Opinion no. 2016-20 of November 30, 2016 on the performance report for 2015 of the contract of objectives and means between the State and Radio France.

In accordance with Article 53 of Law no. 86-1067 of September 30, 1986 on freedom of communication, the French Superior Audiovisual Council (hereinafter: "the Council") is summoned to issue an opinion on the annual performance report for the Contract of Objectives and Means (hereinafter: "COM") that has been concluded between the State and the national program company Radio France for the period 2015-2019.

The performance report for the 2015 financial year was sent to the Council on June 30, 2016.

The present opinion of the Council concerns the execution of the COM for 2015. It should be noted that, although the COM was signed in April 2016, the first year of application concerns fiscal 2015.

The COM summons the national program company Radio France to focus on three main strategic areas:

• to develop an editorial strategy aimed at strengthening the complementary nature of its channels in order to reach all audiences in a multimedia environment,
• consolidate its role as a major player in French musical and cultural creation,
• modernised the management of the company, in particular by strengthening social dialogue and implementing the conditions for a return to breakeven.

I - Radio France's editorial strategy

Radio stations: editorial developments in line with those launched in 2014, with the exception of Mouv'.

In terms of programming, the work undertaken to make Radio France's station supplies more complementary continued in 2015.

Among the changes made, the France Inter channel continued to renew itself with new magazines, cultural(Le nouveau rendez-vous) and political(Agora). France Info continued the overhaul of its schedule begun in 2014 aimed at focusing on continuous news coverage. News decoding programs were introduced, such as Expliquez-nous and France Info Junior. For the first time, FIP offered four weekly early-evening shows, to build listener loyalty. Finally, Mouv' overhauled its editorial line-up for the third time in three years. The target audience has been rejuvenated, with a focus on the 13-25 age group instead of the 20-35 age group.

On the other hand, the schedules of France Bleu, France Musique and France Culture changed little.

Audiences increased overall

The transformations made to editorial lines since 2014 seem to be bearing fruit. Despite the long labor dispute in spring 2015, Radio France's overall audience has increased. The public group brings together more than thirteen million listeners on an average day, with a cumulative audience share of 25.3% (+0.3 points compared to 2014).

With a cumulative audience of 10.2%, in line with the COM target, France Inter achieved a very strong 0.5-point increase. Its morning show (7 a.m. to 9 a.m.) is the most listened-to in the radio landscape. Audiences for France Info (7.8%), France Culture (2.1%) and FIP (1%) were stable compared with 2014, and in line with COM targets. On the other hand, cumulative audiences for France Bleu, France Musique and Mouv' fell back, and did not achieve the results expected in the COM. Le Mouv''s audience (0.3%) remains a major concern. The station is unable to stabilize its editorial line, despite having once again modified its programming in February 2015. An evaluation of Mouv''s new editorial positioning, initially scheduled for the end of 2015, has been pushed back to the end of 2016 as part of this new COM.

In terms of audience performance among their respective target audiences, four stations reported increases on 2014: France Inter, France Info, FIP and Mouv'. France Inter, particularly in the 35-49 age group, exceeded its target by half a point. This increase continued in 2016.

Radio France's digital supply has expanded, and COM targets were exceeded in the first year.

The successes achieved in linear diffusion have been extended to digital audiences. In 2015, the COM digital audience indicators were well above target. The targets set at the end of the COM have already been met. In 2015, the average number of monthly visits across all means was 27.4 million (for an end-of-Com target of 26.7 million), and the number of monthly on-demand listens across all means was 24 million (the target for 2019). It seems that the COM, although signed in April 2016, clearly underestimated the company's capacities in this area.

Regarding the adaptation of websites to new uses, France Bleu's website was completely overhauled in September 2015. It provides access to all content from the 44 local radio stations in the France Bleu network with live or deferred broadcasting listening. France Info's has been revamped with a supply fully compatible with mobile reception. In March 2015, France Info launched Live de France Info, a new video antenna available 24/7 that enables on-demand distribution on all social networks.

Perception of the information supply is satisfactory

With the multiplication of information sources, guaranteeing reference information is one of the priorities of the new COM. The perception survey carried out by the IPSOS institute (3,093 members of the Ipsos Radio France panel) on the perception of quality and singularity in the treatment of information shows rather satisfactory results for Radio France among its listeners in terms of rigor, plurality, impartiality and ability to decipher current affairs. In addition, thanks to its territorial network of 44 regional antennas, public radio has been able to maintain a local news service.

Finally, in 2015, France Info created an in-house news agency.

II. Radio France's role in French musical and cultural creation

With regard to the musical supply, results are mixed, and information on the exposure of original EOF songs is inadequate.

With regard to music, COM objectives are only partially achieved. France Bleu is meeting its target for the proportion of French-language titles, France Inter for the diversity of titles and the number of different French-language titles broadcast per year, and FIP for the number of different titles broadcast per week.

However, all these indicators are non-drop clauses. For France Bleu, the share of French-language titles reached 62.7% in 2015, for a stable target over the entire period (above 60%), even though this share is declining since it stood at 63.3% in 2014. Lastly, the diversity of titles shown is dropping on France Inter and FIP compared with 2014.

On France Inter, the rate of new releases (43.2%) is well below the target (over 50% for the whole of this COM). However, the diffusion of musical loops during the strike period skewed the results for the year under review. In 2014, the share of new music reached 51.9%.

Similarly, on Mouv', the share of French-language titles fell short of the COM target. It stands at 31.4% (up on 2014) against a target of 35%. On the other hand, the 25% target for new French-language talent was exceeded (28.6% vs. 25.9% in 2014).

Unlike in previous years, Radio France did not wish to provide the Conseil with the share of French-language titles on all its channels, with only the proportions for France Bleu and Mouv' being communicated under the COM. The Conseil, which has noted a steady decline in the diffusion of French-language titles on Radio France over the past few years, believes that public service radio should set an example in this area, while private radio stations are being demanded to make an effort.

Following the reopening of the grand auditorium at the end of 2014, 2015 was marked by numerous events enabling the public to reinvest in the Maison de la radio. It was also the first full year of residency for the Orchestre national de France and the Philharmonic Orchestra. The diversity of the musical supply was strengthened, with 114 different composers and 305 works performed in 2015.

Support for drama and documentary creation in drop

Radio France's commitment to creativity, particularly in the field of drama and documentaries, is very substantial and is part of its uniqueness. France Culture, for example, produces seven hours of drama a week. However, the COM objectives were not achieved in terms of the number of commissions for literary texts (89 in 2015 against a target of 94), the acquisition of rights for dramatic works (28 in 2015 against a target of 53) and the total number of commissions (190 in 2015 against a target of 200). Only the number of commissions for musical works was achieved and largely exceeded (73 against a target of 53). Taking into account the very late implementation of these objectives, the Board would like Radio France's action in favor of creators to be based on a proactive commissioning policy.

An ambitious media education policy

Radio France relies on the commitments defined in the COM and on the strong impetus of the Board to develop an ambitious policy of media education and artistic and cultural education. As such, the Board has noted the significant efforts made by the public group in terms of educational action, and welcomes all these initiatives, even though the COM does not include quantitative targets in this area.

In 2015, 55,000 youngsters visited the Maison de la radio. More than 500 events (concerts, educational activities and cultural mediation) were offered, including 73 concerts, 150 radio workshops, 50 musical workshops for youngsters; 200 guided and fun tours were also set up. In addition, the agreement signed on October 15, 2014 with the French Ministry of Education, Higher Education and Research and the French Ministry of culture and communication in favor of artistic and cultural education, in conjunction with CLEMI, has enabled the group to carry out actions in partnership with the Paris, Versailles and Créteil academies.

Following the Council's summons to action, Radio France once again made a major commitment to Press and Media Week in Schools (SPME). The Group's radio stations were mobilized, and over 900 students took part in radio workshops, meetings and debates. Many of the Group's professionals took part in the event, sharing their knowledge with the students.

More needs to be done on the representation of women on air

With regard to women's rights, Radio France submitted qualitative and quantitative indicators on the representation of women and men in its programs to the Board for the first time, as made provision for in deliberation no. 2015-2 on respect for women's rights, adopted on February 4, 2015.

With regard to quantitative indicators, the Group's six stations reported a female presence of 21% on France Info, 29% on France Inter and France Musique, 35% on France Culture, 37% on Mouv' and 89% on FIP in fiscal 2015. The share of female presenters and hosts on all six stations is almost equal to that of their male equivalents. However, the Council noted that the proportion of women remains low in the categories of "experts", "other speakers" and "political guests".

Furthermore, and as it had already indicated in its opinion no. 2015-22 of November 25, 2015, the Council continues to regret that no target objective, particularly with regard to the representation of women in the "experts" category, has been made provision for in Radio France's new contract of objectives and means, unlike France Télévisions, which, for the second time in its COM, has made quantified commitments in this area.

With regard to qualitative indicators concerning the fight against sexist prejudice and violence against women, Radio France reported having diffused 65 programs and/or subjects dealing with these issues on its airwaves (e.g.: programs dealing with violence against women, inequalities in the world of work or the "24h of women's sports").

The Board would like to point out that this first year of application of the deliberation of February 4, 2015 has been a "running-in" year and that it has therefore become fully aware of the difficulties encountered by Radio France. Nevertheless, he demands that the imperfections that have been noted in the group's declarations - Radio France has limited its declarations to the France Inter, France Info, France Culture and France Musique morning shows concerning the "experts", "other speakers" and "political guests" categories - be corrected in future exercises, in accordance with the terms decided jointly.

Finally, with regard to human resources, in 2015 Radio France pursued its policy of promoting gender equality internally. In fact, an agreement on professional equality between men and women was signed on June 16, 2015.

The diversity policy has been marked by various initiatives

A Diversity Committee was set up in September 2015, bringing together representatives from all departments. Its aim is to put in place specific actions to encourage diversity within the teams so that it is revealed through the editorial and cultural supply. The committee is responsible for steering Radio France's diversity policy in relation to four target populations: women, people with disabilities, youngsters and seniors, and people from socially and/or territorially diverse backgrounds who are far from employment. Radio France is also committed to promoting diversity within its teams. For example, in 2015, of the 92 work-study hires made by Radio France, 42 were scholarship holders or disabled. 45.7% of these recruitments took place within the framework of agreements between Radio France and journalism schools and their partnership with the Mozaik RH association. In addition, 10 disabled work-study students were recruited by Radio France in 2015, including 7 in audiovisual professions.

Externally, Radio France continues to work with associative and institutional partners to raise awareness of its societal policy and encourage encounters between the professional world and youngsters from sensitive areas or with disabilities. In this manager, partnerships have been signed with associations to support youngsters from diverse backgrounds, such as Frateli, Capital filles and Passeport Avenir, in which 72 Radio France employees were involved in 2015, compared with 39 in 2014.

The Board believes that, as a public medium, Radio France has a major responsibility and a duty to set an example in terms of commitments to fight agains discrimination. This must be reflected in concrete actions in favor of young audiences, the representation of diversity throughout the national community, the promotion of youngsters and support for creative talent.

According to Radio France, the reopening of the Maison de la Radio, which is intended to be a place for sharing and social mixing that encourages intergenerational and intercultural encounters, has led to an increase in initiatives aimed at fulfilling this responsibility. The Board reiterates the importance for Radio France of maintaining and amplifying its commitments in this area.

III - With regard to Radio France's management objectives

A clear operating loss

While all the COM objectives relating to the company's management have been met, as in 2014, the 2015 financial year was marked by serious financial difficulties.

For the second year running, the company posted a negative net result. The deficit reached 13.9 M€ for net income (the net income expected in the COM for fiscal 2015 was -19.2 M€, after taking into account an Employment Competitiveness Tax Credit of 4.7 M€). Operating income was -27.5 M€. After restatement, as the annual share of the investment subsidy write-back which finances the depreciation of the refurbishment is recorded as exceptional income and included in operating income, operating income came to -16.6 M€. This result is better than the one made provision for in the COM pathway (24.6 M€).

The sharp deterioration in operating income is due to the fact that operating income (before write-backs of provisions and the share of the equipment subsidy transferred to the income statement) fell by 8.2 M€, while operating expenses fell by only 4.6 M€.

In terms of operating income, public funding totaled €601.8 million, including €572.2 million in operating audiovisuel contributions and €29.6 million in investment grants. The €3m reduction in the contribution to public audiovisuel (compared with 2014) is linked to the reclassification of €5m from the operating grant to the investment grant to enable the financing of damage-related work as part of the refurbishment. The company's own resources fell by €3m to €66.6m (compared with €69.6m in 2014). The decrease concerns advertising revenues for 1.9 M€ following the strike in March/April 2015, as well as revenues from sales and provision of services (-1.2 M€), whereas the reopening of the Maison de la radio to the public should have enabled them to increase.

While article 53 of the law of September 30, 1986 makes provision for the COM to set out the expected amount of own-source revenues, distinguishing between those from advertising and sponsorship, Radio France did not wish to provide the Board with a breakdown of this resource. The Board deeply regrets this lack of information. It points out that it will be required to draw up, during the first half of 2017, an assessment of the implementation of Decree 2016-405 of April 5, 2016.

The decline in operating expenses is mainly due to a 2.2% decrease in personnel expenses (-9M€). These represent 56% of total operating expenses. Radio France's headcount stood at 4,629 FTE at the end of 2015 (4,658 in 2014).

Total payroll was €390 million (compared with a COM target of €397 million). This development is due to the regularization in the 2014 accounts of social charges in respect of the years 2006 to 2013. For the 2015 financial year, the decrease is linked to a reduction in headcount, savings on program schedule fees and salary deductions linked to the spring 2015 labor movement. Depreciation, amortization and provisions rose by €6.1m. The sharp rise in depreciation and amortization (+7.5 M€) is due to the full-year effect of the commissioning of phase 2 of the refurbishment work at the end of 2014.

With effect from the late signing date of the COM, the social barometer could not be in place in 2015. However, the Board believes that tools for monitoring social dialogue should be implemented as soon as possible. Indeed, the structural reforms required to modernise the company will necessarily have to be accompanied by increased consultation with all employees.

Net cash at December 31, 2015 stood at -5.5 M€ (versus 8.4 M€ in 2014). This 14 M€ decrease is mainly attributable to disbursements made in connection with rehabilitation work and ongoing capital expenditure. The COM forecast was -40.4 M€ in 2015.

A return to breakeven is made provision for mid-2018. To cover financing needs, the French government has committed to providing an additional €55 million over two years, as well as an additional €25 million in audiovisuel contributions over three years. At the same time, the company may take out a €70 million loan, which will significantly increase its financial expenses.

Strengthening synergies between Radio France and other public audiovisual companies

During 2015, Radio France collaborated with France Télévisions on the production and diffusion of events, including the Victoires de la Musique (variety, classical and jazz) and the July 14 Paris concert. The various channels also collaborate on evening events organized in aid of major causes such as Sidaction and the Telethon.

Radio France has also forged a partnership with France Médias Monde, whose foreign correspondents help to show news content for its channels. In addition, numerous editorial partnerships have been set up between channels (annual partnership around the Tous politiques program between France 24 and France Inter).

2015 also saw the start of discussions to set up a continuous news channel project, shared by Radio France, France Télévisions, France Médias Monde and the Institut national de l'audiovisuel (INA). This is the first major cooperation project between all the national program companies and the INA; this project is in line with the public service missions listed in article 43-11 of the law as welcomed by the Conseil in its opinion n°2016-9 of May 4, 2016.

Continued renovation of the Maison de la Radio

Refurbishment work continued in 2015, particularly on phase 4. The conclusions of the audit conducted by OPPIC (operator of cultural heritage and real estate projects) led to strengthening the steering of the operation. The year 2015 was devoted to cleaning up and removing asbestos from Studio 101, lifting reservations about the work and drawing up the final accounts, as well as drawing up a renovation and financing plan for the 14 so-called "means" studios.

To carry out the work, Radio France has set up working groups comprising user representatives and in-house experts, to involve staff in the project. A communication plan has been made provision for in 2016.

However, the Board notes that no precise timetable has been communicated concerning the subsequent progress of the rehabilitation work.
The present notice will be published in the Official Journal.

Paris, November 30, 2016.
For the French Superior Audiovisual Council :
Le Président,
Olivier SCHRAMECK