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TF1: A warning for linear TV

France’s Number 1 commercial broadcaster TF1 is having a torrid time. Six or more months ago it might have blamed the ‘economic downturn’ then badly affecting the nation. But the current position, according to analysts at Deutsche Bank, is that French consumer spending is recovering.

But this is not the case at TF1. Analyst Laurie Davison says TF1 has missed in its Q2 despite carrying 6 out of the 10 ‘most viewed’ Euro2016 football matches. “This is concerning as further evidence of the beginnings of ‘ad leakage’ of linear TV in Europe ad spend to underreported areas of online video, social and in-app. It also points to the need for reinvestment from the new CEO,” says Davison.

The bank says that the short-term advertising outlook at TF1 for July and August is “negative” and that TF1’s management expected to lose audience share in Q2. “This was partly offset by stronger Other Platform & Related revs (TF1’s pay channels TV Breizh, UshuataTV, histoire, SerieClub and its online activities via eTF1) which were up E11m yoy. Studios and Entertainment: Newen, Tele Shopping, rights sales and merchandising, also missed heavily.”

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