Opinion no. 2015-22 of November 25, 2015 on the draft Contract of Objectives and Means of the national program company Radio France for the period 2015-2019.

In accordance with article 53 of French law no. 86-1067 of September 30, 1986 on freedom of communication, the French Superior Audiovisual Council (hereinafter referred to as "the Council") is summoned to issue an opinion on the draft contract of objectives and means (hereinafter referred to as "COM") to be signed between the French State and the national program company Radio France for the period 2015-2019.

This is the company's third COM.

Article 53 stipulates that the COM must enable the State and Radio France to define development prospects based on commitments whose implementation can be measured by indicators, and for which the financing arrangements are specified for the entire duration of the COM. Pursuant to this article, the COM must determine :

• priority areas for development ;
• commitments to diversity and innovation in creation;
• commitments in terms of program accessibility (law no. 2005-102 of February 11, 2005);
• the projected cost of activities, supplemented by performance indicators;
• the amount of public resources to be allocated to the company, with priority given to the development of program budgets;
• the amount of expected own-source revenue, distinguishing between advertising and sponsorship;
• the economic outlook for fee-based services;
• information on 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;
• where appropriate, the outlook for a return to financial equilibrium.

The Board notes with satisfaction that the implementation of the major strategic directions summonsed to the company and translated into this COM has been the subject of close consultation with Radio France employees. Within the framework of the Central Works Committee, staff representative bodies were consulted on numerous occasions, resulting in a collectively endorsed document.

The present COM, which covers the period 2015-2019, has three main objectives:

• to consolidate Radio France's position as a benchmark medium in the radio landscape;
• to consolidate Radio France's role as a major player in music and culture;
• to modernised the company and create the conditions for a return to financial equilibrium.

The Board notes that, following the Schwartz Mission's notices on the future of France Télévisions, the number of objectives and indicators has been reduced. While taking into account the desire expressed in this COM to prioritize and rationalize the objectives summonsed to the company, and to make provision for financial pathways, the Board nevertheless considers it essential that indicators relating to the priority areas of public service missions be maintained.

Indeed, Radio France's mission statement, dated November 13, 1987, has changed very little since its promulgation. As a result, Radio France's Contract of Objectives and Means takes on a very special dimension in view of the challenges facing the public broadcaster, particularly in terms of social issues. As a public radio station, Radio France has a duty to guarantee free, relevant and rigorous information. It must set the undisputed standard in this field. This ambition is summoned to amplification by the synergies that public audiovisuel companies can implement around ambitious projects. In addition, Radio France must make it easier for all citizens, especially youngsters, to decipher and understand the contemporary world.

With regard to social cohesion and the values of living together, the Board regrets the low priority given to these issues in the draft COM. Yet it is essential to launch and encourage all initiatives aimed at promoting the values of French society and strengthening its unity.

To this end, we need to strengthen the implementation of concrete measures aimed at a fair representation of the diversity of French society. Radio France must play a leading role in this respect. Public radio has a duty to set an example in the fight agains stereotypes, and to respond to changes in society.

Radio France, the first public service broadcaster to be awarded the Diversity Label by AFNOR, must continue its efforts to mobilize all its employees, which will also help to foster social dialogue within the company.The draft COM must also reflect the public company's ambitions in terms of gender equality. On this precise point, Radio France has opted for a proactive approach that must necessarily be reflected in the company's COM, both in terms of the presence of women on the airwaves and the measures implemented by the company's human resources.

While 2014 ended with a deficit of 2 million euros and the 2015 budget makes provision for a deficit of 20 million, this draft COM presents, in a constrained budgetary context, a business plan enabling a return to breakeven in 2018. In view of the challenges weighing on Radio France's development prospects, it is important that structural reforms be accompanied by a certain number of indicators facilitating the monitoring and steering of the company's strategy. In addition, indicators have yet to be defined for actions undertaken on production methods or the deployment of antennas, notably the France Bleu network.

The draft COM was submitted to the Board on October 26, 2015. Given the date on which the draft was sent to the Council and Parliament, the COM will not come into effect until 2016. Noting this delay, the Board hopes that the 2015 forecasts set out in this draft will actually be achieved.

The opinion issued by the Board takes into account the recommendations of the National audit office's report published in April 2015, as well as its previous assessments of the implementation reports for the COM and Radio France's terms of reference.This opinion focuses first on the evaluation of editorial and strategic indicators (I), then on indicators relating to social cohesion challenges (II) and finally on the analysis of objectives relating to the management of the company (III). Where necessary, the Board has taken care to formulate its own notices, which can be found at the end of this document.

I - Editorial and strategic indicators

1. Antennas

Editorial lines

The Board notes that the draft COM has set Radio France the priority of consolidating its position as a benchmark medium by building on its own strengths: the diversity, uniqueness and richness of its program supply. The editorial lines of each station are clearly defined and take into account the major renewal of schedules that took place at the start of the 2014 academic year. These changes, notably on France Inter, France Info and France Musique, appear to be bearing fruit to date in terms of audience figures. The latest Médiamétrie waves have shown a real improvement in the overall audience share of Radio France's radio stations, which rose from 23.1% in the September-October 2014 wave to 23.7% over the same period in 2015.

However, Mouv''s situation remains worrying, although its editorial line seems to have stabilized. Following the introduction of a new editorial positioning in February 2015, the Board notes that the evaluation of Mouv' with its audience has been postponed until the end of 2016. However, the evaluation criteria, the objectives to be achieved and the consequences that could be drawn from this evaluation are not specified. The project needs to be completed on this point.

The Board notes that Radio France's audience targets have been maintained and supplemented. In a context of aging audiences, public radio has been summonsed to targets by age segment. It is essential that all stations continue to appeal to a wide audience. Radio stations must continue their efforts to rejuvenate their audiences; this objective does not only concern Mouv'. France Inter, for example, needs to strengthen its position in the "35-49" segment, where it has been weakening, France Info in the "25-49" segment, and France Culture and France Musique in the "50-64" segment. The latter needs to broaden its listener base. The median age of Radio France listeners is 57 for the group as a whole, and peaks at 68 for France Musique. The Board considers that these priorities are relevant and correspond to the company's challenges.

With regard to information, studies carried out by the IPSOS institute show that France Inter and France Info enjoy a very satisfactory image. In the face of the proliferation of news sources, the draft COM recalls the major role of public radio in terms of reliability, impartiality, plurality and expertise. This reference news supply will need to be further adapted to the specific features of each station: local coverage for France Bleu, cultural news for France Culture and a generalist viewpoint for France Inter. The information supply will also be summoned to all digital media. The circulation of information between the different editorial teams will also be developed. The "France Info média global" project aims to distribute information by integrating radio and digital skills within the editorial teams.

With regard to the Sophia program bank for community radio stations, the Board reiterates the importance it attaches to the role of these stations in terms of social cohesion and plurality. It hopes that this issue will be addressed in the draft COM, so as not to weaken the community radio sector.

Coverage

With regard to the coverage of Radio France's antennas, it should be pointed out at the outset that the Board is not competent to verify the coverage rates, in terms of population and surface area, mentioned in the draft COM.

The draft COM makes provision for completing the FM coverage of the France Bleu network in the Midi-Pyrénées region by extending the coverage of France Bleu Toulouse, and in the Lyon conurbation by creating France Bleu Lyon. The Conseil takes note of these objectives, which are presented as necessary for the fulfilment of Radio France's public service missions: it will therefore take them into account in its future spectrum planning models, in the light of the provisions of article 26 of the law of September 30, 1986 and the case law of the Conseil d'Etat in this area.

With regard to the broader objectives of extending the coverage of Radio France's services in a context of intensive use of FM band frequencies, the Conseil's action will be guided by the following principle: the identification of new frequencies that may require optimization of the use of all frequencies, in particular those allocated to Radio France, must be carried out for the potential benefit of the greatest possible number of service editors. This optimization requires increased exchanges between Radio France, the Government and the Commission, in order to specify these objectives in good time and ensure that this principle is respected: to this end, the draft COM should mention in greater detail the zones or regions in which it would be appropriate to show one of Radio France's services.

The Council notes that the coverage extension objectives only concern mainland France, whereas several of Radio France's services are national. It would like Radio France to consider terrestrial diffusion of national Radio France services in overseas territories.

With regard to the extension of France Info's coverage, the draft COM justifies this in part by the new role that France Info could play in fulfilling Radio France's missions relating to national defense and information in times of crisis, following the scheduled cessation of this service's diffusion on medium wave and that of France Inter on long wave. In applying the principle set out above, the Board will take this development into account, provided that the planned extension clearly contributes to the fulfillment of these missions. The Conseil understands that these choices would not oblige either the authorities or Radio France to reproduce FM coverage identical to that of a service broadcast on longwave. However, it questions the likelihood of finding technical solutions, by identifying new frequencies or optimizing frequencies already allocated, that would lead to a level of coverage for France Info that would meet the obligations placed on this service, and the increase in diffusion costs inherent in extending the service's coverage, due to the shrinking efficiency of diffusion technologies. Lastly, the draft COM envisages the diffusion of Mouv' and FIP in DTT in order to complement their FM diffusion, and to re-examine the possibility for Radio France to show at least part of its programs in DTT, in line with the company's business plan. The Conseil emphasizes the importance for certain Radio France services of the contribution of digital terrestrial diffusion to compensate for the possible cessation of long- and medium-wave diffusion.

Recommendation 1: Define target coverage for France Bleu Toulouse and France Bleu Lyon.

Notice n°2: study the possibility of overseas France broadcasting for Radio France's national stations.

Recommendation 3: Specify the timetable for shutting down medium- and long-wave services, and the nature of the publicity campaigns these shutdowns will entail, to encourage listeners who do not receive the services concerned on FM to switch to other media.

Recommendation no. 4: in addition to FIP and Mouv', study the advisability of ensuring DTT broadcasting of Radio France's other channels in areas where they are not present on FM, and its impact on Radio France's projected business plan.

2. Music and creation

Music

As far as music exposure is concerned, each channel participates in promoting it, according to its specificity, through diversified musical programming. FIP, in particular, is characterized by its eclectic programming. The public group's four musical groups give nearly 200 concerts a year, in Paris, the regions and abroad. Radio France's mission is to promote access to music for all, to help discover and promote young musicians, and to develop educational tools to support young listeners. Given the importance and challenges of music for the Radio France group as a whole, the Board would like to see the results of the prefiguration mission entrusted to Marie-Pierre de Surville, and the follow-up to Stephan Gehmacher's recommendations, made public by mid-2016.

The Council notes, however, that all the indicators concerning the share of original EOF songs are unchanged, or even below the target set in the previous COM. For example, France Bleu, whose share of French-language titles reached 63.3% in 2014, is subject to a no-drop clause set at 60%. On several occasions, the Conseil has highlighted the significant decline in the share of French songs on certain Radio France stations, and even a significant deficit concerning France Inter, Mouv' and FIP. On France Inter, the proportion of French-language titles was 41.7% in 2014 (compared with 45.4% in 2012 and 43.6% in 2013), on Mouv', the proportion was 25.5% in 2014 (compared with 30.3% in 2012 and 28.1% in 2013), and on FIP, the proportion was 17.2% in 2014 (compared with 19.7% in 2012 and 20.2% in 2013), while at the same time an additional effort is being demanded of private radio stations.

Given the public sector's exemplary role in terms of music and creation, the Conseil would like the COM to formalize a commitment in figures for the share of French-language songs per channel.

Recommendation n°5: make provision for an indicator on the proportion of French-language songs per channel (e.g. 50% on Inter and 35% on Mouv'), supplemented where appropriate by an indicator on the diversity of titles shown. The target for the proportion of new titles on France Inter is maintained at 55%. The Board notes that this is down 0.4 points (in 2014 compared with 2013), and is 3.1 points below the target set by the previous COM. Public service radio should maintain its pioneering role in discovering new productions and talents.

Creation

Radio France's commitment to creativity, particularly in the fields of drama and documentaries, is unrivalled in the French radio landscape. Radio France has demonstrated its essential role in revealing new talent and its capacity for program innovation. Through these programs, Radio France also contributes to the diffusion and dissemination of culture to as many people as possible, and plays a key role in setting the standard for the industry. The Board welcomes the fact that the objectives of supporting creation have been maintained.

3. Digital content

The development of digital supplies is a strategic priority for Radio France, which must deploy its broadcasting content on the Internet, enrich existing programs and develop innovative services on new media as part of a multi-channel strategy that responds to new uses. The company is summoned to make up for lost time in this area, and to accelerate its supply of sites available on the Internet. The terrestrial channel package will also be enriched with web radios based on France Musique, Mouv' and FIP. To enhance its classical music supply, Radio France will set up a platform, Francemusique.fr, dedicated to high-definition listening and multi-channel diffusion. The platform is intended to promote the discovery of and introduction to classical music, as well as integrating the productions of musical ensembles. The draft COM does not specify how it will be financed. The Conseil recalls that the European Commission's 2009 communication on state aid makes provision for "important new services" to fall within the scope of the public service remit of public radio broadcasting organizations, and as such benefit from public funding subject to a prior assessment procedure carried out by the member state. The Council also notes that the planned deployment is not specified in terms of prioritization, timetable or the means to be allocated to it. The Council also approves of Radio France's objective to enhance the quality of its online supply and its capacity for innovation in this field. This enrichment will focus on three areas of use: information, listening to music online, and promoting its musical and sound heritage (archives, disc library and scores). In order to adapt its production tools to the digital age, the draft COM makes provision for the creation of an investment committee to set up a common editorial tool for all teams. The harmonization of mixing and editing tools, as well as new documentary tools, will eventually facilitate the listing and enrichment of content.

The Board believes that training staff in digital skills should be a major focus for the company, as part of the necessary modernised and mobile workforce. Developing these skills must be a strategic priority for the company. The deletion of the indicator for the number of employees trained in the development of multimedia, site management and digital diffusion technologies must not be seen as a sign of weakening.The Conseil regrets that the objectives of cooperation with other public audiovisuel companies are not the subject of precise guidelines. It believes that partnerships in the fields of digital technology, information, training and international initiatives could have been addressed. The establishment of a digital federation between the various national program companies should be encouraged.

II - Indicators for social cohesion challenges

With regard to social cohesion and equal opportunities, the Board deplores the absence of any indicators in the new draft COM. This shortcoming is all the more regrettable given that Radio France seemed, since the beginning of 2013 and at the Council's instigation, to be investing in the implementation of a global and proactive equal opportunities policy, both in the company's internal organization and in its programs.

It is imperative that initiatives contributing to the promotion of social cohesion, equality between men and women, and improved on-air representation of the diversity of our society be included in the draft COM. Furthermore, for the sake of coherence and efficiency, the COM must be put into perspective with the texts drawn up by the Council on subjects tending to strengthen social cohesion.

1. Media education

With regard to Radio France's editorial and cultural ambitions, the Board is particularly attentive to Radio France's responsibility for media education, and considers this to be an essential mission of public radio.While the draft COM specifies that Radio France must "reflect and give voice to French society in all its diversity, in its territories, in its neighborhoods" and the tragic events of January and November 2015 demonstrate the crucial importance of media education for youngsters, indicators concerning the educational actions undertaken by the channels have not been defined. What's more, the indicator tracking the average time spent by channels on programs aimed specifically at youngsters has been removed, which the Council regrets. The Council noted Radio France's significant efforts in 2014, with the introduction of educational and mediation activities for school classes and the signing of an agreement with the French Ministry of Education. By way of example, the France Info workshop is one of the most successful media education tools available. In this context, the Board will pay particular attention to Radio France's activities with schoolchildren, which are particularly relevant now that the Maison de la Radio has been reopened to the public.

Recommendation no. 6: Propose a number of partnerships with schools, particularly those involved in urban development.

2. Representation of women

The Board considers that Radio France should establish gender equality objectives in its COM, based in particular on the qualitative and quantitative indicators in the Board's deliberation of February 4, 2015. As a reminder, the law of August 4, 2014 on real equality between men and women had inserted a new article 20-1 A into the law of September 30, 1986, which makes the Conseil responsible, in consultation with the audiovisuel communication services concerned, for determining the qualitative and quantitative indicators on the representation of women and men in their programs, which the broadcasters will have to provide to the Conseil. The conditions for enforcing this law needed to be clarified on a number of points. Consequently, a deliberation, of general scope, which covers all television and radio services affected by the legislation, and Radio France in particular, was passed by the Board on February 4, 2015. In this deliberation, it is indicated that a count on the presence of women, stereotypes in programs and the diffusion of dedicated programs will be communicated annually by editors' commitment to the Council and that they will have the possibility, on a voluntary basis, to determine, each year, additional commitments to these indicators, according to their specific editorial line and internal policy. These commitments would naturally find their place in the COM.

Recommendation 7:

- Maintain targets for women's breakdown by category;

- set a target of at least 50% of positions to be filled by women;

- translate into the COM the target of 30% female experts in news programmes and debates in 2016, to reach 40% by the end of this COM.

3. The diversity of French society

The Board considers that the provisions included in Radio France's mission statement in 2006 in this area are not sufficient, and must be supplemented in the COM by more concrete objectives. Indeed, it considers that this issue should be pursued in a proactive manner by the public service, all the more so as Radio France has been awarded the Diversity Label by AFNOR. Generally speaking, this label should serve as a catalyst to ensure that the public service sets an example, even beyond human resources management, in terms of the epresentation of all components of French society in its programs. At its colloquium on diversity, held on October 6, 2015, the Conseil had expressly demanded that the audiovisual media devise a diversity action plan. For France Télévisions, this will involve, for example, including this action plan in terms of objectives in its new COM. Radio France should also follow this logic.The Council also hopes that the commitments made in the Charter to promote the training and professional integration of disabled people in the audiovisual industry of February 11, 2014, drawn up under its aegis, will find an effective translation in terms of objectives enshrined in the COM. At December 31, 2014, 183 disabled people were employed at Radio France, representing 3.4% of the total workforce. Between 2009 and 2014, this rate increased by 30%. It is important that this dynamic continues in order to move towards the legal target of 6%.

Recommendation no. 8:

- propose an indicator for the employment rate of disabled people, with a target of 6% by 2019;

- translate Radio France's action plan for the diversity of French society into the COM.

III - Management objectives

1. Financial and governance issues

At a time when the company's critical financial situation has belatedly come to light, the implementation of monitoring indicators in this area is essential, if not indispensable. The Board notes that the draft COM makes provision for target indicators for payroll, operating income, net income and cash flow. Likewise, as previously emphasized, the forecast plan for the 2015-2019 period sets out a financial pathway that should enable us to return to breakeven by 2018.

The contribution to public audiovisuel, which accounts for almost 90% of the company's operating resources, will be stabilized over the 2015-2017 period at €564.2 million, then increased by 1.5% in 2018 and 2019. This increase could, however, remain slightly below current inflation, whereas the overall amount of the audiovisuel public contribution paid by those subject to the law is indexed to inflation.

The objective of increasing the company's own resources should be achieved by developing activities for the general public following the reopening of the Maison de la Radio to the public, Internet advertising and space rental. The projected income statement makes provision for a moderate increase (+3%) in these resources. This growth seems credible, but is difficult to analyze given the fragmentary nature of the financial information provided in the appendices to the draft COM.

As an increase in own resources is essential to the company's return to equilibrium, the Board would like the COM to be supplemented, from the end of the first half of 2016, by a follow-up of paid services such as subscriptions and space rentals.

Recommendation no. 9: as of the first half of 2016, set up a follow-up of revenues linked to paid services since the reopening of the auditorium.

A financing plan estimated at 170 M€ is also detailed. The public audiovisuel contribution to the investment section will be maintained at 24.6 M€ over the entire period. In addition, the French government has committed to providing exceptional support in the form of an additional capital grant of €25 million in 2016, 2017 and 2018, and a capital endowment of €55 million in 2016 and 2017. Lastly, Radio France is making provision for a €70 million loan with a maximum term of 7 years, of which the company plans to repay €25 million in 2017, €30 million in 2019 and €15 million beyond the COM period.

The Board took note of the exceptional financial means committed by the French government, in particular to complete the renovation of the Maison de la Radio. This site-occupied project has proved highly disruptive for all our staff. It is therefore important to keep to the delivery date, which is now scheduled for the end of 2018. The Board of Directors and staff will have to be fully involved in the regular monitoring of the work until completion of this program.

Within this framework, the company should return to financial equilibrium in 2018. By this date, the company should have implemented the strategic developments necessary for its growth, while continuing to finance the renovation of the Maison de la Radio. In terms of corporate governance, the Board welcomes the measures introduced to strengthen the role of the Board of Directors. In line with the recommendations made by the French National audit office, the Board will henceforth play a major role in the governance of the company. From now on, the Board of Directors will be informed annually of all actions undertaken by the public company concerning production methods, the coverage of the France Bleu network and audience knowledge. Monitoring of the renovation project should also be added.

The Board of Directors will also be closely involved in strengthening the improvement of financial information, particularly on issues relating to risk control and exemplary management. In order for the Board to fully fulfill its role in monitoring the national program companies, it must also receive these documents. In addition, it considers it important that a date for submission of annual performance reports be set in the COM.

Recommendation no. 10: The Board wishes to receive all the documents sent to the Board of Directors and necessary for the control entrusted to it by law. With regard to the introduction of cost accounting, as recommended by the National audit office, the draft COM makes provision for the deployment by 2018 of general accounting tools and budget and cost monitoring documents, as well as the introduction of procedures to ensure exemplary management. The draft COM also aims to improve the diffusion of financial information to company employees, who must be fully involved in monitoring developments in the company's situation and operations. It thus takes up one of the recommendations made by Radio France's ombudsman. Indeed, improving social dialogue within the company is a priority for Radio France, and the Board encourages this.

2. Human resources

Radio France has begun the process of negotiating a New Collective Agreement. This agreement will replace the current collective agreement for technical and administrative staff, and will serve as the basis for a human resources policy adapted to the company's new challenges and developments in its competitive environment. The conclusion of this agreement is a priority for Radio France. In addition, the reform of production methods will have to be examined during the term of this COM.

The Board notes that the objective of workforce stability has been removed in favor of a stabilization of personnel costs over the entire duration of this COM. Monitoring the Group's headcount, both for permanent and temporary staff, and for each branch, remains a priority insofar as personnel costs account for almost 60% of operating expenses.

The present notice will be published in the Journal Officiel.

Paris, November 27, 2015

For the French Superior Audiovisual Council :

Le Président,

Olivier SCHRAMECK

List of 10 notices

Coverage

• Recommendation 1: Define target coverage for France Bleu Toulouse and France Bleu Lyon.
• Notice n°2: Examine the possibility of overseas France broadcasting on Radio France's national stations.
• Recommendation 3: Specify the timetable for shutting down medium- and long-wave services, and the nature of the publicity campaigns these shutdowns will entail, to encourage listeners who do not receive the services concerned on FM to switch to other media.
• Recommendation no. 4: in addition to FIP and Mouv', study the advisability of ensuring DTT broadcasting of Radio France's other antennas in areas where they are not present on FM, and its impact on Radio France's projected business plan.

Radio stations

• Recommendation n°5: make provision for an indicator on the proportion of French-language songs per channel (e.g. 50% on Inter and 35% on Mouv'), supplemented where appropriate by an indicator on the diversity of titles shown.

Social cohesion

• Notice n°6: Propose a number of partnerships with establishments involved in urban policy.
• Notice n°7 :

- Maintain targets for women's breakdown by category;

- set a target of at least 50% of positions to be filled by women;

- translate into the COM the target of 30% female experts in news programmes and debates in 2016, to reach 40% by the end of this COM.

• Recommendation no. 8:

- propose an indicator for the employment rate of disabled people, with a target of 6% by 2019;

- translate Radio France's action plan for the diversity of French society into the COM.

Corporate management

• Recommendation no. 9: as of the first half of 2016, set up a tracking system for revenues from paid services since the reopening of the auditorium.
• Recommendation no. 10: The Board would like to receive all the documents sent to the Board of Directors and required for its statutory control. It considers it important to set a date for the submission of annual reports on the execution of the COMs.