Business summary of Newen

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Business Summary of TF1 and Newen

Bouygues Group is the parent company of TF1 Group, and TF1 Group owns Newen. Gilles Pélisson is the Chairman & CEO of TF1 Group.

Company Overview

  • TF1 Group, which is a part of the Bouygues Group (parent company), is a leading company in the entertainment and broadcasting industry. TF1 is a renowned name across the french television industry for more than 30 years; it has been a key player in the content industry, and it has established its presence across the entire value chain.
  • The group has managed to expand its global footprint and is currently operating in 15 countries. "TF1 Group has been an important part of the French and the European audiovisual creation ecosystem."

Business Lines

  • TF1 Group is focused on three primary business segments, which include production, broadcasting, and digital. For the year 2019, the broadcasting segment's total revenue amounted to €1.7 billion ($1.9 billion), and the digital segment had annual revenue of €173 million ($190 million). The studios & entertainment (production) line earned revenue of €390 million ($429 million) in 2019.
  • The production segment mainly deals with the production of news and entertainment content. TF1 Studio and the subsidiary Newen are the main leaders in the production division, and both of these have enormous production and distribution capabilities.
  • The broadcasting segment comprises a "powerful ecosystem around the market-leading channel TF1, consisting of 5 free-to-air channels, four theme channels, and a content platform with more than 23m users with MYTF1."
  • The digital division of the group is responsible for handling the native web activities of the TF1 Group. The division consists of "fifteen media brands and services, and it assists its clients with all the digital marketing challenges and issues via a single point of entry, which is Unify Advertising."

Production

  • For the production of audiovisual content, TF1 mainly relies on Newen, a "French market-leader in audiovisual production and distribution." Additionally, TF1 Group also has other entities contributing towards its production division; for instance, Telfrance, which is a leading drama production company in France, CAPA, which is a leading reportage and documentary agency. Other companies like 17 JUIN MÉDIA, Blue Spirit have also been a part of TF1 Group's production division.
  • TF1 Studio and TF1 Film Production are two other eminent entities in the product portfolio of TF1 Group. The various entities that make up TF1 Entertainment include TF1 Licenses, TF1 Games, TF1 Factory, and these are involved in the "licensing, board games, events, endorsement, and production sectors."
  • TF1 Group has also earned a popular place in the music production industry, some of the important entities working in TF1 Group's music production division include Play Two, TF1 Musique, TF1 Spectacle, La Seine Musicale, and Une Musique. Play Two handles music production, live shows, and concerts. "TF1 Musique is responsible for partnering record companies and artist producers," and TF1 Spectacle is a leading producer of live shows and events. Une Musique is a leading music publishing company, which is responsible for publishing original music for TF1 Group's channels and Promotional events.

Broadcasting

  • The broadcasting section of TF1 Group has five core TV channels, which include TF1, TMC, TFX, TF1 Séries Films, and LCI. TF1 Group also has other entities working for its broadcasting segments, such as Ushuaïa TV, TV Breizh, Histoire TV, and Série Club.

Digital

  • In total, there are more than 15 media brands under Unify's web digital segment which includes Aufeminin, Beauté Test, CNET, Doctissimo, Gamekult, Les Numériques, Livingly Media, Marmiton, My Little Paris, Netmums, Onmeda, Parole de mamans, and ZDNet.

Revenue

  • TF1 Group reported its quarterly revenue for the first quarter of 2020, and it amounted to €493 million ($542 million), of which approximately €356 million ($392 million) was from the group's advertising activities.

Mission Statement

  • The mission statement of the TF1 Group is to inspire society positively. The group aims to enrich people's lives by enabling them to experience positive emotions through the content it creates and produces. The group also aims to support small and large businesses and to showcase the French and European creativity and art through its content.

C-Suite Executives

  • Gilles Pelisson, as the CEO and chairperson of the group, is responsible for all important decisions about the group and its operations.
  • Olivier Abecassis is the CEO of Unify; it is a subsidiary to TF1 Group. Olivier had created Unify in 2019 and had also launched TF1 Group's first start-up incubator.
  • Christine Bellin is the CEO of TF1 Distribution and E-TF1. She is responsible for "promoting the development of partnerships with operators on critical issues for the future of the group, including new services and viewing habits, data, and segmented TV."

Challenges

  • Covid-19 crisis has presented TF1 Group with several critical challenges, such as declining profits and restraints on filming in front of live audiences, postponements, and cancellations of advertising campaigns.
  • A substantial sum of TF1 Group's revenues is earned from advertising activities, and due to the Covid-19 crisis, all global advertising and marketing campaigns have been postponed or canceled. This crisis has posed a significant challenge for TF1 Group. Additionally, the group is also facing cost issues due to declining profits in the Covid-19 crisis.

Mergers & Acquisition

  • In April 2019, TFI acquired Aufeminin Group from Axel Springer; 78.07% of the company was acquired by TF1 Group at €39.47 ($43.45) per share.
  • In 2018, TF1 Group also acquired a majority stake in Gamned, and TF1's development strategy was focused on expanding the customer base for the group.
  • "TF1 and M6 Groups have announced the acquisition of the next UEFA EURO 2020."
  • "TF1 group has acquired from beIN Sports the broadcasting rights to matches in the European Men's and Women's Handball Championships in the period from 2020 to 2024."
  • "In 2019, TF1 Group announced that it is increasing its stake in Play Two, taking a majority interest of 51%."

Newen

  • FLCP was the parent company of Newen Group when TF1 Group acquired Newen in 2016.
  • "Newen is also a leading player in the audiovisual distribution in France and abroad, with more than 1,000 hours of content produced each year and a catalog of more than 5,000 hours available for the international market."
  • "Newen offers daily, prime-time drama or major series, feature-length animation or prestigious documentaries, non-scripted entertainment, and news magazines."
  • Newen is mainly concerned with the distribution and production of audiovisual content. It tackles all-important production and distribution of content for TF1 Group.
  • Newen has acquired Tuvalu, Pupkin in the Netherlands; from Denmark, Newen acquired Nimbus; Newen also acquired De Mensen in Belgium. These brands are leaders in content production and distribution.
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