The group of pay-tv will offer more flexibility to its subscribers. Without waiving its positioning as ” high-end “.
This is not the big bang, but it is a significant change to the scale of Canal+. Since its inception in 1984, the group had few changes to its model, waterproof to dramatic changes in the market. He proposed two formulas of subscription to Canal+ (€40) and/or bouquet CanalSat (€25), with a firm commitment of twelve months automatically renewed.
The model had come to appear rigid. New entrants, such as BeIN Sports or Netflix, have installed cheaper prices and flexibility. Attacked, Canal+ has seen its base shrinking in metropolitan France, losing several hundreds of thousands of customers. He had 5,45 million subscribers at 30 June.
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After having tried various responses, including judicial, Canal+ has finally accepted the idea to evolve the model and ” break a number of taboos “, as recognized by its director general, Maxime Saada, during a presentation Thursday, October 13. These taboo are the historical pillars of Canal+ : the price, the commitment, the uniqueness of the offer and the mode of distribution. All will change from 15 November. the ” Canal+ has more changed its offer in the last six months that over the previous ten years “, summarizes Charles Bedouelle, analyst at Exane BNP Paribas.
A base attractive, and three options
First change : the “front door” of the universe Channel+ becomes a bit more accessible, with an offer at 19.90 euros. It allows access to the canal+ Channel, in the service of catch-up “Channel on demand” and the application MyCanal, or on all screens with a commitment of twenty-four months (to engage only twelve months, it is necessary to pay 5 euros more), or without obligation, but only on PC, mobile and tablet.
This level at 19.90 euros is as much a tool defensive than offensive. Subscribers old wanting to go, it allows to offer a less expensive, even if impoverished, close to the price of retention currently operated by Canal+. For people who are thinking about subscribing, the price is more attractive than the current offerings, and the option “without commitment” can experiment with freely.
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This first level of subscription, ” The Essential “, is also the base of all the other offers. You can’t not have it. Except to opt for its enriched version, ” The Essential family “, 29,90€, including 57 channels that are currently consolidated in CanalSat – the check mark disappears, and all offers are grouped under the single name ” Channel “. It will not be possible to access to only the CanalSat channels for € 25 per month.
beyond the base, the model becomes the map. Three options are proposed : the strings ” sport “, the strings ” cinema-series “, the Canal+ channels. For 30 euros more, the first allows access to the entirety of the sport currently offered on television, except LICO Sport (including Canal+ Sport, beIN Sports and Eurosport). The big consumer of sport can, therefore, access to a quasi-integral for 49,90 euros, which is high, but less expensive than the sum of the unit prices of these strings.
A full version is available at 99 euros per month
By adding € 20 to the base, the subscriber can afford a pack “drive-in” series that promises 6 000 films and 300 series per year, based on OCS, Disney, Cinema, or TCM Cinema. Finally, for 15 euros, one can access the Canal+ channels were not present in the base (Cinema, Sport, Series and Family). This allows in fact to reconstruct the bouquet+ Channel current for 34,90 euros, or a price a little lower. Finally, the option “full” (” Essential family ” + packs Canal+, ciné-series, and sport) is offered at 99 euros.
“+ Channel responds to both two tensions, decrypts Mr. Bedouelle. in on the one hand he wants to give a chance to those who want to leave the Channel of stay, improving their offers or lowering their subscription prices. On the other, it intends to propose to those who have never tried Channel test without the entry ticket is too high. “
The analyst is pointing at two potential limitations in the new offerings : the risk that current subscribers to 40 euros opt for the base at 19.90 euros all by subscribing in parallel to beIn Sports only, to 14 euros. This is to limit the risk that Channel has started to move the athletic programs of the channel Canal+ to Canal+ Sport.
Another possible pitfall : the character little incentive from the total supply, 99 euros, which does not offer real savings to households that want to – and can – all-afford. Canal+ responded that they are also proposing a second decoder and a customer service ” premium “.
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A ” problem of content “, not ” price “
This example is emblematic of a strategy which, finally, is above all not to lower the value of the bids, while providing a door of entry less prohibitive. Mr. Bédouelle explains that Channel tries so much to conquer as to ” to cement its subscriber base “. It recalls that any player who migrates to a more general public fear of the ” spin down “ : for a new subscriber conquered at 15 euros, the other three go from 40 to 15 euros, and the operation is losing overall. Canal wanted to avoid this scenario.
” Some customers have told us that their problem was not the price but the contents of their subscription, explained Thursday, Frank Cadoret, head of the distribution. If they were sports fans, they said they were frustrated. We have now with the offer "sport" a response to them. “
The hope is to break, the exodus of subscribers, the number of which is anticipated to be $ 5.2 million in the end of the year. But also increase the average profitability per subscriber, which is traditionally high in Canal+. the ” It’s not all that to bring down the ARPU [the average revenue per subscriber] “, has released Mr. Cadoret. A sign that it is not a question of selling out of the offers, but to increase the flexibility of the model to better adapt to different profiles of customers : ” managing subscriptions, we will manage the subscribers. “
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