Vivendi CEO 'Has No Clue' How Slump May Affect Biz

Via Reuters

The chief executive of Europe's largest entertainment group Vivendi is cautious on prospects and monitoring costs because he had "no clue" how the downturn would affect his different divisions.

Speaking at an Ofcom International conference in London today (Nov. 21), Jean-Bernard Levy was asked in which areas of the business he was optimistic and in which he saw the most risk.

"I have no clue how to answer your question," he said with a smile. "Some people tell me this will generate consumer spending. Some people show me market surveys explaining that entertainment as a whole has become as essential as food or health.

"Some people say that especially the kind of digital entertainment which we are in, is quite cheap.

"But because I don't know we have to be very cautious. We are going to control the cost within the company and hopefully because the products [and] the content will be good we will be rewarded and not hit too much by this recession. But I would be very bold to tell you we are immune."

Levy said he had still not seen any signs of a downturn at Vivendi, parent company of Universal Music Group, but was making sure they were prepared if it did happen. Vivendi also has interests in games, TV and telecoms.

He also said he was watching France Telecom's push into providing more movies and programmes and said the rules needed to be equal for all.

"As France Telecom is the very dominant player, as the incumbent operator in France, there is of course a big risk that the rules would be biased and we will be watching that very closely," he said.