07 Support for Television Production

Françafrique. Compagnie des phares et balises / France 2. Scènes de ménages. Cécile Rogue / M6. Clem. David Merle / TF. 07 Support for Television Production In 200, the CNC financially supported the production of 4,43 hours of French television programming (+4% compared to 2009). Production volume for fiction, animation and cultural magazines declined, while it increased for other genres. Zig & Sharko. Xilam. Mafiosa, 3rd season. Images et compagnie / Canal+.

07 Support for Television Production Calculating financial support for production The production results in 200 concern television works receiving financial support from the CNC in 200. These data are different from that of the CSA (which refer to the channels production obligations) for two main reasons: _ CSA statistics concern television works, a broader concept than the programs supported by the CNC; _ Dates for taking productions into account are not the same: the CNC uses the date when a request for funding was made; the CSA uses the date when filming begins. In 200, the broadcaster categories were modified to differentiate between the television services according to their shareholders (public or private), and to their method of access (free or for pay). All of the broadcasters are now divided into four subgroups: _ free-to-air (FTA) channels, which include public national channels (channels from the France Télévisions group, Arte, LCP Assemblée Nationale and Public Sénat), private FTA national channels, which include the traditional channels (TF and M6) and the seven private FTA digital (DTT) channels: Direct 8, Direct Star (formerly Virgin 7), Gulli, NRJ2, NT, TMC and W9. Note that NT did not invest in support for television production in 2009 and 200. _ pay TV channels, which include Canal+ all pay cable, satellite, Internet TV and DTT channels. _ Internet TV channels accessible on the Internet: Arte Live Web (Arte s Internet TV channel), Orange France (Orange s Internet TV channel), press or communications groups channels (Corse Matin, la Provence, MSN) and Museec (formerly Medici.tv). _ given their regional characteristics, local channels are always put in a separate category. A PRODUCTION VOLUME SUPPORTED INCREASED 4% In 200, the CNC financially supported the production of 4,43 hours of French television programming (+4% compared to 2009). Production volume for fiction, animation and cultural magazines decreased while it increased for the others. Television programming budgets supported by the CNC went up 3.5% to.365 billion, while subsidies allocated by the CNC to these programs were stable at 203.8 million (-0.8%). 96.6 million (-0.6%) was given in support of production and 7. million was given in support of development (-6.%). Broadcaster investments in television production supported by the CNC increased 4.2% to 793.5 million in 200. 87.2% of this total came from FTA national channels, compared to 86% in 2009. This proportion varies according to genre, but it is still the highest (92.4% for fiction in 200, 79.4% for documentaries, 76.8% for animation and 69.7% for live shows). Private FTA DTT channels still retained a small percentage (0.2% for fiction in 200, 2.4% for documentaries, 4.8% for animation and.6% for live shows). The weight of pay TV channels (Canal+ and specialty channels) in total broadcaster contributions varied more according to genre. It was relatively limited for fiction (7.4%), but was markedly higher for documentaries (5.6%), animation (22.%) and live shows (4.3%). Separated for documentaries (4.8% of broadcaster investments) and live shows (3.2%), local channels played a secondary role in financing television production supported by the CNC. Foreign investments were stable at 93.3 million in 200, all genres taken together (-.4% compared to 2009). 2006 fiction animation documentaries cultural magazines live shows total 2007 fiction animation documentaries cultural magazines live shows total 2008 fiction animation documentaries cultural magazines live shows total 2009 fiction animation documentaries cultural magazines live shows total 200 fiction animation documentaries cultural magazines live shows total A Production Development duration budget broadcasters support support (hours) ( million) ( million) ( million) ( million) 835 73.6 59. 8.6.8 395 24.9 56. 38.2 0.6,998 32.5 48.8 58.4.6 396 37.3 25.8 3.7 0.0 434 65.4 20.7 6.4 0.0 4,058,352.8 770.4 98.3 4.0 807 69.9 487.3 76.7 3.0 34 76.5 50.0 25.6.3,832 286.3 37.3 52.9.7 405 25.4 6.4 3.6 0. 32 5.4 6.6 2.8 0.0 3,678,23.5 707.5 7.6 6.0 92 74.6 528.6 87.2 2.9 259 5.6 40. 27.9.7 2,059 320.0 47. 6.7.8 354 27.9 6.6 4.2 0.0 40 60.9 2.2 5.9 0.0 3,985,30.9 753.4 97.0 6.4 752 664.3 493.4 7.7 2.9 347 99. 55.97 34.8 2.5 2,225 345.0 63. 66.8 2. 435 34.5 23.9 4.7 0.0 486 75.7 25.0 9.8 0. 4,245,38.6 76.3 97.8 7.6 732 677.7 499.3 67.9 3.2 320 77.0 50.7 29.5 2. 2,454 395.3 94.0 73.6.7 377 30.8 22. 3.6 0.0 529 84.5 27.3 22.2 0. 4,43,365.3 793.5 96.6 7. Supported television production 72 results 200 / CNC Dossiers / nº 38 May 20

B FICTION Financing The volume of fiction produced decreased for the second year in a row in 200 (-2.6% to 732 hours). This change is mainly due to the decrease in volume ordered by private FTA national channels. Fiction accounted for 6.6% of total supported hours in 200, compared to 7.7% in 2009. Budgets rose 2% to 677.7 million in 200. As a result, average hourly costs increased 4.8% to 925.5 thousand ( 883.3 thousand in 2009). This change was due to the increase in volume of 90-minute fiction programs and by the decrease in volume of 26-minute, 52-minute and short format fiction programs. In 200, broadcasters contributed 499.3 million to the production of fiction programs, or.2% more compared to 2009, accounting for 73.7% of fiction budgets in 200. Hourly contributions by broadcasters increased 3.9% between 2009 and 200. Broadcasters contributed an average of 68.9 thousand per hour of fiction produced in 200, compared to 656. thousand in 2009. The portion of CNC contributions, the second largest source of fiction financing, decreased.8 points to 0% in 200. Financing from producers for fiction was less than 0% for the second year in a row (9.5% in 200). Foreign contributions (co-productions and pre-sales combined) recorded a net increase in 200, with the number of hours involved decreasing 9.%, amounting to 2.5 million ( 7.2 million in 2009), or an increase of 24.9% in one year. 308 hours of fiction programming were financed by foreign partners in 200 (38 hours in 2009). The increase in foreign contributions was mainly related to the increase in pre-sales. French majority works were the main programs that received foreign contributions. In 200, 306 hours of fiction of French initiative received 9.5 million in foreign contributions, of which.9 million were co-production contributions and 7.6 million were pre-sales. Contributions toward co-productions increased 68.4% between 2009 and 200 for French majority works. However, they decreased 83.% for French minority works. The volume of French minority co-productions is made up of one single work of less than two hours in 200 (two works for a volume of 6 hours in 2009). Since 2005, foreign contributions have been marginal with respect to financing fiction. In 200, they covered 3.2% of total financing for the production of French fiction. French financing French producers pre-sales in France broadcasters SOFICA CNC others foreign financing foreign co-productions pre-sales abroad total financing B 2006 2007 2008 2009 200 696.3............. 667.8........... 75.9............. 647.0............ 656.2.......................................... 75.4 78.6 76.0 6. 64.3........................................................................................... 6.3 5.8 6.5 4.3 3.4........................................................................................... 59. 487.3 528.6 493.4 499.3........................................................................................... 0.8 2.2 2.6.2.2........................................................................................... 8.6 76.7 87.2 7.7 67.9........................................................................................... 3.0 7.2 5.0 5.4 20............................................................................................ 7.4 24. 25.8 7.2 2.5........................................................................................... 0.6 6.5 0.3 2.2 2.8........................................................................................... 6.7 7.6 5.5 5.0 8.7............................................................................................. 73.6.................... 69.9.................... 74.6................... 664.3..................... 677.7......... Financing for fiction ( million) results 200 / CNC Dossiers / nº 38 May 20 73

07 Support for Television Production C Fiction Formats The volume of one-episode 90-minute programs increased 33.5% in 200 to 79 hours (34 hours in 2009). One-episode 90-minute programs represented 24.5% of the volume of fiction supported (+6.6 points). In 200, the proportion of series and soap operas fell by 7.6 points in relation to total supported fiction to 72% (527 hours, -.9%). This category can be broken down as follows: _ 7 hours of collections for which total hours declined 54.6% compared to 2009; _ 79 hours of 90-minute series and mini-series (-3.5%), constituting 0.7% of hours of fiction supported in 200 (2.% in 2009); _ 59 hours of 52-minute series and mini-series (-.4%), which accounted for 2.8% of the total volume of fiction produced in 200 (23.9% in 2009); _ 29 hours of 26-minute series and mini-series (-6%): the number of hours of fiction in this category was at its lowest level since 2006. However, 26-minute series and mini-series were still, for the fourth year in a row, the number one fiction category in 200 (-. points to 29.9%); _ 63 hours of short-format series, for which volume decreased for the first time since 2006 (-20.4%). Short-format series accounted for 8.7% of the hours of fiction supported in 200, compared to 0.6% in 2009. one-episode short films one-episode 52-minute programs one-episode 90-minute programs series and soap operas collections 90-minute series 90-minute mini-series 52-minute series 52-minute mini-series 26-minute series 26-minute mini-series short-format series total C hours cost per hour ( thousand) 2006 2007 2008 2009 200 2006 2007 2008 2009 200 3 2 6 4 20 266.0 336.3 359.2 335.0 352.9.................................................. 0 4 5 5 6 _,334.2,20.0 876.6 655.3.................................................. 77 38 52 34 79,226.5,490.2,399.,46.7,469.4.................................................. 645 642 739 599 527 764.3 720.9 699.5 766.4 765................................................... _ 9 27 5 7 _,345.4,742.0,367.,602.4.................................................. 98 70 39 55 76,208.8,285.7,304.,422.7,394.2.................................................. 52 7 0 36 3,434.8,487.7,272.,589.3,279.5.................................................. 240 80 25 7 56 953.0,020.7,33.2,70.0,260.0.................................................. _ 63 9 62 3 _,74.0,22.,73.,20................................................... 207 250 358 232 28 246.8 276. 327.7 304.5 279.9.................................................. 45.5 890.3.................................................. 48 63 7 80 63 47.5 37.2 340.2 26.2 39.8.................................................. 835 807 92 752 732 854.6 857.5 83. 883.3 925.5.................................................. Fiction program formats A one-episode program is a fiction program that is single or made of two parts depending on TV requirements, consisting of a finished story. One-episode short format programs generally do not exceed 30 minutes. A series is a sequence of fiction programs with common elements (characters and sets for example). A soap opera is a series with a story continuity from one episode to the other. Short format series generally do not exceed 5 minutes per episode. A mini-series can be defined as a series including at least three episodes, not meant to have additional episodes. A collection corresponds to a set of fiction programs gathered around a single topic, author or artistic ambition and not containing any recurrent elements. 74 results 200 / CNC Dossiers / nº 38 May 20

D TV channel investments in fiction FTA national channels In 200, the volume of fiction initiated by the FTA national channels decreased by 6 hours compared to 2009 (-%). However, total investments increased 3.3%. Public national channels increased their financial contributions by 0.3%, and the number of hours initiated increased by.3%. However, private FTA national channels decreased investments 6.8%, and the number of hours initiated decreased by 22.3%. Production volume initiated by FTA DTT channels (public or private) reached the highest level ever (23 hours in 200, compared to 5 hours in 2009), but investments fell 39.2% to.3 million in 200. FTA DTT channels accounted for 3% of total broadcaster investments in the genre (0.4% in 2009). _ Public national channels In 200, France Télévisions supported the production of 44 hours of fiction, including 434 as the primary broadcaster (+2.%), with total contributions increasing 9.5% to 270.6 million. France Télévisions thus provided 54.2% of total investments by channels to fiction production in 200 (50.% in 2009). France 2 contributed 50.2 million in 200 (-.9%) and ordered 83 hours of fiction, including 82 hours as the primary broadcaster (-2.5%). The channel initiated the production of several series, including les Beaux Mecs (8x52 Lincoln TV). It also began the production of single-episode 90-minute programs, such as le Temps du silence (x90 Flach Film Production). France 2 also continued three 26-minute morning series, including the fourth season of Foudre (26x26 Adventure Line Productions / Terence Film). Television series and soap operas made up 54.3% of fiction ordered by France 2 (72.5% in 2009), compared to 4.6% for single-episode programs (26.4% in 2009). In 200, France 3 (excluding France 3 Régions) supported the production of 98 hours, including 95 hours as the primary broadcaster (+.7%), with total investments increasing 26.% to 7 million. Plus belle la vie (268x26 Rendez-vous Production Série / Telfrance Série) accounted for 54.% of the volume ordered by France 3 in 200. The channel continued the production of several series, including Famille d accueil (8x52 GMT Productions) and initiated the production of 32 one-episode 90-minute programs, including la République des enfants (x90 Capa Drama). Of all fiction volume ordered by France 3, 73.8% consisted of series and soap operas (79.5% in 2009), compared to 24% consisted of one-episode series (9.3% in 2009). France 4 and France 5 were mainly secondary broadcasters in the production of fiction. Their total investments represented.5 million (-59.7%) and.3 million respectively (+87%) in 200. In 200, Arte supported the production of 42 hours of fiction, including 30 hours as the primary broadcaster (+0.2% compared to 2009), with total contributions increasing 23.8% to 9.7 million ( 5.9 million in 2009). The volume of fiction ordered by Arte in 200 consisted of 74.5% for single-episode series (29% in 2009), such as le Piège afghan (x90 Raspail Productions), and 23.% for series and soap operas (64.% in 2009). _ Private FTA national channels In 200, TF contributed 43.5 million (-3.3% compared to 2009) to the production of 9 hours of fiction, all as the primary broadcaster (-9.5%). Series and soap operas accounted for 82.4% of the fiction volume ordered by TF in 200 (77.9% in 2009), compared to 7.6% for one-episode series (22.% in 2009). The channel notably initiated the production of Bienvenue aux Edelweiss (x90 Telfrance) and the first season of Doc Martin (6x52 Ego Productions). Fiction works ordered in 200 by M6 represented 60 hours, including 44 hours as the primary broadcaster. Thus, the volume of fiction initiated by the channel decreased by 49.5% compared to 2009. This decrease can be explained by one 26-minute series and three 52-minute series not being renewed. Investments by the channel fell 2.7% to 26.8 million. In terms of hours, series and soap operas accounted for 79.2% of programming ordered by M6 in 200 (93.% in 2009). One-episode series accounted for 20.8% (6.9% in 2009). Short-format series made up 65.2% of fiction volume initiated by M6 in 200 (-2 hours in one year). Apart from short-format series, the channel initiated only 90-minute fiction programs, including Ma femme, ma fille, 2 bébés (x90 DEMD Productions). TMC is the only private FTA DTT channel to help in the production of fiction in 200. The channel contributed 0.8 million, which corresponds to 23 hours, all as the primary broadcaster. It initiated the production of the series les Mystères de l amour (26x52 JLA Productions). Private FTA DTT channels did not support the production of fiction as secondary or tertiary broadcasters in 200 (these contributions accounted for 30 total hours in 2009). results 200 / CNC Dossiers / nº 38 May 20 75

07 Support for Television Production Pay TV channels In 200, the volume of fiction programs initiated by pay TV channels (Canal+ and specialty channels) declined by 0 hours compared to 2009 (-.8% to 74 hours). Their total investments fell 20.% to 36.8 million in 200 ( 46 million in 2009). However, contributions by pay TV channels in the total hourly volume of fiction is still increasing (24 hours in 200, compared to 75 hours in 2009), because of the increase in the hourly volume of fiction for which they were secondary, tertiary, and fourth broadcasters. Pay TV channels accounted for 7.4% of total investments by channels in the production of fiction in 200 (9.3% in 2009) and initiated 0.% of hours produced (.2% in 2009). In 200, Canal+ contributed 28.8 million (-29.5% compared to 2009) to the production of 40 hours of fiction, including 34 as the primary broadcaster (-23.3%). In terms of hours, series and soap operas accounted for 79.9% of programming ordered by the channel in 200 (88.4% in 2009). Single-episode series accounted for 5.5% (7.2% in 2009) and the volume of series and soap operas declined by 2 hours. Canal+ notably initiated the production of Mon père, Francis le Belge (x90 Aeternam Films, LGM) and the series XIII: The Series (3x52 EuropaCorp Télévision). In 200, 6 specialty channels broadcasted on cable, Internet TV, satellite or DTT channels invested in fiction works (8 channels in 2009). There were record investments by these channels in the production of fiction. It increased 53.4% to 8 million in 200 ( 5.2 million in 2009). Their contributions accounted for.6% of all broadcaster investments in fiction supported by the CNC in 200 (.% in 2009), which corresponded to 96 hours, including 40 hours as primary broadcasters (+.4%). Comédie! contributed 3. million in 200 (five times as much as in 2009) to 22 hours of fiction, including 2 as the primary broadcaster (a volume that tripled in one year). The channel notably initiated the production of la Chanson du dimanche (5x26 Making Prod). Orange Cinéma Séries invested.7 million in 200 (.3 million in 2009) for 37 hours of fiction, including 5 as the primary broadcaster (6 hours 2009). TV5 Monde supported the production of 76 hours of fiction (+2.% compared to 2009), all as the secondary, tertiary or fourth broadcaster, for a total amount of.8 million (+3.8%). It mainly involved one-episode 90-minute series (6% of the total number of hours). Local channels In 200, eleven local channels invested in works of fiction, the same number of channels as in 2009. They helped to finance 76 hours of fiction, including 9 hours as primary broadcasters (3 hours, including 2 hours as primary broadcasters in 2009). All broadcasters taken together, their contributions increased 24.8% to.9 million. It accounted for.2% of all broadcaster investments in fiction supported by the CNC in 200 (.% in 2009). In 200, involvement by local channels in fiction concerned 5 single-episode short-format series, two short-format series, one 26-minute series and one 52-minute series. However, local channels initiated only the production of one-episode and short-format series. 76 results 200 / CNC Dossiers / nº 38 May 20

broadcasters contributions 2 hours in process total hours 2 ( million) contribution hourly cost per hour financing ( thousand) ( thousand) rate (%) 2009 200 2009 200 2009 200 2009 200 2009 200 2009 200 Public national channels 3 Private FTA national channels 4 Including private FTA TNT (DTT) 5 total FTA channels pay TV channels local channels Internet TV channels general total D 47 464 429 467 263.2 290.3 239 86 25 20 83.6 7. 3 23 33 23 0.8 656 650 670 668 446.7 46.4 84 74 75 24 46 36.8 2 9 3 76 0.4 0.9 3 2 0.2 0.2 752 732 752 732 493.4 499.3 No. of hours ordered and investments in fiction by broadcasters As first broadcaster. 2 All broadcasting ranks taken together. 3 France Télévisions + Arte because LCP-AN and Public Sénat have not invested in fiction in 2009 and 200. 4 TF + M6 + private FTA TNT. 5 Direct 8 + NRJ2 + TMC + W9 because Gulli, NT and Direct Star (former Virgin 7) have not invested in fiction in 2009 and 200. Public national channels 2 Private FTA national channels 3 Including private FTA TNT (DTT) 4 total FTA channels pay TV channels local channels Internet TV channels general total D 855 863.7 620. 69 72.5 7.7 974.4,05.2 765 883.8 78.5 80 258.3 4 50 36.9 58. 32.4 898.6 932.8 672.9 694.8 74.9 74.5 868.7 93.7 530.8 449.7 6. 48.3 59.7 326.7 29.9 75 8.7 23 883.3 925.5 646.7 662.7 73.2 7.6 Cost and hourly investment in fiction by broadcasters As first broadcaster. 2 France Télévisions + Arte because LCP-AN and Public Sénat have not invested in fiction in 2009 and 200. 3 TF + M6 + private FTA TNT. 4 Direct 8 + NRJ2 + TMC + W9 because Gulli, NT and Direct Star (former Virgin 7) have not invested in fiction in 2009 and 200. results 200 / CNC Dossiers / nº 38 May 20 77

07 Support for Television Production E DOCUMENTARIES Financing With a total of 2,454 supported hours in 200 (+0.3% compared to 2009), documentaries continued the increase that began in 2008. Budgets for documentaries followed the same trend as did volumes (+4.6% to 395.3 million), with an average hourly cost decreasing slightly to 6. thousand (+3.9%). Broadcasters increased their participation in financing documentaries by 9% compared to 2009 to 94 million. In 200, they covered 49.% of total budgets for the genre (+.8 point), an average hourly contribution increasing markedly to 79. thousand ( 73.3 thousand in 2009). Subsidies from the CNC given to French documentary producers were 73.6 million in 200, a 0.% increase compared to 2009. In 200, CNC support covered 8.6% of total financing for the genre (-.8 points compared to 2009). In addition, 55.6% of total supported hours by the CNC involved documentaries. This percentage reached 52.4% in 2009. Foreign contributions to French documentary production French financing French producers pre-sales in France broadcasters SOFICA COSIP others foreign financing foreign co-productions pre-sales abroad total financing E 2006 2007 2008 2009 200. 296.7.................... 270.4.................... 298.4.................... 324.4.................... 372.6.......... 55.5 49.5 54.0 56.2 67.3........................................................................................... 5.5 5.2 5.8 4.2 5.5............................................................................................. 48.8.................... 37.3.................... 47..................... 63.................... 94.0.......... 0. 0. 0.4 0.3 0.2........................................................................................... 58.4 52.9 6.7 66.8 73.6........................................................................................... 28.5 25.4 29.4 33.9 32.0........................................................................................... 24.9 6.0 2.5 20.6 22.6........................................................................................... 5.8 9.5 5.5 2.9 3.7........................................................................................... 9. 6.5 6. 7.7 9.0............................................................................................. 32.5................... 286.3.................... 320.0.................... 345.0.................... 395.3.......... Documentary financing ( million) F increased 0% to 22.6 million, of which 9 million were from pre-sales (+6.6%) and 3.7 million were from co-production contributions (+6.%). 467 documentary hours were French majority co-productions in 200, and received 8 million in total foreign financing, including 9.9 million from co-productions and 8. million from pre-sales. Furthermore, 20 hours were for French minority programming, which received 4.7 million in foreign financing, of which 3.8 Million in co-production support and.8 million from pre-sales. In 200, foreign financing covered 5.7% of documentary budgets, compared to 6% in 2009. Channel investments FTA national channels In 200, the amount of documentary hours ordered by FTA national channels continued to increased and amounted to,47 hours (+2.9% compared to 2009). This increase is due to the vitality of private FTA DTT channels and M6, which have ordered respectively 94.3% and 98.8% of the total between 2009 and 200. Documentary programming received 54. million from FTA national channels in 200, an increase of 22.3% compared to 2009. _ Public national channels In 200,,32 documentary hours were ordered by public national channels, compared to,09 hours in 2009 (+2%). Their investments increased 5.6% to 23.6 million, all broadcasters taken together. In 200, public channels provided funding for 46.% of supported documentary hours and 63.7% of all broadcaster contributions for this genre (49.9% and 65.6% respectively in 2009). All channels taken together, France Télévisions ordered 863 documentary hours (+4.% compared to 2009), including 833 as the primary broadcaster (+5.%) with total investments of 93.4 million (+26.5%). France 3 (France 3 Régions included) ordered 332 documentary hours, including 32 as the primary broadcaster (373 hours, including 352 as the primary broadcaster in 2009). This decrease in volume was accompanied by a 5.7% increase in investments ( 32.2 million). In 200, France 3 and its regional units accounted for 2.7% of documentary orders and 6.6% of financing for the genre (5.8% and 8.7% respectively in 2009). The channel s regional units invested 7.3 million for 52 hours of documentary programming, including 37 as primary broadcasters ( 9.2 million for 96 hours, including 66 as primary broadcasters in 2009). France 2 significantly increased its documentary order volume from 40 hours in 2009 (including 34 as the primary broadcaster) to 74 hours in 200 (including 68 as the primary broadcaster). The channel invested 76.4% more in its programs ( 3.5 million). In 200, France 5 ordered 254 hours, including 243 as the primary broadcaster (238 hours, including 22 as the primary broadcaster in 2009). Its financial contribution increased 5.6% to 25.3 million. Arte financed 284 documentary hours in 200, including 277 as the primary broadcaster (292 hours, including 288 as the primary broadcaster in 2009). The channel invested 29.7 million toward financing its programs, which is a decrease of 8.2% compared to 2009. 78 results 200 / CNC Dossiers / nº 38 May 20

broadcasters contributions 2 hours in process total hours 2 ( million) contribution hourly cost per hour financing ( thousand) ( thousand) rate (%) 2009 200 2009 200 2009 200 2009 200 2009 200 2009 200 Public national channels 3 Private FTA national channels 4 Including private FTA TNT (DTT) 5 total FTA channels pay TV channels local channels Internet TV channels general total F,09,32,45,6 06.9 23.6 94 34 208 346 9 30.5 7 38 83 43 2.5 4.7,303,472,35,507 26 54. 668 693 855 94 28. 30.3 253 286 332 376 8.8 9.4 _ 3 _ 9 _ 0. 2,225 2,454 2,225 2,454 63. 94 No. of hours ordered and investments in documentary films by broadcasters As first broadcaster. 2 All broadcasting ranks taken together. 3 France Télévisions + Arte + LCP-AN + Public Sénat. 4 TF + M6 + private FTA TNT. 5 Direct 8 + Gulli + NRJ2 + TMC + Direct Star (former Virgin 7) + W9 because NT has not invested in documentary film in 2009 and 200. Public national channels 3 Private FTA national channels 4 Including private FTA TNT (DTT) 4 total FTA channels pay TV channels local channels Internet TV channels general total F 20 28.8 93.7 06.7 46.6 48.8 47.8 4.3 96.9 89.3 65.5 63.2 74. 79.6 32.5 33.7 43.8 42.3 93. 200.9 94.2 02.7 48.8 5. 00.8 99. 37 39.2 36.7 39.6 02.6 07.4 27.2 26.2 26.6 24.4 _ 60.8 _ 6.8 _.2 55. 6. 69.4 75.7 44.7 47 Cost and hourly investment in fiction by broadcasters As first broadcaster. 2 France Télévisions + Arte + LCP-AN + Public Sénat. 3 TF + M6 + private FTA TNT. 4 Direct 8 + Gulli + NRJ2 + TMC + Direct Star (former Virgin 7) + W9 because NT has not invested in documentary film in 2009 and 200. results 200 / CNC Dossiers / nº 38 May 20 79

07 Support for Television Production _ Private FTA national channels In 200, private FTA national channels increased their documentary order volume (34 hours initiated, compared to 94 in 2009). Their contributions also increased, but to a lesser extent (+60% to 30.5 million). The total number of documentary hours ordered by M6 doubled, going from 82 hours initiated in 2009 to 63 hours in 200. Investments by the channel increased in the same proportion to 6.8 million, compared to 8 million in 2009. Total documentary hours ordered by TF fell slightly to 40 hours in 200, all as the primary broadcaster (43 hours, including 4 as the primary broadcaster in 2009). The channel contributed a total of 9 million in documentary production (+5.6%). In 200, six private FTA DTT channels invested in documentaries, as in 2009. These channels practically doubled their investments ( 4.7 million, compared to 2.5 million in 2009), with the number of hours growing significantly to 43 hours, including 38 as primary broadcasters (83 hours, including 7 as primary broadcasters in 2009). They accounted for 5.6% of broadcaster documentary orders and 2.4% of broadcaster contributions (3.2% and.5% respectively in 2009). 7.9% of CNC subsidies were given to producers of documentaries for private FTA DTT channels, compared to 4.2% en 2009. With 2.3 million invested in 73 hours of programming, including 67 as the primary broadcaster (.5 million in 55 hours, including 48 as the primary broadcaster in 2009), NRJ2 increased its financing in the genre. TMC also increased its contribution with.2 million allocated to 36 documentary hours in 200, all as the primary broadcaster ( 0.6 million for 8 hours, including 4 hours as primary broadcaster in 2009). Pay TV channels In 200, the number of documentary orders from pay TV channels increased 0.% to 94 hours, including 693 as primary broadcasters (855 hours, including 668 as primary broadcasters in 2009). These channels provided upwards of 30.3 million in financing for their programs, which was 8.% more than in 2009. All pay TV channels accounted for 28.2% of total hours ordered by broadcasters in 200 and 5.6% of investments by broadcasters (30% and 7.2% respectively in 2009). Support by the CNC given to producers working with pay TV channels as primary broadcasters decreased.8% to 7.5 million. This support covered 25.5% of programming budgets ordered by these channels (26.5% in 2009). Canal+ continued to order a high volume of documentaries (-5.9% to 80 hours as the primary broadcaster). Investments by this channel for documentaries were 9.7 million, a decrease of 3.5% compared to 2009. 49 specialty channels helped to finance at least one documentary program in 200 (47 in 2009). Planète financed 99 hours, including 44 as the primary broadcaster, with total investments of 3 million (8 hours, including 40 as the primary broadcaster for 2 million in 2009). Voyage invested 2. million (+5.6%) in a number of relatively stable hours (65 hours, including 58 as the primary broadcaster, compared to 62 hours, including 55 as the primary broadcaster in 2009). Local channels In 200, 48 local broadcasters invested 9.4 million in the production of 376 documentary hours, including 286 as primary broadcasters (46 broadcasters contributed 8.8 million for 332 documentary hours in 2009, including 253 as primary broadcasters). Local channels accounted for.7% of documentary hours produced in 200 (.4% in 2009). CNC subsidies given to producers working with local channels in 200 reached 7.4 million (+2.3% compared to 2009). This support covered 24.2% of programming budgets ordered by these channels (25.5% in 2009). Vosges TV (formerly Images Plus Epinal) financed 42 hours, including 37 as the primary broadcaster, with total investments of million (50 hours, including 32 as the primary broadcaster, with investments of.2 million in 2009). Cap Canal (Lyon) invested.9 million (-2%), for an equally decreasing number of hours (30 hours, including 29 as the primary broadcaster, compared to 42 hours all as the primary broadcaster in 2009). Internet TV channels Arte Live Web is the only Internet TV channel to order documentaries supported by the CNC in 200. It financed 9 hours, including 3 as the primary broadcaster for a total of. million. 80 results 200 / CNC Dossiers / nº 38 May 20

G ANIMATION Financing Changes in animation production occur within the framework of biennial or triennial cycles. 200 is the second year of the cycle that began in 2009. Production volume decreased 7.8% (-27 hours compared to 2009). This change is mainly due to the decrease in volume of orders by private FTA national channels. However, the decrease seen in the second year of the cycle in 200 is clearly less marked than in previous cycles (-9.9% on average during the previous three cycles). Animation production volume thus represented 320 hours in 200, compared to 347 hours in 2009. Animation accounted for 7.3% of total programming hours supported by the CNC in 200, compared to 8.2% in 2009. The decrease in animation programming budgets was more marked than the decrease in volume of hours produced. In effect, total budgets for animation works decreased.% to 77 million in 200 ( 99. million in 2009). As a result, hourly costs decreased 3.7% to 552.9 thousand, compared to 573.8 thousand in 2009. These decreases are mainly due to the 48.6% decrease in volume of 23 to 26-minute series, hourly costs for which are higher than for other series, and by the 32.6% increase in volume in 8-minute series. French financing for producing animations decreased 9% to 34.4 million in 200 ( 47.8 million in 2009). For the first time, they accounted for more than three quarters (76% in 200) of animation programming budgets supported by the CNC (74.2% in 2009). Contributions by French producers decreased slightly (-3.5%) to 36.2 million in 200 ( 37.5 million in 2009). However, broadcaster contributions decreased by 9.4% to 50.7 million ( 56 million in 2009). Their share of financing animations continued to increase, going from 28.% in 2009 to 28.7% in 200. On average, broadcasters contributed 58.5 thousand per hour of animation in 200, compared to 6.3 thousand in 2009 (-.7%). After a sharp increase in 2009, pre-sales in France decreased 22.3% in 200. CNC contributions for animation programming decreased by 5.3% in 200. Support covered 6.7% of budgets (7.5% in 2009). Animation is the genre of programming supported by the CNC for which foreign financing was most substantial. Foreign contributions covered 24% of animation programming budgets in 200, compared to 25.8% in 2009 and 45.6% in 200. Foreign financing decreased 7.2% to 42.5 million in 200. This decrease can be explained by the 44.3% decrease in pre-sales abroad. However, co-production contributions were stable (+0.4%). In 200, 229 hours of animation received foreign financing (co-productions and pre-sales), i.e., 7.7% of total volume produced. The previous year, 69.6% of the volume of animation produced received foreign financing (242 hours). In 200, 77 hours of French majority co-productions were initiated, with total foreign contributions of 23.4 million, including 4 million in co-production contributions and 9.3 million in pre-sales (98 hours with foreign contributions of 27. million in 2009). At the same time, 53 hours of French minority co-productions were produced, financed with 9.2 million in foreign contributions, including 7.2 million in co-production contributions and.9 million in pre-sales (43 hours with foreign contributions of 24.2 million in 2009). French financing French producers pre-sales in France broadcasters SOFICA COSIP others foreign financing foreign co-productions pre-sales abroad total financing G 2006 2007 2008 2009 200. 58............. 23.0........... 08.7............. 47.8........... 34.4........................................... 42.3 32.6 27.4 37.5 36.2........................................................................................... 0.2 9.2 6.4 2.2 9.5........................................................................................... 56. 50.0 40. 56.0 50.7........................................................................................... 5.5.2 2. 3.7 2.9........................................................................................... 38.2 25.6 27.9 34.8 29.5........................................................................................... 5.8 4.4 4.7 3.7 5.7........................................................................................... 56.7 53.5 42.9 5.4 42.5........................................................................................... 32.7 35.2 25.7 3. 3.3........................................................................................... 24.0 8.3 7.2 20.2.3............................................................................................. 24.9.................... 76.5.................... 5.6.................... 99..................... 77.0......... Animation financing ( million) results 200 / CNC Dossiers / nº 38 May 20 8

07 Support for Television Production H Channel investments FTA national channels In 200, the volume of animation initiated by FTA national channels decreased by 29 hours compared to 2009 (-.%). Their total investments decreased 5.2%. Public national channels decreased their financial contributions by 2.8% and slightly decreased the number of hours (-.8%). The decrease in volume initiated by the private FTA national channels was more marked (-9.7%), but followed a sharp increase in 2009 (+45.3%). For FTA DTT channels, production volume initiated by Gulli increased 63% to 27 hours in 200. Its total investments reached 2.4 million (+5.8%). _ Public national channels In 200, France Télévisions supported the production of 23 hours of animation, all as the primary broadcaster (-2.4%). Its total contribution decreased 3% to 2.5 million. France Télévisions thus contributed 42.3% of investments of all channels for the production of animation in 200 (44.% in 2009). France 3 (excluding France 3 Régions) decreased its input by 38.3% to.4 million in 200, for a total of 59 hours, all as the primary broadcaster (-38.8%). The channel notably ordered the production of two series: Charlot (04x6 Method Animations, LP Animation) and the second season of Wakfu (26x23 Ankama Animations). France 5 invested 0 million in 64 hours of programming, all as primary broadcaster ( 3.4 million for 3 hours, including 2 as primary broadcaster in 2009). France 5 notably initiated the production of B.R.I.C.O. Club (52x Futurikon). _ Private FTA national channels TF contributed 0. million (-6.% compared to 2009) toward 59 hours of animation, including 48 as the primary broadcaster (-22.8%). As the primary broadcaster, TF initiated into production six series, including the adaptation of Sherlock Yack (52x2 Mondo TV France) and the first season of Rekkit the rabbit (52x2 Marathon Media). Contributions by M6 for animation decreased 45% to 4.9 million in 200, after a sharp increase in 2009. Its contributions were below its average annual contribution of the last five years. The channel financed 35 hours, including 34 as the primary broadcaster (73 hours, including 57 as the primary broadcaster in 2009). M6 notably initiated the production of the series Martine (52x2 Les Armateurs / Expand Drama). In 200, Gulli was the only FTA DTT channel to invest in animation. Its investments increased 5.8% to 2.4 million for 38 hours, including 27 as the primary broadcaster (+63%). The channel initiated the production of five series, including les Gees (52x3 Studio Hari) and Fish n Chips (52x2 Timoon Animation). Pay TV channels In 200, total investments by pay TV channels (Canal+ and specialty channels) in the production of animation programming supported by the CNC increased 4.6% to.2 million ( 9.8 million in 2009). The total volume of animation programming in which pay TV channels were involved increased 2.5% to 79 hours. Pay TV channels totaled 22.% of total broadcaster investments in the production of animation in 200 (7.5% in 2009) and initiated 25.5% of hours (23.9% in 2009). Investments by Canal+ in animation increased 2.2% to 5.3 million in 200. The channel financed 37 hours of animation, including 36 as the primary broadcaster (50 hours, including, all as the primary broadcaster in 2009). Canal+ initiated the production of nine series, including the second season of Kaeloo (52x7 Cube Creative Productions) and Plankton Invasion (39x7 TeamTO). Nine specialty channels broadcasted on pay cable, Internet TV, satellite or DTT channels helped to finance animation programming (the same number as in 2009). These channels financed 58 hours of animation programming (+4.9% compared to 2009), including 45 as primary broadcasters (+38.9%). Their total contribution rose 6.7% to 6 million. Contributions from these channels accounted for.8% of all broadcaster contributions to the genre (9.% in 2009). Contributions by the Disney Channel, the primary investor among specialty channels in animation in 200, increased 95.% to 3.4 million for 85 hours of programming (52 hours in 2009), including 2 as the primary broadcaster (0 hours in 2009). Télétoon s contribution went from.3 million in 2009 to.8 million in 200 for 26 hours as the secondary broadcaster (22 total hours, including hour as the primary broadcaster in 2009). Investments by Canal J decreased 64.2% to.7 million. The channel financed a total of 27 hours of animation, including as the primary broadcaster (37 hours, including 4 as the primary broadcaster in 2009). Local channels In 200, local channels invested.5 M in animation programming supported by the CNC, compared to 0.2 million in 2009. Eight channels (four channels in 2009) supported the production of 6 hours of programming, including 6 as primary broadcasters (3 hours, including 2 as primary broadcasters in 2009). They only supported the production of single episodes or series of less than 8 minutes. 82 results 200 / CNC Dossiers / nº 38 May 20

broadcasters contributions 2 hours in process total hours 2 ( million) contribution hourly cost per hour financing ( thousand) ( thousand) rate (%) 2009 3 200 2009 3 200 2009 3 200 2009 2 200 2009 2 200 2009 2 200 Public national channels 4 Private FTA national channels 5 Including private FTA TNT (DTT) 6 total FTA channels pay TV channels local channels Internet TV channels general total H 26 23 36 23 24.7 2.5 36 09 80 3 2.3 7.5 6 27 42 38.6 2.4 262 233 304 249 46 39 83 82 75 79 9.8.2 2 6 3 6 0.2 0.5 347 320 347 320 56 50.7 No. of hours ordered and investments in animation by broadcasters As first broadcaster. 2 All broadcasting ranks taken together. 3 Corrected data. 4 France Télévisions + Arte because LCP-AN and Public Sénat have not invested in animation in 2009 and 200. 5 TF + M6 + private FTA TNT. 6 Only Gulli appears in this subtotal as other private FTA TNT channels have not invested in animation in 2009 and 200. Public national channels 3 Private FTA national channels 4 Including private FTA TNT (DTT) 5 total FTA channels pay TV channels local channels Internet TV channels general total H 549.6 598.9 64.9 74.3 30 29. 63.3 573.3 38.3 40.9 2.9 24.6 334.9 530.5 45.2 74.9 3.5 4. 592. 586.9 5 58.6 25.5 27 524.9 477.6 75.7 89.3 4.4 8.7 24.6 247 60.7 60.2 25. 24.4 573.8 552.9 32.4 39.2 23. 25.2 Cost and hourly investment in animation by broadcasters As first broadcaster. 2 Corrected data. 3 France Télévisions + Arte because LCP-AN and Public Sénat have not invested in animation in 2009 and 200. 4 TF + M6 + private FTA TNT. 5 Only Gulli appears in this subtotal as other private FTA TNT channels have not invested in animation in 2009 and 200. results 200 / CNC Dossiers / nº 38 May 20 83

07 Support for Television Production I LIVE SHOWS Financing In 200, the number of live show hours supported increased 8.9% to 529 hours, the highest level in 0 years. Budgets for these works increased at a slightly higher rate than volume (+.6% to 84.5 million). Thus, average hourly costs increased 2.5% to 59.7 thousand. Live shows accounted for 2% of total hours supported in 200 (+0.6 points compared to 2009) and accounted for.3% of contributions by the CNC (+.3 point). In 200, broadcaster support in the production of live shows increased 9.4% to 27.3 million. Their hourly contributions were semi-stable at 5.6 thousand ( 5.4 thousand in 2009). Broadcasters covered 32.3% of production budgets for the genre (33% in 2009). Contributions by French producers increased 7% in 200 ( 25 million). Their share in production budgets decreased.3 points to 29.6%. CNC subsidies increased 2% to 22.2 million in 200. The portion of support from the CNC in financing supported live show works remained stable at a little bit less than one quarter (26.2%). French financing French producers pre-sales in France broadcasters SOFICA COSIP other foreign financing foreign co-productions pre-sales abroad total financing I 2006 2007 2008 2009 200 6.3 47.5 57. 7.3 78.3........................................................................................... 9.2 4.4 6.5 23.4 25.0........................................................................................... 0.6. 0.9 0.8 0.8........................................................................................... 20.7 6.6 2.2 25.0 27.3........................................................................................... 0.0 0.0 0.0 0. 0.0........................................................................................... 6.4 2.8 5.9 9.8 22.2........................................................................................... 4.5 2.6 2.6 2.2 2.9........................................................................................... 4. 3.9 3.7 4.5 6.3........................................................................................... 2.0 2.5 2.2 2.4 4.5........................................................................................... 2..4.5 2..7........................................................................................... 65.4 5.4 60.9 75.7 84.5........................................................................................... Live shows financing ( million) All together, French financing toward the recording and broadcasting of live shows increased by 9.8% in 200, still covering the majority of production costs (92.6%) of the genre. Foreign contributions increased almost 40% (39.9%) to 6.3 million. Their share was 7.4% in 200 of total live show financing (+.5 points compared to 2009). The amount of foreign co-production contributions increased 09.6% to 5 million in 200. Pre-sales abroad decreased 39% to.3 million. In total, 86 hours of live shows received foreign financing in 200 (69 hours in 2009), including 67 hours of majority co-productions (5 hours in 2009) and 9 hours of minority co-productions (8 hours in 2009). Channel investments FTA national channels In 200, FTA national channels invested 9. million in the production of live show programs, an increase of 8.5% compared to 2009. The volume of hours initiated by the FTA national channels was stable at 25 hours in 200 (+0.6%). _ Public national channels In 200, public national channels invested 8.8 million (+6.9%) into producing 302 hours of live shows (+29.7%), including 245 as primary broadcasters (+.8%). Thus, they accounted for more than two thirds (68.8%) of total broadcaster contributions to this genre and 57.% of supported hours (64.4% and 48% respectively in 2009). The number of hours of live shows ordered by Arte decreased 8% to 6 hours 200 including 4 hours as the primary broadcaster (-43.9%). The channel decreased its financial contribution to 3.9 million (-6%). France Télévisions greatly increased its order volume of live shows in 200 to 245 hours, including 204 hours as the primary broadcaster (respectively 49.9% and 39.7% more than in 2009). Financial contributions by the group increased 30.3% to 4.9 million. In 200, France 2 continued to increase its order volume of live shows to 96 hours, including 73 hours as the primary broadcaster (respectively 20% and 24.4% more than in 2009). The channel contributed 7.8 million, an increase of %. France 3 (including France 3 Régions) greatly increased its contribution to live shows in 200. Thus, the channel contributed 4.9 million to the production of 96 hours of live shows, including 69 as the primary broadcaster (57 hours, including 55 as the primary broadcaster in 2009). France 4 contributed 845.4 thousand (+7.8%) to financing 28 hours of programming (+23.6%) including 8 as the primary broadcaster. _ Private FTA national channels Private FTA national channels ordered hours of live shows in 200 (a drop of 70.% compared to 2009), with financial contributions of.2 million (-83.%). TF decreased its investments in live shows by more than two thirds in 200. The channel invested 87.5 thousand in 5 hours of live shows ( 37.7 thousand for 4 hours in 2009) having to do with concert recordings (one classical music concert and two jazz concerts). M6 did not order any live show hours in 200. It invested 52 thousand in 4 hours of live shows in 2009. Among the private FTA DTT channels, Direct 8 invested 0 thousand in 5 hours of live shows in 200 ( 9 thousand for 3 hours in 2009). More than 40% of the channel s contributions in this genre were devoted to the one production for recording the show of the circus, KDO (x88 - Euro Media France / Comédie). Pay TV channels In 200, 3 specialty channels invested in recording and broadcasting live shows, or three times more than in 2009. These channels increased total contributions to 3.9 million (+ 8.5% compared to 2009) and financed 294 hours of live shows, including 24 as primary broadcasters (239 hours, including 60 hours as primary broadcasters in 2009). 84 results 200 / CNC Dossiers / nº 38 May 20

PUBLIC Pay TV channels initiated 40.4% of all live show orders and provided 4.3% of broadcaster contributions for the genre (32.8% and 4.4% respectively in 2009). The CNC s contributions to live show programming ordered by pay TV channels increased 4.3% to 6.7 million in 200. Mezzo was the most active channel. It invested.8 million in 97 hours, including 4 as the primary broadcaster (.4 million in 42 hours, including 79 as the primary broadcaster in 2009). MCM is the second most active pay TV channel helping to finance live shows. In 200, its contributions decreased 37% to.7 million for 27 hours of shows (43 in 2009). Like in 2009, these contributions were only as primary broadcaster in the recording of concerts. Local channels Twenty-six local channels invested in live shows in 200 (27 in 2009). 3 of them invested as primary broadcasters, with the rest as secondary or tertiary broadcasters. In 200, local channels invested 3.6 million in 88 hours of programming, including 52 as primary broadcasters ( 3.7 million toward 84 hours, including 76 as primary broadcasters in 2009). CNC support given to live show producers working with local channels decreased 35.2% to.6 million. Internet TV channels Arte Live Web is the Internet TV channel that ordered the most hours of live shows: in 200, it helped to finance 48 hours, including 2 as the primary broadcaster. It invested 54 thousand in the genre, compared to 48.5 thousand in 2009. All of the results for the support for television production by the CNC is available in the study on La production audiovisuelle aidée en 200 (television production support in 200), published in April 20 and is viewable online at www.cnc.fr. VoD 0.4 million 5 video/vod tax 32.2 million 505.5 million 4 video retail TST (TV publishers and distributors tax) 422.3 million 6 support 203.8 million 3 6.5 million Principaux flux financiers de la production audiovisuelle aidée en 200 (M ) contribution to public audiovisuel services 2,334.2 million public national channels regional funds 47.5 million private free national channels subscriptions television service distributors subscriptions 29.7 million advertising 6,445.5 million pay-tv channels (Canal+ and thematic channels) 85.2 million advertisers SUPPORTED TELEVISION PRODUCTION advertising 964.9 million 20. million 2 93.3 million 4.3 million foreign contributions 2009 funds corresponding to investments made in 200 and January 20. SOFICAs must invest 90% of the funds they collect in film and television production. 2 Provisional sum for aid foreseen within the conventions between the CNC and regional authorities in 200. 3 Total CNC support: production aid + development aid (not including subsidies carried over from previous years). 4 Non-film retail sales. 5 00% estimated revenue of television programs on VoD, including taxes (excluding unlimited subcriptions). 6 Tax on the revenues of television service publishers and distributors. Sources: Television works aided by the CNC (fiction, documentaries, animation, live shows, cultural magazines). Kantar Media (gross advertising investments). Finance Law for 200. CNC-GfK video barometer. GfK-NPA Conseil VoD barometer. consumption advertising local channels SOFICA 63.7 million 5.3 million results 200 / CNC Dossiers / nº 38 May 20 85

The Princess of Montpensier by Bertrand Tavernier. Studio Canal. Romantics Anonymous by Jean-Pierre Améris. Studio Canal. Lily Sometimes by Fabienne Berthaud. Haut et court. People s Names by Michel Leclerc. Michaël Crotto / UGC Distribution. The Illusionist by Sylvain Chomet. Pathé Distribution.

A View of Love by Nicole Garcia. Jean-Marie Leroy / 200 Les Productions du Trésor / EuropaCorp / France 3 Cinéma / Pauline Angel. On Tour by Mathieu Amalric. Le Pacte. Black Venus by Abdellatif Kechiche. MK2 Distribution. 08 Distribution In 200, 575 films were distributed as first-run releases, 2.2% less than in 2009. This decrease was due to non-european and non-american films (-9 movies) and to American films (-9 movies). A Screaming Man by Mahamat-Saleh Haroun. Pyramide Distribution. Sarah s Key by Gilles Paquet-Brenner. Julien Bonet / UGC Distribution / 200 Hugo Productions / Studio 37 / TF Droits audiovisuels / France 2 Cinéma.

08 Distribution Methodology All feature-length motion pictures recently released in theaters in France were included. Specifically considered as new were any films commercially released nationwide and any commercial film screened during one-time events, such as festivals or retrospective tributes. The number of release prints and genres appearing in this chapter were drawn from information used in press. The number of prints for a film corresponds to the prints published for the first week of theater exhibition. It includes prints on traditional film as well as prints or files for digital projection. A TYPOLOGY OF NEW FILMS In 200, there were 575 first-run releases in France, 3 fewer films than in 2009. However, 200 still posted high results for the decade. This decrease was due to non-european and non-american films (-9 movies) and American films (-9 movies). The number of French films increased by 2, reaching the highest level of the decade. However, among national films, French majority co-productions declined markedly to 50 films in 200, compared to 64 films in 2009. The significant increase in 00% French films (+9 films compared to 2009 to 63 films) and the number of minority co-productions (+7 films to 57 movies) made up for this decline. French films represents 47.0% of all first-run releases in 200. This was the highest level of the past decade and has grown steadily since 200 (40.7%). In 200, the proportion of American films in the total number of first-run releases equaled 25.0% (27.7% in 2009 and 28.% in 2008). 44 American films were released in France in 200, compared to 63 in 2009. This is the lowest level ever recorded in the last decade. The number of new European films rose markedly (+23 films) and reached the highest level of the decade with 20 films. This increase reflects a much higher number of Spanish (+8 films), Italian (+6 films) and German (+4 films) films shown in France. At 4, the number of films from other countries declined significantly (-9 films), notably due to the decrease in the number of Japanese (-6 films) and Chinese (-3 films) films. % 200 2002 2003 2004 2005 2006 2007 2008 2009 200 200 200 2002 2003 2004 2005 2006 2007 2008 2009 200 French American European Other films films films films total 205 57 8 6 504................................................................................................................ 208 47 75 57 487................................................................................................................ 27 55 76 6 509................................................................................................................ 238 69 8 7 559................................................................................................................ 236 52 04 58 550................................................................................................................ 242 76 03 68 589................................................................................................................ 262 75 78 58 573................................................................................................................ 240 56 98 6 555................................................................................................................ 268 63 97 60 588................................................................................................................ 270 44 20 4 575................................................................................................................ USA 00% Fench French majority French minority Great Britain Japan Spain Germany Italy Canada China other countries total. 57................. 47............... 55................ 69................ 52................ 76................ 75................ 56................ 63................ 44.............. 25,0......... 45................ 46................ 32................ 34................ 4................ 42................ 7................ 55................ 54................ 63.............. 28,3........ 38 34 5 73 52 55 38 43 64 50 8,7................................ 22 28 34 3 43 45 53 42 50 57 9,9................................ 33 9 28 27 35 33 30 25 34 34 5,9................................ 3 3 9 5 0 2 9 3 0 8 3,................................ 9 8 6 2 3 6 9 3 2,3................................ 4 5 0 9 3 6 3 7 3 2,3................................ 3 6 7 5 0 7 3 7,2................................ 5 7 4 4 4 6 6 4 4 3 0,5................................ 9 9 5 8 4 2 7 8 5 2 0,3................................ 56 49 60 62 63 75 58 75 75 7 2,3................................. 504................ 487................ 509................ 559................ 550................ 589................ 573................ 555................ 588................ 575............ 00,0.......... A Number of first-run releases A Nationality of first-run releases Films funded fully by, or with majority or minority participation from, French associates. 88 results 200 / CNC Dossiers / nº 38 May 20

B Nearly 23% of new films were comedies In 200, 3 comedies (of which 57 were French films and 52 were American films) were distributed for the first time in France. 22.8% of new films released in 200 were comedies. 0 comedy-dramas were released, of which 6 were French and 5 were American. These two genres alone accounted for 4.9% first-run releases. Drama was in second place with 26 films released in 200. There were 76 first-run documentaries in 200, compared to 7 in 2009 and 58 in 2008. 52 were French documentaries, 4 were European, 8 were American, one was Canadian (Encirclement) and one was Nigerian (Al leessi une actrice africaine). 24 animations were released in 200, fewer than in 2009. French animation remained high with 7 films distributed, including Arthur 3: The War of Two Worlds, Santa s Apprentice, and A Cat in Paris. 0 American animations were released, including Shrek Forever After, Toy Story 3 and How to Train Your Dragon. Four animations were European, two were Japanese (Summer Wars and Tamagotchi: The Movie) and one was Argentinean (Boogie, el Aceitoso). Gebeka Films, Buena Vista International and Paramount Pictures France were the leading animation distributors in 200 with three films each. Colifilms Diffusion and Eurozoom each distributed two animations. Classification of films Each year, over 80% of new releases are rated as suitable for all audiences. In 200, this was true for 56 films (89.7%), of which 250 films were French (92.6% of all French films) and 25 films were American (86.8% of all American films). 48 films were rated 2 years and older and were rated 6 and older, including 4 French films and 2 American films. No film was rated 8 and older in 200. C EXHIBITION OF NEW FILMS In 200, 575 first-run films were distributed in 77,675 prints* in all during the first week they were shown (-3.3% compared to 2009). American films accounted for 44.4% of prints in circulation, compared to 39.6% for French films, 4.8% for European films and.2% for non-european and non-american films. 29.7% of prints published in 200 were comedies (32.% in 2009), compared to 2.8% for dramas (.0% in 2009),.5% for animations (2.8% in 2009) and 2.5% for documentaries (2.4% in 2009). * Traditional silver prints and files for digital projection. animation adventure comedy comedy-drama documentary drama fantasy musical crime/mystery other total 200 2002 2003 2004 2005 2006 2007 2008 2009 200 6 2 22 23 22 30 24 22 35 24................. 43 32 35 38 39 38 23 36 20 26................... 25............... 05................. 8............... 33................ 34................ 28.................. 94.............. 6................ 27................ 3......... 7................ 0............................... 25................ 22................. 7................. 70................ 86.............. 05................ 0....... 35 35 42 77 57 52 67 58 7 76................. 94 82 88 96 02 36 72 38 39 26................. 25 30 34 27 27 35 35 34 40 32................. 5 8 6 6 0 2 7 9 3 7................. 38 42 45 3 30 38 66 48 40 4................. 6 22 8 3 7 3 5 8 8 2.................. 504................ 487................ 509................ 559................ 550................ 589................ 573................ 555................ 588................ 575....... 200 2002 2003 2004 2005 2006 2007 2008 2009 200 French American European Other films films films films total 24,20 32,249 5,603 2,59 64,572............................................................................................................... 23,652 36,499 4,872 2,492 67,55............................................................................................................... 25,768 38,280 4,532 3,362 7,942............................................................................................................... 30,483 36,735 6,35 2,383 75,96............................................................................................................... 29,85 34,09 8,897 2,060 74,233............................................................................................................... 32,530 37,3 7,08 2,569 79,320............................................................................................................... 32,94 35,47 8,3,583 77,36............................................................................................................... 33,04 34,550 7,5 2,292 77,457............................................................................................................... 34,462 35,844 7,030 2,965 80,30............................................................................................................... 30,789 34,467,5 908 77,675............................................................................................................... B First-run releases by genre C Prints for first-run releases Traditional silver prints and files for digital projection being circulated during the first week of first run release exhibition. results 200 / CNC Dossiers / nº 38 May 20 89

08 Distribution D Slight increase in the number of films distributed in more than 500 prints In 200, 35 films were distributed in more than 500 prints (32 films in 2009). 2 of them were American, 8 were French and 6 were European (five British films and one Belgian film, Samy s Adventures: The Secret Passage). They accounted for 28.9% of all prints in circulation. Among these films, two films were released in more than 800 prints: Harry Potter and the Deathly Hallows Part (a British film) and Shrek Forever After (an American film). There were three in 2009 and five in 2008. In 200, 25.2% of films were available in more than 200 prints (45 films) and 37.4% in more than 00 prints (25 films). In contrast, 5 films had limited releases (fewer than 0 prints), compared to 42 films in 2009. The proportion of films with releases limited to fewer than 0 prints declined to 20.0% in 200, compared to 24.% in 2009 and 2.8% in 2008. Less than 5 5-9 0-9 20-49 50-99 00-99 200-499 500-799 800 or more total D 200 2002 2003 2004 2005 2006 2007 2008 2009 200 89 90 88 0 89 94 87 82 87 7................. 47 46 46 6 65 53 42 39 55 44................. 37 4 42 50 63 6 62 45 75 66................. 87 73 69 88 74 87 98 99 86 0................. 67 49 6 50 48 68 57 66 56 78................. 68 68 62 74 69 73 86 88 68 70................. 70 87 09 93 09 22 2 05 29 0................. 35 26 26 38 26 23 23 26 29 33................. 4 7 6 4 7 8 6 5 3 2................. E. 504................ 487................ 509................ 559................ 550................ 589................ 573................ 555................ 588................ 575....... First-run releases by number of prints Traditional silver prints and files for digital projection being circulated during the first week of first run release exhibition. 39 documentaries were distributed in less than 0 prints in 200, 5.3% of documentaries released during the year and 33.9% of films distributed in less than 0 prints. In contrast, 59.9% of animations shown for the first time on screens in 200 were published in more than 200 prints. They represented 9.7% of films released in more than 200 prints. Average of 35 prints per film The average number of prints per film decreased. New first-run films were made in an average of 35 prints in 200, compared to 37 in 2009 and 40 in 2008. Thus, 200 reached the level of 2007. On average, French films were distributed in 4 prints, 5 fewer than in 2009. This is the lowest level recorded since 2002 (also 4 prints). The average number of prints per American film went from 220 in 2009 to 239 in 200. Associated to a net increase in the number of films, the average number of prints per European film increased significantly in 200 to 96 prints, compared to 72 in 2009. A non-european and non-american film on average had 22 prints (49 in 2009). This decrease is related to the lack of films of more than 00 prints (7 in 2009 and 5 in 2008). F Animated films had on average the largest number of prints in 200 (373 prints). Fantasy films and adventure films also had a significant number of releases: respectively 333 prints (288 prints in 2009) and 294 prints (292 prints in 2009) on average. In contrast, documentaries, dramas and comedy-dramas were released in a limited number of prints for the most part. 2 digital films released In 200, 2 films were partially or wholly distributed in digital format (83 in 2009 and 57 in 2008), 2.0% of first-run releases (4.% in 2009 and 0.3% in 2008). 64 of these 2 films were American (49 films in 2009) and 4 were French (26 films in 2009). Most films distributed in digital format had a high total number of prints released (digital + traditional prints). Thus, for 53 films (43 films in 2009), more than 400 prints were released, but 9 films released fewer than 00 prints (4 films in 2009). 20 th Century Fox, Warner Bros France and Metropolitan Film Export were the distributors to release the most digital-format films in 200 with more than 0 films each. 23 3D films In 200, 23 digital 3D films were released. 7 were American films. Ten films released more than 500 total prints (8 in 2009) and two fewer than 00 prints (3 in 2009), Une nuit au cirque (French documentary) and Boogie, el Aceitoso (Argentinean animation). 90 results 200 / CNC Dossiers / nº 38 May 20

9 results 200 / CNC Dossiers / nº 38 May 20........................................................................................................................................................................................................................................................................................................................................................................................................................ nationality French films American films European films other films genre animation adventure comedy comedy-drama documentary drama fantasy musical crime/mystery other prints less than 5 5 9 0 9 20 49 50 99 00 99 200 499 500 799 800 or more total Average number of prints per film Traditional silver prints and files for digital projection being circulated during the first week of first run release exhibition. E 200 2002 2003 2004 2005 2006 2007 2008 2009 200 8 4 9 28 24 34 23 38 29 4 205 248 247 27 224 2 203 22 220 239 69 65 60 78 86 69 04 77 72 96 4 44 55 34 36 38 27 38 49 22 200 2002 2003 2004 2005 2006 2007 2008 2009 200 264 279 230 274 334 355 328 36 293 373 287 268 297 336 35 306 388 370 288 333 79 85 22 75 86 78 77 96 203 76 57 72 65 82 53 73 86 90 70 73 20 0 36 4 24 29 28 27 25 5 82 46 5 7 74 74 52 64 79 240 30 262 266 326 7 226 93 292 294 49 80 92 9 84 95 25 58 227 47 3 64 96 234 44 82 75 87 58 60 275 94 5 228 57 24 95 25 4 200 2002 2003 2004 2005 2006 2007 2008 2009 200 2 2 2 2 2 2 2 2 2 2 7 7 7 6 7 7 7 7 7 7 4 4 4 4 4 3 4 3 3 3 33 32 33 33 33 32 33 33 33 32 73 7 67 73 7 74 70 70 7 70 47 4 47 45 47 43 5 48 40 47 308 335 308 324 322 34 322 33 320 38 600 607 629 620 598 628 637 623 632 626 835 880 902 93 884 876 862 9 95 907 200 2002 2003 2004 2005 2006 2007 2008 2009 200 28 39 4 36 35 35 35 40 37 35................................................................................................................................................................................................................................................................................................................................................................... French films American films European films other films total First-run digital releases Source: CNC, Manice. F 2006 2007 2008 2009 200 5 0 20 26 4 8 5 33 49 64 4 3 7 5 _ 4 30 57 83 2................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ First-run digital 3D releases in 200 F film origin distributor sortie Alice in Wonderland USA Buena Vista International 03/24/0 Alpha and Omega USA Metropolitan Film Export 0/20/0 Boogie Argentine Colifilms Diffusion /7/0 Space Chimps 2: Zartog Strikes Back USA SND 2/22/0 Clash of the Titans Great Britain Warner Bros France 04/07/0 Cats and Dogs: Revenge of Kitty Galore USA Warner Bros France 08/04/0 The last Airbender USA Paramount Pictures France 07/28/0 Dragons USA Paramount Pictures France 03/3/0 Jackass USA Paramount Pictures France /03/0 Megamind USA Paramount Pictures France 2/5/0 Despicable Me USA Universal Pictures International 0/06/0 The Chronicles of Narnia the Voyage of the Dawn Treader USA 20 th Century Fox France Inc 2/08/0 Piranha USA Wild Bunch 09/0/0 Tangled USA Buena Vista International 2/0/0 Resident Evil : Afterlife Germany / France Metropolitan Film Export 09/22/0 Legend of the Gardians: The owls of Ga Hoole USA Warner Bros France 0/27/0 Saw 3D USA Metropolitan Film Export /0/0 Sexy Dance 3 : the Battle USA Universal Pictures International 08/8/0 Shrek Forever After USA Paramount Pictures France 06/30/0 Streetdance Great Britain Metropolitan Film Export 05/9/0 Toy Story 3 USA Buena Vista International 07/4/0 Une nuit au cirque France Numevent 05/26/0 Samy s Adventures: The Secret Passage Belgium StudioCanal 08//0

08 Distribution G DISTRIBUTOR RANKING In 200, 6 distributors released 575 new films. The ten most active distributors distributed 32.7% of new films (32.3% in 2009). Metropolitan Film Export and 20 th Century Fox distributed more than 20 films each, totaling 9% of all films shown for the first time in theaters in 200. Two distributors released at least 20 films in 2009, equaling 8.8% of all new films. In 200, Warner Bros France was the top distributor in terms of revenue. The distribution of Harry Potter and the Deathly Hallows Part and Inception, among other successes, gave them a market share of 3.% (9.4% in 2009). In second place, Buena Vista International brought in 0.3% of distributors revenue in 200, notably due to Alice in Wonderland, Toy Story 3, The Princess and the Frog and Tangled. 20 th Century Fox came in third. It distributed films that were very successful in theaters, such as The Chronicles of Narnia The Voyage of the Dawn Treader and Percy Jackson and the Lightning Thief. EuropaCorp, the leading French distributor, had a market share of 7.4%. The distribution of Little White Lies and Arthur 3: The War of Two Worlds allowed the company to go from 4th place in 2009 to 5th place in 200. In 200, the top ten distributors brought in 76.% of all revenue (7.5% in 2009). The top five brought in 49.9% (44.8% in 2009). FILM PROMOTION Methodology The Kantar Media Institute measures advertising in five media formats: posters, movie theaters, printed press, radio, and television. Since 2002, Web advertising has also been measured. In 2004, the Institute added new media forms: strategically-placed media. These include unconventional forms such as cars or café tables. The amounts below correspond to the financial value of advertising using the seven formats studied. As a result, gross fixed-price investments do not take into account the discounts, rebates, or refunds particular to each format or form. Thus, this data must be used with caution. market films number of share (%) distributed new films 2 3 4 5 6 7 8 9 0 G. Warner............... Bros.......... France................................................ 3............................ 9.......................... 7..... Buena............. Vista............ International................................................ 0.3........................... 5............................. 7.. 20.... th.... Century................. Fox.................................................. 9.7................................................... 23..... Paramount....................... Pictures.................. France.................................. 9.4......................... 50.......................... 3..... EuropaCorp............................................................................ 7.4.......................... 43............................. Universal.................... Pictures.................. International..................................... 6.6........................... 48........................ 5..... Pathé............ Distribution............................................................... 6.......................... 52.......................... 3..... Metropolitan........................... Film.......... Export...................................... 5.0......................... 38.......................... 29..... StudioCanal........................................................................... 4.6......................... 0.......................... 9..... Sony.......... Pictures.................. Releasing............................................... 3.9........................... 56........................ 8.... The top ten distributors in 200 In terms of distributor revenue. 92 results 200 / CNC Dossiers / nº 38 May 20

H 473 million spent on promotional fees in 200 In 200, gross advertising spending for film promotion totaled 473.2 million, a decrease of 0.9% compared to 2009. Posters remained the main promotional format, and spending declined significantly to 56.5 million (-2.9%). Posters weight as a part of total spending remained relatively stable at 33.% (33.8% in 2009). However, it is still a net decrease compared to 200 (62.9%). Gross advertising spending on the Internet, the second main promotional technique used went from 53.6 million in 2009 to 44.5 million in 200 (-5.9%). The Internet accounted for 30.5% of total advertising expenses (28.9% in 2009 and 3.3% in 2008). Advertising spending intended to promote films in movie theaters fell between 2009 and 200 (-44.% to 33.3 million) for a number of films also on the decline, but at a slower rate (-7.6%). The press was the only medium for which advertising spending to promote films increased in 200 (+.7%) amounting to 90 million ( 88.5 million in 2009). There was no spending on strategically-placed media for films in 2009. I Advertising for French films accounted for 28.% of gross advertising spending in 200 (excluding bundled advertising), versus 56.5% for American films. On average, gross advertising spending for French films was 424,800 ( 494,200 in 2009) and,90,000 for an American film (,265,300 in 2009). There was a large difference between advertising budgets: the dispersion index varied between and 5,000 for French films and and 8,600 for American films. How to Train Your Dragon was number one in terms of gross advertising spending in 200, followed by Iron Man 2 and Harry Potter and the Deathly Hallows Part. One French film was among the top 20: The Extraordinary Adventures of Adèle Blanc-Sec (th) (one in 2009 and in 2008). Five animated films were among the top 20: How to Train Your Dragon (st), Megamind (5th), Shrek Forever After (6th), Despicable Me (5th) and Toy Story 3 (9th). As for first-run releases in 200, advertising campaigns for 48 films, or 83.7% of all films released, involved at least one form of media (84.5% in 2009). Total gross advertising spending for these films reached 385.3 million, or 97% of all spending (excluding bundled advertising). Of this 385.3 million, 09.8 million was spent on advertising for 28 French films and 26.4 million on promoting 3 American films. 200 2002 2003 2004 2005 2006 2007 2008 2009 200 posters printed press radio movie theaters Internet television strategically-placed media total H.. 2.62.................. 4.73................. 39.36.................. 60.74.................. 58.46.................. 60.4.................. 5.64.................. 75.67.................. 79.80.................. 56.54............ 27.99 30.47 38.24 5.44 6.22 72.44 75.30 74.32 88.48 89.97........................................ 29.82 33.99 38.23 4.46 43.58 42.89 37.47 37.88 48.93 47.97........................................ 2.56 9.24 7.34 345 4.7 54.4 44.9 48.23 59.5 33.28........................................ _ 0.46.3 2.38 9.99 60.0,47 53.86 53.6 44.50.........................................2.23 0.35 0.63.33.86 2.23.39 0.98 0.96........................................ _ 0.34 0.24 0.36 05 0.0......................................... 93.2................... 227.2................. 234.63...................... 294.............. 325.99.................. 39.93.................. 425.67.................. 49.45.................. 53.30.................. 473.2............ Gross advertising spending, by medium (in millions of ) Source: Kantar Media CNC. French films American films European films other films sub-total Bundled advertising total I 200 2002 2003 2004 2005 2006 2007 2008 2009 200 45.90 46.80 5.28 72.78 85.24 4.55 29.60 27.84 30.84.60........................................ 79.27 94.58 02.65 20.50 29.30 68.5 82.99 225.45 254.95 224.30.........................................6 44.53 20.92 3.96 23.52 33.44 35.75 37.3 57.8........................................ 6.25 7.82 8.7 9.26 8.57 9.50 84 4.56 43 46......................................... 42.57.................. 63.23.................. 73.63.................. 223.46..................... 2556............... 35.72..................... 3546.............. 403.60................... 437.3.................. 397.4............ 50.64 63.88 6 67.58 70.93 76.2 7.60 87.85 94.7 767......................................... 93.2................... 227.2................. 234.63...................... 294.............. 325.99.................. 39.93.................. 425.67.................. 49.45.................. 53.30.................. 473.2............ Gross advertising spending, by nationality (in millions of ) Distributors sometimes advertise a group of films. Source: Kantar Media CNC. results 200 / CNC Dossiers / nº 38 May 20 93

08 Distribution PUBLISHING COSTS FOR FRENCH INITIATIVE FILMS IN 2009 Methodology The data below details distribution costs for CNC-approved French initiative films released in theaters. Detailed data on publishing costs was collected from three sources: automatic financial support for distribution, Canal+ s contribution to distribution (actual, accountant-certified investments), and data reported by distributors of films not covered by automatic or support or that of Canal+. This analysis does not include any non-cnc-approved French films, any approved minority French co-produced films, or few films in the survey for which the distributor provided no answers. Publishing costs have been broken down into four categories: _ laboratory costs: technical fees for printing, storing, dubbing, subtitling, and film trailer design and production; _ advertising space costs: posters, radio, Web, printed press, movie theaters, television; _ design and production costs for advertising materials: poster design and production, creation and production of radio ads, video clips, Web sites, etc.; _ press costs: production of invitations, renting screening rooms, organizing advanced screenings, expenses for festivals and screenings, press officer fees, travel, etc. J Publishing costs average 648,000 for French films in 2009 After increasing by 2.2% between 2004 and 2006, the average cost of distribution per film decreased 0.6% between 2006 and 2007. Then it stabilized at 664. thousand in 2008 and decreased slightly to 648 thousand in 2009 (-2.4% compared to the previous year). Between 2004 and 2009, almost all items had average spending per film increase: +0.8% for various promotion costs, +.% for purchasing advertising space, +5.6% for advertising materials. The only item that declined was laboratory costs: 203 thousand were allocated on average per film 2009, compared to 208.4 thousand in 2004 (-2.6%). The opposite occurred between 2008 and 2009. With the exception of advertising space purchases (+%), all expenditure items decreased: -6.4% for laboratory costs, -4.2% for various promotion costs, -.6% for advertising material spending. total publishing costs laboratory costs ad space purchases ad material publication miscellaneous printed press number of films average publishing costs per film (in thousands of ) A French initiative fiction film was released with an average publishing cost of 705.26 thousand ( 78.78 thousand in 2008). Average publishing costs invested in the genre have been relatively stable since 2004. Each year, animations have not been well represented among releases of French initiative films. However, the genre did have significant publishing costs (.322 million on average per film in 2009, 975.66 thousand in 2008). In 2009, there were six French initiative animation films, including Arthur and the Revenge of Maltazard and Round Da Way. Publishing costs invested per animated film have increased 3.4 times during the last six years. Documentaries had more controlled costs with average publishing costs of 30.87 thousand ( 202.42 thousand in 2008). The budget allocated for the release of a French initiative documentary decreased significantly compared to previous years. In 2009, only two films had high distribution costs, Home and le Syndrome du Titanic. 2004 2005 2006 2007 2008 2009. 08.49.................. 00.49.................. 4.49.................. 06.6.................. 2.89.................. 4.04............... 35.23................... 3.57.................. 35.4.................. 33.5................. 36.86.................. 35.73............. 48.63.................. 45.39................... 50.3................. 48.23.................. 48.95................... 5.8............... 8.3.................. 8.23.................82.................... 9.5.................. 9.82............... 0.00.............. 6.32.................. 5.30................... 7.2................. 5.26.................. 7.26.................. 7.3......... 69 50 59 65 70 76 642.0 669.9 720.0 643.4 664. 648.0.............................................................................................................................................................................................................. number of copies publishing costs per copy ( ) J. 28,689.................. 25,60.................. 29,299.................. 27,632.................. 30,425................... 3,26............... 3,782................. 3,925.................. 3,908.................. 3,842................... 3,7................. 3,664.......... Publishing costs for French initiative films (in millions of ) 94 results 200 / CNC Dossiers / nº 38 May 20

K Publishing costs: 0.7% of the final cost of French films in 2009 The final average cost (production + distribution) of French initiative films was 5.98 million in 2009 ( 6.96 million in 2008). The budget for distributing a film is largely related to its production cost. In 2009, a film with a production cost lower than million had a total average of 89 thousand in publishing costs ( 2.5 thousand in 2008). When a film with production costs exceeds 5 million, it has average publishing costs of 20 times as much ( 2.47 million in 2009, 2.5 million in 2008). Publishing costs portion of the total cost of a film varies in a non-linear fashion according to the production cost. Distribution costs do indeed have a greater impact on smaller releases (production budget lower than million), representing 4% of the final cost of the film in 2009 (7.% in 2008). For production costs above 7 million, the portion of publishing costs in the final cost decreased as the production budget of a film increased:.4% for films with production budget between 7 million and 5 million (.6% in 2008) and 9.4% for those with production budget above 5 million (7.2% in 2008). L Distribution of publishing costs: highly dependent on the number of prints The distribution costs of a film increase as the number of prints increase. In 2009, films released with fewer than 0 prints represented an average distribution cost of 69.6 thousand ( 63.9 thousand in 2008) and with films released in 00 to 200 prints, distribution costs were more than seven times higher at 527.6 thousand ( 564.3 thousand in 2008). Average distribution costs exceeded million on average for films released in 200 to 400 prints and this budget doubled if the film had at least 400 prints. The structure of distribution costs for a French initiative film varies according to the number of releases. Laboratory costs were higher than the average for films released in fewer than 50 prints (more than 33.5% on average, compared to 3.3% for all films in 2009), while they only represented 29.% for films released in more than 400 prints. The scale of the film and the amount of exposure in theaters are factors that have a great impact on technical expenses. Remember that economies of scale performed on a large number of releases allows the distributor to benefit from a reduction, sometimes significant, in laboratory costs. However, in 2009, the portion of laboratory costs did not decrease in a linear fashion as the number of releases increased. The financial resources that went towards the promotion of films and more particularly to the purchase of advertising space increased as the number of prints increased. Thus, French films for which more than 00 prints were made used substantial publicity campaigns in order to optimize the film s visibility in various media (45.7% of total publishing costs went to purchasing advertising space for films for which more than 00 prints were made in 2009, compared to 44.6% in 2008). However, films with very small-scale releases (fewer than 0 prints) relied more on press relations and on working closely with movie theaters (organization of advanced screenings, meet-the-director events, etc.). These various promotion costs accounted for an average of one-third of publishing costs for this category of film (30.8% in 2009). Buying advertising space was a significant expense for these small-scale releases with average distribution budget of about 69,578 in 2009 ( 63,869 in 2008). total final cost (production + distribution) = < M -2.5 M 2.5-4 M 4-7 M 7-5 M > 5 M 6.47 64.92 02.54 63.34 380.4 20.73........................................................................................................................... total production cost + total publishing costs laboratory costs ad space purchases ad material publication miscellaneous printed press 4.5 59.24 9.52 45. 337.08 9.00........................................................................................................................... 2.3 5.67.03 8.22 43.34 9.73........................................................................................................................... 0.80.90 3.45 6.04 3.92 5.33........................................................................................................................... 0.62 2.09 4.92 7.70 20.32 9.55........................................................................................................................... 0.26 0.46 0.75.77 3.56.87........................................................................................................................... 0.64.23.90 2.72 5.54 2.98........................................................................................................................... total publishing costs laboratory costs ad space purchases ad material publication miscellaneous printed press -9 0-49 50-99 00-99 200-399 > 400.46 5.90 2.82 6.88 44.3 42.67........................................................................................................................... 0.49 2.0 0.88 5.47 4.48 2.40........................................................................................................................... 0.34.88.22 7.53 20.00 20.2........................................................................................................................... 0.8 0.56 0.20.24 3.98 3.84........................................................................................................................... 0.45.45 0.52 2.63 5.85 6.23........................................................................................................................... number of films average publishing costs per film (in thousands of ) 26 34 28 27 34 8 89.0 66.8 393.8 674.9,274.6 2,465.9...................................................................................................................................................................................................................................................... number of films average publishing costs per film (in thousands of ) 2 47 32 44 2 69.6 25.6 256.0 527.6,007.0 2,03.9...................................................................................................................................................................................................................................................... K Publishing costs for French initiative films in 2009, by production cost (in millions of ) L Publishing costs for French initiative films in 2009, by number of prints (in millions of ) results 200 / CNC Dossiers / nº 38 May 20 95

Le Palace, Martigues (3). DR / FNCF. Le Navire, Valence (26). DR / FNCF. Cap Cinéma, Beaune (2). DR Ava du Parc / FNCF. Cinéquai, Saint Dizier (52). Philippe Maillot / FNCF. Cinéville, Vannes (56). DR / FNCF.

L Arlequin, Paris (75). DR / FNCF. Cinéma Olympia, Dijon (2). DR Ava du Parc / FNCF. 09 Exhibition Les Toiles du lac, Aix-les-Bains (73). DR / FNCF. In 200, 5,478 screens were in active use in 2,050 cinemas. The total number of screens remained stable compared to 2009 (-4 screens). Four multiplexes opened in 200, which brought the total number of multiplexes in operation to 78. Multiplexes accounted for over half of attendance (58.5 % of admissions in 200). Le Majestic, Lille (59). DR / FNCF. Le Mimosa, Noirmoutier-en-Île (85). Philippe Gras / ADRC.

09 Exhibition What is an active screen? In order to measure cinema screen activity across France, the CNC has, since 992, taken an annual census of active screens, that is, any screen that showed at least one film which required cinema operators to file a statement of receipts with the CNC. This statement provides documentary proof of receipts, TSA calculations, and automatic financial support calculations. These documents were, among other things, used to tabulate all statistics concerning film exhibition in theaters. Cinema operators were required to provide a statement of receipts for each week, every screen, and every film. Included for each week were the titles of films currently featured, the number of scheduled show times, total admissions, and total receipts. Screens that only broadcast video instead of screening films were not included in this review of exhibition. A What is a multiplex? Current laws and regulations do not provide a legal definition for multiplex. Until the most recent reduction of threshold values on July 2, 2003, all cinemas affected by the regulations, i.e., authorized by a departmental commercial facilities commission (CDEC), were considered multiplexes in France. Since this time, a 795-seat minimum was added to the regulatory definition. Therefore, the meaning of multiplex encompasses widely varying economic realities. Ordinance No. 200-78 of July 8, 200, on scheduling groups and alliances and obligations extended the scope of application of the system that was reserved until now for multiplex operators to all operators that own cinemas with at least eight screens, and which are now subject to programming obligations. This new measure, based on the principle that all operators are treated equally, makes it possible to integrate into the system cinemas that, even though they shared common characteristics with multiplexes, were not subject to programming obligations. Taking this into account, the chapter below provides figures for multiplexes as well as theaters with eight or more screens, regardless of the date and the conditions under which they operate. Total number of screens is stable There were 5,478 active screens in France in 200, a drop of 4 from 2009. This figure was affected by the temporary or permanent closing of 80 screens and opening or re-opening of 76 screens. Since 2007, the number of screen openings can mostly be explained by the rise in the total number of multiplexes: 5.3% of new screens were in multiplexes in 200, (74.8% of new screens in 2009 and 56.5% of new screens in 2008). On the other hand, the development of some kind of cinemas may cause other theaters to close. For example, the closing of one 4-screen theater in Saint-Lô coincides with the opening of a 9-screen theater multiplex in the same town. In Saint-Nazaire, one 5-screen theater closed after a 6-screen cinema opened in Guérande. In Montivilliers, Europalaces replaced a 0-screen theater with a 2-screen multiplex situated in Le Havre. By forcing existing cinemas to close while opening new theaters, multiplex operators regularly cause business to be transferred from one location to another. Furthermore, 32 out of 76 newly opened screens in 200 were in theaters with 8 or more screens, versus 0 out of 43 in 2009. Finally, of the 76 screens opened in 200, 2 were added on to pre-existing cinemas (versus 5 in 2009). The 5,478 active screens in 200 included 28 touring cinema circuits (versus 30 in 2009 and 32 in 2008) and 8 outdoor screens (8 in 2009 and 9 in 2008). In parallel with the slight decrease in the number of screens, the number of active cinemas decreased (-20 compared to 2009). Twenty theaters opened or re-opened whereas 40 were temporarily or permanently closed. In the past, the majority of cinemas that closed were small establishments. Now, for reasons already mentioned, medium-sized theaters are also being affected. In 200, one 0-screen theater, one 5-screen theater, and two 4-screen theaters were similarly closed, temporarily (for refurbishment) or permanently. Twelve newly-opened theaters in 200 (60.0%) had one screen. Three had 8 or more screens. In 200, one 2-screen theater, one 3-screen theater, two 4-screen theaters, and one 7-screen theaters opened. Also, four theaters opened in 200 were multiplexes. Over ten years, cinema seating capacity has grown by.% and average capacity per cinema by 6.8%. 98 results 200 / CNC Dossiers / nº 38 May 20

B C In 200 in Paris, the number of active screens came to 363 from 362 in 2009. Paris opened one more additional single-screen cinema in 200, the Club de l Etoile (in the 7th arrondissement). In addition, the three theaters of the Miramar at Montparnasse were added to Gaumont Parnasse, which caused one cinema to disappear and the number of cinemas in the capital to be stable. Paris is home to 84 total cinemas, 7 of which are theaters with 8 or more screens. Paris theaters had a total of more than 70,000 seats in 200. In ten years, the overall seating capacity in Paris fell by 4.9%. Increase in the average number of admissions per cinema Given 200 s 2.4% increase in attendance, average admissions per cinema rose to 00,649, up 3.4% from 2009. The average admissions per screen also rose by 2.5%. On average, a single multiplex received 677,559 admissions in 200, up 3.2% from 2009. A theater with 8 or more screens recorded on average 698,482 admissions in 200, a 3.% increase from 677,556 in 2009. 200 2002 2003 2004 2005 2006 2007 2008 2009 200 A active cinemas screens seats 2,66 5,22,065,059....................................................................... 2,5 5,26,072,948....................................................................... 2,36 5,299,075,984....................................................................... 2,08 5,293,065,88....................................................................... 2,084 5,308,065,767....................................................................... 2,070 5,300,060,074....................................................................... 2,057 5,332,059,345....................................................................... 2,08 5,424,072,887....................................................................... 2,070 5,482,079,330....................................................................... 2,050 5,478,076,538....................................................................... Active screens in France provisional data. 200 2002 2003 2004 2005 2006 2007 2008 2009 200 B active cinemas screens seats 93 373 73,766....................................................................... 9 368 72,752....................................................................... 90 38 74,628....................................................................... 89 378 73,98....................................................................... 89 383 75,00....................................................................... 88 379 74,097....................................................................... 87 376 72,94....................................................................... 85 363 70,509....................................................................... 84 362 69,979....................................................................... 84 363 70,40....................................................................... Active screens in Paris provisional data. per cinema per screen 200 2002 2003 2004 2005 2006 2007 2008 2009 200 C 86,544 35,904....................................................... 85,732 35,052....................................................... 8,207 32,734....................................................... 92,833 36,972....................................................... 84,223 33,067....................................................... 9,94 35,67....................................................... 86,733 33,460....................................................... 9,388 35,062....................................................... 97,308 36,743....................................................... 00,649 37,665....................................................... Average number of admissions provisional data. results 200 / CNC Dossiers / nº 38 May 20 99

09 Exhibition D E Digital projectors in 52 theaters At the end of January 20, 52 active cinemas had at least one 2K digital projector in France, 25.4% of the total number of cinemas. 7 of them were multiplexes. The significant increase of installations in 200 is particularly due to the major groups of operators. Europalaces had a total of 65 cinemas equipped with at least one digital projector (87.8% of cinemas owned by the group). Three cinemas were newly equipped in 200 (9 screens) and 5 cinemas increased their number of outfitted theaters (+85 screens). 2 of the 35 cinemas owned by UGC had at least one digital projector. In 200, the group outfitted 2 cinemas for the first time (46 screens) and continued to outfit 9 cinemas (+82 screens). Of the 37 cinemas that CGR owns, three were not yet digitally equipped in 200. The group, which had begun equipping its cinemas as early as 2008, outfitted three cinemas for the first time in 200 (3 screens) and continued to outfit one cinema (+2 screens).,82 of the 3,048 theaters that made up the 52 cinemas that were totally or partially digitized were equipped for this type of projection, 59.7% of all cinema screens involved and 33.2% of all active screens in 200. 32.2% of cinemas outfitted with at least one digital projector had 8 screens or more in 200 (47.4% in 2009). The new equipment benefitted the smaller cinemas: 4.5% of cinemas that were digitally equipped had fewer than 4 screens in 200, compared to 26% in 2009. They represented 36 of the 23 new equipped cinemas. However, even though 97.% of cinemas with 8 screens and more had at least one digital projector in 200, this was only the case for 3.2% of cinemas with fewer than 4 screens. F Multiplexes account for over half of all admissions In 200, 78 French multiplexes were active. The growth rate of new multiplexes fell significantly compared to previous years: 4 multiplexes opened in 200. They were in 2009 and 2008. 8.7% of French cinemas were multiplexes and possessed 36.3% of total screens and 37.8% of seats. Multiplexes had massive attendance figures: 58.5% of admissions were in multiplexes in 200 (57.0% in 2009, 54.8% in 2008, and 0.9% in 993). Multiplex attendance rose by 5.0% in 200 compared to 2.4% for cinemas overall. screen 2 to 3 screens 4 to 5 screens 6 to 7 screens 8 to screens 2 screens and more total E F proportion in the total no. of cinema in 200 2006 2007 2008 2009 200 (in %) 3 23 32 0 8.5........................................................................................................................... 4 9 48 5 26.3........................................................................................................................... 3 8 48 83 5.6........................................................................................................................... 3 3 3 34 54 64.3........................................................................................................................... 2 4 25 73 83 95.4........................................................................................................................... 5 3 36 73 85 98.8........................................................................................................................... 5 38 34 308 52 25.4........................................................................................................................... Cinemas equipped with 2K digital projectors by the total number of screens Order of January 3, 20. Source : CNC Cinégo Manice. Four new multiplexes in 200 2006 2007 2008 2009 200 proportion in total no. of cinemas 2 (in %) D cinemas Multiplexes are cinema theaters the opening of which requires a CDEC (before threshold lowering) and cinema theaters containing over 795 seats (after threshold lowering). 2 Outside city limits: located outside the main urban area; outskirts: within city limits but not in the center of town. 3 This cinema reopened after it was restructured. active screens 5 27 38 57 34 429 308 964 52 82 25.4 33.2.............................................................................................................................................................................................................................................................................. Cinemas equipped with 2K digital projectors Order of January 3, 20. 2 In 200 Source : CNC Cinégo Manice. cinema operator town or city urban area location2 date opened screens seats. Monciné..................................................... independent.................................... Béziers.............................................. Béziers............................................ town........... center.................... September....................... 200........................... 9................,462........... Méga........... CGR.......... Le...... Français3.......................... CGR.................................... Bordeaux.............................................. Bordeaux............................................ town........... center.................................. May......... 200......................... 2..................,979........... Cinema................ Lido..................................... independent.................................... Saint-Raphaël.............................................. Fréjus............................................ outskirts............................................ June.......... 200........................... 7................,38........... Méga........... CGR.......................................... CGR.................................... Tarbes.............................................. Tarbes............................................ outside................ city......... limits................... April.......... 200........................................... 2,054.......... 2006 2007 2008 2009 200 proportion in total no. of cinemas 2 (in%) F admissions cinemas screens seats (millions)...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Multiplex exhibition results provisional data. 2 In 200 46,66 344,799 97.72 53,734 357,276 94.53 64,838 377,225 04.2 75,952 400,273 4.88 78,987 406,862 20.6 8.7 36.3 37.8 58.5 00 results 200 / CNC Dossiers / nº 38 May 20

G H In 200, 73 active theaters (8.4% of the total) had 8 or more screens, encompassed 37.7% of seats and 36.4% of screens, and represented 58.6% of admissions. At the same time, the total number of French cinemas included,95 single-screen theaters, making up 2.8% of screens. These venues accounted for 25.5% of seats and 8.3% of admissions. CINEMA EXHIBITION COMPANIES In terms of equipment, cinema exhibition is a widely dispersed sector. The ten companies that garnered more than % of annual box-office receipts in 200 operated 2,096 screens, or 38.2% of the total number of active screens. In 200, EuroPalaces operated 760 theaters, or 3.9% of the national total. The company operated 7 more screens than in 2009. With its 7.3% of the total, CGR stood as the second largest operator with 40 screens. In third place, UGC had 365 screens (6.7% of French screens). 2006 2007 2008 2009 200 proportion in the total no. of cinemas in 200 (in %) G screen 2 to 3 screens 4 to 5 screens 6 to 7 screens 8 to screens 2 screens or more total G admissions cinemas screens seats (millions) 52,745 359,067 0.08............................................................................................. 58,80 369,798 96.89............................................................................................. 65,887 383,829 06.46............................................................................................. 7,968 400,748 5.86............................................................................................. 73,996 406,09 20.84............................................................................................. 8.4 36.4 37.7 58.6............................................................................................. Exhibition results of cinemas with 8 screens or more provisional data. admissions cinemas screens seats (%),95,95 274,3 8.3............................................................................................................... 437,027 79,735.0............................................................................................................... 6 75 7,64 0.8............................................................................................................... 84 545 99,039.3............................................................................................................... 87 802 52,308 8.4............................................................................................................... 86,94 253,7 40.2............................................................................................................... 2,050 5,478,076,538 00.0............................................................................................................... Cinemas in 200, by number of screens provisional data. number of screens % of total 2006 2007 2008 2009 200 2 2006 2007 2008 2009 200 2 Aubert Cap Cinéma (Dejust) CGR Cinéalpes (Davoine) EuroPalaces Kinépolis Lemoine MK2 SAS Cinéville UGC H 5 5 5 60 60.0.0 0.9........................................................... 58 79 78 75 75..5.4.4.4......................................................... 365 38 372 375 40 6.9 7. 6.9 6.8 7.3......................................................... 59 46 46 45 43 3.0 2.7 2.7 2.6 2.6......................................................... 66 632 67 743 760.6.9 2.4 3.6 3.9......................................................... 48 87 87 87 87 0.9.6.6.6.6......................................................... 60 60 60 56 59....0.......................................................... 64 64 58 58 58.2.2............................................................ 84 88 88 88 88.6.7.6.6.6......................................................... 37 37 359 37 365 7.0 7.0 6.6 6.8 6.7......................................................... Major cinema operators operators earning over % of the box-office receipts for 200. 2 provisional data. results 200 / CNC Dossiers / nº 38 May 20 0

Arthur and the Revenge of Maltazard by Luc Besson. EuropaCorp / TF Films productions. Inglorious Basterds by Quentin Tarantino. Universal Pictures International France. Neuilly Yo Mama! by Gabriel Julien-Laferrière. UGC Distribution. A Prophet by Jacques Audiard. Roger Arpajou / UGC Distribution. Inception by Christopher Nolan. Warner Bros France. Avatar by James Cameron. Twentieth Century Fox France.

0 Physical Video Media In 200, the French spent.39 billion euros on video purchases. Household spending on video products were comparable to 2009. French films generated 80.2 million in receipts, an increase of.9% compared to 2009. Little Nicholas by Laurent Tirard. Wild Bunch Distribution. The Concert by Radu Mihaileanu. Les Productions du Trésor / EuropaCorp. Shutter Island by Martin Scorsese. Paramount Pictures France. The Twilight Saga: New Moon by Chris Weitz. SND.

0 Physical Video Media Methodology Household spending on physical videos was studied by the GfK Institute based on sales from supermarkets, specialty superstores, mail order, and off the Internet. These figures do not include sales in magazine stands or gas stations and exclude revenue from rentals. GfK s evaluations of French household spending on physical video media exclude adult programs. Each format (VHS, DVD, and Blu-ray) was correlated with genre (feature film or non-feature film, fiction, animation, documentary, comedy, etc.) and country of origin. This comparison was made using data collected by the CNC. Any works that were distributed to and were released in theaters, before being released on video, were assigned to the film category. CNC records were used for film country of origin and genre information. Since 2007, GfK data have included two changes from previous years: _ VHS is now excluded from the analysis because it scarcely generates revenues. High Definition is now included. _ The Internet sales market is now distinguished separately from the Other points of sale category. A Market trends: +2.3% in volume, +0.% in value In 200, the French spent.39 Billion on DVD and Blu-ray purchases. For the second year in a row, household spending on physical video media remained stable (+0.%). For DVD and HD video, DVD sales made up 87.5% of market share in 200 (92.2% in 2009), with receipts down 5.%. In volume, 34.4 million DVDs were sold in 200, a stable figure compared to 2009 (-0.9%). The market upswing that began in 2009 is due to HD media marketing: Blu-ray sales increased.6-fold between 2009 and 200, reaching 73.4 million, with nearly 9.7 million units sold. Blu-ray sales (+6.6%) offset the decrease in DVD sales (-5.%). Because the medium is disappearing, VHS sales are no longer included in the analysis of the video market. In 200, VHS generated 0.9 million in receipts for just over 3,000 units sold, compared to. million and 62,000 units in 2009. 2004 2005 2006 2007 2008 2009 200 evol. 0/09 A VHS DVD Blu-ray 2 total 0.38 2.73 _ 32. 3.62 39.79 _ 43.4.0 35.36 _ 36.37 _ 30.50 0.54 3.04 _ 26.02 2.6 28.8 _ 35.58 5.28 40.87 _ 34.42 9.66 44.08 _ -0.9% +82.8% +2.3%........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Video sales according to medium (millions) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. 2 This medium, developed by Sony, became the standard HD medium in 2008. Source: CNC GfK. In 200, the average retail price of a catalog DVD decreased by 3.5% to 8.35 ( 8.65 in 2009). The price of new releases (on sale for fewer than six months) fell by 2.0% to 8.37. All packaging included, the average price for new releases fell by.4% to 3.93 in 200. Sales of DVDs priced between 7 and 20 represented 28.3% of total revenue, the same as in 2009. DVDs priced at over 20 accounted for 3.3% of market share in 200, compared to 33.% in 2009. In 200, DVDs priced below 3 represented 0.8% of revenue (.0% in 2009) and 5.7% of volume (7.2% in 2009). The average price of a new release on Blu-ray was 24.37. The majority of Blu-ray units were priced between 20 and 25 (29.2% of volume and 32.5% of HD revenue in 200). Still, 8.% were sold between 25 and 30, making up 23.8% of total Blu-ray revenue. 2004 2005 2006 2007 2008 2009 200 evol. 0/09 A VHS DVD Blu-ray 2 total 4.23,844.58 _,958.82 26.88,757.30 _,784.8 4.48,654.69 _,659.7 _,479.86 4.27,494.3 _,330.98 5.45,382.44 _,277.06 07.33,384.39 _,2.86 73.4,385.27 _ -5.% +6.6% +0.%........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Video sales by medium (millions of ) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. 2 This medium, developed by Sony, became the standard HD medium in 2008. Source: CNC GfK. 04 results 200 / CNC Dossiers / nº 38 May 20

B Methodology The analysis of video distribution formats by genre distinguishes two categories: feature and non-feature films. The feature film category includes all feature-length films distributed in theaters in France. The non-feature 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 programming is not included in the scope of analysis. New decrease in non-feature film receipts For the fourth consecutive year, non-feature films have shown a drop in video revenues (-5.% compared to 2009). They represent 36.5% of the market ( 505.5 million), compared to 38.5% in 2009. In volume, non-feature film sales remained stable at about 66 million units sold in 200 (+0.8%) and were lower than feature film sales for the second consecutive year. In revenue, cinema continues to dominate the video market. Feature films earned 842.3 million in receipts, i.e., 60.8% of total revenue in 200. This market segment is expanding compared to 2009 (58.4%). With support from Blu-ray (+58.7% in revenue between 2009 and 200), revenues from feature film media showed an increase of 4.2% compared to 2009. In volume, more than 70 million media sold contained a work of cinema in 200, representing an increase over the previous year (+5.7%). 200 was also marked by a decrease in revenues from promotional operations (-3.2%), which represented 2.7% of the sector s revenue (3.% in 2009). 2004 2005 2006 2007 2008 2009 200 evol. 0/09 B 00% 80% 60% 40% 20% 0 B promotional films off film offers 2 total,79.62 650.52 28.67,958.82,003.23 685.63 95.32,784.8 870.44 738.39 50.34,659.7 79.20 663.20 39.73,494.3 772.56 576.44 33.44,382.44 808.40 532.74 43.24,384.39 842.25 505.48 37.54,385.27 +4.2% -5.% -3.2% +0.% Video revenue by content (millions of ) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. 2 Promotional offers with no indication of title. Source: CNC GfK. 6.6 33.2 60.2 5.3 38.4 56.2 3.0 44.5 52.5 2.7 44.4 53.0 2.4 4.7 55.9 3. 38.5 58.4 Breakdown of video revenue by content (%) films off films promotional offers 2 The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. 2 Promotional offers with no indication of title. Source: CNC GfK. 2.7 36.5 60.8 2004 2005 2006 2007 2008 2009 200 2004 2005 2006 2007 2008 2009 200 évol. 0/09 B promotional films off film offers 2 total 65.43 43.40 23.28 32. 63.47 53.25 26.68 43.4 59.62 65.0.65 36.37 58.43 65.49 7. 3.04 58.45 63.47 6.26 28.8 66.73 65.39 8.74 40.87 70.54 65.95 7.59 44.08 +5.7% +0.8% -3.2% +2.3% Home video sales by content (million units) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. 2 Promotional offers with no indication of title. Source: CNC GfK. results 200 / CNC Dossiers / nº 38 May 20 05

0 Physical Video Media C Small increase in French film receipts French cinema earned 80.2 million in revenue in 200, an increase of.9% compared to the previous year. The market share of French films in the video market represented 2.4% of revenue, compared to 2.9% in 2009. 5.73 million DVDs and Blu-ray discs of French films were sold in 200, compared to 5.45 million in 2009 (+.8%). French films accounted for 0.9% of revenue from Blu-ray sales in 200. Two French films were among the twenty highest selling films on video in 200 (compared to just one in 2009): Little Nicholas and Arthur and the Revenge of Maltazard were in fourth and thirteenth place, respectively. Increase in American film sales Revenue from American films on video increased by 5.2% to 546. million in 200. Their market share remained stable at 64.8% (64.2% in 2009). In volume, over 45 million DVDs and Blu-ray discs of American films were sold in 200 (+6.6% compared to 2009). American films accounted for 72.% of revenue for Blu-ray film sales in 200. In 200, American films accounted for eight of the ten highest-performing films on video (eight in 2009). Avatar was in st place in terms of revenue. The Twilight Saga: New Moon (2nd), 202 (3rd), This Is It (5th), The Twilight Saga: Eclipse (6th), The Princess and the Frog (8th), Alice in Wonderland (9th) and Toy Story 3 (0th) complete the list of the year s American bestsellers. In 200, revenue from non-french European films on video increased by 6.8%, after a decrease in 2009 (-3.5%). The market share for European films was.4%, compared to.% in 2009. Three British films in particular accounted for this: Inception, in 7th place in terms of revenue, Harry Potter and the Half-Blood Prince in 6th place, and Robin Hood in 8th place. The market share of non-european, non-u.s. films decreased to 2.4% (2.7% in 2009). 2004 2005 2006 2007 2008 2009 200 evol. 0/09 C 00% 80% 60% 40% 20% 0 C French American European films films films 2 other films total 253.37 79.00 85.59 2.67,79.62............................ 228.96 645.32 70.28 58.66,003.23............................ 98.69 523.3 06.84 4.60 870.44............................ 82.08 497.80 78.67 32.65 79.20............................ 76.03 483.52 93.29 9.7 772.56............................ 76.89 59.3 90.04 22.6 808.40............................ 80.7 546.0 96.4 9.84 842.25............................ +.9% +5.2% +6.8% -0.5% +4.2%............................ Revenue from films on video by country of origin (millions of ) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. 2 Continental Europe (From the Atlantic to the Urals), excluding France. Source: CNC GfK. 0.3 5.8 4.8 4. 2.6 2.7 2.4 7.0 7.3 2.3 9.9 2...4 64.3 6.0 60. 62.9 62.6 64.2 64.8 2.5 22.8 22.8 23.0 22.8 2.9 2.4 2004 2005 2006 2007 2008 2009 200 Breakdown of revenue for films on video by country of origin (%) French films Americans films European films 2 other films The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. 2 Continental Europe (From the Atlantic to the Urals), excluding France Source: CNC GfK. 06 results 200 / CNC Dossiers / nº 38 May 20

D In 200, feature-length animated films accounted for 3.9% of revenue for cinema on video, compared to 4.7% in 2009. Revenue from this genre was relatively stable at 7.0 million (-.2%). The Princess and the Frog, Toy Story 3, Ice Age 3: Dawn of the Dinosaurs, Shrek Forever After and Up, were in 8th, 0th, 2th, 4th and 9th place, respectively, by 200 sales ranking, contributing significantly to the level of sales in animated film on video. Feature documentaries showed an increase in video revenue (+2.0%). They generated over 0 million in receipts and accounted for.2% of total revenues for works of cinema on video. This increase was due to the American documentary This Is It, which was in 5, place in 200 in terms of revenue. 2004 2005 2006 2007 2008 2009 200 evol. 0/09 D fiction animation documentary total........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Revenue from films on video by genre (millions of ) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. Source: CNC GfK. E Continued dip in fiction Receipts for fiction on video decreased by 3.0% to 258.7 million in 200. Fiction accounted for 5.2% of non-feature film receipts on video and remained the most widely-sold genre in the segment (50.% in 2009). Since 2004, the market share for fiction among non-feature films has increased by 2. points. Receipts for French fiction decreased by 2.% in 200 ( 24.9 million). Foreign fiction revenue decreased by 3.%, to 233.8 million. Foreign works, most notably American works, were mainly responsible, generating 90.4% of revenue for fiction on video (90.5% in 2009). The fifth season of House was in 9th place in terms of revenue for non-feature films. Seasons 5 and 6 of Desperate Housewives, the sixth season of One Tree Hill and the sixth season of Grey s Anatomy also contributed to the success of American fiction in 200. In 200, the segment of children s fiction and animated programs was in second place among non-feature films, accounting for 9.4% of sales in terms of revenue (9.0% in 2009). This represents a decrease of 3.2% compared to 2009. The bestselling titles in 200 were American and were notably made up of video-only sequels of works of cinema that had great success in theaters, (such as Tinker Bell and the Great Fairy Rescue and Tinker Bell and the Lost Treasure). The market share for French programs remained stable in animation and children s fiction (8.5% in 200, same as in 2009). Revenue for French programs in the segment decreased by 3.% in 200, resulting in 8.09 million in receipts. The «Music» segment was the only non-feature film segment that had a slight increase in 200 (+.8%). It was in third place in the non-feature film market with 4.4% of revenue (3.4% in 2009). After an initial recovery in 2009, the market share for French programs increased again within the segment, reaching 59.0% in 200, compared to 52.4% in 2009. This was notably due to very high DVD sales of Mylène Farmer Stade de France and Enfoirés 200 Les Enfoirés la Crise de Nerfs!, in 2nd and 3rd place respectively among non-feature films in terms of revenue.,027.39 47.35 4.88,79.62 824.46 54.35 24.42,003.23 736.3 25.32 8.99 870.44 676.46 09.42 5.32 79.20 654.72 09.7 8.3 772.56 68.33 8.48 8.59 808.40 documentary children fiction humor music other total 74.84 7.02 0.40 842.25 +4.9% -.2% +2.0% +4.2% 2004................ 4.9..................... 40.59........................ 95.78........................ 25.27......................... 3.9......................... 5.78..................... 650.52............. 2005 2006 2007 2008 2009 200 evol. 0/09 E 33.72 39.03 247.25 4.28 38.44 2.90 685.63.................................. 42.96 24.46 37.44 09.35 30.75 3.43 738.39.................................. 36.28 08.74 34.38 83.7 09.7 0.92 663.20.................................. 30.26 04.6 283.96 72.80 73.69.56 576.44.................................. 34.26 0.08 266.70 50.9 7.54 8.97 532.74.................................. 25.94 97.88 258.68 42.42 72.79 7.77 505.48.................................. -24.3% -3.2% -3.0% -5.5% +.8% -3.3% -5.%.................................. Revenue for non-feature films on video by genre (millions of ) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. Source: CNC GfK. results 200 / CNC Dossiers / nº 38 May 20 07

0 Physical Video Media In fourth place, comedy shows accounted for 8.4% of non-feature film video receipts in 200 (9.4% in 2009). With 42.4 million in revenue, receipts in the humor segment dropped 5.5% compared to 2009. French comedians accounted for almost the entirety of sales (99.3% in 200, 98.9% in 2009). Performances Florence Foresti (st among non-feature films in 200), and Jamel Debbouze (7th) were the best examples. The documentary remained a marginal genre in non-feature film on video (5.% of receipts in 200). Its revenue decreased by 24.3% in 200. Despite their significant drop in market share, French documentaries maintained a clear majority (80.3% in 200, 85.2% in 2009). 00% 90% 80% 70% 60% 50% 40% 30% 20% 0% 0 E 2.4.9.8.6 2.0.7.5 20.2 20.2 7.7 6.5 2.8 3.4 4.4 9.3 30. 2.6 6.7 36. 20.3 4.8 43.0 6.9 2.5 47.4 6.4 2.6 49.3 8. 9.0 6.4 4.9 5.8 5.5 5.3 6.4 5. 2004 2005 2006 2007 2008 2009 200 Breakdown of revenue for non-feature films on video by genre (%) 9.4 50. documentary children fiction humor music other The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. Source: CNC GfK. 8.4 5.2 9.4 F Specialty superstores remain the primary sales channels In 200, hypermarkets and supermarkets represented 40.% of total revenue for video sales (not including magazine stands and gas stations), compared to 40.5% in 2009. Specialty superstores (FNAC, Virgin, etc.) dominated the video market for the second year in a row: their market share went from 46.2% in 2009 to 45.6% in 200. Since 2004 (34.5%), the video market share of specialty superstores has increased by. points. Online physical video sales have been measured separately since 2007 and had a market share of 2.5% in 200 in revenue, compared to.4% in 2009 (+3.2 points compared to 2007). Other channels of distribution (particularly mail-order sales) decreased, accounting for.7% of sales revenue in 200 (.9% in 2009). The Internet was the only distribution channel where revenues increased in 200 with a 9.8% increase, compared to -0.9% at major supermarkets and -.2% at specialty superstores. 2004 2005 2006 2007 2008 2009 200 E documentary children fiction humor music other total 77.8 9. 5.2 99. 48.8 44.7 4.6 98. 7.0 6.9 98.8 48.3 84.3 42.2 95.0 6.8 4.3 98.7 53.2 82.8 40.0 92.9 20.7 9.9 98.2 49.4 8. 35.0 90.0 8.4 9.5 97.8 47.0 85.0 32.8 85.2 8.5 9.5 98.9 52.4 83.8 3.5 80.3 8.5 9.6 99.3 59.0 77.5 30.7.............................................................................................................................................................................................................................................. Market share of French non-feature films on video by genre (%) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. Source: CNC GfK. 00% 80% 60% 40% 20% 0 F.3 34.5 54.2 3.0 37.3 49.7 2.7 39.3 48.0 2.9 2.8.9.7 9.3 0.4.4 2.5 4.0 42.8 46.2 45.6 46.8 44.0 40.5 2004 2005 2006 2007 2008 2009 200 Breakdown of video revenue by point of sale (%) S 2 SS 2 Internet others selling points The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. Since 2007, internet sales are differentiated from the «other points of sale» category. 2 S = supermarkets; SS = specialty superstores. Source: CNC GfK. 40. 08 results 200 / CNC Dossiers / nº 38 May 20

G An ever-growing selection In total, about 60,800 DVD titles and 3,200 Blu-ray titles were sold in 200 at specialty superstores. These serve as a gauge of more diverse supply. Specialty superstores offer.4 times more video titles than hypermarkets and supermarkets (.39 in 2009). For the second year in a row, the number of titles available on the internet in 200 (over 58,00) was slightly lower than the number available at specialty superstores. The internet offers nearly 3,200 Blu-ray titles, i.e., as wide a variety as specialty superstores and 6.9% more than hypermarkets and supermarkets. In addition, it should be noted that about 750 were available at specialty superstores on VHS in 200 (800 in 2009), compared to 300 at supermarkets (500 in 2009) and 50 on the internet (600 in 2009). DVD S 2 SS 2 Internet others selling points Blu-ray 3 S 2 SS 2 Internet others selling points VHS S 2 SS 2 Internet others selling points 2004 2005 2006 2007 2008 2009 200 5,740 20,82 26,0 29,573 30,72 42,30 42,79 28,8 33,302 4,044 47,388 52,504 59,36 60,793 _ 49,790 52,32 57,46 54,94 25,60 32,558 43,485 5,70,746 7,043 9,222 2004 2005 2006 2007 2008 2009 200 _ 350 894,707 2,733 _ 373,064 2,065 3,248 _ 470,30 2,7 3,94 _ 08 369 430 720 2004 2005 2006 2007 2008 2009 200 6,629 4,407 3,008 0,667 5,976 2,380 _ 6,780 4,659,837 The complete results for the physical video media market were published in March 20 in CNC report nº 37, which can be viewed online at www.cnc.fr. total S 2 SS 2 Internet others selling points G 2004 2005 2006 2007 2008 2009 200 22,369 25,29 29,09 29,923 3,066 44,008 45,524 38,785 39,278 43,424 47,76 53,568 6,20 64,04 _ 50,260 53,63 59,37 58,35... 32,390.................... 37,27.................... 45,322.................... 5,88..................... 2,5..................... 7,473.................... 9,942.......... Video selection by point of sale (in number of titles) The scope of analysis is modified beginning in 2007: VHS is no longer included. HD formats are included. Since 2007, internet sales are differentiated from the «other points of sale» category. 2 S = supermarkets; SS = specialty superstores. 3 This medium, developed by Sony, became the standard HD medium in 2008. results 200 / CNC Dossiers / nº 38 May 20 09

Univers Ciné (www.univers.ciné.com), VoD Platform. Univers Ciné. 202 by Roland Emmerich. Sony Pictures France Relasing. RTT by Frédéric Berthe. Studio Canal. House M.D. TF. Lost. TF. Medici.tv (www.medici.tv) VoD Platform. Medici.tv.

Video on Demand & Catch-up TV In 200, revenue from video on demand (VoD) was estimated at 35.66 million, compared to 97.07 million in 2009. With an ever-growing selection of films available, more and more people are taking advantage of VoD. The selection of programs available from free national television channels online through catch-up TV consisted of an average of more than 6,000 videos per month in the fourth quarter of 200. 52.8% of Internet users surveyed said they had watched catch-up TV programs in the previous 2 months. Protéger & servir by Éric Lavaine. Pathé Distribution. The Hurt Locker by Kathryn Bigelow. SND. Green Zone by Paul Greengrass. Studio Canal.

Video on Demand & Catch-up TV VIDEO ON DEMAND (VoD) The video on demand (VoD) market has been growing since 2007. In February 20, 52 active VoD service providers were listed in France. The number of VoD providers goes beyond catch-up TV services and platforms specializing in adult films or programming. If services are accessible through several means of access or on several websites under a generic brand, they are only counted once. The composition of a publisher s catalog can vary depending on its mode of distribution. The main novelty of 20 is the emergence of portals for connected TVs. Over 5,500 films available in the first half of 200 The availability of films in VoD continued to grow. According to data on VoD collected by the CNC, the eight platforms analyzed (Arte VoD, Canalplay, Club Vidéo, France Télévisions, Orange, TF Vision, Universciné and Virgin Méga) offered over 5,500 films (5,56 films) through video on demand in the first half of 200. In June 200, these platforms offered 5,094 films, i.e., 6.9% more than in June 2009 (4,356 films). The distribution by film nationality changed slightly in comparison to 2009. French films still accounted for the largest share of films available (2,330 films, i.e., an increase of 23.2%), ahead of American films, which accounted for one out of three available films (,70, +6.5%) and films from other countries (,063 films, +22.5%). The number of recent films, released in cinemas less than 2 months prior, increased significantly (+85.0%), reaching 209 films. Nevertheless, the majority (84.2%) of the films available in VoD in June 200 were catalog films, which had been released in cinemas over three years prior. Of the available films, 94.6% were fiction and nearly half (49.7%) were classified as Art House films. Nearly two thirds (65.4%) of available films had received fewer than 500,000 cinema admissions A (+. points compared to June 2009) and 2.4% had received more than one million admissions (-0.9 points). Multi-platform selection continued to grow: of the 5,094 films available in June 200, 40.2% were available through only one platform (-9. points compared to June 2009). The largest share of films (42.6%) was available through two or three platforms. Paid VoD: a market worth more than 35 million Methodology The scope of analysis of the GfK-NPA Conseil barometer for VoD consumption was modified in 2009 with the addition of a platform during the year. All 2009 data were reprocessed in order to consider changes between 2009 and 200 on a like-for-like basis. In contrast, previous data do not take this modification into account. The 00% total market estimates for paid VoD in France were based on an updated leaderpanel coverage rate of approximately 80% starting in April 2008 (excluding platforms specializing in adult films or programs.) According to the GfK-NPA Conseil barometer published in February 20, revenue from paid VoD in France was estimated at 35.66 million in 200, i.e., an increase of 39.5% compared to 2009. This revenue increase translated into a revenue growth of 52.0% with 39.4 million paid transactions in 200. In December 200, monthly VoD revenue crossed the 5 million threshold for the first time, with over 4 million paid transactions. The average prices per transaction continued to decrease: 3.42 for rentals (-8.% compared to 2009) and 7.38 for sales (-33.0%). An analysis of average pricing reveals differences by genre: while the average transaction price for a feature film increased to 4. (+4.6% compared to 2009), average prices for adult programming decreased slightly to 7.7 (-0.4%). While payment per transaction accounts for the overwhelming majority of revenue (93.3% in 200), subscription services are developing rapidly. Revenues generated by subscriptions accounted for 6.7% of total VoD revenue and 27.6% of transaction volume in 200 (3.3% and 20.0%, respectively, in 2009). Paid transactions in the form of VoD rental (streaming or temporary download) accounted for 98.8% of revenue (-0. points compared to 2009). VoD onto television sets remained more popular than on computer screens. In 200, 95.7% of paid VoD transactions were made on IPTV and accounted for 94.3% of total revenue. Between 2009 and 200, paid IPTV transactions increased by 56.7% in volume and 45.7% in revenue, while internet transactions declined by 8.5% in volume and 8.0% in revenue. 40 20 00 80 60 40 20 0 A 5.4 23.8 6.3 46.7 9.4 87.6 2007 2008 2009 VoD revenue¹ (in millions of ) TVIP PC Through non-specialized platforms. Source: GfK NPA Conseil. 7.8 27.9 200 2 results 200 / CNC Dossiers / nº 38 May 20

B The high level of VoD consumption did not just result from strong performance by certain films, but rather, is the sign of a dynamic overall market. Thus, movies concentration was not very strong. The ten bestselling movies accounted for 4.8% of all transactions in 200 (5.5% in 2007). Since 2007, the 30 bestselling movies have accounted for about % of total transaction volume. C Feature films generated over 60% of revenue Feature films remained the largest contributors to VoD revenue: their share remained stable at 64.2% of revenue in 200. In volume, American films remained in the majority, accounting for 56.2% of purchased films, with a share increase of.2 points compared to 2009. In volume, the market share of French films decreased slightly to 30.8% in 200 (-0.7 point) while the share of other films decreased to 3.0% (-0.5 point). 2007 2008 2009 200 B top 0 top 20 top 30 5.5 9.0.7............................................... 5. 8.5.2............................................... 4.8 7.8 0.3............................................... 4.8 8.4.2............................................... Results for bestselling movies in VoD¹ (% of transactions) Through non-specialized platforms. Source: GfK NPA Conseil. In 200, television programs (documentaries, TV series, music, humor, youth programming) accounted for more VoD revenue: 8.7%, compared to 4.8% in 2009. Television series accounted for over half (57.5%) of revenue for television programs, compared to one third (35.6%) in 2009. Among TV series and programs consumed in VoD in 200, American productions remained in the majority, accounting for 82.4% of programs in volume. The share of French programs was 3.8%, while that of programs from other countries was 3.8%. French programs accounted for slightly over one third of youth programming consumed in VoD in 200 (34.0%). The share of American programs was 26.2% and share of programs from other countries was 39.8%. Adult films continued to lose market share in terms of revenue through non-specialized platforms and accounted for 27.% of paid VoD revenue in 200 (-4.6 points). Cinema 64.2% C TV Series 5.0% Humor.0% Documentary 0.7% Other 0.6% Structure of VoD revenue by genre in 200 (%) Through non-specialized platforms except unlimited subscription. Source : GfK NPA Conseil Adult audience 27.% Music 0.4% Young audience 0.9% bilan 200 / les dossiers du CNC / nº 38 mai 20 3

Video on Demand & Catch-up TV D VoD practices and uses in France Methodology The following data were drawn from measurements on Internet users practices with regard to VoD taken by the CNC. This survey was administered online by Harris Interactive to 6,526 individuals over the age of 5 from January 3 to December 2, 200 (3 successive waves). In 200, VoD awareness continued to grow. Nearly 83% of French Internet users had already heard of video on demand, i.e., an increase of 2.6 points compared to 2009. VoD use also grew throughout 200. In December 200, 7.6% of Internet users said they had already used paid VoD on their televisions, compared to 4.% in December 2009. Over the course of 200, about 6% of Internet users consumed paid VoD through IPTV. Television remained the preferred medium for the consumption of paid VoD services. In 200, 5.9% of Internet users had already paid to watch television programs with VoD on IPTV, compared to 7.5% on the Internet. The difference between the two media is growing wider: In 2009, there was a 5.3-point difference favoring IPTV, and in 200, it grew to 8.4 points Since 2009, the share of male VoD users on IPTV has decreased, with comparable proportions for users of both genders (5.5% men, 48.5% women in 200). The distribution of VoD users on IPTV by age group remained stable compared to 2009: 54.9% fell into the 25-49 age group (55.5% in 2009). The share of users aged 50 and older increased slightly (+0.8 point to 9.6%), at the expense of the 35-49 age group (-0.6 point to 29.0%). Differentiated VoD penetration rate according to gender and age In 200, the use of paid VoD on IPTV was more popular among men (7.3% of male Internet users) than women (4.6%). Paid VoD on IPTV remained most popular within the 25-34 age group: more than a quarter (25.2%) of Internet users in this age group had already used paid VoD on IPTV. This practice was especially popular among residents of Paris and its surrounding regions (8.9%) and members of the upper socio-professional category (20.5%). Over 40% of VoD users are regular movie-goers Among paid VoD users on IPTV who went to the movie theater, the proportion of habitual moviegoers (those who go to the theater at least once a month) increased in 200: 40.7%, compared to 37.7% in 2009. Occasional moviegoers nevertheless still accounted for the majority of VoD users on IPTV (59.3% of all users who went to the movie theater). The penetration of paid VoD on IPTV increased especially among regular moviegoers (those who go to the movie theater at least once a month but less than once a week): 2.0% in 200, compared to 5.0% in 2009. It also grew within the rest of the movie-going population, but to a lesser extent: 20.% for frequent moviegoers (those going to the movie theater at least once per week), an increase of 2.6 points compared to 2009, and 6.5% for occasional moviegoers (those going to the movie theater less than once per month), an increase of 3.9 points. E In 200, an average of 3.0 programs were rented or purchased in VoD per month and per user (3.3 in 2009). This slight decrease belies an enormous level of variation from month to month, which is dependent on film availability. In 200, there was a smaller gap between men and women with regard to VoD consumption: men had an average of 3. paid transactions per month, while women had 3.0 transactions (3.7 and 3.2, respectively, in 2009). Just as in 2009, an overwhelming majority (88.0%) of users who had already paid to see a program on their television sets or computer were now watching an average of between one and five programs per month. Recent feature films (not including adult films) always appeal to many users. In 200, a majority of paid VoD users (52.8%) were consumers of recent American films (+2.7 points compared to 2009). The proportion of users who had watched recent French films also grew, to 37.3% (+.9 points). American television series remained attractive, but the share of paid VoD users who watched this type of programming decreased slightly to 4.0% in 200 (-0.8 point compared to 2009). The share of users consuming adult films continued to decrease, reaching 4.% of paid users (5.2% in 2009). 4 results 200 / CNC Dossiers / nº 38 May 20

2007 2008 2009 200 5% 0% 5% 0% D 6.9 4.9 8.7 5.8 2007 2008 2009 Penetration rate for paid VoD (% of Internet users) TVIP Internet Source: CNC Harris Interactive. 2. 6.8 5.9 200 7.5 recent American feature films recent French feature films American TV series old American feature films documentaries old French feature films foreign feature films children s programs adult films concerts / shows television series, French or foreign others E 44.3 48.5 50. 52.8 35.8 34.3 35.4 37.3 2.6 5.2 4.8 4.0 9.6.0 0.9. 7. 9.6 7.9 7. 6.8 8.0 8.7 7. 5.3 5. 5.4 5.8 6.4 6. 5.2 5.2 8.0 8.2 6.5 5. 6.0 6.5 4.3 4.3 4.4 4.4 4.0 3.3 6.3 5.0 5.2 4..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Penetration of paid VoD by genre (%) Base: individuals who have paid to see movies or TV VoD programs over the Internet or TVIP. Reading: in 200, 52.8 % of pay VoD users have paid to watch recent American VoD films. Source: CNC - Harris Interactive results 200 / CNC Dossiers / nº 38 May 20 5

Video on Demand & Catch-up TV CATCH-UP TV Methodology Since October 200, the CNC has established two new monthly barometers to measure the availability and use of catch-up TV. The study on catch-up TV availability and use, conducted by TV-replay.fr, presents the availability of free national television channel programs available on catch-up TV on the Internet in number of videos and hourly volume. The usage of catch-up TV is measured by an online survey administered by Harris Interactive for Internet users aged 5 and over. Catch-up TV is part of a set of services allowing people to watch programs after their broadcast on a television channel, usually for a limited time, either for free or at no additional cost with a subscription. Different media can be used to watch channels catch-up TV: computers, television sets, and mobile screens (such as telephones or multimedia players). Access through computers is achieved by way of the channels websites. On television, programs are made available through intermediary television service providers (by cable, satellite, or ADSL). Finally, for mobile devices, programs are available through dedicated applications created by the channels. Services on computers, television, and mobile devices All free FTA channels have websites that make some of their programming available to the public through catch-up TV. Access to this programming is entirely free. Eight websites use the term replay, launched by M6 during the creation of its website in 2008 (Direct 8 replay, Gulli replay, etc.). Programs made available by channels in the TF and Canal+ groups and by parliamentary channels were accessible in the videos section of their websites. Pluzz, the catch-up TV platform from France Télévisions, was launched in July 200 and includes offerings from the public television group s five channels: France 2, France 3, France 4, France 5 and France Ô. On television, catch-up TV offerings were heterogeneous according to operator, combining programs accessible to everyone and those reserved for optional channel subscribers. Free provides the most extensive selection of catch-up TV of all the television services included in multiservice offerings by telecommunications service providers. Since the end of June 200, Freebox s replay service allows its subscribers to watch or replay programs from 33 channels in the seven days following their broadcast, not counting services from the Canal+ group, which had already been available previously (Canal+ on demand and CanalSat on demand). M6 replay is the only service available through all service providers. However, access to television through ADSL networks by telecommunications service providers is not the primary mode of television access, thus reducing potential penetration of catch-up TV offerings on television sets. All traditional FTA channels now have mobile applications (at least for the iphone) that provide access to catch-up programs. These applications are available in online stores for cell phones: Android Market, App Store, BlackBerry App World, Ovi Store, Zune Store, etc. After introducing a paid application on the market in July 2009 that cost 3.99, TF launched a new, free application in January 20, paid for by advertising. The application from Canal+ has been available for free since December 2009. The app from France Télévisions, which includes the group s five channels, was made available in January 200. The app from M6 was launched on September 29, 200. Arte has been offering a dedicated application since December 200. 64% of programs broadcast are available on the Internet through catch-up TV Television channels are continuing to broaden the program offerings made available through catch-up TV. According to the TV-replay.fr NPA Conseil indicator, 64% of programs broadcast between 5:00 pm and midnight on traditional FTA channels were available online through catch-up TV in March 200, i.e., an increase of five points compared to September 2009 (59%) and points compared to a year prior (53% in March 2009). M6 had the most extensive offering (88% of programs in the category). This proportion was lower for France Télévisions. 53% of France 2 programs and 59% of France 3 programs were available on catch-up TV in March 200. Before launching the unified offerings of France Télévisions under the Pluzz brand, an exclusive contract was made between France Télévisions and Orange for part of its catch-up TV offerings. France Télévisions offerings were therefore increased beginning in July, particularly by making available France 3 s soap opera Plus Belle la Vie. 6 results 200 / CNC Dossiers / nº 38 May 20

F 7,000 videos available online through catch-up TV in December 200 The online catch-up TV offerings from all national FTA channels consisted of over 6,000 videos per month on average in the fourth quarter of 200, i.e., an average monthly volume of nearly 5,900 hours. The offerings have been growing constantly since the barometer was established. This included over 5,000 videos in October 200, over 6,000 videos in November 200 and over 7,000 videos in December 200. News programs (on average 50.0% of available videos per month during the last quarter of 200) and flux programs (42.4%) accounted for most of the offerings. Animation, documentaries, fiction, and feature films made up 7.5% of the videos offered by national FTA channels online through catch-up TV. On average, offerings included 544 fiction programs (382 hours), 46 animated programs (5 hours), 256 documentaries (206 hours) and 9 feature films (2 hours) per month during the last quarter of 200. Catch-up TV programs online were generally available for 0 to 7 days (42.9% of videos per month on average in the fourth quarter of 200) or more than 30 days (55.7%). A growth in the number of videos available between the months of October, November, and December 200 can be explained by an increase in programs available for over 30 days, consisting almost entirely of news programs and flux programs. Programs available for 0 to 7 days were, by definition, renewed every week. The change in volume for this category depended on the channels programming (and seasonal effects) and on the share of program line-ups that each channel made available on catch-up TV. It depended on the rights of the channels and the choices they made, particularly with regard to genres. Offerings were most diverse for programs available between 0 and 7 days. News programs and flux programs remained in the majority (82.9% of videos), but this category also included fiction programs (7.7%), animation (5.9%), documentaries (3.4%), and feature films (0.%). In contrast to flux programs, stock programs were, in most cases, available for 0 to 7 days (92.8% of documentaries, 98.% of fiction programs, 99.6% of animation and 00.0% of films). 0 to 7 days 8 to 4 days 5 to 30 days Over 30 days total F number of videos number of hours Oct. 0 Nov. 0 Dec. 0 Oct. 0 Nov. 0 Dec. 0.. 7,666................... 7,7................. 6,24................. 2,687.................. 2,434..................,994.......... 30 20 54 74 59 44..................................................................................................... 5 94 75 27 55 48....................................................................................................... 7,392.................. 8,975............... 0,773.................... 2,840.................. 3,32.................. 3,834.......... 5,239................. 6,396................... 7,26................... 5,628.................. 5,969.................. 6,09.......... Catch-up TV offerings online by period of availability ¹ National FTA channels: TF, France 2, France 3, Canal+ (free hours), France 5, M6, Arte, Direct 8, W9, TMC, NRJ 2, LCP-AN, Public Sénat, France 4, Direct Star (former Virgin 7), Gulli and France Ô. Source: CNC - TV-replay.fr. results 200 / CNC Dossiers / nº 38 May 20 7

Video on Demand & Catch-up TV TF and France 3 had the most extensive offerings TF and France 3 had the most expensive online catch-up TV offerings. 37.6% of videos available through catch-up TV were offered by TF. On average, France 3 accounted for 23.7% of monthly offerings in the last quarter of 200. News programs accounted for 66.5% and 74.2%, respectively, of their online catch-up TV offerings. Gulli had the most extensive offering of animated programs (an average of 32.8% of total monthly animation offerings during the last quarter of 200), ahead of TF (2.7%) and France 5 (6.8%). Arte had a rich offering of documentaries (65.3% of all documentaries available), ahead of France 5 (2.7%). M6 had the most extensive offerings in fiction (24.9% of total fiction offerings), ahead of TF (9.6%) and France 2 (2.9%). French fiction dominated fiction offerings made available by FTA channels through online catch-up TV (45.6% of fiction videos per month on average during the last quarter of 200). It stood ahead of American fiction (36.7%), European non-french fiction (0.4%) and fiction from other countries (7.4%). In the last quarter of 200, American fiction accounted for an average of 46.9% of fiction offerings from TF, 62.8% from M6 and 73.0% from France 2. France 3 s offerings were almost entirely French (98.2%). French fiction accounted for the majority of the fiction selection from TF (52.5%) and Arte (48.6%). The latter also had a high proportion of European non-french fiction (42.2%). The proportion of French fiction was 27.0% for France 2 and 35.0% for M6. G H 52.8% of Internet users take advantage of catch-up TV The majority of Internet users have consumed catch-up TV programs. 52.8% of Internet users surveyed in the fourth quarter of 200 had watched programs on catch-up TV in the previous 2 months. This practice was equally popular among women (53.2%) and men (52.4%). Catch-up TV use decreased with age: 80.6% of Internet users aged 5 to 9 had watched programs through a catch-up TV service, compared to 32.7% of those aged 50 and older. Consumption was equally prevalent between members of the upper socio-professional category (52.4%), members of the lower socio-professional category (52.6%), and non-working individuals (52.3%). 36.4% of Internet users consuming catch-up TV said they watched catch-up TV programs at least once per week. Consumption of catch-up TV was rarely a daily practice: only 6.5% of online consumers said they watched catch-up TV every day. Daily use nevertheless appeared to be on the rise during the last quarter of 200. 30.8% of those surveyed used catch-up TV once to three times per month. Other Internet users (32.9%) watched catch-up TV programs less regularly. Computers were the main medium used for catch-up TV During the last 30 days, 45.4% of Internet users took advantage of catch-up TV to watch programs. Computers appeared to be the preferred viewing medium. I ndeed, 78.7% of Internet users who consumed catch-up TV in the previous 30 days had watched those programs on a computer. In the previous 30 days, catch-up TV penetration by television set was 42.6%. In contrast, mobile devices were still infrequently used for catch-up TV (6.4%). Evolution over the last three months of 200 showed an increase in the use of television sets for catch-up TV, while the use of computers declined slightly. Peak audience for catch-up TV is between 8:00 and 0:00 p.m. According to survey results from Internet users, American series and soap operas were the most popular programs on catch-up TV. 35.8% of Internet users consuming catch-up TV in the previous 30 days said they had watched American series and soap operas. Entertainment and games were in second place (3.7%), followed by TV magazines (30.2%), documentaries (28.9%) and French series and soap operas (8.3%). Catch-up TV use had similar time peaks to those of regular television audiences. The 8:00 to 0:00 p.m. time slot was the most popular time for watching catch-up TV programs, ahead of the 0:00pm-midnight and 6:00-8:00 p.m. slots. 44.% of Internet users consuming catch-up TV in the previous 30 days said they had watched programs between 8:00 and 0:00 p.m. This share was 52.3% within the 5-9 age group and was 32.4% among viewers aged 50 and older. Full results for the video on demand and catch-up TV markets were published in March 20 in CNC Report n 37, available online at www.cnc.fr. 8 results 200 / CNC Dossiers / nº 38 May 20

Intensive 6.5% Occasional 32.9% Constant 29.9% 00 80 60 78.7 40 42.6 45.4 Steady 30.8% 20 0 6.4 computer television mobile device all devices G Habits of Internet users concerning catch-up TV Intensive users: at least once a day; Constant users: at least once a week but less than once a day; Steady users: at least once a month but less than once a week, Occasional users: less frequently. Source: CNC - Harris Interactive (fourth quarter 200, users at least once during last 2 months). H Catch-up TV penetration by medium (%) Base: Internet users using catch-up TV at least once during the last 30 days. Source: CNC Harris Interactive (fourth quarter 200). results 200 / CNC Dossiers / nº 38 May 20 9

Louma 2. Loumasystems / Ficam. Soul Man by Guillaume Ivernel. Blacklightmovies. Digital Camera. Ficam. Speedstracks 3D. ACS France / Ficam.

Penelope Camera Aaton. MiCrowd. Golaem and Mikros Image. 2 Technical Services Sectors For the fifth year in a row, an economic appraisal of the technical services market is provided in this report, based on data provided by FICAM (Fédération des industries du cinéma, de l audiovisuel et du multimédia). Revenue for the technical services sector was.5 billion in 2009, a slight decrease over the previous year (-6.6%). Papa Sierra Camera. Papa Sierra / Ficam. Nodame Cantabile by Hideki Takeuchi. Fuji Television Network, Inc.

2 Technical Services Sectors Presentation of the technical services sector The technical services sector includes nearly 500 companies in France. Technical services companies are essential for the creation, production, and broadcasting of works in film and television. They provide the media for storing new works (on film, cassette, hard drive), equipment for filming (shooting, sound recording, machinery, lighting, etc.) and facilities equipped for filming (studios). They also provide the resources for modifying images (post-production and special effects) and reproducing original works for distribution (copies, laboratory processing, duplication). Finally, they provide the equipment for projecting films in movie theaters, broadcasting them on television or streaming them on the Internet, and the necessary tools for preserving works (digitization, archiving, storage). Thus, technical services companies include: _ manufacturers, including manufacturers of equipment and manufacturers or distributors of film media; _ filming service providers, including equipment rental companies, mobile control rooms and filming studios; _ laboratories that are involved in different development phases of a film, from shooting to finishing. This includes production laboratories, post-production laboratories, and duplication laboratories (for printing copies); _ image post-producers who carry out all finishing for works after they are filmed; _ sound post-producers, who are involved in editing the soundtrack for the images, using sounds recorded during shooting or reproduced in a studio and providing dubbing; _ companies specializing in the restoration of works, archiving, or storage. A B Methodology The data in this chapter were collected and analyzed by FICAM (Fédération des industries du cinéma, de l audiovisuel et du multimédia), an organization that encompasses over 80 companies that work in all technical trades and specialties in the realm of image and sound for recorded entertainment. Member companies represent over 70% of all revenue reported by technical services companies. Every year, the FICAM member companies provide economic and social data regarding their operations. This information is analyzed by FICAM in order to identify the general trends in the sector. To make up the sample used to study the sector, a selection of FICAM members was made on July, 200 (a panel of 09 companies that had provided workable data over several years). Unless specifically mentioned, each company is considered independent of its membership in any group. Modest-sized companies According to the results of a study done by FICAM, more than 80% of companies in the technical services sector had revenue of less than 0 million in 2009, as in previous years. Most of these companies have revenue between and 5 million (48.6% in 2009). Many sound and image post-producers are included in this category. Individually, very few companies have revenue that is higher than 50 million. However, when taken together, the first four companies accounted for over 50 million in revenue and employed over 500 individuals in 2009. 43.% of companies employ fewer than 0 permanent employees in 2009 (versus 37.6% in 2008) and 43.% have 0 to 49 employees (versus 49.5% in 2008). Companies in this sector are of modest size..5 Billion in revenue in 2009 To evaluate overall revenue for the technical services sector, only companies that obtained over 50% of their revenue by providing technical services are considered here. Revenue in the technical services sector was evaluated at.5 billion in 2009, a drop of 6.6% over 2008. Between 200 and 2003, revenues took a downturn. The causes of the downturn were clearly identified: increased relocation of filming to foreign countries, decrease in the volume of production work on first-run television and advertising markets, technological developments requiring heavy investments while the equipment in place has not yet been paid off, delays in payment of up to six months, and the need to employ qualified, and thus expensive, labor. Beginning in 2004, revenues of the technical services sector started rising again. This was due in particular to more shooting taking place in France, thanks to the creation of a new tax credit for works in film and television, and through the development of financial assistance at the regional level. This improvement in the market allowed companies to begin re-investing and to remain at the cutting edge of innovation by adopting the latest technologies (HD TV, digitization of data, increased storage capacity, real time digital post-production, etc.). Between 2007 and 2008, the revenue of this sector decreased again. When their budget exceeds 0 million, feature-length films are increasingly shot abroad, 70% of advertising films are shot outside of France. Returns on investment are not up to expectations. Digital is increasingly overtaking traditional silver film, but does not yet entail sufficient growth for the sector. In addition, payment is often exceedingly delayed. Among the companies used in the analysis of the sector (the 09 companies that provided workable data spanning several years), revenue decrease for technical services companies between 2008 and 2009 was more important than for the sector overall (-8.6%). In 2009, companies with revenue above 0 million accounted for 65.0% of the total revenue in the technical services sector. 22 results 200 / CNC Dossiers / nº 38 May 20

2004 2005 2006 2007 2008 2009 less than million between and 5 million between 5 and 0 million between 0 and 20 million over 20 million total A to 9 employees 0 to 49 employees 50 to 99 employees 00 employees or more total A 9 22 25 2 29 24..................................................................................................... 47 52 47 48 48 53..................................................................................................... 5 4 7 9 5 4..................................................................................................... 0 0 2 9 0..................................................................................................... 0 8 0 8 8..................................................................................................... 0 09 09 09 09 09..................................................................................................... Number of companies, by revenue Scope: companies that provided complete information in 2004, 2005, 2006, 2007, 2008 and 2009. Source: Ficam. 2004 2005 2006 2007 2008 2009 38 42 38 5 4 47 48 53 56 44 54 47 8 6 7 6 8 9 7 8 8 8 6 6 0 09 09 09 09 09......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Number of companies, by size of permanent workforce Scope: companies that provided complete information in 2004, 2005, 2006, 2007, 2008 and 2009. Source: Ficam. 200 2002 2003 2004 2005 2006 2007 2008 2009 B technical growth responding growth services companies 2,270 - - -............................................................................................................................,230-3.% - -............................................................................................................................,70-4.9% 669.0 -............................................................................................................................,90 +.7% 78.3 +7.4%............................................................................................................................,250 +5.0% 776.0 +8.0%............................................................................................................................,26 +0.9% 803.5 +3.5%............................................................................................................................,307 +3.7% 805.0 +0.2%............................................................................................................................,233-5.7% 798.0-0.9%............................................................................................................................,5-6.6% 729.0-8.6%............................................................................................................................ Revenue for the technical services sector (in millions of ) Ficam member companies, i.e. about 70% of total revenue for technical services companies. To evaluate overall revenue for the technical industries sector, only companies making more than 50% of their revenue within the technical services sector were counted. 2 companies that provided complete information: 0 in 2004 and 09 in 2005, 2006, 2007, 2008 and 2009. Source: Ficam. results 200 / CNC Dossiers / nº 38 May 20 23

2 Technical Services Sectors C D The global revenue of shooting professions Television remains the main client of technical service providers Technical service providers work mainly in five markets: feature film cinema, television programming, animated programs, 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. Cinema and television are the two main client industries of technical service providers. In 2009, the TV market (repeat and first-run programs) generated 49.0% of technical service providers revenues (44.9% in 2008). Since 2005, it is the first source of revenues for the technical services sector. The revenue generated by television remained stable in 2009 (-0.4% compared to 2008). The film sector generated 7.6% less revenue than in 2008. The film market accounted for 32.6% of the income for technical services in 2009, compared to 36.2% in 2008, 39.2% in 2007. The third market for technical services is advertising, generating 0% of total sales in 2009 (.% in 2008,.6% in 2007). Revenue in this segment suffered a decrease of 7.3% between 2008 and 2009. Since 2000, technical services for advertising have increasingly relocated to other countries, especially for shooting (70% estimated relocation rate). In 2009, the proportion of technical services revenue generated by animation increased to 3.7%. In terms of value, this sales figure increased by 29.2%. This phenomenon can be notably explained by the existence of large-scale animation projects. The multimedia market generates 2.7% of the technical service providers revenue in 2009 compared to.8% in 2008. Post-production activities are the main source of revenue In order to evaluate the contribution of each sub-sector within the technical services sector in comparison to total revenue for the industry, the revenue for each company was divided according to the different fields of activity in which it did business. Post-production professions overall contribute up to 48.2% to the total revenue of technical service providers in 2009 (versus 47.% in 2008). 7.2% of the total 2009 revenue is derived from image postproduction (versus 6.4% in 2008). Receipts were down 4.5% with respect to last year. The growing integration of postproduction equipment with production companies probably explains this trend. In 2009, the revenue of laboratory activities decreased by 4.0% with respect to 2008. This significant drop can notably be explained by the beginning decline of silver film. Laboratories contribute up to 4.2% to the total revenue of technical service providers in 2009, versus 5.% in 2008. television cinema advertisement and institutional films animation multimedia other (video, live entertainment, training, etc.) total C 2004 2005 2006 2007 2008 2009. 309.4.................. 346.5................... 347.3.................. 347.7................. 358.6................... 357.0......... 37.6 305.7 38.5 35.9 289.0 238.0..................................................................................................... 72.2 78.2 89.6 93.6 88.3 73.0..................................................................................................... 0.0 24.4 20.8 6.8 20.9 27.0..................................................................................................... - - - - 4.0 20.0..................................................................................................... 9. 2.2 27.3 3.0 27.2 4.0....................................................................................................... 78.3................. 776.0.................. 803.5.................. 805.0.................. 798.0.................. 729.0.......... Revenue for the technical services sector, by market (in millions of ) Scope: companies that provided complete information in 2004, 2005, 2006, 2007, 2008 and 2009. Source: Ficam. (manufacturing, shooting-studio, shooting-rental and shooting-mobile video) records a 9.6% decrease in 2009. Mobile video shooting revenue increased by 20.7%, as opposed to studio shooting revenue, which increased by 38.3%. The revenue derived from shooting equipment rental decreased by 5.6%. The global contribution of shooting professions to the total sales of technical service providers in 2009 is 37.9% (versus 38.8% in 2008). image post-production sound post-production dubbing and subtitling broadcasting shooting studio shooting rental shooting mobile video duplication laboratory DVD manufacturing archiving, storage, restoration other (credits, special effects, logistics, etc.) total D 2004 2005 2006 2007 2008 2009.. 33.2.................. 47.4.................. 32.5.................. 4.0.................. 3.2................. 25.3.......... 33.6 35.9 43.7 48.5 43.7 43.0..................................................................................................... 50.3 55. 6.3 67.0 8.0 79.5..................................................................................................... 24.7 27.7 4.0 5.0 2.7 6.9..................................................................................................... 6.9 54.6 99.7 06.7 20.0 74.0..................................................................................................... 64.2 63.4 7.0 78.6 63.0 59.5..................................................................................................... 94.6 23.4 72.0 78.0 9.0 09.8..................................................................................................... 3.2 8.9 4.0 2.0 54.5 49.7....................................................................................................... 29.2.................. 4.9.................. 72.5................. 54.4................... 20.3................. 03.5.......... - - - 7.4 6.5 6.2..................................................................................................... 99.4 99.5 00.0 72.5 32.0 33.2..................................................................................................... 0.9 3.7 3.6 8.4 2.4 2.2..................................................................................................... 23. 4.5 29.2 6.5 29.7 26.2....................................................................................................... 78.3................. 776.0.................. 803.5.................. 805.0.................. 798.0.................. 729.0.......... Revenue in the technical services sector, by activity (in millions of ) Until 2006, subtitling was grouped with laboratory. Beginning in 2007, it is grouped with dubbing services. Scope: companies that provided complete information in 2004, 2005, 2006, 2007, 2008 and 2009. Source: Ficam. 24 results 200 / CNC Dossiers / nº 38 May 20

E F Export revenue decrease For the technical services sector, exports essentially result in services that are rendered in France for foreign films, for which invoicing is done abroad. In 2009, the revenue for technical industry exports dropped significantly (-22.7%). Exports made up 6.5% of total revenue for the companies in question, versus 7.7% in 2008. This proportion has been going down since 2006. The implementation of the international tax credit through the December st, 2009 decrees mainly aimed at curbing this trend. Further Investments decrease In 2009, investments by technical service providers dropped, almost to their 2005 level. On average, they represent 7.3% of the revenue of companies (7.5% in 2008). Each company invested an average of 488,990 in 2009, compared to 550,500 in 2008. equipment exhibitors film and equipment laboratories and subtitling copies manufacturers equipment shooting service providers equipment services and rental film post-produced movies equipment post-producers image / sound post-produced movies exports revenue exports / revenue E 2004 2005 2006 2007 2008 2009 62.7 76.8 7.7 68.7 6.2 47.3....................................................................................................... 78.3................. 776.0.................. 803.5.................. 805.0.................. 798.0.................. 729.0.......... 8.7% 9.9% 8.9% 8.5% 7.7% 6.5%..................................................................................................... Technical industry exports (in millions of ) Scope: companies that provided complete information in 2004, 2005, 2006, 2007, 2008 and 2009. Source: Ficam. film distributors producers TV channels dubbing / post-synchronisation service providers dubbed movies investments revenue investments / revenue F 2004 2005 2006 2007 2008 2009 34.5 47.0 63.3 92.5 60.0 53.3....................................................................................................... 78.3................. 776.0.................. 803.5.................. 805.0.................. 798.0.................. 729.0.......... 4.8% 6.% 7.9%.5% 7.5% 7.3%..................................................................................................... Technical Industry Investments (in millions of ) Investments relating to the purchase of new equipment (training and research & development were not counted). Scope: companies that provided complete information in 2004, 2005, 2006, 2007, 2008 and 2009. Source: Ficam. Main activities and clients in the technical services sector Source: CNC Ficam. results 200 / CNC Dossiers / nº 38 May 20 25

2 Technical Services Sectors FICAM S ACTIVITY AND MARKET OBSERVATORY Remarks on methodology For several years, FICAM s Activity and Market Observatory has been listing French-initiative feature films with the aim of following the evolution of film shoots and their characteristics in France. Films are categorized by the year in which the first day of shooting began. This list is different from the one traditionally offered by the CNC (see chapter 6, page 57), where films are generally categorized by the year when they collected investments, before the start of filming. FICAM s Activity and Market Observatory monitors film shoots for single episodes and series in televised fiction with the same objective. Just as for cinematic films, they are categorized by the year in which the first day of shooting began. Thus, these counts are also different from those conducted by the CNC, where the reference year is the one in which financing is requested (see chapter 7, page 7). G H Decline in 35 mm format for filming French-initiative cinematographic fiction The dominance of the 35 mm shooting format is in decline. It was used for 72.6% of filming weeks for French-initiative cinematographic fiction in 2008, but accounted for just 62.4% of those weeks in 200. The use of large-sensor digital cameras is gradually replacing the traditional 35 mm format. 5.7% of filming weeks were conducted with these cameras in 200, compared to.4% in 2009 and only.% in 2008. Note the appearance of digital photo cameras as a filming medium in 200 (4.2% of total filming weeks). Rapid growth in digital postproduction The share of French-initiative cinematographic films whose postproduction is done in analog is decreasing drastically, from 24% in 2009 to 5% in 200. Globally, digital postproduction, which accounted for 7% of works in 2009, reached 86% of works in 200. Postproduction in 2K digital alone accounted for 68% of films. Excluding films whose mode of postproduction is unknown, digital postproduction accounted for nearly 95% of French-initiative cinematographic fiction in 200. I HD: the dominant format for filming televised fiction HD remains the dominant filming format for Frenchinitiative televised fiction. It accounted for 63.9% of filming weeks in 200. The prevalence of HD has nevertheless decreased slightly, as it accounted for 65.9% of filming weeks in 2008 and 64.5% in 2009. The breakthrough of filming with large-sensor digital film cameras was confirmed in 200. It accounted for.2% of filming weeks for French-initiative televised fiction. In 2009, its share was only.5% (there was no filming of televised fiction in this format in 2008). Traditional film is losing ground. The 35 mm and 6 mm formats accounted for 2.0% of filming weeks for French-initiative televised fiction in 200, compared to 27.2% in 2009 and 33.% in 2008. The appearance of digital photo cameras in 200 as a medium for filming televised fiction should also be noted (2.2% of the total number of filming weeks). 26 results 200 / CNC Dossiers / nº 38 May 20

SD/HDV/XDCam/DVCam video camera digital photo camera HD video camera large-sensor digital film camera 6 mm 35 mm not specified total 2008 2009 200 2..2 2.3................................................ - - 4.2................................................ 6.4 5.2 2.0..................................................4 5.7................................................ 6.9 3.6 3.4................................................ 72.6 68.5 62.4.................................................0 0.0 0.0................................................. 00.0.................. 00.0.................. 00.0........... Traditional analog HD video 2K digital video 4K digital video SD video not specified total 2009 200 24 5.............................. 27 6.............................. 43 68.............................. 2.............................. 0.............................. 4 9.............................. 00 00.............................. 6 mm 35 mm HD beta / DV / SD large-sensor digital film camera digital photo camera not specified total 2008 2009 200 29. 7.5 4.0............................................... 4.0 9.7 7.0............................................... 65.9 64.5 63.9................................................0-0.5............................................... -.5.2............................................... - - 2.2............................................... - 6.8.2................................................ 00.0.................. 00.0.................. 00.0.......... G Breakdown of shooting weeks by filming medium for cinematographic fiction (%) French-initiative cinematographic fiction whose filming began in that year. Source: Ficam s Activity and Market Observatory. H Cinematographic fiction postproduction (% of films) French-initiative cinematographic fiction whose filming began in that year. Source: Ficam s Activity and Market Observatory. I Breakdown of shooting weeks by filming medium for televised fiction (%) French-initiative televised fiction whose filming began in that year. Source: Ficam s Activity and Market Observatory. results 200 / CNC Dossiers / nº 38 May 20 27

Beauty and the Paparazzo by Antonio-Pedro Vasconcelos. MGN Filmes. The Chronicles of Narnia The Voyage of the Dawn Treader by Michael Apted. Twenthieth Century Fox France. Welcome to the South by Luca Minieri. Pathé Distribution. Raiponce by Byron Howard and Nathan Greno. Walt Disney Studio Motion Pictures France. Despicable Me by Pierre Coffin and Chris Renaud. Universal Pictures International France.

Harry Potter and the Deathly Hallows Part by David Yates. Warner Bros France. 3 World Cinema initial estimates indicate that European union movie theater admissions fell slightly in 200 (2%), but posted contrasting results depending on the market. attendance was up in italy (+%) and in France (+2.4%), but fell in Germany (-3.5%), Spain (-7.6%) and in the united Kingdom (-2.4%). in the united States, admissions fell slightly, but american films set new records in terms of international box-office receipts. Japan had an excellent level of attendance, with national films retaining a high market share. China continued to show significant growth Alice in Wonderland by Tim Burton. Walt Disney Studio Motion Pictures France. Toy Story 3 by Lee Unkrich. Walt Disney Studio Motion Pictures France. The Man from Nowhere by Jeong-Beom Lee. Opus Pictures. Robin Hood by Ridley Scott. Universal Pictures International France.

3 World Cinema A European Union Initial estimates from the European Audiovisual Observatory indicated that EU movie theater admissions fell 2% in 200. Total attendance amounted to 96 million admissions (980 million in 2009). 200 posted contrasting results, with attendance varying noticeably from market to market. Italy had the highest increase (+2.3 million admissions, +%), ahead of France (+4.9 million, +2.4%). Attendance decreased noticeable in Germany (-9.7 million, -3.5%) and more moderately in Spain (-8.4 million, -7.6%) and in the United Kingdom (-4.3 million, -2.4%). Outside of the EU, the Russian Federation had, as in preceding years, a significant increase in admissions (+9.5% to 65.5 million). It became the third largest film market in Europe in terms of admissions, almost equal to the United Kingdom. The Turkish market also rose by.3% in 200, reaching 4. million admissions. In 200, the market share for national films declined in 3 and rose in 0 of the 23 countries in the EU for which data is available. Among the best results, Italian films captured 32% of admissions in Italy and Czech films had 34.8% of admissions in the Czech Republic. In addition, German films lost close to half of its admissions in Germany, with market share falling to 6.8% (27.4% in 2009). In Spain, national films had a market share of 2.7%, the lowest of the decade. B Germany According to the figures presented by the Filmförderungsantalt (FFA), German movie theater attendance fell 3.5% in 200. Admissions went from 46.3 million in 2009 to 26.6 million in 200, going back to about the level of 2007. After a promising beginning of the year (+6.2% and +9.9% respectively in January and February), admissions fell practically for the rest of the year. The best result was attained in the month of August (+24%), notably due to the release of Inception and Grown Ups. The worst result was recorded in June (-4.8%), a direct result of the FIFA World Cup. Despite the on-screen presence of Harry Potter and the Deathly Hallows Part, Tangled and Alvin and the Chipmunks: The Squeakquel, the year ended with poor results (35.8% fewer admissions in December). According to the initial information available, box-office receipts generated by cinemas in 200 increased in 4 countries in the European Union, confirming that 3D films continued to sustain the growth in box-office receipts, without however being able to stimulate growth in admissions as they had done in 2009. 2000 200 2002 2003 2004 3 2005 2006 2007 5 2008 2009 A feature-length european films admissions attendance film US film produced screens 2 (millions) 2 index 2 share (%) 4 share (%) 602 23 555 844 2.3 23 73.............................. 627 24 446 935 2.5 32 65.............................. 644 25 234 938 2.5 28 70.............................. 672 25 774 890 2.3 26 7.............................. 770 28 727 006 2.2 30 67.............................. 85 29 020 894.9 38 60.............................. 883 29 024 926 2.0 33 64.............................. 806 29 683 920.9 35 63.............................. 848 29 76 925.9 33 66.............................. 893 29 87 980.9 3 67.............................. Cinema in the European Union Estimates excluding minority co-productions or American financed films in the UK. 2 Estimates. 3 Starting in 2004, Europe of 25. 4 Includes films produced in Europe, mainly in the UK, with American investments. 5 Starting in 2007, Europe of 27. Source: The CNC, according to the European Audiovisual Observatory. 30 results 200 / CNC Dossiers / nº 38 May 20

Because of the decline in attendance, and despite the increase in 3D films being shown, box-office receipts fell 5.7%. They went from 976. million in 2009 to 920.4 million in 200. Average ticket prices were 7.27 in 200 ( 6.67 in 2009), an increase of 9%. As a result of decreased admissions, the attendance index per capita fell to.55 admissions in 200 (.79 in 2009). In 200, there were 24 films shown in 3D in Germany (0 in 2009). Together, they generated 8.4 million admissions, that is 4.5% of total attendance (4.7% in 2009). The number of screens in Germany continued to decrease, a trend that began in 2006. 4,699 screens with 809,50 seats were active in 200. The number of multiplexes was stable at 43 (42 in 2009). According to the figures provided by The Hollywood Reporter, Warner Bros was once again the leading film distributor in 200, with a market share of 8.5%, particularly due to the success of Harry Potter and the Deathly Hallows Part, Inception and Sex and the City 2. The distributor distributed three of the top ten box-office hits of the year and four among the top twenty. Concorde, the leading local distributor, had the best year in its history, with 8% market share, notably due to the success of Eclipse and Shutter Island. Avatar was the number one German box-office hit for films in 200 with 7.9 million admissions, ahead of Harry and the Deathly Hallows Part, which had 5.2 million admissions. Released in December 2009, Avatar generated.3 million admissions total. Five of the top ten films of 200 were 3D films. They were all American and together accounted for 4.5 million admissions, that is.4% of total admissions. The number one German film, Friendship!, was in 4th place with.6 million admissions. A second German film, Animals United (.4 million admissions) was among the top twenty films of the year. In 200, German films lost close to half of their admissions. Affected by the decline in number of German films released (9, compared to 44 in 2009) as well as their lack of success, national film share lost more than ten points. The number of German films shown over the course of the year was,008, of which 9 were new films. They accounted for 20.9 million admissions in 200 (-47.7% compared to 2009) for a market share of 6.8% in terms of admissions. In 200, four German films had over one million admissions. Together, they accounted for 5.2 million admissions, or 4.% of total admissions. In addition, ten national films had between 500,000 and one million admissions in 200, compared to nine in 2009. national films released screens admissions (millions) attendance index box-office receipts ( million) national film share (%) US film share (%) French film share (%) European film share (%) 2 B 200 2002 2003 2004 2005 2006 2007 2008 2009 200 83 84 80 87 03 22 29 25 44 9........................................................ 4 792 4 868 4 868 4 870 4 889 4 848 4 832 4 80 4 734 4 699........................................................ 77.9 63.9 49.0 56.7 27.3 36.7 25.4 29.4 46.3 26.6........................................................ 2.2 2.0.8.9.5.7.5.6.8.6.......................................................... 987.2.................... 960.................... 850.0.................... 892.9.................... 745.0.................... 84.4..................... 757.9................... 794.7.................... 976..................... 920.4.......... 5.7 9.5 6.7 20.8 3.9 2.5 5. 2.0 27.4 6.8........................................................ 77.0 83.0 76.8 72. 77.2 72.0 73.2 66.7 72.5 n.a..........................................................6 2.6 0.9 2.2 2.9.0 3.9 3.5 2.5 n.a..........................................................9 3.3 8. 3.6 22.2 3.8 9.5 5.8 2.4 n.a......................................................... Cinema in Germany In terms of admissions. 2 In terms of admissions, not including national films, according to the EAO s Lumière database. Includes films produced in Europe, mainly in the UK, with American investments. Source: The CNC, according to Filmförderungsanstalt, Spitzenorganisation der Filmwirtschaft. results 200 / CNC Dossiers / nº 38 May 20 3

3 World Cinema C Spain 20 feature films were produced in Spain in 200, compared to 86 in 2009. This is the best result ever recorded. 52 films were entirely Spanish, compared to 35 in 2009. In 200, 49 international co-productions were produced, of which 3 were majority, 5 were minority and 3 were equal. After a slight increase in 2009, cinema attendance declined once again in 200 to 0.6 million, 7.6% less than in 2009. After a first quarter on the rise (+7.2%), a negative trend began during the second quarter. May and June had the worst results, with the latter being penalized because of interest in the FIFA World Cup (won by Spain). This trend reversed itself during the summertime (+3.7% in August), but the public s disaffection was particularly worrying at the end of the year (-28% for the last quarter). With the decline in admissions, the attendance index fell to 2.2 admissions per capita in 200. market share for British films more than doubled, going from 6% in 2009 to 2.6% in 200. In 200, the number of screens and screen concentration became stable. There were 4,080 screens at the end of 200 at 860 venues.,555 films were shown, of which 367 were Spanish. Madrid had 570 screens, generating 2.3 million admissions and revenues of 49.6 million. According to Screendaily (a British source), there were 820 digital screens in Spain in 200, of which 620 were equipped to show 3D films. 20th Century Fox continued to be the leading distributor in 200, notably due to the success of Avatar (box-office leader) and The Chronicles of Narnia The Voyage of the Dawn Treader. The distributor s revenues came to 2 million, or 7% of market share. It had two films among the top twenty of the year. Mainly due to the success of Eclipse, the number one independent distributor, Aurum Producciones, was in seventh place among distributors with a market share of 7.3%. The top three box-office hits of 200 were 3D films. Avatar dominated the box office in 200 with record results (6 million admissions and revenues of 50.4 million). The only national film in the top twenty films of the year, Tres Metros sobre el cielo, was in 8th place (.3 million admissions and 8.5 million). Three Spanish films had over one million admissions in 200, compared to five in 2009. Though boosted by the success of 3D films, revenues also decreased in 200, following practically the same curve as admissions. While the increase in revenues remained the same until the end of September (+9.6%), the last quarter showed a decrease of almost 26%. The year ended with total revenues of 662.3 million,.3% less than in 2009 ( 67 million). Average ticket prices increased by 6.6% to 6.50 in 200. The year 200 was not favorable to national films. Lacking major national successes, Spanish films had a market share of 2.7% (5.9% in 2009), which is the lowest level of the last decade. Market share for American films stayed at an excellent level. It lost.5 points compared to the previous year, with 69.2% in admissions. Excluding Spanish films, European films had a market share of 7.4% in 200 (2.5% in 2009). Carried by the good performances of Inception, Harry Potter and the Deathly Hallows Part, Clash of the Titans and Robin Hood (all among the top ten box-office hits), feature-length films produced screens admissions (millions) attendance index box-office receipts ( million) national film share (%) US film share (%) French film share (%) European film share (%) 2 C 200 2002 2003 2004 2005 2006 2007 2008 2009 200 06 37 0 33 42 50 72 73 86 20........................................................ 3 770 4 039 4 253 4 390 4 383 4 299 4 296 4 40 4 082 4 080.......................................................... 46.8.................... 40.7.................... 37.5................... 43.9..................... 27.6.................... 2.6.................... 6.9.................... 07.8................... 0.0.................... 0.6.......... 3.7 3.4 3.3 3.5 2.9 2.8 2.6 2.4 2.4 2.2.......................................................... 66.4.................... 625.9................... 639.4..................... 69.6................... 635.0.................... 636.2.................... 643.7.................... 69.3.................... 67.0.................... 662.3.......... 7.9 3.7 5.8 3.4 6.7 5.4 3.5 3.3 5.9 2.7........................................................ 62.2 66. 67.3 69.8 60.3 7.2 67.6 7.5 70.8 69.2........................................................ 3.6 3.7 2.6.5 3.9 2.2.8 2. 2.3 3.0........................................................ 0.8 0.2 9.3 9.8 20.2 2.2 5.0 0.9 2.2 n.a......................................................... Cinema in Spain Provisional data. 2 In terms of admissions, not including national films, according to the EAO s Lumière database. Includes films produced in Europe, mainly in the UK, with American investments. Source: The CNC, according to the Instituto de la Cinematografía y de las Artes Audiovisuales. 32 results 200 / CNC Dossiers / nº 38 May 20

D Finland According to the Finnish Film Foundation, cinema attendance increased by 8% in 200 with 7.3 million admissions. Admissions generated by national films reached the highest level since statistical data started being taken for cinema in 969. The 23 Finnish films, including nine documentaries, released during the year accounted for 2.05 billion admissions, a market share of 27%. The 200 performance shattered the previous record set in 978 (.790 billion admissions). The top two box-office hits of 200 were Finnish: Lapland Odyssey (335,000 admissions) and Ricky Rapper and the Bicycle Thief (328,000 admissions). They were ahead of the Hollywood blockbusters Sex and the City 2, Inception, and Harry Potter and the Deathly Hallows Part. Italy According to the data provided by ANICA and Cinetel, the film industry in Italy grew and increased in 200 both in terms of the number of films produced as well as in terms of investments. 4 films were produced in 200, compared to 3 in 2009. The number of 00% Italian films rose to 4 in 200 (97 in 2009) and co-productions dropped to 27 films (34 in 2009). The number of majority co-productions fell (4, compared to 7 in 2009), and so did minority co-productions (3, compared to7). Total investments increased by 5.5% to 32.2 million in 200, and the average budget for 00% Italian films fell % ( 2.23 million). After a considerable reduction in 2009, the State s financial withdrawal in production continued (-6.8% in 200). State funds contributed in the production of 40 films in 200, for a total budget of 35. million. In 2009, the State financed 38 films for a budget of 38 million. State contributions represented.3% of all capital investments (2.8% in 2009). Private investments increased by 7.3%, which contributed upwards of 88.7% of funding for Italian production. According to Cinetel, 273 Italian films were shown in theaters in 200, of which 3 were new, co-productions included. 328 American films were shown, of which 6 were new. A total of 833 films were shown in Italian cinemas in 200, of which 380 were new. According to ANICA s initial estimates, based on the Cinetel sample (90% of the number of screens), admissions increased greatly in 200 (+%). According to estimates by the European Audiovisual Observatory, there were 23.4 million admissions total in 200 (.2 million in 2009). This was the best result since 986. Total revenues, based on the Cinetel sample, increased 7.9% in 200 to around 797 million. Supported by the rise in admissions, the record increase in revenues was also attributable to showing 3D films, the price for which is systematically increased. After a decline in 2009, the market share for national cinema grew in 200 to 32%, or 35. million admissions (24. million in 2009). In terms of revenue, the market share gained almost 6 points to 29.3% ( 25 million). feature-length films produced screens admissions (millions) attendance index box-office receipts ( million) national film share (%) US film share (%) French film share (%) European film share (%) 2 D This growth did not help American films. Even though admissions increased by 2.3% in 200, they lost almost 5 points for a market share of 57%. Market share in terms of revenue was 60.2% in 200, compared to 63.5% in 2009. Market share for European films also fell. It accounted for (excluding national films) 9.7% of total revenue in 200 (.5% in 2009). Medusa film, an Italian company, continued to be the leading distributor in 200, notably due to the success of Welcome to the South (remake of Welcome to the Sticks). The distributor earned 22.3 million, or a market share of 6.7%. It had one film among the year s top ten and three among the top twenty. Due to the success of Harry Potter and the Deathly Hallows Part, Me, Them and Lara, Sherlock Holmes and Inception, Warner Bros was in second place, with a market share of 3.8%. These four films were in the top twenty. 200 2002 2003 2004 2005 2006 2007 2008 2009 200 03 30 7 34 98 6 2 54 3 4.......................................................... 2... 662................. 2... 839................. 3... 038................. 3... 7................. 3... 280................. 3... 062................ 3.... 092................. 3... 4................ 3.... 276................. 3... 27...... 3.3 5.6 0.5 6.3 05.6 06. 6.4.6.2 23.4.........................................................9.9.9 2.0.9.8.9.9.9 2.0......................................................... 600.7.................... 654.0..................... 64.8................... 660.5.................... 602.0.................... 606.7.................... 669.9.................... 645.0.................... 676..................... 797.2.......... 9.4 22.2 2.8 20.3 24.7 24.8 3.7 28.9 23.4 29.3........................................................ 59.7 60.2 64.5 6.9 53.8 6.9 55.4 60.2 63.5 60.2........................................................ 3.8 6. 4.4 2.5 4. 3. 2. 4.3. n.a......................................................... 9.3 6.3 2.3 0.7 2.2 4.2 4.8 8.9 2.5 n.a......................................................... Cinema in Italy Provisional data. 2 In terms of admissions, not including national films, according to the EAO s Lumière database. Includes films produced in Europe, mainly in the UK, with American investments. Source: The CNC, according to ANICA, Cinetel, Osservatorio Italiano dell Audiovisivo, Giornale dello Spettacolo. results 200 / CNC Dossiers / nº 38 May 20 33

3 World Cinema Avatar was the number one Italian box-office hit in 200, with record revenues of 65.7 million. Four 3D films were among the top ten of the year. The number one national film, Welcome to the South, was in third place ( 29.7 million). Four Italian films were among the top ten of the year, and eight were among the top twenty. Netherlands According to the figures from the Association of film distributors, exhibitors, and producers, admissions grew 3% in the Netherlands in 200. With more than 28 million admissions, this is the best result in thirty years. Box-office receipts rose 9% to 207.3 million. This growth is mainly due to the increase in ticket prices for 3D films. American films dominated the Dutch market with 39 films released in 200 and a market share of 75.9% (53 films and a market share of 69.8% in 2009). The 52 national films released in 200 generated a market share of 4.8%, a decline compared to 2009 when 37 films generated 6.4% of total revenues. Avatar led the box office in 200 with a revenue of 3.6 million. Since its release in 2009, the film generated a total revenue of 8.5 million. The number one national film, New Kids Turbo! (based on a TV series), was in fifth place ( 6.8 million). Two Dutch films were among the top ten films of the year. Poland According to initial data available, movie theater admissions in Poland fell 4.% in 200 to 37.5 million (39. million in 2009). This was the second best result in the last twenty years. According to the European Audiovisual Observatory, total revenues increased 3.2% in 200 to 703 million Zlotys ( 77 million). Market share for national films dropped to 2.9% (2.5% in 2009). Avatar was the number one box-office hit in 200 with 3 million admissions. Portugal According to the figures provided by the Instituto do Cinema e do Audiovisual (ICA), cinema attendance in Portugal increased by 5.4% in 200 to 6.6 million admissions (5.7 million in 2009). Total revenues increased by.3% to 82.2 million ( 73.8 million in 2009). National films accounted for 36,020 admissions with revenues of.34 million, a decrease of 25.3% and 27.6% respectively. Already pretty marginal, market share fell representing.6% of admissions (.7% in 2009) and.9% of revenues (.9% in 2009). American films, with 2.3 million admissions and revenues of 60.76 million, accounted for 73.3% of admissions and 73.9% of revenues. European films (including Portugal) represented 7.4% of total admissions. Lusomundo Audiovisuais was the number one distributor, with 205 films shown, of which 98 were new, with 8.3 million admissions and a market share of 5.8% in terms of revenue. Avatar was the top box-office hit in 200 with 78,900 admissions and a revenue of 4.5 million. The number one Portuguese film Beauty and the Paparazzo generated 98,800 admissions and revenues of 435,000. Five 3D films were among the top ten films of the year. E Czech Republic According to the data provided by the Union of film distributors, movie theater admissions in the Czech Republic increased 8% in 200 to 3.5 million admissions (2.5 million in 2009). Total revenues increased 5.4% to.5 billion Czech Korunas ( 62 million). The success of 3D films as well as the good performance of national films contributed to these good results. Five Czech films were among the top ten of the year. The Czech film Women in Temptation dominated the box office in 200 with.2 million admissions, ahead of Avatar (954,000 admissions). In terms of revenue, Avatar was in first place (4.2 million Czech Korunas) because of the ticket price increase for 3D films. United Kingdom According to data provided by the UK Film Council, the cinema sector in the UK posted contrasting results in 200. Total production volume fell markedly, and total investments increased almost 8% compared to 2009, which was a total record. The most significant increase involved foreign investments, which reached the highest level ever. However, financing for 00% British films fell more than 22%, while funding for co-productions increased 45%. The United Kingdom produced 9 films in 200 for a total investment of.55 billion (.346 billion). In 2009, 44 films were produced for a total investment of.07 billion (.248 billion). In 200, foreign capital accounted for 80.4% of total investments (75.7% in 2009). The 9 films produced in the United Kingdom included 72 00% British films, 28 foreign films produced mainly on British territory, and 9 co-productions. 34 results 200 / CNC Dossiers / nº 38 May 20

According to initial estimates, cinema admissions in the United Kingdom fell by 2.4% in 200. This is still a high level because it is the second best result since 97. Films released in December 2009, such as Avatar, Sherlock Holmes and Alvin and the Chipmunks: The Squeakquel continued their career at the beginning of 200. March had the best performance of the semester (+2.8%), notably due to the release in 3D of Alice in Wonderland, Shutter Island and Millennium. The trend reversed itself in May (-9%) despite the success of Iron Man 2 and Streetdance 3D. The combination of the FIFA World Cup, summer weather and no profitable films affected the month of June (-30.4%). The good performances of Toy Story 3, Inception, Shrek Forever After and Eclipse boosted summer results (+.9%). August did particularly well (+30.3%). In spite of the release of Harry Potter and the Deathly Hallows Part, Despicable Me and the third installment of The Chronicles of Narnia: The Voyage of the Dawn Treader, admissions in the last quarter dropped 3.6%. The year 200 ended with 69.2 million admissions, compared to 73.5 million in 2009. Notably due to the success of Harry Potter and the Deathly Hallows Part, Inception, and Sex and the City 2, Warner Bros was the number one distributor in 200, with earnings of 20.8 million ( 23 million) and a market share of 8.5%. The number one independent distributor, eone Films (Eclipse), was in seventh place with earnings of 60. million and a market share of 5.5%. Toy Story 3 was the number one film of 200 with earnings of over 74 million ( 85 million), and was the second highest-grossing film of all time in the British ranking, behind Avatar. Seven British films that had some American financing were among the top twenty films of the year (two in 2009). One 00% British film, Streetdance 3D, was in 7th place (.6 million). 28 3D films were released on British screens in 200. They generated 237.4 million in revenue, and a market share of 24% (6% in 2009). Five of the top ten films of the year were released in 3D. Toy Story 3 was also the number one 3D film, with earnings of 53.3 million, representing 72% of total revenues. The number one British 3D film, Streetdance 3D, generated million on 3D screens (95% of total box-office receipts). Four of the top ten 3D films were animations. Revived by the increase in ticket prices and the growing success of 3D films, earnings grew by 4.7%, reaching 988.3 million (.29 billion). The top twenty films of 200 brought in almost 45% of total revenue. Together, they accounted for 483.02 million. Two films earned over 50 million (one in 2009), three films earned over 40 million (two in 2009) and nine films earned over 20 million (twelve in 2009). Market share for British films rose in 200. According to initial estimates, it was 22.6% (6.7% in 2009). This figure includes British productions financed by American capital (considered American by other countries, including France), 00% British films, and co-productions. feature-length films produced screens admissions (millions) attendance index box-office receipts ( million) national film share (%) 2 US film share (%) European film share (%) E 200 2002 2003 2004 2005 2006 2007 2008 2009 200 83 9 96 74 64 34 27 26 44 9........................................................ 3 64 3 258 3 36 3 342 3 357 3 440 3 54 3 60 3 65 3 74.......................................................... 55.9.................... 75.9.................... 67.3.................... 7.3................... 64.7.................... 56.6.................... 62.4.................... 64.2.................... 73.5.................... 69.2.......... 2.6 2.9 2.8 2.8 2.7 2.6 2.7 2.7 2.8 2.8......................................................... 645.0.................... 755.0..................... 742.0................... 770.0.................... 770.0.................... 762.0.................... 82.0.................... 849.5.................... 943.8.................... 988.3.......... 25.0 22.6 5.9 23.4 33. 9. 28.6 30.7 6.7 22.6........................................................ 73.9 7.3 73.5 73.2 63. 77. 67.7 65.2 8.0 n.a......................................................... 4.2.2 2. 0.6.6.2.8 2.3.2 n.a......................................................... Cinema in the United Kingdom These figures include films funded and shot entirely by US companies in the UK. Starting in 2002, Source: UK Film Council; previous years, Source: British Film Institute. 2 Includes films produced with American investments results 200 / CNC Dossiers / nº 38 May 20 35

3 World Cinema F AROUND THE WorLD Australia According to the figures provided by Screen Australia, cinema production in Australia was stable in 200 and investments increased slightly. Investments in 00% Australian films decreased by more than a third, whereas investments for co-productions more than doubled. The volume of investments in foreign films increased considerably. Co-productions and foreign films included, there were 47 feature-length films shot in Australia in 200 with a budget of AU$443 million ( 39 million). In 2009, 47 were produced and accounted for a combined budget of AU$387 million ( 279 million). Of the 47 films in 200, 32 feature-length films were 00% Australian, with a combined budget of AU$243 million ( 75 million), five were co-productions with a combined cost of AU$53 million ( 45 million) and five were foreign films with a combined budget of AU$69 million ( 22 million). The production of two high-budget American films, The Chronicles of Narnia: The Voyage of the Dawn Treader and Don t Be Afraid of the Dark, led to a major increase in foreign investments. In addition, 5 foreign films had post-production, digital production, and special effects work done in Australia for a total value of AU$9 million ( 6 million). Financial participation by the State covered 7% of total Australian production costs, benefitting 25 films. This is an increase compared to the 9% of 2009. Private investors financed 0% of production (% in 2009) and foreign investors funded 23% (52% in 2009). The cinema and television players provided the largest proportion of funding (50%, compared to 38% in 2009). Initial estimates by the Motion Picture Distributors Association of Australia indicate a rise in admissions for the second year in a row and a new record for earnings was set in 200. The,994 active screens had 92 million admissions, compared to 90.7 million in 2009 (+.4%). The attendance index rose to 4.2 yearly admissions per capita. Supported by the performance of particularly appealing films and by the growing interest in 3D films, earnings grew by 4.2% to AU$.32 billion ( 86 million). Average ticket prices increased by 2.3% to AU$2.26 ( 8.80). In five years, it has increased by more than 23%. Australian films earned AU$50.6 million ( 36 million), or a market share of 4.5% (AU$54.8 million and 5% in 2009). Even though this is a slight drop, this result is an average result in the last decade. American films earned AU$942.5 million ( 678 million), or a market share of 83.2% (82.8% in 2009). British films lost almost two market share points, going from 9% in 2009 to 7.3% in 200. 200 2002 2003 2004 2005 2006 2007 2008 2009 200 F feature-length screens admissions attendance box-office national films produced (millions) index receipts film share (AU$ million) (%) 30 855 92,5 5, 82,4 7,8...................... 33 872 92,5 4,7 844,8 4,9...................... 23 907 89,8 4,5 865,8 3,5...................... 29 909 9,5 4,6 907,2,3...................... 38 943 82,2 4,0 87,5 2,8...................... 36 964 83,6 4,0 866,6 4,6...................... 36 94 84,7 4,0 895,4 4,0...................... 45 980 84,6 4,0 945,4 3,8...................... 47 984 90,7 4, 087,5 5,0...................... 47 994 92,0 4,2 32,9 4,5...................... Cinema in Australia Including foreign films shot in Australia. Source: The CNC, according to Screen Australia, Motion Picture Distributors Association of Australia. Roadshow/Warner Bros maintained its place once again as the number one distributor. With earnings of AU$ 267.5 million ( 93 million), the distributor s market share was 24% in 200, partially due to the success of Sex and the City 2 and the Australian films Bran Nue Dae and Legend of the Guardians: The Owls of Ga Hoole. Avatar was the number one film in 200, with earnings of nearly AU$75 million ( 54 million). Released in December 2009, the film earned a total of AU$4 million ( 82 million) and became the highest-grossing film of all time at the Australian box office. One Australian film was among the top twenty films of 200: Tomorrow When the War Began was in 8th place with earnings of AU$ 3.5 million ( 0 million). The top ten box-office films of the year accounted for 32.% of total earnings in 200. Production statistics are taken from June to June. For 200, read June 2009/ June 200; for 2009, read June 2008/June 2009. 36 results 200 / CNC Dossiers / nº 38 May 20

Brazil According to the figures provided by Filme B, cinema attendance and box-office receipts in Brazil posted record results in 200. There were 34.8 million admissions, an increase of 20%, and earnings of.26 million Reals ( 576 million, +30%). This increase was revitalized by the expansion of 3D screens, which went from 97 in 2009 to 262 in 200. Brazilian films accounted for 25.5 million admissions, or a rise of 60% compared to 2009. This is the best result since the renaissance of Brazilian cinema at the beginning of the 990s. Earnings for national films rose by 7% to 225 million Reals ( 03 million). Market share for national films was about 8% in terms of revenue. Elite Squad 2 led the box office in 200, with a record of million admissions and earnings of 02.5 million Reals, ahead of Avatar (72.8 million Reals). Two other Brazilian films were among the top ten films of the year. China According to the State Administration for Radio Film and Television (SARFT), box-office receipts in China grew by 6% in 200. Boosted by the success, among others, of Avatar and the Chinese film, Aftershock, they amounted to 0 billion Yuan (.2 billion), compared to 6.2 billion Yuan in 2009. Foreign films, and particularly 3D films, played an important role in this performance. In 200, the Chinese quota system authorized the importation of 24 foreign films, which together amounted to 2.8 billion Yuan in revenue ( 325 million). Avatar accounted for half of it. 500 Chinese films were produced in 200 (456 in 2009). By volume, China was the third top producer of films worldwide, after Bollywood and Hollywood. China had 5,690 screens in,800 venues. On average, three new screens opened their doors each day. The biggest national success of the year, Aftershock, generated 662 million Yuan in revenue ( 7 million). Colombia According to the local research company, Cadbox, cinema attendance in Colombia increased 24% in 200, reaching almost 34 million admissions. Box-office receipts rose 30% to $36.5 million ( 97 million), compared to $04.8 million in 2009. The 9 3D films released during the year accounted for 35.6% of total admissions. The country had 577 screens, of which 32 were 3D. Cine Colombia, the leading independent exhibitor/distributor had 80. With no profitable films, market share for national films remained at a modest 4.5%. The three top box-office hits were in 3D. Toy Story 3 led the box office in 200 with earnings of $0.3 million ( 7.3 million). South Korea According to the initial figures provided by the Korean Film Council (KOFIC), film production activity continued to increase in 200. 52 films were produced (38 in 2009) with total investments of 328.3 billion Won ( 208 million), a 3% rise compared to 2009. The average cost of a Korean film fell 6.5% to 2.2 billion Won (.4 million) in 200, of which.42 billion Won were for production costs (-9%) and 740 billion Won were devoted to distribution/print release and advertising costs (-.3%). Expenses related to distribution/print release and advertising represented 34.3% of the total film budget, a slight increase compared to 2009 (32.5%). A sign of the market s maturity, the expansion of the number of screens slowed down in 200. 2,003 screens with 349,640 seats were active at the end of the year, spread over 30 cinemas (2,055 screens for 305 cinemas in 2009). There were,639 digital screens in 200, of which 506 were equipped for 3D projection. 482 films were shown in total, of which 426 were new. There were 68 Korean films, 55 American films and 70 European films; of these films, 40, 35 and 64 were new films respectively. After the increase recorded in 2009, cinema attendance in South Korea fell in 200. According to initial estimates by the KOFIC, admissions declined 6.5% to 46.8 million in 200 (57 million in 2009). This is the lowest result of the last five years. Over 3% of all admissions were in the capital, Seoul. Supported by a significant rise in ticket prices related to the growing success of 3D films, box-office receipts rose 5.% to.50 billion Won ( 728 million) in 200. As a consequence of the decline in admissions, with a population of 50.5 million, the attendance index fell to 2.9 yearly admissions per capita. The average ticket price rose by 2.4% to 7,874 Won (almost 5). 26 3D films were released on Korean screens in 200 (7 in 2009). They accounted for 6.8 million admissions (.4% of total admissions) and earnings of 89.9 billion Won, (6.5% of total earnings), compared to.2% and 2.2% respectively in 2009. For the second time this decade, national films lost their majority market share in South Korea in 200. Even though their market share was below 50%, it was still a high level. With 68.3 million admissions (-9.7% compared to 2009), Korean films had a market share of 46.5% (48.8% in 2009). In Seoul, market share for Korean films also fell to 43.9% (46% in 2009). This decline was to the benefit of foreign films, particularly American films, whose market share grew by more than three points to 47.3% in 200. Japanese films accounted for 2.% admissions, and Chinese films accounted for.4%. European films accounted for 2.5% of admissions. Notably due to the success of The Man from Nowhere, Iron Man 2 and Dragons, local distributor CJ Entertainment was the number one distributor in 200, with a market share of 28%. It had eight films in the top twenty films of the year. The number one American distributor, 20th Century Fox, was in second place with a market share of % (Avatar and Knight and Day). results 200 / CNC Dossiers / nº 38 May 20 37

3 World Cinema G Avatar was the number one box-office hit in 200 with 8.3 million admissions and revenues of 83.3 billion Won ( 53 million). Released in December 2009, the film had 3.4 million total admissions and became the highestranking film of all time at the South Korean box office, ahead of The Host (3.02 million admissions in 2006). Five of the top ten box-office hits for foreign films in 200 were 3D. The number one Korean film, The Man from Nowhere, was in second place with 6.2 million admissions and earnings of 47. billion Won ( 30 million). Seven Korean films were among the top ten films of the year and ten were in the top twenty. United States According to the figures released by the Motion Picture Association of America, after one year on the rise, North American cinema admissions (United States/Canada) fell by 5.6% in 200 to.34 billion (.42 billion in 2009). This level matches the level of 2008. The attendance index dropped to 4. admissions per year per capita on average in 200. Cinema box-office receipts were stable in 200, and in spite of a new increase in ticket prices boosted by 3D films, they amounted to $0.6 billion ($7.6 billion), like in 2009. The average ticket price grew by 5.2% to $7.89 ( 5.6). Box-office receipts for 3D films practically doubled in 200. 25 films (20 films in 2009) generated revenues of $2.2 billion ($. billion in 2009), or 2% of total revenues (% in 2009). In 200, the exhibition industry set itself apart with the rapid growth of digital cinema. The number of cinemas increased slightly (+0.8%). There were 39,547 screens in the United States (39,233 screens in 2009), of which 79% were in multiplexes of 5 or more screens. The average number of admissions per screen fell, going from 36,90 in 2009 to 33,880 in 200. The number of digital screens more than doubled in 200 and represented 40% of screens in the country. There were more than 4,500 new 3D screens in 200. The 7,837 3D screens represented almost half of the total number of digital screens in the United States. In 200, the number of films produced in the United States declined for the fourth year in a row (-7.2%). There were 644 films produced, compared to 694 in 2009. The decrease in activity in this industry was particularly felt among non-member companies of the MPAA that produce films for which production costs were higher than $ million. The total number of films distributed increased slightly in 200. There were 560 films shown in American cinemas (555 in 2009), of which 25 films were in 3D (20 in 2009). The major film studios distributed 4 new films (58 in 2009), or 25% of the total. Independent distributors distributed 75% of new films and 22 fewer films than in 2009. 200 2002 2003 2004 2005 2 2006 2007 2008 2009 200 G feature-length screens admissions attendance box-office european films produced (millions) index receipts film share ($ million) (%) 6 36 764 437 4.8 8 25 5.7...................... 543 35 280 570 5.2 9 00 4.5...................... 593 36 46 520 4.9 9 65 3.3...................... 6 36 594 484 4.8 9 25 6.7...................... 920 38 852 378 4.4 8 832 9....................... 928 38 45 395 4.4 9 200 6.2...................... 909 38 974 400 4.4 9 629 8.8...................... 704 38 834 340 4.2 9 600 8.8...................... 694 39 233 45 4.3 0 600 5.3...................... 644 39 547 340 4. 0 600 n.d....................... Cinema in the United States Five distribution companies were billionaires in dollar terms in 200, like in 2009. Warner Bros was at the top of the rankings in the domestic market for the third year in a row, with earnings of $.92 billion (.4 billion) and a market share of 8.2%, notably due to the success of Inception and Harry Potter and the Deathly Hallows Part. The distributor had three films among the top twenty of the year. Note: Yearly data partially updated by the MPAA. These figures include films that were never released in theaters. 2 Starting in 2005, data updated by the MPAA. Contrary to preceding years, figures include all films undertaken, during the year considered, by an American company, including co-productions. Documentaries are not included. 3 European film share, in terms of admissions, according to the EAO s Lumière database. Source: The CNC, according to the Motion Picture Association of America. 38 results 200 / CNC Dossiers / nº 38 May 20

The American market is still not sufficient to make films produced by the major film studios profitable. On average, the market only covers a third of the production costs of these films, the rest being provided by the international market, video, and related markets. Because of the low exchange rate of the dollar on certain money markets and a significant number of sequels and franchise films released in the same year, world box-office receipts for American films set a new record in 200. They grew by 8.2% to $3.8 billion ( 22.8 billion). Internationally, revenues for the major film studios alone reached $2.2 billion ( 5.2 billion) in 200 (+2.8%). They represented 67% of earnings worldwide, a proportion that is increasing. Warner Bros topped the distributors ranking internationally, with revenues of $2.93 billion ( 2. billion) and a market share of 3.8%, notably due to the international performances of Harry Potter and the Deathly Hallows Part, Inception and Clash of the Titans. Hong Kong According to the Motion Picture Industry Association (MPIA), box-office receipts in Hong Kong increased by % in 200 to HK$.30 billion ( 52 million) compared to HK$.7 billion in 2009. This result is attributed to the success of American 3D films and the performance of some local films. In 200, 286 films were released on Hong Kong screens, of which 54 were national films and 232 were foreign films. Toy Story 3 led the box office, with earnings of $.6 million. The number one national film was Ip Man 2 and had revenues of $5.59 million. Another Hong Kong film was among the top ten of the year. Four of the top ten box-office hits of 200 were 3D. India According to a KPMG report presented at the last Federation of Indian Chambers of Commerce and Industry (FICCI) conference, the film industry earned revenues of 83 billion Rupees (.3 billion) in 200, 6.7% less than in 2009. The industry suffered from a decline in production volume related to financing problems. According to the report, the Indian film industry should earn total revenues of 83 32 billion Rupees between now and 205, due to the growth in multiplexes, research investments and production cost control. Avatar (released December 8, 2009) was in first place at the American box office in 200, with revenues of nearly $477 million ( 339 million). This very good result is the second highest of all time after the record set by The Dark Knight in 2009 ($53 million). Since its release in 2009, the film earned a total of $76 million. In 200, the top three box-office hits were in 3D. Six 3D films were in the top ten of the year and eleven were part of the top twenty. The number of films earning more than $00 million fell in 200 (26 films, compared to 32 films in 2009). The top ten films earned over $200 million (eight in 2009), of which five earned over $300 million. A franchise film is a film whose characters or world existed in another medium (i.e., literature, comic book, television series, games, etc.). results 200 / CNC Dossiers / nº 38 May 20 39

3 World Cinema H Japan According to the figures provided by the Motion Picture Producers Association of Japan, the increase in the number of screens, which began in 993, continued, but more slowly. Of all the major feature film markets, Japan nevertheless remains the least well-equipped. There were 3,42 screens 200 (+0.5%). 8% of screens were located in multiplexes. According to Screendigest, 763 screens were equipped for 3D projection (37 in 2009). Since 2006, the number of films distributed in Japan has declined. Theaters showed 76 new films in films 200 (762 in 2009), of which 408 films were Japanese. For the fifth year in a row since 986, the number of national films released was higher than that of foreign films. Even though cinema exhibitors felt that the growing number of national films on screen was saturating the market, the average number of admissions per screen increased in 200 (5,00 admissions, compared to 49,850 in 2009). To fight the image that going to the cinema is expensive, movie theater operators increased the use of discount pricing, which, between 2004 and 2008, has led to a real decline in movie ticket prices. In 200, the release of several 3D films caused a 4% increase in average ticket prices to,266 Yen (about.20). Toho, the leading exhibitor in the country, just announced that it is planning to lower the standard movie ticket price from,800 Yen to,500 Yen for the purpose of reviving attendance. Admissions grew by 3% in 200 to 74.4 million. This is the best result since 974. As a result of this change, the attendance index rose slightly to.37 admissions per year per capita (.33 in 2009). Box-office receipts, bolstered by 3D films, increased 7.% to 220.7 billion Yen in 200 (.959 billion). Since 2005, the highest performing films have brought in a lower volume of earnings than that of previous years. 48 films earned over one billion Yen in 200, of which 29 films were Japanese and 9 films were foreign, American for the most part. Japanese films generated 8.2 billion Yen ( billion) in 200. After the remarkable increase recorded in 2008, their market share fell slightly but was still at a high level for the second year in a row (53.6%). This is the third highest result in thirty years. Foreign films generated 02.5 billion Yen ( 893 million) in 200, or 46.4% of the market (43.% in 2009) with American films in the lead. 200 2002 2003 2004 2005 2006 2007 2008 2009 200 H feature-length screens admissions attendance box-office national films produced (millions) index receipts film share ( billion) (%) 28 2 585 63.3.3 200.2 39.0...................... 293 2 635 60.8.3 96.8 27.0...................... 287 2 68 62.3.3 203.3 33.0...................... 30 2 825 70..3 20.9 37.5...................... 356 2 926 60.5.3 98.2 4.3...................... 47 3 062 64.3.3 202.9 53.2...................... 407 3 22 63.2.3 98.4 47.7...................... 48 3 359 60.5.3 94.8 59.5...................... 448 3 396 69.3.3 206.0 56.9...................... 408 3 42 74.4.4 220.7 53.6...................... Cinema in Japan Note: American films earned about 95% of box-office receipts made by all foreign films. Source: The CNC, according to Motion Picture Producers Association of Japan EIREN. Once again, Toho topped the distributors ranking. Due to record earnings of 78.4 billion Yen ( 682 million) in 200, an increase of 4.3% compared to 2009, the distributor had a market share of 35.5%. It had four Japanese films among the top ten and twelve among the top twenty. The top three box-office hits of 200 were American 3D films, exceeding revenues of 0 billion Yen. Avatar was the number one film, with earnings of 5.6 billion Yen ( 36 million). The number one Japanese film, Arrietty, was in fourth place (9.25 billion Yen). Five Japanese films were among the top ten films of the year and 3 were among the top twenty. One French film, Oceans, was in 9th place (2.5 billion Yen). 40 results 200 / CNC Dossiers / nº 38 May 20

Mexico According to the National Film Chamber (Canacine) and the Mexican Film Institute (Imcine), in spite of the economic crisis and that negative business with the swine flu, movie-theater admissions in Mexico posted record results in 200. These figures ended December 2st and increased 6.2%. Attendance in 200 was estimated at 9 million admissions. Mexico had 5,032 screens. 68 films were produced in Mexico in 200. 89% of public funding for film is devoted to production and % to distribution. 54 Mexican films released during the year accounted for 2. million admissions and revenues of 700 million Pesos ( 43 million), or a market share of 5.6%. American films dominated the market. Of the 30 films shown in 200, Toy Story 3 was the number one film with earnings of 777.2 million Pesos ( 48 million). No Mexican film was in the top ten films of the year. The number one Mexican film, No eres tu, soy yo, earned 26 million Pesos ( 7.5 million). Norway According to the provisional statistics from the Norwegian Film Institute, Norwegian movie theater admissions declined 3.4% in 200 to million. This result is largely attributed to the lack of success of profitable American films. Sequels no longer attracted people to the cinemas. Even the latest opus of the Harry Potter adventures was disappointing. In 200, and for the third year in a row, Norwegian films (25 of them) accounted for more than 2.5 million admissions, and a market share of 23.2%, an increase compared to 2009 (20.6%). There were only two films with more than 400,000 admissions: Avatar (530,000 admissions) and the Norwegian film, Twigson Ties the Knot, (402,000 admissions). Two other Norwegian films were in the top ten films of the year. New Zealand According to data provided by the Motion Picture Distributors Association (MPDA), box-office receipts in New Zealand set a new record in 200. They grew 3.8% to NZ$76.5 million ( 97 million). 3D films represented 7.5% of total earnings. In 200, 299 were shown on the 4 screens in the country. Boy, a film from New Zealand, was the number one box-office hit of 200, with revenues of NZ$9.3 million ( 5. million). However, Avatar (released in 2009) was the highest grossing-film of 200 with NZ$2.3 million (NZ$7.3 million in total revenue since its release in December 2009). The success of 3D films such as Alice In Wonderland, The Chronicles of Narnia: The Voyage of the Dawn Treader, Shrek Forever After and Dragons confirms the public s demand for this new type of entertainment. The top ten box-office hits of 200 earned a total of NZ$52.98 million ( 29 million), 30% of total revenues. Russia According to data provided by Russian Film Business Today, movie theater admissions in the Russian Federation rose by 9.5% in 200. There were over 50 million admissions for the first time ever with 65.5 million (38.5 million in 2009). After the decline in 2009, earnings increased greatly in 200. With an increase of 43.3%, earnings amounted to $.055 billion (about 763 million), compared to $736.4 million in 2009. This result is related to the boost in admissions as well to the big increase in ticket prices (+24.5%). Average ticket prices were $6.60 in 200 ($5.30 in 2009). Its increase was related to showing 3D films, the prices for which are systematically increased. 69 national films earned $54 million ( 0 million), a 2.5% drop compared to 2009. Their market share dropped for the second year in a row. In 200, Russian films lost more than nine market share points at 4.5% (23.9% in 2009). Production costs of these 69 films totaled $244 million ( 74 million) and only six of them made up their production budget and made a profit. 338 new films were shown on Russian screens in 200 (323 in 2009). 02 of them were limited releases (less than 30 copies). It was notably due to the success of Shrek Forever After, Dragons and Our Russia : The Balls of Fate that the independent distributor, Central Partnership/CP Classic, was the number one distributor for the first time ever, with a market share of 26.6%. Avatar was the box-office leader with record admissions and earnings. It accounted for 4 million admissions and had revenues of more than $7. million ( 83 million). The number one Russian film, Our Russia : The Balls of Fate, ranked eight ($22.2 million). Three Russian films were among the top twenty films of the year. Six 3D films were among the top ten films of the year. 46 films earned over $ million in 200 (9 in 2009) and 26 films earned $0 million (22 in 2009). For the first time ever in Russian film history, two films earned over $50 million and one film earned over $00 million. results 200 / CNC Dossiers / nº 38 May 20 4

Ceux qui aiment la France by Ariane Ascaride. France 2. Televised fiction program receiving production subsidies. Angèle and Tony by Alix Delaporte. Pyramide Distribution. Film granted an advance on receipts. Joanna Francesa by Carlos Diegues. Luz Magica Produçoes. Film restored by the Archives françaises du film du CNC. Sugar Cane Alley by Euzhan Palcy. DR / CNC. Film in the College au cinema program (school cinema). Tales of a Sea Cow by Étienne De France, 200. Étienne De France. Project receiving support for new media.

4 Public Funding The CNC supports the renewal of creative works and the dynamism of the film, television, and multimedia industries, with the support funds. The funds available for the CNC s initiatives in support of film, television, and multimedia amounted to 575.88 million in the 200 budget. Prison Valley (http://prisonvalley.arte.tv) by David Dufresne and Philippe Brault. Upian / Arte. Web-documentary receiving support for new media. Incendies by Denis Villeneuve. Happiness. Film receiving funding for French-Canadian co-productions and selective financing for the distribution of previously unreleased films. Pina by Wim Wenders. Les Films du Losange. Film receiving funding for French-German co-productions as well as financial support for new production technologies. Uncle Boonmee (Who Can Recall His Past Lives) by Apichatpong Weerasethakul. Pyramide Distribution. Film receiving support from Fonds Sud Cniema (Sud Cinema Fund). Petit Tailleur by Louis Garrel. Mezzanine Films / MK2 Distribution. Short film receiving support for short films.

4 Public Funding Created by the Law of October 25, 946, and reformed by Ordinance No. 2009-90 of July 24, 2009, on the legislative part of the cinema and animation Code, the Centre national du cinéma et de l image animée (CNC) is a public administrative organization, set up as a separate and financially independent entity. The Centre comes under the authority of the Ministry of Culture and is headed by a President. It manages, under the authority of the Ministry of Culture, the design and implementation unit of the State s policy in the areas of cinema and other animation industries and arts, notably the television, video, and multimedia (including video game) industries. In conformance with Ordinance No. 2009-90 of July 24, 2009, the CNC s mission is to watch for changes in the professions and activities of the cinema and other animation industries and arts, their technical, legal, economic, and social environment as well as conditions on training and access to the professions concerned. Its mission is also to contribute, for the common good, to the funding and development of cinema and other animation industries and arts and to facilitate adapting to market and technology changes. To this end, it supports, notably by allocating financial support,: _ creation, production, distribution, broadcasting and the promotion of film and television works and multimedia works, as well as the variety of forms of expression and film, television, and multimedia broadcasting and professional training; in this respect, it makes sure that, notably concerning employment in the production sector, the recipients of support comply with their social obligations; _ the creation and modernization of movie theaters, as well as adapting the technical industries to technological changes and innovation in the area of cinema and other animation industries and arts; _ initiatives for film education and cultural dissemination through animation; _ initiatives for cinema professions and cinema activities and other animation industries and arts, as well as those likely to support the promotion and development of cinema and other animation industries and arts in France and abroad; _ film, television, and multimedia creation and production in developing countries, notably by setting up initiatives and cooperation and exchange programs. The CNC s mission is also to monitor exhibition revenues of film and television works and materials made by movie theater exhibitors and by publishers of videograms intended for private use by audiences. Its mission is to keep film and television records and, in this respect, to centralize and provide to rights holders all information concerning exhibition revenues of film and television works. Its mission is to collect, preserve, restore and develop film heritage. As such, the role it performs notably has to do with legal depository. On deposit, it receives film documents and cultural goods related to cinematography given to it and makes, for itself or on behalf of the State, acquisitions to enrich the collections it is keeping. The CNC s mission is also to join in the fight against the piracy of film, television and multimedia works. In addition, the CNC may, as part of agreements entered into with the State, the State s public establishments and with any association and organization subject to audits by the Audit Court, centralize all or part of the funds made available to their budgets, devoted to creating, producing, and broadcasting film and television works and multimedia works. A CNC S FILM SUPPORT FUND The year 200 allowed further modernization of the film support fund. The French Finance Law for 2009 provided for the direct allocation to the CNC of taxes financing film and television support. Since January st, 200, CNC has been responsible for collecting the Television Service Tax (TST) as well as the movie theater ticket tax (TSA). Along with this modernization, the budgetary structure has been renovated, particularly in terms of support presentation. The advantage here is that the CNC s budget and initiatives are easier to read, because film support ( 235.39 million) and television support ( 230.8 million) are more clearly identified. The other advantage is that crosscutting support is more consistently identified ( 67.43 million), equally meant for film, television and new technologies. Besides, since 200, the first subsidies intended for the French Digital Plan have been specifically identified in the budget ( 0.00 million). The 200 budget of the film support fund was 575.88 million ( 567.68 million in 2009). This income is derived from the movie theater ticket tax (TSA), the tax on television service publishers and distributors revenue (TST) and the rental and sales tax on video recordings and works available as Video on Demand (VoD). Lastly, support refunds complete the annual income of the film support fund. 44 results 200 / CNC Dossiers / nº 38 May 20

TSA 2.35 million TST (TV publishers & distributors tax) 422.3 million video & VoD tax 32.7 million others 0.05 million RECEIPTS SUPPORT FUND 575.88 million EXPENDITURES cinema 235.39 million television 230.8 million digital cinema 0.00 million transversal support 67.43 million management costs 32.25 million automatic support 55.98 million selective support 79.4 million automatic support to producion 80.00 million selective support 50.8 million automatic support 6.00 million selective support 6.43 million production 74.90 million production & creation 40.93 million audiovisual production 80.00 million production & creation 50.8 million video 6.00 million technical industries 4.50 million distribution 23.34 million distribution 8.25 million video & VoD 6.60 million exhibition 57.74 million exhibition 25.5 million innovation and new media 4.62 million broadcasting 5.08 million promotion & exportation 24.26 million national inventory of films 0.50 million A Incomes and expenditures of the film, television and multimedia support fund in 200 Source: 200 French Finance law. other 20.95 million (including regional funds 5.03 million) results 200 / CNC Dossiers / nº 38 May 20 45

4 Public Funding B CINEMA SUPPORT The support described in the rest of the chapter was what was actually distributed in 200. CNC initiatives in support of the feature film industry comprise four main parts: support for creation, production, distribution and broadcasting of works intended for the widest of audiences and support for the preservation and restoration of film and film heritage. Film production tax credit The film production tax credit exempts a production company, under certain conditions, from paying tax on 20% of certain ( eligible ) production expenses from taxation, up to a limit of million per film. The tax credit is subject to the issue of a provisional certificate, and then a final certificate of approval. The final certificate, however, can only be issued if the work has already been issued a production approval certificate for CNC financial support, certifying its definitive granting. In 200, of the 203 French initiative films that received investment approvals for financial support purposes, 37 requested provisional tax credit approvals. Total eligible expenses for these 37 films were estimated at 320.5 million and would reach an overall film tax credit (fiscal expenditure) of approximately 58.7 million after the limit was applied ( 64. million before the limit). scriptwriting support support for the development of feature films SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS writers, supported or unsupported by producers producers _ script writing _ script rewriting to back financial commitments made by production companies for scriptwriting and buying film rights.0million for 26 scriptwriting grants and rewriting grants 3.8 million for 43 projects presented by 09 companies Associations financed by the CNC (creation, promotion and guidance for writers, professional training): Groupe de Recherche et d Essai Cinématographique (GREC), Emergence, Abominable, Périphérie, Association des cinéastes documentaristes (ADDOC), Vidéadoc, Atelier du Cinéma Européen (A.C.E). B Support for film creation SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS automatic support for film producers producers of feature films to produce feature or short films 55.7 million raised, of which.05 million used to repay loans, 4.95 million for preparation assistance and 49.70 million for production investments, of which 07,60 were used for short films (0 films) advance on receipts directors and producers to produce films selected on the basis of the script, or after production is completed support for foreign language films directors and producers to support the production of films made in foreign languages by French or foreign directors of certain renown 55 pre-production agreements for a total of 24.35 million and 26 post-production agreements for a total of 2.5 million. Since May 2007, these advances are repayable only with respect to automatic financial support agreements for a total of 0.95 million. Since May 2007, this support is no longer repayable with respect to exhibition revenues. It is now a subsidy support for international co-productions directors and producers _ support for film production in developing countries (fonds Sud) _ support for international co-productions _ 2. million for 25 projects (fonds Sud) _ 9 Franco-German support agreements for.53 million and 2 Franco-Canadian support agreements for 237,000 support for shooting in the DOM Saint Pierre and Miquelon producers of short and feature films to promote the production of short or feature films showing cultural interest for the DOM 3 support agreements for 45,000 B Support for film production Repayments are deducted and exclude support premiums invested. 46 results 200 / CNC Dossiers / nº 38 May 20

C D Selective backing for distribution The CNC supports independent companies whose work contributes to the diversity of films shown in movie theaters. In 2006, selective support programs for distribution were brought together into a single committee, with a single chairperson, and comprising three boards. Special support for short films Apart from the four means to obtain financial support described here, short films may also qualify for other support described in this chapter, notably for automatic and selective television support for films financed by TV stations, and support for new production technologies and from Fonds Images de la diversité, automatic support for film producers and support for shooting in the DOM Saint Pierre and Miquelon With all these options taken together, the total support for the production of short films amounted to 0.76 million in 200. There were 675 (number of short films having obtained an exhibition license) total films produced in 200). Film heritage and French film archives The CNC is responsible for the management and the monitoring of the Archives Françaises du Film (AFF) and all heritage initiatives in the area of French cinema. Within the Commission du patrimoine cinématographique and in several areas having to do with the management of collections, the CNC notably ensures the organization of private institutions devoted to preserving and disseminating film heritage, such as the Cinémathèque française or the Cinémathèque de Toulouse. C SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS automatic support for film distributors distributors Fund a guaranteed minimum to be refunded based on film revenue and/or bear part of publishing expenses support for new releases ( st board) support for old films (2 nd board) support for films for young audiences (3 rd board) Support for film distribution financial contribution to short film production D Specific support for short films new film distributors four procedures: _ support on a film by film basis _ support for first films advance on receipts _ support for distribution companies (subsidies for structure and for program) _ support for under-screened films heritage film distributors two procedures: _ support for old films and film cycles _ support for old film companies distributors of films aimed at young audiences (new films and reruns) to encourage cultural diversity by distributing new French and foreign films in movie theaters _ to support companies distributing old films to renew and diversify what is offered to young audiences by financing teaching aids and accompanying documentation 43 distribution companies raised 8.8 million over 95 films 7.4 million for 239 films 650,000 for 43 films and 3 old films 97,000 for 6 films SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS financial contribution to the rewriting of short films support for the short film company program directors (pre-production support) to encourage the emergence of new scriptwriters and new forms of artistic creation 45 films for 3.26 million directors to encourage the rewriting of scripts 6 projects for 32,000 producers (pre-production support) to guide the development of companies regularly producing short films short film quality award producers (post-production support) to honor films not having received support as projects, and to reward the producer s risk-taking 27 companies and 4 films for 2.97 million 40 films for 380,000 results 200 / CNC Dossiers / nº 38 May 20 47

4 Public Funding The AFF is central to the CNC s film heritage policy, the archives goal being to preserve and promote over 5,000 films. A long-term plan to maintain and restore old films has been in operation since 99, more particularly with regard to films stored on nitrate film (said to be inflammable ) produced between 895 and 950, but also films produced after 950 that are in poor condition and need restoring. In 200, the budget for maintaining and restoring old films was.3 million. 52 films were restored and 250 copies were created. In addition, 530 films were digitized so people could view them in the collections at the Bibliothèque Nationale de France (BnF). These collections gained 4,235 titles in 200, of which,036 films have been registered as legal depository. The viewing spaces of the AFF, located at the BnF and at Bois d Arcy, received 379 researchers for occasional or more long-term investigations. The digitization effort concerned films restored as part of the nitrate plan and short films registered as legal depositary. Numerous loans for external screenings also contributed to the promotion of the AFF collections: 870 films were thus loaned in 200 for various events in France, Europe and in the world, as well as for the production of mixed works and video published. A documentary database is shared by four film heritage institutions: the AFF, the Cinémathèque française, the Cinémathèque de Toulouse and the Cinémathèque de Grenoble. The AFF has enhanced this database by adding descriptions for 4,528 new film and documentation concerning,233 works in 200. support for exhibition automatic support for movie theater operators SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS support for the construction and modernization of movie theaters movie theater operators movie theater operators to finance modernization and equipment works, as well as the construction of new movie theaters to encourage the opening of new venues in underserved parts of the country support for art-house cinemas movie theater operators to encourage diversity in the range of films offered support for movie theaters favoring the screening of challenging films in the face of competition aid to cinema theater digitization support for making additional film print releases movie theater operators Cinema theater owners (mostly to 3 screens) likely not to receive enough contributions by distributors to fund at least 75% of their investments distributors and movie theaters operators (support managed by the ADRC) to encourage movie theaters favoring the screening of challenging films and conducting animations in a competitive context fund digital transition of cinema theaters to encourage greater access to films for movie theaters 64.69 million raised, of which 46.44 million in advance receipts; 742 files processed, of which 593 concern the recording and taking into account of 46.25 million of new works 4.28 million for 3 projects (79 screens) 3.5 million for,060 listed cinemas.74 million for 30 movie theaters in Paris and 9 movie theaters outside of Paris.73 million for 29 cinemas (34 screens), of which 748,000 as subsidies and 977,000 in refundable advances 2.42 million for,765 print releases of 23 films (excluding heritage films) Associations financed by the CNC (distribution of films in movie theaters and cultural broadcasting): Association française des cinémas d Art et Essai (AFCAE), Groupement national des cinémas de recherche (GNCR), the regional art-house movie theater operators associations - recherche, Agence de développement régional du cinéma (ADRC), Agence du cinéma indépendant pour sa diffusion (ACID), Agence du court métrage, Documentaire sur Grand Ecran, Association française pour le cinéma d animation (AFCA), Images en bibliothèques, la Confédération des Ciné-clubs (COFECIC) and the five accredited cine-clubs, Light Cone, Cinedoc, collectif jeune cinéma et Pointligne Plan (screening of experimental films), association des Trois mondes (screening films from developing nations), Ligue de l enseignement (Fédération d éducation populaire), Carrefour des festivals, Lutins du court métrage, etc. support for export SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS support for prospecting abroad exporters of approved films filmed in French to support the strategy of prospecting for a film or a catalog,07 million for 2 films and 8 catalogs support for English subtitling and dubbing producers and exporters of approved films to encourage international sales of a film 28,968 for 62 films Jointly with the Ministry of Foreign Affairs the CNC finances Unifrance Film International, an association whose mission is to develop French film exports and promote French film making abroad. The CNC also backs the Association des exportateurs de films (ADEF), which currently includes 2 of the most active companies and represents exporters of French feature films. Support for film exhibition and export 48 results 200 / CNC Dossiers / nº 38 May 20

E TELEVISION SUPPORT CNC initiatives in support of the television industry focus on three main areas: support for creation, production and the broadcasting of French television programs, notably in other countries. SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS Television broadcasting production tax credit The film production tax credit exempts a production company, under certain conditions, from paying tax on 20% of certain ( eligible ) production expenses, up to,50 per minute for a fiction work or documentary and,200 per minute for an animation (this is not applicable to live shows and news magazines). The tax credit is subject to the issue of a provisional certificate, and then a final certificate of approval. The final certificate, however, can only be issued if the work has already been issued a production approval certificate for CNC financial support, certifying its definitive granting. In 200, 30 broadcast works (37 animation works, 0 documentaries, and 72 fiction films) obtained temporary approval for the tax credit. Total eligible expenses for the tax credit for these works were estimated at 356.7 million. After taking the limits into account, the total cost of the television broadcasting tax credit in favor of these 30 works (fiscal expenditure) would be 48.5 million ( 7.3 million excluding limits). Web COSIP Since 2008, programs for on-demand publishers ( Internet TV ) are eligible for automatic production support on the condition that they have also been pre-purchased by a TV station. The Web COSIP reform, the order for which was published April, 20, will open support to television projects funded only by an Internet broadcaster or platform. support fund for innovative television broadcasting support for preparation and development _ support for scriptwriting for scriptwriters _ development support for production companies producers of fiction films, animation, and documentary works, creation and recreation of live shows to encourage the search for new scriptwriters and new talent for the creation of innovative television broadcasting to develop projects with a view to production of a series specific support for animation producers of difficult projects to encourage the creation of pilots, with a view to helping prospect partners and foreign partners in particular specific support for fiction (to be implemented in December 200) E producers of fiction Support for the creation of television programs to encourage the creation of pilots with a view to canvassing prospective distributors scriptwriting support: _ 22 fiction projects (an average 9,230 per project) _ 6 animation projects (on average 0,090 per project) _ 55 documentary projects ( 7,000 per project) Support for development: _ 6 fiction projects (an average 4,500 per project) _ 7 animation projects (on average 32,860 per project) _ 43 documentary projects (on average 4,280 per project) 7.2 million for 393 projects 235,000 for 8 animation pilots 277,000 for 0 fiction pilots results 200 / CNC Dossiers / nº 38 May 20 49

4 Public Funding SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS TRANSVERSAL SUPPORT automatic support for productions advances on rights to automatic support for production selective support for the production of television programs support for Franco-Canadian co-productions support for music videos (quality bonus) producers having already produced and broadcast television programs on French TV stations producers having exhausted their automatic support _ producers not having an automatic account _ works for which the broadcaster s contribution is low _ short documentary works _ magazines with content of cultural interest television programs produced as a co-production and qualifying for the bilateral agreement producers of vidéo-clips to finance the preparation or production of new television works to finance the preparation or production of new television works to finance the preparation or production of television works to encourage the co-production of television works between France and Canada to assist in the production of high-quality video-clips associations financed by the CNC: Conservatoire Européen d Écriture Audiovisuelle (training of scriptwriters), Eurodoc (training in European production of documentaries), etc. E Support for television production 33.74 million of which 50.02 million for fiction films, 50.9 million for documentaries, 7.44 million for animation and 5.37 million for live shows 37.46 million of which 0.69 million for fiction films, 4.66 million for documentaries, 7.2 million for animation and 4.99 million for live shows 25.43 million of which 7.5 million for fiction films, 8.00 million for documentaries, 4.92 million for animations,.8 million for live shows and 3.56 million for the magazine 3 projects of development: 2 documentary projects and animation project 420,000 for 35 prize-winning video-clips out of 83 projects examined and 238,534 for 25 reinvestment projects Images of diversity Initiated in 2006, a new fund was set up by Decree No. 2007-8 of February 9, 2007. The Images de la diversité fund is jointly managed by the CNC and the Agence nationale pour la cohésion sociale et l égalité des chances (Acsé). In line with the proposals of these two organizations, the Images de la diversité commission will allocate additional funds for film and television broadcasting, contributing to better representation of French cultural diversity and to the promotion of the equal opportunities policy. Projects likely to secure funding from this fund must already have received selective support from the CNC, who thus allocates additional support. This additional support, different from Acse s support, is intended to assist all stages of creation and exhibition of the works chosen, and can thus correspond to support for preparation (scriptwriting, development), for production or for distribution and broadcasting (distribution, video publishing). Additional support can amount to 50,000 per project, within the limit of the amount of the initial selective support(s) granted. En 200, the Images de la diversité fund supported 9 projects, for a total of 3.4 million. SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS support for the promotion of television programs producers and distributors wishing to market their programs abroad to finance effective marketing tools.26 million for 52 programs The CNC, as part of Regards sur le cinéma, acquires the rights to documentaries, which deal with film, television and multimedia intended for non-commercial television broadcasting on the French cultural network. This selection supplies the Images de la Culture catalog, which consists of 2,500 documentary titles, made available mostly in DVD format, to multimedia libraries, art schools, architecture schools and choreographic centers, as well as prisons. In 200, 6,000 DVDs were sold to raise funds for free public screenings. The budget for acquiring the Images de la culture catalog was 50,000. The CNC finances TV France International, an association whose mission is to develop French film exports and promote French filmmaking abroad. E Support for television broadcasting 50 results 200 / CNC Dossiers / nº 38 May 20

The international tax credit Implemented by the Decrees of December, 2009, the international tax credit concerns works wholly or partly made in France and initiated by a foreign company. It is selectively granted by the CNC to the company ensuring executive production of the work in France, on the basis of a rating scale validating how this work is related to culture, heritage, and the French territory. It represents 20% of principle production expenses of the work incurred in France and can total 4.0 million. In 200, 24 projects were approved: 3 feature-length fiction films, 2 fiction television series, 5 feature-length animation films and 4 animation TV series. 3 of these projects were American. Total corresponding projected investments in France is to the order of 85.0 million. F Support for video publishing Since 993, the CNC has developed support for video publishing. Since 2008, increases in selective support for video publishers has encouraged joint publication on both physical mediums (DVD and Blu-ray) and video on demand (VoD). At the same time, selective support for VoD was also set up in 2008. It supports holders of VoD rights catalogues (support for digitization and editorial enrichment) and VoD service publishers (uploading and editorialization). The fight against piracy Set up in 985, the Association de lutte contre la piraterie audiovisuelle (ALPA) is an association, which brings together various players in the film and television industry concerned by piracy. Partly financed by the CNC, its purpose is to fight all forms of piracy, whether in physical format or on the Internet. Copyright infringement is enforced by sworn agents. By Decision No. 2006-294 of December 2, 2006, ALPA was authorized by the CNIL (French Data Protection Authority) to implement personal data processing for the purpose of searching for acts that may constitute such infringements. ALPA participates in the fight against illegal downloading by alerting the High Authority for copyright protection and dissemination of works on the Internet (HADOPI) of any offenses that it may note (The Creation and Internet Law No. 2009-669 of June 2, 2009, promoting the distribution and protection of creative works on the Internet). SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS automatic support for video publishing video publishers marketing approved French feature films released less than six years ago or short film programs to finance the purchase of video exhibition rights for recent French films 3.9 million raised for 37 files selective support for video publishing publishers of videos to encourage the editorial work taking place around film and television works of particular cultural interest 3.68 million for 349 unitary projects and 25 editorial programs (for a total of 795 titles). 90 of these projects (unitary and editorial programs) received a VoD premium selective support for Video on Demand (VoD) F Support for video publishing holders of the VoD rights catalogue and VoD service publishers to encourage use of the catalogs, the diversity of the offer and showing French and European works on VoD.48 million for 34 projects, of which 2 received support for holders of a VoD rights catalogue and 22 received VoD service publishers support results 200 / CNC Dossiers / nº 38 May 20 5

4 Public Funding G Support for technical industries and new media Support for technical industries accompanies digital investments for technical providers of film and television creation. RIAM (Research and Innovation in Television and Multimedia), a partnership between the CNC and Oséo innovation, supports research and development by PME in television and multimedia. Support for new technologies in production (NTP) accompanies the risk that producers take when using innovative technologies (digital special effects, computer generated images, updating special processes). Since 2008, emphasis has been put on 3D development and production. The CNC was authorized at the end of 200 by the European Commission to increasingly support this type of production. SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS financial support for technical industries support for new production technologies (NTP) technical film and television industries producers of film and television works using innovative techniques, notably 3D to accompany the changes throughout the sector brought about by the widespread use of digital technology, to offer support in terms of equipment, modernization, and company restructuring to back producers who take risks 4.58 million for 00 projects 2.2 million for 50 projects (37 in the film sector and 3 in the television sector) of which.8 for 3D production projects (8 feature films, 9 feature film pilots and 3 short films) support for research and innovation in television and multimedia (RIAM) PME carrying out research and development in television and multimedia to encourage research and development activities within companies.62 million for 26 projects The CNC finances the CST (Commission supérieure et technique de l image et du son), an association whose mission is to promote technical progress likely to improve the quality of audiovisual expression, from creation to broadcast and, in particular, to ensure the works are respected and the quality of their restoration. G Support for technical industries and for new media 52 results 200 / CNC Dossiers / nº 38 May 20

H Support for creation of new media and video games Support for new media supports the creation of television works specific to interactive or multi-platform media. In 200, the CNC changed the video game support fund. Support for the creation of intellectual property has replaced layouts from now on. The idea is to encourage new creations and to get companies to create a heritage value around the video games that they produce by getting them to retain intellectual property rights. Tax credit for expenses incurred from video game creation Entering into force at the end of May 2008, the tax credit for expenses incurred from video game creation allows creative companies, which are active in this sector and located in France, to deduct 20% of eligible expenses from their taxes. These expenses concern the production of video games that contribute to the diversity of French and European creation. In 200, 6 video game production files received preliminary approval for the tax credit for creative expenses, for a total estimate amount of eligible expenses of 43.6 million and for a total estimate amount of tax credit of 8.7 M. SUPPORT BENEFICIARIES ObjECTIvES 200 RESULTS support fund for video games (support from the CNC/Ministry of the Economy, Industry, and Employment) development studios to support research and development, innovation and creation in the video game industry support for new media writers or producers to encourage the development of projects designed for several television broadcasting platforms, the creation of content for the internet and mobile screens, and stimulate the renewal and diversification of creative methods support for artistic multimedia creation (DICREAM) H creators in the digital field, working in a cross-disciplinary manner in the fields of live shows, Internet and video creation Support for creation of new media and video games _ to assist in the production of layouts _ to assist in the achievement of artistic projects _ to support national or international public events devoted to digital creation 3.3 million for 50 projects, of which 0.96 for pre-production projects, 0.2 million for 3 layouts, 0.25 million for events related to video games and.7 million for 5 grants to the creation of intellectual property projects.83 million for 67 projects (28 received support for writing and development for 3 platforms, 2 received support for writing and development for the Internet and mobile phones, 8 received support for Internet production) 0.95 million for 20 projects (45 received layout support, 56 received production support and 9 received event support) results 200 / CNC Dossiers / nº 38 May 20 53

4 Public Funding AGREEMENTS WITH LOCAL AUTHORITIES The CNC s local initiatives policy Since 989, the CNC s local initiatives policy has been implemented via the signing of agreements with local authorities. It aims at making the film and television sector a vector for local cultural and economic development, through close co-operation between local and central government. It covers the areas of support of creation, production and hosting film-making, initiatives for image education, cultural dissemination as well as film exhibition. The multi-year agreements on film and television development concluded with the regions and the DRAC (directions régionales des affaires culturelles) is an instrument of dialogue, negotiation, and implementation of joint initiatives, concerning three elements: consistency of initiatives led, transparency of initiatives, traceability of furnished funding. They provide annual financial amendments specifying the commitments made by each party. Sub-regional authorities (departments, communities of communes) can, if necessary, become a partner to these agreements, if, in accordance with the General Code of the local authorities, the region coordinates the economic development initiatives of all authorities in the area. The positive results of the first generation of the three-year period agreements (2004-2006) led to the partners being in favor of continuing and strengthening this cooperation tool. All agreements were thus renewed in 2007 for a new three-year period. Because of the election calendar and upon request by the Association des Régions de France (ARF), the 2007-2009 agreements were finally extended until December 3, 200. A new generation of three-year agreements will be concluded for the 20-203 period. The agreements include three major sections: _ the first is devoted to scriptwriting, development, film and television production, as well as hosting filmmaking. It is backed by the local authority concerned (support is granted selectively, after special commission opinions have been provided) and by an additional amount from the CNC of funds provided by the support fund; _ the second concerns cultural screenings and artistic education, with initiatives such as Lycéens au cinéma and Passeurs d Images and support for regional artistic education centers. It is financed by the local authority, as well as DRAC (Directions régionales des affaires culturelles) funding and, for some 30 national or international interest festivals, by CNC funds from the support fund; _ the third is devoted to film exhibition and aims to allow the authorities, the DRAC, and the CNC to specify their level of involvement and support for theaters and to engage in greater cooperation and systematic information exchanges, particularly with regard to the support for digitization of movie theaters. As part of the agreements, CNC direct intervention methods are the following: _ with the regions, the CNC defines funds for each category: support for scriptwriting and development, support for short films, support for feature films, and support for television; _ the CNC allocates a fixed amount for scriptwriting and development support set up by the authorities; for feature film and television production, the from the CNC for every 2 from the region program was implemented, subject to the film s being accredited by the CNC or to the work receiving assistance from the television support fund; the for 2 has also applied since 2006 to short film productions. _ the CNC limits financial participation to 2 million per year and per agreement; _ regional offices responsible for hosting shootings (also known as regional film commissions) also receive support throughout the first three years of operation. In 200, the amount of money committed in the 25 concluded agreements was 85.46 million (or 0.2% more than in 2009), distributed as follows: _ 2.4 million for scriptwriting and development ( 2.3 million from local authorities and 0. million from the CNC); _ 6.3 million for the production of short films ( 4.2 million from local authorities and 2. million from the CNC); _ 25.7 million for the production of feature films ( 9.8 million from local authorities and 5.9 million from the CNC); _ 20. million for television production ( 3.6 million from the regions and 6.5 million from the CNC); _ 2.8 million for hosting shoots ( 2.7 million from the regions and 0. million from the CNC); _ 28.4 million for art education and cultural dissemination ( 8.7 million from the regions, 7. million from the DRACs and 2.6 million from the CNC). The State agreements (CNC+DRAC), as part of the film and television agreements, went from 0. million in 2004 to 24.3 million in 200, or an increase of 4%. During the same period, local authority agreements went from 35.5 million to 6.4 million, or an increase of +73%. For all joint parties, there was an increase of 88% between 2004 ( 45.6 million) and 200 ( 85.6 million). At the end of 200, the agreements covered 34 local authorities: 25 of the 26 regions (missing only Martinique), 7 departments (Alpes-Maritimes, Charente, Charente-Maritime, Dordogne, Haute-Savoie, Seine-Saint-Denis, Vienne), the Urban Community of Strasbourg and the City of Paris. 54 results 200 / CNC Dossiers / nº 38 May 20

Initiatives taken by DRACs (regional directorates for cultural affairs) In order to bring state participation closer to the point of implementation in the regions, the Ministry of Culture and Communication and the CNC have, over the past decade, embarked on a wide-ranging decentralization initiative. This has been achieved by transferring responsibility and fund management to the Regional Directorates for Cultural Affairs, and by setting up a network of film and television advisors within them. In 200, DRAC funding to film, television and multimedia amounted to 0.48 million, of which 7. million were implemented within the context of tripartite CNC State Region agreements. They are divided as follows: _ 3.5 million for youth initiatives (art education with the school initiatives École, Collège et Lycéens au cinéma; film classes in high schools; other educational initiatives); _ 0.8 million for regional film education centers (in 3 regions); _.2 million for the Passeurs d Images initiative; _ 2.6 million for cultural dissemination support (regional or local festivals, art house cinema distribution associations, etc.); _.3 million for support for regional heritage institutions (Institut Lumière in Lyons, Cinémathèque de Toulouse, etc.); _ 0.6 million for support to digital practices; _ 0.8 million for other initiatives led in partnership with local authorities. Bodies associated with regional policy for Film and broadcasting development In certain cases, all or part of the training and financial management of regional support for creation and production is delegated by the local authority to an outside organization, whether it is a EPCC (établissement public de coopération culturelle), such as the Centre Images or the Cité de l image en mouvement d Annecy (CITIA), or an association such as the Centre régional de ressources audiovisuelles du Nord-Pas de Calais (CRRAV), the Pôle Image Haute-Normandie, the Maison de l Image Basse-Normandie, the Agence culturelle d Alsace (ACA) or the Office régional culturel de Champagne-Ardenne (ORCCA). In addition, the Commission nationale du film France and the 40 regional and local film commissions provide free support along with film and television professionals for different types of services: information on the shooting and location search sites; searching for technicians, actors and extras (casting services at most reception desks may be possible); administrative steps, assistance for shooting authorizations; logistics and various information (car rental, accommodations, etc.); providing production and documentation offices; contact with the press and local authorities. EDUCATIONAL INITIATIVES FOR FILM AND TELEVISION The CNC makes a point of providing children and teenagers, our future TV viewers and moviegoers, with art education in the areas of film and television. This policy was implemented through four national initiatives. In 2008-2009, these school initiatives affected,333,34 students, which is close to 0.5% of French students, and generated a total of 3.44 million admissions. The program École et cinéma involved 589,47 schoolchildren in 93 departments and generated.585 million admissions. Collège au cinéma involved 487,024 secondary school students in 9 departments and generated.249 million admissions. Lycéens et apprentis au cinéma involved 256,89 high school students, or 62,744 admissions in 25 regions. The high school program Enseignement de spécialité cinéma-audiovisuel involved about 5,000 students. In 200, outside of school, the program Passeurs d Images involved 553 venues in communes or communities of communes, gathering almost 2,000 partners, including 385 theaters, for organizing 2,000 initiatives involving around 250,000 participants in France). The CNC also contributed its support to setting up 3 regional centers for art education and training in television and film. In 200, the CNC dedicated a total budget of 2.5 million to film education. In parallel, the CNC, together with the ministries concerned, implemented a movie theater access program for people in difficult situations (young people from poor neighborhoods, hospitals, prisons, etc.). These initiatives are mainly concerned with learning with help from civic associations. In this spirit, the CNC subsidizes the Kyrnea association, whose Passeurs d Images initiative facilitates access to film methods and education. In collaboration with the French agency for the court-ordered protection of minors (Protection Judiciaire de la Jeunesse PJJ), the Délégation au développement et aux affaires internationales (DDAI) and the Agence nationale pour la cohésion sociale et l égalité des chances (Acsé), the Des cinés, la vie initiative was launched in order to introduce young people in its care to short films. Other associations working on similar issues also receive support, such as Les Toiles Enchantées (film screenings for children in hospitals) and Retour d Images (film screenings for the deaf and the hearing-impaired), or Ciné-ma différence (showing films in theaters for autistic people or people with associated behavioral problems). results 200 / CNC Dossiers / nº 38 May 20 55

CNC Dossiers nº 38 May 20 results 200 a publication of the Centre national du cinéma et de l image animée 2 rue de Lübeck F-75784 Paris Cedex 6 www.cnc.fr Research & statistics Department tél. +33(0) 44 34 38 26 / fax +33(0) 44 34 34 55 Communication Department tél. +33(0) 44 34 36 95 / fax +33(0) 44 34 34 73 Editor Éric Garandeau Editorial committee Stéphane Bedin, Nicolas Besson, Fanny Beuré, Corisande Bonnin, Benoît Danard, Sylvain Dandine, Sophie Daubard, Martine Doré, Stéphanie Gavardin, jean-pierre Guerrieri, Sophie jardillier, Caroline jeanneau, Clément Malherbe, Gérard Mesguich, Ariane Nouvet, Milvia Pandiani-Lacombe, Cindy Pierron Translation Textra, Paris Graphic design Anaïs Lancrenon & julien Lelièvre Printed by Bialec, Nancy D.L. nº 66792 Legal deposit on publication Joint Committee nº 224-ADEP, ISSN 55-0358 Unit price 5 / subscription 30 Souscription pour un an soit 4 dossiers et 0 lettres nº de CCP de l Agent comptable du CNC: 90637 Paris Unless otherwise indicated, any total or partial reproduction of information distributed through this CNC publication is authorised provided that the source is indicated.

Pina by Wim Wenders. Les Films du Losange. Little White Lies by Guillaume Canet. Les Productions du Trésor EuropaCorp Caneo Films M6 Films. People s Names by Michel Leclerc. Michaël Crotto / UGC Distribution. The Illusionist by Sylvain Chomet. Pathé Distribution. Les Beaux Mecs. Lincoln Productions / France 2. Un transport en commun by Dyana Gaye. Shellac Distribution. A Screaming Man by Mahamat-Saleh Haroun. Pyramide Distribution.

CNC Dossiers nº 38 May 20 a publication of the Centre national du cinéma et de l image animée 2 rue de Lübeck F-75784 Paris Cedex 6 www.cnc.fr Research & statistic department tél. +33 (0) 44 34 38 26 / fax +33 (0) 44 34 34 55 Communication department tél. +33 (0) 44 34 36 95 / fax +33 (0) 44 34 34 73 Results 200 CNC Dossiers nº 38 May 20 CNC Dossiers nº 38 May 20 Results 200 results 200 Films, television programs, production, distribution, exhibition, exports, video, new media