The strategy

Federation of producers

Thanks to the single group culture which allows producers to focus on the creative aspect of their work while benefiting from the advantages of a large group, Carrere brings together people of consequence from all over the audiovisual world.

By acquiring 51% of a company, Carrere Group does not purchase that company, Carrere becomes its partner. The Group keeps the motivation and loyalty of the subsidiaries by only acquiring half the capital, the remainder being held by the minority stakeholder. The risk of the pre-eminent producer of one of the Group’s subsidiaries leaving his job following such acquisition is limited. He is obliged to follow the company’s orders for a specified period as stipulated in his contract, but above all because of the financial interest which still binds him. It is therefore in the interest of the subsidiary’s producer to work for the success of the new unit.

In the past Carrere Group has demonstrated its ability to integrate production companies by improving the operating performance of the new integrated company based on the pooling of resources and a global strategic effort. To date the Group has already integrated eighteen companies or groups of companies.

This new structure increases the Group’s production potential and brings new catalogues to the common distribution organisation, which in turn benefits from a more extensive offering. Thanks to the synergies this creates, each acquired subsidiary is more productive and by joining the group, the partner producer can focus on purely artistic tasks.

The integrated companies benefit from the Group’s critical mass and its abilities in terms of creating opportunities, both at financial level and at commercial and operational level. With structural costs reduced thanks to management tools and procedures (accounts, human resources, legal department and management control), the company becomes more profitable.

Diversification

Diversification of programmes :
Carrere Group has diversified into several areas of activity, therebly reducing its dependency on the economic cycles of a specific program. The Group is active in different types of audiovisual programmes: drama (TV series, TV movies), animation (cartoons and animation films) and TV shows (talk shows, reality TV, magazine shows, documentaries, short programmes, etc.). In addition to this diversified production, the Group is active in merchandising, communication and advertising.

Diversification of holdings :
Carrere Group has developed a varied portfolio of productions through its many holdings in companies with different specialities. For example, within the TV show segment alone, the Group has assembled companies specialising in reportage (Productions Tony Comiti, Point du Jour), production companies specialising in arts (Guillaume Durand Productions, RIFF International), production companies specialising in entertainment (B3Com, 2FProd, Kalisté), a production company specialising in cable and satellite entertainment (Morgane, O’ Productions) and a production company specialising in short programmes (Sacha Production).

Diversification of financial flows :
The Group also benefits from complementarity in terms of financial flows from two types of production: production of stock programmes and production of TV shows. The production of stock programmes (drama, animation, documentary) is essential in order to create an up to date, varied catalogue of a critical size. This type of production requires large cash reserves and working capital. On the other hand, these productions build up the catalogue which, in addition to distribution commissions and producer shares of net income, generates very high margins. Unlike the production of stock programmes, TV show production generates a very good cash flow but does not create a catalogue of broadcasting rights.