This is the presentation of my eMBA thesis defence (June 2016). eMBA "Leading Innovation in a Digital World" at Mines-Telecom-Institute. How a traditional French TV channel could find a new growth driver following viewer’s expectation.

1. APPLICATION TO ACCESS AN OF PROGRAMS
BUSINESS PLAN PRESENTATION
1

2. Or how a traditional TV channel could
find a new growth driver following
viewer’s expectation
2

3. Vincent Ledoux 3
Project Director
More than 20 years of experience in the
media sector.
My understanding of media and my technical
expertise allow me to support the
development of new services or new ways of
broadcasting

4. TV evolves into a fierce competitive
market
Free TV Paid TV Replay TV VOD SVOD
Video
Sharing App
Social
Network
25 free
channels
Premium
And
thematic
Channels
Content
available
during 7
days after
broadcast
Fresh
Premium
Movies or
TV shows
Unlimited
access Wide
catalog of
movies &
exclusive TV
Shows
Unlimited
access on
Free
contents
All Video
shared by
friends and
community
4
Turnover
€9,1
Billion in
2014

5. With local and global actors…
Live & Replay TV
5
1
2
3
4
5
6
VOD
SVOD
Online Video
& Social Network
Paid TV
7

6. Traditional TV Market is declining
Free TV
27 free
channels
33%
of Market
Share for
Leader
Strong
Advertising
Agency
Audience of
21,4%
-1,5 in 2015
For the Leader
Average age
of viewers
> 51 years
Listening Time
2015
-10% for 4-
14
-6% for 15-
34
6
with strong competitive advantages For some actors
X4
in 10
years
3337
3242
3150
3200
3250
3300
3350
2012 2015
Billion€
TV Ad Revenue
Source: Mediamétrie – Mediamat & CNC - l’économie de la télévision – décembre 2015
but also with new weaknesses

7. Replay TV, a driver of growth…
Replay TV
72,2 % of
internet
users
watch
programs
on replay
TV
First Replay
Platform
With 16
million
viewers
every month
8
million
on IPTV
8
million
on
Internet
1,3 Billion
video view
on Replay in
2015
+20% y-t-y
7
with an undeniable success
Source: CNC - Bilan 2014 du CNC & Internal TF1

8. ….But in a tiny market...
30.8%
31.5% 31.6%
28.9%
30.4%
32.7%
27%
28%
29%
30%
31%
32%
33%
2014 2015 2016
Ads Market Share
Television Digital
Online Video
5%
of Digital
market
8
Source Magna Global: French Advertising Market - Forecast 2015

9. ...and not profitable... Why?
Our Programs are
not
exclusive
on Digital
Available
7days
The price of Digital
Ads is
not
adapted
Who
are the
viewers ?
1 2 3 4
9
It was an opportunity in the past and it has become a threat for our traditional market…
46,1%
of users every
weeks
Between
8PM &10PM
5%
of market
Share every
month
Source: CNC - Bilan 2014 du CNC & Mediamétrie

10. TV Programs are not exclusive
on Digital…
… when exclusivity on digital is mandatory
10

11. But what about VOD?
IN THIS UNIVERSE, TRADITIONAL TVs OWN DISTRIBUTION PLATFORMS
11

12. VOD is not attractive
PENETRATION IS ONLY 33,1%
12
Not coupled
with other
video
services
Expensive
5,99€
Not
distinctive

13. Turnover is dominated by linear
Example with the leader
90%
3% 3% 4%
Free TV Linear
Pay TV
Replay
VOD
13
Source: TF1 Turnover 2015

14. Can SVOD be a growth driver?
14

15. SVOD is a growing market
99
188
270
374
432
470 490
200
400
600
2014 2015 2016 2017 2018 2019 2020
inMillion€
Forecast growth of French SVOD Market
A new way
to consume
on Digital
Turnover of
€490 million
in 2020
Half of
users will be
Digital
Natives
6,2 million
subscribers
every month
in 2020
25,4 % for
15-24 years
&
26,3% for
25-34 years
15
Source: Statista – French video market 2015 & CNC - Bilan 2014 du CNC

16. Various markets, some issues to solve,
challenged by new uses…
16

17. Today, viewers want…Choice
Large catalog
All range of programs
Premium content
All kind of access
Accessibility
Any device
Any network
Anytime
Unlimited
No commitment
Quality
High video & service
quality
UX design
Personalization
Recommendation
engine
Price
Low prices
Rewards
One account
17

18. “
”
1FiniTy is a video app that will inform and
entertain the young generation (15-34 years) with
exclusive programs in the digital world across all
networks and all devices.
1FiniTy will be the first generalist OTT player.
18Our response…1FiniTy

19. ConvenienceAccessibility
Exclusive programs from the past, present and future
 All programs under rights. All episodes/seasons available
Sharing our income with producers and distributors
 Subscription to watch on unlimited
 VOD for premium programs with special price for subscribers
1FiniTy all in one
Programs
Programs 19

20. ConveniencePrograms
An exclusive access for the family and beyond
One account for all the family or our community (four members per Account)
Profile for each member or group
A specific recommendation engine that works with viewers preferences but
also works with the habits of consumption during the day
Available on any network with quality adaptation
Available on any device
1FiniTy all in one
Accessibility
Accessibility 20

21. AccessibilityPrograms
Features for a better experience
No TV schedule
Start playback on one device and resume at the same place on another
device
No quality option, High definition on all programs
Each VOD rental can be watched on all devices
A complete Social network Integration, share, comment, discuss, rate video
1FiniTy all in one
Convenience
Convenience 21
A new way to watch advertising
A new way to build relationship for advertisers (Voucher, Rewards, sample,
Appointments, Exclusive promotion, on much more)
Purchase products directly on video without leaving the App
Watch more specific content about products until purchase the product

22. Young generations are our target
but not only…
Early Adopters
• SVOD Subscribers
• 1,2 million users
Current users of
Replay services
•8 million on non-
managed Networks
Young Generation
(15-34 years)
• Born between 1978 &
1994
• 13 million with 1/3
active
• They will become 50%
of the French active
population in 2020
22
Source: Insee

23. Digital natives expectations… 23
TV&Video
Consumption
The 15-24 are 7% of
linear TV viewers
and The 25-34 are
12%
52,4% of the 15-24
&
49,2% of the 25-34
use replay service
25,4 % of 15-24 &
26,3% of 25-34
Behaviors
ATAWAD
Anytime, Anywhere,
Any Device
Access to
everything &
immediately
Equipment
&Usage
Multi-device (6,4) &
hyper connected
Spend 2.2 hours a
day on their mobile
15-24 & 25-34 are
respectively 69,6%
and 53,4% to watch
Replay TV on laptop
Price
Sensitive to quality-
price ratio
The qualitative will
prevail over
quantity
They will buy less
and lease more
Source: CNC – l’économie de la télévision – décembre 2015 & CNC – Bilan 2014 du CNC

24. Our business is to sell ad...
24
On digital, advertisers want to reach the
right target…
differently…

25. Ad targeting is the key…and accepted by
our target…
25
Source: MillardBrown – Adreaction 2015

26. 26with interactivity and targeting, ads will be
amazing…for our viewers
Source: WireWax

27. 1FiniTy will be our targeting machine! 27
Advertisers
•Need qualified ad audience
•Know viewers
•Create and nourish a brand and
customer relationships
1FiniTy
• Qualified customer data
• Complete registration
required
• Interactivity on ads
• Sell or promote directly
through our service
Tools
•Real-time bidding
•Supply-side-platform
•Programmatic tools
•Interactivity platform
•E-commerce platform
Increase
our
revenue
•Increase up to 150% our CPM Price
(targeting)
•Sell advertising with qualified view
•Fee on goods sales

28. Forecast on our ad price on digital 28
Today
0,02€ per
Year 1
0,04€ per ad
inserted
Year 2
0,05€ per ad
inserted
Year 3
0,06€ per ad
inserted

29. Our business model… Freemium
Revenue coming
from Ads
minimum of 4 ads by
video view
Revenue coming
from subscription
and from ad (one
ad max by view)
Revenue coming
from fee for service
Free Access limited
to 8 views by
account and per
month
(Registration
required
Unlimited access
subscription without
engagement
Rent or Purchase
VOD for all account
registered
(free and paid)
29

30. Price and featuresSubscription
Free Plan
Limited commercial
xxx€/month
Unlimited Access to 1FiniTy generalist and thematic catalog
(past, current and future seasons)
8 Programs per month and per account
(excluding movies and future seasons) ∞
Commercial in pre-roll and mid-roll 2 Pre-roll/2 Mid-roll on each program
Limited to 1 in Pre-roll on each
program
Unlimited access to exclusive programs and programs never
broadcast
No ∞
Premium Movies and TV shows available to rent or to purchase with
the account ∞ ∞
VOD
Free Plan Limited commercial plan
Rent a Premium movie 5,99€ x,99€
Purchase a Premium movie 13,99€ xx,99€
Rent a Premium TV show
(Episode)
1,99€ x,99€
Purchase a Premium TV show (Season) 8,99€ x,99€
30

31. our positioning is unique
1FiniTy
31
Premium Content
Customer Price
SVOD
Replay
FTA
Online
video
Package
Paid TV
Paid TV
VOD
Social
Network

32. with all in one app… 32
and exclusive programs only available on
1FiniTy
Live TV VOD
Replay SVOD
1FiniTy

33. Our three-year sales forecast
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20
Service Adoption Free Account Subscriber Account Total Users VOD transaction
33

34. 1FiniTy, keys of success
Exclusive programs
Recommendation
Any device, Any network
Quality of experience
34

35. Follow us on
1finity.tv
Thank You !
Q&A
35