Improvements at TF1

“TF1 is still the worst-performing (commercial) broadcaster this year,” says a report from investment banker Morgan Stanley, “but things are improving.”

“After years of steady decline, TF1’s group audiences have stabilised at a high level over the last 12 months. TF1’s rebates are now more in-line with peers’, and the incremental impact of the six new channels and the expansion of Canal+ into DTT has so far been fairly limited. There is no new ‘wave’ of audience fragmentation in the regulator’s pipeline.”

The bank’s report adds: “The rate of decline of private consumption and TV adspend notably improved in Q2 and our contacts expect further advertising improvement in Q3. Agencies made big savings earlier this year so budget phasing leads us to expect further sequential improvement in H2, especially in Q4. Meanwhile, important macro indicators such as consumer confidence is picking up.”

“From Jan 2015, TF1 will be able to cross-sell advertising on TF1, TMC and NT1. It will operate one single sales house (currently, TF1 is competing against TMC and NT1) and further leverage its core channel content library across its family of channels. Advertising does not look like it is coming back on state TV, and falling reinvestment requirements in French fiction should continue to positively impact scheduling expenses over the next 3-5 years.”

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