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

Transcription

1 RESULTS 2017

2 Results 2017 Films, television programs, production, distribution, exhibition, exports, video, new media May 2018

3 Results ELECTRONICS AND HOUSEHOLD SPENDING ON FILM, VIDEO, TV AND VIDEO GAMES CINEMA Attendance at movie theaters Distribution Movie theater audiences Exhibition Feature film production TELEVISION The television audience Films on television Fiction on television Aided television production Catch-up TV VIDEO, VIDEO GAMES AND TECHNICAL INDUSTRIES The video market DVD and Blu-ray Video on Demand (VoD) Video games The Technical Services Sector INTERNATIONAL Export of films and television programs Admissions for French films abroad Cinema throughout the world CNC Public Funding Sex equality in the sector results

4 1. ELECTRONICS AND HOUSEHOLD SPENDING ON FILM, VIDEO, TV AND VIDEO GAMES 4 results 2017

5 Household spending on film, video, TV and video games by the French 2017 Key Figures: Household spending on film, video and TV: 11.5 billion (+2.7% compared to 2016) of which: 12.1% cinema 48.2% television 8.9% video 30.8% video games Household spending on film, video and TV by the French amounted to 11.5 billion in 2017 (+2.7%) In 2017, household spending on film, video and TV (excluding equipment) increased by 2.7% from 2016 to 11.5 billion (after tax). According to the French national office of statistics (INSEE), in the same period, total household spending on consumer goods increased by 1.3%. Spending on video games (+9.1%) and video (+6.2%) increased whereas spending on movie theaters (-0.6%) and television (-0.9%) was down. In 2017, each French household (28.2 million in total) spent an average of 406 on film, video and TV (+1.9% compared to 2016). In 2017, spending on television represented, on average, 196 per household (-1.6%), versus 125 for video games (+8.3%), 49 for cinema (-1.3%) and 36 for video (+5.5%) including 19 for physical video (-10.5%) and 17 for video on demand (+31.4%). Household spending on film, video and TV by the French¹ (millions of ) cinema 1, ,380.6 television 5, ,519.9 TV subscriptions 3, ,212.3 TV license fee 2 2, ,307.6 video ,021.7 physical video video on demand video games (physical and online) 3, ,530.2 Total 11, ,452.4 ¹ Estimate, spending after tax. ² TV portion, excluding external audiovisual services and State contributions. ³ Updated data. Source: CNC/Vivendi+, DGMIC, GfK, IDATE, NPA Conseil. Television was the main item of expenditure Television was the main item of expenditure on film, video and TV for French households. The share of television in household spending on film, video and TV was 48.2% in 2017 (49.9% in 2016) of which 28.0% for subscriptions (29.6% in 2016) and 20.1% for the TV license fee (20.3% in 2016). The share of spending on video games reached 30.8% (29.0% in 2016). The share of spending on film was 12.1%, compared to 12.4% in The share of video purchases was 8.9% results

6 (8.6% in 2016), of which 4.7% for physical video (5.3% in 2016) and 4.2% for video on demand (3.3% in 2016). In 2017, spending on online offers (video on demand and online video games) accounted for over a quarter of total spending of French households on film, video and TV. The share of TV in household spending on film, video and TV was 48.2% in Spending patterns of the French on film, video and TV (%) video games 29,0 cinema 12,4 video games 30,8 cinema 12,1 video 8,6 television 49,9 video 8,9 television 48,2 Source: CNC/Vivendi+, DGMIC, GfK, IDATE, NPA Conseil. Spending on movie tickets fell In 2017, cinema attendance by French households decreased by 0.6%, compared to 2016, to 1,380.6 million. Movie theater admissions totaled million (-1.8%) and the average price of a ticket was 6.59 (+1.2%). Spending on films in theaters represented an average of 7.4 admissions per household in 2017, compared with 7.6 in Spending on television was down In 2017, household spending on television (public television and pay television) was down 0.9% on 2016 at 5,519.9 million. In 2017, direct household spending on public television (the TV portion of the TV license fee, excluding external audiovisual services) rose by 1.8% on 2016 to 2,307.6 million. In 2017, the amount collected by the TV license fee rose by 2.0% to 3,203.0 million. FTA public channels received 72.0% of net resources from the TV license fee (72.2% in 2016). Household spending on this item does not directly reflect consumer behavior. Rather, this spending illustrated the French government's fiscal policy objectives for financing the public aspect of the broadcasting sector. TV license fee spending is dependent on the level of this tax, the means of collection, changes in the total number of television sets, current exemption policies, and how the contributions are divided up to fund public television and radio. In 2017, household spending on traditional pay TV fell 2.7% on 2016 to 3,212.3 million. With subscription video-on-demand factored in, household spending on traditional and non-traditional pay TV was up 0.8% at 3,461.3 million. Spending on pay TV does not include revenue from access services for broadband television. According to the ARCEP (authority for regulation of the 6 results 2017

7 electronic communications and postal sectors), revenues from broadband services on fixed networks (Internet, television, telephone) amounted to 11.7 billion between the 4 th quarter of 2016 and the 3 rd quarter of 2017 (+3.0% compared to the previous 12 months). In the 3 rd quarter of 2017, the number of television accesses combined with a subscription to the Internet increased by 4.8% year on year to 19.9 million. TV license fee in 2017 fee collected 3,203 million collection costs 29 million net fee collected (tax included) 3,174 million tax relief refund (tax included) 592 million VAT 1 65 million available license fee revenues (before tax) 3,109 million tax relief refund (before tax) 580 million VAT 1 12 million television 72.0% radio 16.6% INA 2.4% external services 8.9% ¹ Reduced VAT rate of 2.1%. Source: DGMIC. Spending on video and video games was up In 2017, the video market (physical and on demand & catch-up) was up 6.2% compared to 2016 at 1,021.7 million. The video-on-demand market grew (+32.3% to million) while the physical video market continued to shrink (-9.8% to million). In 2017, household spending on video games (physical and online) amounted to 3,530.2 million. It grew by 9.1% compared with results

8 Audiovisual equipment in French households 94.1% of French people had a television set, 77.8% a smartphone, 76.2% a computer and 44.5% a tablet In 2017, each home was equipped with an average of 5.4 screens (taking into account television sets, computers, tablets and smartphones) according to GfK. In 2017, the proportion of households with at least one television screen was down 0.8 points compared to 2016 at 94.1%. In 2017, sales of television sets in France were down more than 30% from 2016 to 4.5 million units. This was the lowest level since the launch of digital terrestrial television (DTT) in In 2017, 36% of television sets sold were connectable to the Internet (almost half of them with Google's AndroidTV system) and 31% had ultra-high definition (UHD) screens. The average size of screens sold (measured diagonally) was 99 centimeters (+8 centimeters in one year). In 2018, GfK estimates that the volume of sales of television screens, boosted by the FIFA World Cup, should amount to 4.6 million units. 10.1% of French households had a multimedia gateway (OTT box or key) in % of French households were equipped with an UHD screen in 2017, versus 6.4% in In 2017, 27.0% of households had a television set that can be connected to the Internet, up by 1.9 points in one year. Moreover, 10.1% of French households had a multimedia gateway (OTT box or key) in 2017, versus 7.3% in In 2017, wired networks (ADSL, optical fiber, cable) became the most common means of television reception in France. In the 2 nd quarter of 2017, 54.4% of French households equipped with a television set received television over ADSL, fiber or cable (+3.3 points compared to the 2 nd quarter of 2016) according to the CSA, 52.4% by the terrestrial network (-3.5 points) and 23.1% by satellite (+1.0 points). In 2017, wired networks (ADSL, optical fiber, cable) became the most common means of television reception in France. Fewer than a million video players were sold in 2017 In 2017, the sales volume for video players (DVD and Blu-ray players) slumped to a new low. With 0.9 million units sold for all products combined, sales decreased by 18.1% compared to Sales of DVD players fell 16.7% to 0.4 million units, sales of Blu-ray players were down 19.9% at 0.4 million units and sales of portable video players dropped 17.1% to 0.2 million units. In 2017, 65.0% of French households possessed a DVD player (-5.0 points compared to 2016) and 28.8% had a Blu-ray player (+0.3 points). In parallel, the share of households with a home cinema was down for the fifth consecutive year (12.5% in 2017). Ownership of smartphones has overtaken that of personal computers In 2017, sales volumes of smartphones were down for the second year in a row. But the smartphone remained the top selling audiovisual product, with sales of 19.4 million units in 2017, compared with 20.2 million units in In 2017, 77.8% of individuals aged 11 and over had a smartphone (+5.3 points compared to 2016) and 52.3% had a 4G smartphone (+12.1 points), offering faster downloads than 3G units. For the first time, the total number of households with 8 results 2017

9 smartphones was higher than that of households with computers (-0.3 points to 76.2% in 2017). According to GfK, smartphone sales should slide to 19.2 million units in % of French households had a games console in % of French households had a tablet in 2017, compared with 43.5% in Tablet sales dropped for the third year in a row to 3.3 million units in 2017 (4.1 million in 2016). In 2018, the volume of tablet sales is expected to decline further to 2.9 million units according to GfK. In parallel, households with game consoles (all types) amounted to 52.4% of all French households in 2017 (52.0% in 2016). It stood at 48.0% for home consoles (+1.9 points) and 27.1% for handhelds (-2.7 points). French household audiovisual equipment millions of households equipped % of households TV set connectable TV DVD player¹ Blu-ray player¹ home cinema computer video game console tablet smartphone² ¹ All types (home player, video game console, computer, etc.). ² % of individuals aged 11 and over. Source: GfK - Connected equipment reference. Sales of audio-visual equipment (millions of units) ,2 20,6 20,2 19,4 15, ,5 13,5 10 8,5 8,7 7,5 7,7 6,7 5,9 6,0 6,2 6,2 6,5 5,2 4,2 4,5 5 3,6 3,4 5,6 5,8 5,4 3,0 3,6 4,1 5,1 3,3 1,8 2,5 1,8 1,5 0,7 1,2 1,1 0,9 0 0,4 1, TV set video player smartphone tablet Source: GfK. results

10 Audiovisual habits in France: television and the Internet The mobile phone was the main medium for Internet consumption According to Médiamétrie, in 2017, 82.9% of French people aged 2 and over used the Internet. Since 2016, the use of the Internet on mobile screens (tablets, telephones) has overtaken use on computers. In October 2017, 67% of Internet connections were made on tablets and phones. Every day, 30.3 million people connect to the Internet from a mobile phone, 23.8 million from a computer and 13.5 million from a tablet. The mobile phone represented 40% of the time spent on the Internet in In 2017, individuals aged 2 and over spent 1h28 per day on the Internet on a computer, a tablet or a telephone, while 15 to 24 year-olds spent 1h38. In the age bracket of 2 and up, the mobile phone represented 40% of the time spent on the Internet, against 38% for the computer and 22% for the tablet. Among year olds, the mobile phone represented 65% of the time spent on the Internet, versus 22% for the computer and 13% for the tablet. TV programs represented 91% of audiovisual consumption on all screens for French people aged 15 and over In 2017, the average daily television viewing time (3h42) was more than two and a half times longer than the time spent on the Internet (1h28) for the general public as a whole. On the other hand, the time spent on the Internet (1h38) was, for the first time, longer than the duration of television viewing (1h26) among year olds. The share of TV programs in total French TV/video consumption was dominant, but on the decline. Individuals aged 15 and over spent 91% of the total time spent on television and videos on all types of screens (TV sets, computers, tablets, telephones) watching TV programs (-2 points versus 2015), 2% on VoD/SVoD programs (+1 point) and 7% on other videos on the Internet (+1 point). 15 to 24 year-olds spent 68% of the time watching TV programs (-9 points) versus 8% on VoD/SVoD (+5 points) and 24% on other videos on the Internet (+4 points). Breakdown of TV/video consumption by types of program (%)¹ VoD/SVoD² 2% (+1 pt) 15 years and over year-olds other videos on the Internet 7% (+1 pt) other videos on the Internet 24% (+4 pts) TV programs 91% (-2 pts) ¹ Estimate on all screens (TV, computer, tablet, and phone). ² Video on demand/subscription video on demand. Source: Médiamétrie. VoD/SVoD² 8% (+5 pts) TV programs 68% (-9 pts) 10 results 2017

11 Methodology The CNC regularly monitors the use of video sharing sites on the Internet through a monthly online survey conducted by Vertigo of 1,000 people aged 15 and over. Music video clips are the most popular genre of program on sharing sites Video sharing sites, such as YouTube and Dailymotion, account for the greatest share of video consumption on the Internet (excluding the sites of television channels). In 2017, 69.9% of websurfers aged 15 and over declared that they had already viewed videos on this type of site (-1.4 points compared to 2016). This proportion rises to 93.0% in the 15 to 24 age bracket (+1.9 points), compared to 82.3% amongst 25 to 34 year-olds (-1.5 points), 72.5% for yearolds (+0.9 points) and 56.9% amongst people aged 50 and over (-1.0 points). Music video clips were the most popular genre of program on sharing sites. 43.1% of the users of these sites declare that they view this type of content. Humor videos ranked second (33.2%), followed by tutorials (29.3%), movie trailers (21.5%) and amateur videos (21.2%). Types of programs watched on Internet video sharing sites in 2017 (% of users, trend in points compared to 2016) music video clips humor videos tutorials movie trailers amateur videos documentaries excerpts from TV programs news sports excerpts from movies cartoons video games American TV series French TV series advertising videos other 43,1 (-0,7 pt) 33,2 (-1,4 pt) 29,3 (+2,1 pts) 21,5 (-1,1 pt) 21,2 (-1,9 pt) 17,5 (+0,8 pt) 14,4 (+0,6 pt) 14,3 (+2,1 pts) 12,6 (+0,2 pt) 10,2 (-0,7 pt) 8,1 (stable) 7,4 (+0,1 pt) 6,2 (-0,6 pt) 5,2 (-0,2 pt) 2,6 (-0,1 pt) 10,5 (+0,6 pt) 0,0 10,0 20,0 30,0 40,0 50,0 Source: Vertigo. The share of the audience watching tutorial and information videos on video sharing sites rose, whereas the share fell for amateur videos. results

12 2. CINEMA 12 results 2017

13 2.1. Attendance at movie theaters 2017 key figures: million admissions (-1.8% compared to 2016) of which: 77.1 million for French films (+2.0% on 2016), i.e. a market share of 37.4% million for American films (-8.8% on 2016) i.e. a market share of 49.2% 27.6 million for other nationalities (+18.8% on 2016) i.e. a market share of 13.4% Methodology In order to analyze cinema attendance in more detail, three distinct program scopes were retained: feature films, short films and non-feature films (recordings of live shows and audiovisual programs). Some analyses are presented on all programs, others strictly on feature films. Revenues include all taxes (incl. VAT). The average revenue per admission (ARA) is found by dividing the box office receipts by the paid admissions, as declared by the exhibitors. The ARA takes into account both paid admissions (other than unlimited subscriptions) and actual admissions through these subscriptions, for which the revenues are valued based on the reference price ( 5.08 since October 2017 for Gaumont-Pathé and 5.23 since February 2016 for UGC). A level of admissions that remains high With million tickets sold in metropolitan France in 2017, the third highest level in 50 years, paid admissions in movie theaters slid by 1.8% on For the fourth year in a row, the threshold of 200 million admissions was crossed. The 2017 attendance level was well above the average recorded for the last 10 years (205.1 million). Since January 1 st, 2016, movie theaters in French overseas departments have been subject to TSA (tax on movie theater admissions) and must, therefore, declare their attendance figures to the CNC. In 2017, 3.7 million admissions were recorded in the French overseas departments. In 2017, attendance at movie theaters in France remained the highest in the European Union. Contrasts exist between the trends in cinema attendance on the markets in Europe. It rose in Germany (+1.0%) and the United Kingdom (+1.4%), while it declined in Italy (-12.9%) and to a lesser extent in Spain (-1.6%) million admissions in 2017 (-1.8% compared to 2016). Virtually stable revenues In 2017, movie theater box office receipts totaled 1,380.6 million (-0.6%), which was the second highest result of the decade after 2016 ( 1,388.6 million). Revenues excluding taxes (VAT and tax on movie theater admissions) amounted to 1,156.7 million in 2017 compared to 1,163.4 million in Average revenue per admission of 6.59 In 2017, the decline in revenues was less than that for admissions. As a result, average revenue per admission (ARA) on paid admissions increased by 1.2% compared to 2016 to reach 6.59 incl. taxes in The ARA excluding taxes (excl. VAT and tax on movie theater admissions) amounted to 5.52 in 2017 vs in 2016 (+1.2%). results

14 The average revenue per admission was 6.59 excl. taxes (+1.2% compared to 2016). The threshold of 8 million showings once more exceeded In 2017, film programming exceeded the threshold of 8 million showings for the second consecutive year. In fact, 8.2 million paid showings were organized in movie theaters in 2017 (+1.8% on 2016). Over the period , the number of showings increased by 24.0%. Over 98% of admissions generated by feature films In 2017, feature films accounted for 98.9% of the showings. They generated million admissions (-1.9% compared to 2016) and 1,357.9 million in revenues (-0.6%) or 98.3% of admissions and 98.4% of total revenues. In 2017, the average revenue including taxes per admission to feature films was 6.60 ( 6.51 in 2016). Relative stability of non-feature-film admissions Nationally, non-feature films (broadcasting of operas, concerts, sporting events, etc.) occupied a very marginal place in theaters: 0.2% of showings, 0.4% of admissions and 0.9% of total revenues in This genre represented fewer than 760,000 admissions in 2017 (+0.8%), while the corresponding revenues totaled 12.1 million (+2.1%). In 2017, the average revenue including taxes per admission to non-feature films was ( in 2016). In 2017, the top three performances were achieved by recordings of plays by the Comédie Française: Scapin the Schemer (58,678 admissions), Cyrano de Bergerac (46,203 admissions) and the Misanthrope (38,895 admissions). Significant rise in attendance at showings of short films Programs comprising exclusively short films accounted for 1.0% of showings and a total of 2.77 million admissions (+1.6% on 2016) and 10.6 million in revenues (+3.4%). The average revenue including taxes per admission to short film programs was 3.83 in 2017 ( 3.77 in 2016). 8.2 million showings were organized in theaters in 2017 (+1.8% on 2016). Movie attendance 1 admissions (in millions) box office receipts 2 ( millions) average revenue per admission 2 ( ) Showings (millions) , , , , , , , , , , dev. 17/16-1.8% -0.6% +1.2% +1.8% 1 Provisional data for Revenues inclusive of tax (incl. VAT). Base: all programs (feature films + short films + non-feature films). Source: CNC. 14 results 2017

15 Attendance for feature films in theaters 1 admissions (in millions) box office receipts 2 ( millions) average revenue per admission 2 ( ) showings (millions) , , , , , , , , , , dev. 17/16-1.9% -0.6% +1.2% +1.8% 1 Provisional data for Revenues inclusive of tax (incl. VAT). Base: feature films. Source: CNC. 2.0% increase in attendance for French films In 2017, French films generated 77.1 million admissions, or 2.0% more than in But this figure was below the average for the last 10 years (78.3 million). In 2017, the market share of French films increased to 37.4% (vs. 36.0% in 2016). Over the past ten years, the market share of French films was 38.7%. More than 100 million admissions for American films for the third year in a row American films recorded million admissions (-8.8% compared to 2016). This result remained significantly higher than the average over the past 10 years (97.6 million). The market share of American films was 49.2% in 2017 (-3.7 points on 2016), and was also higher than the average over the last 10 years (53.7%). 17 American films recorded over 2 million admissions in 2017 (18 in 2016). Increase in attendance for other films Admissions to non-french European films jumped 13.1% in 2017 to 21.8 million. Their market share increased by 1.4 points to 10.6% in This rise was mainly due to the success of British films (+31.0%). In 2017, five British films passed the million admission threshold compared to four in The attendance record for a British film in 2017 was set by Dunkirk (2.55 million). Attendance for Spanish films fell significantly (-43.5%) and that for German films even more sharply (-75.3%). Admissions achieved by non-european and non-american films rose 47.4% to 5.7 million in 2017, for a market share of 2.8% (1.8% in 2016). Dunkirk, 1 st non-french European film in terms of admissions in results

16 Admissions based on the country of origin of feature films 1 (millions of ) dev. 17/16 French films % 100% French % majority French % minority French % American films % European films % German % British % Spanish % Italian % films of other countries of origin % total % 1 Provisional data for Base: feature films. Source: CNC. Breakdown of admissions according to the country of origin of feature films 1 admissions) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 43,4 45,5 1 Provisional data for Base: feature films. Source: CNC. 1,7 3,3 1,4 2,2 3,6 4,7 4,8 3,5 1,8 2,8 9,4 9,8 14,8 10,6 13,0 7,5 5,9 9,7 9,2 10,6 50,0 47,9 36,9 35,9 46,2 43,0 54,0 41,0 40,5 33,8 44,9 44,5 51,2 52,9 49,2 35,7 36,0 37, French films American films European films films of other countries of origin (% of Increased revenues for French films In 2017, French films achieved million in box office receipts (+4.3% compared to 2016), American films million (-7.9%), non-french European films million (+14.2%) and films from other countries 33.6 million (+58.1%). French films captured 36.2% of revenues and 37.4% of admissions for feature films in The market share for American films stood at 50.7% of revenues and 49.2% of admissions in The market share differential between revenues and admissions is explained by the existing difference between average revenue per admission including tax for French films ( 6.38 in 2017) and that for American films ( 6.80 in 2017). In addition, the majority of films shown in 3D, whose ticket price is higher, were American (28 of the 37 films released in 3D in 2017). 16 results 2017

17 Revenue based on films' country of origin 1 (millions of ) dev. 17/16 French films % American films % European films % other films % total 1, , , , , , , , , , % 1 Provisional data for Base: feature films. Source: CNC. Breakdown of revenues by films' country of origin 1 (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1,5 3,1 1,2 1,9 3,5 4,7 5,0 3,5 1,6 2,5 9,2 9,5 14,6 10,6 12,8 7,7 5,5 9,3 9,2 10,6 44,0 46,4 51,8 47,6 50,2 44,6 55,6 53,4 54,7 50,7 45,3 35,7 39,8 34,0 39,0 43,1 31,9 33,8 34,5 36, French films American films European films other films 1 Provisional data for Base: feature films. Source: CNC. Almost 8,000 films in movie theaters The total selection of films on French screens was extensive with 7,899 films shown in 2017 compared to 7,790 in 2016 (+1.4%). 693 feature films were screened for the first time on French screens in 2017 (716 in 2016), i.e. -3.2%. They accounted for 92.2% of all feature film admissions recorded during the year (91.7% in 2016). 37 new released films projected in 3D In 2017, 37 new released films were entirely or partially released in 3D (versus 46 in 2016). The 3D screening of these new released films generated million admissions and million in revenues in 2017, representing 17.1% of total admissions and 21.8% of total revenues respectively for the films concerned. In 2016, the 46 new films released entirely or partially in 3D generated 17.5 million admissions and million in revenues, representing 26.5% of total admissions and 32.5% of the total corresponding revenues. results

18 Results of new released films and re-released films 1 (% of admissions to feature films) films released in the year films released the previous year other films Provisional data for Base: feature films. Source: CNC. total A concentration of admissions below the average of the last 10 years After a significant decline in 2016, the concentration of admissions on a few titles rose slightly in The 10 best-performing films accounted for 20.3% of annual admissions in 2017 (19.1% in 2016), which is below the average of 23.5% over the past ten years. For French films, the concentration of admissions on the best-performing titles also tended to increase slightly. The 10 best-performing French films generated 33.8% of the total admissions of French feature films in 2017, compared to 32.6% in 2016 and 39.1% on average over the period. Results of the most successful films 1 (% of admissions to feature films) 18 results 2017 top 10 top 20 top 30 top 50 top Provisional data for Base: feature films. Source: CNC. Two French films totaled more than 4 million admissions 56 films broke through the one-million-ticket threshold in 2017 vs. 53 in films generated more than two million admissions in 2017 (26 in 2016) and fours films achieved more than four million admissions (three in 2016). 18 French films achieved more than one million admissions in 2017, as in Five French films crossed the threshold of two million admissions (six in 2016). Two French films had more than four million admissions in 2017 (one in 2016): the comedy R.A.I.D., Special Unit and the science fiction film Valerian and the city of a thousand planets.

19 At the same time, 32 American films recorded more than one million admissions in 2017 (31 in 2016), 17 of which exceeded the threshold of two million (18 in 2016). Two American films achieved more than four million admissions in 2017 (as in 2016): the animated film Despicable Me 3 and the science fiction film Star Wars: The Last Jedi. In 2017, five non-french European films crossed the million ticket threshold, compared with four in Nine non-french European films achieved more than 500,000 admissions in 2017 (six in 2016). Among the successes of 2017 were five British titles Dunkirk, Wonder Woman (film available in 3D), Seven Sisters, Kingsman: The Golden Circle (film available in 3D) and Justice League (film available in 3D). Only one non-european, non-american title achieved more than one million admissions in 2017 (none in 2016). This was the Australian film Lion (1.79 million admissions). Feature films reaching an admission threshold 1 all films more than 4 million more than 2 million more than 1 million more than 500,000 more than 100, French films American films Provisional data for Base: feature films. Source: CNC. results

20 R.A.I.D., Special Unit, 1 st French film in terms of admissions and 3 rd in the general rankings in A French comedy in the top three in 2017 In 2017, the first place at the box office was taken by Despicable Me 3 with 5.74 million admissions. The American science fiction film Star Wars: The Last Jedi, took second place in the 2017 rankings, with 5.35 million admissions. The French comedy R.A.I.D., Special Unit, occupied third place with 4.56 million admissions. In 2017, the three most successful films accounted for 15.7 million admissions, or 7.6% of the annual total for feature films. In 2016, the three films with the most admissions accounted for 6.6% of the annual admissions for feature films. Among the 56 films that achieved more than one million admissions in 2017, 26 were partially or fully in 3D. Despicable Me 3, 1 st in the rankings of films in Feature films that generated more than one million admissions in 2017 rank title country of origin 1 release date admissions (in millions) 1 Despicable Me 3 US 7/5/ Star Wars: The Last Jedi US 12/13/ R.A.I.D., Special Unit FR 2/1/ Valerian and the City of the Thousand Planets FR 7/26/ Baby Boss US 3/29/ Fast and Furious 8 US 4/12/ Sing US 1/25/ Alibi.com FR 2/15/ Pirates of the Caribbean: Salazar's Revenge US 5/24/ Beauty and the Beast GB / US 3/22/ Coco US 11/29/ Guardians of the Galaxy Vol 2 US 4/26/ Fifty Shades Darker US 2/8/ C'est la vie! FR 10/4/ War for the Planet of the Apes US 8/2/ La La Land US 1/25/ Cars 3 US 8/2/ Dunkirk GB 7/19/ Marry Me, Buddy FR 10/25/ Thor Ragnarok US 10/25/ Spider Man: Homecoming US 7/12/ Logan US 3/1/ It US 9/20/ Wonder Woman GB 6/7/ See You Up There FR 10/25/ l'ecole buissonniere FR 10/11/ Seven Sisters GB 8/30/ Smurfs: The Lost Village US 4/5/ Lion AUS 2/22/ Split US 2/22/ results 2017

21 rank title country of origin 1 release date admissions (in millions) 31 Kingsman: The Golden Circle GB 10/11/ Justice League GB 11/15/ Christmas & Co. FR / BE 12/6/ Kong Skull Island US 3/8/ Baywatch US 6/21/ Transformers: The Last Knight US 6/28/ Il a deja tes yeux FR 1/18/ The Mummy US 6/14/ Jumanji: Welcome to the Jungle US 12/20/ Un sac de billes FR / CA 1/18/ Paddington 2 FR 12/6/ Rock n Roll FR 2/15/ Patients FR 3/1/ Alien Covenant US 5/10/ Blade Runner 2049 US 10/4/ Annabelle: Creation US 8/9/ Get Out US 5/3/ Two Is a Family FR / GB 12/7/ Sahara FR / CA 2/1/ The Climb FR 1/25/ Rogue One: A Star Wars Story US 12/14/ Ferdinand US 12/20/ Le Brio FR 11/22/ With open arms FR / BE 4/5/ Ghost In The Shell US 3/29/ Moana US 11/30/ AUS: Australia / BE: Belgium / CA: Canada / FR: France / GB: United Kingdom / US: United States. Source: CNC. Three films with more than five million admissions since January 2016 Since January 2015, five films have generated more than five million admissions: Star Wars: Episode 7, the Force Awakens, Minions and Jurassic World. In all, during the past two years, 25 films have generated more than three million admissions, including five French films (25 films including eight French films between January 2014 and December 2015). Films that generated more than three million admissions between January 2016 and December 2017 title country of origin 1 release date admissions (in millions) 1 Despicable Me 3 US 7/5/ Moana US 11/30/ Star Wars: The Last Jedi US 12/13/ Rogue One: A Star Wars Story US 12/14/ Zootopia US 2/17/ Les Tuche 2 FR 2/3/ R.A.I.D., Special Unit FR 2/1/ Valerian and the City of the Thousand Planets FR 7/26/ Fantastic Beasts GB 11/16/ results

22 10 Baby Boss US 3/29/ Fast And Furious 8 US 4/12/ The Revenant US 2/24/ Deadpool US 2/10/ The Secret Life Of Pets US 7/27/ The Jungle Book US 4/13/ Sing US 1/25/ Alibi.com FR 2/15/ Pirates of the Caribbean: Salazar's Revenge US 5/24/ Ice Age: Collision Course US 7/13/ Beauty and the Beast GB / US 3/22/ Finding Dory US 6/22/ Coco US 11/29/ Camping 3 FR 6/29/ Two Is a Family FR / GB 12/7/ Guardians of the Galaxy Vol 2 US 4/26/ FR: France / GB: Great Britain / US: United States. Source: CNC. Methodology The results of the films by genre only refer to first-run releases. Consequently, their contribution should be compared to the market share of new released films. Decline in the market share of comedy films Comedy films traditionally generate the largest share of admissions in France. The offer of comedies was especially rich in comedies were released for the first time on French screens in 2017, representing 12.8% of the total offer of first-run films (111 films and 15.5% in 2016). The genre attracted 17.2% of admissions in 2017 (35.4 million), compared to 21.8% in comedies recorded more than one million admissions (13 in 2016) and three broke through the two-million threshold (six in 2016). French comedies generated a substantial share of admissions for the genre, at 91.7% in 2017 (85.8% in 2016). Of the three comedies recording more than two million admissions in 2017, all were French. Comedy, an essential genre of French films. 31 million admissions for animation In 2017, the selection of animated films was relatively stable with 36 new released titles (35 in 2016). Animation generated, on average, more admissions per film than most other genres. They accounted for 5.2% of new released films in 2017 and 15.1% of admissions, or 30.9 million (-8.6%). Three American animated films were among the top ten films in 2017: Despicable Me 3, Baby Boss and Sing. Nearly 3 million admissions for documentaries The selection of first-run releases of documentary films rose slightly in 2017 to 120 films, compared to 118 titles in They accounted for 17.3% of first-run releases (16.5% in 2016) and generated 1.4% of admissions in 2017, or 2.9 million (3.3 million in 2016). The French film l Empereur was the documentary that achieved the most admissions in 2017 (0.26 million). 22 results 2017

23 Breakdown of admissions according to film genre 1 (first run releases of feature films) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 58,0 55,9 60,8 62,2 60,2 65,0 60,7 60,4 67,6 66,3 28,2 32,0 22,1 22,1 26,2 21,8 19,9 27,0 16,5 17,2 1,5 2,3 0,6 0,9 1,6 1,1 1,6 1,4 0,9 1,0 14,3 14,8 15,1 9,1 12,7 13,4 11,4 14,7 16,1 15, Calculated only on films released for the first time during the year or 90% to 94% of attendance according to the year. Provisional data for Base: first run releases of feature films. Source: CNC. animated films documentaries comedies other films Decline in admissions for recommended Art House films In 2017, the downward trend in feature film admissions (-1.9%) was sharper for recommended Art House films. In fact, their admissions declined 15.4% to 40.0 million in Their share of total attendance was 19.4% in 2017 (22.5% in 2016), i.e. the lowest level of the decade. This decrease in attendance of recommended Art House films was partly due to the decline in the number of recommended films: 4,340 recommended Art House films were screened in France in 2017 (4,356 in 2016), including 322 new released films (374 in 2016). Four recommended Art House films achieved more than one million admissions in 2017 (six in 2016), including an American film (La la land), a British film (Dunkirk) and two French films (See you up there and Patients). La la land was the recommended film which recorded the most admissions in 2017 (2.75 million). In 2016, the recommended film that achieved the most admissions was the Revenant (3.84 million). La La Land, 1 st recommended Art House film in terms of admissions in In 2017, 55.9% of the admissions recorded by recommended films concerned French films (54.6% in 2016). 2,083 recommended French Art House films were shown on French screens in 2017, compared to 2,052 in 2016 (+1.4%). They totaled 22.3 million admissions in 2017 (25.8 million in 2016), a decrease of 13.4%. See you up there was the French Art House film which achieved the most admissions in 2017 (1.98 million). In 2016, Irreplaceable was the French Art House film which achieved the most admissions (1.51 million). See you up there, 1 st recommended French Art House film in terms of admissions in 2017 with nearly 2 million admissions. results

24 915 recommended American films were exhibited in 2017, compared to 952 in 2016 (-3.9%). They totaled 8.9 million admissions (-33.8% compared to 2016). American films accounted for 22.3% of admissions of recommended films (28.4% in 2016). Admissions based on the recommendation of feature films 1 (in millions) Art House films non-recommended films total dev. 17/ % +2.1% -1.9% 1 Provisional data for Base: feature films. Source: CNC. Breakdown of admissions depending on recommendation of films 1 (%) 100,0 90,0 80,0 70,0 60,0 78,6 72,2 73,5 75,5 77,7 73,7 78,6 79,5 77,5 80,6 50,0 40,0 30,0 20,0 10,0 21,4 27,8 26,5 24,5 22,3 26,3 21,4 20,5 22,5 19,4 0, Art House films non-recommended films 1 Provisional data for Base: feature films Source: CNC. The share of original versions remained stable In 2017, 15.7% of admissions were generated by films shown in their original foreign language version (15.8% in 2016), which was the lowest recorded figure of the decade. In absolute terms, admissions for films in their original foreign version dipped 2.3% to 32.9 million admissions in A first quarter in which admission levels remained high 2017 was marked by a particularly strong first quarter at 60.9 million admissions (-2.5% compared to the first quarter of 2016), which is higher than for the fourth quarter. This phenomenon only occurred once more during the period. Five of the top 10 films in 2017 came out in the first quarter: R.A.I.D., Special Unit (released on February 1 st million admissions), Baby Boss 24 results 2017

25 (released March million admissions), Sing (released January million admissions), Alibi.com (released February million admissions) and Beauty and the Beast (released March million admissions). Attendance in the last quarter of 2017 was relatively low, down 6.5% from 2016, at 59.0 million admissions. This end of the year was nevertheless marked by the releases of Star Wars: The Last Jedi (released December million admissions) and Coco (released November million admissions). It should be noted that attendance in the third quarter increased significantly between 2016 and 2017 to 45.4 million (+5.1%). Despicable Me 3 (released July million admissions), 1 st in the ranking of films, and Valerian and the city of a thousand planets (released July million entries) partly explain the rise. Monthly admissions 1 (millions) dev. 17/16 January % February % March % April % May % June % July % August % September % October % November % December % total % 1 Provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC. For the second time in 10 years, admissions in the first quarter were higher than those in the fourth quarter. Seasonality of attendance 1 (millions of admissions) January February March April May June July August September October November December 2017 avg Provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC. results

26 More than half of admissions on the weekend Movie-goers still prefer to go to the cinema at the weekend. In 2017, 54.0% of admissions occurred between Friday and Sunday, vs. 53.9% in Wednesdays accounted for 13.1% of admissions (13.0% in 2016). The share of admissions recorded on Fridays decreased by 0.4 points to 12.8%. The concentration of revenues remained high. In 2017, 55.9% of revenues were achieved between Friday and Sunday (as in 2016). Wednesdays represented 12.7% of revenues in 2017, versus 12.5% in Tuesdays accounted for 11.4% of revenues in 2017, a lower share than that of admissions (12.2%). This is explained by the promotions cinema operators offer at the beginning of the week. Breakdown of admissions and revenues by day 1 (%) admissions Monday Tuesday Wednesday Thursday Friday Saturday Sunday total revenues Monday Tuesday Wednesday Thursday Friday Saturday Sunday total Provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC. Drop in attendance in large cities In 2017, the decline in attendance did not impact the entire territory in the same way. Admissions to movie theaters in Ile-de-France fell 1.3% to 54.5 million, while those to movie theaters in other regions fell 2.0% to million. In 2017, attendance was stable in smaller towns and cities. 26 results 2017

27 Admissions by geographic zones 1 (millions) Ile-de- France Paris inner suburbs (92, 93, 94) outer suburbs (77, 78, 91, 95) other regions urban units> 100,000 inhabitants. urban units 20, ,000 inhabitants. other towns and urban areas total for France dev. 17/16-1.3% -1.2% -1.6% -1.4% -2.0% -3.2% -0.3% -0.0% -1.8% 1 Provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC/INSEE census. Breakdown of admissions by region 1 (%) 100,0 90,0 80,0 10,5 9,9 9,7 10,2 9,8 9,7 10,5 10,9 11,2 11,4 16,8 16,7 16,9 17,6 17,6 17,7 18,7 19,7 20,0 20,3 70,0 60,0 50,0 43,9 44,4 45,2 44,4 44,2 44,0 43,4 43,2 42,8 42,2 40,0 30,0 20,0 10,0 0,0 7,1 7,3 7,3 7,3 7,3 7,3 7,2 6,9 6,8 6,8 7,6 7,6 7,5 7,4 7,6 7,7 7,7 7,7 7,7 7,8 14,1 14,0 13,4 13,0 13,4 13,7 12,6 11,7 11,3 11, Provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC/INSEE census. Paris inner suburbs (92, 93, 94) outer suburbs (77, 78, 91, 95) urban units> 100,000 inhabitants. urban units 20, ,000 inhabitants. Highest level of market share of admissions for 10 years in cities with fewer than 100,000 inhabitants and rural areas in admissions per inhabitant in 2017 In 2017, average cinema admissions amounted to 3.26 admissions per inhabitant in France, vs in This index remained stronger in the capital (10.82), which draws in many movie- results

28 goers from the outer suburbs. In 2017, the attendance index declined in all geographical areas. Its decline was, however, more marked in urban units with 100,000 inhabitants and over (-0.15 points) and in Paris (-0.13 points). Attendance index by geographic zones 1 Ile-de- France Paris inner suburbs (92, 93, 94) outer suburbs (77, 78, 91, 95) other regions urban units> 100,000 inhabitants. urban units 20, ,000 inhabitants. other towns and urban areas total for France Provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC/INSEE census. Rise in admissions at 5.00 Cinema operators practice a large range of prices. A large proportion of tickets were sold between 5 and 7. In 2017, 46.4% of the paid admissions were sold (or valued) between 5 and 7, vs. 43.5% in In 2017, 19.6% of the tickets sold were priced less than 5 (22.6% in 2016). In 2014, the " 4 for under 14s" operation set up by movie theaters had boosted the share of the cheapest admissions. This price was revised upwards to 4.50 in some movie theaters in 2015 and to 5.00 in It is no longer exclusively for children under 14 years old. In 2017, 13.8 million admissions were sold at 4 (14.7 million in 2016, -6.2%), 8.5 million at 4.50 (14.8 million in 2016, -42.7%) and 19.4 million at 5.00 (13.5 million in 2016, +43.2%). In 2017, million admissions were registered as part of unlimited subscription schemes (see reference price p.17), representing +3.2% on 2016 and 8.2% of global attendance (7.8% in 2016). More than 10% of admissions at over 10 Tickets sold at 10 or more represented 22.0 million admissions in 2017, up 1.4%, in a context where overall attendance fell by 1.8%. They accounted for 10.5% of total admissions in 2017 (10.2% in 2016). The number of tickets sold between 20 and 30 increased significantly (+37.1% compared to 2016) to reach 254,275 admissions. Slight increase in free admissions It should be noted that the annual movie attendance is increased by a certain number of free admissions. In 2017, 5.1 million free admissions were recorded, bringing the total attendance of theaters to million. Free admissions represented 2.4% of all admissions in In 2016, 5.0 million free admissions were counted (2.3% of the total), which brought the total attendance to million admissions. By including the free admissions, the ARA including tax stood at 6.44 in 2017 ( 6.36 in 2016). 28 results 2017

29 5.1 million free admissions in Breakdown of admissions by the ticket sales price 1 (%) less than to to to to to to to and more total Excluding free admissions. Provisional data for Base: all programs (feature films + short films + non-feature films). Source: CNC 40.4% of the box office receipts kept by the exhibitor Box office receipts are subject to two taxes: VAT at a reduced rate (5.5% until the end of 2011, 7.0% in 2012 and 2013, and a return to 5.5% since 2014) and the special additional tax (TSA) that feeds into the CNC support fund (10.72%). Net of these taxes, the revenue (called the film base) is shared between the operator and the distributor, based on a rental rate negotiated by mutual agreement for each film and each establishment. The distributor's remuneration is calculated by multiplying the rental rate by the "film base." In 2017, the average rental rate stood at 47.1% (47.2% in 2016). SACEM collects at the same time remuneration for the public performance of the film's music. Pursuant to an agreement between the Fédération Nationale des Cinémas Français (FNCF) and SACEM, the operator remunerates SACEM based on the following percentages: 1.515% of the "film base" when the operator is a member of the FNCF and 2.02 % of the "film base" when the operator is not a member. For the distribution of the box office receipts as it is calculated in this document, a single percentage is applied (1.515%). In 2017, 42.3% of the box office receipts paid by each spectator was donated to the film distributor and 40.4% was retained by the exhibitor. An average rental rate of 47.1% in results

30 Distribution of box office receipts ( millions) box office receipts 1, , , , , Tax on cinema tickets VAT Sacem earnings (before tax) 1, , , , , distributors' remuneration operators' remuneration (%) box office receipts Tax on cinema tickets VAT Sacem distributors' remuneration operators' remuneration Rental rates % 46.9% 47.0% 47.2% 47.1% 1 Provisional data for % of the box office receipts excluding VAT and excluding tax on cinema tickets. 3 all taxes included 7.0% VAT in , 10.0% since operators' remuneration = box office receipts - Tax on cinema tickets-vat-sacem-distributors' remuneration incl. taxes. 5 rental rate = (distributor's total receipts excl. taxes + distributor Sacem share)/film base. Base: all programs (feature films + short films + non-feature films). Source: CNC. Also see -the statistical series on the attendance of films in theaters 30 results 2017

31 The 200 largest cinema successes since 1945 rank title film director year of release country of origin 1 admissio ns (in millions) 2 1 Titanic J. Cameron 1998 US Bienvenue chez les Ch'tis (Welcome to the Sticks) D. Boon 2008 FR Intouchables (The Intouchables) E. Tolédano, O. Nakache 2011 FR La Grande Vadrouille G. Oury 1966 FR/GB Gone with the Wind V. Fleming 1950 US Once Upon a Time in the West S. Leone 1969 IT Avatar J. Cameron 2009 US The Jungle Book W. Reitherman 1968 US One Hundred and One Dalmatians W. Disney 1961 US Asterix & Obelix: Mission Cleopatra A. Chabat 2002 FR The Ten Commandments C.B. DeMille 1958 US Ben Hur W. Wyler 1960 US Les Visiteurs J.M. Poiré 1993 FR The Bridge on the River Kwai D. Lean 1957 GB Cinderella W. Disney 1950 US Le Petit Monde de Don Camillo J. Duvivier 1952 IT/FR The Aristocats W. Reitherman 1971 US Qu'est-ce qu'on a fait au Bon Dieu (Serial (Bad) Weddings)? P. De Chauveron 2014 FR The Longest Day Collective 1962 US Le Corniaud G. Oury 1965 FR/IT Lady and the Tramp W. Disney 1955 US The Lion King R. Aller, R. Minkoff 1994 US Bambi W. Disney 1948 US Star Wars: Episode 7, the Force Awakens J. J. Abrams 2015 US Taxi 2 G. Krawczyk 2000 FR Trois hommes et un couffin (A Bag of Marbles) C. Serreau 1985 FR Les Bronzés 3 - amis pour la vie P. Leconte 2006 FR The Guns of Navarone J. Lee Thompson 1961 US La Guerre des boutons (War of the Buttons) Y. Robert 1962 FR Les Misérables J.P. Le Chanois, J.P. Dreyfus 1958 FR/IT Doctor Zhivago D. Lean 1966 US E.T. the Extra-Terrestrial S. Spielberg 1982 US ,000 Leagues Under the Sea R. Fleischer 1955 US The Greatest Show on Earth C.B. DeMille 1953 US Finding Nemo A. Stanton, L. Unkrich 2003 US Harry Potter and the Philosopher's Stone C. Colombus 2001 US Le Dîner de cons F. Veber 1998 FR Le Grand Bleu (The Big Blue) L. Besson 1988 FR L'Ours (The Bear) J.J. Annaud 1988 FR Emmanuelle J. Jaeckin 1974 FR La Vache et le prisonnier H. Verneuil 1959 FR/IT Harry Potter and the Chamber of Secrets C. Colombus 2002 US Asterix & Obelix Take On Caesar C. Zidi 1999 FR/DE/IT West Side Story R. Wise, J. Robbins 1962 US High Sierra R. Walsh 1963 US Le Bataillon du ciel (They Are Not Angels) A. Esway 1947 FR Le Fabuleux Destin d'amélie Poulain J.P. Jeunet 2001 FR/DE Les Choristes (The Chorus) C. Barratier 2004 FR/CH The Dictator C. Chaplin 1945 US 8.37 results

32 rank title film director year of release country of origin 1 admissio ns (in millions) 2 50 For Whom the Bell Tolls S. Wood 1947 US Rien à déclarer (Nothing to Declare) D. Boon 2011 FR/BE Violettes impériales R. Pottier 1952 FR/ES Les Couloirs du temps - les visiteurs 2 J.M. Poiré 1998 FR Un Indien dans la ville (Little Indian, Big City) H. Palud 1994 FR Pinocchio W. Disney 1946 US Ice Age: Dawn of the Dinosaurs C. Saldanha 2009 US Star Wars Episode I: The Phantom Menace G. Lucas 1999 US Tarzan C. Buck, K. Lima 1999 US Le Gendarme de Saint-Tropez J. Girault 1964 FR/IT The Count of Monte Cristo R. Vernay 1955 FR/IT The Sixth Sense M. Night Shyamalan 2000 US Ratatouille B. Bird, J. Pinkava 2007 US The Fifth Element L. Besson 1997 FR La Famille Bélier É. Lartigau 2014 FR Harry Potter and the Goblet of Fire M. Newell 2005 GB A Clockwork Orange S. Kubrick 1972 GB Les Bidasses en folie (Rookies Run Amok) C. Zidi 1971 FR Le Retour de Don Camillo J. Duvivier 1953 IT/FR La Vérité si je mens 2 T. Gilou 2001 FR The Lord of the Rings: The Return of the King P. Jackson 2003 NZ Aladdin J. Musker 1993 US Peter Pan W. Disney 1953 US Jour de fête J. Tati 1949 FR Les Aventures de Rabbi Jacob G. Oury 1973 FR/IT Dances with Wolves K. Costner 1991 US The Rescuers Collective 1977 US Jean de Florette C. Berri 1986 FR Star Wars: Episode 3 - Revenge of the Sith G. Lucas 2005 US Shrek 2 A. Adamson, V. Jenson 2004 US Samson and Delilah C.B. DeMille 1951 US Harry Potter and the Prisoner of Azkaban A. Cuaron 2004 GB Joan of Arc V. Fleming 1949 US The Lord of the Rings: The Two Towers P. Jackson 2002 NZ La Chèvre F. Veber 1981 FR/MX Monsieur Vincent M. Cloche 1947 FR The Magnificent Seven J. Sturges 1961 US Skyfall S. Mendes 2012 GB Si Versailles m'était conté S. Guitry 1954 FR Les Grandes Vacances J. Girault 1967 FR/IT The Lord of the Rings - The Fellowship of the Ring P. Jackson 2001 NZ Le Salaire de la peur H.G. Clouzot 1953 FR/IT Michel Strogoff C. Gallone 1956 FR/IT Le Gendarme se marie J. Girault 1968 FR/IT The Hunchback of Notre Dame K. Wise, G. Trousdale 1996 US Astérix aux Jeux Olympiques F. Forestier, 2008 FR/DE/SP/IT results 2017

33 rank title film director T. Langmann year of release country of origin 1 admissio ns (in millions) 2 96 Mission spéciale M. de Canonge 1946 FR Jurassic Park S. Spielberg 1993 US Fanfan la Tulipe Christian-Jaque 1952 FR/IT The Exorcist W. Friedkin 1974 US The Fox and the Hound A. Stevens 1981 US Goldfinger G. Hamilton 1965 GB Les Trois Frères D. Bourdon, B. Campan 1995 FR Nous irons à Paris J. Boyer 1950 FR Minions P. Coffin, K. Balda 2015 US Manon des sources C. Berri 1986 FR Ice Age: Continental Drift M. Thurmeier, S. Martino 2012 US Sissi E. Marischka 1956 AT Ice Age: The Meltdown C. Saldanha 2006 US Dead Poets Society P. Weir 1989 US Sleeping Beauty W. Disney 1959 US Harry Potter and the Deathly Hallows - Part 2 D. Yates 2011 GB Pirates of the Caribbean: Dead Man's Chest G. Verbinski 2006 US Taxi G. Pires 1998 FR Robin Hood W. Reitherman 1974 US Rain Man B. Levinson 1989 US Star Wars G. Lucas 1977 US Sissi: The Young Empress E. Marischka 1957 AT Raiders of the Lost Ark S. Spielberg 1981 US From Here to Eternity F. Zinnemann 1954 US Arthur and The Invisibles L. Besson 2006 FR La Cuisine au beurre G. Grangier 1963 FR/IT Spider-Man S. Raimi 2002 US La Symphonie pastorale J. Delannoy 1946 FR Ivanhoe R. Thorpe 1952 US The Good, the Bad and the Ugly S. Leone 1968 IT Spider-Man 3 S. Raimi 2007 US Quo Vadis M. Le Roy 1953 US La Gloire de mon père Y. Robert 1990 FR Jaws S. Spielberg 1976 US Le Gendarme et les extra-terrestres J. Girault 1979 FR Indiana Jones and the Last Crusade S. Spielberg 1989 US Harry Potter and the Order of the Phoenix D. Yates 2007 GB Marche à l'ombre M. Blanc 1984 FR Pas si bête A. Berthomieu 1946 FR La Chartreuse de Parme Christian-Jaque 1948 FR The Sword in the Stone W. Reitherman 1964 US Germinal C. Berri 1993 FR/BE Le Père tranquille R. Clément 1946 FR Limelight C. Chaplin 1952 US 6.14 results

34 rank title film director 34 results 2017 year of release country of origin 1 admissio ns (in millions) Oscar E. Molinaro 1967 FR Taxi 3 G. Krawczyk 2003 FR Harry Potter and the Half-Blood Prince D. Yates 2009 GB Harry Potter and the Deathly Hallows - Part 1 D. Yates 2010 GB Terminator 2: Judgment Day J. Cameron 1991 US Midnight Express A. Parker 1978 GB The Gods Must Be Crazy J. Uys 1983 ZA Mourir d'aimer A. Cayatte 1971 FR/IT Who Framed Roger Rabbit R. Zemeckis 1988 US Crocodile Dundee P. Faiman 1987 AU War and Peace K. Vidor 1956 US Les Ripoux C. Zidi 1984 FR The Story of Dr. Wassell C.B. DeMille 1946 US Rambo: First Blood Part II G.P. Cosmatos 1985 US Le Bossu A. Hunebelle 1959 FR/IT L'Aile ou la Cuisse C. Zidi 1976 FR Sissi: The Fateful Years of an Empress E. Marischka 1958 AT Four Weddings and a Funeral M. Newell 1994 GB Mulan T. Bancroft, B. Cook 1998 US Men in Black B. Sonnenfeld 1997 US High Noon F. Zinnemann 1952 US Les Fous du stade (Stadium Nuts) C. Zidi 1972 FR Despicable Me 3 K. Balda, P. Coffin, E. Guillon 2017 US The Third Man C. Reed 1949 GB Thunderball T. Young 1965 GB Andalousie R. Vernay 1951 FR/ES Les Anges gardiens (Guardian Angels) J.M. Poiré 1995 FR Grease R. Kleiser 1978 US Les Valseuses B. Blier 1974 FR La Bataille du rail R. Clément 1946 FR Lawrence of Arabia D. Lean 1963 GB A nous les petites Anglaises M. Lang 1976 FR Notre-Dame de Paris J. Delannoy 1956 FR/IT La Vérité H.G. Clouzot 1960 FR/IT Les Vacances de Monsieur Hulot J. Tati 1953 FR Indiana Jones and the Temple of Doom S. Spielberg 1984 US Matrix Reloaded L. Wachowski, A. Wachowski 2003 US Pirates of the Caribbean: At World's End G. Verbinski 2007 US Pocahontas M. Gabriel, E. Goldberg 1995 US From Russia with Love T. Young 1964 GB Star Wars: Episode 2 - Attack of the Clones G. Lucas 2002 US Le Petit Nicolas L. Tirard 2009 FR/BE Independence Day R. Emmerich 1996 US La Folie des grandeurs G. Oury 1971 FR/DE/ES Quai des Orfèvres H.G. Clouzot 1947 FR 5.56

35 rank title film director year of release country of origin 1 admissio ns (in millions) Le Cerveau G. Oury 1969 FR/IT Moana J. Musker, R. Clements 2016 US Le Petit Baigneur R. Dhéry 1968 FR/IT Shrek the Third C. Miller 2007 US Love Story A. Hiller 1971 US The Incredibles B. Bird 2004 US Le Gendarme à New-York J. Girault 1965 FR/IT Camping F. Onteniente 2006 FR Les Petits Mouchoirs G. Canet 2010 FR L'As des as G. Oury 1982 FR/DE Bathing Beauty G. Sidney 1946 US Quand passent les cigognes M. Kalatosov 1958 RU La Cage aux folles E. Molinaro 1978 IT/FR Napoléon S. Guitry 1955 FR The Adventures of Tintin: The Secret of the Unicorn S. Spielberg 2011 US 5.40 J.P. Le Chanois, J.P. 200 Papa, maman, la bonne et moi 1954 FR 5.37 Dreyfus The films that entered the ranking for the first time in 2017 are shown in bold. 1 AT: Austria / AU: Australia / BE: Belgium / CH: Switzerland / DE: Germany / ES: Spain / FR: France / GB: Great Britain / IT: Italy / MX: Mexico / NZ: New Zealand / RU: Russia / US: United States / ZA: South Africa. 2 Accumulated admissions for films released up to December 31, Source: CNC. results

36 2.2. Distribution 2017 key figures: 7,899 films projected in total of which: 693 new released films (-23 films compared to 2016) 359 French films 124 American films 122 European films 88 films from other countries Methodology First-run feature films in theaters are considered to be new releases in France. Thus, all of the new films include the works that were the object of a national commercial release. The genres appearing in this chapter were collected from the press and on the Internet. Type of new released films 693 new releases of which 51.8% French films and 17.9% American films. 693 first-run releases In 2017, 693 films were released for the first time in commercial theaters in France; in other words, 23 fewer than in This is the second highest level since 1980 (694 films) after 2016 (716 films). 359 French films The number of French films declined by five titles to 359, the second highest level since 1975 (first year of the statistical series on first-run releases) after 2016 (364 films). Of the national films, French-majority co-productions decreased by 21 titles (60 films in 2017, compared to 81 in 2016), and foreign-majority co-productions numbered 27 fewer films between 2016 and 2017, at 48 titles on first-run release % French films were on offer; in other words, 43 more titles than in Approved films represented 70.8% of the overall offer of French films, or 254 films. The number of non-approved French films released in theaters rose by 2.9% compared to 2016, reaching 105 films in % of first-run releases were French in Since 1975, on average, French films have accounted for a 40.5% share of the offer of first-run release films. 124 American films In 2017, American films represented 17.9% of all first-run release films (20.9% in 2016); in other words, the lowest level since The number of American films released for the first time on screens dropped in 2017 to 124 films (-26 titles compared to 2016). Since 1975, the offer of American first-run releases has reached an average of 145 titles each year (26.7% of the total offer). 36 results 2017

37 122 non-french European films The offer of first released non-french European films increased slightly between 2016 and 2017 (+4 titles to 122 films). 36 British films were released for the first time on French screens in 2017, i.e. four fewer titles than in The offer of Italian films (-1 title) and Spanish films (-2 titles) dipped slightly while the offer of German films remained stable. At 88 titles, the number of films from other countries increased (+3 titles). Although the offer of Indian, Chinese and Canadian films declined between 2016 and 2017 (respectively -5 titles, -4 titles and -3 titles), that of Japanese films rose (+6 titles over the period). Number of first-run releases structure trend 17/16 French films % -1.4% 100% French % +20.7% French majority % -25.9% French minority % -36.0% American films % -17.3% European films % +3.4% German % - British % -10.0% Spanish % -18.2% Italian % -12.5% films from other countries % +4.8% Canadian % -25.0% Chinese % -80.0% Indian % -29.4% Japanese % +85.7% total % -3.2% 1 Films fully-, majority- or minority-financed by France. 2 Continental Europe, excluding France. Source: CNC. 120 first-run release documentaries In 2017, the offer of first-run release documentaries rose again to 120 titles, compared to 118 in 2016 (+2 titles). This is the highest number since 1996 (first year of the statistical series on genres of distributed films). 87 documentaries were French, 17 non-french European, 10 American, 4 Canadian, one was Iranian (Starless Dreams) and one Japanese (Bangkok Nites). The first-run documentary offer doubled in the space of ten years. Five French animated films 36 animated films were shown for the first time on French screens in 2017, i.e. one more film than in In 2017, five French animated films were distributed (10 in 2016) of which Sahara and The Jungle Bunch: The Movie. 14 American animated films were released in 2017 including Despicable Me 3 and Cars 3. Nine animated films were European, 6 Japanese, one South Korean (The Nut Job 2) and the last was Mexican (The Greatest Miracle). Eurozoom was the top distributor of new released animated films in 2017, with five films. Gebeka Films, Sony Pictures Releasing, StudioCanal and Twentieth Century Fox distributed three new animated films each. results

38 Drama remained the leading genre with 215 new released films. 31.0% of first-run releases were dramas 215 dramas (of which 107 French and 27 American) were distributed for the first time on French screens (-20 titles compared to 2016). Comedies accounted for 12.8% of new releases in theaters (15.5% in 2016), i.e. 89 films (of which 70 French and 11 American). Genres of first-run release films animation adventure comedy comedy-drama documentary drama fantasy musical crime other genres total Source: CNC. 322 recommended Art House films including 188 French films. More than 47% of new released films were recommended Art House films 46.5% of first-run releases were recommended Art House films in This is the lowest level since 1992 (first year of the statistical series on first-run releases of Art House films). The recommended film offer amounted to 322 titles, which is 52 fewer than in 2016 and the lowest level since 2008 (306 films). In 2017, 52.4% of new French films were recommended Art House (-7.5 points compared to 2016), versus 21.0% of new American films (+0.3 points), 45.9% of new non-french European films (-14.3 points) and 59.1% of new films from other countries (-5.2 points). First-run release Art House films trend 17/16 French films % American films % European films % other films % total % 1 Continental Europe, excluding France. Source: CNC. Nearly 90% of the films had an exhibition license for all audiences. 38 results 2017

39 623 films were classified as suitable for all audiences in 2017 In 2017, 623 films had an exhibition license for all audiences (89.9%) of which 343 French films (95.5% of the offer of French films) and 94 American films (75.8% of the offer of American films). 62 films were subject to a ban on children aged under 12 (including 13 French films and 28 American films) and eight films were banned for under 16 year olds (three French films, two American films, one Dutch film, one Australian film and a Mexican film). No film was banned for under 18 year olds in 2017 (as in 2016). For 59 films, the exhibition license came with a warning, or 9.5% of first-run releases in 2017 (13.3% in 2016). 13 new films every week On average, 58 films were released in theaters each month in 2017, i.e. 13 films a week. Two months witnessed sustained activity: March and November (respectively 10.5% and 12.4% of all the year's releases, or respectively 18 and 22 films per week). July, August and September were the months with the lowest number of releases (respectively 11, 12 and 12 films a week). The busiest weeks in terms of releases in 2017 were those of March 22 and May 10 (18 films each) and the least busy that of May 24 (four films). On average, 30 French films were released each month in 2017 (seven films per week), versus 10 American films (two films per week). French films accounted for 27.3% (July) and 65.3% (September) of monthly releases, versus between 11.5% (June) and 28.6% (February) for American films. Number of films released per month in Continental Europe, excluding France. Source: CNC. French films American films European films1 other films results

40 Showing of new released films Nearly a third of films were distributed in fewer than 20 theaters in the opening week In 2017, 55 films were distributed in 500 or more theaters in the opening week of screening (58 films in 2016) including 27 American films, 22 French films, five British films and one South Korean film (The Nut Job 2). Of these titles, six were distributed in 800 or more theaters in the opening week of screening (as in 2016): Despicable Me 3 (American animated film), Valerian and the city of a thousand planets (French science fiction film), Raid, Special Unit (French comedy), Cars 3 (American animated film), Spider Man: Homecoming (American fantasy film) and Star Wars: The Last Jedi (American science-fiction film). In 2017, 227 films had a limited release (fewer than 20 theaters), compared to 245 in French films and 13 American films were shown in fewer than 20 opening-week theaters. Most documentaries were shown in fewer than 10 opening-week theaters Almost half of the documentaries were distributed in fewer than 10 opening-week theaters in 2017 (54 titles). They comprised 37.2% of films shown in fewer than 10 theaters. 58.3% of animated films screened for the first time in 2017 were shown in 200 or more theaters (21 titles). They accounted for 11.8% of the films shown in 200 or more opening-week theaters. Five Art House films were released in 400 or more opening-week theaters 46 recommended Art House films were distributed in fewer than 10 theaters in 2017 (14.8% of the recommended films). These 46 films represented 31.7% of the films present in fewer than 10 opening-week theaters. Five Art House films were shown in 400 or more opening-week theaters (eight in 2016): Dunkirk (British adventure film), Back to Burgundy (French drama), See you up there (French drama), The Midwife (French drama) and La la land (American musical). First-run releases according to number of opening-week theaters structure trend 17/16 fewer than % +10.1% 5 to % -30.9% 10 to % -6.8% 20 to % -6.8% 50 to % +5.7% 100 to % -4.4% 200 to % +4.2% 500 to % -5.8% 800 and more % - total % -3.2% 1 Theaters showing new released films during the first week of screening. Source: CNC. 40 results 2017

41 On average, a film came out in 145 theaters in its opening week, a French film in 136 theaters and an American film in 294 theaters. On average, 145 theaters per film in the opening week In 2017, the average number of opening-week theaters per film rose. On average, there was one new released film in 145 theaters in 2017 during its opening week of screening, compared to 140 in On average, a French film was distributed in 136 theaters (20 more than in 2016), an approved film in 184 theaters (31 more than in 2016) and a non-approved film in 2016 theaters (two fewer than in 2016). On average, an American film came out in 294 theaters (five fewer than in 2016). The average number of opening-week theaters for a non-french European film increased in 2017 to 99 theaters (90 in 2016). A non-european, non-american film was released, on average, in 37 theaters in 2017 compared to 36 in The film accumulating the highest number of opening-week theaters in 2017 was an American animated film, Despicable Me 3 (962 theaters). In 2016, this honor also went to an American animated film, The Ice Age: Collision Course (896 theaters). In the ranking of the top 10 films, seven are American, two are French and one is British. Most showings for fantasy films and least for documentaries On average, in 2017, fantasy films enjoyed the widest exposure in the first week: 357 theaters. Animated films and adventure films also enjoyed wide releases: respectively 344 and 320 theaters on average. Conversely, documentaries and dramas were shown, on average, in a more limited number of theaters (28 and 73 theaters respectively). Four animated films, three science-fiction films, a comedy (Raid, Special Unit), a fantasy film (Spider Man: Homecoming) and an adventure film (Dunkirk) were in the top 10 films in terms of the number of opening-week theaters in Three times fewer opening-week theaters for Art House films On their release, the number of theaters in which Art House films were distributed was less than a third that for non-recommended films on average. An Art House film was screened in 70 theaters in 2017, versus 223 theaters for a non-recommended film. In 2017, French recommended Art House films were, on average, distributed in 79 theaters in the opening week (71 in 2016), versus 110 theaters for recommended American films (161 in 2016). The top Art House title in terms of number of theaters in the opening week was the British adventure film Dunkirk 9 th ). In 2016, the first Art House film came 44 th. results

42 Average number of opening-week theaters per film trend 17/16 total % country of origin French films % American films % European films % other films % Art House recommended films % non-recommended films % genre animation % adventure % comedy % comedy-drama % documentary % drama % fantasy % musical % crime % 1 Theaters showing new released films during the first week of screening. 2 Continental Europe, excluding France. Source: CNC. The top 10 films in terms of number of opening-week theaters in 2017 title country of origin 1 distributor release date number of theaters W1 2 number of copies 3 Despicable Me 3 US Universal Pictures International 7/5/ Valerian and the City of a thousand planets FR EuropaCorp Distribution 7/26/ R.A.I.D. Special Unit FR Pathé Distribution 2/1/ Cars 3 US Buena Vista International 8/2/ Spider Man: Homecoming US Sony Pictures Releasing 7/12/ Star Wars: The Last Jedi US Buena Vista International 12/13/ ,027 Coco US Buena Vista International 11/29/ War for the Planet of the Apes US Twentieth Century Fox 8/2/ Dunkirk GB Warner Bros 7/19/ Smurfs: The Lost Village US Sony Pictures Releasing 4/5/ FR = France, GB = Great Britain, US = United States. 2 Theaters showing new released films during the first week of screening. 3 source: distributors. Source: CNC. 42 results 2017

43 37 films screened in digital 3D In 2017, 37 new releases were available in 3D (46 films in 2016). 28 were American films, five were European films, three were French films and one was South Korean (The Nut Job 2: Nutty by Nature). 28 films were shown in 3D in 500 theaters or more in the opening week (31 films in 2016). None were shown in fewer than 100 theaters (six in 2016). Of the 37 films released in 3D in 2017, 14 were animated films (15 in 2016), 12 were adventure films (13 in 2016), 10 were fantasy films (14 in 2016) and the last was a British musical film (Beauty and the Beast). First-run releases shown in digital 3D Continental Europe, excluding France. Source: CNC. French films American films European films1 other films results

44 Distributor's ranking 37.3% of distributors only distributed a single film in 2017, compared to 41.8% in active distributors in 2017 In 2017, 153 distributors participated in the release of 693 new films. The ten most active companies distributed 28.6% of the new released films (28.2% in 2016). Four ditributors distributed over 20 each, and accounted for 14.1% of the films shown for the first time in theaters in Only one distributor totaled more than 20 releases in 2016, accounting for 2.9% of all new released films. Of the 153 distributors involved in the release of new films in 2017, 57 did not distribute films in 2016 and 61 only distributed a single film. In 2016, 69 distributors (out of 165) only distributed a single film. The Walt Disney Company: 1 st in the distributor's ranking In 2017, The Walt Disney Company headed the distributor's ranking in terms of total receipts. The distribution of successful sequels such as Star Wars: The Last Jedi (1 st film in terms of total receipts in 2017), Pirates of the Caribbean: Salazar's Revenge and Beauty and the Beast allowed it to achieve a market share of 12.9% (15.2% in 2016). In second place, Universal Pictures International captured 12.6% of distributors' total receipts in 2017, largely thanks to Despicable Me 3 and Fast and Furious 8. StudioCanal, the top French distributor, took 5 th place with a 7.2% share of the market. Most notably, the company distributed Alibi.com and Marry Me, Dude. In 2017, the top ten distributors obtained 74.6% of total receipts (76.0% in 2016). The top five captured 48.8% of total receipts (52.8% in 2016). Increase in average receipts per admission On average, total receipts received by distributors per admission before tax reached 2.83 in 2017, representing a rise of 1.8% on 2016 ( 2.77). For a French film, total receipts reached 2.71 ( 2.66 in 2016, i.e. +1.7%), compared to 2.99 for an American film ( 2.87 in 2016, i.e. +4.1%), 2.59 for a non-french European film ( 2.77 in 2016, i.e. -6.3%) and 2.48 for a film from other countries ( 2.29 in 2016, i.e. +8.0%). The top 10 distributors in 2017 market share 1 (%) films shown of which new releases 1 The Walt Disney Company Universal Pictures International Twentieth Century Fox Warner Bros StudioCanal Sony Pictures Releasing Gaumont Pathé Distribution SND Paramount Pictures In terms of distributors' total receipts. Source: CNC. 44 results 2017

45 Trend in the number of active distributors Distributors of new released films / Updated data. Source: CNC. Also see -the statistical series on films distributed results

46 Film promotion Methodology The Kantar Media institute collects statistics on advertising on seven major media: posters, cinema, press, radio, television, the Internet and tactical media. In 2014, Kantar Media modified the follow-up of advertising investments on the Internet. This change does not allow exhaustive data to be gathered on this media. As a result, advertising investments on the Internet are excluded from this section. The amounts mentioned below therefore refer to the financial valorization of displaying advertising on six analyzed media (not including the Internet). These are priced gross investments that do not take into account the discounts, reductions or refunds belonging to each media and each support. This data must therefore be interpreted with care. 503 films were promoted for a total of million of gross advertising investments, i.e K on average per film. Over three-quarters of first-run releases were promoted In total, 503 films released for the first time in 2017 were the object of a promotion on at least one major media (72.6% of the 2017 first-run releases, compared to 73.5% for the films released in 2016). Of the 359 French films released for the first time in theaters in 2017, 71.9% were promoted on at least one media (72.5% for 2016 films). 95.2% of American first-run releases in 2017 were also in this case (90.0% for films in 2016). Priced gross advertising investments to promote films released in 2017 were million, a decrease of 1.7% compared to An average investment 2.4 times greater for American films than for French films French films accounted for 40.8% of gross advertising investments relating to the promotion of first-run releases in 2017 for 51.3% of films. 258 French films were promoted on at least one media for a total investment of million (+24.9% compared to French films in 2016). Advertising investments to promote American first-run release films dropped in 2017 compared to those of 2016 (-23.1% to million) for a number of films that was also down slightly (-17 titles to 118 films). On average, the gross advertising investment for a French film was K in 2017 ( K for a French film in 2016) and 1.9 million for an American film ( 2.1 million for an American film in 2016). The average investment for a French film was therefore 2.4 times lower than for an American film (3.4 times lower in 2016). Advertising investments for non-french European films rose 32.0% between 2016 and 2017 films, for a slightly higher number of films (+2 titles to 84 films in 2017). 17 non-french European films accumulated more than 1 million in gross advertising investments (15 in 2016). Advertising investments for non-european and non-american films increased for the 2017 titles to 11.2 million (+10.8%) for a slight reduction in the number of films (43 films in 2017, versus 45 in 2016). Advertising investments exceeded 500 K for six films in 2017, as in results 2017

47 Priced gross advertising investments according to the country of origin of the films and the year of release in theaters (millions of ) structure trend 17/16 French films % +24.9% American films % -23.1% European films % +32.0% other films % +10.8% total % -1.7% 1 Continental Europe, excluding France. Source: Kantar Media CNC. War for the Planet of the Apes, 1 st in the film ranking War for the Planet of the Apes (American science-fiction film) was first in the film rankings in terms of gross advertising investments in 2017, followed by Baby Boss (American animated film) and Valerian and the city of a thousand planets (French science-fiction film). Three French films made it into the top 20 films (one in 2016): Valerian and the city of a thousand planets, Paddington 2 and With open arms. Four animated films featured in the top 20 (as in 2016). The top documentary, l Empereur (French film), came 38 th in this ranking. In 2016, the first documentary was 53 rd. The movie theater was the leading medium for film promotion in 2017 with million in gross advertising investments The movie theater was the leading medium for film promotion in 2017 in terms of investments and reached its highest level in the decade. Investments in this medium rose 4.2% to million for first-run release films in The share of movie theaters in total investment amounted to 43.4% for new released films in 2017 (40.9% for those of 2016), the highest level of the decade. Priced gross advertising investments in posters decreased to million in 2017 (-3.0%). Posters captured 29.1% of total advertising spending on 2017 films (29.5% for 2016 films). Nearly 89% of promoted films were the subject of an advertisement in the press On average, the promotion of a film released for the first time in theaters in 2017 cost K. The average investment differed widely according to the media. It ranged from K for promotion on television to K for promotion in theaters. The press was the most targeted media. 446 films were the subject of an advertisement in the press (88.7% of the films being promoted), 358 films a poster campaign (71.2%), 251 films a radio spot (49.9%), 227 films a spot in movie theaters (45.1%) and 69 films a promotion on television (13.7%). Priced gross advertising investments according to media and year of release in theaters (millions of ) structure results trend 17/16 posters % -3.0% cinema % +4.2% press % -7.8% radio % -8.2% television % -16.6% tactical media total % -1.7% 1 Unconventional media: automobiles, tables of cafes and brasseries. Source: Kantar Media - CNC.

48 The distribution costs of French initiative films in 2016 Methodology The following data sheds light on the distribution costs of French-initiative films approved by CNC and released in theaters. Several sources of information are used to collect detailed data on these costs: automatic funding for distribution, the Canal+ contribution to distribution, the CNC contribution to distribution and data reported by distributors via a questionnaire for films that are not covered by Canal+ and CNC funding or by automatic funding from the CNC. French films not approved, approved French-minority films and some films for which no information could be collected are excluded. The publishing costs (= distribution costs) are broken down into four categories: - technical distribution costs: printing of copies (silver and digital), storage and transport of copies, costs associated with design and manufacture of the trailer, expenses associated with the distribution of the digitized films (especially the DCP (Digital Cinema Package) and KDM (Key Delivery Message). As of 2012, the technical costs also take into account digital contributions; - advertising space purchases: posters, radio, Internet, press, cinema, television; - expenses related to the design and production of advertising material: design and production of posters, creation and production of radio spots, video clips, websites, etc.; - various promotional costs: production of invitation cards, rental of screening rooms, organization of previews, costs of film festivals and representation, remuneration of the press secretary, journeys and travel, etc. Average film distribution costs at a 10-year low. Further reduction in the average cost of distribution to K in 2016 In 2016, the average distribution cost of French-initiative films decreased 1.7% compared to 2015 to K. 41.9% of the films had a distribution cost below 200 K in 2016, versus 37.0% in Between 2015 and 2016, the structure of publishing costs saw a slight increase in the share captured by the purchase of advertising space, rising from 50.4% to 51.2%, and that by various promotional costs, rising from 16.2% to 17.1%. For the second year in a row, the share of space purchasing costs represented more than 50% of distribution costs. On the other hand, the share of costs related to technical expenses continued its decline, reaching 21.9% in 2016, compared to 23.3% in 2015 and 31.2% in The share of the expenses related to the design of advertising material remained relatively stable over the period (9.7% in 2016, 10.1% in 2015 and 9.0% in 2007). Average cost of distribution of a fiction film: K in 2016 On average, a fiction film of French initiative totaled K in publishing costs, an increase of 2.7% compared to Between 2015 and 2016, the total amount of fiction film publishing costs increased by 11.4%, for a number of films up 8.5%. Average cost of distribution of an animated film: K in 2016 French-initiative animation generally gave rise to significant publishing costs ( million on average per film during the last ten years) was the lowest in the last ten years in terms of distribution costs ( K on average per film in 2016). 48 results 2017

49 Average cost of distributing a documentary: K in 2016 The documentary is a controlled economy genre. The average amount of publishing costs amounted to K in 2016 ( K in 2015). Distribution costs for French initiative films trend 16/15 number of films % distribution costs (millions of ) % technical costs % purchase of spaces % advertising material % misc promotion costs % average distribution cost per film (in thousands of ) % Base: approved French initiative films released in cinemas for which distribution costs are available. Source: CNC. Distribution costs represented 9.6% of the final cost of a film in 2016 The average final cost of a French-initiative film (production cost + distribution cost) was 5.01 million for films in 2016 ( 5.15 million in 2015). The budget dedicated to the distribution of a film is closely correlated with its production cost. In 2016, a film with a production cost lower than 1 million presented an average distribution cost of 110.5K, while a film whose production cost exceeded 15 million posted publishing costs that were, on average, more than 15 times higher ( 1.71 million in 2016). Distribution costs of French initiative films according to the production cost in 2016 < 1 m m m 4-7 m 7-15 m > 15 m total number of films final cost 1 (millions of ) distribution costs (millions of ) technical costs purchase of spaces advertising material misc promotion costs part in the definitive cost (%) average final cost per film (millions of ) average distribution cost per film (thousands of ) Base: 195 approved French initiative films were released in 2016 for which the distribution and production costs are available. 1 Final cost = production cost + distribution cost. Source: CNC. The average final cost of a French-initiative film was 5.01 million in On average, over 75,000 of digital contributions per film in 2016 Of the 198 approved French-initiative films released in theaters in 2016, data relating to virtual or VPF (Virtual Print Fee) contributions paid to exhibitors were available for 193 of them or 97.5%. Apart from 2013, it should be noted that digital contributions have been incorporated, in the results

50 questionnaires, into technical costs of printing digital copies. Taking this detail into account, the data should be interpreted with care. The total digital contributions for 193 approved French-initiative films released in theaters in 2016 was million, that is 75,775 on average per film ( 80,237 in 2015). The share of digital contributions in distribution costs (including VPF) of these films is estimated at 15.4% (16.4% in 2015). In 2016, digital contributions by theaters in the opening week averaged 432. Identified digital contributions trend 16/15 number of films % total digital contributions (millions of ) % digital contributions per films ( ) 55,876 84,327 93,534 91,843 80,237 75, % share of VPF in distribution costs (including VPF) (%) pt Base: approved French initiative films released in cinemas for which digital contributions are available. Source: CNC. Consolidation of purchasing of space in movie theaters and on the Internet Over the past ten years, the distribution of advertising space purchases has changed significantly. The share of space purchases in movie theaters increased by 11.0 points between 2007 and 2016, rising from 13.5% of space purchases to 24.5%. The share of spending on the Internet also increased between 2007 and 2016 (+11.1 points). The other items of expenditure on space purchases decreased over the period, in particular, spending on posters (-8.0 points between 2007 and 2016). Structure of purchases of advertising space for French initiative films (%) ,7 24,5 16,5 10,4 2,5 4, ,9 22,2 14,5 11,9 2,1 4, ,1 25,0 13,5 10,4 2,6 5, ,8 21,6 12,2 10,2 2,8 7, ,2 20,3 9,9 11,4 2,1 5, ,6 20,1 8,9 10,2 2,5 5, ,4 20,2 8,0 13,1 3,22, ,9 17,2 6,8 12,5 5,1 1, ,5 17,7 6,6 14,4 3,51, ,7 13,5 5,3 12,2 4,0 15,2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% posters cinema Internet press radio other purchases of spaces Base: approved French-initiative films released in theaters for which distribution costs are available. Source: CNC. Also see -the study Les coûts de distribution des films français en the statistical series on the distribution costs of films 50 results 2017

51 2.3. Movie theater audiences 2017 key figures: 42.6 million movie-goers 67.7% of the French attended movie theaters 3-14 years old years old years old 50 and over Movie-goers 18.3% 15.2% 35.8% 30.8% French population 15.2% 12.2% 32.3% 40.4% Methodology Since 2016, the Vertigo market research firm has conducted Cinexpert, a new system of study and measurement of audiences in partnership with the CNC, Médiavision and Canal+ Régie. The system is based on two complementary surveys: a weekly online survey of 2,000 movie-goers aged three and over covering the last seven days, that lasts all year long, in order to qualify the profile of cinema audiences and films, and an annual scoping survey by telephone, with a view to identifying the penetration of the cinema medium, the structure of the audience and the audience s movie-going habits in the previous year. This information is collected in January and February each year in an independent and dedicated telephone survey (CATI) of 5,000 individuals aged three and over, covering attendance during the preceding year. The movie theater audience in 2017 Definitions The movie-going population refers to all individuals aged three and over who went to a movie theater at least once during the year. The movie-going penetration rate for a group of individuals is the result of the calculation: - movie-going population of that group / total population of that group. The proportion of a group of individuals in the audience structure is the result of the following equation: - individuals concerned / total movie-going population. The proportion of a group of individuals in the admission structure is the result of the following equation: - admissions by the individuals concerned / total admissions. The average number of admissions for a group of individuals corresponds to the average number of annual admissions for an individual in that group of movie-goers. Fans go to the movie theater at least once per week, enthusiasts attend at least once per month (but less than once per week) and occasional movie-goers at least once per year (but less than once per month). Regular movie-goers include both fans and enthusiasts. Increased number of movie-goers in 2017 There were slightly more movie-goers in 2017 than in million individuals aged 3 and over went to a movie theater at least once in the year (42.5 million in 2016). The movie-going population included 117,258 more individuals than in 2016 (+0.3%). The movie-going population represented 67.7% of the total population aged three and over in 2017, compared to 67.8 % in More than two thirds of the French population went to a movie theater at least once in results

52 On average, each movie-goer went to a movie theater 4.9 times in the course of the year in 2017, compared to 5.0 times in More than two thirds of the French population went to a movie theater at least once in The movie-going population total population (in millions) movie-goers (in millions) penetration (%) average admissions per movie-goer Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. Rise in the number of movie-goers In 2017 women (54.3%) accounted for more admissions than men (45.7%). Women made up 51.6% of the French population aged three and over and represented 51.3% of all movie-goers (51.6% in 2016). However, within the movie-going population, the number of women declined by 0.3% in 2017 while the number of men increased by 0.9%. In 2017, 68.2% of men went to a movie theater at least once during the year (67.8% in 2016), versus 67.2% of women (67.7% in 2016). In 2017, women went to a movie theater more often (5.2 times on average in the year) than men (4.6 times). Attendance by gender in 2017 proportion of the population (%) penetration (%) audience structure (%) admission structure (%) average number of admissions men women total Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. Seniors generated 36.4% of admissions in Growth in the proportion of senior movie-goers Movie-goers aged 35 and over accounted for more than half of the movie-going population (52.6% in 2017, 54.2% in 2016). In 2017, they accounted for 54.1% of admissions (55.5% in 2016), i.e., an average of 5.1 admissions per movie-goer. The share of seniors (50 and over) in the movie-going population dipped to 30.8% in 2017 (32.6% in 2016), while their contribution to the total reference population remained stable (40.4% in 2017 and 2016). Attendance by the over 50s decreased by 5.3% between 2016 and 2017 and the average annual number of admissions by seniors reached 5.8. Seniors generated 36.4% of admissions in 2017 (-3.7 points compared to 2016), of which 21.7% concerned women. Movie-theater penetration increased among the year olds. It rose from 72.3% in 2016 to 73.6% in The number of movie-goers aged 35 to 49 inched up 0.9% between 2016 and Their share in the audience amounted to 21.8% (21.6% in 2016). The age group accounted for 17.8% of admissions in 2017 (15.4% in 2016), i.e. an average of 4.0 annual admissions per movie-goer. The percentage of movie-goers aged within general audiences increased (14.0% in 2017, 13.3% in 2016). In fact, the number of movie-goers in this age group increased by 5.2% between 52 results 2017

53 2016 and In 2017, the age group represented 11.6% of admissions, compared with 12.3% in Cinema penetration increased by 4.9 points in this age group: 77.3% of year-olds went to the movies at least once in 2017, compared to 72.4% in An additional 473,000 movie-goers aged under 25 in In 2017, the number of movie-goers aged under 25 rose by 3.4% The share of under 25-year-olds in the movie-going population rose in They represented 33.5% of movie-goers, versus 32.4% in 2016 and their number increased by 3.4% million individuals went to the movies, compared with 13.8 million in Under 25-year-olds accounted for 34.3% of admissions (32.2% in 2016). In terms of penetration, the cinema is continuing to attract more young people: 82.8% of under 25-year-olds went to the movies in 2017, compared to 82.0% in Penetration increased amongst 3-10-year-olds (79.1%, compared to 78.3% in 2016) and amongst year-olds (83.0%, compared to 77.8% in 2016). It was particularly high for girls aged 15 to 19 (90.0% of whom went to the movies in 2017). Differences in attendance patterns remained in 2017 according to age group. On average, the threshold of 6 annual admissions was reached for year olds (6.1), year olds (6.2) and for those aged 60 or over (6.6). The other age groups were below this threshold. More under-14-year olds went to the movies in 2017 (+3.0%). 81.4% of under 14-year-olds went to the movies in 2017 Overall, the number of under 14-year-olds who went to the movies increased by 3.0% in 2017 to 7.8 million. 81.4% of under 14-year-olds went to the movies at least once in 2017, compared to 80.9% in More children aged 3-10 went to the movies with 5.0 million individuals (+3.0% compared to 2016) and there was a similar rise for year olds to 2.8 million (+3.1%). The share of the under 14-year-olds in the movie-going population in 2017 stood at 18.3% (17.8% in 2016) and they generated 15.3% of admissions in that year (13.7% in 2016). The under 14-yearolds went to the movies 4.1 times in Attendance by age in 2017 proportion of the population (%) penetration (%) audience structure (%) admission structure (%) average number of admissions 3-10 years old years old years old years old years old years old years old over 60 years old total Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. More under 25-year-olds went to the movies The share of seniors (50 and over) in movie-going audiences grew slightly by 1.8 points, while that of under 25-year-olds inched up by 1.0 point. In 2017, the proportion of seniors (30.8%) was lower results

54 than that of under 25-year-olds (33.5%) in movie-theater audiences. However, seniors generated 36.4% of admissions in 2017, while the younger age group only generated 34.3%. Proportion of young people and seniors in audiences (%) ,1 33,5 32,4 32,6 31,2 30, under 25 years old over 50 years old Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. 83.4% of school pupils and students went to the movies in 2017 In terms of professional categories, members of the upper socio-professional categories were once again the group most attracted to movie theaters, with a high rate of penetration (79.5% of its members went to a movie theater at least once in 2017, compared to 78.8% in 2016). This was particularly true for women in the upper socio-professional categories, 80.3% of whom went to a movie theater at least once in 2017 (78.9% for men in the upper socio-professional categories). The average number of admissions by upper socio-professional categories was 4.6 in In 2017, movie theater attendance increased among members of the lower socio-professional categories: 66.5% of members of the lower social-professional categories went to a movie theater, compared with 65.5% in On average, they went to a movie theater 4.2 times in the course of the year. Lower socio-professional categories generated 20.1% of attendances in 2017 (18.6% in 2016). However, the movie-going population from the lower socio-professional categories dipped by 2.1% between 2016 and Movie-theater penetration among non-working individuals declined in 2017: 63.2% went to a movie theater at least once (62.2% of women and 64.5% of men), compared to 64.2% in Movietheater penetration amongst school pupils and students remained stable in % went to movie theaters (as in 2016). Between 2016 and 2017, the number of pupils and students who went to the movies rose slightly (+1.0%). Movie-theater penetration decreased among the retired to 46.5% in 2017, versus 49.4% in Compared to 2016, the number of retiree movie-goers fell by 2.6%. The numbers of those from the lower socio-professional categories who went to the movies increased by 1.0% between 2016 and results 2017

55 Attendance by profession in 2017 proportion of the population (%) penetration (%) audience structure (%) admission structure (%) average number of admissions upper socio-professional CEOs, executives, etc intermediate professions tradespeople, shopkeepers lower socio-professional office workers manual workers farmers non-working individuals retired pupils, students other non-working individuals (unemployed, etc.) total Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. Cinema penetration continued to grow in rural areas Cinema penetration increased in rural areas (+2.5 points between 2016 and 2017), but declined in urban units with fewer than 20,000 inhabitants (-4.2 points). In terms of numbers, the movie-going population in these areas remained relatively stable at 16.4 million (-0.9% between 2016 and 2017). Rural and urban units with fewer than 20,000 inhabitants accounted for 38.4% of audiences (38.9% in 2016) and 31.4% of admissions in 2017 (31.7% in 2016). The average number of admissions was 4.0 per movie-goer in these areas in Paris and urban units with over 100,000 inhabitants did not account for the majority of moviegoers. These urban units accounted for 48.1% of movie-goers in 2017, compared to 47.8% in They still accounted for the highest share of admissions (54.9% in 2017, versus 54.4% in 2016). The number of movie-goers in large conurbations, including Paris, rose by 206,000 between 2016 and 2017 (+1.0%). Attendance by size of conurbation of residence in 2017 proportion of the population (%) penetration (%) audience structure (%) admission structure (%) average number of admissions rural areas conurbation < 20,000 inhabitants conurb. of 20,000 to 50,000 inhabitants conurb. of 50,000 to 100,000 inhabitants conurbation > 100,000 inhabitants Paris conurbation total Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. The number of occasional movie-goers rose slightly in 2017 to 65.0% of the audience that year and one third of attendance. Increase in the occasional audience results

56 In 2017, the number of occasional movie-goers increased by 0.7% to 27.7 million. Occasional movie-goers accounted for 65.0% of movie-theater audiences in 2017, compared to 64.8% in They accounted for 33.0% of the movie-theater attendance in 2017, i.e million admissions. Attendance by occasional movie-goers was largely driven by films with broad appeal like Cars 3 (52.3% of admissions by occasional movie-goers), Sing (52.0%) and Star Wars, the last Jedi (50.5%). Cinema regulars (enthusiasts and fans) still accounted for the majority of admissions. They accounted for million, or 67.0% of total admissions for the year. Compared to 2016, the movie-going population included fewer fans (-0.18 million individuals) but more enthusiasts (+0.12 million individuals). Regular movie-goers accounted for 35.0% of movie-theater audiences in 2017, compared to 35.2% in The habits of movie theater audiences audience structure (%) regulars fans enthusiasts occasional total admission structure (%) regulars n/a fans n/a enthusiasts n/a occasional n/a total n/a Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. Structure of the audience and admissions by attendance behavior in 2017 (%) audience structure 3,8 31,2 65,0 admission structure 22,2 44,8 33,0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% fans enthusiasts occasional Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. The attendance behavior of movie-goers is determined by socio-demographic criteria. In 2017, 34.7% of regular movie-goers were aged 50 or older (28.7% for occasional movie-goers), 51.4% were from the non-working category (48.7% for occasional movie-goers) and 55.3% lived in Paris or conurbations with more than 100,000 inhabitants (44.3% for occasional movie-goers). 56 results 2017

57 Structure of cinema audiences by movie-going frequency in 2017 (%) regulars occasional total gender men women age 3-14 years old years old years old over 50 years old profession upper socio-professional lower socio-professional non-working individuals location rural areas conurbation < 20,000 inhabitants conurb. of 20,000 to 50,000 inhabitants conurb. of 50,000 to 100,000 inhabitants conurbation > 100,000 inhabitants Paris conurbation Source: CNC Vertigo, CinExpert survey, movie-goers in the last 12 months, aged three and over. Also see -the study Le public du cinema en the statistical series on the profile of the movie-theater audience results

58 The audiences for films in 2017 In 2016, 51.8% of the audience for French films were seniors (aged 50 and over). Fans had a greater appetite for French films French films were especially popular with seniors (aged 50 and over) in The share of this population in audiences for French films was 20.1 points higher than its share in audiences for all films. In 2017, 51.8% of the audience for French films were seniors. In contrast, movie-goers under 25 were under-represented in audiences for French films. They accounted for 24.4% of audiences for French films, compared to 38.1% for all films. Nevertheless, some French films had a real impact on this age group which constituted more than 40% of their audience. This was the case in particular for The Jungle Bunch: The Movie (59.8% of under 25-year olds), Sahara (55.6%), Paddington 2 (51.9%) and Little Spirou (49.6 %). Fans fonder of French films. In 2017, they represented 22.7% of these films' audiences, compared with 19.3% of the audiences for all films. Films such as The Midwife and 120 Beats per Minute attracted numerous movie-goers (over 600,000 admissions) and a high proportion of fans (34.9% and 31.1% respectively). French films attracting a significant share of under 25-year-olds in 2017 (%) The Jungle Bunch: The Movie Sahara Paddington 2 Little Spirou Marry Me, Dude C'est tout pour moi Boule & Bill 2 Alibi.com Christmas & Co. The New Adventures of Cinderella Base: French films released in 2017 in 50 or more opening-week theaters and for which at least 200 interviews were conducted. Source: CNC Vertigo, CinExpert survey, movie-goers in the last 7 days, aged three and over. 34,6 37,1 36,8 42,1 41,0 40,8 49,6 51,9 55,6 59,8 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 In 2017, 45.2% of movie-goers for American films were under 25 years of age. Young audiences for American films The audiences of American films are young. 45.2% of movie-goers for American films were under the age of 25, compared to 38.1% for all films. This can be explained in particular by the theatrical release in 2017 of eleven animated films of which Cars 3 (58.1% of 3-24-year olds), Baby Boss (57.0%), and Smurfs: The Lost Village (55.2 %). Seniors (22.0%) and fans (16.8%) were less represented in the audiences for American films, mainly due to the fact that the type of films produced (animation, adventure, science fiction, horror) tend to appeal less to these categories of population. 58 results 2017

59 Film audiences by country of origin in 2017 (%) gender French films American films European films 1 other films all films men women age children (age 3-14) young adults (age 15-24) adults (age 25-49) seniors (50 and over) profession upper socio-professional lower socio-professional non-working individuals location Paris and surroundings other regions movie-going frequency fans enthusiasts occasional Continental Europe, excluding France. Base: sample of 354 films in 2017 released in over 50 opening-week theaters. Source: CNC Vertigo, CinExpert survey, movie-goers in the last 7 days, aged three and over. Occasional movie-goers were particularly present in the audiences for animated films Among the main genres of feature films, animated films have a very specific audience. Children accounted for 43.1% of the audiences for these films, compared to 16.7% of audiences for all films. For movies such as Captain Underpants and The Nut Job 2, 3-14-year-olds represented more than 50% of movie-goers. Among audiences for animated films, residents of non-parisian regions were over-represented (75.9% in 2017, compared to 74.5% for all genres). 46.8% of animated film audiences were occasional movie-goers, compared to 35.4% for all films. Enthusiasts made up 39.7% of the audience for these films (45.2% for all genres) and fans accounted for 13.5% (19.3% for all genres). An audience of seniors for documentaries It should be noted that only films released in over 50 opening-week theaters are included in this study. This restriction excludes many documentary films, which often have limited releases. The audience analysis for these documentaries indicated a marked segmentation compared to other film genres. Documentaries drew in a large number of seniors (57.5% of audiences, compared to 31.7% for all films) and Parisians (33.7%, compared to 25.5% for all films). In 2017, the proportion of fans who saw documentary films was higher (36.5%) than that of all films (19.3%). Occasional movie-goers accounted for 12.3% of audiences for documentary films, compared to 35.4% for all films. results

60 Audiences for films by gender in 2017 (%) gender animated films documentaries fiction films of which comedies all films men women age children (age 3-14) young adults (age 15-24) adults (age 25-49) seniors (50 and over) profession upper socio-professional lower socio-professional non-working individuals location Paris and surroundings other regions movie-going frequency fans enthusiasts occasional Base: sample of 354 films in 2017 released in over 50 opening-week theaters. Source: CNC Vertigo, CinExpert survey, movie-goers in the last 7 days, aged three and over. Fans, urban and senior movie-goers attended recommended Art House films Audiences for Art House films have specific characteristics. It should be noted that only films released in over 50 opening-week theaters are included in this study. This restriction excludes many Art House films, which often have limited releases. In 2017, seniors accounted for 61.0% of Art House film audiences, members of the upper socioprofessional categories accounted for 36.9%, residents of Paris and its surroundings accounted for 32.5% and fans accounted for 32.5%. Conversely, the audience structure for non-recommended films was younger, more occasional and more likely to live in the regions. Fans particularly favored certain recommended Art House films by well-known directors. This was true for Ismael's Ghosts by Arnaud Desplechin (40.0% of fans), The Beguiled by Sofia Coppola (32.3%) and the Guardians by Xavier Beauvois (31.2 %). Among the 147 recommended Art House films in 2017, only four had an audience where the share of occasional movie-goers was above average. 60 results 2017

61 Audiences for Art House films in 2017 (%) gender Art House films non-recommended films all films men women age children (age 3-14) young adults (age 15-24) adults (age 25-49) seniors (50 and over) profession upper socio-professional lower socio-professional non-working individuals location Paris and surroundings other regions movie-going frequency fans enthusiasts occasional Base: sample of 354 films in 2017 released in over 50 opening-week theaters. Source: CNC Vertigo, CinExpert survey, movie-goers in the last 7 days, aged three and over. The success of a film depends on occasional movie-goers By correlation, the proportion of fans and occasional movie-goers within a film's audience depends on its admissions. The lower the number of admissions, the greater the proportion of fans in the audience (42.3% for films with under 100,000 admissions in 2017). Conversely, greater admissions for a film mean a higher proportion of occasional movie-goers in its audience (46.1% for films with over four million admissions in 2017). Occasional movie-goers are more influenced by word-ofmouth. However, examining statistics for each film in detail shows that higher proportions of occasional movie-goers are not systematically correlated to the number of admissions, although in cases when a film has more than four million viewers, they are generally over-represented regardless of the film. Thus, some of the films that enjoyed significant success in 2017, such as La La Land, See you up there and Logan (more than 1.9 million admissions each), attracted fewer occasional movie-goers than average (35.4% in 2017), at 25.5%, 27.7% and 29.7%, respectively. The success of these films was more dependent upon an audience of enthusiasts (between 46.4% and 51.5%). In parallel, the higher the admissions for a film, the more it attracted young people (4.3% of children for films that achieved fewer than 100,000 admissions in 2017, 20.4% for films with more than 4 million admissions), non-working individuals (45.8% of non-working individuals for films with fewer than 100,000 admissions, 50.2% for films with more than 4 million admissions) and people living in the regions (64.6% of people living in the regions for films with fewer than 100,000 admissions, 78.3% for films with over 4 million admissions). results

62 The more admissions for a film, the younger the audience: 40.4% of audiences for films with more than 4 million admissions were aged under 25. Audiences for films according to the number of admissions in 2017 (%) gender fewer than 100,000 to 500,000 to 100, ,000 1 million 1 to 2 million 2 million to 4 million more than 4 million all films men women age children (age 3-14) young adults (age 15-24) adults (age 25-49) seniors (50 and over) profession upper socio-professional lower socio-professional non-working individuals location Paris and surroundings other regions movie-going frequency fans enthusiasts occasional Base: sample of 354 films in 2017 released in over 50 opening-week theaters. Source: CNC Vertigo, CinExpert survey, movie-goers in the last 7 days, aged three and over. 3D movies attract a younger, more masculine audience Of the 354 films in the 2017 sample, 34 were released in movie theaters (either exclusively or otherwise) in 3D. The analysis compared the structure of the audience of these films compared to all films. Audiences for 3D films in movie theaters had specific characteristics. In 2017, they comprised 60.1% men (51.7% for all films), 46.0% under 25-year-olds (38.1% for all films) and 47.7% enthusiasts (45.2% for all films). 62 results 2017

63 Audiences for films shown in 3D in 2016 (%) gender films in 3D all films men women age children (age 3-14) young adults (age 15-24) adults (age 25-49) seniors (50 and over) profession upper socio-professional lower socio-professional non-working individuals location Paris and surroundings other regions movie-going frequency fans enthusiasts occasional Base: sample of 34 films in 2017 released in over 50 3D opening-week theaters. Source: CNC Vertigo, CinExpert survey, movie-goers in the last 7 days, aged three and over. Also see -the statistical series on the movie-going population results

64 2.4. Exhibition 2017 key figures: 2,046 active movie theaters (+2 movie theaters compared to 2016) of which: 219 multiplexes (10.7 % of movie theaters), 60.1% of admissions 1,159 single-screen movie theaters (56.6% of movie theaters) 668 movie theaters with 2 to 7 screens (32.6% of movie theaters) 5,913 active screens (+71 screens compared to 2016) What is an active screen? In order to measure cinema screen activity across France, the CNC takes an annual census of active screens (i.e., any screen that shows at least one film during the year that requires cinema operators to file a statement of receipts with the CNC). This declaration is filed with the CNC by cinema operators. This statement provides documentary proof of earnings, TSA (tax on cinema tickets) calculations and automatic financial support calculations. These documents are used to tabulate all statistics concerning film projections in movie theaters. Cinema operators are required to provide a statement of earnings for each week, every screen and every film. Included for each week are the titles of films currently featured, the number of scheduled show times, total admissions and total box-office. Screens that only broadcast video instead of screening films are not included in this review of projections. French movie theaters The total number of screens increased to 5,913 5,913 screens were active in metropolitan France in 2017, i.e. 71 more than in 2016 (+1.2%). This balance is the result of the opening or reopening of 142 screens and the temporary or definitive closing of 71 screens. Most screen openings were due to the increase in the total number of multiplexes. In 2017, 66.2% of the new screens were located in this type of movie theater (58.1% of new screens in 2016) versus 14.8% in movie theaters with 4 to 7 screens (23.3% in 2016) and 19.0% in movie theaters with 1 to 3 screens (18.6% in 2016). Of the 129 screens opened in 2017, 30 were the result of the expansion of existing movie theaters (25 out of 129 in 2016). Since 2013, the extensions of existing movie theaters concerned 25 screens or more each year (29 screens per year on average over the period ) whereas this figure did not exceed 20 between 2008 and 2012 (13 screens per year on average over the period). Of the 5,913 active screens in 2017, there were 105 mobile units (104 in 2016). 2,046 active movie theaters (+2 compared with 2016) and 5,913 active screens (+71 versus 2016) in ,046 movie theaters In 2017, the number of active movie theaters stood at 2,046, i.e. 2 more than in movie theaters opened or re-opened whereas 23 closed temporarily (mainly for renovation) or permanently. In 2017, a 12-screen multiplex (Pathé Grand Ciel in La Garde - Var department), two movie theaters with seven screens, one with six screens, one with five screens, three with four screens, 64 results 2017

65 movie theaters screens two with three screens, one with two screens and 12 single-screen theaters closed temporarily or permanently. 44.0% of newly-opened movie theaters in 2017 had one screen (11 movie theaters). Eight had eight screens or more also saw the opening of three movie theaters with three screens, one with four screens, one with six screens and one with seven screens. Total number of movie theaters in metropolitan France 1 movie theaters screens seats average number of seats per movie theater average number of seats per screen ,071 5,395 1,036, ,073 5,478 1,053, ,050 5,468 1,048, ,034 5,468 1,047, ,035 5,508 1,053, ,027 5,589 1,065, ,020 5,647 1,071, ,033 5,741 1,094, ,044 5,842 1,099, ,046 5,913 1,118, trend 17/ % +1.2% +1.8% +1.7% +0.5% 1 Provisional data for Source: CNC. Change in the number of active cinemas and screens movie theaters screens 1 Provisional data for Source: CNC. results

66 Change in screen openings and closings openings closings 1 Provisional data for Source: CNC. 27 movie theaters in overseas departments In 2017, there were 27 active movie theaters in the overseas departments, including four multiplexes (theaters with eight or more screens), as in They represent a total of 77 screens. La Réunion has the most movie theaters, with 13 theaters, including two multiplexes, and 35 screens, ahead of Guadeloupe (seven movie theaters, including one multiplex, and 20 screens), Guiana (four movie theaters and 10 screens) and Martinique (three movie theaters, including one multiplex, and 12 screens). 84 movie theaters in Paris In 2017, the number of active screens in Paris rose to 406, from 419 in The capital had three fewer movie theaters in 2017 compared to The Gaumont Champs Elysées Ambassade (seven screens) in the 8 th arrondissement, the Saint Lazare Pasquier (three screens) in the 8 th arrondissement and the Mistral (five screens) in the 14 th arrondissement all closed. The latter closed at the time of reopening of the Gaumont Alésia (eight screens) in the same arrondissement. Paris is home to 84 movie theaters, 12 of which are multiplexes (eight or more screens). The capital had 74,939 seats in In ten years, Paris saw no change in the number of movie theaters while there were 44 additional screens and 6,099 additional seats. A Parisian movie theater had, on average, 892 seats in 2017 (820 in 2008, i.e. +8.9%) and a screen had 185 seats (190 in 2008, i.e. -2.9%). 66 results 2017

67 Number of movie theaters in Paris 1 movie theaters screens seats , , , , , , , , , ,939 trend 17/16-3.4% -3.1% -4.9% 1 Provisional data for Source: CNC. More significant drop in average multiplex admissions In light of the change in attendance in 2017 (-1.8% from 2016), the average number of admissions per cinema fell to 102,346, i.e. -1.9% from The average number of admissions per screen further declined to 35,413 (-3.0%). On average, a single multiplex recorded 574,562 admissions in 2017, versus 608,935 in 2016 (-5.6%). Average number of admissions 1 per cinema per screen ,892 35, ,262 36, ,025 37, ,784 39, ,041 36, ,580 34, ,504 37, ,013 35, ,321 36, ,346 35,413 trend 17/16-1.9% -3.0% 1 Provisional data for Source: CNC. 6.3% of theaters accounted for 450,000 or more admissions In 2017, while 62.8% of movie theaters saw fewer than 40,000 admissions, they accounted for 25.4% of active screens, 27.0% of seats and 9.3% of admissions. Conversely, cinemas with 450,000 or more admissions represented 6.3% of movie theaters, 27.5% of screens, 30.8% of seats and 47.5% of overall attendance. On average, a movie theater with 700,000 admissions or more recorded 1,056,742 admissions in 2017 (+1.1% on 2016), compared to 15,183 admissions for a movie theater with an annual total of fewer than 40,000 admissions (-1.6%). In a context of declining attendance (-1.8% compared to 2016), overall results of movie theaters with 700,000 admissions or more recorded the biggest drop (-10.0%), ahead of movie theaters recording between 80,000 and 200,000 admissions (-1.9%) and those achieving fewer than 40,000 admissions (-1.9%). Attendance at cinemas totaling between 450,000 and results

68 700,000 admissions rose 9.9% between 2016 and 2017 and 1.5% for those with between 40,000 and 80,000 admissions. In 2017, 47.5% of admissions were recorded in movie theaters with 450,000 admissions or more. Movie theaters according to the number of admissions 1 fewer than 40,000 admissions movie theaters screens seats admissions (in millions) average number of admissions per movie theater ,312 1, , , ,289 1, , , ,285 1, , ,183 trend 17/16-0.3% -1.8% +1.4% -1.9% -1.6% share of total in % 25.4% 27.0% 9.3% - from 40,000 to 80,000 admissions , , , , , ,894 trend 17/ % +7.4% +9.4% +1.5% -0.5% share of total in % 10.3% 9.6% 6.8% - from 80,000 to 200,000 admissions , , , , , ,499 trend 17/ % +2.4% -1.9% -1.9% share of total in % 16.2% 13.4% 13.4% - from 200,000 to 450,000 admissions , , , , , , , , ,320 trend 17/ % +1.9% +0.9% -0.0% -1.3% share of total in % 20.6% 19.1% 23.0% - from 450,000 to 700,000 admissions , , , , , ,943 trend 17/ % +12.1% +13.1% +9.9% +0.6% share total in % 13.5% 14.6% 18.8% - 700,000 admissions and more , ,045, , ,045, , ,056,742 trend 17/ % -9.5% -9.2% -10.0% +1.1% share of total in % 14.1% 16.2% 28.8% - 1 Provisional data for Source: CNC. 68 results 2017

69 60% of admissions were at multiplexes In 2017, 219 multiplexes (movie theaters with 8 screens and more) were active in France, eight of which opened in the year. The number of creations was slightly greater than the average over the past 10 years (six openings on average every year). Three movie theaters became multiplexes due to an increase in their number of screens: the Grand Palace in Saumur (49) expanded from six to nine screens and the Comoedia in Lyon (69) also expanded from six to nine, while the UGC Saint Jean in Nancy (54) expanded from six to eight. 10.7% of French movie theaters were multiplexes in Multiplexes accounted for 42.4% of screens and 44.3% of seats. Multiplexes had massive attendance figures: 60.1% of admissions were in multiplexes in 2017 (59.7% in 2016). In all, multiplex attendance fell 1.1% on 2016, versus -1.8% for all movie theaters. On average, a multiplex had 11 screens and 2,264 seats in More than half of the movie theaters were single-screen The total number of French movie theaters included 1,159 single-screens in 2017 (19.6% of screens and 56.6% of movie theaters). These movie theaters accounted for 22.5% of seats and 8.6% of admissions. The 668 movie theaters with 2 to 7 screens accounted for 38.0% of the screens and 33.2% of the seats in They accounted for 31.3% of total admissions for the year. Multiplexes (8 or more screens) opened in 2017 cinema operator town or city urban area date opened screens seats CGR Clermont- Ferrand Val Arena CGR Royal Pic Saint Loup Pathe CGR My Place Sarcelles Société d'exploitation Cinéma du Pic Saint Loup (Mégarama) Les cinemas GAUMONT- PATHE Clermont- Ferrand Saint-Gély-du- Fesc Clermont- Ferrand Montpellier May ,218 September ,480 Massy Paris October ,894 CGR Sarcelles Paris October ,817 CGR CGR Villefranchesur-Saône Villefranche-sur- Saône Lyon November ,749 Megarama Megarama Montigny-lès- Cormeilles Paris November ,861 Cap Cinema Nimes CGR Nîmes Nîmes November ,610 CGR La Sucrerie CGR Abbeville Abbeville December ,209 Source: CNC. results

70 Exhibition results for multiplexes (cinemas with 8 or more screens) 1 number movie theaters screens seats admissions (in millions) average number of admissions per movie theater , , , , , , , , , , , , , , ,562 trend 17/ % +4.2% +3.6% -1.1% -5.6% share of total (%) Provisional data for Source: CNC. Movie theaters by number of screens in movie theaters screens seats admissions average number of admissions per movie theater 1 screen 1,159 1, , % 15,537 2 to 3 screens 432 1, , % 54,119 4 to 5 screens , % 141,859 6 to 7 screens , % 245,489 8 to 11 screens 118 1, , % 377, screens or more 101 1, , % 805,330 Total 2,046 5,913 1,118, % 102,346 1 Provisional data. Source: CNC. 3D digital projectors in 1,221 movie theaters At the end of December 2017, 1,221 active movie theaters had at least one 3D digital projector in France, i.e. 59.7% of the total number of movie theaters (59.2% at the end of 2016). 23 mobile units were equipped for this type of projection in 2017 (22 in 2016). 17.0% of movie theaters with at least one 3D digital projector in 2017 were multiplexes (16.4% in 2016) and 45.0% were single-screen (45.5% in 2016). Although 94.5% of multiplexes had at least one 3D digital projector in late 2017, the equipment rate reached 75.4% for movie theaters with 4 to 7 screens, 66.2% for movie theaters with 2 and 3 screens and 47.5% for single screens. In terms of exhibition category, 51.5% of movie theaters equipped with at least one 3D digital projector recorded fewer than 40,000 admissions in 2017 (49.0% in 2016). Conversely, 4.6% of equipped movie theaters achieved 700,000 admissions or more (5.2% in 2016). 98.2% of movie theaters with 700,000 or more admissions had at least one 3D digital projector at the end of 2016, compared to 48.9% of establishments with fewer than 40,000 admissions. 70 results 2017

71 Theaters equipped with 3D digital projectors movie theaters share of total , , , , , trend 17/ % +0.4 pt Source: CNC - Cinégo - Manice. results

72 Major cinema operators Cinema operators The 10 companies that garnered more than 1% of the annual box-office receipts in 2017 operated 2,497 screens, or 42.2% of the total number of active screens. They accounted for 58.8 % of admissions in Les Cinémas Gaumont Pathé operated 783 screens, or 13.2% of the national total. At 9.0% of the total (531 screens), CGR was the second largest operator. In third place, UGC had 415 screens (7.0% of active screens). number of screens Cap'Cinéma % 2.6% 2.8% 2.7% 2.6% CGR % 7.8% 8.1% 8.1% 9.0% CinéAlpes % 1.9% 2.0% 1.9% 1.8% Les Cinémas Gaumont-Pathé % 13.8% 13.4% 13.2% 13.2% Kinépolis % 1.5% 2.1% 2.2% 2.2% Megarama (Lemoine) % 1.6% 2.0% 2.1% 2.2% MK % 1.2% 1.1% 1.1% 1.2% SAS Cinéville % 1.7% 1.8% 1.8% 1.8% Société d'exploitation Grand Ecran % 1.0% 1.1% 1.2% 1.2% UGC % 7.5% 7.0% 6.7% 7.0% subtotal 2,157 2,300 2,373 2,405 2, % 40.7% 41.3% 41.2% 42.2% total 5,589 5,647 5,741 5,842 5, % 100% 100% 100% 100% number of theaters Cap'Cinéma % 1.1% 1.1% 1.1% 1.1% CGR % 2.2% 2.3% 2.3% 2.6% CinéAlpes % 1.0% 1.1% 0.9% 0.9% Les Cinémas Gaumont-Pathé % 3.6% 3.5% 3.5% 3.4% Kinépolis % 0.3% 0.5% 0.5% 0.5% Megarama (Lemoine) % 0.8% 1.0% 1.1% 1.1% MK % 0.6% 0.6% 0.6% 0.6% SAS Cinéville % 0.6% 0.6% 0.6% 0.6% Société d'exploitation Grand Ecran % 0.4% 0.4% 0.4% 0.4% UGC % 2.1% 1.8% 1.8% 1.9% subtotal % 12.6% 12.9% 12.9% 13.2% total 2,027 2,020 2,033 2,044 2, % 100% 100% 100% 100% 1 Exhibitors earning more than 1% of the box-office receipts for Provisional data for On November 30, 2017, CGR acquired the Cap'Cinéma group, except two establishments located in Blois. Source: CNC. 72 results 2017

73 Admissions of major cinema operators 1 admissions Cap'Cinéma % 2.4% 2.4% 2.6% 2.4% CGR % 8.7% 8.7% 8.9% 9.2% CinéAlpes % 2.2% 2.3% 2.2% 2.2% Les Cinémas Gaumont Pathé % 24.2% 23.5% 22.1% 21.6% Kinépolis % 2.9% 3.5% 3.2% 3.3% Megarama (Lemoine) % 1.6% 1.8% 2.1% 2.1% MK % 2.2% 2.1% 2.1% 2.1% SAS Cinéville % 2.3% 2.4% 2.5% 2.5% Société d'exploitation Grand Ecran % 0.8% 0.8% 0.9% 1.0% UGC % 13.9% 13.1% 12.2% 12.4% subtotal % 61.1% 60.7% 58.7% 58.8% total % 100% 100% 100% 100% 1 Exhibitors earning more than 1% of the box-office receipts for Provisional data for On November 30, 2017, CGR acquired the Cap'Cinéma group, except two establishments located in Blois. Source: CNC. Les cinémas Gaumont Pathé, leading movie theater operator. Definition of a scheduling group When cinema scheduling is not secured directly by owner companies, it is conducted by a scheduling group or alliance. It should be noted that certain groups and alliances program the screens they own. In 2017, the eleven groups and approved national agreements programmed 3,119 screens, or 52.7% of all screens. In 2016, the nine national scheduling groups provided programming for 43.5% of the base (2,543 screens). Les Cinemas Gaumont-Pathé programmed the largest number of screens: 855 in National scheduling groups 1 number of screens % of total screens Agora Cinémas CinéDiffusion Exanthus Les Cinémas Gaumont-Pathé Les films de la Rochelle (CGR) GPCI MC Micromegas NOE Cinema UGC VEO Provisional data for Source: CNC. results

74 2.5. Feature film production 2017 key figures: 1.3 billion of investment in feature film production (-4.4% compared to 2016) 300 approved films (+17 films compared to 2016) 177 wholly French films (+18 films compared to 2016) 123 films in international co-production with 48 different countries (-1 film compared to 2016) Production financing Methodology The data presented relates to the production of French films approved by the CNC in 2017 (investment approval or production approval for films for which investment approval is not required). Films financed by a French producer but which cannot be described as European works as well as films which do not call on any regulated funding nor financial support from the CNC and whose production is not completed are excluded. Feature film production rose to 300 approved films. High levels of French film production 300 full-length feature films were approved by the CNC in 2017, an increase of 17 compared to In 2017, the number of French-initiative films produced was stable at 222 films (+0.5%). The number of foreign-majority co-productions rose by 25.8% to 78 films, the highest level since The number of wholly French films was 177 in 2017, compared with 159 in Frenchinitiative films approved in 2017 were made as official co-productions with other countries (62 in 2016). In 2017, the proportion of French-initiative films shot in French was 92.8%, as in Frenchinitiative films were shot in a foreign language. Of these films, six were shot in English. Number of approved films Frenchinitiative films of which wholly French Films and coproductions foreign majority films total approved films structure 74.0% 59.0% 15.0% 26.0% 100.0% trend 17/ % +11.3% -27.4% +25.8% +6.0% Source: CNC. 74 results 2017

75 At 1,088.9 million in 2017, investments in French-initiative films fell by 9.9%. Investment in French-initiative films dropped by 9.9% With 1,088.9 million in 2017, investments in French-initiative films were down 9.9% compared to This decrease was mainly due to the exceptional nature of 2016, which included two highbudget films: Valerian and the City of a Thousand Planets ( million) and The Lake ( 66.2 million). Between 2008 and 2017, total investment in French-initiative films decreased by an average of 1.6% per year. French investment in French-initiative films amounted to 1,034.3 million, a retreat of 8.0% in At 54.6 million in 2017, foreign investment in French-initiative films was down 35.8% on This decline in investment was also reflected in a decline in the number of films (-17 titles). Over ten years, this investment fell by 4.8% annually on average. Total financing for approved films (millions of ) French-initiative films foreign majority films approved films French investment foreign investment total French investment foreign investment total French investment foreign investment total , , , , , , , , , , , , , , , , , , , , , , , , , , , , structure trend 17/16 Source: CNC. 95.0% 5.0% 100.0% 22.3% 77.7% 100.0% 81.9% 18.1% 100.0% -8.0% -35.8% -9.9% +30.5% +33.7% +33.0% -6.6% +7.3% -4.4% Average budget down to 4.90 million in 2017 The average budget of French-initiative films decreased by 10.3% compared to 2016, standing at 4.90 million in This drop was due to the presence in 2016 productions of Valerian and the City of a Thousand Planets by Luc Besson and The Lakeby Steven Quale. Without these films in 2016, the average budget of French-initiative films would have risen 13.7% in % of French-initiative films had a budget below 4 million. results

76 Average budget for French initiative films (millions of ) ,4 5,5 5,5 5,5 5,1 5,1 4,9 4,9 4,4 3, Source: CNC. Documentary production remains high With 37 out of the 43 approved films (41 out of 44 in 2016), the number of French-initiative documentaries remained at a high level in The average budget for French-initiative documentaries amounted to 0.69 million (+39.3% compared to 2016). Fewer animated films In 2017, five animated films, all of French initiative, were approved (five fewer than in 2016). The average budget for French-initiative animated films was 5.89 million (-18.8% compared to 2016). Number of approved films by genre fiction films of which FIF documentaries of which FIF animated films of which FIF total of which FIF French-initiative films. Source: CNC. Stability in the number of international co-productions In 2017, 123 films were co-produced with 48 foreign investors (124 with 40 partners in 2016). International co-productions represented 41.0% of all approved films in 2017, compared to 43.8% in Funding (French and foreign) allocated to international co-productions fell by 20.2% to million. There were 45 French majority co-produced films in 2017, compared to 62 in At million, total investments in these films decreased by 46.6%. In 2017, the average budget for French majority co-produced films amounted to 4.29 million, a drop of 26.4% compared to 2016 ( 5.84 million). At 78 titles in 2017, the number of foreign majority co-produced films rose by 16 titles compared to foreign investors helped fund the production of these films in 2017 (33 partners in 2016). The average budget of films majority co-produced by a foreign country was 3.06 million in 2017, an increase of 5.7% compared to results 2017

77 123 films were co-produced with 48 foreign investors in International co-productions in 2017 French majority coproductions foreign majority coproductions number of films French investment ( millions) foreign investment ( millions) total investments ( millions) Source: CNC. Main associate countries for French majority co-productions (number of films) total Belgium Germany Switzerland Luxembourg Canada Italy Israel Portugal Spain Source: CNC. Map of 57 co-production agreements in 2017 Source: CNC. results

78 Number of films co-produced in 2017 Europe Outside Europe Germany 24 South Africa 2 Austria 3 Algeria 1 Belgium 38 Argentina 1 Bulgaria 3 Australia 1 Croatia 1 Brazil 2 Denmark 1 Burkina Faso 1 Spain 12 Canada 4 Finland 2 Chile 2 Georgia 1 Colombia 1 Greece 8 India 1 Hungary 1 Israel 3 Iceland 1 Lebanon 1 Italy 11 Morocco 1 Lithuania 2 New Zealand 1 Luxembourg 5 Palestine 1 Poland 6 Tunisia 2 Portugal 6 Turkey 5 Czech Republic 3 Romania 2 United Kingdom 3 Russia 3 Serbia 2 Sweden 2 Switzerland 11 Ukraine 2 Source: CNC. Increased diversity in production In 2017, the production of French-initiative films was marked by an increase in the number of films with a budget of between 7 million and 10 million (+11 films), and the number of films with a budget of between 2 million and 5 million (+17 films), and by the decline in the number of films whose budget was less than 1 million (-19 films). Films with budgets exceeding 7 million accounted for 22.1% of French-initiative films in 2017, compared with 18.1% in Films with a budget of less than 1 million represented 21.6% of French-initiative films in 2017, compared with 30.3% in French initiative films by budget 78 results over 10 million between 7 million and 10 million between 5 million and 7 million between 4 million and 5 million between 2 million and 4 million between 1 million and 2 million under 1 million total Source: CNC.

79 First and second films 72 French-initiative first films were approved in 2017, compared to 80 in % of Frenchinitiative films approved in 2017 were first films, compared to 36.2% in The average budget for a first French-initiative film amounted to 2.67 million in 2017 (+7.3% compared to 2016). In 2017, 40 French-initiative films were second films (six more titles than in 2016), i.e. 18.0% of all approved French-initiative films (15.4% in 2016). The average budget for second films totaled 4.63 million, up 15.3% on First and second films first films second films total % of FIF 1 total % of FIF trend 17/ % -3.8 pts +17.6% +2.6 pts 1 French-initiative films. Source: CNC. 72 first films in or 32.4% of approved French-initiative films. Methodology In the following tables, the "French producers' contributions" line corresponds to the portion of financing taken on by production companies to cover film budgets. This includes whatever remains to be financed, either by obtaining additional funding that was not identified at the time of approval, or by keeping production costs below the projected budget. Beyond pre-financing, the "French producers' contributions" line corresponds to the financial risk assumed by the producers regarding future revenue from the various modes of exhibition of the films. This line can therefore also specifically include the cinema tax credit, any deferred salaries and general expenses or cash contributions. Increase in investment by TV channels (+13.3%) French producers' contributions fell by 17.8% between 2016 and 2017 to stand at million (34.8% of budgets), which is the second highest level since 1994 (first year of the statistical series) after the record high in Investments by TV channels in the financing of French-initiative films (pre-purchases + co-production investment) rose substantially: +13.3% in 2017 to million. The share of funding contributed by TV channels rose 6.5%, from 25.4% in 2016 to 31.9% in In 2017, authorization agreements (for theater releases, video releases and exhibition in foreign markets) for French-initiative films decreased by 29.5% to million. Authorization agreements financed 16.3% of the budgets of French-initiative films in 2017, compared to 20.9% in Public funding (automatic support and selective support from the CNC for regional aid) rose by 17.3% to million and accounted for 8.3% of financing for French-initiative films in 2017, compared to 6.4% in The contribution of local government authorities (including contributions results

80 from the CNC) to the financing of French-initiative films fell by 2.6% in 2017 and attained 1.8% of total budgets. The share of SOFICAS in the financing of French-initiative films was 3.8% in 2017 (+1.4 points compared to 2016). The contributions of SOFICAS rose in 2017 (+40.1% compared to 2016) and amounted to million. In 2017, support for public financing rose by 17.3% to million. Estimated financing for French-initiative films (%) French investment French producers' contributions SOFICA contributions automatic support from the CNC CNC's selective scheme and regional financing TV channels authorization agreements foreign investment foreign authorization agreements (foreign share) total French producers' contributions were calculated by subtracting the sum of identified financing from the budget. 2 Automatic support collected by films during the year in which they were approved. 3 Regional financing including CNC contributions. 4 Co-production investment + pre-purchases. 5 Theaters + videos + foreign markets. Updated data. Source: CNC. Methodology The results only show investments in films approved by the CNC in 2017 (investment approval or production approval when investment approval was not required). This time frame is the reason the financing totals submitted by the TV channels to the CSA (the French Television Council) may differ somewhat. Changes are therefore to be considered with the usual precautions, especially with regard to the channels' production obligations. Increased number of films financed by the channels In 2017, television channels (pay and free) financed 193 films (64.3% of approved films), including 165 French-initiative ones (74.3% of French-initiative films approved). 34 French-initiative films were funded by a single TV channel in 2017 (32 in 2016). Conversely, three films were funded by five channels (four in 2016). Television channels funded 193 films in total i.e. 64.3% of approved films. Rise in investments by FTA channels (+21.7%) In 2017, the share of FTA channels in total investments by channels (free and paid) rose from 39.6% to 41.8% to stand at million (+21.7%). In 2017, 65.5% of FTA channel investments went toward the pre-purchase of broadcasting rights (64.8% in 2016). The co-production investment share dipped to 34.5% (35.2% in 2016). This increase in investments led to an increase in the number of films (23 more than in 2016). In 2017, FTA channels (6ter, Arte, C8, France 2, 80 results 2017

81 France 3, France 4, M6, NT1, TF1, TMC and W9) funded 128 films in total including 117 Frenchinitiative ones, i.e. 42.7% of approved films and 52.7% of French-initiative films. 84 French-initiative films were financed by a single FTA channel. Conversely, three films were financed by three FTA channels in On average, these channels contributed 1.19 million to the films they financed in 2017 (as in 2016): 1.24 million for French-initiative films ( 1.25 m in 2016) and 0.59 million for minority coproductions ( 0.32 million in 2016). TF1 was the leading FTA channel in terms of contributions, ahead of France 2 and France 3. In 2017, it accounted for 30.9% of the contributions of FTA channels, down sharply compared to 2016 (in that year, the channel notably pre-financed Valerian and the City of a Thousand Planets). In 2017, 43 films were pre-purchased by the new FTA DTT channels (6ter, C8, France 4, NT1, TMC and W9), 42 of which were of French initiative (33 films, all of French initiative in 2016). These channels contributed million ( 7.60 million in 2016), or 307,700 per film on average ( 230,300 in 2016). Their investments covered, on average, 3.4% of the budgets of the films they pre-purchased in 2017, compared to 2.9% in The DTT channels continued to play a limited role in funding approved films. Only 6 channels invested, in a sum of million or 8.7% of all contributions from FTA channels. The FTA channels financed a total of 128 films and accounted for nearly 42% of all investment by channels. FTA channels' financing of approved films in TF1 France 2 France 3 M6 Arte DTT 2 total number of films total contributions ( millions) pre-purchases ( millions) co-productions ( millions) average contribution per film ( millions) average budget for the films concerned ( millions) % of films' budgets films were financed simultaneously by one FTA channel and three films by three FTA channels. 2 In 2017, six FTA DTT channels invested: 6ter, C8, France 4, NT1, TMC and W9. Source: CNC. results

82 Free TV channel contributions 1 number of films of which FIF 2 coproductions ( millions) prepurchases ( millions) total contributions ( millions) average contribution per film ( millions) average budget for the films concerned ( millions) % of budgets of the films concerned trend 17/ % +19.4% +19.2% +23.1% +21.7% -0.1% -19.7% +3.2 pts 1 Free TV channels whose investments were registered: 6ter, Arte, C8, France 2, France 3, France 4, France 5, France Ô, Gulli, HD1, M6, NRJ12, NT1, TF1, TMC and W9. 2 French-initiative films. Source: CNC. Investments by FTA channels in film production rose 21.7% in 2017, to million while the number of films also increased, by 21.9% (+23films). Methodology Data on pay channels do not include price indexations calculated on theater receipts, or films financed by a pay channel and without regulated financing, which are not included in these statistics. Higher total investments by pay channels In 2017, investments by pay channels (Canal+, Ciné+, OCS and TV5) rose by 11.1% to million. The number of pre-purchased films was also up, by 18.0% to 177 films in total (59.0% of approved films), including 154 of French initiative (69.4% of French-initiative films). 38 French-initiative films were pre-purchased by a single pay channel in 2017 and 113 films by two pay channels. Three films were pre-purchased by three pay channels in 2017 (1 in 2016). The average budget for French-initiative films financed by pay channels reached 6.46 million in They contributed, on average, 1.31 million to the French-initiative films they financed and covered 20.3% of their budget. In 2017, Canal+'s share in the total fell to its lowest level of the decade at 72.7%. OCS accounted for 17.8% of the contributions by pay broadcasters, its highest level since 2008 (year of its first participation in the production of approved films). Pay channels pre-purchased 177 films in total, or 59.0% of approved films. 82 results 2017

83 Pay channel financing of approved films in Canal+ Ciné+ OCS other pay channels 2 films of which FIF pre-purchases (millions of ) average pre-purchase per film (millions of ) average budget for the films concerned (millions of ) % of films' budgets films were financed simultaneously by two pay channels, three films by three pay channels. 2 In 2017, TV5 invested in feature film production. 3 French-initiative films. Source: CNC. Participation by pay channels 1 Total films of which FIF 2 pre-purchases ( millions) average contribution per film ( millions) average budget for the films concerned ( millions) % of budget of films concerned trend 17/ % +9.2% +11.1% -5.8% -23.5% +3.6 pts 1 Pay channels whose investments were registered: 13 ème Rue, Canal+, Canal J, Ciné+, OCS, TPS and TV5. 2 French-initiative films. Source: CNC. Films with no TV channel financing In 2017, 57 French initiative films (71 films in 2016) did not receive any funding from a TV channel or over a quarter (25.7%) of approved French-initiative films. Nearly half of the French-initiative films without TV-channel funding were first films (47.4%). In 2017, the vast majority of the Frenchinitiative films without TV-channel funding had budgets of less than 2 million (86.0%) and 68.4% had a budget below 1 million. The average budget for French-initiative films without TV-channel funding was 1.12 million versus 4.90 million for all French-initiative films. The number of days of outdoor shooting in France rose by 12.4% in Methodology Animated films and documentaries were excluded from the analysis concerning shooting time. 6,560 days were spent shooting French-initiative fiction films A total of 6,560 days were spent shooting French-initiative fiction films, i.e. up 7.9% on 2016 for 10 more films (+5.9%). This increase mainly concerned the number of days of outdoor shooting in France, which increased by 12.4% to 4,755 days in On the other hand, the number of days of shooting abroad decreased by 4.5% to 1,496 days. These trends reflected the impact of the results

84 reform of the film tax credit which came into effect in The average duration of shooting for a French-initiative film was 36 days (as in 2016). Number of shooting days by location days spent shooting in France 4,996 4,418 4,959 5,002 4,243 4,602 4,359 4,731 4,514 5,064 of which: outdoors in France 4,500 4,200 4,657 4,693 3,979 4,229 4,072 4,550 4, studios in France days of shooting abroad 1,639 1,474 1,962 1,877 1,821 1,497 1,359 2,116 1,566 1,496 Total 6,635 5,892 6,921 6,879 6,064 6,099 5,718 6,847 6,080 6,560 Source: CNC. Also see -the study La production cinématographique en the statistical series on feature film production 84 results 2017

85 Production costs Methodology The data below reflects actual production costs, i.e. after shooting ended. It is taken from the production approval of the CNC. This scope is different from that of the annual review of feature film production, which is based on the year of investment approval. On average, there is an interval of 18 months between these two types of approval. Only 5.3% of the films that received production approval in 2017 received preliminary investment approval in the same year; 40.6% in 2016, 43.0% in 2015, 6.3% in 2014 and 4.8% between 2008 and As a result, only 45.9% of films that received production approval in 2017 were able to benefit from the latest adjustments to the film tax credit. Increase in number of films and expenditure in 2017 In 2017, 217 French-initiative films obtained production approval, 15 more than in 2016 and the highest level since the study was launched in These films totaled 1, million in production expenses, an increase of 4.8% on Stable expenditure abroad In 2017, million was spent abroad, all genres combined, a stable amount compared to 2016 (+0.2 %). The number of films that incurred expenses abroad, rose: 148 films, all genres combined, 12 more than in Fiction and animated films accounted for 95.9% and 3.1%, respectively, of total expenditure outside France (68.0% and 28.2% in 2016). Of the 186 fiction films that received production approval in 2017, 130 films, or 69.9%, involved expenditure abroad (67.7% in 2016). The total volume of spending outside France increased by 32.0% in 2017 to million. In 2017, 30 fiction films entailed more than 2 million in expenditure outside France compared with 19 in of the 28 French-initiative documentaries approved in 2017 recorded expenditure abroad, i.e. 57.1% of approved documentaries. This extranational expenditure represented 13.0% of the total costs of the genre. By value, extranational expenditure (-71.9%) decreased slightly more than that made in France (-69.4%). Production expenditure in 2017 (%) Animation foreign 21,9 Fiction foreign 45,3 France 54,7 Documentary foreign 13,0 France 78,1 France 87,0 Source: CNC. results

86 529 million in cinema tax credit in ten years Over the whole period , the total amount of tax credit reached million, or 20.2% of total eligible expenditure and 9.8% of the total cost of the beneficiary fiction films. In 2017, the total amount of tax credit on fiction films was million or an average amount of 770,000 per beneficiary film. In 2017, the tax credit represented on average 14.2% of the cost of films which benefited from it. Average cost of production of a fiction film in 2017: 5.20 million In 2017, the main spending structure was relatively stable compared with Salary expenses (artistic fees, staff costs, producers' salaries, cast expenses and social security payments) still made up 57.8% of the average cost of a film (58.4% in 2016). Within this group, the main production costs were: staff (21.0% of the total cost in 2017), payroll taxes (12.3%) and cast (10.4%). Shooting expenses represented 31.7% of fiction film production costs in 2017 (30.7% in 2016) and technical expenses accounted for 10.5% (versus 10.9% in 2016). The average cost of production for a documentary film in 2017: 0.65 million 28 French-initiative documentaries received production approval in 2017, eight films fewer than in The total cost of these films came to million, a decrease of 69.7% compared to This decrease is explained by the presence, in 2016, of the documentary Les Saisons, which had an exceptionally high cost of million. In 2017, the share of items related to remuneration was fairly similar for documentary and fiction (58.0% and 57.8% respectively of the total cost). On the other hand, the share of shooting expenses was lower for documentaries (20.8%, compared to 31.7% for fiction), while the share of technical expenses was higher (21.4% for documentaries, 10.5% for fiction). Average cost of production of an animated film in 2017: 4.97 million Between 2008 and 2017, 57 French initiative animated films were approved for production. Production expenses for these films totaled million. In the ten years studied, staff costs accounted for the highest proportion of expenditure (23.9% of total costs). This was followed by technical resources (23.2%). Next came miscellaneous costs (17.5%). Cast costs (voice overs) represented million or 1.9% of total production costs for the genre during the period results 2017

87 Distribution of the production costs for fiction films (millions of ) structure trend 17/16 pay and salaries % 30.6% artistic fees % 45.2% staff % 35.3% producer compensation % 12.3% cast % 24.0% social security payments % 26.3% technical % 27.0% technical equipment % 26.3% film and developing % 29.8% shooting % 36.3% sets and wardrobe % 46.1% transport, payments, stage management % 33.4% insurance and related costs % 31.5% miscellaneous % 33.5% total % 32.0% 1 The "miscellaneous" line includes general expenses and unexpected expenditure. Base: French-initiative fiction films. Source: CNC. Also see -the study Les coûts de production des films en the statistical series on the production costs of films results

88 Financing plans Methodology The following analysis is based on the final financing plans for French-initiative films that have obtained production approval. This scope of films makes it possible to take account of all the diversity of financing and, in particular, the cinema tax credit. It is different from that concerning the analysis of projected financing for films based on investment approval (before the first day of shooting). Final financing plan for films Over the period, television channel funding (34.3% in 2013 compared with 36.6% in 2017) grew, as did the share of public support (CNC support, regional aid, cinema tax credit) rising from 9.9% in 2013 to 15.0% in The share of the tax credit doubled over the period: 4.7% in 2013, compared with 9.1% in The share of foreign financing was stable. The share of funding in the form of an authorization agreement decreased (21.9% in 2013 against 13.1% in 2017). Producers' contributions reached 16.9% in Final financing of French-initiative films (%) French producers' contributions tax credit SOFICA CNC support and regional financing TV channels' contributions France authorization agreements other French financing foreign financing total Base: 1,005 films of French initiative with production approval. Source: CNC. 88 results 2017

89 Short films produced French short films Average length of short films: 21 minutes In 2016, 219 French short films were candidates for post-production funding (262 films in 2015) and 90 films received production funding (81 films in 2015). More than two-thirds (69.9%) of the short films produced in 2016 were fiction (65.9% in 2015), 17.2% animation works (18.7% in 2015) and 12.9% creative / experimental documentaries (15.5% in 2015). The average length of a short film was 21 minutes in 2016 (20 minutes in 2015). Animated films are much shorter (by 11 minutes on average in 2016). On average, the duration of shooting a short film was 31 days in 2016 (30 days in 2015). Average production cost of a short film: 91.6 K In 2016, short films had an average production cost of 91.6 K ( 85.3 K in 2015), the highest since % of short films cost less than 100 K in 2016 (66.2% in 2015). The cost of a short film varies according to genre. In 2016, it averaged 58.7 K for a documentary, 84.3 K for creative / experimental documentaries, 84.3 K for fiction and K for animation. CNC support represented 30% of funding In 2016, producers provided 24.0% of the funding (27.7% in 2015) and TV channels 8.8% (10.1% in 2015). In parallel, CNC aid represented 30.2% of production financing (27.4% in 2015) and aid from local government authorities 15.0% (17.2% in 2015). number of films average cost ( K) Reference year: year of obtaining the exhibition license in theaters. Source: CNC. Also see -the study Le court métrage en the statistical series on short films results

90 subscriptions Primary sources of funding for film production in 2017 (million of ) television service distributors FTA television channels pre-purchases m 2 pay channels 44.0 m 2 SOFICA TV service tax (TST) m 5 video/vod tax m pre-purchases 99.4 m 2 VoD 7.6 m regional funds cinema admissions tax (TSA) m m m 9 co-productions 52.4 m m 8 FILM PRODUCTION publishers video retail m 3 public theaters contributions m 2 use & operation agreements m distributors' remuneration m distributors international sellers advertising 7 95 m box office receipts 1,380.6 m consumption foreign coproducers 62.2 m 1 advertisers collected funds from financing made in 2017 and January 2018 (cinema and television). SOFICAs must invest 90% of their collected funds into films or television production. 2 Financing for approved films in Retail of physical video media (films), all taxes included. 4 Theater distribution and video release agreements (in France and abroad). 5 Sales tax assessed to television service publishers and distributors. 6 Estimated 100% video on demand sales on non-specialized platforms, all taxes included. 7 Gross advertising investment after rabate. 8 Estimated budget of film support in the agreements concluded between the CNC and the local authorities in CNC's selective support and automatic support mobilized by the films approved in Tax on final turnover on video and video on demand, all genres included. Sources: Investment approvals delivered by the CNC. French advertising market in IREP. CNC revenues in Box office statements provided by cinema operators to the CNC. CNC-GfK video barometer. GfK-NPA Conseil VoD barometer; SEVN. 90 results 2017

91 3. TELEVISION results

92 3.1. The television audience 2017 key figures: TV viewing time in France: 3 hours 42 mins (-0.4% compared to 2016) 24.4% for fiction 17.4% for current affairs programs 9.9% for documentaries 5.5% for films 3.1% for children s programs In France, the television viewing time was 3 hours 42 mins per day in 2017 The television viewing time, which declined for the second year in a row, remained at a high level overall compared to the 1990s and 2000s. In 2017, the television viewing time among those aged 4 years and over was 3 hours 42 mins a day on average according to Médiamétrie. It was down one minute (-0.4%) compared to 2016 and eight minutes (-3.5%) compared to the record established in 2012 (3 hours 50 mins). Television viewing time includes consumption live on a television set, offline via a personal recording (since 2011) and through catch-up TV services (since 2014). Consumption on other screens (computer, phone, tablet, etc.) is not included. Television viewing time was down 6.2% among 4-14-year-olds and 3.9% among year-olds. The trend in viewing time differed according to age: it decreased in the under 50s whereas it increased among 50-year-olds and over. For 4-14-year-olds, the television viewing time was 1 hour 46 mins per day in It decreased by 7 minutes (-6.2%) compared to 2016 and by 32 minutes (-23.2%) compared to the 2011 record. In the age group, the television viewing time was 2 hours 54 mins per day in It decreased by 7 minutes (-3.9%) compared to 2016 and by 25 minutes (-12.6%) compared to the 2012 record. For those aged 50 and over, the television viewing time was 5 hours 12 mins per day in It increased by 5 minutes (+1.6%) compared to In 2017, the television viewing time reached a record for those aged 50 and over. On the other hand, it decreased for the sixth year in a row among 4-14-year-olds and for the fifth year in a row among year-olds. By comparison, the average daily television viewing time in 2017 was 3 hours 23 mins in the United Kingdom (-9 minutes), 3 hours 41 mins in Germany (-2 minutes) and 4 hours in Spain (+7 minutes). Live television viewing represented almost 91% of total television viewing The television set remained the principal medium for viewing television. Other viewing media (computer, tablet, telephone) and viewing methods for programs (including catch-up TV) are developing and represent consumption in addition to traditional practices. On the television set, the daily viewing time live was down 2 minutes at 3 hours 31 mins while the viewing of pre-recorded and catch-up programs increased by 1 minute to 11 minutes. At the same time, the daily television viewing time, whether live, pre-recorded or catch-up, on screens other than the TV (computer, tablet, telephone) was stable at 9 minutes. In total, television viewing time on all media (TV set, computer, tablet, and phone) whether live, pre-recorded or catch-up fell 1 minute compared to 92 results 2017

93 2016 to 3 hours 51 mins daily on average according to Médiamétrie. In 2017, live viewing on TV sets represented over 91% of total television viewing. The new uses of television (new media, new modes of consumption) represented 20 minutes of daily viewing time or 9% of the total. Daily television viewing time in France year viewing time h h h h h h h h h h42 ¹ As of January 3, 2011, the audience measurement incorporated delayed viewing of programs via a personal recording, up to 7 days after the date of initial broadcast of the programs. ² As of September 29, 2014, the audience measurement incorporated delayed viewing on TV sets via a catch-up TV service, up to 7 days after the date of initial broadcast of the programs. ³ As of January 4, 2016, delayed viewing via a personal recording and catch-up on TV sets was taken into account, whatever the date of initial broadcast of the programs. Source: Médiamétrie-Médiamat, persons aged 4 years and over. Methodology Breakdown of national channels by group: Groupe France Télévisions: France 2, France 3, France 5, France 4, France Ô, Franceinfo Groupe TF1: TF1, TMC, NT1, HD1, LCI Groupe M6: M6, W9, 6ter Groupe Canal+: Canal+, C8, CNews, CStar Groupe NRJ: NRJ12, Chérie 25 Groupe NextradioTV: BFMTV, Numéro 23, RMC Découverte In 2017, the audience share of traditional FTA channels fell below the 60% threshold The traditional FTA channels continued to lose viewers faced with the rise of the latest DTT channels. In 2017, the audience share of traditional FTA channels (TF1, France 2, France 3, Canal+, France 5, M6, and Arte) dipped 1.9 points versus 2016 to 58.6%. At the same time, the audience share of DTT/DTT HD channels rose 1.9 points to 31.2%, of which 21.2% (stable) for DTT channels (C8, W9, TMC, NT1, NRJ12, France 4, BFMTV, CNews, CStar, Gulli, France Ô), 9.1% (+1.3 points) for DTT HD channels (HD1, l Equipe, 6ter, Numéro 23, RMC Découverte, Chérie 25) and 0.9% (+0.6 points) for other DTT channels (LCI, Franceinfo). In 2017, the audience share of cable and satellite channels was stable at 10.0%. In ten years, the audience share of traditional FTA channels fell 18.4 points while the audience share of FTA channels launched between 2005 and 2016 grew threefold. For ten national channels, their audience share was lower in 2017 compared to M6 (-0.7 points to 9.5%) suffered the biggest drop ahead of Canal+ (-0.5 points to 1.2%). TF1 (20.0%) and France 2 (13.0%) lost 0.4 points each. CNews (0.6%) was down 0.3 points. France O (0.6%) dipped 0.2 points. The audience shares of Arte (2.2%), C8 (3.3%), NRJ12 (1.6%) and France 4 (1.8%) were down 0.1 points. TF1, France 2 and Canal+ thus recorded their lowest annual results

94 performance since the creation of Médiamat in M6 recorded its lowest audience share since The audience shares of France 3 (9.1%), CStar (1.2%), Gulli (1.6%) and Chérie 25 (1.1%) were stable. Eleven channels saw their audience shares rise. BFMTV (2.7%) and Numéro 23 (1.2%) recorded the strongest growth (+0.4 points each). 6ter (1.7%), RMC Découverte (2.1%) and LCI (0.6%) gained 0.3 points each. Three channels achieved a 0.2-point rise: France 5 (3.6%), TMC (3.2%) and L'Equipe (1.1%). The audience shares of W9 (2.6%), NT1 (2.0%) and HD1 (1.9%) increased by 0.1 points. France 5, BFMTV, HD1, L'Equipe, 6ter, Numéro 23, RMC Découverte and LCI recorded their best ever performance results. The audience share of all DTT channels amounted to 31.2% in In 2017, TF1 was the leading national channel ahead of France 2, M6, France 3, France 5, C8, TMC, BFMTV, W9, Arte, RMC Découverte, NT1, HD1, France 4, 6ter, NRJ12, Gulli, Canal+, CStar, Numéro 23, l Equipe, Chérie 25, CNews, France Ô, LCI and Franceinfo. By aggregating the audience for national channels by group, France Télévisions (-0.2 points to 28.4%) remained the leading French audiovisual company in 2017 ahead of the TF1 group (+0.3 points to 27.7%), the M6 group (-0.3 points to 13.8%), the Canal+ group (-0.9 points to 6.3%), the NextradioTV group (+1.1 points to 6.0%) including the Numéro 23 channel and the NRJ group (-0.1 points to 2.7%). FTA private channels accounted for 59.2% of the television audience (+0.3 points), compared to 30.6% for the FTA public channels (-0.3 points). The free channels made up 88.8% of the television audience (+0.5 points), compared with 11.2% for the pay channels (including Canal+). With 6 channels, France Télévisions remained the leading group for audience share in 2017, ahead of the TF1 group, which operates 5 FTA channels. Audience market share of national channels by group in 2017 (trend compared to 2016) NextRadioTV 6,0% (+1,1 pt) other channels 15,1% (+0,1 pt) groupe NRJ 2,7% (-0,1 pt) France Télévisions 28,4% (-0,2 pt) groupe Canal+ 6,3% (-0,9 pt) groupe M6 13,8% (-0,3 pt) groupe TF1 27,7% (+0,3 pt) Source: Médiamétrie-Médiamat, persons aged 4 years and over. 94 results 2017

95 National audience market share of the channels (%) National channels TF France France Canal France M Arte C W TMC NT1* NRJ France BFMTV CNews CStar Gulli France Ô n/a HD1* La chaîne l Equipe ter Numéro RMC Découverte Chérie LCI Franceinfo n/a 0.3 other channels total * In January 2018, NT1 and HD1 changed their names to TFX and TF1 Séries Films. ¹ Including channels which have not subscribed to audience measurement. ² Cable and satellite channels, local and foreign. Source: Médiamétrie-Médiamat, persons aged 4 years and over. results

96 National audience market share per groups of channels (%) 100% 75% 12,8 12,5 12,2 12,1 11,9 11,4 11,2 10,3 10,2 10,2 0,3 0,9 2,3 3,8 5,5 7,8 10,2 9,1 14,2 18,2 20,9 21,4 21,3 20,7 21,2 21,2 21,2 50% 77,0 25% 73,3 69,6 67,0 66,7 65,0 64,3 63,0 60,5 58,6 0% traditional FTA channels DTT channels DTT HD channels other DTT channels other channels Definition of aggregates: Traditional FTA channels: TF1, France 2, France 3, Canal+, France 5, M6, Arte. DTT channels: C8, W9, TMC, NT1, NRJ12, France 4, BFMTV, CNews, CStar, Gulli, France Ô. DTT HD channels: HD1, l Equipe, 6ter, Numéro 23, RMC Découverte, Chérie 25. Other DTT channels: LCI, Franceinfo. Other channels: Cable and satellite channels and channels which have not subscribed to audience measurement. Source: Médiamétrie-Médiamat, persons aged 4 years and over. Cinema and TV films are over-consumed on television In 2017, TV films constituted the leading genre of programs offered on national channels (23.2% of the offering in terms of hourly volume) ahead of current affairs programs (19.0%) and documentaries (16.5%). In terms of viewing, TV films (24.4% of the viewing time of TV viewers aged 4 years and over), current affairs programs (17.4%) and game shows (10.0%) were out in front (excluding advertising) followed by documentaries (9.9%). Films were viewed proportionally more on television (5.5% of viewing for 3.4% of the offering). Conversely, children's programs (animation and other programs) appeared proportionally less watched by all viewers compared to their share of the offer (3.1% of the consumption for 7.9% of the offer) because they are intended for a specific target. Overall, stock programs (TV films, feature films, documentaries and children's programs) constituted 51.0% of the program offering on national channels and 42.9% of the consumption of TV viewers aged 4 and over in Stock programs represented 51.0% of the program offering on national channels and 42.9% of consumption. 96 results 2017

97 Offering and television viewing by genre of programs in 2017 (%)¹ offering viewing films TV film game shows variety shows television news current affairs programs documentaries sports children's programs advertising other total ¹ On national channels (TF1, France 2, France 3, Canal+ unscrambled, France 5, M6, Arte, C8, W9, TMC, NT1, NRJ12, France 4, CStar, Gulli, France Ô, HD1, 6ter, Numéro 23, RMC Découverte and Chérie 25). Interpretation: in 2017, television news programs represented 2.2% of the offering of national channels in terms of hourly volume and 9.5% of the viewing time by TV viewers on these channels. Source: Médiamétrie-Médiamat, persons aged 4 years and over. Methodology Mediamat Thématik is the audience measurement for television of persons receiving an offering of channels via cable, satellite and ADSL, whether or not these people subscribe to the pay channels. Since March 2010, it has replaced the MediaCabSat survey, which measured the television audience in homes subscribing to cable or CanalSat (by satellite and ADSL). The results of the study are published twice a year and cover the following periods: January-June and September-February of the following year. 18.3% of households with TV sets subscribe to a pay offering In June 2017, the number of people living in a household which subscribed to a pay offer by cable, satellite or ADSL dropped 11.4% from June 2016 to 10.7 million, of which 8.3 million by CanalSat (-8.8%) and 2.5 million by cable (-19.5%). 18.3% of the population aged 4 years and over equipped with TV sets subscribed to a pay-tv offering (-2.4 points). Meanwhile, Médiamétrie counted 30.3 million people receiving television by ADSL (+6.0%). The television viewing time of people living in a home receiving an extended offering was lower than that for all French people owning a television set. It was 3 hours 37 mins, compared to 3 hours 48 mins for all households with TV, over the period running from January to June Of those people who subscribed to cable or CanalSat, the audience share of the traditional FTA channels was 53.3% (-2.8 points in a year), compared to 24.2% for the cable and satellite channels (-0.8 points) and 22.5% for the other channels (+3.6 points). Among all people receiving an extended offer of channels (whether or not subscribed to pay channels), the audience share of traditional FTA channels reached 56.2% (-2.8 points), versus 12.7% for cable and satellite channels (-0.5 points) and 31.1% for other channels (+3.3 points). The audience share of cable and satellite channels was 24.2% among subscribers to a pay offering. Of the 92 cable and satellite channels surveyed by Mediamat Thématik, Paris Première and TV Breizh shared top place for the channel with the highest audience share (0.6% each of all the persons receiving an extended offering) ahead of BeinSports 1, Téva and 13 e Rue (0.5% each) over the period running from January to June Concerning cable and satellite channels results

98 dedicated to cinema, the six Ciné+ channels achieved an aggregated audience share of 0.8%, versus 0.2% for TCM Cinéma and 0.1% for Paramount Channel. Audience market share of channels on cable, satellite and ADSL (%) traditional national broadcasters other channels 1 of which traditional cable and satellite Jan.-June Jan.-June March-June Jan.-June Jan.-June Jan.-June Jan.-June Jan.-June Jan.-June Jan.-June ¹ Cable and satellite channels, DTT, local, regional and foreign channels. Source: Médiamétrie-MédiaCabSat up to February 2010, then Médiamat'Thématik from March 2010, persons aged 4 years and above subscribed to a pay offering. total 98 results 2017

99 3.2. Films on television 2017 key figures: 2,426 different feature films were broadcast on television (-54 films compared to 2016) 1,215 films on FTA private channels 885 films on FTA public channels 357 films on Canal+ The offering of films on television Methodology The results are derived from a database which is common to the CSA (French Television Council) and the CNC (Centre national du cinéma et de l'image animée) which lists all of the feature films broadcast on FTA public channels (France Télévisions, Arte and LCP-AN), on FTA private channels (TF1, M6 and FTA DTT private channels) and on Canal+. Since December 12, 2012, six new High Definition channels have arrived on private FTA DTT: 6ter, Chérie 25, HD1, L Equipe 21, Numéro 23 and RMC Découverte. Since January 1, 2013, the survey of films broadcast on France Ô has been taken into account. However, details of prior broadcasts are not available. The list of works considered as feature films is determined by the CSA via Article 2 of Decree No of January 17, 1990: "The following constitute cinematographic works: 1 Works which have obtained an exhibition license within the meaning of Article 19 of the above-mentioned cinematographic industry code, with the exception of documentary works which have been the subject of a first broadcast in France on television. 2 Foreign works which have not obtained this license but have been the subject of commercial cinema exhibition in their country of origin". The nationality of a film is determined by the license issued by the CNC when such exists, without prejudice to the definitive status of a work of original French expression, nor that of a European work delivered by the CSA under the conditions laid down in Article 6-1 of Decree of 17 January, 1990 mentioned above. The broadcast rank follows the chronological order of the broadcasts. However, for multicast channels, a film broadcast repeatedly over a period of three months bears the same rank for each of these broadcasts. For Canal+, the period was extended from three months to six months on January 1, On free TV channels, the rank only lists the unscrambled broadcasts. On Canal+, it lists all the previous broadcasts, including unscrambled ones. In addition, the part devoted to Canal+ only concerns the broadcasting of films on the traditional channel (excluding Canal+ Cinéma, Canal+ Sport, Canal+ Family, Canal+ Décalé and Canal+ Séries). Broadcast schedules are defined as follows: a film whose broadcast begins between 20:30 and 22:30 comes under "prime time"; a film whose broadcast begins between 22:31 and 23:59 comes under the "second part of the evening"; a film whose broadcast begins between 0:00 and 06:59 comes under the "night". Finally, a film whose broadcast begins between 07:00 and 20:29 is shown during the "rest of the day". On Canal+, prime time begins between 18:00 and 23:00. As the database is subject to regular updates, some data may differ from previous publications. It is supplemented by audience data provided by Médiamétrie. results

100 Further decline in the offering of films on television In 2017, the offering of films on television (national FTA channels and Canal+) fell to 2,426 different feature films broadcast (-54 titles compared to 2016, i.e. -2.2%). 85.4% of these films were shown by national FTA channels, which broadcast 2,072 works, that is 35 fewer films than in 2016 (-1.7%) The FTA public channels (France Télévisions, Arte and LCP-AN) broadcast 885 different films in 2017 (-65 titles compared to 2016 or -6.8%) and the FTA private channels (TF1, M6 and the FTA DTT private channels) 1,215 films (+18 titles compared to 2016 or +1.5%). In 2017, Canal also reduced its offer by 35 titles to 357 films (-8.9%). Number of films broadcast on TV trend /16 France % France % France % France % France Ô 2 nd nd nd nd nd % France Télévisions % Arte % LCP-AN % FTA public channels % 6ter % C % Chérie % CStar % Gulli % HD % La Chaîne L Equipe % NRJ % NT % Numéro % RMC Découverte % TMC % W % Private FTA DTT ,062 1,078 1,162 1,044 1, % TF % M % FTA private channels ,221 1,248 1,340 1,197 1, % national FTA channels 7 1,734 1,831 1,827 1,840 1,836 2,131 2,160 2,196 2,107 2, % Canal % total 3 2,161 2,230 2,190 2,204 2,199 2,496 2,519 2,566 2,480 2, % 1 Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1 st, 2013; details of the channel's prior broadcasts are not available. 3 Total excluding repeat counts. 4 France Télévisions + Arte + LCP-AN (total excluding repeat counts). 5 In January 2018, NT1 and HD1 changed their names to TFX and TF1 Séries Films. 6 FTA DTT private + TF1 + M6 (total excluding repeat counts). 7 FTA public channels + FTA private channels (total excluding repeat counts). N.b.: Films broadcast on different channels in the same year are counted several times. If a film is broadcast on the same channel several times during the same year, it is only counted once. Source: CNC-CSA. 100 results 2017

101 Number of films broadcast on TV FTA public channels4 FTA private channels5 Canal+ 1 Start of broadcasting on free DTT channels on March 31, Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1 st 2013; details of the channel's prior broadcasts are not available. 4 France Télévisions + Arte + LCP-AN (total excluding repeat counts). 5 Private FTA DTT + TF1 + M6 (total excluding repeat counts). N.b.: Films broadcast on different channels in the same year are counted just once. If a film is broadcast on the same channel several times during the same year, it is only counted once. Source: CNC-CSA. 62 fewer first-run films on television in 2017 A total of 29.1% of the films broadcast on television (national FTA channels and Canal+) were firstrun films (31.0% in 2016), i.e. scheduled for the first time unscrambled. All channels combined, the share of French first-run films was 43.2%. In 2017, American films represented 27.3% of the offering of first-run films on television. The share of first-run films on FTA public channels increased to 34.0% (+1.8 points compared to 2016). Only 12.0% of films broadcast by FTA private channels were first-run films (146 films in 2017). This small share is explained by the scheduling policy of FTA DTT private channels, which mainly broadcast catalog films (91.9% of non-first-run films on FTA DTT private channels). On these channels, a film was scheduled unscrambled, on average, for the eighth time in 2017 (as in 2016). Canal+ screened 259 first-run films in 2017, i.e. 72.5% of its offering (77.0% in 2016). 29.1% of films broadcast on television were first runs; this share reached 34.0% on FTA public channels. Multicasting still stable The channels as a whole screened 2,426 different films resulting in 5,576 broadcasts. The frequency of multicasting remained stable overall. A film was broadcast on average 2.3 times in 2017 (as in 2016). Canal+, LCP-AN, Gulli, France Ô and CStar were the channels which used multicasting the most. Each film was screened over four times on average on Canal+ and LCP-AN and more than twice on Gulli, France Ô and CStar. France 2, France 3 and France 5 were the only results

102 channels not to use multicasting in All channels combined, 48.2% of all multicasts concerned French films (45.1% in 2016). Number of broadcasts of films on television trend /16 France % France % France % France % France Ô 2 nd nd nd nd nd % France Télévisions % Arte % LCP-AN % FTA public channels 3 1,575 1,526 1,496 1,468 1,392 1,552 1,622 1,546 1,550 1, % 6ter % C % Chérie % CStar % Gulli % HD % La Chaîne L Equipe % NRJ % NT % Numéro % RMC Découverte % TMC % W % FTA DTT private channels 1,106 1,165 1,266 1,330 1,336 2,005 1,988 2,167 1,997 1, % TF % M % FTA private channels 5 1,418 1,478 1,548 1,571 1,574 2,259 2,274 2,458 2,291 2, % national FTA channels 6 2,993 3,004 3,044 3,039 2,966 3,811 3,896 4,004 3,841 3, % Canal+ 1,947 1,902 1,824 1,840 1,929 1,936 1,883 1,876 1,821 1, % total 4,940 4,906 4,868 4,879 4,895 5,747 5,779 5,880 5,662 5, % 1 Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1 st, 2013; details of the channel's prior broadcasts are not available. 3 France Télévisions + Arte + LCP-AN. 4 In January 2018, NT1 and HD1 changed their names to TFX and TF1 Séries Films. 5 Private FTA DTT + TF1 + M6. 6 FTA public channels + FTA private channels. Source: CNC-CSA. A film rebroadcast rate that stabilized for the first time in ten years at 42.2%. The share of reruns reached a plateau It should be remembered that different channels can broadcast the same film in the same year. All channels combined, 11.4% of films were thus broadcast on two, or even three different channels, several months apart in 2017 (13.4% in 2016). Moreover, for ten years a phenomenon of rebroadcasting the same films from one year to another has been observed on the FTA channels. In fact, 42.2% of the films scheduled by the FTA channels in 2017 were already broadcast in 2016, 102 results 2017

103 a stable rate for the first time compared to the previous year. This figure was just 23.5% in This practice was more widespread on FTA DTT private channels. In fact, 52.1% of films scheduled by W9 in 2017 had already been broadcast by the channel in After W9, the channels repeat broadcasting the most films between 2016 and 2017 were TMC (38.8%) and NT1 (33.0%). Proportion of films broadcast two years running on national FTA channels 1 (%) ,5 27,1 31,1 31,8 34,2 34,7 41,0 41,7 42,2 42, All channels combined except Canal+. Source: CSA-CNC. 44.1% of films broadcast on TV were French In 2017, for all channels combined (national FTA channels and Canal+), French films represented 44.1% of the film offering on television. This share exceeded 50% on the channels of the France Télévisions group (59.0%), on LCP-AN (66.7%) and on Canal+ (55.2%). Some FTA private channels mainly offered American films, particularly the M6 group channels, those of the TF1 group and Gulli. In total, films from across the Atlantic represented 33.6% of the film offering in Arte offered a TV listing that mainly revolved around non-national European films (43.6%), while these films only represented 18.9% of the offering of other channels on average. results

104 Number of films broadcast on TV in 2017 according to country of origin 1 French films American films European films other films no. % no. % no. % no. % France France France France France Ô France Télévisions Arte LCP-AN FTA public channels ter C Chérie CStar Gulli HD La Chaîne L Equipe NRJ NT Numéro RMC Découverte TMC W Private FTA DTT ,064 TF M FTA private channels ,215 FTA national channels ,072 Canal total 2 1, ,426 1 The nationality of a film is determined by the license issued by the CNC when such exists, without prejudice to the definitive status of a work of original French expression, nor that of a European work delivered by the CSA under the conditions laid down in Article 6-1 of Decree of 17 January, 1990 mentioned above. 2 Total excluding repeat counts. 3 France Télévisions + Arte + LCP-AN (total excluding repeat counts). 4 In January 2018, NT1 and HD1 changed their names to TFX and TF1 Séries Films. 5 FTA DTT private + TF1 + M6 (total excluding repeat counts). 6 FTA public channels + FTA private channels (total excluding repeat counts). N.b.: Films broadcast on different channels in the same year are counted several times. If a film is broadcast on the same channel several times during the same year, it is only counted once. Source: CNC-CSA. Total An increasing offering of French films On the national FTA channels (without repeat counts of works), 876 French films were broadcast in 2017: that is 23 films more than in French films represented 42.3% of the offering, compared to 40.5% in In 2017, the number of American films fell by 60 titles compared to It stood at 723 films (783 in 2016), i.e. 34.9% of the film offering on national FTA channels. In 2017, the number of European films broadcast on the national FTA channels was stable at 396 films, i.e. 19.1% (396 films in 2016 or 18.8%). 104 results 2017

105 Number of films broadcast on national FTA channels 1 by country of origin 2 (excluding repeat counts) French films American films European films other films no. % no. % no. % no. % , , , , , , , , , ,072 1 All channels combined except Canal+. 2 The nationality of a film is determined by the license issued by the CNC when such exists, without prejudice to the definitive status of a work of original French expression, nor that of a European work delivered by the CSA under the conditions laid down in Article 6-1 of Decree of 17 January, 1990 mentioned above. 3 Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1 st, 2013; details of the channel's prior broadcasts are not available. N.b.: Films broadcast on different channels in the same year are counted just once. If a film is broadcast on the same channel several times during the same year, it is only counted once. Source: CNC-CSA. Total Further decline of the film offering in prime time 2017 saw a decline in the film offering in prime time on all channels (national FTA channels and Canal+) to 2,151 broadcasts (-44 broadcasts compared to 2016 or -2.0%). This decrease was mainly due to FTA DTT private channels (-52 broadcasts compared to 2016, or -4.0%). The film offering in prime time increased by 11 broadcasts on TF1 in 2017, six broadcasts on France 4, four broadcasts on Gulli and three broadcasts on France 3. The film offering in prime time on France 2 was stable in 2017 at 47 films (as in 2016). The offering in the Sunday night film slot fell to 41 films in 2017 (43 films in 2016). 63.8% of the film offering in prime time on France 2 was French (-4.3 points compared to 2016). American films made up 25.5% of the offering (as in 2016) saw a slight increase in the film offering in prime time on France 3. The channel broadcast 59 films in this time slot or 3 films more than in It continued to broadcast a majority of French films (62.7%, compared with 57.1% in 2016). For the first time since 2002, the channel offered a cinema slot on Monday evenings (50.8% of broadcasts in prime time in 2017, compared to 32.1% in 2016). This new Monday evening slot worked to the detriment of the historic Thursday evening slot (49.2%, versus 66.1% in 2016). France 4 was the France Télévisions channel which offered the most films during prime time. It scheduled six more films than in 2016 at 138. The channel offered two regular cinema slots: Wednesdays (38.4% of prime-time broadcasts in 2017, compared to 33.3% in 2016) and Sundays (39.1% in 2017, compared to 30.3% in 2016). In 2017, 53.6% of films broadcast on France 4 in prime time were French and 33.3% American. results

106 Arte is the national FTA channel that broadcasts the most films during prime time. Arte devotes three regular slots to cinema during prime time: Mondays, Wednesdays and Sundays. The channel broadcast 193 films during this time slot in 2017 (as in 2016 films). French films accounted for 38.9% of the offering in prime time, American films 28.0% and non-french European films 28.0%. Arte remains the leading national FTA channel for prime-time cinema, both in terms of the volume and the diversity of the offering. The film offering of the FTA DTT private channels in prime time represented 1,256 broadcasts or 58.4% of all broadcasts in this time slot (1,308 broadcasts and 59.6% in 2016). Of the thirteen FTA DTT private channels, only Gulli increased its scheduling in prime time in 2017 (+4 films). C8, Chérie 25, CStar and TMC stabilized their offering. In 2017, the FTA DTT private channels offered between one and three regular cinema slots in prime time (one slot for CStar, Gulli, Numéro 23 and W9; two slots for C8, NRJ12, NT1 and TMC; three slots for 6ter, Chérie 25 and HD1). 44.7% of the prime-time film offering on the FTA DTT private channels was French and 39.8% American. In 2017, 73 films were scheduled during prime time on TF1, 11 more than in The broadcast volume on the Sunday evening slot was stable with 49 films broadcast (50 films in 2016). The offering of French films in prime time dropped by one title to 36 films (27 films in 2016), i.e. 49.3% of the film offering in prime time. The number of American films shown in this time slot also increased (30 films in 2017, compared to 26 in 2016) and represented 41.1% of the film offering in prime time. For the third year in a row, M6 broadcast 35 titles in prime time in Since 2015, the channel has offered no regular cinema slot. With 18 titles, French films accounted for 51.4% of the M6 offering in prime time (16 titles and 45.7% in 2016). 40.0% of the films programmed from 20:30 to 22:30 were American in 2017 (42.9% in 2016). In 2017, the film offering of Canal+ in prime time shrank by 7 broadcasts (247 films in 2017, 254 films in 2016). Note that the notion of prime time on the channel is broader than on other channels. It runs from 18:00 to 23:00. Canal+ offered several cinema slots: Tuesdays (26.3%), Wednesdays (18.6%), Fridays (30.8%) and Saturdays under certain conditions (15.8%). In 2017, 44.9% of the films scheduled by the channel in this time slot were French (42.5% in 2016) and 43.3% American (41.7% in 2016). 106 results 2017

107 Number of showings of films on television in prime time trend /16 France % France % France % France % France Ô 3 nd nd nd nd nd % France Télévisions % Arte % LCP-AN % FTA public channels % 6ter % C % Chérie % CStar % Gulli % HD1 5 n/a n/a n/a n/a % La Chaîne L Equipe % NRJ % NT % Numéro % RMC Découverte TMC % W % FTA DTT private channels ,189 1,298 1,371 1,308 1, % TF % M % FTA private channels ,007 1, ,284 1,404 1,461 1,405 1, % FTA national channels 7 1,396 1,439 1,480 1,521 1,459 1,774 1,903 2,005 1,941 1, % Canal % total 1,702 1,719 1,734 1,795 1,732 2,053 2,182 2,282 2,195 2, % 1 Showings starting between 20:30 and 22:30 on the national FTA channels and between 18:00 and 23:00 on Canal+. 2 Start of broadcasting on 6 new FTA DTT high definition channels on December 12, The counting of films on France Ô began on January 1 st, 2013; details of the channel's prior broadcasts are not available. 4 France Télévisions + Arte + LCP-AN. 5 In January 2018, NT1 and HD1 changed their names to TFX and TF1 Séries Films. 6 Private FTA DTT + TF1 + M6. 7 FTA public channels + FTA private channels. Source: CNC-CSA. results

108 Ranking of the films shown on national FTA channels between 2008 and Title film directors year of production country 2 number of showings year of last showing The 11 Commandments F. Desagnat / T. Sorriaux 2003 FR Astérix in Britain P. Van Lamsweerde 1985 FR Les Bidasses en folie (Rookies Run Amok) C. Zidi 1971 FR Chaos T. Giglio 2004 GB Deux heures moins le quart avant Jésus-Christ (Quarter To Two Before Jesus-Christ) J. Yanne 1982 FR The Twelve Tasks of Asterix R. Goscinny / A. Uderzo 1975 FR Fast and Furious: Tokyo Drift J. Lin 2005 US Yamakasi A. Zeitoun 2000 FR Asterix and Cleopatra R. Goscinny / A. Uderzo 1968 FR / BE Asterix versus Caesar G. BRIZZI / P. BRIZZI 1985 FR Asterix Conquers America G. Hahn 1994 DE Asterix the Gaul R. Goscinny / A. Uderzo 1967 FR Les Charlots font l'espagne (The Charlots go to Spain) J. Girault 1972 FR Crocodile Dundee P. Faiman 1986 AU Crocodile Dundee 2 J. Cornell 1988 AU Flic ou voyou G. Lautner 1979 FR Les Fous du stade (Stadium Nuts) C. Zidi 1972 FR Top Gun T. Scott 1986 US Le Trou normand (Crazy for Love) J. Boyer 1952 FR La Vie est un long fleuve tranquille (Life is a Long Quiet River) E. Chatiliez 1987 FR XXX R. Cohen 2001 US All national FTA channels combined. 2 AU: Australia, BE: Belgium, DE: Germany, FR: France, GB: Great Britain / US: United States. N.b.: Films broadcast on different channels in the same year are counted several times. If a film is broadcast on the same channel several times during the same year, it is only counted once. Source: CNC-CSA. The French watched 60 hours of films on free national channels in 2017 (source: Médiamétrie). Also see -the study La diffusion des œuvres cinématographiques à la télévision en the statistical series on the broadcast of films on television results 2017

109 The audience for films on television The best cinema audience on television is recorded each year by a French comedy Every year between 2013 and 2017, the best audience for films on television was recorded by a French comedy. In 2017, the best cinema audience on television was recorded by a French film for its third broadcast unscrambled, Bienvenue chez les ch'tis (Welcome to the Sticks) with 8.8 million viewers on TF1. The best annual audiences for films on television ( ) country of broadcast TV viewers audience year title broadcaster origin 1 rating (millions) market share 2013 Rien à déclarer (Nothing to Declare) TF1 FR / BE (%) 2014 Intouchables (The Intouchables) TF1 FR Les Profs (Serial Teachers) TF1 FR Qu'est-ce qu'on a fait au Bon Dieu (Serial (Bad) Weddings)? Bienvenue chez les ch'tis (Welcome to the 2017 Sticks) ¹ BE: Belgium / FR: France. Source: CNC Médiamat - Médiamétrie (aged 4 and over). The best audiences by channel for films on television in 2017 channel TF1 title Bienvenue chez les Ch'tis (Welcome to the Sticks) broadcast date TF1 FR TF1 FR country of origin¹ broadcast rating TV viewers (millions) audience market share 22-Jan. FR France 2 La Famille Bélier (the Bélier Family) 30-April. FR / BE M6 Daddy or Mommy 5 June FR France 3 TMC W9 Arte Les Rivières pourpres (The Crimson Rivers) On a retrouvé la 7 ème compagnie! (The Seventh Company Has Been Found!) Indiana Jones and the Kingdom of the Crystal Skull Le Deuxième Souffle (Second Breath) 14-Dec. FR May FR Nov. US Nov. FR Canal+ R.A.I.D. Special Unit 29-Dec. FR France 4 Independance Day 5-July. US C8 A Walk Among The Tombstones 8 May US France 5 Days of Heaven 3-April. US NT1 The Bourne Supremacy 12-Jan. US NRJ12 Under Siege 25-April. US ter Home Alone 2: Lost in New York 3-Dec. US CStar Safe 4 May US HD1 The Fugitive 22-Oct. US France Ô Dr. No 16-Jan. GB Numéro 23 Kiss of the Dragon 11 June FR Chérie 25 Primal fear 7-Dec. US Gulli Gremlins 2 29-Oct. US ¹ BE: Belgium, FR: France, GB: Great Britain, US: United States. Source: CNC Médiamat-Médiamétrie (aged 4 and over). results

110 3.3. Fiction on television 2017 key figures: 821 nights were dedicated to fiction on traditional national FTA channels (-7 nights compared to 2016) of which: 44.5% nights of French fiction 34.6% nights of American fiction 20.9% nights of fiction from other countries The fiction offering on television Methodology The programs at prime time generally start broadcasting between 8:35 p.m. and 9:10 p.m. A night of fiction is equivalent to a 90-minute fiction, two 52-minute fictions or three to five 26-minute fictions during prime time. 40,799 hours of fiction throughout the day Fiction was the leading genre of programs in terms of the offering and viewing on television. In Fiction was the leading genre of programs in terms of the offering and viewing on television. In 2017, the national FTA channels (TF1, France 2, France 3, France 5, M6, Arte, C8, W9, TMC, NT1, NRJ12, France 4, CStar, Gulli, France Ô, HD1, 6ter, Numéro 23, RMC Découverte and Chérie 25) broadcast 40,799 hours of fiction throughout the day (-4.5% compared to 2016) according to Médiamétrie. In 2017, the French watched an average of 265 hours of fiction. Fiction accounted for 23.4% of the program offering on national FTA channels and 24.4% of consumption by TV viewers aged 4 and over. In 2017, French people aged 4 and over watched an average of 265 hours of fiction on national FTA channels, i.e. 44 minutes per day. In 2017, the traditional national FTA channels (TF1, France 2, France 3, Canal+, M6 and Arte) devoted 821 nights to fiction (-0.8% compared to 2016), or 37.5% of all their nights. The fiction offering decreased by 18 nights compared to 2016 on TF1, 5 nights on M6, 3 nights on Arte and one night on France 2. In 2017, France 3 became the leading broadcaster of fiction during prime time. Conversely, the offering rose by 8 nights on France 3 and 12 nights on Canal+. In 2017, France 3 became the leading broadcaster of fiction during prime time (177 nights) ahead of TF1 (173 nights), France 2 (144 nights), M6 (140 nights), Canal+ (107 nights) and Arte (80 nights). 110 results 2017

111 Number of nights dedicated to fiction on the traditional channels TF France France Canal M Arte total Source: CNC Médiamétrie. French fiction occupied 44.5% of nights dedicated to fiction The French fiction offering on traditional national FTA channels reached its highest level in the last ten years while American fiction continued its downward trend. In 2017, the French fiction offering increased by 12.0% compared to 2016 (+39 nights, at 365 nights). Conversely, the foreign fiction offering dropped by 9.2% (-46 nights, at 456 nights). The American fiction offering fell by 10.1% (-32 nights, at 284 nights) and the non-french European fiction offering was down 14.6% (-23 nights, at 135 nights). The offering of foreign fiction from outside Europe and the United States increased by 32.1% (+9 nights, at 37 nights). In 2017, French fiction occupied 44.5% of the nights dedicated to fiction, versus 55.5% for foreign fiction of which 34.6% for American fiction, 16.4% for non-french European fiction and 4.5% for foreign fiction from other countries. Breakdown of fiction nights by channel and country of origin in 2017 (%) 100,0 75,0 45,7 20,1 8,3 8,5 13,1 10,0 22,6 4,5 34,6 44,9 50,0 5,8 91,4 70,0 16,4 25,0 0,0 71,5 68,9 15,9 48,6 44,5 26,2 20,0 8,6 TF1 France 2 France 3 Canal+ M6 Arte total France Europe (excluding France) United States other Source: CNC Médiamétrie. 52-minute fictions made up 69,5% of fiction nights In 2017, the fiction offering on the traditional national FTA channels decreased by 10 nights compared to 2016 for the 52-minute format and 3 nights for the 90-minute format. It remained stable for the short format and increased by 6 nights for the 26-minute format. In 2017, 52-minute fictions occupied 69.5% of total fiction nights (571 nights), versus 28.7% for 90-minute fictions (236 nights), 1.1% for 26-minute fictions (9 nights) and 0.6% for short-format fictions (5 nights). results

112 Series totaled 84.7% of nights dedicated to fiction (down 3 points compared with 2016). In 2017, the fiction offering on the traditional national FTA channels decreased by 31 nights compared to 2016 for series (695 nights) whereas it increased by 24 nights for units (126 nights). In 2017, series occupied 84.7% of nights dedicated to fiction on traditional national FTA channels (87.7% in 2016). This share stood at 73.2% for French fiction (75.5% in 2016) and 93.9% for foreign fiction (95.6% in 2016). The audience for television fiction French fiction achieved 88 of the 100 best fiction audiences French fiction now largely dominates American fiction. In 2017, French fiction recorded 88 of the 100 best fiction audiences on television, compared to 82 out of 100 in For the third year in a row, French fiction topped the list of best fiction audiences. In 2017, the best fiction audience was recorded by an episode of the French series Capitaine Marleau, broadcast on France 3, which attracted 7.7 million TV viewers. The best American fiction audience attracted 7.1 million TV viewers Lethal Weapon. The audience for French fiction was larger than that for foreign fiction. For the third consecutive year, the French fiction audience was higher than the audience for foreign fiction on the six traditional national FTA channels. In 2017, the average audience share for French fiction in prime time for those aged 4 and over stood at 22.2% on TF1 (versus 17.7% for foreign fiction), 15.7% on France 2 (versus 13.6 %), 15.6% on France 3 (versus 12.1%), 13.7% on M6 (versus 11.2%), 2.9% on Arte (versus 2.8%) and 1.9% on Canal+ (versus 0.9%). On average, French fiction attracted 3.7 million viewers on these six channels, versus 2.3 million for foreign fiction. Breakdown of the 100 best television fiction audiences by nationality (%) France abroad Source: CNC Médiamat - Médiamétrie (aged 4 and over). 112 results 2017

113 The best audiences for television fiction by channel in 2017 channel title date of broadcast country of origin viewers (millions) share of audience (%) TF1 Section de recherches 1/5/2017 France France 2 Les Petits Meurtres d'agatha Christie 12/22/2017 France France 3 Capitaine Marleau 10/3/2017 France Canal+ Guyane 1/23/2017 France France 5 Les Petits Meurtres d'agatha Christie 1/9/2017 France M6 Glacé 1/10/2017 France Arte Un enfant disparaît 12/15/2017 Germany C8 Les Chevaliers du fiel : Noël à Miami 12/21/2017 France W9 Kaamelott 6/11/2017 France TMC Columbo 2/1/2017 United States NT1* Joséphine ange gardien 12/6/2017 France NRJ12 Père et maire 6/30/2017 France France 4 Cold Case 1/26/2017 United States CStar Meltdown 12/25/2017 United States Gulli Victor Sauvage 3/29/2017 France France O Meurtres en Martinique 3/27/2017 France HD1* Section de recherches 4/26/2017 France ter The Sound of Christmas 12/6/2017 Canada Numéro 23 Le Lien 9/26/2017 France Chérie 25 De sang et d'encre 10/25/2017 France * In January 2018, NT1 and HD1 changed their names to TFX and TF1 Séries Films. Source: CNC Médiamat - Médiamétrie (aged 4 and over). Also see -the study La diffusion de la fiction à la télévision en 2017 results

114 3.4. Aided television production 2017 key figures: 4,873 hours of television programs supported by the CNC (+0.2% compared with 2016) 1.5 billion in budgets (-3.0% compared to 2016) million in contributions from the CNC (+1.4% compared to 2016) million in foreign contributions (-18.3% compared to 2016) million in contributions from broadcasters, i.e. 52.9% (-5.8% compared to 2016) Methodology The results related to production in 2017 concern the television works that obtained financial support from the CNC in This data is different to that of the CSA Television Council (which concerns obligations of the channels) for two main reasons: - the CSA Television Council statistics cover "television works", a broader concept than just the CNCsupported programs; - the dates for taking into account a production are not the same: grant request submission date for the CNC, shooting start date for the CSA Television Council. An assisted production volume of 4,873 hours In 2017, the CNC supported the production of 4,873 hours of French television programs (+0.2% compared to 2016) for total funding of million (+1.4%), the highest level since the support fund was set up. The budgets of CNC-supported television programs dropped by 3.0% to 1,536.7 million. Broadcasters' investments dropped 5.8% to million. The CNC's production support (including additional support) remained stable at million (-0.5%). In 2017, fiction remained the genre most supported by the CNC with 79.4 million (-4.7%), ahead of documentaries at 78.1 million (+1.0%), animation at 58.4 million (+0.6%) and adaptation of live shows for television at 35.0 million (+2.2%). The national FTA channels contributed 85.7% of total investments of television channels, compared to 87.2% in Of these broadcasters, FTA DTT private channels (not including traditional FTA) continued to occupy a limited position in They represented 4.0% of broadcasters' overall contributions and were behind 8.8% of the supported hours (3.9% and 9.8% respectively in 2016). Pay channels (Canal+ and cable and satellite channels) ordered 18.1% of assisted hours, amounting to 11.3% of all broadcasters' contributions in 2017 (20.5% and 10.6% in 2016, respectively). Except for live shows (10.7% of all distributors' investments), local television channels played a minimal role in financing of television production aided by the CNC with a contribution amounting to 1.1% of all broadcasters' contributions. In 2017, online services represented 1.8% of total broadcasters' contributions in aided television production and 24.0% of those invested in the television adaptations of live shows. Funding from foreign investors amounted to million, down 18.3%. It decreased for fiction (-43.7%), current affairs programs (-65.9%) and documentaries (-27.2%) and rose for live shows (+17.9%) and animation (+4.6%). In 2017, the CNC funded the production of 4,873 hours of French television programs for million. 114 results 2017

115 Aided television production trend 17/16 duration (hours) 3,986 4,244 4,417 4,850 5,151 5,427 4,828 4,943 4,864 4, % budget (millions of ) 1, , , , , , , , , , % broadcasters (millions of ) % CNC funding 1 (millions of ) % foreign contributions (millions of ) % 1 Production support including additional support. Source: CNC. results

116 Fiction Hourly volume down slightly In 2017, the volume of CNC-supported fiction was 871 hours. It was down 2.9% on 2016 (-26 hours). Fiction represented 17.9% of the total duration of all CNC-supported television programs in 2017, compared to 18.4% in Fiction budgets were down 7.6% in 2017 at million. The average hourly cost of supported fiction decreased 4.8% to K. In 2017, broadcasters' contributions to the production of fiction programs stood at million, a decline of 8.3% compared to Their share in the financing of the genre was 68.3% (-0.5 points). The hourly contribution of broadcasters fell by 5.5% between 2016 and 2017 to K. The contribution of producers rose 8.0% to 87.4 million in The contribution of producers was 12.1% (+1.7 points). The contributions of the CNC (including additional support) dropped from 4.7% to 79.4 million in However, the share of CNC contributions (including additional support) in the financing of fiction was up 11.0% (+0.3 points). In 2017, co-production investments decreased by 39.4% compared to 2016 to 15.5 million and presales (including guaranteed minimums) slumped by 48.0% to 13.3 million. The share of foreign contributions in the financing of fiction was 4.0% in 2017 (6.6% in 2016). In 2017, no series presented foreign contributions higher than 10 million whereas there were two in 2016 (Ransom for TF1 and The Collection for France 3). The total number of hours of programs receiving foreign financing rose by 7.1%. 424 hours of fiction were financed with foreign investors in 2017, i.e. 48.7% of the hourly total volume for fiction (396 hours or 44.2% in 2016). In 2017, 413 hours of French-majority works were produced, with a foreign contribution of 20.2 million ( 9.5 million in co-production investments and 10.7 million in presales - including guaranteed minimums) and 11 hours of French-minority programs benefited from a foreign contribution of 8.6 million ( 6.1 million in co-production investments and 2.6 million in presales - including guaranteed minimums). In 2017, the proposition of broadcasters in the financing of fiction was stable at 68.3% of budgets as was the contribution of the CNC at 11.0% of budgets. Key figures for fiction trend 17/16 hourly volume (hours) % budget (millions of ) % hourly cost ( K/hour) % Broadcasters contributions (millions of ) % CNC contributions 1 (millions of ) % foreign contributions (millions of ) % ¹ Production support, including additional support. Source: CNC. 116 results 2017

117 Estimated financing of fiction (millions of ) French financing French producers presales in France broadcasters SOFICA CNC CNC additional support other foreign financing foreign co-productions presales abroad total financing ¹ Support granted after the first decision. ² Including guaranteed minimums. Source: CNC Increase of 26 TV series In 2017, the volume of 26-minute fiction (+39.0%) was up while the volumes of 90 minutes (-33.0%), 52 minutes (-7.6%) and short-format series (-6.5%) were down. In 2017, 52 minutes was the leading format for fiction series (41.4% of supported hours), ahead of 26 minutes (27.4%), the short format (17.7%), 90 minutes (12.0%) and new media fiction (1.5%). The volume of 90 minutes fell to its lowest level of the decade. Decrease in contributions from national FTA channels In 2017, the volume of fiction initiated by national FTA channels fell 6.3% compared to 2016 to 761 hours. Their total investment dropped 11.5% to million. On average, national FTA channels covered 70.6% of the budgets for the fictions they initiated (68.5% in 2016). Their average hourly contribution as first broadcasters was K ( K in 2016). In 2017, these channels were responsible for 87.3% of the total hourly volume of fiction ordered by all broadcasters (90.6% in 2016) and contributed 88.5% of their total investments in the genre (91.7% in 2016). results

118 Documentaries Decrease in documentary budgets and stable volume With a total of 2,266 supported hours in 2017, the volume of documentaries was almost stable (+0.6% compared to 2016) and returned to a level close to In 2017, the amount of budgets for documentary programs fell to million (-1.9%). The average hourly cost dropped by 2.5% to K. In 2017, documentaries accounted for 46.6% of the total hours of television programs supported by the CNC, compared to 46.3% in Broadcasters' commitments slid 4.5% to million and covered almost half (49.1%) of total budgets for the genre. The average hourly broadcasters' contribution was 86.2 K in 2017 (-5.1% compared to 2016). In 2017, the contributions from French producers rose (+8.7%) to 65.1 million. The grants awarded by the CNC to French documentary producers amounted to 78.1 million in 2017 (+1.0% compared to 2016). Foreign financing in French documentaries production decreased 27.2% to 22.3 million, of which 7.8 million for presales (-39.1%) and 14.5 million for co-production investments (-18.6%). 465 hours of documentaries corresponded to French-majority co productions in 2017, for a total of foreign contributions in the sum of 14.7 million and 41 hours of minority programs for a contribution of 7.6 million. In 2017, CNC funding for documentary production reached 78.1 million (+1.0%). Key figures for documentaries trend 17/16 hourly volume (hours) 2,059 2,225 2,461 2,665 2,921 3,092 2,590 2,480 2,253 2, % budget (millions of ) % hourly cost ( K/hour) % Broadcasters contributions (millions of ) CNC contributions 1 (millions of ) foreign contributions (millions of ) ¹ Production support, including additional support. Source: CNC % % % 118 results 2017

119 Estimated financing of documentaries (millions of ) French financing French producers presales in France broadcasters SOFICA CNC CNC additional support other foreign financing foreign co-productions presales abroad total financing ¹ Support granted after the first decision. Source: CNC. Increased volume and retreat of contributions by national FTA channels In 2017, the level of orders from national FTA channels in the documentary genre increased by 4.1% to stand at 1,617 hours. This rise coincided with an increase in the orders of FTA private channels (+49 hours as first broadcasters) and those from national FTA public channels (+15 hours). National FTA channels invested million in the production of television documentaries in 2017 (-1.6% compared to 2016). Social documentaries remained predominant With the volume of orders rising 6.2% in 2017, social documentaries remained prominent with 52.1% of the total volume for the genre in Historical programs represented the second most ordered theme with 9.6% fewer orders in 2017 at 272 hours (301 hours in 2016). In 2017, orders for documentaries on the environment and nature rose 25.0% to 204 hours. Broadcasters participated in financing 125 hours of documentaries about arts in 2017, compared to 105 hours in Documentaries concerning live shows (music, circus, dance and theater) represented 2.3% of the hours of supported documentaries in 2017, compared to 3.6% in Of the hours of live show documentaries, 85.9% were dedicated to music (2.0% of the total volume of supported documentaries). results

120 Animation Increase in animation budgets In 2017, the volume of animation production decreased by 9.1% to 353 hours. Animation represented 7.2% of total hours of programs supported by the CNC in 2017, compared to 8.0% in Animation production generally moves in two-yearly or three-yearly cycles. In 2017, animated program budgets rose by 4.9% compared to 2016, to million. In 2017, the hourly cost of animation amounted to K (+15.4% compared to 2016). French financing for the production of animation works rose 5.0% to million in The contribution of broadcasters was up 3.5% at 63.7 million. Their share in funding animation amounted to 23.7% (24.0% in 2016). The contributions of French producers rose by 15.3% to 61.9 million, i.e. 23.0% of the total amount of budgets (21.0% in 2016). The CNC contribution (including additional support) for animation programs rose 0.6% to 58.4 million. In total, it covered 21.7% of budgets in 2017 (22.6% in 2016). In 2017, the share of foreign contributions in the financing of animation programs was stable compared to 2016 at 22.6%. Foreign financing rose by 4.6% to 60.7 million in Coproduction investments dropped by 24.6% to 20.2 million, while presales abroad increased by 29.6% to 40.5 million. In 2017, 284 hours of animation received foreign financing (co-production and presale), in other words 80.6% of the total volume produced (353 hours, which is 91.0% of the total volume in 2016). In 2017, 255 hours of French-majority animation were initiated with total foreign financing of 46.5 million, of which 12.0 million in co-production investments and 34.5 million in presales (328 hours with a foreign contribution of 48.7 million in 2016). At the same time, 29 hours of French-minority works were produced in 2017, financed by a total foreign contribution of 14.2 million, of which 8.1 million in co-production investments and 6.0 million in presales (25 hours with a foreign contribution of 9.3 million in 2016). In 2017, the animation volume reached 353 hours of production. Key figures for animation trend 17/16 hourly volume (hours) % budget (millions of ) % hourly cost ( K/hour) % Broadcasters contributions (millions of ) CNC contributions 1 (millions of ) foreign contributions (millions of ) ¹ Production support, including additional support. Source: CNC % % % 120 results 2017

121 Estimated financing of animation (millions of ) French financing French producers presales in France broadcasters SOFICA CNC CNC additional support other foreign financing foreign co-productions presales abroad total financing ¹ Support granted after the first decision. Source: CNC Series of 11 to 13 minutes remain predominant In 2017, the series of 11 to 13 minutes remained the leading format for animation programs supported by the CNC (58.4% of the hourly volume), ahead of series of less than 8 minutes (29.7%), series from 23 to 26 minutes (11.3%) and units (0.6%). Rise in investments by national FTA channels In 2017, the volume of animation initiated by national FTA channels dropped by 7.0% compared to 2016 to 286 hours. However, their total investments jumped by 9.6% to 51.7 million. The hourly contribution of national FTA channels increased by 16.4% to K and the hourly cost of their programs increased by 13.8% to K. National FTA channels represented 81.2% of investments by channels in the production of animation (76.7% in 2016) and initiated 81.0% of hours produced (79.2% in 2016). In 2017, the share of French investments in the financing of animation programs was stable at 77.4% of budgets. results

122 Television adaptation of live shows Higher volumes and budgets for television adaptations of live shows In 2017, the number of supported hours of television adaptations of live shows increased by 8.3% (+79 hours compared to 2016) to reach 1,033 hours. The budgets of these works rose 4.0% compared to 2016 to reach million: that is a 4.0% lower average hourly cost at K. Live show programs represented 21.2% of the total of supported programs in 2017 and captured 14.7% of support from the CNC. In 2017, the participation of broadcasters in the production of television adaptations of live shows increased 1.4% to 42.8 million. Their hourly contribution dropped 6.4% to 41.5 K. Broadcasters covered 35.2% of the production budget for the genre (36.1% in 2016). The grants awarded by the CNC (including additional support) increased 2.2% to 35.0 million in Their contribution to funding of television adaptations of live shows was stable and covered 28.8% of the budgets for an hourly contribution down 5.6% to 33.9 K on average. In 2017, the number of hours of live shows produced rose by 8.3%, but the hourly contribution of broadcasters was down 6.4%. In 2017, foreign contributions rose 17.9% to 8.4 million. Their share in the total budget rose to 6.9% of the total financing of television adaptations of live shows (6.1% in 2016). Co-production investments increased to 6.7 million. They were mainly financed by foreign producers of shows and theaters screening shows abroad. Presales abroad rose 27.5% to 1.7 million. In total, 213 hours of live shows received foreign financing in 2017 (187 hours in 2016), of which 205 hours of majority co-productions (177 hours in 2016) and 8 hours of minority co-productions (10 hours in 2016). Majority co-productions received 7.1 million in foreign financing ( 5.9 million in 2016) and minority co-productions 1.3 million ( 1.2 million in 2016). Key figures for live shows trend 17/16 hourly volume (hours) , , % budget (millions of ) % hourly cost ( K/hour) % Broadcasters contributions (millions of ) % CNC contributions (millions of ) % foreign contributions (millions of ) % 1 Production support, including additional support. Source: CNC. 122 results 2017

123 Estimated financing of live shows (millions of ) French financing French producers presales in France broadcasters SOFICA CNC CNC additional support other foreign financing foreign co-productions presales abroad total financing Support granted after the first decision. Source: CNC. Music shows dominated the genre In 2017, the increase in the production volume of live show programs mainly concerned music (+62 hours) and, in particular, world/traditional music (+42 hours) and hip hop/rap/electro music (+39 hours). The number of hours of variety/rock fell from 210 to 165 hours, behind classical music whose number of hours remained stable at 184 hours. Recordings of musical performances represented the lion's share of supported hours, at 79.0% of the volume in 2017 (as in 2016). In 2017, the CNC funded musical performances to the tune of 26.5 million, an increase of 5.0%. Classical music represented 17.8% of supported hours. Then came variety/rock (16.0%), opera (15.6%), jazz (10.6%), hip hop/rap/electro (9.2%) and world/traditional music (8.5%). Circuses remained the most expensive live show genre in 2017 at K per hour of program (-42.9%), ahead of opera at K (-1.0%) and theater at K (-7.2 %).- In 2017, the CNC supported recordings of musical performances to the tune of 26.5 million. Increase in the volume of national FTA channels In 2017, national FTA channels increased their volume of orders of television adaptations of live shows (+7.0% to 390 hours). Their investments in the genre fell to 22.3 million (-5.9%), mainly due to the decline in contributions from public channels. The cost of producing one hour of a live show initiated by the national FTA channels was K ( K in 2016). These channels covered 34.3% of the production budgets of supported live show programs which they financed as first broadcasters (36.3% in 2016). results

124 Cultural interest magazine programs Decreased volume and budgets for cultural interest programs The CNC provides exclusively selective support to cultural interest programs, after consulting the committee responsible. In 2017, the supported production decreased to 350 hours (-6.1% compared to 2016). This was the lowest level for the last ten years apart from 2014 (254 hours). 39 programs receive financial support in 2017 (31 in 2016). Overall, the budgets for these programs amounted to 28.6 million (+4.0% compared to 2016), representing an average hourly cost of 81.9 K (+10.8%). The CNC's contribution to cultural interest programs rose by 26.7% to 3.2 million in The total amount of budgets for supported cultural interest programs reached 28.6 million in 2017, up 4.0% on The broadcasters' contribution rose in 2017 to 19.6 million (+5.8% compared to 2016). They represented 68.5% of total financing of cultural interest programs in 2017 (67.3% in 2016). Broadcasters contributed, on average, 56.1 K per hour of program in 2017 ( 49.8 K in 2016). Key figures for cultural interest programs trend 17/16 hourly volume (hours) % budget ( millions) % hourly cost ( K/hour) % Broadcasters contributions (millions of ) CNC contributions 1 (millions of ) foreign contributions (millions of ) ¹ Production support, including additional support. Source: CNC % % % Estimated financing of cultural interest programs (millions of ) 124 results French financing French producers presales in France broadcasters SOFICA CNC CNC additional support other foreign financing foreign co-productions presales abroad total financing ¹ Support granted after the first decision. Source: CNC Also see -the study La production audiovisuelle aidée en the statistical series on audiovisual production supported by the CNC

125 485.1 m 5 Main cash flows for aided television production in 2017 (millions of ) m 4 VoD platforms detail video business FTA public channels contribution to public television services 2,657 m FTA private channels public television service distributors subscriptions subscriptions viewing TV advertising 3,286 m advertisers 62.2 m collected funds from financing made in 2017 and January 2018 (cinema and television). SOFICAs must invest 90% of their collected funds in television or feature film production. 2 Estimated budget for funding in the agreements concluded between the CNC and the local government authorities in Full support of CNC: production support + development support (including additional support and "AV support fund" grants). 4 Retail sales of programs other than film (incl. tax). 5 Estimated 100% of turnover not including taxes in VoD on non-specialized platforms. 6 Sales tax assessed to television service pay channels (Canal+ and cable and satellite publishers and distributors. 7 Tax on final turnover on video and VoD, all genres included. video tax / VoD m TV service tax (TST) m 6 support m m m 91.9 m local television channels AIDED TELEVISION PRODUCTION 9.1 m online services 14.8 m Sources: Television works supported by CNC (fiction, documentary, animation, live show, cultural interest programs). French advertising market in IREP. CNC revenues in CNC-GfK video barometer. GfK-NPA Conseil VoD barometer. GfK SEVN. 8.7 m 28.4 m m 5.0 m regional funds foreign contributions SOFICA results

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127 3.5. Catch-up TV 2017 key figures: 6.9 billion videos viewed via on catch-up TV (+6.6% compared to 2016) 3.66 billion videos viewed on a mobile device (+24.7% compared to 2016) 2.47 billion videos viewed on a television screen (+3.6% compared to 2016) 2.11 billion videos viewed on a computer (-5.1% compared to 2016%) The catch-up TV offering Over 140 catch-up TV channels Catch-up TV (also referred to as TV on demand) covers all of the services used to view or view again programs after they have been broadcast on a television channel, usually for a limited period of time, either for free or at no additional cost with a subscription. Catch-up TV offerings are available on any screen (computer, TV and mobile screens - tablet, phone, etc.) but the services differ, on television sets and on mobile screens, depending on the telecom operators, equipment manufacturers and platforms for downloading applications. On a computer, catch-up TV services are accessed via dedicated websites published by the channels. On a television set, catch-up TV offers can be accessed in various ways: via Internet Access Providers, satellite television services, connected TV services, video games consoles, or via external boxes or devices offering broadcast content. On mobile devices, catch-up TV is available via operator applications for TV plan subscribers, and via applications developed by the channels, downloadable from app stores. Certain catch-up TV services are also available via video sharing sites across all devices. Catch-up TV offerings consist of services that are freely available, on the one hand, and optional services reserved for channel subscribers, on the other. In March 2018, over 140 channels, including all the national FTA channels, began offering their catch-up TV programs on at least one screen. Methodology The share of programs available via catch-up TV on the Internet is calculated as an hourly volume by for the CNC. The analysis was carried out during a reference week (that of November 13 to 19, 2017). All programs broadcast during these weeks between 5 p.m. and midnight were monitored, to determine whether they were available via catch-up TV on the Internet. 70% of programs broadcast by French national channels available on catch-up TV In November 2017, 70% of the programs broadcast between 5 p.m. and midnight on national FTA channels (traditional FTA, DTT or DTT HD) were available via catch-up TV on the Internet. This proportion is up year on year (+10 points). It stood at 93% for the traditional national FTA channels (+3 points compared to 2016), versus 60% for DTT channels (+6 points) and 60% for DTT HD channels (+21 points). The share of flux programs (entertainment, current affairs, news, sport) available on catch-up TV is larger than that of stock programs (animation, documentaries, fiction, films), whether on traditional channels, DTT or DTT HD channels. In November 2017, 86% of flux programs broadcast between 5 p.m. and midnight on all FTA channels were available via catch-up results

128 TV on the Internet (+9 points year on year), versus 52% for stock programs (+9 points). On the traditional FTA channels, 97% of flux programs were available, versus 86% for stock programs. On the DTT channels, 78% of flux programs were available, versus 46% for stock programs. On the DTT HD channels, 83% of flux programs were available, versus 41% for stock programs. Share of programs available via catch-up TV on the Internet¹ (%) traditional FTA DTT channels DTT HD channels total Nov Nov Nov Nov Nov ¹ Programs broadcast between 5 p.m. and midnight. Source: Methodology The study of the catch-up TV offering, which has been performed by for the CNC since October 2010, presents the 2017 program offering of 23 national FTA channels (TF1, France 2, France 3, unscrambled Canal+, France 5, M6, Arte, C8, W9, TMC, NT1, NRJ12, LCP-Assemblée Nationale, Public Sénat, France 4, CStar, Gulli, France Ô, HD1, 6ter, Numéro 23, RMC Découverte and Chérie 25) available via catch-up TV on the Internet, in number of videos and hourly volume. Almost 24,000 hours of programs available each month In 2017, an average of 23,732 hours of programs broadcast throughout the day on national FTA channels was available via catch-up TV on the Internet each month. The catch-up TV offering increased by 15.2% compared to 2016, mainly due to DTT HD channels (+41.6%). On average, traditional FTA channels offered 9,580 hours of programs each month, compared with 12,904 hours for the DTT channels and 1,248 hours for DTT HD channels. In 2017, 14.8% of the catch-up TV offering was available from 0 to 7 days (20.6% in 2016). 78.2% of programs were available for more than 30 days (72.6% in 2016). The share of programs available up to 7 days after broadcast decreased by nearly six points compared to Selection of catch-up TV by length of availability (%) days days days more than 30 days total Source: % of programs offered via catch-up TV were available for more than 30 days. Flux programs made up the majority of the catch-up TV offering In 2017, the share of stock programs accounted for 15.7% of the catch-up TV online offering (vs. 15.4% in 2016), where 7.5% were fictions (vs. 7.0% in 2016), 5.0% documentaries (vs. 4.6% in 2016) and 3.1% animated programs (vs. 3.5% in 2016). Flux programs (entertainment, current 128 results 2017

129 affairs, news and sport) still represented the majority of the offering (84.3% of hourly volume in 2017). In 2017, the main catch-up TV offerings on the Internet for stock programs came from France 4 (279 hours per month on average), Gulli (178 hours) and France 3 (90 hours) for animation, from Arte (352 hours), RMC Découverte (227 hours) and France 5 (144 hours) for documentaries and from M6 (427 hours), TF1 (268 hours) and France Ô (158 hours) for TV fiction. In 2017, French programs accounted for 40.0% of the offering of catch-up TV fiction available on the Internet (-4.5 points compared to 2016), versus 33.2% for American fiction (+1.3 points), 12.7% for non-french European fiction (-1.1 points) and 14.1% for fiction from other countries (+4.2 points). Average monthly catch-up TV offering on the Internet (hours) % % % % Source: In 2017, every month, 23,732 hours of programs broadcast on national FTA channels were available on catch-up TV (+15.2% compared to 2016). results

130 Consumption of catch-up TV Methodology The analysis of consumption, in number of videos viewed, has been conducted since January 2011 at the CNC's request by NPA Conseil and GfK, in association with Canal+ Régie, France Télévisions Publicité, Lagardère Publicité, M6 Publicité Digital, TF1 Publicité Digital based on data provided by Médiamétrie estat streaming, Nedstats, Comscore, Omniture, Flurry Analytics, A&T Internet, and on operators' data. In 2011, the barometer comprised results from 14 channels, including the six traditional national FTA channels: Canal+, CNews for the Canal+ group; 1ère, France 2, France 3, France 4, France 5, France Ô for the France Télévisions group; M6, W9, Paris Première and Teva for the M6 group; TF1 and LCI for the TF1 Group. The analysis of consumption was supplemented by the results for TMC and NT1 as of January 2012, C8 and CStar as of October 2012, Gulli, HD1 and 6ter as of January 2014 and Piwi+ and Télétoon+ as of January Since then, the barometer has therefore comprised the results of a panel of 23 channels. 6.9 billion videos viewed via catch-up TV in 2017 (+6.6%) Consumption of catch-up TV continued to grow this year. In 2017, 6.9 billion videos were viewed via catch-up TV, versus 6.5 billion in 2016, representing an increase of 6.6% in one year. In 2017, million videos were viewed on average each month via catch-up TV (538.5 million in 2016). A new consumption record was reached in October 2017 with million videos viewed. The lowest audience for catch-up TV was recorded in August with million videos viewed. In 2017, 18.9 million videos were viewed on average each day via catch-up TV (17.7 million in 2016). Consumption of catch-up TV 1 (millions of videos viewed) % 3 729, % 5 085, % 6 461,5 +6,6 % 6 888, , ¹ The scope of the study was expanded in January 2012 with TMC and NT1 in October 2012 with C8 and CStar in January 2014, with Gulli, HD1 and 6ter and in January 2016 with Piwi+ and Télétoon+. Source: NPA - GfK - Canal+ Régie - France Télévisions Publicité - M6 Publicité Digital - TF1 Publicité Digital - TMC Régie - Lagardère Publicité. Mobile devices confirm their status as the leading medium in terms of volume of consumption Consumption of online television which includes catch-up TV and bonuses, and consumption of live television on devices other than the television set, increased across all media except computers (-5.1% to 2.11 billion videos viewed). In 2017, 2.47 billion videos were viewed on a television screen (+3.6%), 3.66 billion on a mobile device (+24.7%) of which 2.44 billion on a mobile phone (+37.3%) and 1.21 billion on a tablet (+5.2% compared to 2016). In 2017, for the second year running, mobile devices (mobile phone or tablet) supplanted television sets to become 130 results 2017

131 the leading media for television consumption online. In 2017, the TV screen generated 29.9% of the audience (-1.6 points compared to 2016), the computer represented 25.6% of consumption (-3.9 points) and mobile devices totaled 44.4% of videos viewed (+5.5 points) of which 29.7% for the mobile phone (+6.1 points) and 14.8% for the tablet (-0.6 points). Online television viewing by device 1 (%) ,2 22,3 34,8 37,5 31,7 35,0 38,9 44,4 31,6 29, ,0 40,1 33,3 29,5 25, computer television mobile phone and tablet ¹ In number of videos viewed. The scope of the study was expanded in January 2012 with TMC and NT1 in October 2012 with C8 and CStar, in January 2014, with Gulli, HD1 and 6ter and in January 2016 with Piwi+ and Télétoon+. Source: NPA - GfK - Canal+ Régie - France Télévisions Publicité - M6 Publicité Digital - TF1 Publicité Digital - TMC Régie - Lagardère Publicité. Mobile devices continued to progress, accounting for 44.4% of the consumption of online television. Entertainment is still the most-watched genre In 2017, stock programs (fiction, cinema, documentary and children's programs) made up 52.1% of online television consumption, compared with 53.4% in In 2017, entertainment was the most consumed program genre (28.8% of videos viewed), ahead of children's programs (25.4%), fiction (25.3%), current affairs (5.4%), news (4.5%), sports (1.8%), documentaries (1.2%) and cinema (0.3%). The biggest increase in absolute value was seen by entertainment ( million videos viewed). The most consumed genre therefore drove the market upwards with 2.37 billion videos viewed. The online programs with the highest audiences generally coincided with the channels' successes. Programs for a young audience and serialized programs were over-represented. In 2017, the best monthly audiences were achieved for TF1 by entertainment: The Voice, Secret Story, La villa des cœurs brisés and by the French fiction Demain nous appartient. For the France Télévisions group's channels, Plus belle la vie (France 3) was the program with the biggest number of videos viewed each month. For channels in the Canal+ group, Touche pas à mon poste (C8) took first place in the ranking for eight months out of twelve. Football came first in May and the Canal+ Sport show from July to September. Every month in 2017, the best audiences for the M6 group channels were achieved by entertainment: les Princes de l amour, les Marseillais, Moundir et les apprentis aventuriers and L amour est dans le pré. For Gulli, the best audiences were achieved by animated programs (9 months out of 12) or by foreign series for children (3 months out of 12). results

132 Online television consumption by genre¹ (%) ,3 25,3 1,2 1,8 28,8 25,4 5,4 4,5 6,8 0, ,3 26,3 2,1 0,4 29,0 26,5 4,0 5,3 6,0 0, ,7 27,9 0,8 2,3 26,6 20,6 5,8 6,9 6,8 0, ,2 24,9 2,7 0,6 30,2 14,5 7,2 7,2 9,3 1, ,9 28,8 0,7 2,1 25,9 7,4 8,4 8,4 13,7 1, cinema fiction documentary sports entertainment children current affairs news direct flow other ¹ In number of videos viewed. The scope of the study was expanded in January 2012 with TMC and NT1, in October 2012 with C8 and CStar, in January 2014, with Gulli, HD1 and 6ter and in January 2016 with Piwi+ and Télétoon+. Source: NPA - GfK - Canal+ Régie - France Télévisions Publicité - M6 Publicité Digital - TF1 Publicité Digital - TMC Régie - Lagardère Publicité. Stock programs made up 52.1% of the consumption of online TV, whereas they accounted for only 15.7% of the catch-up TV offering. 132 results 2017

133 The catch-up TV audience Methodology Catch-up TV audiences and their habits have been monitored since October 2010 via an online survey conducted by Harris Interactive for the CNC, polling 1,200 websurfers aged 15 and over every month and since January 2016 by Vertigo among 1,000 websurfers every month. Catch-up TV penetration was stable at 80% The use of catch-up television services has become part of the practices of the French population. In 2017, 79.8% of websurfers aged 15 and over reported having watched catch-up TV programs (all media) over the previous 12 months, compared with 80.2% in Catch-up penetration leveled off among the general population but continued to increase in the age group (86.5%) and in the age group (83.7%). Penetration of catch-up TV¹ (%) ,9 72,2 73,4 80,2 79, ¹ Websurfers over the past 12 months (aged 15 and over). Source: Harris Interactive and Vertigo from The frequency of use of catch-up TV services is intensifying In 2017, 55.8% of users watched programs via catch-up TV at least once a week, vs. 54.7% in The share of daily users increased by 1.2 points to reach 12.2% in The share of keen users (who watch programs at least once a week and less than once a day) was stable at 43.6% (-0.2 points). The proportion of enthusiast users (at least once a month and less than once a week) dropped by 1.3 points to 26.2%. The proportion of occasional users (less than once a month) was stable at 18.0% (+0.2 points). results

134 Catch-up TV viewership behavior 1 (%) ,1 26,1 25,4 28,5 27,8 27,2 17,9 18,0 27,4 26, ,6 37,1 38,1 43,8 43,6 0 7,8 9,0 9,4 10,9 12, intensive keen enthusiast occasional ¹ Websurfers over the past 12 months (aged 15 and over). Intensive user: at least once a day; fans: at least once a week and less than once a day; enthusiast user: at least once a month and less than once a week; occasional user: less often. Source: Harris Interactive and Vertigo from January Advertising revenues are estimated at 115 million Access to catch-up TV services is generally free to the public for national FTA channels, and included in the subscription (at no extra charge) for pay channels. Advertising revenues represent the main source of earnings for catch-up TV services. The trend in revenue is accounted for by a number of factors: the number of advertisers, the volume of advertisements broadcast, and the selling price of advertising space. In 2017, the advertising turnover for catch-up TV was estimated at 115 million, versus 105 million in 2016 (+9.5%). This figure increased by a factor of 3.8 between 2011 and 2017 ( 30 million in 2011). The advertising turnover for catch-up TV has been multiplied by almost four between 2011 and 2017 at 115 million. Also see -the study L économie de la télévision de rattrapage en the statistical series on catch-up TV 134 results 2017

135 4. VIDEO, VIDEO GAMES AND TECHNICAL INDUSTRIES results

136 4.1. The video market 2017 key figures: 1,021.7 million in video sales million in physical video sales (-9.8% compared to 2016) million in Video on Demand sales (+32.3% compared to 2016) Methodology Household spending on physical video media was evaluated by the GfK Institute based on sales from supermarkets, specialty superstores, mail order, and over the Internet. These figures do not include sales at kiosks or service stations. They also exclude the rental segment. All of the data presented in this section are inclusive of tax. Every month, GfK counts the total number of videos sold or rented on the platforms that are most representative of the paid VoD market in France. In 2017, total turnover for video (physical and VoD) was 1,021.7 million (+6.2%) In 2017, total video sales (incl. VAT), which includes sales of physical video media (non-rental) and video on demand (transactional and subscription), came to 1,021.7 million and rose for the first time since 2010, by 6.2% ( million in 2016). Video market in value 1 (millions of ) DVD/Blu-ray Video on demand total video trend 17/ , , , , % , , % , , % , , % , % , % , % % , % 1 Sales inclusive of tax. Source: GfK - NPA Conseil 100% estimate. For the first time, the VoD market spurred the video market. The physical video market represented 52.5% of the total video market, down 9.4 points compared to 2016, to the benefit of video on demand, whose share increased from 38.1% in 2016 to 47.5% in The market of video on demand and catch-up TV is therefore occupying an increasingly important place in the overall video market. 136 results 2017

137 Video market in value 1 (%) 100% 90% 80% 70% 3,7 6,6 9,9 15,2 18,4 20,5 24,7 31,0 38,1 47,5 60% 50% 40% 30% 20% 96,3 93,4 90,1 84,8 81,6 79,5 75,3 69,0 61,9 52,5 10% 0% Video on Demand DVD/Blu-ray 1 Sales inclusive of tax. Source: GfK - NPA Conseil 100% estimate. results

138 4.2. DVD and Blu-ray 2017 key figures: million in DVD and Blu-ray sales 72 million units sold (-11.0% compared to 2016) million in DVD sales (-11.9% compared to 2016) million in Blu-ray sales (-3.6% compared to 2016) Methodology Household spending on physical video media was evaluated by the GfK Institute based on sales from supermarkets, specialty superstores, mail order, and over the Internet. These figures do not include sales at kiosks or service stations. They also exclude the rental segment. All of the data presented in this section are inclusive of tax. The physical video market contracted by 9.8% in value terms In 2017, sales (incl. tax) of DVDs and Blu-ray discs shrank 9.8% to million. Household spending on physical videos fell for the seventh year running. In ten years, revenues from the physical video market have dropped by more than half (-61.2%). They represented 52.5% of the overall video market in 2017 (physical and VoD). Between 2016 and 2017, volumes of video media sold (DVD and Blu-ray) decreased by 11.0% to 72.3 million in Sales (incl.tax) of DVDs and Blu-ray discs shrank 9.8% to million. Three main factors contributed to this decline in the market: changes in use (watching video via catch-up TV or video on demand), price cuts, particularly for new releases, and piracy. The minimal presence of Blu-ray equipment in French households and their lack of familiarity with this equipment contributed to this phenomenon along with the decline of dedicated departments in supermarkets. The DVD still dominant On the overall market for physical video, comprising DVD and Blu-ray, DVD remains the preferred format. In 2017, it accounted for 73.4% of the market in value terms, versus 75.1% in 2016, and 79.9% five years ago. At million, DVD sales were down 11.9% compared to million DVDs were sold in 2017, 12.0 % less than in DVD remains the preferred format. It captured 73.4% of the market by value in Further decline of Blu-ray In 2017, even if the high definition player equipment base of French households continued to grow (16.1% of households with a Blu-ray player in the living room in 2017 according to GfK, against 15.4% in 2016), Blu-ray revenues were down for the fifth consecutive year, sliding 3.6% between 2016 and They amounted to million. The volumes sold were also down (12.2 million discs sold, or -5.6%). In 2017, Blu-ray accounted for 26.6% of the turnover for physical video. Given the disappearance of the VHS format, its sales have been excluded from the video market's figures since In 2017, VHS still generated more than 40,000 in revenue for 5,211 units sold, compared to nearly 40,000 and 5,552 units in results 2017

139 Sales 1 of physical video by medium 2 Volume (million units) Value (millions of ) DVD Blu-ray 3 total DVD Blu-ray 3 total , , , , , , , , , structure 83.1% 16.9% 100.0% % 100.0% trend 17/ % -5.6% -11.0% -11.9% -3.6% -9.8% 1 Sales inclusive of tax. 2 VHS is no longer included. HD formats are included. 3 Blu-ray emerged as the benchmark medium for high definition in Updated data. Source: CNC GfK. Retail sales 1 of physical video 2 M million units value volume 1 Sales inclusive of tax. 2 VHS is no longer included. HD formats are included. Source: CNC GfK for a new release on DVD In 2017, the average selling price incl. tax of a catalog DVD per unit rose 2.4% to ( in 2016). The average price of new releases (on sale for less than six months) fell by 1.1% to All types of packaging included (packs and individual units), sales of DVDs priced between 17 and 20 represented the market's main price category, accounting for 20.1% of total revenues, versus 17.6% in In volume terms, DVDs between 3 and 8 represented the main price category, accounting for 28.5% of volumes in 2017, as in In 2017, sales of DVDs for less results

140 than 3 represented 0.8% of revenues, and 5.4% of volumes. The average price of a newly released Blu-ray disc sold per unit was in 2017 (+1.2% compared to 2016). The price of a Blu-ray catalog disc sold individually was (+1.7% compared to 2016). Blu-ray discs sold between 20 and 25 represented the main category in volume terms with 22.2% of sales and also the main category in value terms with 26.3% of the market's total revenues. Methodology The analysis of video media by genre distinguishes two universes: feature film and non-feature film. The feature film category includes all feature-length films distributed in theaters in France. The 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 programs are not included in the scope of analysis. Decline of non-feature film Non-film video turnover was down 19.3% in 2017 for the eleventh consecutive year. Sales volumes of non-feature films on Blu-ray fell by 10.8% between 2016 and 2017 despite the success of certain titles, such as Les Enfoirés - Mission Enfoirés (1 st in the 2017 ranking for best-selling nonfeature films on physical video in value terms) or Game of Thrones - season 7 (2 nd ). In 2017, nonfeature films represented 32.2% of the market in value terms, vs. 36.0% in At million, sales of non-feature films dropped below the 200-million mark for the first time. Between 2012 and 2017, they fell by 14.6% per year on average and have effectively been halved (-54.6%). In 2017, non-feature films accounted for 17.1% of revenues for the Blu-ray format and 37.7% of DVD revenues. In fact, the offer remained less developed than on the film segment and high definition is perceived by users as being of less interest for non-feature film programs. In volume terms, sales of non-feature films declined 12.2% to 36.0 million units sold in Nevertheless, they outpaced sales of films for the fifth year running. Cinema continued to dominate the video market in value terms. Films represented more than 60% of revenues of physical video In value, films continued to dominate the physical video media market. Revenues of feature films amounted to million in 2017, or 63.3% of the total, and fell by 3.5% compared to Sales were down 5.0% for DVD and remained stable for Blu-ray. By volume, 32.3 million units sold contained a feature film in 2017, a decrease of 9.4% compared to Sales from promotional operations decreased by 17.4% in value in They represented 4.5% of the sector's revenues. 140 results 2017

141 Sales 1 of physical video by content 2 films non-feature films Volume (million units) Value (millions of ) P.O. 3 total films non-feature films structure 44.7% 49.9% 5.4% 100.0% 63.3% 32.2% 4.5% 100.0% trend 17/16-9.4% -12.2% -12.7% -11.0% -3.5% -19.3% -17.4% -9.8% 1 Sales inclusive of tax (inc. VAT). 2 VHS is no longer included. HD formats are included. ³ Promotional operations with no distinction between titles (titles sold under the same EAN code). 4 Updated data. Source: CNC GfK. P.O. 3 total Breakdown of video sales 1 based on content in 2016 (%) Breakdown of video sales 1 based on content in 2017 (%) P.O 2 4,8 P.O nonfeature films 36,3 films 58,9 nonfeature films 32.2 films 63,3 1 Sales inclusive of tax. 2 Promotional operations with no distinction between titles (titles sold under the same EAN code). Source: CNC GfK. results

142 Results of the best-selling feature films on physical video (% of total film sale volumes) top 10 top 20 top Source: CNC - GfK. The market share of French films in the video market was 19.4% top 20 physical video sales in value rank title feature/nonfeature film genre country of origin 1 % Blu-ray sales 1 Moana film animation US Rogue One: a Star Wars Story film fiction US Game of Thrones - season 7 non-feature film fiction US Fantastic Beasts film fiction GB Fast and Furious 8 film fiction US Game of Thrones - season 6 7 Les Enfoirés Mission Enfoirés non-feature film non-feature film fiction US 39.0 music FR - 8 Fifty Shades Darker film fiction US Harry Potter and the Deathly Hallows - Part 2 film fiction GB Guardians of the Galaxy Vol. 2 film fiction US Pirates of the Caribbean: Salazar's Revenge film fiction US The Walking Dead - season 7 non-feature film fiction US Wonder Woman film fiction GB Valerian and the City of a Thousand Planets film fiction FR La La Land film fiction US Logan film fiction US Beauty and the Beast film fiction US Trolls film animation US Cars 3 film animation US Doctor Strange film fiction US FR = France, US = USA, GB = Great Britain. Source: CNC GfK. A stable market share for French films In 2017, the market share of French films in the video market was stable at 19.4% (-0.6 points). 6.7 million DVDs and Blu-ray discs of French films were sold in 2017, vs. 7.8 million in 2016 (-13.5%). French cinema generated 65.9 million in revenues in 2017, down 6.5% compared to 142 results 2017

143 2016. French films accounted for 10.9% of Blu-ray sales in 2017 (9.5% in 2016), compared with 23.9 % in DVD film sales (25.3% in 2016). In 2017, a French film was among the twenty best sellers in value in video: Valerian and the City of a Thousand Planets (14 th ). Decline in sales of American films In 2017, sales of American films in video dropped to million (-4.1%). Their market share stood at 65.4% (vs. 65.9% in 2016). In terms of volume, almost 20 million DVDs and Blu-ray discs of American films were sold in 2017, 8.9% less than in American films accounted for 72.1% of Blu-ray film sales (vs. 75.3% in 2016), and 61.9% of DVD film sales (vs. 61.1% in 2016). In 2017, American programs achieved fifteen of the twenty best performance results for physical video in value terms, as in In fact, Moana came first in the ranking by value, ahead of Rogue One - A Star Wars Story (2 nd ) Fast and Furious 8 (5 th ) and Fifty Shades Darker (8 th ). European films on the rise Sales of non-french European films increased by 10.8% in 2017 compared to The market share for European films rose to 11.5% (+1.5 points). Revenues from non-french European films were mainly driven by the success of three British films: Fantastic Beasts (4 th in the ranking for the best video sales of 2017), Harry Potter and the Deathly Hallows - Part 2 (9 th ) and Wonder Woman (13 th ). Decline in non-european films In 2017, the market share of non-european and non-american films was stable at 3.6% (-0.4 points). Revenues slid 13.2% vs. 2016, to 12.4 million. Sales volumes fell 12.1% in 2017 to 1.1 million units sold. Sales 1 of films on video by country of origin 2 (millions of ) French films American films European films 3 other films Total structure 19.4% 65.4% 11.5% 3.6% 100.0% trend 17/16-6.5% -4.1% +10.8% -13.2% -3.5% 1 Sales inclusive of tax (inc. VAT). 2 The scope of analysis has been modified since 2007: VHS is no longer included. HD formats are included. 3 Continental Europe (from the Atlantic to the Urals), excluding France. 4 Updated data. Source: CNC GfK. results

144 Breakdown of video sales 1 based on content in 2017 (%) Total (DVD + Blu-ray) DVD Blu-ray Europe an films other films 3.6 French films 19.4 Europ ean films other films 3.3 French films 23.9 Europ ean films other films 4.3 French films 10.9 Americ an films 65.4 Americ an films 61.9 Americ an films Sales inclusive of tax. 2 Continental Europe (from the Atlantic to the Urals), excluding France. Source: CNC GfK. Breakdown of sales 1 of films on video by country of origin 2 (%) ,6 2,7 2,4 3,0 2,6 5,2 4,9 8,5 12,1 11,1 11,9 15,1 11,3 11,5 8,3 8,1 4,0 3,6 10,1 11, ,6 64,2 64,3 60,4 62,3 63,5 64,7 61,8 65,9 65, ,8 21,9 21,3 21,6 23,8 19,8 22,1 21,7 20,0 19, ³ Sales inclusive of tax. 2 VHS is no longer included. HD formats are included. 3 Continental Europe (from the Atlantic to the Urals), excluding France. 4 Updated data. Source: CNC GfK. French films American films European films² other films Non-feature film: the success of American series In 2017, all segments of the non-feature film market saw a decline in their video sales. Revenues from fiction (unit and TV series) on video dropped 18.6% to million. Fiction remained the best-selling genre in the non-feature film segment (63.9%), well ahead of children's programs and music (17.9%). Revenues from French fiction rose 2.9% in 2017 to 15.7 million. They represented 14.2% of total fiction revenues (11.3% in 2016). The leading work of French fiction in 2017, the third season of The Bureau (TV series), took 6 th place on the ranking of non-feature film programs in value terms. Video sales of foreign fiction fell 21.3% to 94.8 million in Foreign fiction, particularly American series, continued to dominate and this year generated 85.8% of revenues 144 results 2017

145 from fiction on video. American fiction therefore accounted for 9 of the top 20 places in the ranking, in value terms, of non-feature film programs, among which were the seventh season of Game of Thrones (2nd place) and season 7 of The Walking Dead (4th place). Sales 1 of non-feature film works on video by genre 2 (millions of ) documentary children fiction / series humor music theater other total structure 4.0% 17.9% 63.9% 4.0% 9.1% 0.3% 0.8% 100.0% trend 17/ % -19.1% -18.6% -45.6% -0.7% -25.5% -26.6% -19.3% 1 Sales inclusive of tax. ² VHS is no longer included. HD formats are included. 3 Updated data. Source: CNC GfK. Breakdown of sales 1 of non-feature film works on video by genre 2 (%) ,9 0,9 0,9 1,0 1,0 0,7 1,3 1,1 0,5 0,8 0,8 0,7 0,6 0,6 0,5 0,4 0,3 0,3 0,3 1,1 13,4 12,8 14,7 12,6 10,0 10,4 10,0 7,7 7,4 9,1 6,0 9,4 6,5 8,3 9,0 4,0 12,6 9,4 8,7 8, ,3 50,1 50,2 51,8 54,0 56,7 56,2 58,3 63,3 63, ,1 19,0 19,6 20,0 19,4 19,7 17,7 18,7 18,2 17,9 5,3 6,4 5,2 5,1 5,6 5,4 6,1 4,9 4,2 4, ³ Sales inclusive of tax. 2 VHS is no longer included. HD formats are included. 3 Updated data. Source: CNC GfK. documentary children fiction humor music theater other results

146 73,248 titles on DVD and Blu-ray were sold at least once in Decrease in the number of active titles A total of 59,245 DVD titles, 13,314 Blu-ray 2D titles and 689 Blu-ray 3D titles were sold at least once in The number of active titles for the DVD format fell (-5.3% between 2016 and 2017, i.e. 3,322 fewer) and reached the lowest level for the period. The increase in the number of Bluray -2D titles (+10.1% between 2016 and 2017) and Blu-ray 3D titles (+6.2%) failed to offset the decline of the DVD. The total number of active titles in physical video was 73,248 in 2017 (-2.7% overall compared to 2016, or -2,058 titles). Video offering by format (number of active titles) trend 17/16 Blu-ray 2D 2,089 3,379 4,945 6,852 8,440 9,718 11,014 12,092 13, % Blu-ray 3D % DVD 73,883 75,540 76,208 71,943 67,880 64,330 64,266 62,561 59, % Total 75,973 78,939 81,270 79,016 76,678 74,541 75,888 75,303 73, % 1 An active title is a title on DVD and/or Blu-ray sold at least once during the year. Source: CNC GfK. The Blu-ray 3D market Few French households are equipped with 3D-compatible screens; only 15.5% of households had one in 2017 according to GfK (15.7% in 2017). With 0.6 million units, the number of Blu-ray 3D sold in 2017 recorded a decline (-9.5%) for the third year in a row. Launched in 2010, this format accounted for 4.5% of Blu-ray sales, in volume, in 2017 (vs. 4.7% in 2016), i.e. 0.8% of all physical video sales (as in 2016). In 2017, Blu-ray 3D accounted for 9.7% of revenues from Blu-ray, and 2.6% of revenues from the physical video market (vs. 10.0% and 2.5% respectively in 2016). The average price of a Blu-ray 3D disc was in 2017, or 3.1% more than in Blu-ray 3D consumption sales 1 ( millions) units (millions) average price ( ) trend 17/16-6.6% -9.5% +3.1% 1 Sales inclusive of tax. 2 Updated data. Source: CNC GfK. 146 results 2017

147 4.3. Video on Demand (VoD) 2017 key figures: million in household spending on Video on Demand (+32.3% compared to 2016) million in Video on Demand by subscription (+89.5% compared to 2016) million in Transactional Video on Demand (stable) Methodology Every month, GfK counts the total number of videos sold or rented on the platforms that are most representative of the paid VoD market in France. The 100% estimate for the sector is calculated based on the following coverage rates as of 2015: TV set computer one-time rental 96.5% 96.5% one-time sale 13% 13% subscription 2.2% 2.2% According to GfK, the panel of platforms monitored represented 33.4% of sales for the VoD market in On the one-time rental segment, it represented 61.3% of sales in value and 72.4% in volume. Sales are inclusive of tax. The market for paid VoD in France was estimated at million in 2017, an increase of 32.3% compared to A market worth more than 480 million in 2017 According to the NPA-GfK barometer, sales on the paid VoD market in France were estimated at million in 2017, up 32.3% on For the first time, the SVoD market (subscription formulas) exceeded the TVoD market and accounted for more than half (51.3%) of total sales. The share of rental continued to decline and accounted for a mere third of the market (33.4%), while sales represented 15.2% of the market, i.e. down 3.3 points. Paid VoD market by type of transaction 1 (millions of ) 600,0 500,0 485,1 +32,3% 400,0 300,0 200,0 239,6 28,0 +10,6% 265,0 29,2 +19,9% 317,6 82,5 +15,4% 366,6 131,4 249,0 100,0 211,6 235,8 235,1 235,2 236,1 0, TVoD SVoD Trend between two consecutive years 1 Sales inclusive of tax. Source: GfK - NPA Conseil 100% estimate. results

148 Transactional VoD The TVoD market was estimated at million in Stability of the TVoD market in 2017 In 2017, the TVoD market was estimated at million, a stable result compared to At million, one-time rentals fell by 3.0% in 2017 compared to 2016 and captured 68.7% of TVoD sales (71.1% in 2016). Permanent downloads rose 8.7% over the period to 73.9 million, accounting for 31.3% of the TVoD market (28.9% in 2016). TVoD rental content was mainly watched on television sets. In 2017, 98.5% of one-time rentals were made on IPTV (98.9% in 2016), versus 1.5% via a computer (1.0% in 2016). The TVoD market 1 (millions of ) 250,0 211,6 +11,4% 235,8-0,3% 235,1 +0,0% 235,2 +0.4% 236,1 200,0 41,5 55,5 60,0 68,0 73,9 150,0 100,0 170,1 180,3 175,0 167,2 162,2 50,0 0, one-time rental permanent download Trend between two consecutive years 1 Sales inclusive of tax (inc. VAT). Source: GfK - NPA Conseil 100% estimate Films via one-time rental: 80.1% of the panel's sales, in value The market share in value of films via one-time rental was 80.1% in Television programs accounted for 5.8% of rentals (7.1% in 2016, or -1.3 points). Despite this decline, the French series Plus belle la vie broadcast on France 3 continued to perform strongly (1 st in the ranking of transactions by volume in 2017). The market share of adult programs was 14.2% in 2017 (14.9% in 2016, or -0.7 points). 148 results 2017

149 Sales structure by value 1 according to the type of program 2 (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 in 2011 and 2012: one-time payment / from 2013 to 2017: one-time rental. 2 Film = feature films released in theaters in France, and films released directly on video. Source: Panel GfK - NPA Conseil. 21,5 18,9 16,5 14,9 14,2 4,6 5,4 6,9 7,1 5,8 73,9 75,7 76,5 78,0 80, film television adult French films accounted for 33.5% of one-time rental transactions On the film segment, the market share in value of French films was stable between 2016 and 2017 (+0.2 points to 33.5%). The majority of one-time rentals in value concerned American films. They accounted for 56.2% of sales in value in 2017, (+0.9 points compared to 2016). Film market share by country of origin (%) Other films 11,4% 2016 French films 33,3% Other films 10.3% 2017 French films 33.5% American films 55,3% American films 56.2% Share of top performing films in total transactions 1 (%) top 10 top 20 top 30 Total Film = feature films released in theaters in France, and films released directly on video. 1 between 2007 and 2014: one-time payment / from 2015 to 2017: one-time rental. Source: Panel GfK - NPA Conseil. results

150 Fiction: television genre most consumed in one-time rentals Within the television segment, fiction (unit and television series) captured more than 70% of the one-time rental VoD market. In 2017, this genre captured 72.9% of transactions in value (68.9% in 2016). Video recordings of comedy shows represented 11.1% of transactions in value in 2017 (15.8% in 2016). Children's programs represented 7.9% of transactions in value (8.0% in 2016). The market share in value of documentaries reached 6.2% in 2017, versus 5.3% in Music captured a minimal market share (1.1% in 2017, versus 1.3% in 2016). Most fiction transactions were captured by US programs in value terms. These represented 49.7% of transactions in value for the genre in 2017 (58.9% in 2016), versus 44.3% for French series and fictions (37.3% in 2016). The increase in market share of French fiction series came on the back of an excellent performance by the series Plus belle la vie (1st in the ranking of sales in volume in 2017). In the children's animated programs segment, French works dominated the market. They accumulated 57.3% of transactions in value (+5.6 points compared to 2016), against 22.8% for US programs (-1.0 points), 12.9% for Asian programs (-2.6 points), 5.7% for non-french European programs (-1.8 points) and 1.3% for programs from other countries (-0.2 points). 39,339 titles were the subject of one-time rentals in Methodology Available titles designate programs downloaded at least once during the period surveyed. These results are issued from the declarations of the platforms in the GfK institute's panel. Nearly 40,000 active titles in 2017 on a one-time rental basis According to the panel of platforms monitored by GfK, 39,339 titles were active during 2017, a decline of 1.8% compared to 2016 (-714 programs). In 2017, 48.9% of active titles were adult programs (+2.0 points compared to 2016), 13.7% were televisions programs (-5.2 points compared to 2016). Film represented 37.5% of active titles via VoD (+3.2 points compared to 2016). In 2017, 52.3% of titles (all genres included) were available on a single platform, 19.6% on two platforms, 11.5% on three platforms, and 16.7% on four platforms or more. The adult segment was the genre with the most exclusive titles in 2017: 67.8% of the titles was in fact active on a single platform. Television represented 64.5% of exclusive titles. Within this sector, humor was not an exclusive offer. 64.6% of the programs in this genre were active on at least two platforms in Conversely, children's animation was an exclusive offer since 76.0% of television animation programs for children were active on a single platform. Film was the medium for which the presence of works on multiple platforms was the most common: 72.5% of the "film" titles were active on at least two platforms in results 2017

151 Active titles for one-time rental by program type (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 41,7 47,2 50,2 46,9 48,9 32,6 18,8 13,7 24,2 21,5 34,3 37,5 25,8 28,6 28, film television adults Film = feature films released in theaters in France, and films released directly on video. Source: Panel GfK - NPA Conseil. 4,680 French films and 6,265 American films were consumed at least once in Nearly 15,000 films available for one-time rental According to the panel platforms monitored by GfK, 14,734 films were active during 2017, an increase of 7.3% compared to 2016 (+999 films). In 2017, French films accounted for 31.8% of the offering (30.1% in 2016), American films 42.5% (43.6% in 2016) and films from other countries 25.7% (26.4% in 2016). Active titles of films for one-time rental ,7% ,9% -5.0% +7.3% Trend between two consecutive years Film = feature films released in theaters in France, and films released directly on video. Source: Panel GfK - NPA Conseil. The documentary: the television genre most represented in one-time rentals In the television segment, the best-represented genre in active titles for rental was the documentary. 40.3% of active titles fell within this genre in 2017 (46.4% in 2016). Fiction (unit and television series) totaled 27.7% (19.1% in 2016), children's programs 13.7% (19.1% in 2016), humor 7.0% (5.0% in 2016) and music 4.5% (4.3% in 2016). results

152 Subscription Video on Demand (SVoD) SVoD: an increase of +89.5% in value in 2017 In 2017, the SVoD market was estimated at million, up 89.5% compared to The US platform Netflix significantly boosted the market in 2017, as did Amazon Prime Video, launched in France in December On the other hand, the unlimited Canalplay platform saw the number of its subscribers shrink. The service is no longer marketed individually. The SVoD market was estimated at million, up 89.5% compared to SVoD market 1 (millions of ) 250,0 249,0 200,0 150, % 100, % 131,4 50,0 0,0 +182,4% 82,5 +4,5% 28,0 29, Trend between two consecutive years 1 Sales inclusive of tax. Source: GfK - NPA Conseil 100% estimate. According to a study conducted by NPA Conseil and Harris Interactive in September 2017 with 15,000 Internet users, 48% of works consumed via SVoD were series, 28% were feature films and 16% were children's programs. Methodology NPA Consulting & Research collects data on SVoD offers each month via the web sites of the services concerned. Ten platforms are analyzed in this way: Canalplay, Club Vidéo SFR Pass Cinéma, Club Vidéo SFR Pass Kids, Filmo TV, GulliMax, La Box Videofutur, Netflix, TFouMax, SFR Play and Amazon Prime Vidéo. This data is collected over one week during the month analyzed. Definition The "film" segment covers features films released in theaters in France, and films released directly on video. 2,790 feature films were available in SVoD in Nearly 2,800 feature films were available in SVoD in ,790 feature films (releases in France) were available in SVoD during % were American films, 33.3% French films, 12.7% non-french European films and 3.9% non- European and non-american films. The share of American films in the total offer increased in 2017 (+8.2 points) to the detriment of French films (-7.5%). The share of European and non-french films was stable. 152 results 2017

153 There was a substantial offering of old films. The actual theater release of 38.1% of films available dated back 20 years or more, versus 30.2% dating back between 10 and 19 years, 22.9% between 5 and 9 years, and 8.8% between 3 and 4 years. The share of recent films (less than 10 years old) fell to 31.7% in 2017 (-2.5 points). In 2017, 1,371 feature films were available on a single platform only (49.1% of available titles), 808 on two platforms (29.0%), 372 on three platforms (13.3%), and 239 on four or more platforms (8.6%). The share of titles available on two platforms increased by 8.9 points compared to The feature films offer via SVoD by date of release (%) 40 and over to and over 16, years old 8,8 20 to to years old 21,8 5-9 years old 22,9 Source: CNC-NPA Conseil. 10 to years old 30,2 results

154 VoD practices and uses in France Methodology The following data was taken from a "barometer" (i.e. measurements) of websurfer practices in terms of VoD, set up by the CNC. This survey is administered online by Harris Interactive market research among 15,000 individuals aged 15 and over and, since January 2016, by Vertigo market research among 12,000 individuals aged 15 and over. 37.9% of websurfers said they had already paid for VoD programs in The TV set remained the leading medium for VoD, ahead of the computer and the tablet The VoD audience is gradually expanding, notably through the development of multiservice offers. 37.9% of websurfers claimed to have already paid for VoD programs in 2017, compared to 37.4% in 2016 (+0.4 points). In 2017, 33.0% of websurfers said that they had paid to watch a program via paid VoD on IPTV (32.9% in 2016), versus 13.5% on their computers (13.1%) and 9.4% on a mobile device (8.6%). Penetration rate for paid VoD by device (% of websurfers) 40,0 35,0 30,0 25,0 31,7 27,0 34,4 33,0 28,6 28,9 37,4 37,9 32,9 33,0 20,0 15,0 10,0 5,0 9,9 10,0 4,3 5,5 12,1 13,1 13,5 8,2 8,6 9,4 0, total IPTV computer mobile device Source: CNC - Harris Interactive then Vertigo since 2016, aged 15 years and older. Paid-VoD consumers are mainly men aged 35 to 49 in the upper socio-professional category. VoD: an occasional practice In 2017, paid VoD consumers were mainly men (51.2% of VoD consumers), and people in upper socio-professional categories (34.3%). Compared to 2016, the proportion of women among paid VoD consumers fell by 0.4 points to 48.8% in The share of year olds fell by 0.9 points (16.8% in 2017) and that of year olds by -2.0 points (20.0% in 2017). With a rise of 3.5points between 2016 and 2017, the proportion of 50 years old and over reached 33.4% in In 2017, 56.2% of paid VoD users were occasional users (those who use paid VoD less than once a month). Conversely, intensive users (those who use paid VoD at least once a day) accounted for 6.0% of paid VoD users. 154 results 2017

155 In 2017, Netflix became the platform most used by VoD consumers, whereas in 2016, MyTF1VOD was in first place. 33.0% of VoD consumers reported having paid to watch a program on this platform in 2017, ahead of Orange VoD (27.2%) and MyTF1VOD (25.7%). It is worth noting the strong progression of Amazon Prime Video which jumped from 23 rd position to 13 th position. Netflix became the leading VoD platform in France in Ranking of VoD platforms in number of consumers (%) rank platform Netflix Orange MyTF1VOD CanalPlay VOD France.tv Google Play Arte SFR Play CanalPlay (unlimited offer) itunes SFR Club Vidéo la demande Amazon Prime Video Filmo TV Films&documentaires.com Fnac Play Studio Vidéo Futur Nolim Wuaki Carrefour Vodeo Cstream ADN Anime Digital Network Base: Websurfers declaring having paid to view feature films or TV programs via VoD. Interpretation: in 2017, 33.0% of consumers said they had paid to watch a VoD program via the Netflix platform. Source: CNC - Harris Interactive then Vertigo since 2016, aged 15 years and older. Also see -the statistical series on the Video on Demand market results

156 4.4. Video games 2017 key figures: Total turnover of video games (consoles + games) in France amounted to more than 3.5 billion (+2.5% compared to 2016) of which: 1,465.3 million for home consoles (device + games) million for handheld consoles (device + games) million for PC games Methodology: GfK Institute measures the sale of video games for consoles and computers. "Volume" refers to the number of units sold. Packages containing multiple games are called "bundles" and are not counted. Each game medium is paired with a genre (action/adventure, sports, FPS, MMO, etc.) and a country. Country categorization was done using data available to the CNC. Games that were designed and developed in France that had majority French design expenses are considered to be French. Game genres use nomenclature determined by the GfK. Unless stated otherwise, the data shown is inclusive of tax. IDATE establishes a total market estimate for video games including both sales of consoles and sales of physical and online video games. 52.4% of households have a game console In 2017, according to GfK-REC, 52.4% of French households had a game console, compared to 52.0% in 2016 and 50.6% five years ago. The equipment rate for home consoles increased to 48.0% (46.1% in 2016), while that for handheld consoles slid to 27.1% (29.8% in 2016). According to the Association of Leisure Software Publishers (S.E.L.L.) based on GfK panel data, 20.0 million home consoles and 19.5 million handheld consoles of the 7 th and 8 th generation were installed in homes at the end of Equipment sales up thanks to the arrival of new versions of consoles According to the S.E.L.L. and based on figures from the GfK Institute, sales of equipment rose in 2017 (2.9 million consoles sold in 2017 versus 2.2 million in 2016). In 2017, with the arrival of the Nintendo Switch and the Xbox One X, sales of video game equipment progressed. According to the S.E.L.L., of the 2.9 million consoles sold in 2017, 2.5 million were home consoles (1.5 million in 2016) and 420,000 were handheld consoles (732,200 in 2016). Nearly 3.5 billion generated by the video game market in France According to IDATE data, the video game market in France (devices and games) generated 3,526.0 million (before tax) in 2017, up 2.5% on 2016 ( 3,441.0 million). Turnover for video games in France in 2017 was largely generated by sales of home consoles (41.3%, versus 40.8% in 2016). The proportion of handheld consoles slipped 2.3 points to 6.3%, versus 8.5% in The share of the video game market on PC remained stable at 26.2% (25.4% in 2016). Other media (smartphones, tablets, online TV) accounted for 26.2% of the market, versus 25.3% in results 2017

157 Trends in turnover 1 of video games in France (millions of ) , , , , , ,3 871,1 924,2 574,2 692,0 712,1 765,6 825,4 874,1 925,1 512,3 358,6 275,0 292,6 220, , , , , , Turnover before tax. 2 Turnover including sales of devices and games (physical and online). 3 Games on PC. 4 Games on smartphones and tablets, games on demand via television. Source: IDATE. home console² handheld console² PC³ other⁴ results

158 The physical video game market The market for physical video games continued to shrink, by 2.3% in volume, but rose by 1.4% in value In 2017, sales of video games on physical media continued to decline in volume (-2.3%, versus -7.0% in 2016). Since 2012, the volume of physical video games sold in France has fallen by 8.2% per year on average. The volume of French games sold increased by 57.3% while that of foreign games decreased by 5.8% compared to Foreign games made up 91.3% of the volume sold in 2017 (-3.3 points compared to 2016), versus 8.7% for French games (5.4% in 2016). In value terms, video game sales (incl. taxes) rose 1.4% in 2017 to million. The market has seen the emergence of new playing habits (online and mobile) which do not require traditional game media (tablets and smartphones, in particular). French video games saw their sales double in value (+101.9%) while that of foreign video games fell back by 3.6%. The strong growth of French video games can largely be explained by the success of Tom Clancy's Ghost Recon: Wildlands ( 13.4 million in 2017). Sales of physical video games reached million in The average price of a game increased to In 2017, the average price incl. taxes of a physical video game rose to (+3.8%). The average price of French games rose by 28.3% to ( in 2016) and the average price of foreign games to (+2.2% i.e. a record level). The price gap between foreign games and French games therefore narrowed in For the first time since 2008, French video games sold, on average, for 4.13 more than foreign video games in 2017 ( in 2016). Sales volume of physical video games, by country (millions of units) trend 17/16 French games % foreign games % Total % Source: CNC GfK. Sales 1 of physical video games in value by country (millions of ) French games foreign games trend 17/ % 1, , , , , % Total 1, , , , , , % 1 Sales inclusive of tax. Source: CNC GfK. Foreign games represented 90.5% of the market in value and French games 9.5%. 158 results 2017

159 Home consoles accounted for 68.8% of revenue In 2017, in value terms, sales of video games on physical media decreased for home consoles, handheld consoles and PCs. Sales of computer video games saw the biggest fall in 2017: -47.8% to 20.2 million. Sales of video games for handheld consoles also decreased in 2017, by 27.9% to 99.2 million, and sales of video games for home consoles fell by 10.2% to million. It is worth noting the successful launch of the Nintendo Switch in March 2017, a hybrid console that can be used as a home console and as a handheld console. The revenues captured by games for the Switch in 2017 amounted to million. In 2017, games for home consoles represented 68.8% of the revenue generated by the physical video game market (-7.8 points on 2016). In 2017, the average selling price of video games on physical media was stable for home consoles. With an average price of in 2017 ( in 2016), video games for home consoles were the second most expensive on the market behind games for Nintendo Switch with an average price of in Then came games for portable consoles, whose average price was in 2017 ( in 2016). The average price of computer video games stood at in 2017 (-8.6%). Breakdown of physical video game sales, in value and by device (%) 100% 80% 60% 13,2 12,5 10,9 10,1 10,3 7,4 7,1 5,9 4,8 17,0 17,6 18,7 20,6 20,0 21,8 28,1 15,5 17,1 16,3 2,5 12,3 40% 20% 58,7 65,6 72,1 72,3 71,1 72,0 72,9 78,6 76,6 68,8 0% Source: CNC GfK. hybrid console games computer games handheld console games console games Home-console video games constituted almost 80% of the French video games sold For French video games alone, home-console video games retained a dominant market share in 2017: 81.1%, compared to 93.7% in French video games achieved 0.8% of their turnover on handheld consoles in 2017, versus 2.1% in The market share of games for Nintendo Switch among French video games was 17.1% in Over six years, sales in value of French video games for handheld consoles fell dramatically, from 5.5 million in 2012 to 0.6 million in Computer games accounted for 0.9% of French video game revenues in value compared to 4.1% in results

160 Sales 1 of physical video games in value, by country and device (millions of ) trend 17/16 French games % on home console % on handheld console % on Switch on computer % foreign games 1, , , , , % on home console % on handheld console % on Switch on computer % Total 1, , , , , , % 1 Sales inclusive of tax. Source: CNC GfK. Games for 8 th generation consoles captured 78.3% of the physical video game market In 2017, sales of games designed for the three 8th-generation home consoles (Wii U, PS4 and Xbox One) witnessed various developments. Sales in value of games for PS4 increased by 4.1% in 2017, while sales of games for Wii U decreased by 53.8% and those for Xbox One by 13.9 %. In 2017, sales of physical video games for 8th-generation consoles (3DS, PS Vita, Wii U, PS4, and Xbox One) accounted for 78.3% of the market for video games on physical media ( million) compared to 86.5% in The Nintendo Switch already represented 16.3% of the market in value in Conversely, revenue from the sale of games for 7th-generation consoles (DS, PSP, Wii, PS3 and Xbox 360) fell by 66.5% in 2017 to 22.7 million for a market share down 5.8 points year on year to 2.8%. In 2017, games for PS4 again dominated the French market with million in revenue, a market share of 52.4% (versus 51.0% in 2016). They were followed by games for Nintendo Switch with revenue of million in Sales of 3DS video games were down 25.8% to 97.7 million, representing a market share of 12.2%. In 2017, the sale of Wii video games (7th generation) fell by 55.0% in value to 5.5 million, and the sale of Wii U games (8th generation) fell by 17.6%. French video games accounted for 70.2% of Wii video game sales in In the segment of handheld consoles, video games for 3DS represented a market share of 98.5%. Sales of games for Sony's PS Vita slumped by 73.0% to 1.3 m. In 2017, sales of physical video games for hybrid consoles already accounted for 16.3% of the market by value. 160 results 2017

161 Breakdown of physical video game sales in value and by device (%) 2,0 17 2,2 52,4 11,4 0,2 12,2 1,5 0,70,6 16,3 2,5 2,0 16 4,8 51,0 13,4 0,6 16,6 1,6 4,9 2,0 0,1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Wii U PS4 Xbox One PS Vita 3DS Wii PS3 Xbox 360 DS Switch computer other home consoles¹ 8 th generation consoles: Wii U, PS4, Xbox One, 3DS, PS Vita. ¹ PS2, Xbox, etc. Source: CNC GfK. Best-selling physical video games in volume in 2017¹ label units sold 1 (in thousands of units) 1 FIFA 18 1, Call of Duty: World War The Legend of Zelda: Breath of the wild Mario Kart Assassin's Creed Origins Super Mario Odyssey Pokemon Ultra Moon + Sun Crash Bandicoot - N. Sane Trilogy GTA Call of Duty: Infinite Warfare Horizon Zero Dawn Minecraft Fifa Destiny Star Wars: Battlefront Splatoon Tom Clancy's Ghost Recon: Wildlands Gran Turismo Sport Resident Evil 7: Biohazard Overwatch Origins ¹ All platforms combined. Source: CNC GfK. Definitions of video game genres MMO (Massively Multiplayer Online): They innovate, in particular, by creating "persistent worlds" which operate around the clock. FPS (First-Person Shooter): shooting games based on aiming and moving and in which the environment is viewed through the eyes of the character being played. RPG (Role Playing Game): video games inspired by traditional role-playing games. The player plays the part of one or more "adventurers" who specialize in a specific field (combat, magic, etc.) progressing within a linear plot. New genres: games involving raising animals or farming livestock, music, singing, dancing, rhythm, job simulations or party games. Some of these games require a dance floor or a replica of a musical instrument. results

162 Action/adventure games continue to top sales, both in volume and value In 2017, the three biggest genres in volume (action/adventure games, FPS and sports games) made up more than half of total physical video game sales (55.6% of sales in volume, compared to 57.2% in 2016). The majority of genres posted declining sales volumes, except for platform games (+75.3% to 1.7 million units), racing games (+63.2% to 1.7 million units), and action/adventure games (+5.0% to 5.1 million units). They remain at the top of the French market in volume with The Legend of Zelda: Breath of the wild and Assassin's Creed Origins, ahead of the FPS (Call of Duty: World War 2, Destiny 2), and sports games (2.3 million units sold in 2017, versus 2.7 million in 2016) thanks in particular to the first place of Fifa 18, which easily outdistanced the other games in the ranking. In value, the three biggest genres accounted for 60.1% of physical video game sales in 2017, compared to 60.6% in The biggest increases were in platform games (+106.1% to 65.8 million), racing games (+83.7% to 79.8 million) and board games (+29.2% to 6.7 million). In contrast, the largest declines in key genres affected MMOs (-86.1% to 3.0 million), simulation games (-37.2% to 6.3 million) and action/adventure games (-30.0% to 83.6 million).- The breakdown of French video game sales by genre differed from that for all countries combined. With revenue up more than sixfold in 2017, the "action/adventure" category ( 43.3 million in 2017) has become by far the best-selling French genre with, in particular, Tom Clancy's Ghost Recon: Wildlands, the only French game present in the top 20 in volume and value. In 2017, the market share of French games on the action/adventure genre reached 19.3% (+15.7 points) and came in 2 nd position behind the "new genres" category, which constitutes the genre with the highest market share for French games at 46.2% (-2.6 points compared to 2016). At 10.2 million and 15.5% market share, platform games were the third largest category in terms of market share. Sales 1 of physical video games in value by genre (millions of ) trend /16 action/adventure % FPS % sports % RPG % racing % platform % new genres % combat % management/war games % board games % simulation % MMO % compilation % educational multimedia software % other % Total 1, , , , , , % 1 Sales inclusive of tax. Source: CNC GfK. 162 results 2017

163 The online video game market Methodology: IDATE estimates the sale (excluding tax) of online video games for home consoles, handheld consoles, personal computers and mobile terminals (smartphones and tablets). The estimate of computer-based online game sales and mobile-based game sales includes the sale of online software as well as revenue from in game practices (sale of virtual goods, commission on exchange rate operations, in game advertising). The online video game market: 76.8% of the overall market (excluding equipment) According to IDATE, the online video game market in France was worth 2,272.1 million (before tax) in 2017 (+11.5% on 2016), or 76.8% of the overall video game market (excluding equipment) (71.3% in 2016). The turnover of online video games should continue to grow in the coming years and could reach 2.5 billion in 2018 (+8.3% compared to 2017) and 2.7 billion in The share of online video games on the video game market as a whole should reach 81.5% in 2018, 85.5% in 2019 and 87.9% in According to IDATE, the online sale of video games for home consoles represented more than 40% of the total revenue from the sale of video games for home consoles in 2017 (42.2% versus 32.1% in 2016). In 2020, 67.4% of the turnover of video games for home consoles could come from online sales of games. The online sale of games for handheld consoles constituted 41.3% of this category's turnover in 2017 according to IDATE and could represent more than three quarters in 2019 (78.4%). Computer games are already largely purchased online. In fact, 95.2% of the turnover for computer games in 2017 came from online sales. IDATE believes that 96.5% of sales of computer games could be made online in France in Bigger share of games on home consoles and handheld consoles in online sales In the online games sales, the share of games on home consoles increased (18.2% in 2017 versus 14.8% in 2016). According to IDATE, the market for digital games on home consoles stood at million in 2017 and could show an average annual growth rate of 17.9% until The share of online games on handheld consoles remained minimal (2.3% in 2017), while the market for online games on handheld consoles grew by 36.2% compared to 2016 to reach 53.1 million. In 2017, the market for mobile games on smartphones and tablets grew by 5.9% compared to 2016 and amounted to million, including million for games on smartphones and million for those on tablets. The growth of mobile games remained below that of all online games (+11.5% between 2016 and 2017). In 2017, the segment of mobile games on smartphones accounted for 29.5% of sales, while the segment of mobile games on tablets represented 10.9%. Similarly, the market for online computer games grew by 6.8% compared to 2016 ( m in 2017), but their share in the entire online games market (38.8% in 2017) decreased by 1.7 points compared to 2016 (40.5%). However, online computer games remained the main segment of the online video game market in France in results

164 Breakdown of the online video game market in France by device (% of turnover) 100 5,5 8,1 9,9 11,0 11,2 10,9 10,7 10,6 10, ,8 36,1 35,1 33,4 31,4 29,5 28,3 27,7 26, ,8 37,3 36,5 35,4 40,5 51,3 48,2 45,6 42,9 2,5 2,6 2,1 2,3 1,9 1,3 14,8 18,2 20,8 22,2 24,6 0,3 0,7 1,1 6,0 6,8 8,2 11, Estimates online games on TV mobile games for tablets mobile games for smartphones online games for computers online games for handheld consoles online games for home consoles Source: IDATE. Estimated trend in video game revenue in France (excluding equipment) (% of turnover) ,0 28,7 23,2 18,5 14,5 12, ,0 71,3 76,8 81,5 85,5 87, ,020 physical video game market online video game market Source: IDATE. Also see -the study Le marché du jeu video en the statistical series on the video game market by the CNC 164 results 2017

165 4.5. The technical services sector 2016 key figures: 715 companies 1.16 billion in turnover for the technical services companies (+5.0% compared to 2015) 80.2 million in exports (+16.7% compared to 2015) Methodology In the activity nomenclature in force since January 1 st, 2008, the technical service providers for the cinema, broadcasting and multimedia sectors have mainly been referenced by the INSEE under the APE codes: 5912Z (post-production of feature films, video and television programs), 5911C (production of films for cinema, including film studios) and 5920Z (music publishing and sound recording activities). At the same time, equipment manufacturers are referenced under the six codes relating to the wholesale of electronic devices or components: 4643Z, 4647Z, 4648Z, 4649Z, 4652Z, 4673B. Ficam (the Federation of Cinema, Television and Multimedia Industries) brings together more than 150 companies whose business covers all the trades involved in recorded entertainment services. Member companies represent around 70% of all turnover reported by technical services companies. Each year, Ficam collects economic and social data from its members, which is analyzed to reveal characteristic trends in the sector. Unless stated otherwise, the data presented in this chapter are either taken from Ficam's analysis or from the Report of the Sector of Technical Companies for Creation and Events, drawn up with the cooperation of Ficam, Synpase, Groupe Audiens and AFDAS, the 10 th edition of which was published in January The sample which Ficam selected for this study brings together a panel of 106 member companies that have provided usable data over several years. Every company is considered regardless of its membership of a group. Market-related data are provided by the Ficam's Trades and Markets Observatory, which brings together representatives from each trade (manufacturers, shooting, image post-production, sound post-production, etc.) and each market (film, TV drama, flux TV programs, advertising, animation) and publishes quarterly indicators, an annual summary of which is offered here. Outline of the technical services sector The technical services sector provides essential services in the process of creation, production, and showing of films and television programs. In particular, its companies provide the equipment and facilities (fixed and mobile) for shooting, provide picture editing required by the narrative (postproduction and visual effects) and the reproduction of original works for showing (laboratory processing, duplication, digital copies DCP, non-digital copies). All in all, they provide the equipment for theater screening, television or Internet distribution and broadcasting, the tools required for the long-term conservation of recorded materials (digitization, archiving, and storage) or the restoration of heritage works. The technical services sector therefore includes: -shooting service providers, which include equipment rental companies (cameras, lenses, cranes, lighting, sound desks, boom microphones, etc.), mobile control rooms (mobile studios especially equipped for broadcasting television events) and filming studios (recording sets); -image post-producers (editing, calibration); -companies in charge of digital effects; -sound post-producers, who perform sound editing of images, on the basis of sounds recorded during shooting or reproduced in the studio (auditorium); results

166 -companies responsible for dubbing or subtitling services for the distribution and broadcast of international works in France, the worldwide distribution and broadcast of French works or adaptation for the blind and visually impaired (audio description) or deaf and hearing impaired (subtitling); -laboratories, which are involved at different stages in the production of a work, from shooting to finishing. They include, in particular, the production laboratories (security measures for shooting data or development of rushes), post-production laboratories and laboratories providing digital copies in the various video formats required for distribution and broadcasting of works (film, television, VoD). Digital post-production is now widespread. Certain laboratories also provide a film backup service for the purpose of long-term conservation; -companies specializing in film restoration (removal or mitigation of faults in a film degraded by time), archiving or storage (storage of films and conservation of digital data); -manufacturers, or distributors, including manufacturers of equipment (needed for the requirements of the various production stages) and manufacturers of consumable and non-consumable media (film, hard drives, memory cards and media, servers) or storage and image processing systems, computer components. 166 results 2017

167 Organization and operators in the technical services sector Producer Theater Archive, film library, catalog Theater film distributor TV channel DVD/VOD Editor Shooting service provider (light, machinery, shooting, etc.) Image post-producer Digital visual effects service provider Sound postproducer Dubbing - subtitling service provider Digital or physical distributor Digital and security laboratory Service provider in charge of archiving/restoration and long-term conservation Production Distribution and security Long-term restoration and maintenance Manufacturer of hardware, software, Source: network installer, CNC. installer of digital projectors, etc. A certain type of operation can be provided by several companies (e.g. lighting, machinery, shooting) and, conversely, a single company may provide several types (e.g. post-production, laboratory, archiving). results

168 715 technical service companies in France In 2016, the technical services sector had just over 700 companies in France, almost 200 of which were steady businesses. The sector is characterized by a few major players with a structuring role surrounded by multiple small businesses. In fact, 20% of companies achieved 80% of the sector's turnover and the top 10 companies, in terms of turnover, accounted for 55% of the sector's employees. In 2016, the technical services sector numbered 715 companies in France, almost 200 of which were steady businesses. Mid-sized companies According to the results of the study carried out by Ficam, 46.2% of companies employed between 1 and 9 permanent employees in 2016, as in 2015, and 40.6% employed 10 to 49 (as in 2015). However, on average these companies are larger than all national firms. In fact, the statistics concerning the entire industry, business and services sector in France show that 82.9% of companies employed between 1 and 9 people, and 14.2% had 10 to 49 employees (source: INSEE on January 1, 2013, excluding agricultural and financial firms). As regards the services sub-sector in general, the breakdown of companies with employees revealed an even more significant share of small enterprises, with 84.4% of them employing 1 to 9 people. Number of firms by permanent staff to 9 employees to 49 employees to 99 employees or more employees total Field: companies that provided all the information from 2007 to The drop from 109 to 106 companies between 2012 and 2013 is due to the merging of subsidiaries within the same group. Source: Ficam. More than 70% of employees in the technical services are men The technical services sector is male dominated. 7 out of 10 casual employees were men in This figure is stable over time and should be viewed alongside the previously identified relatively low number of women in jobs, which are generally technical in nature. Just over two thirds of permanent employees are men. Permanent and casual workforce by gender permanent men 3,456 3,700 3,981 4,343 4,475 4,697 4,465 4,432 4,214 4,463 casual men 10,996 11,637 11,805 12,149 12,524 12,247 12,231 12,040 11,681 11,744 total men 14,452 15,337 15,786 16,492 16,999 16,944 16,696 16,472 15,895 16,207 permanent women 1,852 1,912 1,993 2,126 2,167 2,269 2,156 2,037 1,853 2,030 casual women 4,422 4,526 4,489 4,676 4,808 4,831 4,638 4,741 4,605 4,557 total women 6,274 6,438 6,482 6,802 6,975 7,100 6,794 6,778 6,458 6,587 total permanent staff 5,308 5,612 5,974 6,469 6,642 6,966 6,621 6,469 6,067 6,493 total casual staff 15,418 16,163 16,294 16,825 17,332 17,078 16,869 16,781 16,286 16,301 total 20,726 21,775 22,268 23,294 23,974 24,044 23,490 23,250 22,353 22,794 Source: Audiens. results

169 1.16 billion in turnover in 2016 For the purposes of estimating the overall turnover of the technical services sector, only companies with over 50% of their turnover in the field of technical services are considered here. Turnover of the technical services sector was estimated at 1.16 billion in 2016, up 5.0% from Companies with turnover of more than 10 million accounted for 63.5% of total turnover on the technical services sector in 2016, a figure which is virtually stable compared to 2015 (62.9%). In addition, between 2007 and 2016, the average turnover of the Ficam companies which responded fell from 7.0 million to 6.4 million. The sector has for a number of years been faced with a twin phenomenon of concentration via restructuring and consolidation of subsidiaries within groups and fragmentation with the development of smaller structures. Turnover of the technical services sector was estimated at 1.16 billion in 2016, up 5.0% compared to Turnover of the technical services sector (millions of ) technical services 1 trend (%) responding companies 2 trend (%) average TO , , , , , , , , , , Ficam member companies, i.e. roughly 70% of the total turnover of the technical services sector. To evaluate the overall turnover of the technical services sector, only companies achieving more than 50% of their turnover in the field of technical services were considered. 2 Companies that provided all the information to the Ficam: 109 between 2007 and 2012, 106 from 2013 to Average turnover of companies that provided all the information to the Ficam. Source: Ficam. The slight recovery in turnover observed since 2015 was confirmed in 2016 and permitted a return to a level of activity close to that of This improvement was partly due to improved tax credits that allowed a significant portion of services to be relocated. The increase in tax credits helped improve the economic health of the sector. 13.2% of companies achieved a turnover of more than 10 million Over 86% of companies in the technical services sector generated a turnover of less than 10 million in Most of the companies in this category had turnovers of between 1 million and 5 million (39.6% of the panel). Many sound and image post-producers are included in this category. results

170 The number of companies with a turnover of between 1 and 5 million decreased by 4.5% in companies generated less than 1 million in turnover (one more than in 2015). Taken individually, very few companies had turnovers of more than 50 million. Number of companies by turnover less than 1 million between 1 million and 5 million between 5 million and 10 million between 10 million and 20 million million and more total Field: companies that provided all the information from 2007 to Source: Ficam. The shooting and post-production trades, main sources of revenue In order to evaluate the contribution of each sub-sector within the technical services sector to the total revenue of the sector, the turnover of each company was divided between the different services that it provides. The shooting trades saw their turnovers increase by 5.3% in The equipment rental business was down 11%, but remained at a significant level of turnover, beyond 100 million, in continuation of The turnover of in-studio shootings increased by 39%. According to figures from the Ficam Barometer, the number of shooting weeks shrank by 12%, the amounts invested decreasing by 9% between 2015 and The shooting trades contributed 47.6% of the total turnover of service providers in Image post-production generated 20.0% of total turnover in 2016, versus 19.3% in Following a decline in revenues of 16.4% between 2010 and 2012 (loss of the Quinta group companies, Duran-Duboi, on-line distribution, etc.), they returned to a 24.7% upward curve between 2012 and This preservation of image post-production is explained by the business driver of animation production and by visual effects (VFX). Since 2014, VFX turnover has been steadily increasing to reach 66.4 million in 2016 (+7.6% in 2016). In February 2016, the CNC announced the introduction of a major special effects plan, with the aim of restoring special effects' fair value in the production process. The turnover corresponding to laboratory work (including laboratory, dubbing, subtitling, distribution and duplication) reached million in 2016, down 1.7% compared to The share of laboratory work in the total turnover of the technical services sector reached 23.9% in 2016 (-1.8 points compared to 2015). Growing share of turnover by the restoration sector Archiving, storage and restoration made a minimal contribution to the overall turnover of the technical services sector (3.0% in 2016 versus 2.2% in 2015). This activity was down sharply in 2015 (-44.7% of turnover), probably due to the takeover of Eclair by Ymagis which led to restructuring of activities around Eclair Préservation. In 2016, the sector's turnover jumped by 47.1%. Very few companies make restoration their main activity, but in the context of digitization encouraged by CNC funding, more companies are positioning themselves on this market. 170 results 2017

171 The shooting of foreign films in France According to Film France, in 2016, 29 foreign television fictions were shot in France, representing 846 shooting days (14 television fictions in 2015 for 232 shooting days). 66% of shooting days benefited from the international tax credit in 2016 (62% in 2015). 34 foreign feature films were shot in France in 2016 (+17% on 2015), representing 323 days of shooting (-5%). 16% of shooting days took place in the context of minority co-productions approved by the CNC, and 45% received an international tax credit. Turnover of the technical services sector by trades (millions of ) shooting (studio, rental companies, etc.) image post-production of which visual effects (VFX) sound post-production post-production work archiving, storage, restoration equipment manufacturer (shooting, post-production, etc.) total Field: companies that provided all the information from 2007 to VFX field: 19 member companies of Ficam (and 2 non Ficam) reported a VFX activity between 2008 and This panel included estimates from 2 non-ficam companies, representatives of the vertical integration of post-production means (and therefore VFX) within the chain of production of commercials. 2 Laboratory, dubbing, subtitling, distribution, duplication, etc. Source: Ficam. Television remains the main client of technical service providers Technical service providers work mainly in six markets: feature films, stock television programs, flux television programs, animated programs and visual effects, multimedia and advertising or institutional films. Most companies in the sector offer services in several of these markets and it is increasingly rare for a company to work in only one market. The film and television markets (stock and flux programs) alone accounted for 79.8% of the overall turnover of the technical services sector in In 2016, the television market (stock and flux) generated 54.1% of resources, versus 54.6% in 2015 with turnover up 4.8% in Since 2005, television has been the primary source of revenue. In 2016, out of a turnover of million generated by television (106 companies responded), activities on flux programs (live, variety shows, sports) accounted for million, or 57.1% of turnover generated by television versus 55.4% in The production activities of stock programs (fiction, documentaries) were estimated at million, or 42.9% of turnover generated by television (44.6% in 2015). Resources from the cinema sector grew by 12.9% in 2016, mainly due to the sharp increase in the amounts invested in cinema production between 2014 and 2016 (+38%). In 2016, the TV market (stock and flux programs) generated 54.1% of the revenues of technical service companies. results

172 The third biggest market for technical services was advertising (13.1% in 2016), with turnover up 4.9% in This trend was partly due to a rise in the turnover of post-production on this market (+4.6% in 2016). The turnover of animation, their fourth biggest market, rose 32.0% to 30.5 million in Turnover of the technical services sector by markets (millions of ) television (stock + flux) cinema advertising and institutional animation multimedia others¹ total ¹ Video, live shows, educational, etc. Field: companies that provided all the information from 2007 to Source: Ficam. Trends in turnover of visual effects by market (millions of ) TV (stock) TV (flux) cinema advertising total VFX field: 19 member companies of Ficam (and 2 non Ficam) reported a VFX activity between 2012 and We chose to include in this panel estimates from 2 non-ficam companies, representative of the vertical integration of post-production means (and therefore VFX) within the chain of production of commercials. The advertising market represented 71.7% of the turnover of VFX activity in A fully digital production line The digitization of the production chain, from shooting to post production is completed. Over 95% of film shootings are now digital and non-digital post-production has been marginal since In television, HD and large-sensor digital film cameras represented nearly all the weeks of shooting. Breakdown of shooting weeks by filming medium for cinematographic fiction 1 (%) HD video camera K / 4K digital cinema camera mm mm not specified total French-initiative cinematographic fiction for which shooting began in that year. Source: Ficam Trades and Markets Observatory. 172 results 2017

173 Breakdown of shooting weeks by filming medium for TV films 1 (%) mm mm HD Beta / DV / SD K / 4K / 6K digital camera not specified total French-initiative TV films whose shooting began in that year. Source: Ficam Trades and Markets Observatory. New image and sound formats Aside from image resolution, which has increased twentyfold in ten years (from SD to 4K), production hardware and channels that allow for shooting and post-production with a higher frame rate (HFR) or high dynamic range (HDR) appeared in 2014 and should become increasingly commonplace. Moreover, technical industries are also diversifying into new individual immersive formats such as virtual reality. Strengthening of digital data security practices during shooting and post-production In 2014, the CST (Advanced Technical Image and Sound Commission), in association with Ficam and the AFC (French Society of Cinematographers), published a technical recommendation regarding digital data security during shooting and post-production as well as its safeguarding and short-term conservation (CST - RT Cinema 2014). Setting out the principle that rushes, regardless of their recording media, remain the most precious raw material obtained from shooting a film, and that no computer manufacturer offers a data conservation guarantee and lastly that, despite the potential for lossless duplication offered by digital media there remains a requirement for good security measures, this recommendation aims to set out the professional practices and appropriate tools for digital data film security during shooting and post-production, as well as its safeguarding and shortterm conservation. It spells out the roles and relationships between the various operators in the sector: camera rental companies, DIT (digital image technician), digital laboratories, visual effect companies, and so on. Thus, it seeks to clarify the security strategy implemented by producers, in collaboration with their supplier partners, which must be expressed as explicitly as possible in the main contractual and administrative documents. This strategy refers to the duration of the first exhibition of the work (all versions included). Adoption of mezzanine formats in partnership with the Fraunhofer In February 2011, the CNC asked the CST to develop technical recommendations to ensure sustainable exhibition of cinematographic works on all digital distribution and broadcast methods. In November 2012, a working group made up of the CST and Ficam upgraded this technical recommendation to give it a broader normative scope. This recommendation was given, in consultation with the German Fraunhofer Institute, before the SMPTE global standards organization that formalized the publication of the standard in September This important success permits the definition of a reliable and sustainable format for digital conservation of works. results

174 Surge in investment Investment by technical service providers increased by 80.3% between 2015 and 2016, reaching its highest level since By way of comparison, production industries saw their investments rise by 4% in 2016 (INSEE figures). Each company invested an average of 578,751 in 2016, compared to 321,114 in Technical services sector investments 1 (millions of ) investments turnover investments / turnover (%) Investments relating to the purchase of new equipment (not counting staff training and financial valuation of new tools). Field: companies that provided all the information from 2007 to Source: Ficam. Companies whose turnover exceeded 20 million were still those that have invested the most since Investments by companies between 10 million and 20 million decreased in favor of companies positioned in tranches between 1 million and 10 million of turnover. They were concentrated once again in companies with turnover of above 10 million (45% of total investments in 2016, versus 62% in 2015). Increase in export turnover For the technical services sector, exports are essentially due to a double phenomenon: they include not only services rendered on the international markets, but also services that are rendered in France for foreign films and which are invoiced abroad. In 2016, turnover related to exports increased (+16.7%) for the fourth year in a row to 80.2 million. Its share in the total turnover of the panel of companies is estimated at 11.7%. In 2016, exports of the technical service sector amounted to 80.2 million, an increase of 16.7% compared to Exports of the technical services sector (millions of ) exports turnover exports / turnover (%) Field: companies that provided all the information from 2007 to Source: Ficam. TV saw its share in the turnover of exports dip to 59% in 2016 (versus 61% in 2015) for an amount of 48 million, while cinema saw its share rise from 18% in 2015 to 22% in Two principle factors explain the dominant position of television in exports: high-potential international manufacturers and the expertise of specialized companies recognized worldwide. Three activities captured more than half of revenues generated by exports: dubbers/subtitlers (38.1%), the shooting equipment rental companies (31.9%) and post-producers (24.6%). After two consecutive years of decline, export turnover from dubbing/subtitling activities returned to its 2013 level and has more than doubled since This development is 174 results 2017

175 credited to the arrival of new distributors on the French market (subscription video-on-demand platforms such as Netflix or Amazon Prime Video), the growing demand from foreign distributors (especially American studios) for this type of service and the development of new activities such as audio description, particularly in the television sector. Shooting has seen its export share rise steadily since 2009, probably due to outsourcing. results

176 5. INTERNATIONAL results

177 5.1. Export of films and television programs 2016 key figures: million in export funding (+0.6% compared to 2015) million for television million for cinema Export funding in 2016 Source: CNC - TV France International. Nearly 730 million in export flows Financial flows from abroad to French film and television productions correspond to feature film sales and presales and sales of French television programs abroad as well as to co-production investments from abroad whether they concern minority or majority French co-productions. In 2016, all of these financial flows amounted to million (+0.6% versus 2015), of which 46.1% for television programs and 53.9% for feature films. Export funding (millions of ) television programs sales 1 presales 2 co-production investments 2 films sales 3 co-production investment trend 16/15 (%) Sales include those achieved with TV5: 2.6 M in 2016 ( 2.2 M in 2015). 2 Live shows are included in presales and co-production investments and therefore fall within the scope of the study. 3 Including French minority and majority co-productions. 4 Foreign investments in French minority and majority co-productions. Source: CNC - TV France International. results Total