Warner Bros. International Television Distribution and HBO have signed a landmark multi-year deal to be the initial suppliers of programming to France Telecom Orange’s just-announced multi-platform pay television service, it was announced on monday, April 7th by Jeffrey Schlesinger, President, Warner Bros. International Television Distribution and Charles Schreger, President, Programming Sales, HBO. Under the terms of the deal, a wide variety of programming from both companies will be made available across a number of platforms. From WBITD, Orange has acquired the rights to all of Warner Bros.’ current and upcoming feature films (“Harry Potter and the Order of Phoenix,” “Ocean”s 13,” “I am Legend”, “The Dark Knight”), as well as select titles from the studio’s extensive feature and television library. In HBO’s first-ever output deal in France, Orange has acquired rights to HBO series, films and miniseries, including the acclaimed miniseries “John Adams,“the upcoming Alan Ball series’ “True Blood”, and David Simon’s miniseries “Generation Kill”, as well as select documentaries and library titles. Warner Bros. and HBO are both Time Warner companies.

As announced by Orange at MIPTV, this new service is expected to be available to consumers in the fourth quarter of 2008. Caroline Lang, Vice President & General Manager, France and Alex Ogilvie, Senior Vice President, Business Development, Europe, brokered the deal on behalf of WBITD; Royce Battleman, Senior Vice President, Business Affairs, Film Acquisition managed negotiations on behalf of HBO.

“Orange has been a great partner to us since we signed their very first VOD deal some four years ago,” said Schlesinger. “The deal we’ve announced today will help Orange provide consumers with more choices and greater access to world-class programming and we’re proud to be a part of that.”

“This is a monumental deal for HBO with a wonderful partner in Orange,” said Schreger. “We are thrilled that the breadth and depth of HBO’s high quality programming will be enjoyed by French audiences and made available to them on their preferred platform.”

“We are particularly proud to have signed this important deal that will offer consumers broad access to our product while spreading and reinforcing the digital services offering in the French market,” said Iris Knobloch, Président-Directeur General, Warner Bros. France.

Warner Bros. International Television Distribution
Warner Bros. International Television Distribution is one of the world’s largest distributors of feature films, television programs and animation to the international television marketplace (broadcast, pay cable, basic cable, satellite, pay-per-view, video-on-demand, digital platforms, etc.). It licenses some 50,000 hours of programming (including more than 6,000 features and 70-plus current series), dubbed or subtitled in more than 40 languages, to telecasters and cablecasters in more than 175 countries.
HBO
Home Box Office, Inc. is the premium television programming subsidiary of Time Warner Inc., providing two 24-hour pay television services - HBO and Cinemax - to over 40 million U.S. subscribers. The services offer the most popular subscription video on demand products, HBO On Demand and Cinemax On Demand, as well as HBO on Broadband, HD feeds, and multiplex channels. Internationally, HBO’s branded television networks, along with the subscription video on demand products HBO On Demand and HBO Mobile, bring HBO services to over 50 countries. HBO programming is sold into over 150 countries worldwide.

Europe has 258 VOD services, and France leads the market.

A survey from the European Audiovisual Observatory (carried out with the French government’s Media Development Department (DDM)) and carried out by NPA Conseil, finds that there were “258 VOD operators in the 24 European countries last year.”

The 2006 position was that there were 142 services only up and running. Such growth is explained by the fact that TV channels now have “websites offering free catch-up TV, giving viewers access to certain programmes,” says EAVO, “like episodes of series, for several days after their transmission.”

As in 2006, France remains the country with the highest number of VOD services, 32 in 2007, followed by The Netherlands (30), Germany (26), and Sweden (16) equally with the UK.  “74% of those services surveyed are delivered via the Internet, 26% are available as part of IPTV packages and 10% come with cable packages. As previously, only a minority of VOD services are delivered via satellite or on digital terrestrial television, the survey mentions. Throughout Europe, 62 catch-up TV services are thus delivered on Internet compared with 11 through IPTV, 8 on cable, 2 via satellite and 1 on DTT.

Source: RapidTV News

Last year, French customers spent €1.48bn buying pre-recorded videos and DVDs, representing a fall of revenues down 10.7% compared to 2006.

According to a joint survey from CNC and market research company GfK, traditional VHS tapes almost totally disappeared with less than one million VHS units sold, down 64%, with DVD sales now representing 99.9% of the market.

However, DVD sales also suffered a 3.7% decrease reporting 130.41m units sold. Last year, more than 540,000 high-definition DVD units were sold and generated €14.29m in revenues.

Source: RapidTV News

Paramount Home Entertainment France will take over distribution of all Gaumont movies for the French DVD market.

According to the terms of the agreement signed, the “most ancient Hollywood studio” and the “oldest movie production company” are teaming up to push their market share over the 10% mark.

“Gaumont Video needed a distributor able to follow its quality editorial strategy,” Gaumont Video CEO Nicolas de la Mothe said.

The company’s libraries amount to about 800 movies for Gaumont and 9,000 for Paramount.

The agreement also includes Gaumont’s new feature films like 3 Amis, Enfin Veuve and sci-fi movie Chrysalis.

Total Blu-ray Disc movie sales across Europe have topped one million units, it was announced today by the Blu-ray Disc Association European Promotions Committee. Of the High Definition movie discs bought by consumers year-to-date in Europe, 73% were in the Blu-ray Disc format and 27% were HD DVD, according to sales data provided by Media Control Gfk International.

The only High Definition packaged media universally supported by the film, music, gaming and computer industries, BD is the #1 selling High Definition packaged media. The one million unit milestone relates to movies only. If BD game disc production is added into the equation, then total number of discs produced for sale in Europe already exceeds 21 million units. The so-called ‘PlayStation effect’ is important since it is creating major economies of scale and makes BD disc replication cost effective.

Blu-ray Disc movie sales experienced their highest weekly sales since the inception of the format, in week 44, topping 66,000 units. * This is due to the launch of new release titles such as 300, Spider-Man 3, Die Hard 4.0 and Pirates of the Caribbean: At World’s End.

“This is an important milestone for Blu-ray Disc in Europe and proves once again that whenever consumers have the choice they decide overwhelmingly in favour of BD,” stated Frank Simonis, Chairman of the Blu-ray Disc European Promotions Committee. “Early indicators show that the Christmas holiday season will be exceptionally good for Blu-ray Disc across all categories from packaged media to standalone players and BD capable games consoles.”

News of the 1 millionth Blu-ray Disc sale in Europe was met with pleasure in many of the leading Hollywood studios. Bob Chapek, Worldwide President, Walt Disney Studios Home Entertainment believes that this news is the prelude for an exponential growth period in BD sales.

“Blu-ray will inevitably prevail because Blu-ray delivers what consumers want: True High Definition picture without compromise, the best sound quality, the best choice in content, the most in special features, and of course the most disc storage capacity. No tradeoffs. No compromises,” commented Chapek.

Added Mike Dunn, Worldwide President, Twentieth Century Fox Home Entertainment, “I think European consumers realize the future is ‘Blu.’ The certainty that Blu-ray will be the successor to DVD boils down to one simple truth: Blu-ray technology is just better. It was created as a new format with plenty of room ready to serve movies, music, gaming and computing — and sometimes all four at once. Having nearly 70 per cent more capacity on a Blu-ray disc, compared to a HD DVD disc, makes Blu-ray ‘future proof’ and allows for unbridled creativity as new interactive features evolve.”

Added David Bishop, Worldwide President, Sony Pictures Home Entertainment, “The extremely strong performance of Blu-ray in Europe in a relatively short period of time is no surprise and clearly demonstrates that consumers are embracing Blu-ray as the high definition format of choice. As in the United States, Blu-ray continuously outsells HD DVD by a ratio of more than more than two to one, and 3:1 since the launch of the PlayStation 3 in Europe. Consumer spending is sending an obvious message and this growing sales margin leaves little doubt that Blu-ray is on-track to ultimately win this format war worldwide.”

In Europe, Blu-ray Disc’s sales lead over the rival HD DVD format, increasing monthly since the PS3’s release in March (outselling HD DVD by 2:1 YTD and 3:1 since the launch of the PS3). The launch of the PS3 was seen as a turning point for the Blu-ray Disc format across Europe, with weekly movie sales of Blu-ray Disc titles averaging between two- and five-times the amount of HD DVD sales week over week.*

The best selling Blu-ray titles year-to-date are 300 – the number one selling title in France, Germany, Italy, Spain, Benelux and Sweden and Casino Royale - the number one selling title in UK and Ireland.

Blu-ray Disc is a next generation optical disc format developed for High Definition video and high-capacity software applications. A single-layer Blu-ray Disc holds up to 25 gigabytes of data and a dual-layer Blu-ray Disc holds up to 50 gigabytes of data. This greater storage capacity enables the Blu-ray Disc to store over six times the amount of content than is possible with current DVDs, and is particularly well-suited for High Definition feature films with extended levels of additional bonus and interactive material, as well as next generation computer games.

Blu-ray Disc also features the most advanced copy protection, player backward compatibility with the current DVD format, connectivity and advanced interactivity. Showcasing picture quality with six times the resolution of DVD and theatre quality “uncompressed” audio for the purest digital sound, the cutting-edge discs also feature enhanced and integrated menus, games, High Definition bonus materials and Java-encoding for more dynamic and sophisticated interactivity.

Orange has teamed up with Gaumont. Through this partnership Orange will offer customers an initial selection of around a hundred films on demand (VOD) on TV, computer and mobile phones. The films come from the studio’s recent productions and catalogue, and will be available starting December 1, 2007 as part of Orange’s 24/24 Video service, available on Orange TV and on www.orange.fr.

The deal, which is to last several years, provides film viewers and Internet users access to a large range of films, including French classics like The Tall Blond Man with One Black Shoe, Taxi for Tobruk, Pacha, Monsieur Gangster, as well as more recent films like Cashback, Have Mercy on Us All, Earth, and 36 Quai des Orfèvres.

24/24 Video goes mobile

Soon and for the first time, Orange subscribers will be able to rent films on their computer and transfer them easily and safely onto their mobile phone and watch them wherever they go.

24/24 Video, adapted to all tastes and responding to all user needs

24/24 Video customers will be able to watch all these films on their TV, computer and, soon, on their mobile phone. 24/24 Video updates its offer every week from a negotiated catalogue of nearly 3,000 films and 6,000 TV programmes.

This new deal enables Orange to further enhance its legal download offer of French and European films.

About Orange
Orange is the key brand of France Telecom, one of the world’s leading telecommunications operators. France Telecom serves more than 167 million customers in five continents as of September 30, 2007, of which two thirds are Orange customers. The Group had consolidated sales of 51.7 billion euros in 2006 and 39.4 billion euros for the first nine months of 2007. At September 30, 2007 the group had 106.9 million mobile customers and 11.4 million broadband internet (ADSL) customers.

Launched in June 2005, the NExT program (New Experience in Telecommunications) will enable the Group to pursue its transformation as an integrated operator and make France Telecom the benchmark for new telecommunications services in Europe. In 2006, Orange became the Group’s single brand for Internet, television and mobile services in the majority of countries where the company operates, and Orange Business Services the banner for services offered to businesses worldwide. France Telecom is the number three mobile operator and the number one provider of broadband internet services in Europe and one of the world leaders in providing telecommunication services to multinational companies.

France Telecom (NYSE:FTE) is listed on Euronext Paris and on the New York Stock Exchange.

EUROPACORP, a producer and distributor of feature films and one of Europe’s leading independent film studios, today announces its consolidated income on the 30th September 2007, i.e. for the first half of its 2007/2008 financial year.

Consolidated figures      30th Sept 2007       30th Sept 2006 (€k)
Revenue                         73,582                     33,478
Cost of sales                   (61,875)                   (27,259)
Operating margin           11,707                      6,219
                                       15.9%                       18.6%
Operating income           2,891                         (905)
                                         3.9%                         -2.7%
Financial income            (993)                       (1,006)
Net income (group share) 1,704                   (1,230)
                                           2.3%                       -3.7%

Income in line with Group expectations
H1 revenue for the current FY is up by 120% compared to H1 2006/2007. The Group would nevertheless like to remind one that its revenue is tied to the release schedule of its films in their various distribution channels, and this schedule can result in substancial variations in revenue per segment of activity from one half-year to the next. Revenue and income recorded over one half-year therefore have little bearing on annual revenue and income.

The activity over this half-year period is for the main part video sales (32% of revenue), including in particular the DVD releases Arthur et les Minimoys (Arthur and the Invisibles), Ne Le Dis à Personne (Tell No One) and Taxi 4. Executive production represents 22% of revenue, with the production of Hitman – released the 21st November 2007 in the United States – for Fox, and for which box office totals $21m in just 5 days running in American cinemas. Finally, TV sales represent 20% of revenue and relate to 17 films for which a broadcast window opened during the period.

The ‘cost of sales’ item is made up of the following: 42.6% film amortisation costs, 24.8% executive production costs for Hitman, 22.5% publishing and advertising fees for theatres, video and international sales costs, and 9.2% the payment of royalties. The operating margin is 15.9% without any international film delivered in this half-year. The semester’s financial income is affected by one non-recurring component, the buying back of redeemable warrants for €403K that was implemented just prior to the IPO. The net income therefore amounts to €1.7m (2.3% of revenue).

Investments in line with budgets
Regarding investments, in H1 the Group spent over €45m on 6 films that are currently being produced (against €50m over the entire previous FY), in line with budgets, and thus confirms yet again the financial control it has over its projects. Among these films let us mention in particular the sequels to the Arthur saga, for which the live shoots of the next two films ended late October - in the allotted time; Boomerang, Yann Arthus-Bertrand documentary film; and Staten Island, with Ethan Hawkes.

A solid financial situation
Moreover, on the 30th September 2007, and following the IPO, the Group’s shareholder’s equity amounted to €131.6m. The gross financial debt has been reduced by €18m - bearing in mind the retirement of one third of the 2004 issue of bonds with warrants attached, concomitantly with the IPO. At the end of H1 2007/2008, the Group had a €49.7m cash position.

Outlook
The Group anticipates at least 6 French-Cinema releases during the second semester. Furthermore, the Group is examining the possibility of delaying the distribution of some films that were planned for this financial year in order to ascertain the best release dates for them. Moreover, the International Sales activity will be greater, with in particular the delivery of the international film Taken by Pierre Morel with Liam Neeson, whose presence confirms the Group’s ability to attract recognised international talents. Finally, several high international-potential films with budgets in excess of €20m are currently in the Group’s development stages.

Warner Bros. International Television Distribution (WBITD) is embarking on a new strategy to launch a number of branded, video-on-demand, non-linear channels on a subscription and advertiser supported basis over a variety of delivery platforms that will bring the Studio’s film and television series to viewers around the globe in a new way, it was announced today by Jeffrey R. Schlesinger, President, Warner Bros. International Television. The new channels will be dubbed Warner TV and will build upon the successful linear Warner Channel that has been operating in Latin America for over 10 years. The initiative is intended to create Warner Bros.-branded entertainment destinations that will provide consumers with around-the-clock, on-demand access to top quality programming on services consisting primarily of content produced and distributed by the Studio.

In the UK, Warner TV is available on Virgin Media’s digital cable platform and on BT’s IPTV television service. Warner TV is prominently featured on Virgin Media’s “TV Choice on Demand” and BT’s BT Vision SVOD services, with branded gateways to the service on the first page of the channel listings. The service is available to all on-demand subscribers and is not sold on a separate a la carte basis. Warner TV is the first branded entertainment channel in the UK devoted to TV series programming from a single studio provider and is one of the few branded destinations that is not associated with a linear channel in the UK.

The Warner TV service in the UK features episodes of the following series: the Emmy® Award-winning The West Wing, created by Aaron Sorkin; the acclaimed hit drama Nip/Tuck, starring Dylan Walsh, Julian McMahon and Joely Richardson; The Fresh Prince of Bel-Air, starring Will Smith; pop-culture phenomenon The O.C.; Joey, starring Matt LeBlanc and produced by three executive producers of Friends; sci-fi thriller Babylon 5; drama series Close to Home and comedy “All of Us,” among many others. Additional series to become available throughout the first year include the blockbuster drama ER; the phenomenal hit comedy Friends; the current #1 U.S. television comedy, Two and a Half Men, starring Charlie Sheen, Jon Cryer and Angus T. Jones; action-adventure hit Smallville; acclaimed comedy The New Adventures of Old Christine, starring Emmy® winner Julia Louis-Dreyfus; suspense thriller Supernatural and more.

“We’re thrilled to launch Warner TV in the UK with Virgin and BT as our valued partners in bringing this new branded entertainment service to UK consumers,” said Schlesinger. “We remain committed to finding new and innovative ways to make our programming accessible to viewers at their convenience, and we are excited to continue delivering quality motion pictures and television programs from Warner Bros. to audiences around the world via these branded channels.”

WBITD has previously announced a deal with Japan’s USEN Corporation for a Warner TV channel on USEN’s ad-supported broadband broadcasting service, GyaO. Warner TV launched on GyaO in September, featuring motion pictures including all four Lethal Weapon films and The Island, as well as episodes of the popular television series Friends, ER and The West Wing. More than 100 Warner Bros. titles are scheduled for release on Warner TV on GyaO, as well as via USEN’s SVOD service, GyaO NEXT. This service is available on the open Internet but geo-filtered for Japan only to protect rights holders of the programming outside of Japan. There is no charge to the user of GyaO for viewing the programming. However, it will be viewed with advertising that cannot be skipped.

Additionally, the Studio launched another Warner TV service on the Free IPTV platform in France on a subscription basis. Soft launched in July, this service has already attracted over 25,000 subscribers paying E 5.99 per month for access. This service is a combination of feature films and television series made available after their initial telecast on linear terrestrial broadcasters.

A second deal has also been closed in France with Orange, which will see a series-based Warner TV zone launched on their IPTV television on-demand service later this year.

According to Schlesinger, “We also plan to announce a number of other branded SVOD, AVOD and linear channels in a variety of countries during the upcoming months. Many of these negotiations are in final stages and will be completed shortly. We feel these new services will be a compelling offering for digital cable platforms, IPTV operators and broadband aggregators looking for high-quality programming with a world-class entertainment brand. The fact that in most countries outside Latin America there is not a Warner linear channel makes this offering even more appealing as it will be viewed as something new and distinct by subscribers and viewers.”

The launch of these channels follows the long-term success of the Warner Channel in Latin America, a linear branded programming service delivering movies, television series, animation and more to more than 20 countries throughout Latin America. Programming available via Warner Channel includes current TV series Without a Trace, Two and a Half Men, ER, Gossip Girl, Chuck, Smallville, Supernatural and The New Adventures of Old Christine, among others; library series including Friends, The West Wing and The O.C., among others; and feature films including Se7en and Interview with the Vampire, among many others.

About Warner Bros. International Television Distribution
Warner Bros. International Television Distribution is one of the world’s largest distributors of feature films, television programs and animation to the international television marketplace (broadcast, pay cable, basic cable, satellite, pay-per-view, video-on-demand, digital platforms, etc.). It licenses some 50,000 hours of programming (including more than 6,000 ‎features and 74 current series), dubbed or subtitled in more than 40 ‎languages, to telecasters and cablecasters in more than 175 countries.