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Friday, February 19, 2016
10.2 Contractual content commitments
Commitments given recorded in the Statement of Financial Position: content liabilities
Content liabilities are mainly part of “Trade accounts payable and other” or part of “Other non-current liabilities” whether they are current or
non-current, as applicable.
Minimum future payments as of December 31, 2015
Due in
Total minimum future
payments as of
(in millions of euros) Total 2016 2017-2020 After 2020 December 31, 2014
Film and television rights (a) 196 196 - - 193
Sports rights 455 455 - - 400
Music royalties to artists and repertoire owners 1,848 1,822 26 - 1,721
Creative talent, employment agreements and others 90 43 43 4 119
Content liabilities 2,589 2,516 69 4 2,433
Off balance sheet commitments given/(received)
Minimum future payments as of December 31, 2015
Total minimum future
Due in
payments as of
(in millions of euros) Total 2016 2017-2020 After 2020 December 31, 2014
Film and television rights (a) 3,080 1,292 1,727 61 2,443
Sports rights 2,965 (b) 783 2,182 - 3,087
Creative talent, employment agreements and others (c) 790 354 413 23 807
Given commitments 6,835 2,429 4,322 84 6,337
Film and television rights (a) (174) (74) (74) (26) (199)
Sports rights (39) (10) (29) - (3)
Creative talent, employment agreements and others (c)
Received commitments (213) (84)
not available
(103) (26) (202)
Total net 6,622 2,345 4,219 58 6,135
a. Mainly included contracts valid over several years for the broadcast of cinema films and TV productions (mainly exclusivity contracts
with major US studios), for the pre-purchases relating to the French cinema industry, for Studiocanal films production and co-production
commitments (given and received), and for broadcasting rights of Canalsat and nc+ multichannel digital TV packages. They are recorded
as content assets when the broadcast is available for initial release or after the initial significant payment. As of December 31, 2015,
provisions recorded relating to these commitments amounted to €45 million (compared to €73 million as of December 31, 2014).
In addition, these amounts do not include commitments in relation to contracts of channel diffusion rights, ISP (Internet Service
Provider) royalties and non-exclusive distribution of channels, under which Canal+ Group did not grant or receive minimum guarantees.
The variable amount of these commitments cannot be reliably determined and is not reported in either the Statement of Financial
Position or in the commitments and is instead recorded as an expense for the period in which it was incurred. Based on the estimation
of the future subscriber base at Canal+ Group, the commitments would have increased by a net amount of €203 million as of
December 31, 2015, compared to €342 million as of December 31, 2014.
Moreover, on May 7, 2015, Société d’Edition de Canal Plus (SECP) renewed its agreement with all the cinema professional
organizations (ARP, BLIC, BLOC, UPF). This five-year agreement (2015/2019) confirmed the historical and strong partnership between
Canal+ and the French cinema. Pursuant to this agreement, SECP is required to invest every year 12.5% of its annual revenues in the
financing of European cinematographic works. With respect to audiovisual, in accordance with the agreements entered into with
producers’ and authors’ organizations in France, Canal+ Group is required to invest 3.6% of its total net annual revenue in the financing
of heritage works every year. Only films for which an agreement has been given in principle to producers are accounted for in the offbalance
sheet commitments, as it is not possible to reliably determine a future and total estimate of commitments under agreements
with cinema professional organizations and with producers’ and authors’ organizations.
b. Notably included broadcasting rights held by Canal+ Group for the following sport events:
the French professional Soccer League 1, for the four seasons 2016/2017 to 2019/2020, awarded on April 4, 2014 for the two
premium lots (€2,160 million);
the National French Rugby Championship’s “TOP 14” matches, for the seasons 2016/2017 to 2018/2019 which include all seven
games on each match day, play-off games, as well as the Jour de Rugby show, awarded on January 19, 2015; and
the Soccer Champions League, for the seasons 2016/2017 and 2017/2018, awarded on April 11, 2014 for one lot.
These commitments will be accounted for in the Statement of Financial Position either upon the start of every season or upon an initial
significant payment.
Financial Report and Audited Consolidated Financial Statements for the year ended December 31, 2015 Vivendi /68