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Previous: SEAGRAM CO LTD, 425, 2000-10-13 |
Next: SEAGRAM CO LTD, 425, 2000-10-13 |
Filed by Vivendi
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: The Seagram Company Ltd.
Commission File No. 1-2275
and
Subject Company: Canal Plus S.A.
Commission File No. 82-2270
October 13, 2000
BRUCE HACK
Vice Chairman
Universal Music Group
[VIVENDI UNIVERSAL LOGO]
<PAGE>
IMPORTANT LEGAL DISCLAIMER
- These documents contain forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These statements are based on management's current
expectations or beliefs and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. The forward-looking
statements contained in these documents address the following subjects:
expected date of closing the merger; future financial and operating
results; and timing and benefits of the merger. The following factors,
among others, could cause actual results to differ materially from those
described in the forward-looking statements: the risk that the Vivendi,
Canal+'s and Seagram's businesses will not be integrated successfully;
costs related to the merger; failure of the Vivendi, Canal+ or Seagram's
stockholders to approve the merger; inability to further identify, develop
and achieve success for new products, services and technologies; increased
competition and its effect on pricing, spending, third-party relationships
and revenues; inability to establish and maintain relationships with
commerce, advertising, marketing, technology, and content providers.
Investors and security holders are urged to read the joint proxy
statement/prospectus regarding the business combination transaction
referenced in the foregoing information, when it becomes available, because
it will contain important information. The joint proxy statement/prospectus
will be filed with the Securities and Exchange Commission by Vivendi,
Canal+ and Seagram. Investors and security holders may obtain a free copy
of the joint proxy statement/prospectus (when it is available) and other
documents filed by Vivendi, Canal+ and Seagram with the Commission at the
Commission's web site at www.sec.gov. The joint proxy statement/prospectus
and these other documents may also be obtained for free from Vivendi,
Canal+ and Seagram. Information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests, by
security holdings or otherwise, is contained in the joint press release
relating to the transaction filed with the Commission by each of Vivendi
and Seagram, on June 20, 2000.
[VIVENDI UNIVERSAL LOGO]
<PAGE>
AGENDA
- Digital music opportunity
- UMG digital strategy
- Merger synergies
[VIVENDI UNIVERSAL LOGO]
<PAGE>
GLOBAL INTERNET PENETRATION
USERS IN MILLIONS
<TABLE>
<CAPTION>
1999 2005
<S> <C> <C>
Digital TV 15 100
WAP & 3G Mobile 0 300
Internet PC 140 300
Console Games 0 45
</TABLE>
Source: Broker Research [VIVENDI UNIVERSAL LOGO]
<PAGE>
DIGITAL OPPORTUNITIES
<TABLE>
<CAPTION>
SALES/
PRODUCT MARKETING DISTRIBUTION
------- --------- -------------
<S> <C> <C> <C>
CD Radio Retail Stores
Physical TV Online
Print
e-Singles Viral Digital TV
Digital Subscription Grassroots PC
Streaming
Portal Wireless
Locked Marketing
Content
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
DIGITAL MUSIC OPPORTUNITIES
Wireless
PCs Portals
Products Channels
Services
Artists TVs
PDAs
Music Kiosks
[VIVENDI UNIVERSAL LOGO]
<PAGE>
DIGITAL MUSIC THREATS
PIRACY
DISINTERMEDIATION
MARGIN PRESSURE
[VIVENDI UNIVERSAL LOGO]
<PAGE>
STRATEGY TO CAPTURE DIGITAL OPPORTUNITY
THREE APPROACHES
#1 Government and Copyright Law
Legal Framework Litigation
#2 Technology Standards SDMI
Business Partners
#3 Commercial Activities New Businesses
[VIVENDI UNIVERSAL LOGO]
<PAGE>
LEGAL EFFORTS TO PROTECT COPYRIGHTS
<TABLE>
<CAPTION>
CASE
US LEGAL ACTION RESULTS
<S> <C> <C>
MP3.com Major record companies Summary judgment in labels'
sued MP3.com favor. Four labels settle and
license in content. UMG
litigates through damages
phase and is awarded $25,000
per infringed CD.
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
LEGAL EFFORTS TO PROTECT COPYRIGHTS
<TABLE>
<CAPTION>
CASE
US LEGAL ACTION RESULTS
<S> <C> <C>
Napster Major record companies Injunction granted against
sued Napster service. 9th Circuit stayed
injunction pending review.
Europe Hit Box sued AOL
AOL found liable for users
AOL swapping pirated music on its
Germany service.
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
CONTENT PROTECTION
MUSIC INDUSTRY ROADMAP
[CONTENT VEHICLE GRAPHIC]
CD content protection roadmap Sep00
[VIVENDI UNIVERSAL LOGO]
<PAGE>
WATERMARK TECHNOLOGY
HOW IT WORKS
CD with Watermark
[GRAPHIC] Compress to MP3 SDMI-compliant player content
(screen for watermark) rejected
[GRAPHIC] Compress to MP3 SDMI-compliant player bind content
(detect legacy content) to PC
CD without Watermark
(legacy CD)
CD content protection roadmap Sep00 [VIVENDI UNIVERSAL LOGO]
<PAGE>
NEW BUSINESS OPPORTUNITIES
PRODUCTS AGGREGATION SERVICES
CDs
DVD
CD2
Locked Content
Downloads
Streams
Music Programs
Subscription
Lockers
Jukeboxes
Portals
Channels
[VIVENDI UNIVERSAL LOGO]
<PAGE>
US ONLINE MUSIC FORECAST
(BILLIONS)
----------
$6
$4
$2
0 1999 2000 2001 2002 2003 2004 2005
<TABLE>
<CAPTION>
2000 2002 2004
---- ---- ----
<S> <C> <C> <C>
Forrester Research $1.4 $3.2 $4.3
Jupiter Communications $0.8 $2.3 $4.2
</TABLE>
[VIVENDI UNIVERSAL LOGO]
<PAGE>
BLUEMATTER - DOWNLOADS
CONSUMER ADVANTAGES
- Legal
- Multimedia
- High Quality Music
- Links
- Easy to Find
- Quality, Security, Privacy
- Customer Care
- Multi-access
[VIVENDI UNIVERSAL LOGO]
<PAGE>
BLUEMATTER (Arrow Graphics) CONSUMER
Download PC
Locked Mobile
[BLUEMATTER Content Phone
GRAPHIC]
Subscription Set Top
Portals Kiosks
[VIVENDI UNIVERSAL LOGO]
<PAGE>
LOCKED CONTENT ON CD
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
THE MOTOWN STORE
Music and Associated
Content
[CD LOGO]
[LOGO] Locked
on a CD
[VIVENDI UNIVERSAL LOGO]
<PAGE>
BLUEMATTER - LOCKED CONTENT
Consumer Advantages
- All of the benefits of downloads
- Plus greater:
- Convenience
- Speed
[VIVENDI UNIVERSAL LOGO]
<PAGE>
BROADBAND
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
FARMCLUB.COM
#1 Record Label
#2 TV Program
#3 Web Community
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[GRAPHICS]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[GRAPHIC] [GRAPHIC]
Limp Bizkit 98(DEGREES)
[GRAPHIC] [GRAPHIC]
Eminem Dr. Dre
[VIVENDI UNIVERSAL LOGO]
<PAGE>
US DIGITAL MUSIC MARKET
Jupiter Projection - 2005
[PIE CHART]
a la carte Subscription
Downloads (65%)
(35%)
[VIVENDI UNIVERSAL LOGO]
<PAGE>
STREAMING BASED SUBSCRIPTIONS
Consumer Advantages
- Most of the benefits of downloads
- Plus greater:
- Convenience
- Variety
- Speed
- Simplicity
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[SONY LOGO] [UNIVERSAL LOGO]
[VIVENDI UNIVERSAL LOGO]
<PAGE>
DISINTERMEDIATION
"Music Companies Will Become
More Relevant to Artists"
Today + Tomorrow
----- --------
Support Marketing
A & R New Business
Marketing Security
[VIVENDI UNIVERSAL LOGO]
<PAGE>
MARGIN EROSION
"MARGINS WILL REMAIN HEALTHY"
Lower Costs
Pricing Direct to Consumers
Value Added Offerings
[VIVENDI UNIVERSAL LOGO]
<PAGE>
DIGITAL MUSIC OPPORTUNITIES
Wireless
Products
PCs Services Artists Portals TVs
Channels
Music
PDAs Kiosks
[VIVENDI UNIVERSAL LOGO]
<PAGE>
MERGER BENEFITS FOR UMG
- New business development
- Greater speed
- Lower cost
- Higher effectiveness
[VIVENDI UNIVERSAL LOGO]
<PAGE>
UMG [ARROW GRAPHIC] VIZZAVI LAUNCH
ASSETS
- UMG:
- ARTISTS
- E-BUSINESSES
- E-COMMERCE
- MUSIC SITES
- VIZZAVI
- MUSIC CHANNEL
SYNERGIES
- UMG
- DOWNLOADS
- SUBSCRIPTIONS
- E-COMMERCE
- PROMOTIONS
- VIZZAVI
- RAMP-UP
- CUSTOMER COSTS
- CONTENT COSTS
[VIVENDI UNIVERSAL LOGO]
<PAGE>
SELECTED MERGER SYNERGIES IN MUSIC - I
- Downloads and subscriptions to vizzavi on PC
- Downloads transported via memory card to SFR mobile phones
- Downloads and subscriptions delivered wirelessly to vizzavi and SFR mobile
phones
- Extension to Canal+
- Completion of multi-access and peer-to-peer system
[VIVENDI UNIVERSAL LOGO]
<PAGE>
UMG [ARROW GRAPHIC] VIZZAVI LAUNCH
FINANCIAL BENEFITS
SUBSCRIPTIONS - FOR EACH
500K CUSTOMERS > EUROS 15/MONTH > EUROS 23M EBITDA AT UMG
CDS - RULE OF THUMB
100K PURCHASES > EUROS 10/CD > EUROS 1M EBITDA AT UMG
VIZZAVI - RAMP UP
3 MONTHS FASTER > EUROS 17M REVENUE IN 2001 AT VIZZAVI
[VIVENDI UNIVERSAL LOGO]
<PAGE>
SELECTED MERGER SYNERGIES IN MUSIC - II
Locked content
- In SFR subscription kits
- On vizzavi CD's
- On Canal set top boxes
- By direct mailings
[VIVENDI UNIVERSAL LOGO]
<PAGE>
LOCKED CONTENT [ARROW GRAPHIC] SFR, VIZZAVI, CANAL+
FINANCIAL BENEFITS
CDS AND DVDS - FOR EACH
50M UNITS > 4% RESPONSE > EUROS 10M EBITDA AT UMG
BASED ON OFFERING > INCREMENTAL EBITDA AT SFR, VIZZAVI, CANAL+
[VIVENDI UNIVERSAL LOGO]
<PAGE>
UMG [ARROW GRAPHIC] SFR Offering
ASSETS
- UMG
- UNIVERSAL BRAND
- MUSICAL CONTENT
- SFR
- WIRELESS NETWORK
- DISTRIBUTION
SYNERGIES
- UMG
- DOWNLOADS
- SUBSCRIPTIONS
- PROMOTIONS
- SFR
- CUSTOMERS
- ARPU
- CUSTOMER COSTS
[VIVENDI UNIVERSAL LOGO]
<PAGE>
UMG [ARROW GRAPHIC] SFR OFFERING
FINANCIAL BENEFITS
SFR SUBSCRIBERS - FOR EACH
150K SUBSCRIBERS > EUROS 175/YR > EUROS 25M EBITDA AT SFR
UMG FRANCE MARKET SHARE
1 SHARE POINT= EUROS 5M EBITDA FOR UMG
[VIVENDI UNIVERSAL LOGO]
<PAGE>
SELECTED MERGER SYNERGIES IN MUSIC - III
Portals
- Roll-out in UK, France and Germany on vizzavi
- "Tailoring" and roll-out in other European markets
[VIVENDI UNIVERSAL LOGO]
<PAGE>
SELECTED MERGER SYNERGIES IN MUSIC - IV
- vizzavi ISP on Universal Music CD's
- GetMusic & FarmClub: vizzavi music service
- UMG content in Vivendi products
[VIVENDI UNIVERSAL LOGO]
<PAGE>
SELECTED MERGER SYNERGIES IN MUSIC - V
- Internet Investment Program
- Global Brand Management
- Multi-content Kiosks
- Music and:
Education
Flipside
Sports
[VIVENDI UNIVERSAL LOGO]
<PAGE>
LARRY KENSWIL
President, eLabs
Universal Music Group
[VIVENDI UNIVERSAL LOGO]
<PAGE>
JIMMY IOVINE
Co-Chairman, Interscope Geffen A&M
Chairman & CEO, Farmclub.com
[VIVENDI UNIVERSAL LOGO]
<PAGE>
[VIVENDI UNIVERSAL LOGO]
[VIVENDI UNIVERSAL LOGO]
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