Opinion no. 2013-14 of September 11, 2013 on the draft amendment to the Contract of Objectives and Means of the national program company France Télévisions for the period 2013-2015.

In accordance with article 43-11 of law no. 86-1067 of September 30, 1986, as amended, on freedom of communication, the national program company France Télévisions is responsible for providing the public with a diversified supply of programs in the fields of news, culture, knowledge, entertainment and sport.

The company carries out public service missions that contribute to the promotion of citizenship and the strengthening of social cohesion. It develops certain programming elements that distinguish it and complement the supply offered by private-sector audiovisual communication companies.

The specifications of France Télévisions, appended to decree no. 2009-796 of June 23, 2009, as amended, specify the content of the various public service missions. The regulatory text lays down quantitative and qualitative obligations with regard to the nature of programs and content requirements.

Naturally, there are links between the obligations set out in the specifications and the commitments made by France Télévisions under its Contract of Objectives and Means (COM). On several occasions, the Conseil has reiterated the need for better coordination between these texts. However, the very purpose of the COM is quite different.

Article 53 of the amended law of September 30, 1986 makes provision for the COM to enable the State and France Télévisions to outline development prospects based on commitments whose implementation can be measured by indicators, and for which the financing arrangements are specified.

Pursuant to this article, the objectives set out in the COM must relate to :
- priority development areas,
- commitments to support creation,
- commitments to program accessibility,
- the estimated cost of activities, supplemented by performance indicators,
- indications concerning the amount of public resources and own revenues,
- areas for improvement in financial and human resources management, with the aim of returning to financial equilibrium.

The present opinion, adopted by the Council at the close of its plenary session on September 11, 2013, falls within the scope of the missions entrusted to it by the legislator, particularly with regard to guaranteeing the independence and impartiality of the public sector, improving the quality and diversity of programs, developing national production and creation, and promoting representations of diversity in French society.

The draft legislation on the independence of public audiovisuel envisages strengthening this authority by enabling the Conseil to issue an opinion each year on France Télévisions' COM performance report.

On August 8, 2013, the Government sent the Board a draft rider that partially amends the COM signed on November 22, 2011 for the period 2011-2015.

The draft rider shows a downgraded business plan that should lead the public group to propose a reduction in certain cost items.

The initial COM had made provision for an increase in public resources up to 2015, corresponding to an average increase of 2% a year to reach 2,687 million euros. On the contrary, the draft amendment makes provision for an average reduction in public funding of 0.5% per year, as of 2013. For this year alone, the reduction can be estimated at 26 million euros compared with the allocations obtained in 2012.

According to the forecasts in the draft amendment, public resources will represent around 2,485 million euros by 2015, a reduction of more than 200 million euros compared with the initial COM.

Advertising revenues were estimated at 450 million euros in 2015. The deterioration in forecasts now leads us to adopt a more modest assumption for a total amount of around 354 million. The reduction would therefore amount to almost 100 million euros in 2015.

Similarly, operating income (rights management, advertising sales, etc.), estimated at 58 million euros in the COM budget for 2015, has been reduced to 20 million euros in the draft amendment. This represents a loss of nearly 40 million euros.

In view of these indications, the reduction in France Télévisions' forecast resources corresponds to around 340 million euros by 2015 (-10.5% compared with the initial COM). This reduction could be brought down to 320 million euros if, as France Télévisions expects, the advertising market improves significantly as of 2014.

These developments lead us to revise the overall balance of the COM for the period 2013-2015.

The budgetary and economic outlook in which France Télévisions is now situating its development imposes significant constraints that the Board is well aware of.

The opinion issued by the Board takes into account the information brought to its attention by the Chairman of France Télévisions during his hearing on September 11, 2013.

It will focus first on the progress made by the draft amendment compared with the initial COM (I). Areas where drops can be identified will then be critically examined (II). Finally, the points that remain to be clarified before final adoption of the rider can be examined (III). Where necessary, the Board has made recommendations, which are set out at the end of this document.

I - IMPROVEMENTS TO BE CLARIFIED AND CONFIRMED

In several areas, the draft amendment to the COM will improve the diversity and quality of the program supply.

In addition, the commitments entered into between the French State and France Télévisions present significant advances in improving the way the public broadcaster operates and is governed.

A - Programming

Article 43-11 of the law of September 30, 1986 stipulates that the national programming company France Télévisions pursues "public service missions in the general interest".

To this end, the company is committed to providing a diversified supply, including news programmes. France Télévisions is also summoned to develop new services likely to enrich and complete the program supply.

The draft rider deals specifically with these areas, emphasizing the coordination of the various news departments and the development of new services.

1 - Progress in the effective implementation of editorial coordination

The public broadcasting group's focus on news and information is unrivalled in terms of time volume and format variety. The effective implementation of measures to coordinate the human and technical means devoted to the news supply, with the aim of improving service quality and economic efficiency, was eagerly awaited.

The Board is pleased to note that the processes for going paperless in the information production chain will be deployed and operational by the end of 2013, in line with the " i-nat " project. This will enable data to be shared between national newsrooms and made available to the public via all media.

Efforts to coordinate technical means must now be pursued at editorial level. The draft COM is insufficiently precise with regard to the " Info 2015 " project, which is intended to " unite the strengths of the newsrooms around (...) a single newsroom ". It should be more specific about the stages involved between now and 2015, and the synergies and savings expected.

Recommendation no. 1: Specify how the "Info 2015" project is to be implemented, detailing the expected savings, the staff involved and the timetable for the reform.

2 - Developing new digital service supplies

Developing the digital service supply is a strategic priority for France Télévisions, which is seeking to make its programs available on the Internet, develop services for new media (mobiles, tablets) and prepare for the rise of connected TV. The aim is to " complete the public's television experience (...), broaden content exposure (...) and highlight France Télévisions' strong brands ".

Over the 2011-2013 period, the public group has launched four online service platforms. They offer content on :
- news(francetv info),
- sports(francetv sport),
- education(francetv éducation, successor to Curiosphère),
- culture(culturebox).

A fifth platform dedicated to children will complete this supply. It will offer an edutainment supply for the under-7s, and an entertainment supply for the 7-12s.

At a time when program consumption is growing on screens other than the television set alone, it is essential for France Télévisions to mark its presence by offering various online services. The continuum that is created between the television program and its online versions undoubtedly needs to be strengthened, as does interaction with the public.

The development of new services appears to be an appropriate response by the public group to developments in usage. This is the case, for example, with francetv info, which offers a news feed as of constantly updated content. The creation of online services also contributes to improving the exposure of content by promoting France Télévisions' know-how and brand.

However, the Council reiterates that the programming obligations incumbent on France Télévisions must not be progressively streamed onto online services.

The Council would also like to see clarification of the development costs of the various platforms. It also notes that, to facilitate public browsing between France Télévisions' many online services, the company must ensure the fluidity of its supply by enabling movement from one service to another.

Recommendation no. 2: Indicate the cost of developing online services. Facilitate public browsing and simplify access to France Télévisions' non-linear supplies.

With regard to catch-up TV, the draft amendment states that the francetvpluzz portal has been redesigned to make all the programs of the Group's channels (excluding cinema and sports) accessible from the same site. This objective, mentioned in the initial COM, has been achieved. The draft amendment (1) should be updated accordingly.

To measure the number of monthly single visiters to France Télévisions' websites, the indicator introduced in the initial COM has been retained. It shows that actual traffic was higher in 2012 than forecast (nearly one million additional single visiters).

The draft amendment therefore makes provision for a more ambitious target for 2013 than that set in 2011 (9.2 million visitors instead of 8.7 million in the initial COM). It should be noted that this is the only upwardly revised quantitative target in this draft COM for 2013. It would be desirable for this effort to continue over the following two years.

Finally, in the field of connected television, the draft amendment refers to France Télévisions' " first successful experiments ", making few changes to the initial wording.

Recommendation no. 3: Set new, more ambitious targets for digital supply, taking into account the results already achieved.

3 - Strengthening women's on-air expertise

Under the terms of its mission statement, France Télévisions is summoned to " promote the great values that form the bedrock of our society ". The principle of equality, and the fight against stereotypes and forms of discrimination, should lead the public group to improve the meaning given to the presence of women on air.

The Council is pleased to note that the draft rider sets a target of 30% female experts on programs, particularly debate and news programmes, by 2014 (2).

France Télévisions' proactive approach is in line with the initiatives put in place by the Conseil to improve the image of women in the media and better qualify their on-air presence (3). The Conseil will be keeping a close eye on the implementation of these schemes, within the framework of the powers that should be given to it by law.

Improving the representation of women also involves showcasing women's sport and gender diversity. Female consultants and experts are summoned to present their analyses during sports broadcasts and magazine diffusions. An indicator measuring public perception of the image of women in France Télévisions programs has also been introduced.

Finally, the Conseil emphasizes that all the programme types offered must contribute to improving the position of women on the public broadcasting network.

B - The company

The Conseil does not intend to interfere in the operation and management of France Télévisions. However, the legislator has entrusted it with the task of guaranteeing the independence and impartiality of the public audiovisual industry, and the Government has sent it the draft amendment to the COM, which sets out a number of commitments relating to the internal organization of the public group.

As with other public companies and organizations, France Télévisions' mode of governance has gradually developed. The principle of equality, the quest for creativity and the need to take account of new demands from society have led us to set new objectives with regard to the place of women and the representation of diversity in French society.

1 - Significant progress on parity

The agreement on professional equality between men and women signed in July 2007 by representatives of France Télévisions set a number of objectives to correct the imbalances observed. The draft amendment now specifies that the Group's commitments will focus on strengthening the mix of professions, increasing the number of women in management positions and ensuring equal pay for equal work.

The Board notes that precise objectives have been put forward. It is stated that, from 2013, France Télévisions will present at least one female candidate for each position of responsibility, in order to guarantee parity in the filling of positions. The company will also ensure that the proportion of women in charge of managing journalists represents one third of the hierarchy by 2015.

The Board welcomes all these commitments and will be particularly interested in their implementation.

2 - Better representation of diversity of French society

The draft amendment to the COM sets the objective of taking greater account of diversity within the public sector group itself. Translating this objective into quantifiable indicators would guarantee effective increases.

The position of disabled employees is being re-examined, on the one hand, through the proceedings that have been put in place with the aim of obtaining the Label Diversité by the end of 2013, and, on the other, through the commitments entered into as part of a new agreement signed in January 2011 with the Association de gestion du fonds pour l'insertion professionnelle des personnes handicapées (AGEFIPH).

A new indicator makes provision for France Télévisions to achieve an indirect employment rate (4) of disabled people of 0.5%. This clarification has led the Board to demand that France Télévisions make an additional effort to increase its direct employment rate, which currently stands at 4% (5).

Diversity also takes into account the situation of employees aged over 55. The employment of seniors must reach 20% of the workforce. An age pyramid of France Télévisions staff would enable us to better assess this commitment.

Notice no. 4: Set a target for the direct employment of disabled staff. Communicate the proportion of staff over 55 years of age in order to measure the relevance of the commitment to reach 20% of the workforce.

The public group is also summoned to contribute, within its means, to the professional integration of youngsters. As an audiovisual communications company, we welcome youngsters as part of our media education program, so that trainees can learn the techniques involved in gathering and analyzing information.

The inclusion of a new commitment to take on twenty youngsters each year from disadvantaged urban areas or with scholarships may help us to take better account of social and cultural diversity, while at the same time offering career prospects.

However, given the size of France Télévisions' workforce and its 38 branches, particularly in the regions, this objective seems ill-defined and unambitious.

Recommendation no. 5: Strengthen France Télévisions' partnerships with schools and universities, including in the regions, by increasing the number of interns who can be hosted by the company.

II - SHORTFALLS DUE TO DOWNWARD ADJUSTMENTS

France Télévisions is obliged to reduce its expenses as a result of the reduction in forecast available resources.

As a result, several of France Télévisions' commitments have been revised downwards. However, these drops are not always linked to a reduction in resources. In addition, the tight budgetary manager may be an opportunity for the public group to achieve the efficiency gains it expects.

The drops in relation to previous commitments concern both the programming elements and certain developments in the company's characteristics.

A - Programming

Cost-cutting will primarily affect the programming schedule, which accounts for over 80% of operating expenses.

The cost of the schedule represents the costs incurred by the publisher in preparing its programming according to the editorial choices it wishes to present. The draft agreement specifies that France Télévisions' programming costs are to be reduced by 1% per year. The most significant reductions relate to the cost of national programming (-1.4%) and to a reduction in acquisition and production costs, particularly for the broadcasting of sporting events (-5.4%).

The initial COM made provision for a grid cost of 2,306 million in 2015. This has now been reduced by 256.6 million euros (-11%) to 2,049.4 million. It is made provision for grid costs to remain at or above 81% of France Télévisions' total expenditure, excluding broadcasting costs. It was 82.2% in 2012.

In keeping with its mission to ensure the quality and innovation of public service broadcasting, the Board would like to see the criteria for eliminating certain programs better defined.

Compared with the initial COM, the serious difficulties concern investment in production, the volume of regional programs and high-definition diffusion.

1 - Reduced investment in production

Investments in European or EOF cinematic and audiovisual production have fallen significantly.

• Audiovisual production

Minimum annual investment in cinematic works is set to fall to 400 million for the period 2013-2015, instead of the 420 million provided for from 2012 in the initial COM (6). This could result in a cumulative loss of 60 million euros for the sector by 2015.

The lower threshold does not, however, call into question the obligation set out in the specifications to earmark 20% of the previous year's net sales for the development of production of audiovisual works (7).

• Cinematic production

Investment in the financing of French and European film production has also been reduced in the draft amendment, as of 2013. The minimum level is now set at 57 million euros, instead of the 60 million euros stipulated in the initial COM. The loss for the sector is likely to represent a cumulative 9 million euros by 2015.

However, the reduction of this amount does not affect the obligation to devote at least 3.5% of net sales from the previous year to the development of cinematic production (8).

The Conseil takes note of these reductions imposed by the drop in resources, but reiterates its commitment to maintaining the contribution rates set out in France Télévisions' specifications.

However, it considers it necessary to introduce some flexibility to enable the public group to optimize its commitments to audiovisual creation. Thus, as part of the necessary inter-professional negotiations involving all stakeholders, the possibility of holding co-producer shares and a development in the rights regime could be examined.

2 - A decline in the volume of regional programs in contradiction with the stated objective of proximity

The indicator for the share of regional supply in France 3's programming schedule (local news, documentaries and magazines devoted to discovering the region) has been significantly revised downwards, even though France 3 defines itself as the channel for the regions and proximity.

• Reduced diffusion of regional programs

The draft amendment makes provision for a total of 17,000 hours of regional programming to be shown on France 3's 23 local stations (9), instead of the 20,000 hours initially set out in the COM for 2015.

This reduction should make it possible to contain the development in the cost of regional programs as a proportion of France Télévisions' total programming costs. It should reach 18.5% by 2015. The savings generated by the reduction in the volume of regional programs have not, however, been quantified. The Conseil intends to point out that rationalization efforts must also focus on the organization of the means made available to France 3's regional offices.

Similarly, for the nine stations in Outremer 1ère, the share of programs not originating from other France Télévisions channels has been reduced to 75% of total program volume, instead of the 80% set out in the COM as objectives for 2015.

As a result, the share of France Télévisions programs could not exceed 20% in the initial COM. This share could now reach up to 25% of the total volume of programs on the Outremer 1ère network stations.

The Conseil notes the contradiction between the declared intention to reduce the proportion of national programs from France Télévisions on Outremer 1ère stations, while at the same time deciding to potentially increase the proportion by lowering the threshold for specific programs to 75%.

• A drop in local program production in overseas France

While 25% of diffusion volume was to correspond, by 2015, to locally produced programs, the target set out in the draft amendment reduces this proportion to 20%. The downward revision of this target can be explained by the need to contain the increase in the cost of the programming schedule for Outremer 1ère in France Télévisions' total schedule costs. This should reach 9.5% by 2015.

However, the French Superior Audiovisual Council wishes to emphasize the importance of the role summonsed to the channels of the Outremer 1ère network with regard to the promotion of regional identity, the expression of languages and territories, and the development of local production.

3 - The questioning of high-definition objectives

The initial objective of showing all France 2 channels in high definition by 2015 has been maintained. However, this commitment looks unlikely to be met, given the delay in renewing the channel's equipment.

In fact, only 60% of France 2's programs are shown in high definition. Insofar as the Conseil, as allottee of the terrestrial frequencies (10), has provided the channel with the necessary terrestrial resources, it hopes that France 2 will speed up the diffusion of all its programs in true high definition.

The Council notes that the objective of diffusing France 5 in high definition has been abolished. In this context, the draft amendment does not envisage any HD-standard diffusion for other channels in the group.

The Conseil recalls that the public channels have a vocation to develop towards high definition in view of the program supply (cinema, sport, documentaries) and the general objective of quality and innovation of public television (11).

Recommendation no. 6: Establish a timetable for the deployment of the equipment needed to show all France 2 and other public channels' programs in true HD.

B - The company

France Télévisions has not succeeded in generating sufficient value from the programs it offers as of the online public communication services it publishes.

The company's development has also been hampered by delays in the convergence of its information schemes.

1 - Lack of ambition in diversifying and developing digital revenues

To enhance the commercial value of its programs, the public broadcasting group relies on its subsidiary France Télévisions Publicité to develop advertising revenues based on digital supplies.

Revenue development must be a priority, not least to help the company return to breakeven.

The initial COM made provision for the corresponding resources to be tripled, from 7 million to 25 million euros per year by 2015. Today, the draft amendment shows a reduced ambition, maintaining the unquantified objective of growth in advertising resources generated by digital media.

Another subsidiary, France Télévisions Distribution, is responsible for developing video-on-demand supplies (pay-per-view or by contract), promoting the Group's brands and increasing revenues from services put online by France Télévisions. The company's results fell well short of forecasts. Indeed, the target of 3.7 million euros in 2015 has been reduced to 1 million euros in the draft amendment to the COM.

These drops can be explained by the difficult economic context, which has notably led to a drop in demand from advertisers.

Among the other objectives summonsed to France Télévisions Distribution is the promotion on the international market of rights linked to the Group's audiovisuel programs, and in particular its supply for younger viewers. In addition, France Télévisions needs to strengthen and develop existing framework agreements to facilitate co-productions and joint purchasing of programs.

In this area, the Board regrets the disappearance from the draft amendment of indicators relating, on the one hand, to the annual number of programs benefiting from international financing and, on the other, to the annual number of framework agreements concluded with foreign broadcasters.

The Council hopes that France Télévisions will present new ambitions for the diversification and development of its revenues.

Recommendation no. 7: Add quantified targets to the draft amendment, in order to specify the amount of revenue derived from the diversification of commercial supplies. Reinstate indicators for international program financing and framework agreements.

2 - Delays in harmonizing management information schemes

In 2009, France Télévisions launched a plan to ensure the convergence of its various information systems.

This is a strategic priority for the company's development. The challenges lie in France Télévisions' ability to successfully implement common management tools to provide reliable analytical and accounting information. This data is essential for steering the joint enterprise, and in particular for achieving efficiency gains and improving productivity.

The work undertaken over the past 4 years has been a major undertaking, since it has been necessary to take into account the divergent practices and solutions that existed in the chains and subsidiaries. Nevertheless, the Board regrets that, under the provisions of the draft amendment to the COM, the convergence of information systems has been delayed by a further year or so.

Recommendation no. 8: Mobilize means within a precise timeframe to accelerate the essential convergence of the company's management information schemes.

III - UNCERTAINTIES

The draft amendment to the COM appears to call into question several of France Télévisions' commitments. The new wording leads the Board to question the development of France Télévisions' programming.

In addition, the prospects outlined by the public group with regard to productivity gains and their effects on payroll and headcount summon further clarification.

A - Programming

The changes made to the description of the channels' editorial lines introduce elements of confusion in determining their exact vocation and, in some cases, the proper articulation with comparable provisions in France Télévisions' specifications.

Uncertainty also surrounds the public broadcasting group's cultural ambitions, particularly as regards the place given to music on the airwaves. Program accessibility still needs to be improved before it can be extended to catch-up offers. Finally, questions remain about the coverage of certain sporting events.

1 - Editorial lines to be clarified

Right from the introduction to the draft text, it is stated that " public television must develop, over the period of the present agreement, channels with more clearly identified and complementary personalities ". This premise does not call into question the current programming characteristics of France 2, France 3, France 5 and the Outremer 1 network channels.

The Council regrets the vague formulations and declarations of intent that are nonetheless presented as " strategic priorities ". France 2, for example, must " be resolutely of its time; strengthen its editorial standards; be bold "... France 3, for its part, undertakes to " give priority to a positive, caring approach; develop the values of proximity and sharing within its programs "... With regard to the writing of drama, it also mentions the importance of " resolutely exploring a more varied relationship with reality ".

The programming of France Ô, whose status as a fully-fledged national channel is to be " affirmed ", is expected to give greater prominence to overseas departments, regions and territories through news, drama and cinema, documentaries, cultural programs, sports and entertainment. The program's aim is to raise awareness of the French overseas departments and territories, by building links with France and opening up to the world.

The Council regrets, however, that the draft amendment is silent on the methods and, where appropriate, the implementation of indicators to measure the channel's audience.

France 4's editorial line is announced as summoning major changes.

The draft text states that France 4 will henceforth be aimed at new generations, " from children, young and old, to youngsters and adults ". The channel is to be " a public service alternative to DTT supplies " and a " laboratory within the France Télévisions channel package ". The essential novelty comes from the listing of " information " as a new direction for the channel.

Nevertheless, France 4's editorial line remains rather vague, and needs to be clarified.

The situation at France 3 remains so uncertain that the Minister of Culture and Communication has announced that a working group will be set up in the autumn to define a new organization for the channel.

In the light of these developments, we will need to examine the consistency of the objectives set out in the draft rider with the editorial lines set out in the specifications (12).

Recommendation no. 9: Clarify France 4's editorial line. Indicate the objectives of the future reform of France 3. Establish audience measurement procedures for France Ô.

2 - Insufficient cultural objectives and imprecise musical objectives

The draft amendment maintains the requirement for at least one cultural program to be broadcast every evening in the first half of the evening on one of the public channels. This is one of France Télévisions' emblematic indicators, and also corresponds to the obligation laid down in its specifications (13).

However, this target could be more ambitious, given that France Télévisions already far exceeds the target of 365 cultural programs per year, and that the launch of France Ô in 2011 gives the public broadcaster an additional channel.

In its opinion on the draft COM for the period 2011-2015, the Conseil proposed setting this target at over 450 programs a year (14), to take account of the public group's expanded scope with the national diffusion of France Ô.

Among the programme types included in the scope of cultural programs, musical programs are traditionally given special mention. The aim is to increase their hourly volume and better showcase new talent.

At this stage, the Conseil would point out that listing "programs containing music" appears less demanding than the expression "programs of a musical nature", which is the one used in France Télévisions' specifications (15). For the sake of consistency with regulatory provisions, the Conseil would like the expression used in the specifications to be the same as that used in the draft amendment.

That said, France Télévisions' commitment in this area has not changed significantly. The Council notes, however, that the original COM objective of showing a 52-minute musical program during prime time has disappeared.

Recommendation no. 10: Update the number of cultural programs available per day in the first half of the evening, to 450 per year. Reinstate the commitment to show a 52-minute musical program during prime time. Replace the words "programs containing music" with "programs of a musical nature".

3 - France Ô's shortcomings in terms of program accessibility

It is stated that France Télévisions subtitles all its national programs (subject to the characteristics of certain programs, notably live broadcasts). However, this statement is inaccurate in the case of France Ô, where the proportion of subtitled programs represents less than 50% of the total. It is clear, however, that the channel cannot afford to ignore subtitling for long.

As far as audio description is concerned, the prospects outlined in the initial COM have been realized. France 2, France 3, France 4 and France 5 now offer audio description programs. The indicator's objective of ensuring the diffusion of two such programs every day on France Télévisions (16) by 2015 has been maintained.

The draft amendment adds that France Télévisions is seeking to make a supply of described audio programs available to the visually impaired or blind on its pluzz.fr catch-up TV service.

Recommendation 11: Subtitle all France Ô programs in accordance with article 53 of the amended law of September 30, 1986 on freedom of communication. The ambition to offer blind or partially-sighted people a supply of catch-up programs could be achieved in stages, by establishing a timetable and committing to a proportion of programs.

4 - Concerns about sport

The draft amendment maintains the objective of offering a very wide range of sporting disciplines. France Télévisions is committed to maintaining this coverage. The minimum thresholds for broadcasts and treatment of disciplines remain unchanged from the initial COM (17).

Nevertheless, sport is directly affected by the budgetary efforts requested of France Télévisions, since the draft amendment envisages a reduction in related expenditure of 21 million euros between 2013 and 2015. The Board will remain vigilant to ensure that the public broadcaster can continue to offer free-to-air access to sporting events in a context marked by the arrival of new publishers and the acquisition of certain sports event diffusion rights by pay-TV channels.

The promotion of women's sport remains an objective for the public group. It should be noted that the draft amendment adds the need to highlight "disabled sports", which was not previously mentioned.

Recommendation no. 12: Set up indicators to measure coverage of women's sports and disabled sports (information processing and broadcasting of sporting events).

B - The company

The creation of the joint venture has been delayed on several occasions, not least because of the difficulties encountered by France Télévisions in trying to bring together within a single manager the very disparate labor agreements that prevailed between channels and departments.

The conclusion of the France Télévisions collective agreement in May 2013 should now make it possible to speed up the process of modernising the company and to really start pooling human and material means.

The means freed up by redeployments should be reinvested in the various channels' program supplies. However, France Télévisions' business plan makes provision for an average annual 1% reduction in programming costs by 2015, without a comparable reduction in personnel costs.

Uncertainty still surrounds developments in the workforce. The overall number of full-time equivalent employees is likely to vary between now and 2015, depending on the reference documents and the accounting method used.

1 - Personnel costs insufficiently contained

Apart from the cost of the voluntary redundancy plan, which is estimated in the 2013 budget at over 89 million euros, personnel expenses represent a major cost item. We would welcome further details on the costs to be expected in future years.

According to a new indicator, France Télévisions' personnel costs will account for around 36% of operating expenses (excluding broadcasting costs) between 2013 and 2015. However, this proportion appears comparable to the 35.8% recorded in 2012.

Under these conditions, the effort to reduce personnel costs seems insufficient. It corresponds to an average reduction of 0.6% per year. The Board notes that this is less than that applied to grid costs (1% p.a.).

Recommendation no. 13: Set a more precise target for reducing personnel costs. Specify the share of personnel costs in France Télévisions' business plan, and provide a breakdown by channel.

2 - The need to clarify the Group's workforce

The implementation of the joint venture summons an overall reflection on the pooling of means and services. To this end, the initial COM made provision for the natural departure of several employees. The initial target was 900 departures by the end of 2012. In reality, this figure did not exceed 500.

By 2015, the draft amendment announces that the workforce will be reduced by 650 full-time equivalents (FTEs). The inclusion of the volume of non-permanent jobs in the final FTE count, however, introduces elements of uncertainty into France Télévisions' actual overall headcount.

The Board regrets that the figures for the company's workforce differ from one document to another.

Referring only to the figures presented in the draft amendment, it would appear that, depending on the method used to count the number of employees, France Télévisions' overall headcount would be either 9,750 FTEs, or 10,113 FTEs by 2015.

The figure of 10,113 would be explained by the need to revise upwards the volume of non-permanent jobs, which would automatically lead to an increase in the number of FTEs. The unification of counting methods means that France Télévisions has to reintegrate a significant volume of non-permanent jobs, representing at least 400 FTEs (18).

The Board, which has been presented with a wide range of data which it has not been possible to reconcile, strongly hopes that all the data will be substantiated and presented in a totally consistent way in the final amendment to the COM.

The reduction in FTEs must be the result of synergies achieved by the company. Productivity gains could be identified and indicated chain by chain.

Furthermore, in a difficult social context, it would be desirable to increase the transparency of remuneration, including for the highest levels.

In addition, downsizing must be reflected in a reduction in the use of non-permanent staff. However, France Télévisions' announced effort to reduce the rate of non-permanent employment from 18% to 15% remains unchanged from the initial COM.

Recommendation no. 14: Clarify FTE figures, specify the job categories to which they relate, and break down targets channel by channel. Improve transparency with regard to remuneration.

List of 14 notices

Programs

• Specify how the "Info 2015" project is to be implemented, with details of expected savings, the staff involved and the timetable for reform (Recommendation no. 1);
• Indicate the cost of developing online services. Facilitate public browsing and simplify access to France Télévisions' non-linear supplies (Notice no. 2);
• Set new, more ambitious targets for digital supply, taking into account the results already achieved (Notice no. 3);
• Establish a timetable for the deployment of the equipment needed to show all France 2 and other public channels' programs in true high definition (Notice no. 6);
• Clarify France 4's editorial line. Indicate the objectives of the future reform of France 3. Establish audience measurement procedures for France Ô (Notice no. 9);
• Update the number of cultural programs available per day in the first part of the evening, to 450 per year. Reinstate the commitment to show a 52-minute musical program during prime time. Replace the words "programs containing music" by "programs of a musical nature" (Notice no. 10);
• Subtitle all France Ô programs by 2015. The ambition to offer blind or partially-sighted people a catch-up supply of programs could be achieved in stages, by setting a timetable and committing to a proportion of programs (Notice no. 11);
• Introduce indicators to measure coverage of women's and disabled sports (news and sports coverage) (Notice no. 12).

The company

• Set a target for the direct employment of disabled staff. Communicate the proportion of staff over 55 years of age in order to measure the relevance of the commitment to reach 20% of the workforce (Notice no. 4);
• Strengthen France Télévisions' partnerships with schools and universities, including in the regions, by increasing the number of interns who can be hosted by the company (Notice no. 5);
• Add quantified targets to the draft amendment, in order to specify the amount of revenue to be generated by the diversification of commercial supplies. Reinstate indicators relating to international program financing and the conclusion of managerial agreements (Notice no. 7);
• Mobilize means within a precise timeframe to accelerate the essential convergence of corporate management information systems (Notice no. 8);
• Set a more precise target for reducing personnel costs. Specify the share of personnel costs in France Télévisions' business plan, and provide a breakdown by channel (Notice no. 13);
• Clarify FTE figures, specify the job categories to which they relate and break down targets by channel, and improve transparency with regard to remuneration (Notice no. 14).

This notice will be published in the Journal officiel de la République française.

Paris, September 11, 2013

For the French Superior Audiovisual Council :
Le président,
O. SCHRAMECK

(1) It also meets the requirements of article 48 of the law of September 30, 1986 and article 22 of France Télévisions' specifications.
(2) This proportion was around 18% in 2011.
(3) The "Women's Rights" working group is currently carrying out surveys and establishing a methodology to quantify and qualify the presence of women on air.
(4) This rate measures the use of subcontractors summoning disabled staff.
(5) According to AGEFIPH, the employment rate for people with disabilities was 3.67% in the France Télévisions group in 2011.
(6) The investment actually made in 2012 represented 420.4 million euros.
(7) Article 9 IV of France Télévisions' specifications.
(8) Article 9 II of France Télévisions' specifications.
(9) The regional channel Via Stella, which has been shown in Corsica by terrestrial hertzian transmission since January 2011, is not included.
(10) Article 21 of the law of September 30, 1986.
(11) Article 43-11 of the law of September 30, 1986.
(12) Article 3 of the specifications of France Télévisions.
(13) Article 4 of the specifications stipulates that " France Télévisions shall show nationally at least one cultural program each day in the first part of the evening (...)".
(14) Avis n° 2011-16 du 4 octobre 2011 relatif à un projet de contrat d'objectifs et de moyens de la société nationale de programme France Télévisions pour la période 2011-2015.
(15) Article 5 of France Télévisions' specifications.
(16) In other words, an annual target of 730 audio programs.
(17) For the years 2011 and 2012, these thresholds were all exceeded.
(18) Cf. text of draft amendment, p. 60.