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INDUSTRY France

Tension rises between Canal + and internet service providers

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The traditional crossroads of important debates affecting French film industry professionals, the Dijon Film Meetings were held last weekend by ARP (Civil Society of Authors-Directors-Producers).

At the event Canal +, the main financier of French films, expressed its strong feelings about change in the sector through its Assistant Director General Rodolphe Belmer. Belmer spoke out about the increasing influence of Internet and, in particular, television via ADSL, which is destabilising the balance of the current system by currently escaping all reglementation.

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"Television represents about 50% of the film economy and is a fundamental element in the financing of the cultural exception," said Belmer who thinks that "the whole system needs to be reviewed". Describing the recent suggestions of viewing for €1 on Video On Demand (films are broadcast on VOD only 33 weeks after their theatrical release, a delay still well respected although the initial agreement signed by access providers was not renewed) for Azur & Asmar [+see also:
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, the assistant general director of Canal + (the outfit has exclusive distribution rights in the first window on pay TV 12 months after theatrical release) thinks that "the economy of the sector is based on the prosperity of watertight windows".

This media chronology, negotiated by professionals and which begins with cinemas before DVD release (six months after), VOD, pay TV and public broadcasters (24 months after) has “for the first time been given a pounding by technology and VOD". This puts television channel resources under pressure (especially advertising) on which the system of pre-financing of French cinema is founded. In 2006, funding by Canal + for the pre-sales of 125 French registered features was €138m in addition to €23m from TPS and Ciné Cinéma.

Calling for a closure of the VOD window while those on various television channels are opening, the worries of Canal + were heard by the Minister of Culture and the CNC Director General present in Dijon. Negotiations are now underway behind the scenes. However, the position of Internet Access Providers does not leave hope for easy discussions since providers are calling for on their side a window opening more quickly and closing only some months, not to mention a larger opening to the film catalogues. A power struggle is expected with the stake of the evolution and the durability of the French film financing model. To be continued.

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(Translated from French)

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