The sky is getting cloudy in Le Havre for the audiovisual world. While Unifrance is organizing this week in the Normandy port the 30th edition of the “Rendez-vous”, the largest market in the world dedicated to French audiovisual programs (which was previously held in Biarritz), the sector is evolving in a context full of uncertainties, which is already weighing on export performances.
According to the 2023 report on the export of French audiovisual programs unveiled this Tuesday by Unifrance and the National Center for Cinema (CNC), international sales are shrinking, to 203 million in 2023, compared to 215 million euros in 2022, a record year (a decrease of 5.3%). “An excellent performance given the difficult international context” nevertheless welcomes Unifrance, which points out that the threshold of 200 million euros has only been exceeded three times in 30 years.
Impact of inflation
Market conditions have changed since 2022, the year of the post-Covid rebound. “The economic and geopolitical situation encourages broadcasters to take fewer risks,” observes Sarah Hemar, director of audiovisual at Unifrance. In 2023, major American broadcasters and platforms suffered in particular from the strikes in Hollywood and the impact of inflation on the value chain.
Success in fiction
Some groups, such as Warner or Paramount, are experiencing difficulties related to the transition of their model from traditional television to streaming. Streamers, for their part, have prioritized the search for profitability and tightened their investments, with more targeted acquisitions, local or regional, notes Unifrance, rather than purchases of global rights. Large public broadcasters have also suffered from budget cuts.
As a result, acquisition budgets have generally been reduced. Some markets, such as Russia, have also virtually closed. Professionals have nevertheless been able to adapt. “There is great resilience among French audiovisual distributors, who have always been multi-broadcasters,” says Daniela Elstner, CEO of Unifrance.
Including sales, pre-sales and co-production, the export flow reached 309 million euros, down slightly by 3.3% compared to 2022. This is the lowest level in the last five years, although it remains in line with the ten-year average (-1.7%). In detail, pre-sales fell by 35.6% over one year (to 33 million euros), in particular due to the impact of the SMA directive which pushed platforms to invest directly instead of pre-purchasing. Co-production contributions compensated for this decline by increasing by 34.5% (to 73 million euros).
Animation suffers
For the second year in a row, fiction is the best-selling genre, ahead of animation and documentaries. Procedural series (“Astrid et Raphaëlle”, which is doing very well in Japan, “Candice Renoir”, “Tropiques Criminels”…), historical fiction (“Marie-Antoinette”) and certain hits like “HPI”, which will soon be adapted in the United States, or “Le Bazar de la charité” continue to find a large international audience. “In this context of risk-averseness, many broadcasters are turning to safe bets, or “IP” for “intellectual property” in the sector’s jargon”, observes Sarah Hemar.
The same is true in documentaries, with the “Apocalypse” saga, or in animation (“SamSam”, “Grizzy and the Lemmings”, etc.). Traditionally a driving force for export, animation is suffering (-11.2% compared to 2022, fourth consecutive year of decline), in particular due to lower investments by platforms. “It’s a very cyclical sector, we hope to be at the bottom of the cycle and restart,” says Sarah Hemar.
Regarding the current financial year, it is too early to identify trends. “We are entering the last part of the year, which is favourable for sales to chains. The last four months are very important,” recalls Daniela Elstner, stressing the key role, in this context, of the “Rendez-vous” in Le Havre. The sector’s concerns are tangible and decision-making is slower.
In Le Havre, the appointment books are nevertheless full, as they were last year. “The appeal is still there,” reassures Sarah Hemar.