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Vivendi: Canal must cut its cloth

September 25, 2007 09.27 Europe/London By Julian Clover

Vivendi chairman Jean-Bernard Levy has told Canal+ it must increase subscription levels and make savings on content, particularly football, if it is to meet profitability targets.

Vivendi has brought forward its objective of a 20% profit margin for the pay-TV group by one year to 2010. Such levels are already met by BSkyB and exceeded by the US-based HBO. Levy said he expected an operating margin in 2007 of slightly above 7%.

Levy said he was looking to reduce the current €2 billion budget by between 10% and 12%. The targets would be football and acquired content from the US. Both might be challenging as although the merger with DTH platform TPS would have reduced costs its place as a challenger to Canal’s pay-TV crown has effectively been taken by France’s burgeoning IPTV sector.

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Filed Under: Newsline, TV Edited: 25 September 2007 09:27

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About Julian Clover

Julian Clover is a Media and Technology journalist based in Cambridge, UK. He works in online and printed media. Julian is also a voice on local radio. You can talk to Julian on X @julianclover, or by email at jclover@broadbandtvnews.com.

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