Vivendi calls Apple iTunes contract terms "indecent"

Separately, Levy said Vivendi expects the profitability of its pay-TV group Canal Plus to improve in 2007, excluding restructuring costs.

"We hope to generate, excluding restructuring costs, an EBIT margin of above 7 percent this year" at Canal Plus, Levy said.

In 2006, Canal Plus's earnings before interest and taxation (EBIT) reached between 4 and 5 percent of revenue, on a comparable basis excluding restructuring costs.

Levy said Canal Plus aimed to reach an operating margin of 20 percent by 2010, matching the level of British rivals and narrowing the gap with U.S. peers with margins near 30 percent.

"To get there, we need savings and particularly in (TV) content," Levy said, adding that Canal Plus planned to cut 200 to 250 million euros in TV content costs, which now hovered around 2 billion euros annually.

But Levy acknowledged that competition for good TV content such as film or sports rights remained high, particularly against new entrants such as France Telecom which he described as a "semi-public company" with deep pockets.

Vivendi shares closed down 1.2 percent at 29.74 euros.