17/07/2003

The treasure chest of French cinema is giving film producers the cold sweats. Since 2002, French pay-TV, Canal+ , has been gradually been cutting back on the pre-acquisition of films and now, according to an article published on 16 July in one of France’s top selling daily papers, Le Figaro, it intends bartering extra airings for films for acquisitions of new films. This move puts producers in a very delicate position with respect to their relationship with other Gallic TV networks.

Currently, Canal+ has the right to air the films they purchase 28 times and fully one year after their first theatrical release. In return, the pay-TV invests 9 per cent of its annual turnover in film production : €122m in 2002 for 109 titles.
Around a fortnight ago, Canal+ asked producers to green light 28 additional airings to take place during the second year after the film’s theatrical release. The total 56 airings is a source of huge embarrassment to producers, whose very survival depends largely on their ability to sell their productions to C+, at the same time producers welcome offers to air the same films on French terrestrial TV (FranceTélévisions, TF1, M6). However, the saturation offered by Canal+ means that the level of interest shown by its terrestrial counterparts in the same titles will be drastically reduced.

Canal + took advantage of a judicial loophole when they signed the new broadcast deal with French film industry associations (BLIC, BLOC and ARP). Taken unawares, these same associations have accused Canal+ of abusing its dominant market position and are threatening to report it to the French authority for fair competition. As far as Canal+ is concerned, the new deal will prove strategically important when the time comes to renegotiate its contracts with the French film industry, scheduled to expire in 2004.

(Translated from French)