French pay-TV group Canal Plus expects its new package of channels to attract over 1 million subscribers in Vietnam by 2012.

The firm, which is now pursuing several overseas regions due to slower subscriptions in France, expects to launch the new channels in Vietnam buy the end of the year.

“We have several other advanced projects, but not as symbolic as this one,” Canal Plus head Bertrand Meheut said after a press conference on Monday.

Canal Plus Groupe will hold 49 percent of the joint satellite TV venture – versus 51 percent for VCTV, a unit of VTV – but operations will be run by the Canal Overseas unit.

Meheut estimated that Canal Plus had invested around US$50 million in such expansions, with the goal of breaking even after two years of operations.

“Vietnam is one of the most dynamic countries in Southeast Asia, even during this difficult period,” the variety.com website quoted Meheut as saying.

The country has 22 million households, of which 97 percent have at least one television. But less than 8 percent of these subscribe to a pay -TV channel, according to research by Canal Plus.

VCTV currently operates around 20 channels. Canal Plus and VCTV aim to raise this number to 60, the variety.com website said, citing Canal Overseas Chairman Jean-Noel Tronc.

The new channels still have to be decided on. The 60 channel mix will feature both local and international services, it added.

Canal Plus has over two million subscribers and makes 20 percent of its total sales outside France. The group saw its total number of subscribers in France drift to 10.4 million at the end of March, compared to 10.6 million at the end of December. The company sees only “slight growth in 2009.”

VCTV currently has about 180,000 subscribers, according to its website.

The Canal Plus-VTV venture will be based in Hanoi, with technical centers in Vinh Yen, a report published on the Hollywoodreporter.com website said. The new Franco-Vietnamese holding will house 30 employees for the launch, and Canal Plus plans to expand to 200 by 2010.

Source: TN, Reuters