. Spielberg 1976 US Indiana Jones and the Last Crusade S. Spielberg 1989 US Harry Potter and the Order of the Phoenix D. Yates 2007 GB Marche à l'ombre M. Blanc 1984 FR Pas si bête A. Berthomieu 1946 FR La Chartreuse de Parme Christian-Jaque 1948 FR Germinal C. Berri 1993 FR/BE The Sword in the Stone W. Reitherman 1964 US Le Père tranquille R. Clément 1946 FR Limelight C. Chaplin 1952 US Oscar E. Molinaro 1967 FR Taxi 3 G. Krawczyk 2003 FR Harry Potter and the Half-Blood Prince D. Yates 2009 GB Harry Potter and the Deathly Hallows - Part 1 D. Yates 2010 GB Terminator 2: Judgment Day J. Cameron 1991 US Midnight Express A. Parker 1978 GB The Gods Must Be Crazy J. Uys 1983 ZA Mourir d'aimer A. Cayatte 1971 FR/IT Who Framed Roger Rabbit R. Zemeckis 1988 US Crocodile Dundee P. Faiman 1987 AU War and Peace K. Vidor 1956 US Les Ripoux C. Zidi 1984 FR The Story of Dr. Wassell C.B. DeMille 1946 US Rambo: First Blood Part II G.P. Cosmatos 1985 US Le Bossu A. Hunebelle 1959 FR/IT L'Aile ou la Cuisse C. Zidi 1976 FR Sissi face à son destin E. Marischka 1958 AT Four Weddings and a Funeral M. Newell 1994 GB Mulan T. Bancroft, B. Cook 1998 US Men in Black B. Sonnenfeld 1997 US High Noon F. Zinnemann 1952 US Stadium Nuts C. Zidi 1972 FR The Third Man C. Reed 1949 GB Andalousie R. Vernay 1951 FR/ES Thunderball T. Young 1965 GB Les Anges gardiens J.M. Poiré 1995 FR Grease R. Kleiser 1978 US Les Valseuses B. Blier 1974 FR La Bataille du rail R. Clément 1946 FR 5.73 results

35 rank title film director year of release country of origin 1 admissions (millions) Lawrence of Arabia D. Lean 1963 GB A nous les petites Anglaises M. Lang 1976 FR Notre-Dame de Paris J. Delannoy 1956 FR/IT La Vérité H.G. Clouzot 1960 FR/IT Indiana Jones and the Temple of Doom S. Spielberg 1984 US Matrix Reloaded L. Wachowski, L. Wachowski 2003 US Pirates of the Caribbean: At World's End G. Verbinski 2007 US Pocahontas M. Gabriel, E. Goldberg 1995 US From Russia with Love T. Young 1964 GB Star Wars: Episode 2 - Attack of the Clones G. Lucas 2002 US Les Vacances de Monsieur Hulot J. Tati 1953 FR Le Petit Nicolas L. Tirard 2009 FR/BE Independence Day R. Emmerich 1996 US La Folie des grandeurs G. Oury 1971 FR/DE/ES Quai des Orfèvres H.G. Clouzot 1947 FR Le Cerveau G. Oury 1969 FR/IT Le Petit Baigneur R. Dhéry 1968 FR/IT Shrek the Third C. Miller 2007 US Love Story A. Hiller 1971 US The Incredibles B. Bird 2004 US Le Gendarme à New-York J. Girault 1965 FR/IT Camping F. Onteniente 2006 FR Les Petits Mouchoirs G. Canet 2010 FR L'As des as G. Oury 1982 FR/DE Bathing Beauty G. Sidney 1946 US Quand passent les cigognes M. Kalatosov 1958 RU La Cage aux folles E. Molinaro 1978 IT/FR Napoléon S. Guitry 1955 FR The Adventures of Tintin: The Secret of the Unicorn S. Spielberg 2011 US Papa, maman, la bonne et moi J.P. Le Chanois, J.P. Dreyfus 1954 FR La Bataille de l'eau lourde J. Dreville 1948 FR Les Trois Mousquetaires A. Hunebelle 1953 FR/IT 5.36 The films that entered the ranking for the first time in 2015 are shown in bold 1 AT: Austria / AU: Australia / BE: Belgium / CH: Switzerland / CZ: Czech Republic / DE: Germany / ES: Spain / FR: France / GB: Great Britain / IT: Italy / MX: Mexico / NZ: New Zealand / RU: Russia / US: United States / ZA: South Africa. 2 Accumulated admissions for films released up to December 31, Source: 34 results 2015

36 2.2. Distribution Methodology First-run feature films in theaters are considered to be new releases in France. Thus, all of the new films include the works that were the object of a national commercial release. The genres appearing in this chapter were collected from the press and on the Internet. Type of new released films 654 new released films including 322 French films and 141 American films. 654 first-run releases In 2015, 654 films were released for the first time in commercial theaters in France; nine fewer films than in French films The number of French films was down 21 titles to 322 films. French majority co-productions dropped by seven titles (55 films in 2015 compared to 62 in 2014), and foreign majority coproductions numbered two fewer films between 2014 and 2015, at 60 titles on first-run release. The 100% French offer accounted for 207 films; 12 fewer titles than in % of first-run releases were French in On average, 47.3% of films released for the first time on screens between 2006 and 2015 were national films. Over the last 40 years, French films have accounted for a 39.4% share of the offering of first-run release films. 141 American films In 2015, American films represented 21.6% of all first-run release films (22.6% in 2014); i.e. the lowest level since 1983 (20.4%). The number of American films released for the first time on screens dropped in 2015 to 141 films (-8 titles compared to 2014). In the last 10 years, the offer of American films on first-run release has reached on average of 154 titles each year (25.4% of the total available), 146 titles a year for the last 40 years (27.0%). results

37 125 non-french European films The offer of first released non-french European films increased considerably between 2014 and 2015 (+20 titles to 125 films). 38 British films were released for the first time on screens in 2015, 10 more titles than in The offer of Italian (+5 titles), German (+3 titles) and Spanish (+3 titles) films also increased. At 66 titles, the number of films from other countries was stable. Although the offer of Chinese films was the same in 2015 and 2014, Canadian films (+2 titles) and Japanese films (+3 titles) rose in number. Number of first-run releases structure trend 15/ 14 French films % -6.1% 100% French % -5.5% French majority % -11.3% French minority % -3.2% American films % -5.4% European films % +20.2% German % +23.1% British % +35.7% Spanish % +60.0% Italian % +55.6% films from other countries % - Canadian % +40.0% Chinese % - Japanese % +42.9% total % -1.4% 1 Films fully-, majority- or minority-financed by France 2 Continental Europe, excluding France. Source: CNC. 104 first-run release documentaries In 2015, 104 titles of first-run release documentaries were offered, compared to 100 in 2014 (+4 titles). This is the highest number since 1996 (first year of the statistical series on genres of distributed films). 70 documentaries were French, 22 were non-french European, five were American, two were Canadian, two were Israeli, one was Chilean (Beyond my grandfather Allende ), one was Chinese ('Til Madness Do Us Part) and one was Iranian (Taxi Tehran). 11 French animated films 34 animated films were shown for the first time on French screens in 2015, i.e. five more films than in French animation was much more dynamic in 2015 with 11 films distributed (six in 2014) including The Little Prince and Pourquoi j ai (pas) mangé mon père. 11 American animated films were released in 2015 including Minions and Inside Out. Five animated films were Japanese, three were German, one was Brazilian (Worms), one was British (Shaun the Sheep), one was Swedish (That boy Emil) and the last was Uruguayan (Anina). Walt Disney was the top distributor of new released animated films in 2015, with five films. Eurozoom released four new animated films and Paramount Pictures and Gebeka Films released three each. 36 results 2015

38 35.0% of first-run releases were dramas 229 dramas (of which 117 French and 23 American) were distributed for the first time on screens (+17 titles compared to 2014). Comedies accounted for 11.0% of new releases in cinemas (14.8% in 2014), i.e. 72 films (of which 43 French and 19 American). These two genres alone made up 46.0% of first-run releases in 2015 (46.8% in 2014). 72 comedy films and 56 crime films drama is the first genre with 229 new released films Genres of first-run release films animation adventure comedy comedy-drama documentary drama fantasy musical crime other genres total Source: CNC. 406 recommended Art House films in 2015 including 221 French films and 37 American. More than 60% of new releases were recommended Art House films 62.1% of first-run releases were recommended Art House films in This is the second highest level since 1992 (first year of the statistical series on the recommendation of new released films) after 2012 (62.9%). Recommended films amounted to 406 titles, i.e. 24 more films than in On average, 357 Art House films were released for the first time on screens each year between 2006 and They accounted for 58.8% of the total offering of films. In 2015, 68.6% of new French films were recommended Art House (+4.5 points compared to 2014), versus 26.2% of new American films (-3.3 points), 75.2% of new non-french European films (+4.7 points) and 81.8% of new films from other countries (+15.2 points). results

39 First-run release Art House films trend 15/14 French films % American films % European films % other films % total % % of total French films pts American films pts European films pts other films pts total pts 1 Continental Europe, excluding France. Source: CNC. 597 films were classified as suitable for all audiences in 2015 Every year since 2006, more than 87% of first-run releases had an exhibition license for all audiences. In 2015, this concerned 597 films (91.4%) including 309 French films (96.0% of the offer of French films) and 119 American films (84.4% of the offer of American films). 49 films were subject to a ban on children aged under 12 (including 22 American films and seven French films) and seven films were prohibited for under 16s (five French films, a British film and a Belgian film). One 100% French film was banned for under 18s in 2015, Little Gay Boy by Antony Hickling (a French minority film in 2014). An average of 13 new films were released each week On average, 54 films were released in theaters each month in 2015 (13 films a week). Four months witnessed an increase in activity: April and September (10.3% of total releases for the year each, 17 films per week) and March and December (9.5% of annual releases each, 16 films per week). August and May were the months with the lowest number of releases (8 and 10 films a week, respectively). The busiest week in terms of releases in 2015 was that of October 7 (20 films) and the quietest weeks those of May 27 and August 5 (six films each). On average, 27 French films were released each month in 2015 (six films per week), versus 12 American films (three films per week). French films accounted for 37.5% (August) and 56.5% (December) of monthly releases, versus between 13.5% (June) and 31.5% (July) for American films. 38 results 2015

40 Number of films released per month in Continental Europe, excluding France. Source: CNC. French films American films European films1 other films total Showing of new released films 32.3% of films were distributed in fewer than 20 opening-week theaters In 2015, 41 films were distributed in 500 opening-week theaters or more (42 films in 2014) including 26 American films, 10 French films, four British films and an Australian film (Mad Max: Fury Road). Of these titles, six were distributed in 800 opening-week theaters or more (as in 2014): Minions (American animated film) Serial Teachers 2 (French comedy) Star Wars: episode 7, the Force Awakens (American science fiction film) Belle & Sebastian: the adventure continues (French adventure film) The Little Prince (French animated film) and Mission: Impossible Rogue Nation (American adventure film). In 2015, 211 films had a limited release (fewer than 20 theaters), compared to 239 in French films (139 in 2014) and 19 American films (17 in 2014) were shown in fewer than 20 opening-week theaters. More than half of the documentaries were distributed in fewer than 10 opening-week theaters in 2015 (56 titles). They represented 39.4% of films shown in fewer than 10 theaters. Conversely, 52.9% of animated films screened for the first time in 2015 were shown in 200 or more theaters (18 titles). They accounted for 11.8% of the films shown in 200 or more theaters in the first week. 98 recommended Art House films were distributed in fewer than 10 theaters in 2015 (24.1% of the recommended films). These 98 films represented 69.0% of the films present in fewer than 10 opening-week theaters. Three Art House films were programmed in 400 opening-week theaters or more (as in 2014): Shaun the Sheep (British animated film) American Sniper (American Biography) and My King (French drama). results

41 First-run releases according to number of theaters in the first week structure trend 15/14 fewer than % -21.6% 5 to % +15.8% 10 to % -18.8% 20 to % +18.5% 50 to % +12.0% 100 to % +18.3% 200 to % -15.8% 500 to % -2.8% 800 and more % - total % -1.4% 1 Theaters showing new released films during the first week of screening Source: CNC. In 2015, a film was released, on average, in 136 opening-week theaters. A French film was released in 116 opening-week theaters on average, versus 265 theaters for an American film. On average, 136 theaters per film in the first week In 2015, the average number of theaters per film in the first week dropped slightly. On average, there was one new released film present in 136 theaters in 2015 during its first week of screening, compared to 137 in A French film was distributed, on average, in 116 theaters (three fewer than in 2014) and an American film in 265 theaters (eight more than in 2014). The average number of opening-week theaters for a non-french European film increased in 2015 to 85 theaters (71 in 2014). A non- European, non-american film was released, on average, in 49 theaters, compared to 64 in The film accumulating the highest number of opening-week theaters in 2015 was an American animated film, Minions (920 theaters). In 2014, it was a French comedy, Supercondriaque (884 theaters). In the ranking of the top 10 films, five were American and five were French. On average, adventure films had the most showings in the first week: 419 theaters in 2015 compared to 392 in Animated films and fantasy films also represented wide releases: on average 338 theaters (358 in 2014) and 286 theaters (323 in 2014) respectively. Documentaries and dramas were shown, on average, in a more limited number of theaters (22 and 66 theaters respectively, as in 2014). Three animated films, three adventure films, two comedies (Serial Teachers 2 and The New Adventures of Aladdin), a science fiction film (Star Wars: episode 7, the Force Awakens) and a fantasy film (The Fantastic Four) were present in the ranking of the top 10 films in terms of number of theaters in the first week. Art House films: 60 theaters per film in the first week on average On their release, the number of theaters in which Art House films were distributed was less than a quarter that for non-recommended films on average. An Art House film was shown in 60 theaters in 2015 (59 in 2014), compared to 259 theaters for a non-recommended film (243 in 2014). 40 results 2015

42 In 2015, 221 French Art House films were distributed, on average, in 67 theaters in the first week (63 theaters for 220 films in 2014), compared to 94 theaters for 37 recommended American films (84 theaters for 44 films in 2014). The top Art House title in terms of number of theaters in the first week was the British animated film Shaun the Sheep (28 th). In 2014, the first Art House film came in 40 th. Average number of opening-week theaters per film trend 15/14 total % country of origin French films % American films % European films % other films % Art House recommended films % non-recommended films % genre animation % adventure % comedy % comedy-drama % documentary % drama % fantasy % musical % crime % 1 Theaters showing new released films during the first week of screening 2 Continental Europe, excluding France. Source: CNC. The top 10 films in terms of number of theaters in the first week in title country origin 2 of distributor release date number of theaters Minions US Universal Pictures International Jul Serial Teachers 2 FR / BE UGC Distribution Jul Star Wars: episode 7, the Force Awakens US Walt Disney Dec Belle & Sebastian: The Adventure Continues FR Gaumont Dec The Little Prince FR / IT Paramount Pictures Jul Mission Impossible: Rogue Nation US Paramount Pictures Aug Spectre US Sony Pictures Releasing Nov Pourquoi j'ai (pas) mangé mon père FR / IT Pathé Distribution Apr The Fantastic Four US Twentieth Century Fox Aug The New Adventures of Aladdin FR Pathé Distribution Oct Theaters showing new released films during the first week of screening 2 BE = Belgium / FR = France / IT = Italy / US = United States Source: CNC. 37 films shown in 3D In 2015, 37 new releases were available in 3D (41 films in 2014). 26 were American films, six were French, two were British (Pan and Jupiter Ascending ) one was German (Maya the Bee Movie), one was Australian (Mad Max: Fury Road) and one was from Hong Kong (The Taking of Tiger results

43 Mountain). 24 films were shown in 3D in 500 theaters or more in the first week (22 films in 2014). One was shown in fewer than 100 theaters (three in 2014): Love (French drama). Of the 37 films released in 3D in 2015, 14 were animated films (as in 2014) and 13 were fantasy films (12 in 2014). Seven adventure and three drama films were shown in 3D in First-run releases shown in digital 3D Continental Europe, excluding France. Source: CNC. French films American films European films1 other films total Distributor's ranking 149 active distributors in 2015 In 2015, 149 distributors participated in the release of 654 new films. The ten most active companies distributed 28.3% of the new releases (28.2% in 2014). Twentieth Century Fox, Le Pacte, Universal Pictures International and Mars Films released more than 20 each, totaling 13.6% of films shown for the first time in theaters in Three distributors were responsible for more than 20 releases each in 2014, accounting for 10.7% of all new releases. Of the 149 distributors involved in the release of new films in 2015, 51 did not distribute films in 2014 and 58 only distributed a single film. In 2014, 70 distributors (out of 160) only distributed a single film. 76.7% of distributors had episodic activity. In 2015, Universal Pictures International headed the distributors' ranking in terms of total receipts. The distribution of successful sequels such as Minions, Jurassic World, Fast and Furious 7 and Fifty Shades of Grey allowed it to obtain a market share of 15.3% (3.6% in 2014). In second place, The Walt Disney Company captured 13.6% of distributors' total receipts in 2015, thanks to Star Wars: episode 7, the Force Awakens (1 st film in terms of total receipts in 2015) and Avengers: Age 42 results 2015

44 of Ultron. Mars Films, the top French distributor, took 5 th place with a market share of 6.0%. In particular, the company distributed Wolf Totem but it was thanks to theater screenings of The Bélier Family (released in December 2014) that the company generated more than a third of its total receipts in In 2015, the top ten distributors obtained 74.6% of total receipts (68.3% in 2014). The top five captured 51.4% (42.9% in 2014). Increase in average receipts per admission On average, the total receipts received by distributors per admission before tax reached 2.73 in 2015, representing a rise of 2.0% on 2014 ( 2.68). For a French film, receipts reached 2.57 ( 2.59 in 2014, i.e. -0.6%), compared to 2.86 for an American film ( 2.77 in 2014, i.e. +3.3%), 2.63 for a non-french European film ( 2.49 in 2014, i.e. +5.5%) and 2.61 for a film of other countries ( 2.85 in 2014, i.e. -8.2%). The top 10 distributors in 2015 market share 1 (%) films shown of which new releases 1 Universal Pictures International The Walt Disney Company Twentieth Century Fox Warner Bros. Entertainment Mars Films Pathé Distribution Paramount Pictures Sony Pictures Releasing SND Metropolitan FilmExport In terms of distributors' total receipts Source: CNC. Trend in the number of active distributors Distributors of new released films / Updated data. Source: CNC. results

45 Film promotion Methodology The Kantar Media institute collects statistics on advertising on seven major media: posters, cinema, press, radio, television, the Internet and tactical media. In 2014, Kantar Media modified the follow-up of advertising investments on the Internet. This change does not allow exhaustive data to be gathered on this media. As a result, advertising investments on the Internet are excluded from this section. The amounts mentioned below therefore refer to the financial valorization of displaying advertising on six analyzed media (not including the Internet). These are priced gross investments that do not take into account the discounts, reductions or refunds belonging to each media and each support. This data must therefore be interpreted with care. 509 films were promoted in 2015 for a total of million of gross advertising investments, i.e. 1.1 million on average per film. Over three quarters of first-run releases were promoted 509 films released for the first time in 2015 were the object of a promotion on at least one media (77.8% of the 654 first-run releases in 2015, compared to 75.7% of the 663 films released in 2014). Of the 322 French films released for the first time in theaters in 2015, 76.7% were promoted on least one media (70.6% for films released in 2014). 92.2% of American first-run releases in 2015 were in this situation (94.0% in 2014). French films accounted for 34.4% of gross advertising investments relating to the promotion of first-run releases in French films were promoted on at least one media for a total investment of million (+18.8% from 242 French films in 2014). Advertising investments to promote American first-run release films increased in 2015 compared to those of 2014 (+26.0% to million) for a slightly lower number of films (-10 titles to 130 films). On average, the gross advertising investment for a French film was K in 2015 ( K for a French film in 2014) and 2.2 million for an American film ( 1.6 million for an American film in 2014). Advertising investments for non-french European cinema rose 92.7% between 2014 and 2015, for a higher number of films (+17 titles to 92 films in 2015). 18 non-french European films accumulated more than 1 million in gross advertising investments, compared to eight in Advertising investments for non-european and non-american films increased for films released in 2015 to 19.8 million (+24.0%) for a slight reduction in the number of films (39 films in 2015, versus 44 in 2014). Advertising investments exceeded 500 K for 13 films in 2015, compared to 11 films in results 2015

46 Priced gross advertising investments according to the country of origin of the films and the year of release in theaters (in millions of ) structure trend 15/14 French films % +18.8% American films % +26.0% European films % +92.7% other films % +24.0% total % +27.9% 1 Continental Europe, excluding France. Source: Kantar Media CNC. Inside Out topped the film rankings in terms of gross advertising investments in 2015, followed by The Peanuts Movie and The SpongeBob Movie: Sponge Out of Water (three American animated films). Two French films, both animated, made it into the 20 top film rankings (as in 2014): The Little Prince (14 th ) and Pourquoi j ai (pas) mangé mon père (15 th ). Eight animated films featured in the top 20 (five in 2014). The first documentary, Monkey Kingdom (American film) was 33 rd in this ranking. In 2014, the first documentary was 57 th. The press was the leading medium for film promotion in 2015 Priced gross advertising investments to promote films released in 2015 were million, an increase of 27.9% compared with Press remained the preferred medium for promotion of films. Investments in this medium rose 65.1% to million for first-run release films in The press's share of total investments rose to 36.6% for the 2015 new released films, compared to 28.4% for the 2014 new released films. In the last ten years, investments for promoting new releases in theaters almost tripled. Priced gross advertising investments in cinema was stable to million for 2015 films (+0.1%). Theaters captured 31.4% of total advertising spending on 2015 films (40.1% for 2014 films). Advertising investments for the promotion of first-run releases on radio increased by 73.7% for 2015 films compared to 2014 films, totaling 83.5 million. On average, the promotion of a film released for the first time in theaters in 2015 cost 1.1 million. The average investment differed widely according to the media. It ranged from K for promotion on television to K for promotion in theaters. Priced gross advertising investments according to media and year of release in theaters (in millions of ) structure trend 15/14 posters % -7.6% cinema % +0.1% press % +65.1% radio % +73.7% television % % tactical media total % +27.9% 1 Unconventional media: automobiles, tables of cafes and brasseries. Source: Kantar Media - CNC. results

47 The distribution costs of French initiative films in 2014 Methodology The following data presents the distribution costs of French initiative films approved by CNC and released in theaters. Three sources of information were used to collect the detailed data of these costs: automatic support for distribution, the Canal+ contribution to distribution (real investments certified by an accounting expert) and data declared by the distributors for films that are not covered either by Canal+ aid, or by automatic support. French films not approved, approved French minority films and some films for which no information could be collected are excluded. The publishing costs (= distribution costs) are broken down into four categories: - technical distribution costs: printing of copies (silver and digital), storage, transport of copies, costs associated with design and manufacture of the trailer, expenses associated with the distribution of the digitized films (especially the DCP (Digital Cinema Package) and KDM (Key Delivery Message)). In this study it was possible to make the distinction between the expenses linked to silver copies and those linked to digital copies. As of 2012, the technical costs also take into account digital contributions; - the purchases of advertising spaces: posters, radio, Internet, press, cinema, television; - expenses linked to the design and manufacture of advertising material: design and manufacture of posters, creation and production of radio spots, video clips, web sites, etc.; - miscellaneous promotion costs: manufacture of invitation cards, rental of screening rooms, organization of previews, costs of film festivals and representation, remuneration of the press secretary, journeys and travel, etc. Decline in the average distribution cost of French initiative films to K in 2014 In 2014, the average distribution cost of French initiative films decreased 7.5% compared to 2013 to K. 38.4% of the films had a distribution cost below 200 K in 2014, versus 33.1% in Between 2013 and 2014, the structure of publishing costs highlighted a rise in the share captured by miscellaneous promotional costs related in particular to press relations (from 15.9% to 17.3%). The share of costs related to the manufacture and design of advertising material dipped slightly (11.1% in 2013 and 10.8% in 2014), as well as that related to purchases of spaces (49.9% in 2013 and 49.1% in 2014). At 22.8%, the share of technical expenses also declined to reach its lowest level of the past decade (22.8% in 2014 and 31.4% in 2005), due to the development of the digital distribution of films. On average, a French initiative fiction film totaled K in publishing costs ( K in 2013). Average publishing costs invested per fiction in 2014 fell compared to 2013 (-8.2%). The total amount of publishing costs was stable in 2014 for an almost equivalent number of films (+14 titles). French initiative animation generally gave rise to significant publishing costs ( 1.1 million on average per film during the decade). After a decline in 2013, publishing costs incurred by animated film in 2014 ( 1.1 million) increased by 174.2% between 2013 and results 2015

48 The documentary is a controlled economy genre. The average amount of publishing costs amounted to K ( K in 2013). Despite a rise in the number of French initiative documentaries in 2014 to 25 titles (20 in 2013, +25.0%), publishing costs declined, because no film exceeded 1 million in publishing costs in 2014 (three films in 2013). Distribution costs for French initiative films trend 2014/ 2013 number of films % distribution costs (in millions of ) % technical costs % purchase of spaces % advertising material % misc promotion costs % average distribution cost per % film (in thousands of ) Base: approved French initiative films released in cinemas for which distribution costs are available. Source: CNC. Publishing costs: 10.0% of the final cost of a French initiative film in 2014 The average final cost of a French initiative film (production cost + distribution cost) was 5.8 million for films in 2014 ( 6.1 million in 2013). The budget dedicated to the distribution of a film is closely correlated with its production cost. In 2014, a film whose production cost was less than 1 million had an average distribution cost of 93.7 K ( 84.6 K in 2013). A film whose production cost exceeded 15 million incurred, on average, publishing costs which were 20 times higher ( 1.9 million in 2014 and 1.7 million in 2013). Distribution costs of French Initiative Films according to the production cost in 2014 < 1 million million million 4-7 million 7-15 million >= 15 million number of films final cost 1 (in millions of ) ,042.3 distribution costs (in millions of ) technical costs purchase of spaces advertising material misc promotion costs average final cost per film (in millions of ) average distribution cost per film (in thousands of ) , , Base: 181 approved French initiative films were released in 2014 for which the distribution and production costs are available. 1 Final cost = production cost + distribution cost. Source: CNC. total On average, more than 91,000 of digital contributions per French initiative film in 2014 Of the 190 approved French initiative films released in theaters in 2014, data relating to virtual or VPF (Virtual Print Fee) contributions paid to operators were available for 188 of them (100% in 2013, 90.9% in 2012 and 94.8% in 2011). Apart from 2013, it should be noted that digital results

49 contributions have been incorporated, in the questionnaires, into technical costs of printing digital copies. Taking this detail into account, the data should be interpreted with care. The total digital contributions for 188 approved French initiative films released in cinemas in 2014 was 17.3 million, that is 91,843 on average per film in 2014 ( 93,534 in 2013). The share of digital contributions in distribution costs (including VPF) of these films is estimated at 14.2% (13.5% in 2013). In 2014, the digital contributions per copy rose, on average, to 491. Identified digital contributions trend 2014/2013 number of films % total digital contributions (in millions of ) % digital contributions per films ( ) 55,876 84,327 93,534 91, % share of digital contributions in distribution costs (including VPF) (%) pts Base: approved French Initiative Films released in cinemas for which digital contributions are available. 1 Updated data. Source: CNC. 48 results 2015

50 2.3. Movie theater audiences In 2015: 39.1 million movie-goers (66.0% of the French attended movie theaters) 6-14 years old years old years old 50 and over 15.6% 16.6% 35.5% 32.2% Movie theater audiences in 2015 Methodology Information given on movie theater audiences is taken from the 75,000 Cinema survey conducted by the Mediamétrie institute. This telephone survey was conducted in January-February 2016 among a representative sample (5,341 people) of the population aged six and over and resident in mainland France. It collected data on attendance practices by movie-goers in Definitions The movie-going population refers to all individuals aged six and over who went to a movie theater at least once during the year. The movie-going penetration rate for a group of individuals is the result of the calculation: Movie-going population of that group / total population of that group. The share of a group of individuals in the audience structure is the result of the calculation: Individuals concerned / total movie-going population. The share of a group of individuals in the admissions structure is the result of the calculation: Admissions by the individuals concerned / total admissions. The average number of admissions for a group of individuals corresponds to the average number of annual admissions for an individual in the movie-going population of that group. Frequent go to the movie theater at least once per week, regular attend at least once per month (but less than once per week) and occasional movie-goers go at least once per year (but less than once per month). Habitual movie-goers include both frequent and regular. results

51 Stable number of movie-goers in 2015 There were almost as many movie-goers in 2015 as in million individuals aged 6 and over went at least once to a movie theater in the year (39.2 million in 2014). The movie-going population numbered 61,000 fewer people than in 2014 (-0.2%). This figure has increased by 12.3% over 10 years, i.e. a growth rate faster than that of the total reference population (+5.1%). The movie-going population represented 66.0% of the total population aged six and over in 2015, compared with 66.0% in Two thirds of the French population went to a movie theater at least once in On average, every movie-goer went to a movie theater 5.3 times in 2015 (as in 2014). Two thirds of the French population went to a movie theater at least once in The movie-going population total population movie-goers (in millions) (in millions) penetration (%) average admissions per movie-goer Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. Women accounted for more admissions In 2015, women accounted for more movie theater admissions (53.2% in 2015, compared to 51.3% in 2014) than men (46.8%, compared to 48.7% in 2014). Admissions generated by women increased by 1.9% between 2014 and 2015 while those of men decreased by 5.7% (-1.8% in total). Women made up 51.7% of the French population aged six and over and represented 50.9% of all movie-goers (52.6% in 2014). Within the movie-going population, the number of women declined by 3.4% in 2015 while the number of men increased by 3.4%. For the first time in five years, movie-theater penetration was higher in the male population: 67.1% of men went to a movie theater at least once during the year (65.3% in 2014), versus 64.9% of women (67.7% in 2014). However, in 2015, women went to a movie theater more often (5.5 times on average in the year) than men (5.0 times). Attendance by gender in 2015 proportion of the population (%) penetration (%) audience structure (%) admission structure (%) average number of admissions men women total Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. 50 results 2015

52 Seniors (50 and over) generated 37.9% of admissions in Rise in admissions by the over 50s Since 2006, movie-goers aged 35 and over have accounted for more than half of the movie-going population (54.1% in 2015, 54.2% in 2014). In 2015, they accounted for 55.3% of admissions (55.5% in 2014), i.e., an average of 5.3 admissions per movie-goer. The share of seniors (50 and over) in the movie-going population fell to 32.2% in 2015 (33.1% in 2014), while their contribution to the total reference population grew (41.7% in 2015, 41.3% in 2014). Attendance by the over 50s decreased by 2.7% between 2014 and 2015 and the average annual number of admissions by seniors reached 6.1, versus 5.8 in Seniors generated 37.9% of admissions to movie theaters in 2015, with female seniors accounting for 22.0%. Movie-theater penetration increased among the year olds. It rose from 65.8% in 2014 to 68.5% in The number of movie-goers aged 35 to 49 rose by 3.3% between 2014 and Their share in the audience amounted to 21.8% (21.1% in 2014). Their contribution to attendance declined: year-olds generated 17.4% of admissions in 2015 (18.9% in 2014), i.e. an average annual admission rate of 4.2 per movie-goer (4.8 in 2014). Although the overall attendance fell 1.8% between 2014 and 2015, admissions by year-olds decreased by 9.7%. The share of year-olds among the movie-going population was down (13.7% in 2015, 14.5% in 2014). The number of movie-goers from this generation fell by 5.7% between 2014 and In 2015, the age group represented 14.3% of admissions, compared with 14.1% in Between 2014 and 2015, attendance generated by the age group was relatively stable (- 0.4% versus -1.8% for total attendance). Movie-theater penetration was down for this age group: 70.7% of year-olds went to the movies at least once in 2015, compared with 74.3% in % of under 25 year-olds went to the movies in Less than one third of movie-goers under the age of 25 The share of the under 25 year-olds in the movie-going population rose in They represented 32.2% of movie-goers, versus 31.3% in 2014 and their number increased by 2.7%. Under 25 yearolds were responsible for 30.4% of admission (as in 2014). Until 2000, they had always represented more than 40% of admissions. They generated 1.9% fewer admissions in 2015 than in In terms of penetration, movies attracted more younger people: 86.8% of under 25 year-olds went to the movies in 2015, compared with 85.3% in Penetration increased for 6-10 yearolds (84.3%, versus 76.8% in 2014) and was over 85% for year olds. It was particularly high for boys aged 15 to 19 (92.7% of them went to the movies in 2015) and girls of the same age group (88.4%). Differences in attendance patterns remained in 2015 according to age group. On average, the annual threshold of 6 admissions was reached for years (6.3) and for the second time by those aged 60 and over (6.7). The other age groups were below this threshold year-olds are more likely to have gone to the movies in 2015 (11.5% compared to 2014). More movie-goers aged under % of under 14 year-olds went to the movies at least once in 2015, compared with 80.9% in year-olds were more likely to have gone to the movies in 2015 (+11.5% compared to results

53 2014) and the number of year-olds was stable. Overall, the number of under 14 year-olds who went to the movies increased by 6.0% in 2015 to 6.1 million. Although the share of the under 14 year-olds in the movie-going population rose in 2015 (15.6% of audiences, against 14.7% in 2014), the proportion of admissions they generated decreased (11.1% of admissions in 2015, versus 11.9% in 2014). Admissions by under 14 year-olds fell by 8.1% while overall attendance declined by 1.8% in Under 14 year-olds went to the movies less often in 2015 than in On average, they attended movie theaters 3.8 times in 2015, versus 4.3 times in Attendance by age in 2015 proportion of the population (%) penetration (%) audience structure (%) admission structure (%) average number of admissions 6-10 years old years old years old years old years old years old years old 60 and over total Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. More seniors went to the movies Since 2011, the share of seniors (50 and over) in movie-going audiences has been slightly higher than that of under 25 year-olds. In 2015, the share of seniors and that of under 25 year-olds in movie theater audiences were similar at 32.2%. However, seniors generated 37.9% of admissions in 2015 (36.6% in 2014), while the younger age group only generated 30.4% (30.4% in 2014). Proportion of young people and seniors in audiences (%) aged under 25 aged 50 and over Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. 52 results 2015

54 Proportion of young people and seniors in admissions (%) aged under 25 aged 50 and over Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. The retired generated 13.9% more admissions than in 2014 In terms of professional categories, members of the upper socio-professional category were once again the group most attracted to movie theaters, with a stable rate of penetration (76.9% of its members went to a movie theater at least once in 2015, compared to 76.0% in 2014). This was particularly true for women in the upper socio-professional category, 78.0% of whom went to a movie theater at least once in 2015 (76.1% for men in the upper socio-professional category). The average number of admissions per upper socio-professional category was down in 2015 (5.5 versus 6.3 in 2014). In 2015, movie going remained relatively stable in the lower socio-professional category (CSP-): 58.7% of members of the lower social-professional category went to a movie theater, compared with 58.5% in On average, they went to a movie theater 4.3 times in the course of the year, compared with 4.5 times in This resulted in a share of admissions which was down slightly (- 2.9%) for the lower social-professional category that generated 18.5% of attendance in 2015, versus 18.7% in Movie goers in the lower social-professional category remained stable between 2014 and 2015 (-0.3%). Movie-theater penetration among non-working individuals declined in 2015: 64.7% went to a movie theater at least once (62.7% of women and 67.3% of men), compared with 66.2% in Movietheater penetration among pupils and students increased in 2015: 88.1% attended movie theaters (86.6% in 2014). Between 2014 and 2015, the number of pupils and students going to the movies rose (+3.0%), in contrast to the admissions they generated (-3.7%). Movie-theater penetration decreased among the retired to 50.1% in 2015, against 54.0% in Compared to 2014, the number of retired movie-goers was down 5.9%, while their admissions increased by 13.9%. The number of pupils and students going to the movies rose (+3.0% compared to 2014). results

55 Attendance by profession in 2015 proportion of the population (%) penetration (%) audience structure (%) admission structure (%) average number of admissions upper socio-professional CEOs, executives, etc intermediate professions lower socio-professional farmers office workers manual workers non-working individuals retired pupils, students other non-working individuals (unemployed, total etc.) Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. Movie theater penetration increased in less populated areas Rural and urban units with fewer than 20,000 inhabitants contributed to the expansion of the movie-going population in Movie-theater penetration progressed in urban units with fewer than 20,000 inhabitants (+1.3 points) and more so in rural areas (+3.6 points). In terms of numbers, the movie-going population in these zones increased by 3.0% between 2014 and Rural and urban units with fewer than 20,000 inhabitants accounted for 38.3% of audiences (37.1% in 2014) and 29.5% of admissions in 2015 (26.7% in 2014). The average number of admissions increased to 4.1 per movie-goer in these areas in 2015 (3.8 in 2014). Paris and urban units with over 100,000 inhabitants have no longer accounted for the majority of movie-goers for several years. After an increase in 2013, these urban units achieved a smaller share of movie-goers in 2015: 48.7% in 2014, compared with 49.2% in They still accounted for the highest share of admissions (59.2% in 2015, 62.1% in 2014). The number of movie-goers in major conurbations (including Paris) fell by 1.2% between 2014 and 2015 and admissions generated by 6.4%. Attendance by the size of the urban unit in 2015 proportion of the population (%) penetration (%) audience structure (%) admission average number structure (%) of admissions rural areas urban units < 20,000 inhabitants urban units with 20,000 to 50, inhabitants. urban units with 50,000 to 100, inhabitants. urban units > 100,000 inhabitants urban units in Paris total Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. Occasional movie-goers made up 66.5% of audiences in results 2015

56 Increase in the occasional audience In 2015, the number of occasional movie-goers fell by 2.0% in a stable total movie-going population (-0.2%). It reached 26.0 million movie-goers (26.5 million in 2014). Occasional moviegoers accounted for 66.5% of movie theater audiences in 2015, compared to 67.7% in They accounted for 29.3% of theater movie attendance in 2015 (28.7% in 2014), i.e million admissions. Attendance by occasional movie-goers was stable (0.2%) between 2014 and 2015 while total admissions decreased 1.8%. Attendance by occasional movie-goers was mainly dependent on films reaching a wide audience such as Fifty Shades of Grey (42.9% of admissions for occasional movie-goers) Minions (42.3%) or Serial Teachers 2 (40.0%). Habitual movie-goers (regular and frequent) still accounted for the majority of admissions. They accounted for 70.7% of total admissions for the year. However, their attendance declined by 2.7% from 2014 to million admissions. This decrease was mainly due to frequent movie-goers for which admissions dropped by 4.7%, while admissions for regular movie-goers declined by 1.5% in Compared to 2014, the movie-going population featured more regular movie-goers (0.52 million people) but fewer frequent movie-goers (-0.06 million individuals). Regular movie-goers accounted for 33.5% of movie theater audiences in 2015, compared to 32.3% in Movie theater audience behavior audience structure (%) habitual frequent regular occasional total admission structure (%) habitual frequent regular occasional total Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. results

57 Structure of the audience and admissions by attendance behavior in 2015 (%) audience structure 3,6 29,9 66,5 admissions structure 24,8 45,8 29,3 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. frequent regular occasional The attendance behavior of movie-goers is determined by socio-demographic criteria. In 2015, 35.6% of regular movie-goers were aged under 25 (30.5% of occasional movie-goers), 57.4% were from the non-working category (48.0% of occasional movie-goers) and 56.7% lived in Paris or conurbations with more than 100,000 inhabitants (44.7% of occasional movie-goers). Audience structure by attendance behavior in 2015 (%) habitual occasional total gender men women age 6-14 years old years old years old and over profession upper socio-professional lower socio-professional non-working individuals location rural areas urban units < 20,000 inhabitants urban units. of 20,000 to 50, inhabitants urban units. of 50,000 to 100, inhabitants urban units > 100,000 inhabitants Paris conurbation Source: CNC - Médiamétrie survey 75,000 Cinema, aged 6 and over. Also see The statistical series on the profile of the movie-theater audience 56 results 2015

58 Film audiences in 2015 Methodology The CNC, Mediavision and Screenvision joined forces to create Publixine, a movie theater audience survey tool. Publixiné. Implemented by Harris Interactive, the survey was administered online among 800 to 1,000 people twice a month. The survey collects data on movie-goers aged three and over. This main objective of this "barometer" is to measure composition of the audience for around 300 films a year (films playing with more than 50 copies). Data on films released between January and November 2015 are from the Publixiné survey. Furthermore, the Vertigo market research firm launched Cinexpert, a new system of study and measurement of audiences in partnership with the CNC, Canal Médiavision and Canal+. This on line study administered every week makes it possible to describe weekly cinema and movie attendance in a highly precise manner. Data on films released in movie theaters in December 2015 result from the survey Cinexpert. In 2015, audiences were studied for 328 films (326 films in 2014). In 2015, 43.5% of the audience for French films were composed of seniors (aged 50 and over) French films appeal more to frequent. French films were especially popular with seniors (aged 50 and over) in The indexes for this two population in audiences for French films were higher than their share in audiences for all films. In 2015, 43.5% of the audience for French films was composed of seniors. In contrast, moviegoers under 25 were under-represented in French film audiences. They accounted for 25.7% of audiences for French films, compared to 34.7% for all films. Nevertheless, some French films had a major impact on this age group which makes up more than half of their audience, including The New Adventures of Aladdin (62.3% under 25 years) Serial Teachers 2 (57.1%) or Pourquoi j ai pas mangé mon père (52.5%). French films appeal more to frequent movie-goers. In 2015, they represented 34.2% of these films' audiences, compared with 30.2% of the audiences for all films. Films such as Standing tall or A perfect man drew in large numbers of movie-goers (over 600,000 admissions) and a high proportion of frequent movie-goers (43.4% and 39.8% respectively). results

59 French films attracting a significant share of under 25 year-olds in 2015 (%) Les Nouvelles Aventures d Aladin Les Profs 2 Pourquoi j'ai (pas) mangé mon père Le Petit Prince Connasse, princesse des coeurs Babysitting 2 Bis Taken 3 Belle et Sébastien, l'aventure continue Papa ou maman Basis: French films released in 2015 on more than 50 copies and for which at least 200 interviews were conducted. Source: Publixiné - Harris Interactive; Cinexpert - Vertigo. 36,9 35,9 35,0 38,6 47,0 46,4 49,0 52,5 57,1 62,3 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 In 2015, 42.4% of movie-goers for American films were under 25 years of age. Young audiences for American films The audiences of American films are young. 42.4% of movie-goers for American films were under the age of 25, compared to 34.7% for all films. This can be explained by the theatrical release in 2015 of ten animated films including The SpongeBob Movie: Sponge Out of Water (69.7% of 3-24 years old), Hotel Transylvania 2 (61.6%), Minions (59.3%) and Big Hero (59.1%). In 2015, American films were just about as popular with women (50.1%) as with men (49.9%). Seniors (17.7%) and frequent movie-goers(26.1%) were less represented in audiences for American films. 58 results 2015

60 Film audiences by country of origin in 2015 (%) French films American films European films 1 other films all films gender men women age children (age 3-14) young adults (age ) adults (age 25-49) seniors (50 and over) profession upper socioprofessional lower socio professional non-working individuals location Paris and surroundings other regions movie-going frequency frequent regular occasional Continental Europe, excluding France. Basis: sample of 328 films in Source: Publixiné - Harris Interactive; Cinexpert - Vertigo. Children made up 41.3% of the audience of animated films in Occasional movie-goers are particularly present in the audiences for animated films Among the main genres of feature films, animated films have a very specific audience. Children accounted for 41.3% of the audiences for these films, compared to 13.0% of audiences for all films. For films such as Hotel Transylvania 2 or The SpongeBob movie - Sponge out of Water, 3-14 yearolds represented more than 45% of the audience. Among audiences for animated films, residents of non-parisian regions were over-represented (78.5% in 2015, compared to 74.8% for all genres). 33.8% of animated film audiences were occasional movie-goers, compared to 21.6% for all films. Regular movie-goers made up 48.0% of the audience for these films (48.3% for all genres) and frequent movie-goers accounted for 18.2% (30.2% for all genres). An audience of seniors for documentaries It should be noted that only films released on over 50 copies are included in this study. This restriction excludes many documentary films, which often have limited releases. The following results concern all documentaries released in theaters on over 50 copies between 2006 and 2015, i.e. 62 films. The audience analysis for these documentaries indicated a true segmentation compared to other film genres. Documentaries drew in a large number of seniors (36.1% of audiences, compared to 25.2% for all films between 2006 and 2015), of members of the upper socio-professional category (28.7%, compared to 26.6% for all films) and of Parisians (30.3%, compared to 28.2% for all films). Between 2006 and 2015, the share of occasional movie-goers in documentary audiences was near that of frequent movie-goers. These made up 26.6% of the audience for documentary films (26.7% for all films), while occasional movie-goers comprised 25.8% (24.7% for all films). results

61 Film audiences by gender in 2015 (%) animated films fiction including comedies all films gender men women age children (age 3-14) young adults (age ) adults (age 25-49) seniors (50 and over) profession upper socioprofessional lower socio professional non-working individuals location Paris and surroundings other regions movie-going frequency frequent regular occasional Basis: sample of 328 films in Source: Publixiné - Harris Interactive; Cinexpert - Vertigo. Frequent, urban and senior movie-goers attended Art House films Audiences for Art House films have particular characteristics. It should be noted that only films released in over 50 opening-week theaters are included in this study. This restriction excludes many Art House films, which often have limited releases. In 2015, seniors accounted for 49.2% of Art House film audiences, members of the upper socioprofessional category accounted for 35.8%, residents of Paris and its surrounding regions accounted for 31.6% and frequent movie-goers accounted for 40.1%. At the same time, the audience structure for non-recommended films was totally different from that of Art House films: younger, more occasional audiences residing primarily outside of the Parisian regions. Frequent movie-goers particularly favored certain recommended Art House films by well-known directors. This was the case of Standing Tall by Emmanuelle Bercot (43.4% of frequent moviegoers) and Birdman by Alejandro Gonzáles Iñárritu (38.5%). Among the 143 recommended Art House films in 2015, only eleven had an audience where the share of occasional movie-goers was above average, three of which were animated films. 60 results 2015

62 Art House films audiences in 2015 (%) Art House films nonrecommended films all films gender men women age children (age 3-14) young adults (age 15-24) adults (age 25-49) seniors (50 and over) profession upper socio-professional lower socio-professional non-working individuals location Paris and surroundings other regions movie-going frequency frequent regular occasional Basis: sample of 328 films in Source: Publixiné - Harris Interactive; Cinexpert - Vertigo. The success of a film depends on occasional movie-goers The proportion of frequent movie-goers and occasional movie-goers within a film's audience depends on its admissions. The lower the number of admissions, the greater the proportion of frequent movie-goers in the audience (47.9% for films with under 100,000 admissions in 2015). Conversely, greater admissions for a film mean a higher proportion of occasional movie-goers in its audience (35.7% for films with over four million admissions in 2015). Occasional movie-goers are more influenced by word-of-mouth. However, examining statistics for each film in detail shows that higher proportions of occasional movie-goers are not systematically correlated to the number of admissions, although in cases when a film has more than four million viewers, they are generally over-represented regardless of the film. Thus, some films enjoying considerable success in 2015, such as Babysitting 2, Kingsman: The Secret Service and American Sniper (over 1.6 million admissions each), attracted fewer occasional movie-goers than the average for films (21.6% in 2015), with respectively 16.7%, 19.2% and 21.2% of occasional movie-goers. So the success of these films was dependent on an audience of regular movie-goers (between 47.9% and 55.7%) and frequent movie-goers (between 23.0% and 33.2%). In parallel, the higher the admissions for a film, the more it attracted young people (6.2% of children's films achieved fewer than 100,000 admissions in 2015, 20.4% for films with more than 4 million admissions) and males (45.6% for films with fewer than 100,000 admissions, 52.9% for films with over 4 million admissions). The twelve films with over 3 million admissions in 2015 attracted an audience which was more male (52.2%, versus 46.9% for all films), younger (46.5% versus 34.7%), more regional (79.0% versus 74.8%) and composed of more occasional movie-goers (34.7% versus 21.6%) than the average for films. The more admissions for a film, the younger the audience: 45.8% of audiences for films with more than 4 million admissions were aged under 25. results

63 Film audiences according to the number of admissions in 2015 (%) fewer than 100,000 to 500,000 to 100, ,000 1 million 1 to 2 million 2 million to 4 million more than 4 million all films gender men women age children (age 3-14) young adults (age 15-24) adults (age 25-49) seniors (50 and over) profession upper socio-professional lower socio-professional non-working individuals location Paris and surroundings other regions movie-going frequency frequent regular occasional Basis: sample of 328 films in Source: Publixiné - Harris Interactive; Cinexpert - Vertigo. 3D films attract male, occasional movie-goers Of the 328 films in the 2015 sample, 34 were released in 3D (exclusively or not), compared with 43 films in The analysis compared the structure of the audience of these films compared with all films. Audiences for 3D films in movie theaters had particular characteristics. In 2015, it comprised 53.2% men (46.9% for all films), 45.8% under 25 year-olds (34.7% for all films), 79.3% of people residing in regions (74.8% for all films) and 28.4% of occasional movie-goers (21.6% for all films). 62 results 2015

64 Audiences of films screened in 3D in 2015 (%) films in 3D all films gender men women age children (age 3-14) young adults (age 15-24) adults (age 25-49) seniors (50 and over) profession upper socio-professional lower socio-professional non-working individuals location Paris and surroundings other regions movie-going frequency frequent regular occasional Basis: sample of 34 films in 2015 having been released in theaters in 3D. Source: Publixiné - Harris Interactive; Cinexpert - Vertigo. Also see The statistical series on the movie-going population results

65 2.4. Exhibition In 2015: 2,033 cinemas (+13 cinemas compared to 2014) of which 203 multiplexes (10.0% of cinemas)% of which 1,160 single-screen cinemas (57.0% of cinemas) of which 670 cinemas with 2 to 7 screens (33.0% of cinemas) What is an active screen? In order to measure cinema screen activity across France, the CNC takes an annual census of active screens (i.e., any screen that shows at least one film during the year that requires cinema operators to file a statement of receipts with the CNC). This declaration is filed with the CNC by cinema operators. This statement provides documentary proof of earnings, TSA (tax on cinema tickets) calculations and automatic financial support calculations. These documents are used to tabulate all statistics concerning film projections in cinemas. Cinema operators are required to provide a statement of earnings for each week, every screen and every film. Included for each week are the titles of films currently featured, the number of scheduled show times, total admissions and total box-office. Screens that only broadcast video instead of screening films are not included in this review of projections. French cinemas The total number of screens increased to 5,741 5,741 screens were active in France in 2015, i.e. 94 more than in 2014 (+1.7%). This balance is the result of the temporary or definitive closing of 98 screens and the opening or reopening of 192 screens. Most screen openings were due to the increase in the total number of multiplexes. In 2015, 42.7% of the new screens were located in this type of cinemas (32.3% of new screens in 2014) versus 35.9% in cinemas with 4 to 7 screens (39.4% in 2014) and 21.4% in cinemas with 1 to 3 screens (28.3% in 2014). The opening of some multiplexes sometimes causes other cinemas to close, especially in the case of transferred operations. For example, the closure of a five-screen cinema and a three-screen cinema in Ales (30) followed the opening of an eight-screen multiplex in the same city. In Aurillac (15), a five-screen theater closed and a seven-screen one opened. In Montreuil (93), the closure of a three-screen cinema preceded the opening of a six-screen cinema. In Rochefort (17), a fivescreen cinema closed and an eight-screen one opened. In Saint-Etienne (42), a ten-screen cinema opened while a seven-screen one closed. Finally, in Sens (89), a seven-screen cinema opened while two cinemas with two screens closed. It should be noted that of the 192 screens opened in 2015, 30 were the result of the expansion of existing cinemas(31 out of 127 in 2014). 64 results 2015

66 The 5,741 active screens in 2015 included 102 mobile units (as in 2014) and two outdoor screens (as in 2014). 2,033 cinemas in 2015 (+13 compared to 2014) comprising 5,741 screens (+94 compared to 2014). 2,033 cinemas In 2015, the number of active cinemas stood at 2,033, i.e. thirteen more than in cinemas opened or re-opened whereas 33 closed temporarily (mainly for renovation) or permanently. In 2015, three cinemas with seven screens, one with six screens, six with five screens, one with four screens, three with three screens, three with two screens and sixteen with single-screen closed, either temporarily or permanently. 50.0% of newly-opened cinemas in 2015 had single-screen (23 cinemas). Seven had eight screens or more also saw the opening of two cinemas with two screens, four with three screens, three with five screens, four with six screens and three with seven screens. Cinemas in France 1 cinemas screens seats average number of seats per movie theater average number of seats per screen ,064 5,281 1,018, ,055 5,316 1,022, ,069 5,390 1,036, ,066 5,470 1,051, ,049 5,467 1,048, ,033 5,467 1,046, ,035 5,508 1,053, ,026 5,588 1,065, ,020 5,647 1,071, ,033 5,741 1,094, trend 15/ % +1.7% +2.2% +1.5% +0.5% trend 15/06-1.5% +8.7% +7.5% +9.1% -1.1% 1 Provisional data for 2015 and updated data for Source: CNC. results

67 movie theaters screens Change in the number of active cinemas and screens movie theaters screens 1 Provisional data for 2015 and updated data for Source: CNC. Change in screen openings and closings Provisional data for 2015 and updated data for Source: CNC. openings closures 85 cinemas in Paris In 2015, the number of active screens in Paris rose to 389, from 404 in The capital had three fewer cinemas in 2015 compared to The Forum Orient Express (seven screens) in the 1 st arrondissement has been permanently closed since January 2014, the Gaumont Alesia (seven screens) in the 14 th arrondissement closed for renovation in 2014 and is scheduled to reopen in 2016 and the Gaumont Convention (six screens) in the 15 th arrondissement also closed for renovation in 2014 and reopened in early Conversely, a cinema opened in 2015 in Paris: Les Fauvettes (five screens) in the 13 th arrondissement (formerly Gaumont Gobelins). Paris is home to 85 cinemas, nine of which are multiplexes (8 or more screens). The capital had more than 72,528 cinema seats in In 10 years, the number of Parisian cinemas decreased by three but the number of screens increased by 10 and seats by 323. A Parisian cinema had, on average, 853 seats in 2015 (821 in 2006, i.e. +4.0%) and a screen had 186 seats (191 in 2006, i.e. -2.1%). 66 results 2015

68 cinemas screens seats , , , , , , , , , ,528 trend 15/14-2.3% -3.7% -3.6% trend 15/06-3.4% +2.6% +0.4% 1 Provisional data for 2015 and updated data for Source: CNC. Decline in the average number of admissions per cinema In light of the change in attendance in 2015 (-1.8% from 2014), the average number of admissions per cinema fell to 100,981 admissions, i.e. -2.4% from The average number of admissions per screen also decreased to 35,759 admissions (-3.4%). On average, a single multiplex recorded 614,486 admissions in 2015, versus 654,976 in 2014 (-6.2%). Average number of admissions 1 per cinema per screen ,454 35, ,854 33, ,981 35, ,591 36, ,074 37, ,837 39, ,041 36, ,627 34, ,504 37, ,981 35,759 1 Provisional data for 2015 and updated data for Source: CNC. Definition of small, medium and large cinemas Each movie theater is professionally classified as being small, medium or large, depending on its annual admissions level. Thus, cinemas with fewer than 80,000 yearly admissions are considered small, those with 80,000 to 450,000 admissions are considered medium-sized and those with more than 450,000 admissions are classified as large. However, according to convention, all cinemas operated by companies that own at least 50 screens are classified as large, regardless of their admissions level. In 2015, the 12 companies owning at least 50 screens were C2L, Cap Cinéma, CGR, CinéAlpes, Les Cinémas Gaumont Pathé, Cinéville, Font-SNES, Kinepolis, Megarama, MK2, Société d Exploitation Grand Ecran and UGC. results

69 Two thirds of admissions occurred at large cinemas While 73.8% of cinemas were classified as small in 2015, they accounted for 34.6% of screens, 35.8% of seats and 15.1% of admissions. Conversely, 14.7% of cinemas were classified as large, accounting for 45.5% of screens, 47.2% of seats and 65.6% of total attendance. Large cinemas had an average of 452,185 admissions in 2015 (-4.2% from 2014), compared to 168,961 admissions for medium cinemas (+1.6%) and 20,658 admissions for small cinemas (- 0.9%). In the context of a slight dip in attendance (-1.8% from 2014), large cinemas' total attendance fell faster (-2.6%) than that of medium cinemas (-0.5%). Attendance at small cinemas was stable between 2014 and Attendance at small cinemas remained stable between 2014 and 2015, while that of large cinemas decreased by 2.6% and that of medium cinemas by 0.5%. Cinemas by category 1 small cinemas cinemas screens seats admissions (in millions) average number of admissions per cinema ,495 1, , , ,532 2, , , ,538 2, , , ,488 1, , , ,501 1, , ,658 trend 15/ % +1.2% +3.3% +0.0% -0.9% share of total in % 34.6% 35.8% 15.1% medium cinemas , , , , , , , , , , , , , , ,961 trend 15/14-2.1% +2.1% +1.4% -0.5% +1.6% share of total in % 19.9% 17.1% 19.3% large cinemas , , , , , , , , , , , , , , ,185 trend 15/ % +1.9% +1.6% -2.6% -4.2% share of total in % 45.5% 47.2% 65.6% 1 Provisional data for 2015 and updated data for Source: CNC. 68 results 2015

70 Over 60% of admissions were in multiplexes In 2015, 203 multiplexes (cinemas with 8 screens and more) were active in France, seven of which opened in the year. The number of creations was slightly greater than the average over the past 10 years (six openings on average every year). Five cinemas became multiplexes due to an increase in the number of screens: the Cyrano in Bergerac (Dordogne) went from seven to nine screens, the Cinéville in Vannes (Morbihan) from seven to nine screens, the Carousel in Verdun (Meuse) from four to eight screens, the Veo - Grand Mermoz in Muret (Haute-Garonne) from six to eight screens and Cine Planète in Romans-sur-Isère (Drôme) from five to eight screens. 10.0% of French cinemas were multiplexes in Multiplexes accounted for 40.6% of screens and 42.5% of seats. Multiplexes had massive attendance figures: 60.8% of admissions were in multiplexes in 2015 (59.8% in 2014). In all, multiplex attendance fell 0.3% on 2014, versus -1.8% for all cinemas. On average, a multiplex had 11 screens and 2,292 seats in % of cinemas are single-screens The total number of French cinemas included 1,160 single-screens in 2015 (20.2% of screens and 57.1% of cinemas). These cinemas accounted for 23.3% of seats and 8.2% of admissions. The 670 cinemas with 2 to 7 screens accounted for 39.2% of the screens and 34.2% of the seats in They accounted for 31.0% of total admissions for the year. Multiplexes (8 or more screens) opened in 2015 cinema operator town or city urban area date opened screens seats Le Camion Alliance Bourguignonne February Saint Etienne Saint Etienne Cinématographique ,640 Apollo Ciné Cinéfortis Rochefort Rochefort April ,310 Pathé Les Cinémas Gaumont Pathé Levallois-Perret Paris April ,538 CGR Studio CGR Vitrolles Marseille - Aix-en- Provence June ,490 Cap'Cinéma Cap'Cinéma Cagnes-sur-Mer Nice October ,800 CGR Lescar CGR Lescar Pau December ,575 Cinéplanet Compagnie Cinématographique December Alès Alès Immobilière Cévenole ,312 Source: CNC. results

71 Projection results for multiplexes (cinemas with eight or more screens) 1 number cinemas screens seats admissions (in millions) average number of admissions per cinema , , , , , , , , , , , , , , ,486 trend 15/ % +5.0% +4.1% -0.3% -6.2% share of total (%) Provisional data for 2015 and updated data for Source: CNC. Cinemas by number of screens in cinemas screens seats admissions average number of admissions per cinema 1 screen 1,160 1, , ,588 2 to 3 screens 433 1, , ,638 4 to 5 screens , ,132 6 to 7 screens , ,863 8 to 11 screens , , screens or more 96 1, , ,139 total 2,033 5,741 1,094, ,981 1 Provisional data. Source: CNC. 3D digital projectors in 1,191 cinemas At the end of December 2015, 1,191 active cinemas had at least one 3D digital projector in France, 58.6% of the total number of cinemas (58.8% at the end of 2014). 20 mobile units were equipped for this type of projection in 2015 (17 in 2014). 16.1% of cinemas with at least one 3D digital projector in 2015 were multiplexes (15.5% in 2014) and 45.7% were single-screens (45.3% in 2014). Although 94.6% of multiplexes had at least one 3D digital projector in late 2015, the equipment rate reached 74.3% for cinemas with 4 to 7 screens, 64.4% for cinemas with 2 and 3 screens and 46.9% for single-screens. In terms of operating category, 64.7% of cinemas equipped with at least one 3D digital projector came under the small cinema category in 2015 (63.8% in 2014), versus 14.6% for the medium category (15.2% in 2014) and 20.7% for the large category (21.1% in 2014). 82.9% of large cinemas had at least one 3D digital projector in late 2015, versus 74.4% of medium cinemas and 51.3% of small cinemas. 70 results 2015

72 Theaters equipped with 3D digital projectors cinemas share of total % , % , % , % , % trend 2015/ % -0.2pt Source: CNC - Cinégo - Manice. Cinema operators The 11 companies that garnered more than 1% of the annual box-office receipts in 2015 operated 2,424 screens, or 42.2% of the total number of active screens. They accounted for 61.9% of admissions in Les Cinémas Gaumont Pathé operated 772 screens, or 13.4% of the total number of screens. At 8.1% of the total (466 screens), CGR was the second largest operator. In third place, UGC had 400 screens (7.0% of active screens). results

73 Major cinema operators number of screens Cap'Cinéma % 1.6% 1.8% 2.6% 2.8% CGR % 7.7% 7.7% 7.8% 8.1% CinéAlpes % 2.0% 1.7% 1.9% 2.0% Les Cinémas Gaumont Pathé % 13.7% 13.5% 13.8% 13.4% Font - SNES n/a n/a n/a n/a n/a N/a 1.1% 1.1% Kinépolis % 1.6% 1.5% 1.5% 2.1% Megarama (Lemoine) % 1.5% 1.5% 1.6% 2.0% MK % 1.1% 1.2% 1.2% 1.1% SAS Cinéville % 1.7% 1.7% 1.7% 1.8% UGC % 6.9% 7.0% 7.5% 7.0% UGC Méditerranée (Aubert) % 1.0% 0.9% 0.9% 0.8% subtotal 2,101 2,134 2,154 2,358 2, % 38.7% 38.5% 41.8% 42.2% total 5,467 5,508 5,588 5,647 5, % 100% 100% 100% 100% number of cinemas Cap'Cinéma % 0.6% 0.6% 1.1% 1.1% CGR % 2.0% 2.1% 2.2% 2.3% CinéAlpes % 1.4% 0.9% 1.0% 1.1% Les Cinémas Gaumont Pathé % 3.5% 3.5% 3.6% 3.5% Font - SNES n/a n/a n/a n/a n/a n/a 0.6% 0.6% Kinépolis % 0.3% 0.3% 0.3% 0.5% Megarama (Lemoine) % 0.7% 0.8% 0.8% 1.0% MK % 0.5% 0.6% 0.6% 0.6% SAS Cinéville % 0.5% 0.5% 0.6% 0.6% UGC % 1.8% 1.8% 2.1% 1.8% UGC Méditerranée (Aubert) % 0.4% 0.4% 0.4% 0.3% subtotal % 11.9% 11.6% 13.2% 13.5% total 2,033 2,035 2,026 2,020 2, % 100% 100% 100% 100% admissions Cap'Cinéma % 1.3% 1.6% 2.4% 2.4% CGR % 9.0% 8.7% 8.7% 8.7% CinéAlpes % 2.0% 1.9% 2.2% 2.3% Les Cinémas Gaumont Pathé % 24.6% 23.9% 24.2% 23.6% Font - SNES n/a n/a n/a n/a n/a n/a 1.1% 1.1% Kinépolis % 3.0% 2.9% 2.9% 3.5% Megarama (Lemoine) % 1.4% 1.5% 1.6% 1.8% MK % 2.2% 2.3% 2.2% 2.1% SAS Cinéville % 2.1% 2.2% 2.3% 2.4% UGC % 14.7% 14.5% 13.9% 13.1% UGC Méditerranée (Aubert) % 1.0% 1.1% 1.0% 0.9% subtotal % 61.4% 60.7% 62.4% 61.9% total % 100% 100% 100% 100% 1 Operators earning more than 1% of the box-office receipts for Provisional data for 2015 and updated data for Source: CNC. 72 results 2015

74 Definition of a scheduling group When cinema scheduling is not secured directly by owner companies, it is conducted by a scheduling group. It should be noted that certain groups and alliances program the screens they own. In 2015, the nine groups and approved national agreements programmed 2,474 screens, or 43.1% of all screens. In 2014, the nine national scheduling groups provided programming for 43.6% of the base (2,464 screens). Les Cinemas Gaumont Pathé programmed the largest number of screens: 809 in number of screens % of total screens Agora Cinémas CinéDiffusion Les Cinémas Gaumont Pathé GPCI MC Micromegas NOE Cinema n/a n/a n/a n/a n/a n/a UGC VEO Provisional data for 2015 and updated data for Source: CNC. results

75 2.5. Feature film production In 2015 : 300 approved films, +42 films compared with 2014 %%of which 158 wholly French films (+6 films) of which 142 films in international co-production (+36 films) Production financing Methodology The data presented relates to the production of French films approved by the CNC in Films financed by a French producer but which cannot be described as European works as well as films which do not call on any regulated funding nor financial support from the CNC and whose production is not completed are excluded. In 2015, production of feature films reached its highest level with 300 approved films, i.e. 42 more than in Record levels of French film production In 2015, production of feature films reached its highest level with 300 approved films, i.e. 42 more than in The number of French initiative films jumped by 15.3% to 234, which is the highest level since foreign majority films were approved in 2015, or 11 more than in The number of films fully financed by France was 158 in 2015, compared with 152 in Frenchinitiative films approved in 2015 were made as official co-productions with other countries (51 in 2014). In 2015, the proportion of French-initiative films made in French was 95.3% in 2015, compared with 95.1% in French initiative films were shot in a foreign language. Of these films, five were shot in English. 74 results 2015

76 Number of approved films French initiative films of which wholly French Films and coproductions foreign majority films total approved films structure 78.0% 52.7% 25.3% 22.0% 100.0% trend 2015/ % +3.9% +49.0% +20.0% +16.3% Source: CNC. At 1,023.8 million in 2015, investment in French initiative films increased by 28.1% compared with 2014 and returned to a level close to that of 2013 Investment in French initiative films rose by 28.1% At 1,023.8 million in 2015, investment in French initiative films increased by 28.1% compared with 2014 and returned to a level close to that of Between 2006 and 2015, total investments in French initiative films rose an average of 1.9% annually. French investment in French initiative films amounted to million, an increase of 22.6% in However, it remained slightly below the level recorded in 2013 ( million) despite a greater number of films (+26 films). Over ten years, this investment grew by 1.9% annually on average. Foreign investment in French initiative films was twice as high in 2015 as in 2014 at million ( 45.9 million in 2014) for a number of co-productions which rose by 25 titles (+49.0%). Over ten years, such investment grew by an average of 1.4% per year. results

77 Total financing for approved films (in millions of ) French investment French initiative films foreign majority films approved films foreign investment Total French investment foreign investment Total French investme nt foreign investment , , , , , , , , , , , , , , , , , , , , , , , structure 90.2% 9.8% 100.0% 23.2% 76.8% 100.0% 79.3% 20.7% 100.0% trend 2015/ % % +28.1% +5.1% +2.1% +2.8% +21.7% +29.1% +23.1% Source: CNC. Average budget: 4.4 million in 2015 In 2015, the average budget for French initiative films was 4.4 million ( 3.9 million in 2014), an increase of 11.1%. Over ten years, the average budget declined by 17.1%. Half of the French initiative films had budgets lower than 3.1 million, compared with 2.8 million in Total Average budget for French initiative films (in millions of ) 7,0 6,0 5,0 4, % 3,0 2,0 5,3 5,4 6,4 5,1 5,5 5,5 5,1 4,9 3,9 4,4 1,0 0, Source: CNC. Documentaries: record production over the decade At 42 films out of 47 approved (35 films out of 37 in 2014), the number of approved French initiative documentaries was particularly significant in 2015, reaching the highest level of the decade. The average budget for these films was 0.6 million (as in 2014). Decrease in the number of animated films In 2015, three animated films, all French initiative, were approved (compared with nine, of which five French initiative, in 2014). The average budget for these films was 7.3 million ( 6.9 million in 2014). 76 results 2015

78 Number of approved films by genre fiction of which FIF documentaries of which FIF animation of which FIF total of which FIF French initiative films Source: CNC. 142 films were co-produced with 41 foreign investors in 2015, the highest level of the decade. Increase in the number of international co-productions 142 films were co-produced with 41 foreign investors in 2015 (106 with 34 partners in 2014), the highest level of the decade. International co-productions accounted for 47.3% of all approved films in 2015, compared with 41.1% in There were 76 French majority co-produced films in 2015, compared with 51 in At million, total investment in these films soared by 79.4% compared with 2014 for an additional 25 films (+49.0%). This increase is mainly due to the structure of the budgets for these films. In 2015, 22 French majority co-productions had a budget greater than 7 million or more (12 films in 2014) of which nine had a budget greater than 10 million or more (four films in 2014). In 2015, the average budget for French majority co-productions was 4.7 million ( 3.9 million in 2014). With 66 titles in 2015, the number of foreign majority co-productions was up on 2014 (+11 films, i.e %). Total investment in these films amounted to million compared with million in 2014 (+2.8%). The average budget for foreign majority co-productions amounted to 3.0 million in 2015 ( 3.5 million in 2014), the lowest level of the decade. International co-productions in 2015 French majority co-productions foreign majority coproductions number of films French investment (in millions of ) foreign investment (in millions of ) total (in millions of ) total Source: CNC. results

79 56 films co-production agreements in 2015 Number of films co-produced in 2015 Europe Austria 1 Belgium 48 Bosnia-Herzegovina 1 Bulgaria 2 Croatia 2 Czech Republic 3 Denmark 2 Finland 0 Georgia 0 Germany 17 Greece 5 Hungary 0 Iceland 1 Italy 16 Lithuania 0 Luxembourg 3 Netherlands 1 Poland 2 Portugal 6 Romania 5 Russia 0 Serbia 0 Slovakia 1 Slovenia 1 Spain 8 Sweden 1 Switzerland 8 Turkey 1 Ukraine 0 United Kingdom 3 Outside Europe Algeria 2 Argentina 1 Australia 0 Brazil 3 Burkina Faso 2 Cambodia 0 Cameroon 0 Canada 13 Chile 1 China 1 Colombia 1 Côte-d'Ivoire 0 Egypt 1 Guinea 0 India 1 Israel 3 Lebanon 4 Mexico 0 Morocco 5 New Zealand 0 Palestinian Territories 1 Senegal 1 South Africa 0 South Korea 0 Tunisia 0 Venezuela 0 Source : CNC 78 results 2015

80 Main associate countries for French majority co-productions (number of films) Belgium Germany Canada Switzerland Italy Spain Luxembourg Israel Source: CNC. Increasing the diversity of production Film production in 2015 was marked by the rise in the number of French initiative films with high and very low budgets. 51 French initiative films had a budget higher than 7 million in 2015, compared with 36 in In 2015, French initiative production also included 64 films with budgets below 1 million, the highest number for at least 20 years. French initiative films by budget over 10 m m- 10 m m- 7 m m- 5 m m- 4 m m- 2 m under 1 m total Source: CNC. 75 films, i.e. 32.1% of French initiative films approved in 2015, were first films. results

81 First and second films 75 films, i.e. 32.1% of French initiative films approved in 2015, were first films (compared with 60 films or 29.6% in 2014). French initiative production has consisted of at least sixty first films per year over the last five years. The average budget for a first film was 2.4 million in 2015 ( 3.0 million in 2014), compared with 4.4 million for an approved film regardless of its rank. In 2015, 38 French initiative films were second films (35 in 2014), i.e. 16.2% of all approved French initiative films (17.2% in 2014). The average budget for these films was 4.3 million, compared with 2.8 million in First and second films total first films second films % of FIF % of FIF 1 total trend 2015/ % +2.5 pts +8.6% -1.0 pt 1 French initiative films Source: CNC. TV channels were the primary source of financing for French initiative films with 35.5% of the total contributions. Methodology In the following tables, the "French producers' contributions" line corresponds to the portion of financing taken on by production companies to cover film budgets. This includes whatever remains to be financed, either by obtaining additional funding that was not identified at the time of approval, or by keeping production costs below the projected budget. Beyond pre-financing, the "French producers' contributions" line corresponds to the financial risk assumed by the producers regarding future revenue from the various uses of the films. This line can therefore also specifically include the cinema tax credit, any deferred salaries and general expenses or cash contributions. Increased investment by television channels In 2015, TV channels were the primary source of financing for French initiative films with 35.5% of the total contributions amounting to million. Investments by TV channels in the financing of French initiative films (pre-purchases + co-production investment) rose sharply: +31.2% compared with In 2015, French producers' contributions jumped 30.8% to million (30.4% of budgets). In 2015, authorization agreements (for theater releases, video releases and exhibition in foreign markets) for French initiative films increased by 5.8% to million. However, their investments 80 results 2015

82 remained well below the annual average recorded over the past decade ( million). Authorization agreements financed 14.3% of the budgets of French initiative films in 2015, compared with 17.3% in Public funding for French initiative films (automatic support and selective support of the CNC + regional financing) rose by 5.7% to 74.8 million, i.e. 7.3% of funding in CNC financing was stable at 54.8 million in The contribution of local government authorities (including contributions from the CNC) to the financing of French initiative films rose by 26.7% in2015 to 20.0 million, i.e. 1.9% of total budgets. SOFICA companies' share in the financing of French initiative films was 3.4% in SOFICA contributions rose by 11.4% in 2015 to 34.7 million. Financing for French initiative films (%) French financing French producers' contributions SOFICA contributions automatic support from the CNC CNC's selective schemes and regional financing TV channels authorization agreements foreign financing including foreign authorization agreements (foreign share) total French producers' contributions were calculated by subtracting the sum of identified financing from the budget. 2 Automatic support collected by films during the year in which they were approved. 3 Regional financing including CNC contributions. 4 Co-production investment + pre-purchases. 5 Theaters + videos + foreign markets. Updated data. Source: CNC. Financing closely correlated to budgets The financing structure of French initiative films is closely correlated with total budgets. Public financing (automatic support and selective support of the CNC + regional financing) accounted for 15.9% of the total financing for films with budgets under 4 million in 2015 and only 3.4% of financing for films with budgets of 7 million or more. Conversely, authorization agreements accounted for 17.5% of financing for films with budgets of 7 million or more and 9.0% for films with budgets below 4 million. results

83 Financing for French initiative films in 2015, by budget (%) < 1 m 1 m- 4 m 4 m- 7 m >= 7 m French investment French producers' contributions SOFICA contributions automatic support from the CNC CNC's selective schemes and regional financing TV channels authorization agreements foreign financing including foreign authorization agreements (foreign share) total French producers' contributions were calculated by subtracting the sum of identified financing from the budget. 2 Automatic support collected by films during the year in which they were approved. 3 Regional financing including CNC contributions. 4 Co-production investment + pre-purchases. 5 Theaters + videos + foreign markets. Updated data. Source: CNC. total TV channels financed 191 films, i.e. 63.7% of approved films. Free TV channels financed 135 films. Methodology The results only show investments in films approved by the CNC in This time frame is the reason the financing totals submitted by the TV channels to the CSA (the French Television Council) may differ somewhat. Changes are therefore to be considered with the usual precautions, especially with regard to the channels' production obligations. Increased number of films financed by the channels In 2015, of the 300 approved films, TV channels (pay and free) financed a total of 191 films i.e. 63.7% of approved films, including 168 French initiative (143 films in total including 126 French initiative in 2014) i.e. 71.8% of the approved French initiative films. 39 French initiative films were financed by a single TV channel in 2015 (19 in 2014), 42 films by two channels (40 in 2014), 65 films by three channels (48 in 2014), 21 films by four channels (17 in 2014) and one film by five channels (two in 2014). Rise in investments by free TV channels In 2015, of the 300 approved films, free TV channels (Arte, D8, France 2, France 3, France 4, France 5, HD1, M6, NT1, TF1, TMC and W9) financed 135 films in total including 123 French initiative (104 films including 93 French initiative in 2014), the highest level of the decade. 95 French initiative films were financed by a single free TV channel (71 films in 2014), 26 films were financed by two free TV channels (21 films in 2014) and two films by three free TV channels (one film in 2014). Investments in feature film production by free TV channels rose by 39.5% in 2015 to million, the highest level of the decade, for a number of films up 29.8% (+31 films). Their 82 results 2015

84 involvement is significantly higher than the average recorded over the past ten years ( million invested per year on average between 2006 and 2015). The involvement of free TV channels in French initiative films grew by 42.8% ( million in 2015, compared with million in 2014) and decreased by 22.1% in French minority coproductions ( 4.5 million in 2015, compared with 5.7 million in 2014). At the same time, the number of pre-financed French initiative films rose by 32.3% (123 films in 2015, compared with 93 films in 2014), and the number of minority co-productions rose by 9.1% (12 films in 2015, compared with 11 films in 2014). In 2015, six free DTT channels invested in the production of 34 films for 7.1 million, namely D8, France 4, HD1, NT1, TMC and W9. D8 was the most active DTT channel. It pre-purchased 12 films including 11 French initiative for 2.6 million (10 films, all French initiative for 2.4 million in 2014). Free TV channel financing of approved films in TF1 France 2 France 3 M6 Arte DTT 2 total number of films total contributions (in millions of ) pre-purchases (in millions of ) co-productions (in millions of ) average contribution per film (in millions of ) average budget for the films concerned (in millions of ) % of films' budgets films were financed simultaneously by two free TV channels and two films by three free TV channels. ² In 2015, six free DTT channels invested: D8, France 4, HD1, NT1, TMC and W9. Source: CNC. Free TV channel contributions1 number of films of which FIF 2 coproductions (in millions of ) prepurchases (in millions of ) total contributions (in millions of ) average contribution per film (in millions of ) average budget for the films concerned (in millions of ) % of budgets of the films concerned trend 2015/ % +32.3% +36.8% +41.1% +39.5% +7.5% -3.3% +1.8 pts 1 Free TV channels whose investments were registered: Arte, D8, France 2, France 3, France 4, France 5, France O, Gulli, HD1, M6, NRJ12, NT1, TF1, TMC and W9. 2 French initiative films Source: CNC. Pay channels prepurchased 168 films in total. results

85 Methodology Data on pay channels do not include price indexations calculated on theater receipts, or films financed by a pay channel and without regulated financing, which are not included in these statistics. Increased investments by pay channels In 2015, of the 300 approved films, pay channels (Canal+, Ciné+, OCS and TV5 Monde) prepurchased 168 films in total, i.e. 56.0% of approved films, including 152 French initiative, i.e. 65.0% of French initiative films (136 films of which 122 French initiative in 2014). 53 French initiative films were the subject of a pre-purchase by a single pay channel in 2015 (40 films in 2014), 96 films by two pay channels (81 films in 2014) and three films by three pay channels (one in 2014). The total investment volume from pay channels rose 23.5% to million in 2015, with the number of pre-purchased films rising by 23.5% (+32 films). There was a rise in the level of financing of French initiative films by pay channels (23.8% compared with 2014 at million in 2015). It reached 10.6 million for French minority films (+17.2% compared with 2014). Pay channel financing of approved films in Canal+ Ciné+ OCS other pay channels 2 total films of which FIF pre-purchases (in millions of ) average pre-purchase per film (in millions of ) average budget for the films concerned (in millions of ) % of films' budgets films were financed simultaneously by two pay channels, three films by three pay channels. 2 In 2015, TV5 invested in feature film production. 3 French initiative films Source: CNC. 84 results 2015

86 Participation by pay channels 1 films of which FIF 2 prepurchases (in millions of ) average contribution per film (in millions of ) average budget for the films concerned (in millions of ) % of budget of films concerned trend 2015/ % +24.6% +23.5% -0.0% -38.1% pts 1 Pay channels whose investments were registered: 13 ème Rue, Canal+, Canal J, Ciné+, OCS, TPS and TV5. 2 French-initiative films. Source: CNC. Films with no TV channel financing In 2015, 66 French initiative films (77 in 2014) did not receive any financing from a TV channel, or 28.2% of the approved French initiative films (37.9% in 2014). In 2015, almost all of the French initiative films without financing from a TV channel had budgets of less than 2 million and 72.7% had budgets of less than 1 million (75.3% in 2014). With an estimate of 8.9 million l Araignée rouge by Frank Florino was the only film with a budget above 7 million not to be financed by a TV channel. The average budget for French initiative films without financing from a TV channel was 0.8 million ( 0.9 million in 2014), compared with 4.4 million for all French initiative films ( 3.9 million in 2014). The average duration of shooting for a French initiative film was 36 days Methodology Animated films and documentaries were excluded from the analysis concerning shooting time. 6,847 days were spent shooting French initiative fiction films A total of 6,847 days were spent shooting French initiative fiction films, i.e. up 19.7% on 2014 for 26 more films (+16.0%). The average duration of shooting for a French initiative film was 36 days (35 days in 2014). The number of days spent shooting in France was 4,731 in 2015 (+9.8%), compared with 4,359 days in This rise only concerns shootings on location (+478 days, i.e %). In-studio shooting dropped by 106 days (-36.9%). results

87 Number of shooting days by location days spent shooting in France 4,500 4,865 4,996 4,418 4,959 5,002 4,243 4,602 4,359 4,731 of which: outdoors in France 4,100 4,584 4,500 4,200 4,657 4,693 3,979 4,229 4,072 4,550 studios in France days of shooting abroad 1,235 1,761 1,639 1,474 1,962 1,877 1,821 1,497 1,359 2,116 total 5,735 6,626 6,635 5,892 6,921 6,879 6,064 6,099 5,718 6,847 Also see The statistical series on feature film production Production costs Methodology The data below reflects actual production costs, i.e. after shooting ended. It is taken from the production approval. This scope is different from that of the annual review of feature film production, which is based on the year of investment approval. On average, there is an interval of 18 months between these two types of approval. Only 2.4% of the films that received production approval in 2015 received preliminary investment approval in the same year; 42.5% of them received investment approval in 2014, 45.5% in 2013 and 9.6% between 2010 and Decline in spending in 2015 In 2015, 188 French initiative films (all genres) were granted production approval (202 films in 2014, i.e. -6.9%), for a volume of expenditure reaching million, a decrease of 18.2% compared with Lower expenditure abroad In 2015, million of expenditure was made abroad, across all genres, i.e. a decrease of 37.2% compared with films, across all genres, entailed expenditure abroad in 2015 (132 films in 2014). Fiction and animated films accounted for 86.8% and 12.6%, respectively, of total expenditure outside France (91.5% and 4.8% in 2014). Of the 157 fiction films that received production approval in 2015, 101 films involved expenditure abroad. The total volume of expenditure outside France for fiction films dropped by 40.5% in 2015 to million. In 2015, only seven fiction films involved expenditure of more than 5 million outside of France compared with 13 in of the 28 French initiative documentaries approved in 2015 involved expenditure abroad (19 in 2014)%%. In value terms, extra-national expenditure fell by 9.7% compared with 2014, to 0.84million in This is the kickback from the presence ofamazonia (shot in Brazil) among the authorized documentaries in results 2015

88 Production expenditure in 2015 (%) Fiction animation documentary foreign 16,6% foreign 29,8% foreign 8,4% France 83,4% France 70,2% France 91,6% Source: CNC million in cinema tax credit in ten years For the entire period of , 1,080 films were beneficiaries of the film tax credit, across all genres. The total amount of tax credit allocated to these films amounted to million. 104 approved films in 2015 were beneficiaries of the tax credit, for a total of 56.5 million or K on average per film. In 2015, the tax credit represented on average 11.0% of the cost of films which benefited from it. Average cost of production of a fiction film in 2015: 4.9 million In 2015, the main spending structure was relatively stable compared with Salary expenses still made up more than half of the average cost of a film (60.0% in 2015 and 57.9% in 2014). Shooting expenses represented 28.4% of fiction film production costs in 2015 (30.6% in 2014) and technical expenses accounted for 11.6% (11.5% in 2014). The average cost of production for a documentary film in 2015: K 28 French initiative documentaries received production approval in 2015, three films fewer than in The total cost of these films came to 9.9 million, a decrease of 72.5% compared with This decrease is explained by the presence, in 2014, of the documentary Amazonia, which had an exceptionally high cost of 12.7 million. In 2015, pay and salaries accounted for 52.6% of spending%. Shooting costs were the second biggest cost item in 2015, with 24.9% of total expenses for the genre%, ahead of technical expenses to 22.5% of the total in 2015%. Average cost of production of an animated film in 2015: 20.7 million Between 2006 and 2015, 54 French initiative animated films were approved for production. Production expenses for these films totaled million. For the ten years studied, technical equipment accounted for the highest proportion of expenditure (26.4% of the total cost). This item was followed by staff (26.0%). Next were miscellaneous costs (11.9%). Cast costs (voices of characters) amounted to 12.4 million, representing 2.0% of the total production costs for the genre during the period results

89 Distribution of the production costs for fiction films pay and salaries technical shooting total structure 60.0% 11.6% 28.4% 100.0% trend 2015/ % -15.9% -23.5% -17.3% Base: French initiative fiction films. Source: CNC. French short films Average length of short films: 20 minutes In 2014, 271 French short films having obtained a theatrical exhibition license were candidates for the quality award (204 films in 2013) and 90 films received production funding (87 films in 2013). The vast majority of the short films produced were fiction. In 2014, 70.9% of them were fiction (74.9% in 2013). The average length of a short film was 20.5 minutes in 2014 (21.0 minutes in 2013). This aspect is highly dependent on the genre. Animated films had a shorter average length of 8.5 minutes in On average, it took 29 days to shoot a short film in 2014 (as in 2013). This significant period is explained by the fact that the production times for animated films are longer than other genres. Average production cost of a short film: 84.4 K Short films produced in 2014 had a final average cost of 84.4 K (-2.3% compared with 2013). 65.9% of short films cost less than 100 K (61.2% in 2013). The production cost for a short film varies depending on the genre and is related to the production time and the size of the production team. On average, a documentary short film produced in 2014 cost 57.8 K and an experimental film 63.6 K. Production of animated films was on average more expensive than other genres at K in CNC funding was the primary source of financing for short films with 25.6% of financing in Financing from local government authorities covered 18.1% of the production costs for short films in At the same time, TV channels contributed an average of 9.1% of investments in The largest share of private financing was covered by contributions made by producers from their own funds at 25.4% in On average, 9.5% of financing came from foreign contributions in results 2015

90 Short films produced number of films average cost ( K) Reference year: year when the theater exhibition license was obtained. Source: CNC. Also see The statistical series on short films results

91 subscriptions Primary sources of funding for film production in 2015 ( M) television service distributors FTA television channels pre-purchases million 2 pay channels 36.7 million 2 SOFICA TV service tax (TST) million 5 co-productions 55.5 million 2 pre-purchases 98.0 million million 9 film production contributions million foreign coproducers video/vod tax million VoD 6.3 million 20.7 million 8 regional funds publishers cinema admissions tax (TSA) million million 6 video retail million 3 public use & operation agreements million distributors international sellers distributors' remuneration million theaters advertising 7 82 million box office receipts 1,331.3 million consumption 60.8 million 1 advertisers collected funds from financing made in 2015 and January 2016 (cinema and television). SOFICAs must invest 90% of their collected funds into films or television production. 2 Financing for approved films in Retail of physical video media (films), all taxes included. 4 Theater distribution and video release agreements (in France and abroad). 5 Sales tax assessed to television service publishers and distributors. 6 Estimated 100% video on demand sales on non-specialized platforms, all taxes included. 7 Gross advertising investment after rabate. 8 Estimated budget of film support in the agreements concluded between the CNC and the local authorities in CNC's automatic and selective support. 10 Tax on final turnover on video and video on demand, all genres included. 90 results 2015

92 3. TELEVISION results

93 3.1. The television audience In France, the television viewing time rose 1.4 % to 3 hours 44 mins a day in 2015 In 2015, the annual TV viewing time among individuals aged 4 years and over was 3 hours 44 mins a day on average according to Médiamétrie. It increased by 3 minutes (+1.4 %) compared to Television viewing time includes consumption live on a television set, offline via a personal recording (since 2011) and catch-up TV services (since 2014). Consumption on other screens (computer, phone, tablet, etc.) is not included. By age group, the television viewing time declined 2 minutes (-1.7 %) to 1 hour 56 mins among 4-14 year-olds and one minute (-0.5 %) to 3 hours 2 mins for year-olds while it increased by 5 minutes (+1.7 %) to 5 hours 7 mins among those aged 50 and over. By way of comparison, daily TV viewing times averaged 3 hours 14 mins worldwide in 2015 (-3 minutes compared to 2014). In Europe, the daily TV viewing time was 3 hours 37 mins in the United Kingdom (-4 minutes), 3 hours 43 mins in Germany (+2 minutes), 3 hours 57 mins in Spain (-2 minutes) and 4 hours 14 mins in Italy (-8 minutes). 5.9 % of those aged 15 and over watched television every day on a computer, a mobile phone or tablet The television set remains the principal media for viewing television. Other viewing media (computer, phone, tablet, etc.) and consumption methods for programs (including catch-up TV) are developing and represent additional consumption to traditional practices % of those aged 15 and over (-0.8 points in one year) watched live or recorded television every day (including catch-up TV services) on a television set according to the Global TV survey by Médiamétrie (October- December 2015). In parallel, 5.9 % of those aged 15 and over (+0.5 points) watched live or recorded television every day (including catch-up TV services) on another screen (computer, mobile phone, tablet). In total, 3.0 million people watched live or deferred television on a screen other than the television set (+9 % in one year) including 1.8 million on a computer (stable), 0.9 million on a tablet (+36 %) and 0.6 million on a mobile phone (+30 %). Television consumption on a screen other than the television set represented 2.4 % of the total television viewing time of those aged 15 and over and 11.9 % for those aged Daily television viewing time in France year viewing time h h h h h ¹ 3h h h ² 3h h44 minutes ¹ As of 2011, the audience measurement included the viewing of pre-recorded programs via home recording. ² As of September 29, 2014, the audience measurement included viewing on the television set via a catch-up TV service. Source: Médiamétrie-Médiamat, persons aged 4 years and over. 92 results 2015

94 Methodology Breakdown of national channels by group: Groupe France Télévisions: France 2, France 3, France 5, France 4, France Ô; Groupe TF1: TF1, TMC, NT1, HD1 Groupe M6: M6, W9, 6ter Groupe Canal+: Canal+, D8, itele, D17 Groupe NRJ: NRJ12, Chérie 25 Groupe NextradioTV: BFMTV, RMC Découverte. In ten years, the audience share of traditional national channels has slid from 86.1 % to 63.0 % In 2015, the audience share of traditional national channels (TF1, France 2, France 3, Canal+, France 5, M6 and Arte) fell 1.3 points on 2014 to 63.0 % and that of cable and satellite channels shrank by 0.8 points to 9.9 %. In parallel, the audience share of DTT/DTT HD channels rose 2.2 points to 26.7 %, of which +0.5 points to 21.2 % for DTT channels (D8, W9, TMC, NT1, NRJ12, France 4, BFM TV, itele, D17, Gulli, France Ô) and 1.7 to 5.5 % for HD DTT channels (HD1, l Equipe 21, 6ter, Numéro 23, RMC Découverte, Chérie 25). In ten years, the audience share of traditional national channels fell by 23.1 points. In 2015, five national channels had an audience share which was lower than in TF1 (- 1.5 points to 21.4 %) recorded the biggest drop. France 3 (9.2 %), M6 (9.9 %) and Gulli (1.6 %) each lost 0.2 points. The audience share of NRJ12 (1.8 %) decreased by 0.1 points. This means that TF1 and France 3 registered their lowest annual performance since the creation of the Médiamat. M6 achieved its lowest audience share since 1991, Gulli since 2008 and NRJ12 since The audience shares of Canal+ (2.6 %), W9 (2.6 %), TMC (3.1 %) and D17 (1.2 %) were stable. Fifteen channels saw their audience shares rise. 6ter (1.1 %) and Chérie 25 (0.7 %) recorded the strongest growth (+0.4 points each). HD1 (1.2 %) and RMC Découverte (1.3 %) gained 0.3 points each. Six channels achieved 0.2 point growth: France 2 (14.3 %), France 5 (3.4 %), Arte (2.2 %), NT1 (2.0 %), BFM TV (2.2 %) and l Equipe 21 (0.6 %). D8 (3.4 %), France 4 (1.7 %), itele (1.0 %), France Ô (0.6 %) and Numéro 23 (0.6 %) gained 0.1 points each. Arte, D8, BFMTV, itele, France Ô and the six HD DTT channels recorded their best historical performance. The audience share of France 2 rose for the second consecutive year. The audience share of DTT/HD DTT channels was 26.7 % in In 2015, TF1 was the leading national channel ahead of France 2, M6, France 3, France 5, D8, TMC, Canal+, W9, Arte, BFMTV, NT1, NRJ12, France 4, Gulli, RMC Découverte, D17, HD1, 6ter, itele, Chérie 25, France Ô, l Equipe 21 and Numéro 23. By aggregating the audience for national channels by group, France Télévisions (+0.4 points to 29.2 %) was the leading French broadcasting group in 2015 ahead of the TF1 group (-1.0 points to 27.7 %), the M6 group (+0.2 points to 13.6 %), the Canal+ group (+0.2 points to 8.2 %), the NextradioTV group (+0.5 points to 3.5 %) and the NRJ group (+0.3 points to 2.5 %). The audience share of private national channels rose 0.3 points to 58.3 % in The audience share of FTA public channels increased by 0.6 points to 31.4 %. The free channels made up 87.5 % of the television audience (+0.8 points), compared to 12.5 % for the pay channels (including Canal+). results

95 National audience market share of the channels (%) national channels¹ TF France France Canal France M Arte D W TMC NT NRJ France BFMTV itele D Gulli France Ô n/a n/a n/a HD L Equipe ter Numéro RMC Découverte Chérie other channels² total ¹ Including channels which have not subscribed to audience measurement. ² Cable and satellite channels, local and foreign. Source: Médiamétrie-Médiamat, persons aged 4 years and over. National audience market share of the channels (%) 100% 75% 13,9 11,7 12,8 12,5 12,2 12,1 11,9 11,4 11,2 10,3 5,4 2,3 3,8 5,5 10,2 14,2 18,2 20,9 21,4 21,3 20,7 21,2 50% 86,1 82,9 77,0 73,3 69,6 67,0 66,7 65,0 64,3 63,0 25% 0% traditional channels¹ DTT channels² DTT HD channels³ other channels* ¹ TF1, France 2, France 3, Canal+, France 5, M6, Arte. ² D8, W9, TMC, NT1, NRJ12, France 4, BFMTV, itele, D17, Gulli, France Ô. ³ HD1, l Equipe 21, 6ter, Numéro 23, RMC Découverte, Chérie 25. * Including DTT channels in Source: Médiamétrie-Médiamat, persons aged 4 years and over. 94 results 2015

96 Cinema and fiction are over-consumed on television In 2015, fiction constituted the leading genre of programs offered on the national FTA channels (24.6 % of the offering in terms of hourly volume) ahead of current affairs programs (16.4 %) and documentaries (15.9 %). In terms of viewing, Fiction (24.9 % of the viewing time of TV viewers aged 4 years and over) and current affairs programs (16.7 %) were also out in front. Third place was occupied by news programs (10.6 %) whereas they only represented 2.3 % of the total offering of programs (excluding rolling news channels). Films were also viewed proportionally more on television (5.5 % of viewing for 3.8 % of the offering). Children's programs (animation and other programs) and documentaries appeared to be proportionally less viewed compared to their weight in the offering. Documentaries composed 15.9 % of the offering of programs on national FTA channels and 8.8 % of the viewing time of TV viewers. Children's programs represented 3.2 % of viewing for 8.1 % of the offering. Overall, stock programs (fiction, feature films, documentaries and children's programs) constituted 52.4 % of the program offer on the national FTA channels and 42.4 % of the consumption of TV viewers aged 4 and over in Stock programs represented 52.4 % of the program offer on the national FTA channels and 42.4 % of consumption. Offering and television viewing by genre of programs in 2015 (%)¹ offering viewing films fiction game shows variety shows television news current affairs programs documentaries sports children's programs advertising other total ¹ On the national FTA channels (TF1, France 2, France 3, France 5, M6, Arte, D8, W9, TMC, NT1, NRJ12, France 4, D17, Gulli, HD1, 6ter, Numéro 23 and RMC Découverte). Interpretation: in 2015, television news programs represented 2.3 % of the offering of the national FTA channels in terms of hourly volume and 10.6 % of the viewing time by TV viewers on these channels. Source: Médiamétrie-Médiamat, persons aged 4 years and over. Methodology Mediamat Thématik is the audience measurement for television of persons receiving an offering of channels via cable, satellite and ADSL, whether or not these people subscribe to pay channels. Since March 2010, it has replaced the MediaCabSat survey, which measured the television audience in homes subscribing to cable or CanalSat (by satellite and ADSL). The results of the study are published twice a year and cover the following periods: January-June and September-February of the following year. results

97 20.8% of the population subscribes to pay cable and satellite channels In February 2016, the number of people living in a household which subscribes to a pay offer by cable, satellite or ADSL dropped 4.2 % from February 2015 to 12.1 million of which 9.2 million by CanalSat (-1.7 %) and 3.1 million by cable (-9.4 %) % of the population aged 4 years and over was thus subscribed to the cable and satellite pay channels (-0.6 points). In parallel, Médiamétrie counted 28.5 million people receiving television by ADSL (-3.7 %). The television viewing time of people living in a home receiving an extended offering was lower than that for all French people owning a television set. It was 3 hours 40 mins, compared to 3 hours 54 mins for all households with TV, over the period running from September 2015 to February Of those people subscribed to cable or CanalSat, the audience share of the traditional national channels was 57.5 % (-0.1 points in a year), compared to 24.1 % for cable and satellite channels (-2.1 point), 17.5 % for DTT/HD DTT channels (+2.3 points) and 0.9 % for the other channels (-0.1 points). The audience of the cable and satellite channels dropped to its lowest level during the last measurement period. Among all people receiving an extended offer of channels (whether or not subscribed to pay channels), the audience share of traditional national channels amounted to 60.4 % (-1.3 points), versus 26.4 % for DTT/HD DTT channels (+3.0 points), 12.6 % for cable and satellite channels (-1.2 points) and 0.6 % for other channels (-0.5 points). The audience share of cable and satellite channels reached its lowest level (24.1 % among subscribers to a pay offer). Of the 94 cable and satellite channels surveyed by Mediamat Thématik, Disney Channel and TV Breizh shared top place for the channel with the highest audience share (0.6 % each of all the persons receiving a wide offering) ahead of Canal+ Sport, Paris Première and Téva (0.5 % each) over the period running from September 2015 to February Concerning cable and satellite channels dedicated to cinema, the six Ciné+ channels achieved an aggregated audience share of 0.8 %, versus 0.2 % for TCM Cinéma and 0.1 % for Paramount Channel. Audience market share of channels on cable, satellite and ADSL (%) traditional national broadcasters other channels¹ of which traditional cable and satellite Sept Feb Sept Feb Sept Feb Sept Feb Sept Feb Sept Feb Sept Feb Sept Feb Sept Feb Sept Feb ¹ Cable and satellite channels, DTT, local, regional and foreign channels. Source: Médiamétrie-MédiaCabSat up to February 2010, then Médiamat'Thématik from March 2010, persons aged 4 years and above subscribed to a pay offering. total 96 results 2015

98 3.2. Films on television In 2015 : 2,562 different films broadcast on television 5,865 broadcasts of films 32.9% new released films The cinema offering on television Methodology The results are derived from a database which is common to the CSA (French Television Council) and the CNC (National Center for Cinema and the Animated Image) which lists all of the feature films broadcast on FTA public channels (France Télévisions, Arte and LCP-AN), on FTA private channels (TF1, M6 and FTA DTT private channels) and on Canal+. Slight increase in the offering of films on television In 2015, the offering of films on television (national FTA channels and Canal+) rose to 2,562 different films broadcast (+44 titles compared to 2014). 85.6% of these films were shown by national FTA channels, which broadcast 2,192 works or 33 films more than in The FTA public channels (France Télévisions, Arte and LCP-AN) broadcast 909 different films in 2015 (-49 titles compared to 2014) and the FTA private channels (TF1, M6 and the FTA DTT private channels) 1,336 films (89 titles compared to 2014). results

99 Number of films broadcast on television trend 15/14 (%) France France France France France Ô 2 n/a n/a n/a n/a n/a n/a n/a France Télévisions Arte LCP-AN public FTA channels ter Chérie D D L Equipe Gulli HD NRJ NT Numéro RMC Découverte TMC W Private FTA DTT ,061 1,077 1, TF M national FTA private channels ,220 1,247 1, national FTA channels 6 1,465 1,580 1,734 1,831 1,827 1,840 1,837 2,130 2,159 2, Canal total 3 1,922 2,029 2,161 2,230 2,190 2,204 2,200 2,495 2,518 2, Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1, 2013; details of the channel's prior broadcasts are not available. 3 Total excluding repeat counts. 4 France Télévisions Arte LCP-AN (total excluding repeat counts). 5 Private FTA DTT + TF1 + M6 (total excluding repeat counts). 6 public FTA channels + private FTA channels (total excluding repeat counts). N.b.: Films broadcast on different channels in the same year are counted several times. If a film is broadcast on the same channel several times during the same year, it is only counted once. Source: CNC-CSA. 26 new released films more on television in 2015 In total, 32.9% of films shown on television (national FTA channels and Canal+) were new released (32.5% in 2014). All channels combined, the share of new released French films was 43.6%. In 2015, American films represented 29.6% of the offering of new released films on television. The proportion of new released films, in other words, programmed unscrambled for the first time, reached 33.6% on FTA public channels. Only 14.1% of films broadcast by FTA private channels were new released (189 films in 2015). This lower share is due to the FTA DTT private channels that mainly broadcast stock films. On these channels, a film was programmed unscrambled, on average, for the seventh time in 2015 (sixth time in 2014). Canal+ screened 350 new released films in 2015, that is 92.1% of its offering (90.4% in 2014). 32.9% of films broadcast on television were new released 98 results 2015

100 Stability of multicasting The channels as a whole programmed 2,562 different films resulting in 5,865 broadcasts. It should be noted that since 2012, TF1 and M6 have mainly used multicasting at night. The frequency of rebroadcasts remained stable overall. A film was broadcast on average 2.3 times in 2015 (2.3 times in 2014). Channel, LCP-AN, France O, Arte and D17 were the channels which used multicasting the most. Each film was programmed over four times on average on Canal+ and LCP- AN and more than twice on France Ô, Arte and D17. France 2 and France 3 were the only channels not to use multicasting. All channels combined, 46.0% of all channels broadcasts concerned French films (46.8% in 2014). Number of broadcasts of films on television trend 15/14 (%) France France France France France Ô 2 n/a n/a n/a n/a n/a n/a n/a France Télévisions Arte LCP-AN public FTA channels 3 1,122 1,262 1,575 1,526 1,496 1,468 1,392 1,552 1,623 1, ter Chérie D D L Equipe Gulli HD NRJ NT Numéro RMC Découverte TMC W Private FTA DTT ,106 1,165 1,266 1,331 1,336 2,005 1,988 2, TF M national private FTA channels ,160 1,418 1,478 1,548 1,572 1,574 2,259 2,274 2, national FTA channels 5 2,072 2,422 2,993 3,004 3,044 3,040 2,966 3,811 3,897 3, Canal+ 2,079 2,084 1,947 1,902 1,824 1,840 1,929 1,936 1,883 1, total 4,151 4,506 4,940 4,906 4,868 4,880 4,895 5,747 5,780 5, Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1, 2013; details of the channel's prior broadcasts are not available. 3 France Télévisions + Arte + LCP-AN. 4 private FTA DTT + TF1 + M6. 5 public FTA channels + private FTA channels. Source: CNC-CSA. results

101 41.7% of films broadcast in 2015 had already been shown in 2014 Rebroadcasts remain numerous It should be remembered that different channels can broadcast the same film in the same year. All channels combined, 12.3% of films were thus broadcast on two, or even three different channels, several months apart in 2015 (11.9% in 2014). Moreover, increasingly often, the national FTA channels rebroadcast the same films from one year to the next. In fact, 41.7% of films screened by national FTA channels in 2015 had already been broadcast in 2014, the highest proportion since This figure was just 9.6% in This practice is more widespread on FTA DTT private channels. In fact, 50.4% of films programmed by W9 in 2015 had already been broadcast by the channel in After W9, channels rebroadcasting the most films between 2004 and 2015 were D8 (45.9%), NT1 (37.0%) and M6 (32.2%). Proportion of films broadcast two years running on national FTA channels1 (%) ,6 14, , , ,1 31,8 34,2 34, ,0 41, All channels combined except Canal+. Source: CSA-CNC. 42.0% of French films broadcast on television In 2015, for all channels combined (national FTA channels and Canal+), French films represented 42.0% of the film offering on television. This share exceeded 50% on the channels of the France Télévisions group (52.5%) and on LCP-AN (60.0 %). Some FTA DTT private channels offered predominantly American films, particularly L Équipe 21 (63.6%), 6ter (52.7%), HD1 (49.1%), TMC (46.4%) and NRJ12 (46.2%). In total, films from across the Atlantic represented 36.8% of the film offering. Arte offered a TV listing that mainly revolved around non-national European films (35.3%), while these films only represent 17.5% of the offering of other channels on average. 100 results 2015

102 Number of films broadcast on television in 2015 according to country of origin French films American films European films other films no. % no. % no. % no. % total France France France France France Ô France Télévisions Arte LCP-AN public FTA channels ter Chérie D D L Equipe Gulli HD NRJ NT Numéro RMC Découverte TMC W Private FTA DTT ,157 TF M national private FTA channels ,336 national FTA channels ,192 Canal total 1 1, ,562 1 Total excluding repeat counts. 2 France Télévisions Arte LCP-AN (total excluding repeat counts). 3 Private FTA DTT + TF1 + M6 (total excluding repeat counts). 4 public FTA channels + private FTA channels (total excluding repeat counts). N.b.: Films broadcast on different channels in the same year are counted several times. If a film is broadcast on the same channel several times during the same year, it is only counted once. Source: CNC-CSA. Country of origin of films on television On the national FTA channels (without repeat counts of works), 893 French films were broadcast in 2015: that is 11 films more than in French films represented 40.7% of the offering, compared to 40.9% in In 2015, the number of American films also rose by 11 titles compared to It was 822 films (811 in 2014): that is 37.5% of the offering of films on national FTA channels. In 2015, the number and share of European films shown on national FTA channels fell to 398 films or 18.2% (413 films in 2014 or 19.1%). results

103 Number of films broadcast on national FTA channels1 by country of origin (excluding repeat counts) French films American films European films other films no. % no. % no. % no. % total , , , , , , , , , ,192 1 All channels combined except Canal+. 2 Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1, 2013; details of the channel's prior broadcasts are not available. N.b.: Films broadcast on different channels in the same year are counted just once. If a film is broadcast on the same channe l several times during the same year, it is only counted once. Source: CNC-CSA. Development of the film offering in prime time 2015 saw an increase in the film offering in prime time on all channels (FTA national channels and Canal+) to 2,120 broadcasts (+77 broadcasts compared to 2014). This increase was mainly driven by FTA DTT private channels (+101 broadcasts compared to 2014). The film offering in prime time increased by 86 broadcasts on Chérie 25 in 2015, 30 broadcasts on NRJ12, 13 broadcasts on TMC and 10 broadcasts on Numéro 23. The film offering in prime time on France 2 dipped slightly in 2015 to 49 films (1 film less than in 2014). The offering in the Sunday night film slot fell to 48 films in 2015 (50 films in 2014). Since 2007, broadcasting of films on Tuesday evening has been erratic (no films in 2014, 11 films in 2012 and 2 films in 2007). In 2015, only one film was broadcast in this slot. 51.0% of the film offering in prime time on France 2 were French (-5.0 points compared to 2014). American films made up 32.7% of the offering (-1.3 points) saw an increase in the film offering in prime time on France 3. The channel broadcast 65 films in this time slot or 2 films more than in It continued to broadcast a majority of French films (53.8%, compared with 58.7% in 2014). Films were mainly broadcast on Thursday evenings (78.5%, compared with 82.5% in 2014). France 4 programmed 132 films in prime time in 2014, which is three fewer than in Since 2006, the number of prime time broadcasts of films on France 4 has risen by 7.3% annually on average. The channel offers three regular cinema slots: Tuesdays (25.8% of prime time broadcasts in 2015, compared with 5.2% in 2014), Wednesdays (39.4% in 2015, compared with 38.5% in 2014) and Sundays (31.8% in 2015, compared with 44.4% in 2014). In 2015, 49.2% of films broadcast on France 4 in prime time were French and 34.8% American. Arte devotes three regular prime time slots to cinema: Mondays, Wednesdays and Sundays. The channel broadcast 181 films during this time slot in 2015 (184 films in 2014). French films accounted for 36.5% of the offering in prime time, American films 33.1% and non-french European films 25.4%. Arte remains the leading national FTA channel for prime time cinema, both in terms of the volume and the diversity of the offering. 102 results 2015

104 The film offering of the FTA DTT private channels in prime time represented 1,248 broadcasts or 58.9% of all broadcasts in this time slot (1,147 broadcasts and 56.1% in 2014). Of the thirteen FTA DTT private channels, only five increased their programming in prime time in 2014: +5 films on 6ter, +10 films on Numéro 23, +13 films on TMC, +30 films on NRJ12 and +86 films on Chérie 25. In 2015, the FTA DTT private channels offered between one and two regular prime time cinema slots (one slot for D17, Gulli and HD1; two slots for 6ter, D8, NRJ12, NT1, TMC and W9; three slots for Chérie 25 and Numéro 23). 40.8% of the prime time film offering on the FTA DTT private channels were French and 42.9% American. Until 2000, TF1 broadcast a stable number of films in prime time, at more than 100 films a year. Since 2001, its offering has steadily decreased. In 2015, 54 films were scheduled in this time slot, which is 4 more than in In 2015, the broadcast volume during the Sunday evening slot increased slightly with 49 films shown (45 films in 2014). Films broadcast on Tuesday evenings fizzled out completely in 2015, compared with more than 20 films a year prior to The offering of French films in prime time rose to 27 films (24 films in 2014), i.e. 50.0% of the film offering in prime time. The number of American films shown in this time slot also increased (23 films in 2015, compared with 20 in 2014) and represented 42.6% of the film offering in prime time. In 2015, M6 broadcast 31 titles in prime time (-13 broadcasts compared to 2014). Since 2007, the channel's traditional cinema slot - Monday nights - has dwindled to almost nothing (8 films in 2015). In 2015, the channel offered no regular cinema slot. With 13 titles, French films accounted for 41.9% of the M6 offering in prime time (17 titles and 38.6% in 2014). 48.4% of the films programmed from 20:30 to 22:29 were American in 2015 (47.7% in 2014). In 2015, the film offering of Canal+ in prime time shrank slightly compared to 2014 (277 films in 2015, 279 films in 2014). Note that the notion of prime time on the channel is broader than on other channels. It runs from 18:00 to 23:00. Canal+ offered several cinema slots: Tuesdays (25.6%), Wednesdays (24.2%), Fridays (25.3%) and Saturdays under certain conditions (15.9%). In 2015, 47.7% of the films programmed by the channel in this time slot were French (52.7% in 2014) and 40.1% American (38.4% in 2014). results

105 Number of films broadcast on television during primetime trend 15/14 (%) France France France France France Ô 3 n/a n/a n/a n/a n/a n/a n/a France Télévisions Arte LCP-AN public FTA channels ter Chérie D D L Equipe Gulli HD1 n/a n/a n/a n/a n/a n/a NRJ NT Numéro RMC Découverte TMC W Private FTA DTT ,146 1,147 1, TF M national private FTA channels ,231 1,241 1, national FTA channels ,088 1,258 1,303 1,357 1,381 1,277 1,749 1,764 1, Canal+ n/a total n/a 1,382 1,564 1,583 1,611 1,655 1,550 2,028 2,043 2, Showings starting between 20:30 and 22:29 on the national FTA channels and between 18:00 and 23:00 on Canal+. 2 Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1, 2013; details of the channel's prior broadcasts are not available. 4 France Télévisions + Arte + LCP-AN. 5 private FTA DTT + TF1 + M6. 6 public FTA channels + private FTA channels. Source: CNC-CSA. 104 results 2015

106 Ranking of the films shown on national FTA channels between 2006 and title film directors year of production country 2 number of showings year of last showing 1 Crime Busters E.B. Clucher 1977 IT The Five Crazy Boys C. Zidi 1971 FR Miami Supercops B. Corbucci 1985 IT The Crazy Boys Go to War C. Zidi 1974 FR / IT / DE The 11 Commandments F. Desagnat / T. Sorriaux 2003 FR Deux heures moins le quart avant Jésus-Christ J. Yanne 1982 FR (Quarter The Twelve To Two Tasks Before of Asterix Jesus-Christ) R. Goscinny / A. Uderzo 1975 FR Tarzan and the Lost City C. Schenkel 1998 DE Asterix and Cleopatra R. Goscinny / A. Uderzo 1968 FR / BE Asterix versus Caesar G. BRIZZI / P. BRIZZI 1985 FR Asterix Conquers America G. Hahn 1994 DE Asterix the Gaul R. Goscinny / A. Uderzo 1967 FR Les Charlots font l'espagne (The Charlots go to J. Girault 1972 FR Spain) Le Château de ma mère (My Mother's Castle) Y. Robert 1989 FR Fast and Furious: Tokyo Drift J. Lin 2005 US Stadium Nuts C. Zidi 1972 FR La Gloire de mon père (My Father's Glory) Y. Robert 1989 FR Le Grand Bazar (The Big Store) C. Zidi 1973 FR La Guerre des boutons (War of the Buttons) Y. Robert 1961 FR Mais qui a tué Pamela Rose? (But who killed E. Lartigau 2002 FR Pamela The Medallion Rose?) G. Chan 2003 GB Nuit d'ivresse (Drunken night) B. Nauer 1986 FR Trinity Is Still My Name E.B. Clucher 1972 IT / FR They Call Me Trinity E.B. Clucher 1971 IT / FR Pinot simple flic G. Jugnot 1984 FR The Beach D. Boyle 2000 GB / US Top Gun T. Scott 1986 US Yamakasi A. Zeitoun 2000 FR All national FTA channels combined. 2 BE: Belgium, DE: Germany, FR: France, GB: Great Britain, IT: Italy, US: United States. N.b.: Films broadcast on different channels in the same year are counted several times. On Arte and the FTA DTT channels, if a film is broadcast on the same channel several times during the same year, it is only counted once. Source: CNC-CSA. Also see The statistical series on the broadcast of films on television results

107 3.3. Fiction on television The fiction offering on television Methodology The programs at prime time generally start broadcasting between 8.35pm and 9pm. A night of fiction is equivalent to a 90-minute fiction, two 52-minute fictions, three or four 26-minute fictions in prime time. 41,600 hours of fiction throughout the day In 2015, the national FTA channels (TF1, France 2, France 3, France 5, M6, Arte, D8, W9, TMC, NT1, NRJ12, France 4, D17, Gulli, France Ô, HD1, 6ter, Numéro 23 and RMC Découverte) broadcast 41,600 hours of fiction throughout the day according to Médiamétrie. Fiction was the leading genre of programs in terms of the offering and viewing. In hourly volume, fiction represented 24.6 % of the program offering by the national FTA channels and 24.9 % of viewing by TV viewers aged 4 and over. 38.0% of nights were dedicated to fiction on the traditional national channels. In 2015, the traditional national channels (TF1, France 2, France 3, Canal, M6 and Arte) offered 832 nights of fiction, 7 more than in 2014 (+0.8 %). In 2015, 38.0 % of nights were dedicated to fiction on the traditional national channels, compared to 37.7 % in In 2015, the fiction offering increased by 15 nights on M6, 6 nights on France 2 and one night on TF1 compared to Conversely, it decreased by 10 nights on France 3, 3 nights on Arte and 2 nights on Canal+. TF1 remained the leading broadcaster of fiction during prime time. Number of nights dedicated to fiction on the traditional channels TF France France Canal M Arte total Source: CNC Médiamétrie. French fiction occupied 39.8 % of nights dedicated to fiction In 2015, the number of nights dedicated to French fiction was stable compared to 2014 on traditional national channels while the offering of foreign fiction increased by seven nights. The offering fell by two nights for non-french European fiction whereas it rose by three nights for American fiction and six nights for foreign fiction outside Europe and the United States. In 2015, French fiction occupied 39.8 % of nights dedicated to fiction (331 nights), versus 60.2 % for foreign fiction (501 nights) of which 41.7 % for American fiction (347 nights), 14.4 % for non-french European fiction (120 nights) and 4.1 % for foreign fiction from other countries (34 nights). 106 results 2015

108 Breakdown of fiction nights by channel and country of origin in 2015 (%) ,4 14,6 4,8 7,4 4,1 28,6 55,8 20,8 41,7 6,1 51,9 63,0 88,7 14,4 63,9 64,6 21,2 44,2 39,8 22,1 29,6 5,0 6,3 TF1 France 2 France 3 Canal+ M6 Arte total France Europe (outside France) United-States others Source: CNC Médiamétrie. 52-minute fictions made up 70.4 % of fiction nights In 2015, the fiction offering on traditional national channels grew by 41 nights compared to 2014 for the 52-minute format, the short format fiction offering was stable and the fiction offering decreased by 2 nights for the 26-minute format and 32 nights for the 90-minute format. The fiction offering for the 90-minute format thus reached its lowest level. In 2015, 52-minute fictions occupied 70.4 % of total fiction nights (586 nights), versus 27.8 % for 90-minute fictions (231 nights), 1.1 % for 26- minute fictions (9 nights) and 0.7 % for short format fictions (6 nights). Series totaled 87.5% of nights dedicated to fiction. In 2015, the fiction offering devoted to series on the traditional national channels reached a record high (728 nights) while the unit offering was at its lowest level (104 nights). The series offering increased by 37 nights compared to 2014 while unit fictions lost 30 nights. In 2015, series occupied 87.5 % of nights dedicated to fiction on traditional national channels (83.8 % in 2014). In 2015, 136 series were broadcast in prime time on traditional national channels (117 in 2014) including 63 French series (58 in 2014) and 73 foreign series (59 in 2014). The audience for television fiction French fiction returned to the top of the table for best fiction audiences In 2015, the best audience for fiction was achieved by the French unit TV film L'Emprise, broadcast on TF1 (9.8 million viewers). In 2015, fiction registered 33 of the 100 best television audiences (18 French and 15 American fictions) all programs taken together throughout the day, versus 21 in 2014 (5 French fictions and 16 American fictions). This means that French fictions moved 13 places up the rankings year on year. They outnumbered American fictions whose presence in the rankings declined for the fourth consecutive year. In 2015 and for the second consecutive year, French fiction represented more than half of the 100 best fiction audiences throughout the day, or 59 fictions out of 100. results

109 The audience for French fiction was higher than the audience for foreign fiction on the six traditional national channels. In 2015, the average audience share for French fiction in prime time for those aged 4 and over stood at 24.0 % on TF1 (versus 21.7 % for foreign fiction), 16.6 % on France 2 (versus 15.3 %), 13.7 % on France 3 (versus 12.6 %), 11.6 % for M6 (versus 11.3 %), 2.9 % on Arte (versus 2.8 %) and 2.2 % on Canal+ (versus 1.7 %). The best annual audiences for television fiction ( ) year title channel country origin of TV viewers (millions) audience market share (%) 2006 Marie Besnard, l'empoisonneuse TF1 France ,007 Joséphine, ange gardien TF1 France CSI: Miami TF1 United States Dr. House TF1 United States The Mentalist TF1 United States The Mentalist TF1 United States The Mentalist TF1 United States The Mentalist TF1 United States The Mentalist TF1 United States L'Emprise TF1 France Source: CNC Médiamat - Médiamétrie (aged 4 and over). 108 results 2015

110 The best audiences for television fiction by channel in 2015 channel title date of broadcast country of origin viewers (millions) share of audience (%) TF1 L'Emprise 01/26/15 France France 2 Castle 1/19/2015 United France 3 Plus belle la vie 2/25/2015 States France France 5 Marie et Madeleine 12/14/15 France M6 Scorpion 03/05/15 United Arte The Sandhamn Murders 01/29/15 States Sweden D8 The Code 11/30/2015 United W9 Marvel's Agents of SHIELD 03/18/2015 States United TMC CSI: NY 3/15/2015 States United NT1 Ice 12/23/2015 States United NRJ12 Sauveur Giordano 1/2/2015 States France France 4 Cold Case 10/01/2015 United D17 The President's Man: A Line In The Sand. 12/23/2015 States United Gulli Chica Vampiro 12/7/2015 States Colombia France Ô Passeur d enfants 01/22/2015 France HD1 Section de recherches 04/01/2015 France ter Once Upon a Time 02/03/2015 United Numéro 23 Early Edition 12/27/2015 States United Chérie 25¹ Diane, femme flic 12/01/2015 States France ¹ Audiences for the channel available from August 31, Source: CNC Médiamat - Médiamétrie (aged 4 and over). results

111 3.4. Support for television production In 2015 : 4,943 of supported hours (+2.4% compared to 2014) Budgets: 1.4 billion euros (-3.5% compared to 2014) CNC contributions: million (+0.5% compared to 2014) Broadcasters' contributions: million (-1.2% compared to 2014) Methodology The results related to production in 2015 concern the television works that obtained financial support from the CNC in This data is different to that of the CSA Television Council (which concerns obligations of the channels) for two main reasons: - the CSA Television Council statistics cover "television works", a broader concept than just the CNCsupported programs; - the dates for taking into account a production are not the same: grant request submission date for the CNC, shooting start date for the CSA Television Council. A supported production volume up 2.4% In 2015, the CNC supported the production of 4,943 hours of French television programs (+2.4% compared to 2014). The budgets of CNC-supported television programs dropped by 3.5% to 1,386.3 million. Broadcasters' investments dropped 1.2 % to million. The CNC's production support (including additional support) remained stable at million (+0.5%). The national FTA channels contributed 80.4% of total investments of the television channels, compared to 85.5% in Of these broadcasters, the FTA DTT private channels (not including traditional FTA) occupied a still limited position in They represented 4.1% of broadcasters' overall contributions and were behind 9.4% of the supported hours (2.9% and 8.8% respectively in 2014). The pay channels (Canal+ and cable and satellite channels) ordered 21.8% of assisted hours, amounting to 16.5% of all broadcasters' contributions in 2015 (19.5% and 11.3% in 2014, respectively). Except for live shows (23.3 % of all distributors' investments), local channels occupied a secondary role in the financing of television production aided by the CNC with a contribution amounting to 1.5% of all broadcasters' contributions. In 2015, online services also represented 1.5% of total broadcasters' contributions in aided television production and 17.6% of those invested in the television adaptations of live shows. Funding from foreign investors amounted to 90.9 million, down 19.4%. It fell for drama (-56.7%) and animation (-4.4%) and rose for documentaries (+28.6%). In 2015, the CNC supported the production of 4,943 hours of French television programs (+2.4% compared to 2014) for a total investment of 1.4 billion euros (- 3,5%) 110 results 2015

112 Aided television production trend 15/14 duration (hours) 4,850 5,151 5,427 4,828 4, % budget (millions of ) 1, , , , , % broadcasters (millions of ) % CNC funding 1 (millions of ) % foreign contributions (millions of ) % 1 Including additional grant for "AV support fund". % Source: CNC. Drama Stable volume and budgets down in drama In 2015, the volume of CNC-supported drama remained stable at 743 hours (-0.7%). Drama represented 15.0% of the total duration of all CNC-supported television programs in 2015, compared to 15.5% in Drama budgets declined by 10.9% in 2015 to million. The average hourly cost of supported drama fell 10.3% to K. In 2015, broadcasters' contributions to the production of drama programs stood at million, a decline of 4.4% compared to Their share in the financing of the genre fell 4.9 points to 72.4%. The hourly contribution of broadcasters fell by 3.8% between 2014 and 2015 to K. CNC contributions (including additional support) dropped from 8.1% to 66.2 million in However, the share of CNC contributions (including additional support) in the financing of drama was stable at 10.4% (+0.4 point). In 2015, foreign financing (co-production investments and presales combined) reached 19.6 million (-56.7% compared to 2014). In 2015, two series (Versailles - Season 2 and Jour polaire) each benefited from foreign support in excess of 4 million, compared with four series in However, the total number of hours of programs receiving foreign financing rose by 14.2%: 333 hours of drama were financed with foreign investors in 2015, i.e. 44.8% of the hourly total volume for drama (292 hours or 39.0% in 2014). In 2015, all foreign contributions concerned French majority works. In 2015, foreign contributions covered 3.1% of the overall funding of drama production supported by the CNC (6.3% in 2014). In 2015, the share of broadcasters in the financing of drama attained 72.4% of the budget. The CNC contribution was stable at 10.4% of budgets. Key figures for drama trend 15/14 hourly volume (hours) % budget (millions of ) % hourly cost ( K/hour) % broadcasters' contributions (millions of % ) CNC contributions¹ (millions of ) % foreign contributions (millions of ) % ¹ Including additional support. % Source: CNC. results

113 Trend in drama formats 1 hours hourly cost (thousands of ) Financing of drama (millions of ) French financing French producers presales in France broadcasters SOFICA CNC CNC additional support¹ other foreign financing foreign co-productions presales abroad² total financing ¹ Support granted after the first decision. ² Including guaranteed minimums. Source: CNC Increase of 52 TV series, drop in short format series In 2015, 52 minutes was the leading format for drama series (6.8% of supported hours), ahead of 26 minutes (23.9%), 90 minutes (22.2%), the short format (15.4%) and new media drama (1.6%). Volumes of 52 minutes (+9.4%) and new media drama (+48.9%) series rose while the volume of 26 minutes series was stable and the volumes of 90 minutes (-5.2%) and short format (-16.6%) series were down short format units minute units minute units , , , , ,372.4 TV series and serials collections , , , , , minute series , , , , , minute short series , minute series , , , , , minute short series , , , , minute series short format series new media drama total Source: CNC 1 One unit is a single drama or a drama composed, for the needs of television broadcast, of two parts, following a main story arc. The short format units are unit programs of a duration that is generally less than 30 minutes. A series is a succession of dramas composed of common elements (such as the characters and décor). A serial is a series in which the story unfolds episode by episode. The episodes in short format series have a duration of less than 15 minutes. A short series is defined as a series comprising at least three episodes and that will not exceed the predetermined number of episodes. A collection is a set of dramas revolving around the same subject, by the same scriptwriter, or with the same artis tic ambition, which do not include recurring elements. Source: CNC. 112 results 2015

114 Contributions from national FTA channels down In 2015, the volume of drama initiated by the national FTA channels dropped 4.1% to 644 hours. Their total investment dropped 12.7% to million. On average, national FTA channels covered 74.6% of the budgets for the dramas they initiated (62.8% in 2014). Their average hourly contribution as first broadcasters was K ( K in 2014). In 2015, these channels were responsible for 86.6% of the total hourly volume of drama ordered by all broadcasters (89.7% in 2014) and contributed 82.3% of their total investments in the genre (90.0% in 2014). Documentaries Decline in the volume of documentaries, rise in budgets For the second consecutive year, the volume of documentaries declined, returning to its 2010 level. With a total of 2,480 supported hours, the number of hours of supported documentaries dropped 4.3% compared to This decline is explained by the fall in orders from local channels (-102 hours). In 2015, total budgets for documentary programs rose 2.6% to million. The average hourly cost rose by 7.2% to K. Between 2006 and 2015, the average hourly cost of documentary programs was 156,1 K. It remained stable for ten years (+0.3% a year on average). In 2015, documentaries represented 50.2 % of total hours of CNC-supported television programs, compared to 53.6% in 2014 and 47.4% on average since Broadcasters' commitments rose 2.7% to million and covered more than half (51.3%) of total budgets for the genre. The average hourly broadcasters' contribution was 84.6 K in 2015 (+7.2% compared to 2014). Between 2006 and 2015, the broadcasters' hourly contribution increased 1.4% a year on average. In 2015, the contributions from French producers remained stable (+0.6%) at 61.3 million. Since 2006, their contributions have increased 1.1% a year on average. The grants awarded by the CNC (including additional support) to French documentary producers amounted to 82.1 million in 2015 (+2.0% compared to 2014). Foreign financing in French documentary production jumped 28.6% to 19.4 million, of which 6.4 million for presales (+22.7%) and 13.0 million for co-production investments (+31.8%). 371 hours of documentary were for French majority co-productions in 2015, with total foreign contributions of 12.4 million. In 2015, the share of foreign contributions in the total budget for documentaries was 4.7% of total budgets, compared to 3.8% in In 2015, the broadcasters' share of documentary funding amounted to 51.3% of budgets. The CNC contribution rose and covered 20.1% of budgets. Key figures for documentaries trend 15/14 hourly volume (hours) 2,665 2,921 3,092 2,590 2, % budget (millions of ) % hourly cost ( K/hour) % broadcasters' contributions (millions of ) CNC contributions¹ (millions of ) foreign contributions (millions of ) ¹ Including additional support. Source: CNC. +2.7% +2.0% +28.6% results

115 Financing of documentaries (millions of ) French financing French producers presales in France broadcasters SOFICA CNC CNC additional support¹ other foreign financing foreign co-productions presales abroad total financing ¹ Support granted after the first decision. Source: CNC. Social documentaries remained predominant Despite the volume of orders remaining stable between 2014 and 2015 (-0.3%), social documentaries remained prominent with 52.7% of the total volume for the genre in History programs were the second most ordered genre. Their share was stable at 10.5% in 2015, for a number of hours down compared to 2014 (260 hours, compared to 275 in 2014). In 2015, orders for documentaries on the environment and nature fell 22.8% to 182 hours, compared to 236 in Broadcasters participated in financing 87 hours of documentaries about arts in 2015, compared to 125 hours in Live show programs (music, circus, dance and theater) represented 2.7% of the hours of supported documentaries in 2015, compared to 3.8% in Of all the hours of live show documentaries, 86.9% were dedicated to music (2.4% of the total volume of supported documentaries). Increase in the volume and contributions of national FTA channels In 2015, the level of orders from national FTA channels in the documentary genre increased by 1.8% to stand at 1,659 hours. This rise coincided with an increase in the orders of FTA private channels (+22 hours as first broadcasters) and those from national FTA public channels (+8 hours). National FTA channels invested million in the production of television documentaries in 2015 (+6.3% compared to 2014). Animation Increased volume and budgets for animation In 2015, the animation production volume increased by 9.7% compared to 2014, to 285 hours. Between 2006 and 2015, the average annual animation production volume was 316 hours. Animation represented 5.8% of total hours of programs supported by the CNC in 2015, compared to 5.4% in Animation production generally moves in two-yearly or three-yearly cycles. In 2015, animated program budgets rose by 1.5% compared to 2014, to million. The hourly cost of animation decreased 7.5% to K. French financing for the production of animation works rose 3.6% to million in These financings represented 75.9% of budgets for CNC-supported animated programs (74.4% in 2014). 114 results 2015

116 The broadcasters' contribution fell by 7.2% to 43.3 million. This was its lowest level since Their share in the financing of animation programs amounted to 24.0%. The contributions of French producers rose by 8.2% to 38.4 million, that is 21.1% of the total budget amount (19.9% in 2014). The CNC contribution (including additional support) for animation programs rose 11.2% to 37.1 million. In total, it covered 20.5% of budgets in 2015 (18.7% in 2014). Foreign contributions made up 24.1% of the financing for animated programs in 2015, compared to 25.6% in Foreign funding decreased by 4.4% to 43.7 million in 2015: coproduction contributions rose 5.2% to 25.7 million while foreign presales fell by 15.3% to 18.0 million. In 2015, 230 hours of animation received foreign financing (co-production and/or presale), in other words 80.7% of the total volume produced (190 hours, that is 73.1% of the total volume in 2014). In 2015, 174 hours of French majority animation were initiated with a total foreign financing of 18.8 million, of which 9.9 million of co-production investments and 8.9 million in presales (170 hours with a foreign contribution of 31.4 million in 2014). At the same time, 56 hours of French minority works were produced in 2015, financed by a total foreign contribution of 24.9 million, of which 15.8 million of co-production investments and 9.1 million in presales (20 hours with a foreign contribution of 14.2 million in 2014). In 2015, the share of French investments in the financing of animation programs rose and attained 75.9% of budgets. The CNC contribution increased and covered 20.5% of budgets. Key figures for animation trend 15/14 hourly volume (hours) % budget (millions of ) % hourly cost ( K/hour) % broadcasters' contributions % (millions CNC contributions¹ of ) (millions % of foreign ) contributions %% ¹ (millions Including of additional ) support. Source: CNC Fall in investments by national FTA channels In 2015, the volume of animation initiated by national FTA channels dropped 8.8% compared to 2014 to 204 hours. Their total investment dropped 20.9% to 31.3 million. The hourly contribution of all national FTA channels (-12.9%) and the hourly cost of the programs they financed as first broadcasters (-5.3%) fell in National FTA channels represented 72.1% of investments by channels in the production of animation (84.6% in 2014) and initiated 71.3% of produced hours (85.8% in 2014). Television adaptation of live shows Higher volumes and budgets for television adaptations of live shows In 2015, the number of supported hours of television adaptations of live shows increased 10.8% (+106 hours compared to 2014) to reach 1,082 hours, which is the highest level ever attained. The budgets of these works rose 4.9% compared to 2014 to reach million: that is a 5.4% lower average hourly cost at K. Live show programs represented 21.9% of the total supported hours of programs in 2015 and captured 16.8% of support from the CNC. results

117 In 2015, the participation of broadcasters in the production of television adaptations of live shows increased 8.3% to 46.0 million. Their hourly contribution dropped 2.3% to 42.5 K. Broadcasters covered 36.7% of the production budget for the genre (35.5% in 2014). The grants awarded by the CNC (including additional support) increased 2.2% to 36.2 million in Their contribution to the financing of television adaptations of live shows decreased and covered 28.9% of budgets for the genre. In 2015, foreign contributions rose 19.6% to 8.0 million. Their share in the total budget rose to 6.4% of the total financing of television adaptations of live shows (5.6% in 2014). Co-production investments increased to 7.0 million. They were mainly financed by foreign producers of the show and the cinemas screening the show abroad. Presales abroad rose 26.9% to 1.0 million. In total, 224 hours of live shows received foreign financing in 2015 (174 hours in 2014), of which 204 hours of majority co-productions (167 hours in 2014) and 20 hours of minority co-productions (8 hours in 2014). Majority co-productions received 5.5 million of foreign financing ( 5.3 million in 2014) and minority co-productions 2.6 million ( 1.5 million in 2014). In 2015, the share of broadcasters in the financing of television adaptations of live shows rose and reached 36.7% of budgets. The CNC contribution covered 28.9% of budgets. Key figures for live shows 116 results trend 15/14 hourly volume (hours) , % budget (millions of ) % hourly cost ( K/hour) % broadcasters' contributions (millions of ) % CNC contributions (millions of ) % foreign contributions (millions of ) % ¹ Including additional support. Source: CNC. Financing of live shows (millions of ) French financing French producers presales in France broadcasters SOFICA CNC CNC additional support other foreign financing foreign co-productions presales abroad total financing ¹ Support granted after the first decision. Source: CNC. Music shows dominated the genre In 2015, the increased volume of production of television programs adapting live shows mainly concerned two genres: music (+142 hours), particularly classical music (+73 hours). The recordings of musical performances represented the majority of supported hours. At 80.8% of the volume in 2015, this share

118 increased compared to 2014 (+5.8 points). Classical music represented 22.5% of supported hours. Followed by variety/rock (20.5%), opera (13.8%) and jazz (10.5%). Other genres remained more marginal, such as world/traditional music (6.5%) or hip hop/rap/electro (5.8%). Circuses remained the most expensive live show genre in 2015 at K per hour of program (-21.3%), ahead of opera at K (-17.4%) and theatre at K (+61.8%). Decreased volume and increased investment by national FTA channels In 2015, national FTA channels reduced their volume of orders of television adaptations of live shows (- 10.4% to 383 hours). However, their investments in the genre increased to 24.0 million (+3.8%). The cost of producing one hour of a live show initiated by the national FTA channels was K ( K in 2014). The channels covered 36.8% of the production budgets of supported live show programs which they financed as first broadcasters (31.7% in 2014). Cultural interest magazine programs Increased volume and budgets for cultural interest magazine programs The CNC provides exclusively selective support to cultural interest magazine programs, after consulting the committee responsible. In 2015, the supported production volume increased significantly to 353 hours (+39.1% compared to 2014). 37 magazine programs received financial support (26 projects and 254 hours in 2014) for an average hourly CNC contribution down 7.6% to 9.7 K ( 10.5 K in 2014). The average hourly CNC aid recorded in 2015 was slightly lower than that recorded over the last ten years ( 9.8 K on average per year). The total amount of budgets for cultural interest magazines supported reached 32.3 million in 2015, up 40.3% on The broadcasters' contribution rose in 2015 to 22.4 million (+40.3 % compared to 2014). They represented 69.4% of total financing of cultural interest magazine programs in 2015 (69.5% in 2014). Broadcasters contributed, on average, 63.6 K per hour of program in 2015 ( 63.1 K in 2014). The hourly contribution of broadcasters reached its highest level of the decade after 2006 ( 65.1 K). At 5.0 million in 2015, contributions from French producers rose 30.2% compared to % of budgets were provided by producers in 2015, compared with 16.5% in Grants awarded by the CNC to cultural interest magazine programs increased by 28.6% to 3.4 million, or 10.6% of budgets in 2015 (11.5% in 2014). Key figures for cultural interest magazine programs trend 15/14 hourly volume (hours) % budget (millions of ) % hourly cost ( K/hour) % broadcasters' contributions (millions of ) % CNC contributions¹ (millions of ) % foreign contributions (millions of ) ,283.7% ¹ Including additional support. Source: CNC. results

119 Financing of cultural interest magazine programs (millions of ) French financing French producers presales in France broadcasters SOFICA CNC CNC additional support Other foreign financing foreign co-productions presales abroad total financing ¹ Support granted after the first decision. Source: CNC Also see The series on audiovisual production supported by the CNC 118 results 2015

120 Main cash flows for aided television production in 2015 (millions of ) public M 5 VoD platforms M 4 detail video business FTA public channels contribution to public television services 2,582.4 M FTA private channels television service distributors subscriptions subscriptions pay channels (Canal+ and cable and satellite channels) local television channels viewing TV advertising 3,242 M advertisers 60.8 M online services collected funds from financing made in 2015 and January 2016 (cinema and television). SOFICAs must invest 90% of their collected funds in television or feature film production. 2 Estimated budget of film support in the agreements concluded between the CNC and the local government authorities in Full support of CNC: production support + development support (including additional support and "AV support fund" grants). 4 Retail sales of programs other than film (incl. tax). 5 Estimated 100% of turnover not including taxes in VoD on non-specialized platforms. 6 Sales tax assessed to television service publishers and distributors. 7 Tax on final turnover on video and VoD, all genres included. video tax / VoD M tax on television services (TST) support M³ M M M SUPPORTED TELEVISION PRODUCTION 21.9 M ² 7.1 M 90.9 M 11.9 M 5.1 M 12.1 M Sources: Television works supported by CNC (drama, documentary, animation, live show, cultural interest magazine). French advertising market in IREP. CNC revenues in CNC-GfK video barometer. GfK-NPA Conseil VoD barometer. GfK SEVN regional funds foreign contributions SOFICA results

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122 3.5. Catch-up TV In 2015 : 5.1 billionvideos viewed Over 17,000 hours of programs available per month on average Advertising revenue for catch-up TV estimated at 90 million 73.4% of websurfers watch catch-up TV The catch-up TV offering Over 100 catch-up TV channels Catch-up TV (also referred to as TV on demand) covers all of the services used to view or view again programs after they have been broadcast on a television channel, usually for a limited time, either for free or at no additional cost with a subscription. Catch-up TV offerings are available on any screen (computer, TV and mobile screens - tablet, phone, etc.) but the services differ, on television sets and on mobile screens, depending on the telecom operators, equipment manufacturers and platforms for downloading applications. On a computer, catchup TV services are accessed via dedicated websites published by the channels. On a television set, catch-up TV offers can be accessed in various ways: via Internet Access Providers, satellite television services, connected TV services, video games consoles, or via external boxes or devices offering broadcast content. On mobile devices, catch-up TV is available via operator applications for TV plan subscribers, and via applications developed by the channels, downloadable from app stores. Certain catch-up TV services are also available via video sharing sites across all devices. Catch-up TV offers consist of services that are freely available on the one hand, and optional services reserved for channel subscribers on the other. In March 2016, over 100 channels, including all the national FTA channels, began offering their catch-up TV programs on at least one screen. Methodology The share of programs available via catch-up TV on the Internet is calculated as an hourly volume by for the CNC. The analysis is carried out every six months during the same week (May for May 2015 and November for November 2015). All programs broadcast during these weeks between 5 pm and midnight are monitored, to determine whether they are available via catch-up TV on the Internet. results

123 60% of programs broadcast by French national channels are available on catch-up TV In November 2015, 60% of the programs broadcast between 5 pm and midnight on national FTA channels (traditional FTA, DTT or DTT HD) were available via catch-up TV on the Internet. This percentage has increased by two points in one year. It stood at 92% for traditional national channels (stable compared to November 2014), against 54% for DTT channels (+5 points) and 36% for DTT HD channels (-1 point). The share of flux programs (entertainment, current affairs programs, news, sport) available on catch-up TV is larger than that of stock programs (animation, documentaries, fiction, films), whether on traditional channels, DTT or DTT HD channels. In November 2015, 79% of flux programs broadcast between 5 pm and midnight on all national channels were available via catch-up TV on the Internet (+1 point year on year), versus 44% for stock programs (+4 points). On the traditional channels, 98% of flux programs were available, versus 82% for stock programs. On the DTT channels, 79% of flux programs were available, versus 39% for stock programs. On the DTT HD channels, 45% of flux programs were available, versus 30% for stock programs. Share of programs available via catch-up TV on the Internet¹ (%) traditional FTA DTT channels DTT HD channels total May Nov May Nov May Nov ¹ Programs broadcast between 5 pm and midnight. Source: Methodology The study of the catch-up TV offering, which has been performed by for the CNC since October 2010, presents the 2015 program offering of 23 free national FTA channels (TF1, France 2, France 3, Canal+ unscrambled, France 5, M6, Arte, D8, W9, TMC, NT1, NRJ12, LCP-Assemblée Nationale, Public Sénat, France 4, D17, Gulli, France Ô, HD1, 6ter, Numéro 23, RMC Découverte and Chérie 25) available on catch-up TV on the Internet, in number of videos and hourly volume. 17,109 hours of programs available each month In 2015, an average 17,109 hours of programs broadcast throughout the day on national FTA channels were available via catch-up TV on the Internet each month. The catch-up TV offering rose 11.7% compared to It was up 8.6% on the DTT HD channels, 11.4% on DTT channels and 12.4% on the traditional channels. On average, traditional channels offered 8,277 hours of programs each month, compared with 8,007 hours for the DTT channels and 826 hours for DTT HD channels. In 2015, 32.0% of the supply of catch-up TV was available from 0 to 7 days (35.2% in 2014). 64.0% of programs were available for more than 30 days (61% in 2014). The share of programs available up to 7 days after broadcast decreased by three points compared to results 2015

124 Selection of catch-up TV by length of availability (%) days days days more than days total Source: In 2015, the share of stock programs accounted for 16.5% of the catch-up TV online offering (vs. 17.2% in 2014), where 7.9% were fictions (vs. 8.0% in 2014), 4.5% were documentaries (vs. 4.6% in 2014) and 4.0% were animated programs (vs. 4.4% in 2014). Flux programs (entertainment, current affairs programs, news and sport) represented the majority of the offering (83.5% of hourly volume in 2015). In 2015, the main catch-up TV offerings on the Internet came from France 4 (238 hours per month on average), Gulli (120 hours) and France 3 (84 hours) for animation, from Arte (220 hours), France 5 (151 hours) and RMC Découverte (71 hours) for documentaries and from TF1 (198 hours), M6 (159 hours) and France Ô (155 hours) for TV drama. In 2015, French programs accounted for 44.0% of the supply of catch-up TV fiction available on the Internet (+2.8 points compared to 2014), against 33.8% for American fiction (+1 point), 14.1% for non-french European fiction (+1.7 point) and 8.1% for fiction from other countries (-5.5 points). Average monthly selection of catch-up TV on the Internet (hours) % 13, % 14, % +11.7% 15,314 17, , Source: Catch-up TV consumption and audience Methodology The analysis of consumption, in number of videos viewed, has been conducted since January 2011 at the CNC's request by NPA Conseil and GfK, in association with Canal+ Régie, France Télévisions Publicité, Lagardère Publicité, M6 Publicité Digital, TF1 Publicité Digital and TMC Régie based on data provided by Médiamétrie estat streaming, Nedstats, Comscore, Omniture, Flurry Analytics, A&T Internet, and on operators' data. In 2011, the barometer comprised results from 14 channels, including the six traditional FTA channels: Canal+, itele for the Canal+ group; 1ère, France 2, France 3, France 4, France 5, France Ô for the France Télévisions group; M6, W9, Paris Première, Teva for the M6 group; TF1, LCI for the TF1 group. The consumption analysis was complemented with results from results

125 channels TMC and NT1 as of January 2012, from channels D8 and D17 as of October 2012, and from channels Gulli, HD1 and 6ter as of January Since then, the barometer has therefore comprised the results of 21 channels. 5.1 billion videos viewed via catch-up TV in 2015 Catch-up TV consumption grew substantially. In 2015, 5.1 billion videos were viewed via catch-up TV, versus 3.7 billion in 2014, representing an increase of 36.4% in one year. In 2015, million videos were viewed on average each month on catch-up TV (310.8 million in 2014). A new consumption record was reached in October with million videos viewed. Mirroring consumption of live television, the smallest audience for catch-up TV was observed in August (372.1 million videos viewed). In 2015, 13.9 million videos were viewed on average each day via catch-up TV (vs million in 2014). Consumption of catch-up TV¹ (in millions of videos viewed) % 5, % +39.7% -1.9% 3, , , , ¹ The scope of the study was widened in January 2012 with TMC and NT1, again in October 2012 with D8 and D17, and again in January 2014 with Gulli, HD1 and 6ter. Source: NPA - GfK - Canal+ Régie - France Télévisions Publicité - M6 Publicité Digital - TF1 Publicité Digital - TMC Régie - Lagardère Publicité. Television became the leading medium in terms of consumption volume Consumption of online television which includes catch-up TV and bonuses, and consumption of live television on devices other than the television set, increased across all media. In 2015, 2.05 billion videos were viewed on a television screen (+26.2%), 1.95 billion on a computer (+12.5% compared to 2014), and 1.85 billion on a mobile device (+92.0%), including million on a mobile phone (+102.2%) and million on a tablet (+82.1%). In 2015, the television set therefore supplanted the computer as the leading medium for online television consumption. Since August 2015, the number of videos viewed on mobile devices exceeded the consumption volume on television sets. In 2015, the TV screen generated 35.0% of the audience (-2.5 points compared to 2014), the computer represented 33.3% of consumption (-6.8 points) and mobile devices totaled 31.7% of videos viewed (+9.3 points) of which 16.4% for the mobile phone (+5.4 points) and 15.3% for the tablet (+3.9 points). 124 results 2015

126 Online television viewing by device 1 (%) computer television mobile phone and tablet ¹ In number of videos viewed. ¹ The scope of the study was widened in January 2012 with TMC and NT1, again in October 2012 with D8 and D17, and again in January 2014 with Gulli, HD1 and 6ter. Source: NPA - GfK - Canal+ Régie - France Télévisions Publicité - M6 Publicité Digital - TF1 Publicité Digital - TMC Régie - Lagardère Publicité. Fiction was the most consumed genre In 2015, stock programs (fiction, cinema, documentary and children's programs) made up 51.0 % of online television consumption, compared with 42.3 % in In 2015, fiction was the most consumed genre (27.9 % of videos viewed) ahead of entertainment (26.6 %), children's programs (20.6 %), news (6.9 %), current affairs programs (5.8 %), sports (2.3 %), cinema (1.7 %) and documentaries (0.8 %). The highest increase was registered by children's programs (+92.2 % compared to 2014). The online programs with the highest audiences generally coincided with the channels' successes, where programs for the young and serialized programs are over-represented. In 2015, the best monthly audiences were achieved by TF1 for entertainment (The Voice, Koh Lanta,Secret Story, Danse avec les stars). For the France Télévisions group's channels, Plus belle la vie (France 3) was the program with the biggest number of videos viewed each month. For channels in the Canal+ group, le Petit Journal (Canal+) took first place in the 2015 rankings seven months out of twelve. Two D8 programs (Touche pas à mon poste! and Palmashow) led the way four months of the year. Football took first place in August. The best audiences for channels in the M6 group were achieved nine months of the year, by entertainment programs broadcast on W9 (les Princes de l amour, les Marseillais en Thaïlande, les Ch tis vs les Marseillais: la revanche) and between June and August, by the M6 entertainment program l Amour est dans le pré. For TMC and NT1, the most viewed programs were fictions between January and July, and entertainment between August and December. For Gulli, the best audiences were achieved by animated programs (8 months out of 12) or by foreign TV series for children (4 months out of 12). results

127 Online television consumption by genre¹ (%) cinema fiction documentary sport entertainment children's programs magazine news flux direct others ¹ In number of videos viewed. ¹ The scope of the study was widened in January 2012 with TMC and NT1, again in October 2012 with D8 and D17, and again in January 2014 with Gulli, HD1 and 6ter. Source: NPA - GfK - Canal+ Régie - France Télévisions Publicité - M6 Publicité Digital - TF1 Publicité Digital - TMC Régie - Lagardère Publicité. Methodology Catch-up TV audiences and their habits have been monitored since October 2010 via an online survey conducted by Harris Interactive for the CNC, polling 1,200 Internet users aged 15 and over every month % of websurfers watch catch-up TV Consumption of catch-up TV continues to grow within the French population. In 2015, 73.4 % of websurfers aged 15 and over report having watched catch-up TV programs (all media) over the past 12 months, compared with 72.2 % in The penetration of catch-up TV therefore increased by 1.2 point. It is rising across all socio-demographic categories, with the exception of the under 25s. Penetration of catch-up TV¹ (%) ¹ Internet users over the past 12 months (aged 15 and over). Source: Harris Interactive. 126 results 2015

128 The use of catch-up TV services is increasing. In 2015, 47.5 % of users watched programs via catch-up TV at least once a week, versus 46.1 % in The share of daily users increased by 0.4 point to reach 9.4 % in The share of keen users (i.e. those who watch programs at least once a week and less than once a day) is up 1.0 point to 38.1 %. The share of regular users (i.e. those who watch programs at least once a month and less than once a week) fell back by 0.6 point to 27.2 %. The share of occasional users (less than once a month) fell by 0.7 point to 25.4 %. Catch-up TV viewership behavior 1 (%) intensive keen regular occasionnal ¹ Internet users over the past 12 months (aged 15 and over). Intensive user: at least once a day; keen user: at least once a week and less than once a day; regular user: at least once a month and less than once a week; occasional user: less often. Source: Harris Interactive. Advertising revenues are estimated at 90 million Access to catch-up TV services is generally free to the audience for national FTA channels, and included in the subscription (at no extra charge) for pay channels. Advertising revenues represent the main source of earnings for catch-up TV services. The trend in revenue is accounted for by a number of factors: the number of advertisers, the volume of advertisements broadcast, and the selling price of advertising space. In 2015, advertising revenue for catch-up TV was estimated at 90 million, compared with 80 million in 2014 (+12.5 %). This figure tripled between 2011 and 2015 ( 30 million in 2011). results

129 4. VIDEO, VIDEO GAMES, TECHNICAL SERVICES SECTORS 128 results 2015

130 4.1. DVD and Blu-ray In 2015 : DVD and Blu-ray sales: M, -12.3% compared to million units sold, -4.9% compared to 2014 DVD sales represented 75.8% of the physical video market DVD sales: million, -13.2% Blu-ray sales: million, -9.3% Methodology Household spending on physical video media was evaluated by the GfK Institute based on sales from supermarkets, specialty superstores, mail order, and over the Internet. These figures do not include sales at kiosks or service stations. They also exclude the rental segment. All of the data presented in this section are inclusive of tax. Compared to the CNC-GfK annual barometer of physical videos published in March 2016, the 2015 results have been updated with a different weekly scope. The physical video market contracted by 12.3 % in value terms In 2015, sales (incl. tax) of DVD and Blu-ray shrank 12.3% to M. Household spending on physical videos fell for the fifth year running. In ten years, revenues from the physical video market have dropped by more than half (-57.4%). They represented 69.0 % of the overall video market in 2015 (physical and VoD). Between 2014 and 2015, volumes of video media sold (DVD and Blu-ray) dropped by 4.9 %. For the first time, they dipped below the mark of 90 million units sold to settle at 88.2 million in The market's slump is attributable to three key factors: changes in video consumption practices (in catch-up TV or in VoD), a level of Blu-ray household equipment which remains low in France, and piracy. The DVD still dominant On the overall market for physical video, comprising DVD and Blu-ray, DVD remains the preferred format. In 2015, it accounted for 75.8% of the market in value terms, vs. 76.6% in 2014, and 87.5% five years ago. At M, DVD sales were down 13.2% compared to million DVDs were sold in 2015, 6.1% less than in Blu-Ray losing ground In 2015, even if the high definition player equipment base of French households continued to grow (13.9% of households with a Blu-ray player in the living room in 2015 according to GfK, against 12.4% in 2014), Blu-ray revenues were down for the third consecutive year, sliding 9.3% between 2014 and They amounted to M. Sales volumes were up compared to 2014 (13.4 million discs sold, i.e. +2.1%). In 2015, Blu-ray accounted for 24.2% of the market for physical video. results

131 Given the disappearance of the VHS format, its sales have been excluded from the video market's figures since In 2015, VHS still generated 0.2 M in revenues for 24,220 units sold, against 0.2 M and 28,523 units in Sales 1 of physical video by medium 2 volume (million units) value ( M) VHS DVD Blu-ray 3 total VHS DVD Blu-ray 3 total , , , , , , , , , , , , , structure % 15.2% 100.0% % 24.2% 100.0% change 15/ % +2.1% -4.9% % -9.3% -12.3% 1 Sales inclusive of tax. 2 The scope of analysis changed starting from 2007 with the exclusion of VHS, and the inclusion of high definition formats. 3 Blu-ray emerged as the benchmark medium for high definition in Updated data. Source: CNC GfK. Retail sales 1 of physical video 2 M million units 1 800, , , , ,0 800,0 600,0 400,0 200,0 0, value volume 1 Sales inclusive of tax. 2 The scope of analysis changed starting from 2007 with the exclusion of VHS, and the inclusion of high definition formats. Source: CNC GfK for a new release on DVD In 2015, the average selling price incl. tax of a catalog DVD per unit fell 4.6 % to ( in 2014). The average price of new releases (on sale for less than six months) fell by 130 results 2015

132 1.9 % to All types of packaging included (packs and individual units), sales of DVDs priced between 17 and 20 represented the market's main price category, accounting for 22.2% of total revenues, versus 23.0% in In volume terms, DVDs priced between 3 and 8 represented the main price category, accounting for 26.1% of volumes in 2015, versus 27.5% in In 2015, sales of DVDs for less than 3 represented 1.1% of revenues, and 9.1% of volumes. The average price of a new-release Blu-ray unit stood at in 2015, down 3.1% compared to The price of a catalog Blu-ray unit increased by 9.5% to Blu-rays sold for between 20 and 25 represented the main category in volume terms, with 24.3% of sales, and 27.8% of the market's total revenues in value terms. Methodology The analysis of video media by genre distinguishes two universes: feature film and non-feature film. The feature film category includes all feature-length films distributed in theaters in France. The nonfeature film category includes all direct-to-video works and other programs, such as television programs, works of theater, documentaries (excluding feature-length works), comedy shows, short films, musical programs and miscellaneous programs (health, fitness, cooking, etc.). Adult programs are not included in the scope of analysis. Decline of non-feature film Sales of non-feature films on video were down 14.0% in 2015 for the ninth consecutive year. Sales volumes of non-feature films on Blu-ray fell again, by 4.7% between 2014 and It is worth noting the success of certain titles, such as Florence Foresti - Madame Foresti (1 st in the 2015 ranking of best-selling physical videos in value terms) Game of Thrones - Season 4 (3 rd ), or Les Enfoirés Sur la Route des Enfoirés 2015 (4 th ). In 2015, non-feature films represented 35.3% of the market, vs. 36.0% in At M, sales of non-feature films dropped below the 250 M mark for the first time. Between 2010 and 2015, they fell by 12.8% per year on average and have effectively been halved (-50.5%). In 2015, non-feature films accounted for 17.1% of revenues for the Blu-ray format and 41.1% of DVD revenues. In fact, the offer remained less developed than on the film segment and high definition is perceived by users as being of less interest for non-feature film programs. In volume terms, sales of nonfeature films declined 6.1% to 42.3 million units sold in Nevertheless, they outpaced sales of films for the third consecutive year. Films represented almost 60 % of revenues of physical video In value terms, films continued to dominate the video market. Revenues of feature films amounted to M in 2015, or 59.5% of the total, and fell by 12.2% compared to 2014 (479.4 M). Sales were down for both formats, by 13.0% for DVD, and by 10.5% for Blu-ray. By volume, 39.6 million units sold contained a film in 2015, a decrease of 3.5% compared to Sales of promotional operations decreased by 1.5% in value in They represented 5.2% of the sector's revenues. results

133 Sales 1 of physical video by content 2 films nonfeature films volume (million units) P.O. 3 total films nonfeature films P.O. 3 value ( M) , , , , , , , structure 44.9% 48.0% 7.1% 100.0% 59.5% 35.3% 5.2% 100.0% change 15/14-3.5% -6.1% -6.0% -4.9% -12.2% -14.0% -1.5% -12.3% 1 Sales inclusive of tax. 2 The scope of analysis changed starting from 2007 with the exclusion of VHS, and the inclusion of high definition formats. ³ Promotional operations with no distinction between titles (titles sold under the same EAN code). 4 Updated data. Source: CNC GfK. total Breakdown of video sales 1 based on content in 2015 (%) P.O. 2 5,2 nonfeature films 35,3 films 59,5 1 Sales inclusive of tax. 2 Promotional operations with no distinction between titles (titles sold under the same EAN code). Source: CNC GfK. 132 results 2015

134 2015 Top 20 physical video sales in value rank title feature/nonfeature film genre country of origin 1 % Blu-ray sales 1 The Hobbit - The Battle of the Five Armies film fiction NZ La Famille Bélier film fiction FR The Smurfs 2 film fiction US - 4 The Amazing Spider-Man 2 film fiction US Frozen film animation US Fast & Furious 7 film fiction US Interstellar film fiction US Elysium film fiction US Fifty Shades of Grey film fiction US Jurassic World film fiction US Florence Foresti - Madame Foresti non-feature film humor FR Predestination non-feature film fiction US Jump Street film fiction US - 14 Minions film animation US Lucy film fiction FR Game of Thrones - season 4 non-feature film TV series US Hunger Games - Mockingjay - Part 1 film fiction US Inside out film animation US Avengers: Age of Ultron film fiction US Les Enfoirés - Sur la route des Enfoirés 2015 non-feature film music FR - 1 FR = France, US = USA, NZ = New Zealand. Source: CNC GfK. Results of the best-selling feature films on physical video (% of total film sale volumes) top 10 top 20 top Source: GfK. A stable market share for French films In 2015, the share of French films on the video market was 21.6%, which is more or less stable compared to 2014 (-0.5 point). 8.5 million DVDs and Blu-ray discs of French films were sold in 2015, vs. 9.5 million in 2014 (-9.8%). French cinema generated 91.2 M in revenues in 2015, down 14.0% compared to French films accounted for 12.2% of Blu-ray sales in 2015 (11.4% in 2014), compared with 26.3% in DVD film sales (27.3% in 2014). In 2015, two French films were among the twenty best-selling films on video in value terms, compared with three in 2014: La Famille Bélier (2 nd ) and Lucy (13 th ). It is also worth noting the strong showing by Qu est-ce qu on a fait au Bon Dieu (19 th ) and Pourquoi j ai {pas) mangé mon Père (21 st ). results

135 Further decline in sales of American films In 2015, sales of American films on video dropped 12.5% to M. Their market share stood at 64.4% (vs. 64.7% in 2014). In terms of volume, almost 25 million DVDs and Blu-ray discs of American films were sold in 2015, 1.9% less than in American films accounted for 73.1% of Blu-ray film sales (vs. 73.2% in 2014), and 60.1% of DVD film sales (vs. 60.6% in 2014). In 2015, American films achieved sixteen of the twenty best performances for physical video films (14 films in 2014). For instance, The Smurfs 2 came third in the ranking in value terms, ahead of The Amazing Spider-Man 2 (4 th ) Frozen (5 th ) Fast & Furious 7 (6 th ) and Interstellar (7 th ). European films on the rise After three consecutive years of decline, sales of non-french European films progressed in They were up 8.7% compared to The market share for European films increased by 2 points to 10.3%. Revenues from non-french European films were mainly driven by the success of two British films: Gravity, 45 th in the 2015 ranking for best-selling videos and Harry Potter - The Complete 8-Film Box Set Collection (55 th ). Kingsman, Secret Service, a British film, took 58 th place. Decline in non-european films In 2015, the market share of non-european and non-american films fell back 1.2 points to 3.7%. Revenues slid 34.4% vs. 2014, to 15.4 M. Only one film made it into the twenty bestselling films in value terms: The Hobbit - The Battle of Five Armies (New -Zealand), the bestselling video in Sales volume declined to 1.3 million units sold, -25.9% compared to Sales 1 of films on video by country of origin 2 ( M) French films American films European films 3 other films total structure 21.6% 64.4% 10.3% 3.7% 100.0% change 15/ % -12.5% +8.7% -34.4% -12.2% 1 Sales inclusive of tax. 2 The scope of analysis changed starting from 2007 with the exclusion of VHS, and the inclusion of high definition formats. 3 Continental Europe (from the Atlantic to the Urals), excluding France. 4 Updated data. Source: CNC GfK. 134 results 2015

136 Breakdown of sales 1 of films on video by country of origin 2 (%) ,8 4,1 2,6 2,7 2,4 3,0 2,6 5,2 4,9 3,7 12,3 9,9 12,1 11,1 11,9 15,1 11,3 11,5 8,3 10, ,1 62,9 62,6 64,2 64,3 60,4 62,3 63,5 64,7 64, ,8 23,0 22,8 21,9 21,3 21,6 23,8 19,8 22,1 21, ³ Sales inclusive of tax. 2 The scope of analysis changed starting from 2007 with the exclusion of VHS, and the inclusion of high definition formats. 3 Continental Europe (from the Atlantic to the Urals), excluding France. 4 Updated data. Source: CNC GfK. French films US films EU films² other films Breakdown of sales 1 of films on video by country of origin in 2015 (%) Total (DVD + Blu-ray) DVD Blu-ray EU 10,9 other other 3,7 French French EU 3,7 12,2 26,0 11,0 UE 11,0 other 3,7 French 12,2 US 59,4 US 73,1 US 73,1 1 Sales inclusive of tax. 2 Continental Europe (from the Atlantic to the Urals), excluding France. Source: CNC GfK. Non-feature film: the success of American series In 2015, all segments of the non-feature film market saw a decline in their video sales. Revenues from fiction (unit and television series) on video dropped 10.9% to M. Fiction remained the best-selling genre for non-feature films, some way ahead of children's programs and humor. At 58.2%, its share of the non-feature film market rose compared to 2014 (56.2% in 2014). Revenues from French fiction fell 0.8% in 2015 to 17.9 M. They represent 12.3% of results

137 total revenues for fiction (stable compared to 2014). The leading work of French fiction in 2015, the first season of Versailles, took 44 th place on the ranking of non-feature film programs in value terms. Video sales of foreign fiction fell 12.1% to M in Foreign fiction, particularly American series, continued to dominate and generated 87.7% of revenues from fiction on video in In value terms, 12 of the top 20 spots for non-feature film programs were taken by works of American fiction, including the fourth season of Game Of Thrones (3 rd ) Season 5 of The Walking Dead (7 th ) and Season 3 of House of Cards (10 th ). Sales 1 of non-feature film works on video by genre 2 ( M) documentary children fiction / series humor music theater other total structure 4.9% 18.8% 58.2% 9.0% 7.7% 0.3% 1.1% 100.0% change 15/ % -8.8% -10.9% -6.3% -34.1% -28.4% -25.7% -14.0% 1 Sales inclusive of tax. 2 The scope of analysis changed starting from 2007 with the exclusion of VHS, and the inclusion of high definition formats. 3 Updated data. Source: CNC GfK. Breakdown of sales 1 of non-feature film works on video by genre 2 (%) ,1 1,1 0,9 0,9 0,9 1,0 1,0 0,7 1,3 1,1 0,6 1,1 0,8 0,7 0,6 0,6 0,5 0,4 0,3 0,8 16,5 12,8 13,4 14,7 12,6 10,0 10,4 10,0 7,7 17,7 9,4 6,5 8,3 9,0 12,6 9,4 8,7 8,9 12,5 14, ,0 47,4 49,3 50,1 50,2 51,8 54,0 56,7 56,2 58, ,9 16,4 18,1 19,0 19,6 20,0 19,4 19,7 17,7 18,8 5,8 5,5 5,3 6,4 5,2 5,1 5,6 5,4 6,1 4, ³ Sales inclusive of tax. 2 The scope of analysis changed starting from 2007 with the exclusion of VHS, and the inclusion of high definition formats. 3 Updated data. Source: CNC GfK. documentary youth fiction humor music theater others 136 results 2015

138 Increase in the number of active titles A total of 64,266 DVD titles, 11,013 Blu-ray 2D titles and 609 Blu-ray 3D titles were sold at least once in The number of active titles for the DVD format was virtually stable (-0.1% between 2014 and 2015, i.e. 64 fewer) and reached the lowest level for the period. The increase in the number of Blu--ray 2D titles (+1,295) and Blu-ray 3D titles (+23.5% between 2014 and 2015) pushed up the total number of active titles on the video sector, which came to 75,888 in 2015 (+1.8% overall compared to 2014, i e +1,347 titles), marking a return to its 2009 level (75,973 titles). Nevertheless, there was a downward trend of 3.9% over five years. Video offering by format (number of active titles) change 15/14 Blu-ray 2D 1,099 2,089 3,379 4,945 6,852 8,440 9,718 11, % Blu-ray 3D % DVD 65,765 73,883 75,540 76,208 71,943 67,880 64,330 64, % total 66,864 75,973 78,939 81,270 79,016 76,678 74,541 75, % Source: CNC GfK. The Blu-ray 3D market It remains the case that few households are equipped with compatible 3D screens, since only 15.1% possessed one in 2015 according to GfK (13.5% in 2014). With 0.78 million units, the number of Blu-ray 3D units sold in 2015 fell 33.8% compared to Launched in 2010, this format accounted for 5.8% of Blu-ray sales, in volume, in 2015 (vs. 9.0% in 2014), i.e. 0.9% of all physical video sales (vs. 1.3% in 2014). In 2015, Blu-ray 3D accounted for 12.7% of revenues from Blu-ray, and 3.1% of revenues from the physical video market (vs. 17.4% and 4.1% respectively in 2014). The average price of a Blu-ray 3D disc was in 2015, 0.1% less than in Blu-ray 3D consumption sales 1 M) units (million) average price ( ) change 15/ % -33.8% -0.1% 1 Sales inclusive of tax. 2 Updated data. Source: CNC GfK. results

139 4.2. Video on Demand (VoD) In 2015 VoD : million, +19.8% compared with 2014 SVoD: 82.5 million, % One-time payment : million, -0.3% The VoD market Methodology Every month, GfK counts the total number of videos sold or rented on the platforms that are most representative of the paid VoD market in France. The 100% estimate for the sector is calculated based on the following coverage rates as of October 2015: Television Computer one-time rental 97% 25% one-time sale 13% 13% subscription 2.2% 2.2% According to GfK, the panel of platforms monitored represented 53.9% of sales for the VoD market in On the one-time payment segment, it represented 68.0% of sales in value, and 76.7% in volume. Sales are inclusive of tax. The VoD market in France was estimated at million in 2015, an increase of 19.8% compared to A market worth almost 320 million in 2015 According to the NPA-GfK barometer, sales on VoD market in France were estimated at million in 2015, an increase of 19.8% compared to The VoD market is therefore on an upward trend. One-time payment continues to dominate (74.0% of total sales). However, the market share of SVoD (subscription) grew significantly between 2014 and 2015, from 11.0% to 26.0%. VoD content continues to be watched mainly on television sets. In 2015, 80.3% of VoD sales were made via IPTV (75.9% in 2014), versus 19.7% via a computer (24.1% in 2014). 138 results 2015

140 VoD market by type of transaction 1 (in millions of ) 350, % 317,6 300,0 250,0 200,0 219,5 20, % 251,7-4.7% 239,8 26,8 28, % 265,0 29,2 82,5 150,0 100,0 199,1 224,9 211,9 235,8 235,0 50,0 0, Source: GfK - NPA Conseil 100% estimate Trend between two consecutive years 1 Sales inclusive of tax. one-time payment SVoD total 67,337 titles were consumed in 2015 (+5,376 programs). Methodology Available titles designate programs downloaded at least once during the period surveyed. These results are issued from the declarations of the platforms in the GfK institute's panel. More than 67,000 active titles in 2015 According to the panel of platforms monitored by GfK, 67,337 titles were active during 2015, an increase of 8.7% compared to 2014 (+5,376 programs). In 2015, 39.7% of active titles were adult programs (+3.8 points compared to 2014). This increase came at the expense of audiovisual programs (38.3% of active titles in 2015, versus 43.4% in 2014). Film represented 22.0% of active titles via VoD (+1.3 points compared to 2014). In 2015, 68.8% of titles (all genres included) were available on a single platform, 14.9% on two platforms, 6.8% on three platforms, and 9.5% on four platforms or more. Audiovisual was the medium with the most exclusive titles: 83.5% of the titles were in fact active on a single platform. Within this segment, humor was not an exclusive offer. 51.2% of the programs in this genre were active on at least two platforms in Conversely, children's animation was an exclusive offer: 90.9% of children's animation for television was active on a single platform. Film was the medium for which the presence of works on multiple platforms was the most common: 69.0% of the film titles were active on at least two platforms in results

141 Active titles by type of program (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 27,8 29,3 34,9 35,9 39,7 50,4 50,9 44,3 43,4 38,3 21,8 19,8 20,8 20,7 22, film audiovisual adult Source: Panel GfK - NPA Conseil Film = feature films released in theaters in France, and films released directly on video. Nearly 15,000 films available on VoD According to the panel platforms monitored by GfK, 14,827 films were active during 2015, an increase of 15.7% compared to 2014 (+2,016 films). In 2015, French films accounted for 29.1% of the offering (29.5% in 2014), American films 43.7% (43.5% in 2014) and films from other countries 27.3% (27.1% in 2014). Active film titles % % % % Source: Panel GfK - NPA Conseil Trend between two consecutive years 1 Basis: film segment of the one-time payment VoD market. Film = feature films released in cinemas in France, and films released directly on video. Fiction is the most consummated genre in audiovisual programs On the audiovisual segment, the best represented genre in the active titles was fiction (unit and television series). 36.0% of active titles fell within this genre in 2015 (34.0% in 2014). Children's programs totaled 27.7% (22.6% in 2014), documentaries 22.8% (26.5% in 2014), music 4.5% (8.2% in 2014) and humor 2.0% (1.6% in 2014). 140 results 2015

142 One-time payment VoD The one-time payment VoD market is estimated at million. Stability of the one-time payment market in 2015 In 2015, the one-time payment VoD market was estimated at million, a stable result compared to 2014 (-0.3%). At million, one-time rentals fell by 2.9% in 2015 compared to 2014 and captured 74.5% of one-time payment sales (76.5% in 2014). Permanent downloads rose 8.2% over the period to 60.0 million, representing 25.5% of the one-time payment market (23.5% in 2014). One-time payment VoD content was mainly watched on television sets. In 2015, 74.4% of one-time payment VoD sales were made via IPTV (74.5% in 2014), versus 25.6% via a computer (25.5% in 2014). The one-time payment VoD market1 250,0 200,0 224,9 49,3-5.8% 211,9 41, % 235,8-0.3% 235,0 55,5 60,0 150,0 100,0 175,6 170,4 180,3 175,0 50,0 0,0 Source: GfK - NPA Conseil 100% estimate Trend between two consecutive years 1 Sales inclusive of tax one-time rental permanent download total Films via one-time payment: 75.2% of the panel's sales, in value The market share in value of films via one-time payment was 75.2% in Audiovisual programs represented 8.6% of transactions (one-time rentals + permanent download) of the panel in value terms (5.5% in 2014, i.e points). This increase is explained by the excellent performance of the French series broadcast on France 3 Plus belle la vie (3 rd in the classification of transactions by volume in 2015), by the American series broadcast on TF1 Grey's Anatomy (7 th ) and by the video recording of Florence Foresti's show Madame Foresti (13 th ). The market share of adult programs was 16.3% in 2015 (18.9% in 2014, -2.6 points). results

143 Structure of one-time payment sales in value by program type 1 (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 25,9 21,3 21,5 18,9 16,3 6,6 67,5 5,8 4,6 5,5 8,6 72,9 73,9 75,6 75, film audiovisual adult Source: Panel GfK - NPA Conseil 1 Film = feature films released in cinemas in France, and films released directly on video. The market share of French films: 31.6% of transactions of the one-time payment panel in value On the film segment, the market share in value of French films fell between 2014 and 2015 (- 4.8 points to 31.6%). Most of the transactions of the one-time payment panel in value continued to concern American films. They accounted for 56.9% of sales in value in 2015 (+2.9 points compared to 2014). Market share of the best-selling feature films in total for one-time payment transactions for films (%) 1 top 10 top 20 top 30 total Source: Panel GfK - NPA Conseil 1 Basis: film segment of the one-time payment VoD market. Film = feature films released in theaters in France, and films released directly on video. Fiction: the leading audiovisual genre Within the audiovisual segment, fiction (unit and television series) captured almost half of the one-time payment VoD market. In 2015, this genre captured 47.3% of transactions in value (58.1% in 2014). Video recordings of humor shows represented 19.1% of transactions in value in 2015 (20.1% in 2014). The market share in value of audiovisual documentaries reached 4.5% in 2015, versus 8.2% in Children's programs represented 5.7% of transactions in value (8.2% in 2014). Music captured a minimal market share (2.3% in 2015, against 3.1% in 2014). Most fiction transactions were captured by US programs in value terms. These represented 71.6% of transactions in value for the genre in 2015 (74.9% in 2014), versus 24.7% for French series and fictions (21.0% in 2014). The increase in market share of French fiction came on 142 results 2015

144 the back of an excellent performance by the series Plus belle la vie (3 rd in the classification of sales in volume in 2015). On the segment for children's animation programs (99.9% of transactions of children's programs in 2015 in value), French works dominated the market. They accumulated 42.1% of transactions in value (-0.8 points compared to 2014), against 24.4% for US programs (+1.2 points), 16.2% for Asian programs (-4.4 points), 15.3% for non-french European programs (+3.2 points) and 2.0% for programs from other countries (+0.8 points). SVoD The SVoD market was estimated at 82.5 million, up 182.3% compared to SVoD: an increase of % in value in 2015 In 2015, the SVoD market was estimated at 82.5 million, up 182.3% compared to Netflix and CanalPlay largely boosted the market in The arrival of Zive, launched by SFR in November 2015, extended the overall volume of titles available via SVoD. In addition, Netflix and Zive both ran major advertising campaigns. This meant that the general public became more aware of SVoD and these two services in particular. SVoD market 1 (in millions of ) 90,0 80,0 70,0 60,0 50, % 82,5 40,0 30,0 20,0 10,0 20, % +4.4% +4.5% 26,8 28,0 29,2 0, Source: GfK - NPA Conseil 100% estimate Trend between two consecutive years 1 Sales inclusive of tax. Methodology SVoD offerings are collected each month by the NPA Consulting & Research firm via the websites of the services concerned. Ten platforms are analyzed in this way: CanalPlay, Club Vidéo SFR Pass Cinéma, Club Vidéo SFR Pass Kids, Filmo TV, GulliMax, La Box Videofutur, Netflix, Pass M6, TFouMax and Zive. This data is collected over one week during the month analyzed. results

145 Definitions The "film" segment covers features films released in cinemas in France, and films released directly on video. The "children's series" segment (which exclusively contains animated series) and the "TV series" segment are counted by title, regardless of the number of seasons or episodes. The "other programs" segment covers all audiovisual programs that do not fall within the previous categories. 6,965 programs were available via SVoD in 2015, including 3,130 films released in cinema in France. Nearly 7,000 titles were available via SVoD in ,965 programs were available via SVoD in 2015 (+467 titles compared to 2014): 4,432 films including 3,130 feature films (theatrical release in France), 500 TV series, 521 children's series and 1,512 other programs. The share of films in the total offering declined in 2015 compared to 2014 at 63.6% (-5.5 points) as did that of feature films (-3.5 points to 44.9%). Conversely, the share of TV series increased by 1.2 points to 7.2% and that of children's programs by 1.6 points to 7.5%. Out of the 3,130 feature films available via SVoD in 2015, 40.9% were French films, 40.9% American films, 13.7% non-french European films, and 4.6% non-european and non- American films. The share of American films in the total offering rose between 2014 and 2015 (+1.1 point) at the expense of non-european and non-american films (-1.2 point). The share of French films was stable (-0.2 point between 2014 and 2015). There was a substantial offering of old films. The actual theater release of 36.9% of films available dated back 20 years or more, versus 28.9% dating back between 10 and 19 years, 22.5% between 5 and 9 years, and 11.6% between 3 and 4 years. However, it should be noted that the share of recent films (under 10 years) increased in 2015 compared to 2014 (+3.4 points). In 2015, 1,765 feature films were available on a single platform only (56.4% of available titles), 529 on two platforms (16.9%), 472 on three platforms (15.1%), and 364 on four or more platforms (11.6%). More feature films were available on several platforms in The share of titles available on three or more platforms increased by 16.7 points compared to VoD practices and uses in France Methodology The following data was taken from a "barometer" (i.e. measurements) of websurfer practices in terms of VoD, set up by the CNC. This survey was conducted online by Harris Interactive with 15,000 individuals aged 15 and over (13 successive waves per year). 34.4% of websurfers said they had already paid for VoD programs in results 2015

146 34.4% of websurfers claimed to have already used paid VoD in 2015 The VoD audience is gradually expanding, notably through the development of multiservice offers. 34.4% of websurfers claimed to have already paid for VoD programs in 2015, compared to 33.0% in 2014 (+1.4 points). In 2015, 28.9% of websurfers said that they had paid to watch a program via paid VoD on IPTV (28.6% in 2014), versus 12.1% on their computers (10.0%) and 8.2% on a mobile device (5.5%). The gap between the TV and the computer narrowed in 2015 compared to While there was a difference of 18.6 points to the benefit of TVIP in 2014, this difference narrowed to 16.8 points in Penetration rate for paid VoD by device (% of websurfers) 40,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 22,5 29,0 26,8 31,7 33,0 34,4 27,0 28,6 28,9 24,7 12,1 9,9 10,0 8,0 1,0 8,5 1,8 4,3 5, ,2 together IPTV computer mobile device Source: CNC - Harris Interactive, 15 years and older. Paid-VoD consumers are mainly men aged 35 to 49 in the upper socioprofessional category. Intensive users represented 4.3% of paid VoD consumers. VoD: an occasional practice In 2015, the majority of paid VoD consumers were men (52.7% of VoD consumers), aged between 35 and 49 (32.0%) and belonging to the upper socio-professional categories (43.9%). Compared to 2014, the proportion of women among paid VoD consumers fell by 1.1 points to 47.3% in The share of year olds rose by 1.1 points (26.7% in 2015) and that of year olds by 0.9 points (26.8% in 2015). With a drop of 0.5 points between 2014 and 2015, the proportion of lower socio-professional categories was 29.4% in In 2015, 65.8% of paid VoD consumers were occasional consumers (those who use paid VoD less than once a month). Conversely, intensive consumers (those who use paid VoD at least once a day) accounted for 4.3% of paid VoD consumers. In 2014, the audience for VoD consisted of 71.8% of occasional consumers and 2.9% intensive consumers. results

147 Orange's VoD platform was the one most used by paid VoD users polled in 2015, as was the case in % of VoD consumers reported having paid to watch a program via this platform in 2015, ahead of MyTF1VoD (26.4%) and Netflix (25.8%). Ranking of VoD platforms in number of consumers (%) rank platform Orange MyTF1 VOD Netflix CanalPlay VOD CanalPlay (unlimited offer) France TV Pluzz VoD itunes Arte Pass M6 / M6 VOD SFR Club Vidéo Google Play PlayStation Store la demande Filmo TV Vidéo Futur VirginMega Films&documentaires.com ADN Anime Digital Network Universciné Iminéo Zive other services base: Websurfers declaring having paid to view feature films or TV programs via VoD. Interpretation: in 2015, 27.0% of consumers said they had paid to watch a VoD program via the Orange platform Source: CNC - Harris Interactive, 15 years and older. Also see The statistical series on the VoD market 146 results 2015

148 4.3. Video games In 2015: Turnover of video games (console + games) in France totaled 3.0 billion (+8.5% compared to 2014) Of which 1,624.7 M for game consoles (device + games) Of which M for handheld consoles (device + games) Of which M for PC games Methodology: The GfK Institute measures the sale of video games for consoles and computers. "Volume" refers to the number of units sold. Packages containing multiple games are called "bundles" and are not counted. Each game medium is paired with a genre (action/adventure, sports, FPS, MMO, etc.) and a country. Country categorization was done using data available to the CNC. Games that were designed and developed in France that had majority French design expenses are considered to be French. Game genres use nomenclature determined by the GfK. Unless stated otherwise, the data shown is inclusive of tax. IDATE establishes a total market estimate for video games including both sales of consoles and sales of physical and online video games. 52.1% of households have a game console According to GfK, 52.1% of French households had a game console in 2015, compared to 51.5% in 2014 and 47.0% five years ago. The equipment rate for game consoles remained stable at 45.9% (45.6% in 2014), while the rate for handheld consoles dipped to 32.3% (35.6% in 2014). In 2015, French households had 18.5 million game consoles (16.8 million in 2014, i.e %) and 18.7 million handheld consoles (18.0 million in 2014, i.e. +3.9%). The Sony PS4 was the best-selling 8th generation console In November 2013, a year after the launch of Nintendo's Wii U, two new 8th generation game consoles entered the French market: the Sony PS4 and Microsoft's Xbox One. According to IDATE, the Japanese manufacturer was far ahead of its competitors at the end of 2014 and this trend is set to continue for this generation of consoles. In 2015, according to the Union of Leisure Software Publishers (S.E.L.L.) and on the basis of figures from GfK, 2.5 million 7th and 8th generation game consoles were sold. Of these, 1.7 million were home consoles, of which 123,000 were 7th generation home consoles and 1.6 million were 8th generation. In 2015, 766,000 handheld consoles were sold, 19,000 of which were 7th generation and 747,000 were 8th generation. While the market launch of 8th generation game consoles was more successful than that of the previous generation ( ), IDATE believes that their rate of growth will not be as good. This is due to increasingly stiff competition from games on mobile terminals (smartphones and tablets). results

149 Nearly 3 billion generated by the video game market in France According to IDATE data, the video game market in France (devices and games) generated 2,973.2 million (before tax) in 2015, up 8.5% on 2014 ( 2,741.0 million). More than half of turnover of video games in France in 2015 came from sales of home consoles (54.6% versus 51.2%). The proportion of handheld consoles slipped 4.1 points to 9.0%, versus 13.1% in The share of the PC video game market fell slightly to 19.2% (19.8% in 2014). Other media (smartphones, tablets, etc.) accounted for 17.1% of the market, up 1.1 point compared to Trends in turnover 1 of video games in France (in millions of ) , , , , , , , , Turnover before tax. 2 Turnover including sales of devices and games (physical and online) 3 Games on PC 4 Games on smartphones and tablets, games on demand via television. Source: IDATE home console2 handheld console2 PC3 others4 The physical video game market The market for physical video games continued to shrink: by 6.4% in volume and by 3.4% in value In 2015, the downward trend in the sales volume of physical video games slowed (-6.4%, versus -15.1% in 2014). Since 2011, the volume of physical video games sold in France has fallen by 11.2% per year on average. French video games continued to be harder hit than foreign video games. In fact, the volume of French games sold decreased by 14.9% and that of foreign games by 6.0% compared to Foreign games made up 95.7% of the volume sold in 2015 (+0.4 point compared to 2014), versus 4.3% for French games (4.7% in 2014). In value terms, video game sales (incl. taxes) dropped 3.4% in 2015 (-12.9% in 2014) to million. The market has seen the emergence of new playing habits (online and mobile) 148 results 2015

150 which do not require traditional game media (tablets and smartphones, in particular). According to IDATE estimates, physical video games only accounted for 35.9% of the video game market in France in In 2015, the average price (incl. taxes) of a physical video game rose by 3.2% to 41.14, an increase of 1.3 on In 2015, the average price of French games rose by 2.3% to ( in 2014) and the average price of foreign games by 3.2% to 41.52, its highest level ( in 2014). The difference in price between foreign and French games therefore continued to grow for the third consecutive year. In 2015, the price of foreign video games was, on average, 8.94 higher than that of French video games ( 8.39 in 2014). In 2015, the average price (incl. taxes) of a physical video game rose by 3.2% to 41.14, an increase of 1.3 on Sales volume of physical video games, by country (in millions of units) trend 15/14 French games % foreign games % total % Source: CNC GfK. Sales 1 of physical video games in value by country (in millions of euros) trend 15/14 French games % foreign games 1, , , , , % total 1, , , , , , % 1 Sales inclusive of tax. Source: CNC GfK. Game consoles accounted for 78.6% of revenue In 2015, sales in value of video games on physical media only grew for home consoles. They increased by 4.2% to million. Conversely, sales of video games for handheld consoles suffered the biggest decline in 2015: -25.2% to million. Sales of video games on computer also decreased in 2015 by 19.7% to 50.2 million. In 2015, console games represented 78.6% of the revenue generated by the physical video game market (+5.7 points on 2014). In 2015, the average retail price of physical video games increased both for the console and for the computer. At an average price of in 2015 ( in 2014), game console video games remained the most expensive games on the market. Handheld console video games were the second most expensive; their average price, down for the first time since 2010, was in 2015 ( in 2014). The average price of computer video games stood at in 2015 (+2.3%). results

151 Breakdown of physical video game sales, in value and by device (%) 100% 80% 60% % 20% % home console games handheld console games computer games Source: CNC GfK. Game-console video games constituted almost 90% of the French video games sold With regards to French video games alone, game console video games retained a dominant market share in 2015: 89.2%, compared to 88.8% in French video games achieved 5.5% of their turnover on handheld consoles in 2015, versus 6.6% in Over five years, sales in value of French video games for handheld consoles have fallen dramatically, from 12.3 million in 2010 to 1.6 million in computer video games accounted for 5.5% of the revenue generated by French video games, a share that has remained relatively stable since Sales 1 of physical video games in value, by country and device (in millions of euros) trend 15/14 French games % on home console % on handheld console % on computer % foreign games 1, , , , , % on home console % on handheld console % on computer % total 1, , , , , , % 1 Sales inclusive of tax. Source: CNC GfK. Games for 8th generation consoles captured 74.1% of the physical video game market In 2015, the games created for the three 8th generation game consoles (Wii U, PS4 and Xbox One) were the only ones that saw their revenue grow. Sales in value of games for the PS4 rose by a factor of 1.8 between 2014 and 2015, while sales in value of games for the Xbox One rose by a factor of 1.4. Sales of games developed for Nintendo's Wii U, released the year before, enjoyed a more moderate increase of 16.1%. In 2015, sales of physical video games for 8th generation consoles (3DS, PS Vita, Wii U, PS4, Xbox One) made up virtually threequarters of the physical video game market: million or 74.1%, compared to 54.5% in Conversely, revenue from the sale of 7th generation console games (DS, PSP, Wii, PS3 150 results 2015

152 and Xbox 360) halved between 2014 and 2015 (-49.6% to million) for a market share down 18.6 points year on year to 20.0%. In 2015, PS4 games dominated the French market for the first time with million in revenue. Video games for the PS3 came next with sales of million, representing a market share of 14.0%. In volume and value, the PS4 version of 2016 FIFA was the best-selling video game in Video game sales on PS4 and Xbox One rose: the former saw their revenues grow 75.9% to million, the latter by 40.9% to million. In 2015, the sale of Wii video games (7th generation) fell by 45.9% in value to 22.3 million, while the sale of Wii U games (8th generation) increased by 16.1% to 55.1 million. French video games accounted for 38.0% of Wii video game sales in 2015 (30.0% in 2014). On the handheld-console segment, video games for the 3DS generated million in revenue in a drop of 20.4% - and had a market share of 14.0%. The revenue generated by these video games was almost 37 times higher than that of the games created for the DS (-69.8% to 3.2 million). Among the successes of the 3DS in 2015, it is worth citing Animal Crossing Happy Home Designer(12th best sales in volume in 2015). Sales of games for the Sony PS Vita fell by 30.7% to 8.9 million, but to a lesser extent than sales of games for the PSP (-74.9% to 0.8 million). Video games for these two consoles saw the lowest sales: their combined market share stood at 1.1% of the market's total sales. Breakdown of physical video game sales in value and by device (%) % 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Wii U PS4 Xbox One PS Vita 3 DS Wii PS3 Xbox 360 PSP DS computer other home consoles¹ 8th generation consoles: Wii U, PS4, Xbox One, 3DS, PS Vita. ¹ PS2, Xbox, etc. Source: CNC GfK. results

153 Best-selling physical video games in volume in 2015¹ label units sold¹ (in thousands of units) 1 FIFA 16 1, Call Of Duty: Black Ops 3 1, Grand Theft Auto V Minecraft FIFA Star Wars Battlefront Fallout The Witcher Battlefield Hardline Call Of Duty: Advanced Warfare Just Dance Animal Crossing Happy Home Designer Assassin's Creed 4 Syndicate Splatoon Far Cry Farming Simulator Super Smash Bros Batman: Arkham Knight Metal Gear Solid V: The Fantom Pain Tomodachi Life ¹All platforms combined. Source: CNC GfK. Definition of video game genres MMO (Massively Multiplayer Online): They innovate, in particular, by creating "persistent worlds" which operate around the clock. FPS (First-Person Shooter): shooting games based on aiming and moving and in which the environment is viewed through the eyes of the character being played. RPG (Role Playing Game): video games inspired by traditional role playing games. The player plays the part of one or more "adventurers" who specialize in a specific field (combat, magic, etc.) progressing within a linear plot. New genres: games involving raising animals or farming livestock, music, singing, dancing, rhythm, job simulations or party games. Some of these games require a dance floor or a replica of a musical instrument. Action/adventure games continue to top sales, both in volume and value In 2015, the three biggest genres in volume (action/adventure games, FPS and sport games) made up more than half of total physical video game sales ( 55.9% of sales in volume, compared to 52.2% in 2014). The majority of genres saw a decline in sales volumes, except the FPS category (+9.7% to 3.7 million units), RPG (+18.3% to 2.5 million units), combat games (+2.3% to 0.8 million units), compilations (+7.7% to 0.2 million units) and MMO (+39.2% to 0.2 million units). Despite a further decline of 12.0% in 2015, action/adventure video games remained top of the French market by volume with 5.3 million units sold including Grand Theft Auto V, ahead of the FPS (Call of Duty: Black Ops 3, Star Wars Battlefront), the RPG (Fallout 4; The Witcher 3) and sports games (2.6 million units sold in 2015, versus 2.8 million in 2014) thanks to the top spot taken by FIFA results 2015

154 In value, the three biggest genres accounted for 60.2% of physical video game sales in 2015, compared to 61.9% in The largest increases were in MMO (+74.9% to 7.6 million), compilations (+32.8% to 2.7 million) and RPG (+34.7% to million). In contrast, the largest declines in key genres affected board games (-54.8% to 8.6 million), the "new genre" games (-21.7% to 36.5 million) and action/adventure games (-15.4% to million). The breakdown of French video game sales by genre differed from that for all countries combined. The "new genre" category ( 14.2 million in 2015) remained the best-selling French genre by far, despite a substantial fall in revenue for the third consecutive year ( -14.7% between 2014 and 2015). In 2015, the market share of French games on the genre rose 3.2 points to 39.0%. The increase was driven by sales of the latest installment of the franchise Just Dance. With an increase of 23.1% between 2014 and 2015 to 8.0 million, racing games consolidated the 2 nd spot for sales in value of French games. At 3.0 million in 2015 (-40.8%), platform games dropped to 3 rd position ahead of action and adventure games ( 1.8 million in 2015, i.e %). In 2015, French games achieved 39.0% of total revenue for "new genre" games (+3.2 points compared to 2014). They achieved 14.5% of total revenue of racing games (+4.4 points on 2014) and 7.9% of that of platform games (-4.2 points). On the action/adventure games segment, the market share of French games dropped 0.6 point to 0.9% in The largest increases in sales of physical video games concerned MMO (+74.9% to 7.6 million), compilations (+32.8% to 2.7 million) and RPG (+34.7% to million). Sales 1 of physical video games in value by genre (in millions of euros) trend 15/14 action/adventure % FPS % sports % RPG % racing % combat % platform % new genres % management/war games % simulation % board games % MMO % compilation % other % educational software multimedia % total 1, , , , , , % 1 Sales inclusive of tax. Source: CNC GfK. results

155 The online video game market Methodology: IDATE estimates the sale (excluding tax) of online video games for game consoles, handheld consoles, personal computers and mobile terminals (smartphones and tablets). The estimate of computer-based online game sales and mobile-based game sales includes the sale of online software as well as revenue from in game practices (sale of virtual goods, commission on exchange rate operations, in game advertising). The estimate of computer-based online game sales includes the sale of online software on the Internet as well as revenue from in game practices (sale of virtual goods, commission on exchange rate operations, in game advertising). The online video game market: 64.1% of the global market According to IDATE, the online video game market in France was worth 1,220.0 million (before tax) in 2015 (+17.5% on 2014), or 64.1% of the global video game market (59.5% in 2014). The revenue generated by online video games should continue to grow over the next few years and could reach 1.4 bn in 2016 (+16.7% on 2015), 1.6 bn in 2017 (+13.3% on 2016) and 1.8 bn in 2018 (+11.2% on 2017). In 2016, the share of online video games on the video game market as a whole should reach 59.4%, and 64.1% in Computer-based online gaming was the biggest online video game market segment in France in 2015 with a 42.2% share of the online video game market (-3.6 points on 2014) and turnover of million (before tax) (+8.4% on 2014). This revenue could increase to more than 543 million in 2016 and then grow on average by almost 5% per year until IDATE believes that 91.6% of computer-based game sales could be distributed online in France in 2016 (93.6% in 2018). According to IDATE, the online distribution of video games for game consoles rose by 56.5% in France in 2015, to million (before tax). In 2015, this segment accounted for almost a fifth of the total revenue generated by the sale of game console video games (19.1% compared to 17.9% in 2014). Between 2015 and 2017, this market segment is expected to average annual growth of 51.6%, for income of million. IDATE believes that 38.4% of console video games will be distributed online by the end of Online games are increasingly mobile Games are being distributed online more often and are also becoming more mobile. The popularity of video games designed for smart phones and tablets, which are only available online and offer new gaming experiences at very attractive prices, continues to grow. According to IDATE, the French mobile-game market was worth million in 2015, up 16.2% on The sale of video games for smartphones reached million (before tax) in 2015 (+11.0% on 2014), while the sale of video games for tablets rose by 30.1% to million. In 2016, the sale of mobile video games should make up more than a third (39.0%) of online game sales in France and 17.6% of the global video game market. According to IDATE, the sale of mobile games should grow by 20.4% between 2015 and 2017 (+16.2% for smartphone games and +29.8% for tablet games). The market for online video games for handheld consoles saw its revenues increase by a factor of 1.5 between 2014 and 2015, to 22.7 million (before tax). According to IDATE, revenue generated by the online distribution of handheld console games could reach results 2015

156 million in 2016 (or +69.5%, between 2015 and 2016). Online distribution would then represent 28% of the turnover of handheld console games on the French market in 2016, almost 47% in 2017 and up to 56% in Breakdown of the online video game market in France by device (% of turnover) Estimates computer games online computer games online mobile games on tablet mobile games on smartphone online games on handheld console Source: IDATE Estimated change in video game revenue in France (% of turnover) physical video game online video game Source: IDATE Also see The statistic series on the video game market by the CNC results

157 4.4. The Technical Services Sector Methodology In the activity nomenclature in force since January 1st, 2008, the technical service providers for the cinema, broadcasting and multimedia sectors have mainly been referenced by the INSEE under the APE codes: 5912Z (post-production of feature films, video and television programs), 5911C (production of films for cinema, including film studios) and 5920Z (music publishing and sound recording activities). At the same time, equipment manufacturers are referenced under the six codes relating to the wholesale of electronic devices or components: 4643Z, 4647Z, 4648Z, 4649Z, 4652Z, 4673B. Ficam (the Federation of Cinema, Television and Multimedia Industries) brings together more than 150 companies whose business covers all the trades involved in recorded entertainment services. Member companies represent around 70% of all revenue reported by technical services companies. Each year, Ficam collects economic and social data from its members, which is analyzed to reveal characteristic trends in the sector. The data presented in this chapter, unless stated otherwise, are either taken from Ficam's analysis or from the Report of the Sector of Technical Companies for Creation and Events, drawn up with the cooperation of Ficam, Synpase, Groupe Audiens and AFDAS, the 7th issue of which was published on January 20th, The sample which Ficam selected for this study brings together a panel of 106 member companies that have provided usable data over several years. Every company is considered regardless of its membership of a group. Market-related data (paragraphs G to J) are supplemented by Ficam's Trades and Markets Observatory, which brings together representatives from each trade (manufacturers, shooting, image post-production, sound post-production, etc.) and each market (film, TV fiction, flux TV programs, advertising, animation) and publishes quarterly indicators, an annual synthesis of which is offered here. Outline of the technical services sector The technical services sector provides essential services in the process of creation, production, and showing of films and television programs. In particular, they provide the equipment and facilities (fixed and mobile) for shooting, provide picture editing required by the narrative (post-production and visual effects) and the reproduction of original works for showing (laboratory processing, duplication, digital copies DCP, non-digital copies). All in all, they provide the equipment for theater screening, television or Internet distribution and broadcasting, the tools required for the long-term conservation of recorded materials (digitization, archiving, storage) or the restoration of heritage works. The technical services sector therefore includes: - shooting service providers, which include equipment rental companies (cameras, lenses, cranes, lighting, sound desks, boom microphones, etc.), mobile control rooms (mobile studios especially equipped for broadcasting television events) and filming studios (recording sets); 156 results 2015

158 - image post-producers (editing, calibration); - companies in charge of digital effects; - sound post-producers, who perform sound editing of images, on the basis of sounds recorded during shooting or reproduced in the studio (auditorium); - companies responsible for dubbing or subtitling services for the French distribution of international works, the international distribution of French works or adaptation for the blind and visually impaired (audio description) or deaf and hearing impaired (subtitling); - laboratories, which are involved at different stages in the production of a work, from shooting to finishing. They include, in particular, the production laboratories (security measures for shooting data or development of rushes), post-production laboratories and laboratories providing digital copies in the various video formats required for distribution and broadcasting of works (film, television, VoD). Digital post-production is now widespread. Certain laboratories also provide a film backup service for the purpose of long-term conservation. - companies specializing in film restoration (removal or mitigation of faults in a film degraded by time), archiving or storage (storage of films and conservation of digital data); - manufacturers, or distributors, including equipment manufacturers (needed for the requirements of the various production stages) and manufacturers of consumable and nonconsumable media (film, hard drives, memory cards and media, servers) or storage and image processing systems, computer components. results

159 Organization and operators in the technical services sector A certain type of operation can be provided by several companies (e.g. lighting, machinery, shooting) and, conversely, a single company may provide several types (e.g. post-production, laboratory, archiving). Source : CNC 700 technical service companies in France In 2014, the technical services sector had almost 700 companies in France, around 200 of which were steady businesses. The sector is characterized by a few major players with a structuring role surrounded by multiple small businesses. In fact, 20% of companies achieve 80% of the sector's turnover and the top 10 companies, in terms of turnover, account for 55% of the sector's employees. Over 70% of companies in Ile-de-France Although present in most parts of the country, in 2014 the technical services sector was mostly concentrated in Île-de-France. In fact, 71% of company locations were in Île-de-France, evenly distributed between Paris and its suburbs. Beyond Paris, which is home to 36% of French technical service companies, the departments of Hauts-de-Seine (18% of companies) and Seine-Saint-Denis (9% of companies) host the most technical services companies. 158 results 2015

160 In 2014, the technical services sector had around 700 companies in France, around 200 of which were steady businesses. Geography of the technical services sector in 2014 (%)1 Île-de-France 71 Paris 35 Île-de-France (apart from Paris) 36 Rhône-Alpes 7 Brittany 7 Provence-Alpes-Côte d'azur 3 Poitou-Charentes 3 Nord-Pas de Calais 2 Aquitaine 2 other regions 6 1 Analysis of 468 technical services sector locations. Companies with 2 facilities in different locations are counted twice. Source: CNC. Mid-sized companies According to the results of the study carried out by Ficam, 52.8% of companies employed between 1 and 9 permanent employees in 2014, as in 2013, and 36.0% employed 10 to 49 (33.0% in 2013). However, on average these companies are larger than all national firms. In fact, the statistics concerning the entire industry, business and services sector in France show that 82.9% of companies employ between 1 and 9 people, and 14.2% have 10 to 49 employees (source: INSEE on January 1 st, 2013, excluding agricultural and financial firms). As regards the services sub-sector in general, the breakdown of companies with employees revealed an even more significant share of small enterprises, with 84.4% of them employing 1 to 9 people. Number of firms by permanent staff to 9 employees to 49 employees to 99 employees or more employees total Scope: companies that provided all the information from 2005 to The drop from 109 to 106 companies between 2012 and 2013 is due to the merging of subsidiaries within the same group. Source: Ficam. More than 70% of employees in the technical services are men The technical services sector is male dominated. 7 out of 10 casual employees were men in This figure is stable over time and should be viewed alongside the relatively low number of women in jobs, which are generally technical in nature. Just over two thirds of permanent employees are men. results

161 Breakdown of permanent and casual employees by gender permanent men 2,727 2,967 3,214 3,420 3,642 3,972 4,082 4,144 3,938 4,067 casual men 9,620 10,156 10,589 11,326 11,560 11,866 12,188 11,955 11,942 11,652 total men 12,347 13,123 13,803 14,746 15,202 15,838 16,270 16,099 15,880 15,719 permanent women 1,429 1,532 1,710 1,761 1,819 1,964 1,987 2,015 1,881 1,818 casual women 3,780 4,085 4,248 4,370 4,352 4,551 4,641 4,638 4,489 4,538 total women 5,209 5,617 5,958 6,131 6,171 6,515 6,628 6,653 6,370 6,356 total permanent staff 4,156 4,499 4,924 5,181 5,461 5,936 6,069 6,159 5,819 5,885 total casual staff 13,400 14,241 14,837 15,696 15,912 16,417 16,829 16,593 16,431 16,190 total 17,556 18,740 19,761 20,877 21,373 22,353 22,898 22,752 22,250 22,075 Source: Audiens. 1.1 billion in turnover in 2014 For the purposes of estimating the overall turnover of the technical services sector, only companies with over 50% of their turnover in the field of technical services are considered here. Turnover in the technical services sector was estimated at 1.1 billion in 2014, down 5.0% from For the scope of companies included in the analysis of the sector alone, that is to say 106 companies that provided usable data in 2013 and Relative stagnation or even a slight rise in turnover for technical service companies was noted in 2013 and then in 2014 (+2.0%). The digital industry is therefore undergoing consolidation (turnover up 20% between 2013 and 2014), although losses related to the decline in the photochemical activity have not been offset. Companies with turnover of more than 10 M accounted for 65.1% of total turnover on the technical services sector in 2014, compared with 66.5% in This result is explained by restructuring and consolidation of subsidiaries within groups. Between 2005 and 2014, the average turnover of the Ficam companies who responded fell from 7.1 M to 6.3 M. Turnover in the technical services sector was estimated at 1.1 billion in 2014, down 5.0% from results 2015

162 Turnover of the technical services sector ( M) technical services 1 development (%) responding companies 2 development (%) average TO , , , , , , , , , , Ficam member companies, i.e. roughly 70% of the total turnover of the technical services sector. To evaluate the overall turnover of the technical services sector, only companies achieving more than 50% of their turnover in the field of technical services were considered. 2 Companies that provided all the information to the Ficam: 109 between 2005 and 2012, 106 in 2013 and Average turnover of companies that provided all the information to the Ficam Source: Ficam. 4% of companies achieved a turnover of more than 10 M 86.7% of companies on the technical services sector achieved a turnover of less than 10 M in Most of the companies in this category had turnovers of between 1 M and 5 M. Many sound and image post-producers are included in this category. The turnover of companies between 5 and 10 M was up 46.2% while that of companies achieving less than 1 M increased by 22.2%. Automatically, the group of companies between 1 M and 5 M saw their turnover slide 21.6%. Taken individually, very few of them achieved a turnover of more than 50 M. Number of companies by turnover less than 1 M between 1 M and 5 M between 5 M and 10 M between 10 M and 20 M M and more total Scope: companies that provided all the information from 2005 to Source: Ficam. results

163 The shooting and post-production trades, main sources of revenue In order to evaluate the contribution of each sub-sector within the technical services sector to the total revenue of the sector, the turnover of each company was divided between the different services that it provides. The shooting trades saw their turnovers increase by 7.1% in Equipment rental activities increased at the expense of in-studio shooting (-15%). This latter trend can be correlated to the overall decline in the budgets of feature films over the period. Equipment rental companies benefited from a 4% rise in television production. Mobile video shooting increased by 8% to reach its highest level in seven years. It is worth noting the 34.1% fall in turnover of equipment and film manufacturers. The shooting trades contributed 44.0% of the total turnover of service providers in 2014 (42.6% in 2013). Image post-production generated 18.1% of total turnover in 2014, as in Following a decline in revenue of 16% between 2010 and 2012 (loss of the Quinta group companies, Duran-Duboi, on-line distribution, etc.), it returned to growth of 11% between 2012 and This preservation of image post-production is explained by the business driver of animation production and by visual effects (VFX). Laboratory work (including laboratory, dubbing, subtitling; distribution, duplication) achieved turnover of million, down 6.2% between 2013 and Among them, laboratory activities in the strict sense (excluding dubbing, subtitling, etc.) achieved a turnover of 35.1 M, down 24.5% on 2013 (43.7 M). This decrease primarily reflects the loss of turnover by video laboratories (-22 M between 2012 and 2014). Laboratories saw revenue slump 45% between 2010 and 2011 (liquidation of Scanlab, a subsidiary of the Quinta Group but, more generally, the decline observed in the use of film). They contributed 5.2% to the total turnover of technical service providers (6.6% in 2013). It is worth highlighting the solid activity of dubbing and subtitling companies over the past four years, despite a slight decline between 2013 and 2014 (-3.0%). This was driven by an increase in broadcasts of foreign series but also by the growing market for audio description. Growing share of turnover by the restoration sector Archiving, storage and restoration made a minimal contribution to the overall turnover of the technical services sector (3.7% in 2014 versus 2.9% in 2013). These activities have developed (turnover up 30.0%), due to the growth of restoration activities. Very few companies make restoration their main activity, but in the context of digitization encouraged by support from the CNC, a significant number of companies are positioning themselves in this field. CNC support for restoration was ring-fenced for It could be a potential and sustainable source of growth, particularly for companies whose business model was previously based on the photochemical sector These trades are critical in the chain of creation, while also complementing other activities. The emergence of new trends in image consumption, such as VoD, is already producing greater needs in technical film processing, as well as in film storage and conservation. The development of technologies and networks affects pre-existing or past program catalogs. It is here that the restoration business assumes even greater importance and that the added value of companies takes on its full potential. 162 results 2015

164 Turnover of the technical services sector by trades ( M) shooting (studio, rental companies, etc.) image post-production sound post-production post-production work archiving, storage, restoration equipment manufacturer (shooting, post-production, etc.) total Laboratory, dubbing, subtitling, showing, duplication, etc. Scope: companies that provided all the information from 2005 to Source: Ficam. Three activities captured more than half of revenues generated by exports: dubbers/subtitlers (44.8%), the shooting equipment rental companies (22.1%) and post-producers (18.7%). Turnover for export of dubbing/subtitling activities stabilized between 2013 and 2014 but has more than doubled since This trend is due to the arrival of new broadcasters, the growing demand from foreign distributors, particularly American studios, for this type of service and the development of new activities such as audio description, especially on the television sector. Shooting has seen its share of exports increase steadily since This share is no doubt related to subcontracting. Between 2013 and 2014, export turnover increased by 4.0%. Television remains the main client of technical service providers Technical service providers were mainly involved in six markets: feature films, stock television programs, flux television programs, animated programs and visual effects, multimedia and advertising or institutional films. Most companies in the sector offer services in several of these markets and it is increasingly rare for a company to work in only one market. The film and television markets (stock and flux programs) alone account for 77.9% of the overall turnover of the technical services sector. In 2014, the television market (stock and flux) generated 55.0% of resources, versus 52.4% in 2013 with turnover up 7.0%. Since 2005, television has been the primary source of revenue. In 2014, out of a turnover of million generated by television, activities on flux programs (live, variety shows, sports) accounted for million, or 51.5% of turnover generated by television versus 52.7% in The production activities of stock programs (fiction, documentaries) were estimated at M, or 48.4% of turnover generated by television (47.2% in 2013). Resources from the film sector suffered a further decline between 2013 and 2014 (-7.0%). They have been on a downward trend since 2011, i.e. a loss of more than 110 M between 2010 and 2014, reaching their lowest level in seven years. These losses are the fallout from the sharp decline in the photochemical and 35-mm printing activities in laboratories, but also the last two years of reduced investments for films produced (-9.0% between 2013 and 2014) results

165 In 2014, the TV market (stock and flux programs) generated 55.0% of the revenues of technical service companies. The third biggest market for technical services is that of advertising with 13.4% of the sector's turnover in It has been in recovery since 2012 (+15.0% between 2012 and 2014). This trend is partly due to rising post-production activities on this market (+3.0% between 2012 and 2014). Finally, animation saw its turnover slide between 2013 and 2014 (-10.0%) after a three-year upward trend. The sharp decline in 2011 was due to the acquisition of part of the Mac Guff Ligne company by Universal. In total, the industry's two main markets (television, cinema) together lost more than 85 M in turnover between 2010 and Turnover of the technical services sector by markets ( M) television (stock + flux) cinema advertising and institutional animation multimedia others¹ total ¹ Video, live shows, educational, etc. Scope: companies that provided all the information from 2005 to Source: Ficam. 95% of shooting in cinematographic fiction is digital Shooting with 35 mm film has almost disappeared and it was only used for 4.0% of projects in 2015, as in Large-sensor digital film cameras regained their predominant status in They were used in 51% of projects. Breakdown of shooting weeks by filming medium for cinematographic fiction 1 (%) SD / HDV / XDCam / DVCam video camera digital photo camera HD video camera large-sensor digital film camera 2K / 4K mm mm not specified total French-initiative cinematographic fiction for which shooting began in that year. Source: Ficam Trades and Markets Observatory. 164 results 2015

166 An exclusively digital cinema post-production For French-initiative cinematographic fiction, traditional non-digital film post-production has weakened considerably since 2010 and has become quite marginal since Digital postproduction accounted for 94% of productions in HD video post-production rose slightly compared to 2014 (+1.0%). 2K post-production has predominated since K postproduction only represented 1.0% of post-production work in the year. Post-production of cinematographic fiction 1 (%) traditional analog film HD video K digital video K digital video SD video not specified total French-initiative cinematographic fiction for which shooting began in that year. Source: Ficam Trades and Markets Observatory. HD is the preferred shooting format for TV films HD and large-sensor digital cameras represented 99.0% of the weeks of shooting dedicated to television fiction in Shooting with large-sensor digital cameras concerned 27.0% of weeks of shooting French-initiative television fiction in 2015, an increase of 9.0% compared to The HD format is still the preferred format for filming television fiction with nearly 72.0% of weeks of shooting in 2015, but it was down slightly (-7.0%) against the figure of 79.0% in The film medium is becoming extremely marginal and corresponds to a strong artistic commitment: the abandonment of 35 mm and 16 mm is now complete. Breakdown of shooting weeks by filming medium for TV films 1 (%) mm mm HD Beta/DV/SD K/4K/6K large-sensor digital camera digital photo camera not specified total French-initiative TV films whose shooting began in that year. Source: Ficam Trades and Markets Observatory. results

167 New image and sound formats Aside from image resolution, which has increased twentyfold in ten years (from SD to 4K), production hardware and channels that allow for shooting and post-production with a higher frame rate (HFR) or high dynamic range (HDR) appeared in 2014 and should become increasingly commonplace in Five French studios are equipped to work with movie theater immersive sound (11.1, but essentially DOLBY ATMOS). 46 theaters are equipped with Dolby Atmos immersive sound. However, there are no studios in France equipped to handle Dolby Vision technology. Strengthening of digital data security practices during shooting and post-production In 2014, the CST (Advanced Technical Image and Sound Commission), in association with Ficam and the AFC (French Society of Cinematographers), published a technical recommendation regarding digital data security during shooting and post-production as well as its safeguarding and short-term conservation (CST - RT Cinema 2014). Setting out the principle that rushes, regardless of their recording media, remain the most precious raw material obtained from shooting a film, and that no computer manufacturer offers a data conservation guarantee and lastly that, despite the potential for lossless duplication offered by digital media there remains a requirement for good security measures, this recommendation aims to set out the professional practices and appropriate tools for digital data film security during shooting and post-production, as well as its safeguarding and shortterm conservation. It spells out the roles and relationships between the various operators in the sector: camera rental companies, DIT (digital image technician), digital laboratories, visual effect companies, and so on. Thus, it seeks to clarify the security strategy implemented by producers, in collaboration with their supplier partners, which must be expressed as explicitly as possible in the main contractual and administrative documents. This strategy refers to the duration of the first exhibition of the work (all versions included). A significant decline in investment Investments by technical service providers fell by 29.3% between 2013 and 2014, reaching their lowest level in a decade. By way of comparison, manufacturing industries saw their investments stagnate in 2014 (INSEE figures). Each company invested an average of K in 2014, compared with K in Technical services sector investments 1 ( M) investments turnover investments / turnover (%) Investments relating to the purchase of new equipment (not counting staff training and financial valuation of new tools). Scope: companies that provided all the information from 2005 to Source: Ficam. 166 results 2015

168 Companies whose turnover exceeded 20 M were still the ones which have invested most since Investments by companies achieving turnovers of between 10 and 20 M fell sharply. They were concentrated even more in companies with turnover above 20 M (53% of total investments in 2014, versus 49% in 2013). Increase in export turnover For the technical services sector, exports are essentially due to a double phenomenon: they include not only services rendered on the international markets, but also services that are rendered in France for foreign films and which are invoiced abroad. In 2014, turnover linked to exports rose (+4.3% compared to 2013), for the third consecutive year, reaching its highest level in seven years. Its share in the total turnover of the panel of companies is estimated at 9.7%. Exports of the technical services sector ( M) exports turnover exports / turnover (%) Scope: companies that provided all the information from 2005 to Source: Ficam. Television has seen its share in export turnover grow for three years from 51% in 2012 to 56% in 2014, unlike cinema which saw its share drop from 30% in 2012 to 16% in Activities related to advertising saw their share in exports rise from 9% in 2012 to 15% in Several factors explain the dominant position of television and advertising in exports (46 M of exports or 71% of the total): with high-potential international manufacturers; the expertise of specialized companies recognized worldwide. Three activities captured more than half of revenues generated by exports: dubbers/subtitlers (44.8%), the shooting equipment rental companies (22.1%) and post-producers (18.7%). Turnover for dubbing/subtitling activities stabilized in 2014 but has doubled since This trend is due to the arrival of new broadcasters, the growing demand from foreign distributors, particularly American studios, for this type of service and the development of new activities such as audio description, especially on the television sector Shooting has seen its share of exports increase steadily since The export share for shooting is undoubtedly related to subcontracting. In 2014, exports of technical service companies amounted to 65.1 M or 9.7% of total turnover, an increase of 4.3% compared to results

169 5. INTERNATIONAL 168 results 2015

170 5.1. Export of French films and Television Programs In 2014 : million of financial flows for export in 2014 (-3.5 %), including million for television and million for film. More than 657 million in export outflow. Financial flows to French productions (films and television programs) from abroad can be understood from two complementary standpoints: sales of French films and television programs abroad and foreign investments in the form of majority or minority French coproductions. In 2014, all of these financial flows amounted to million (-3.5 % versus 2013), of which 40.6 % for television programs and 59.4 % for cinematic works. results