The two groups did not reach an agreement on the distribution contract which expired on August 31. TF1 loses 12% to 15% of its audience.
Three days before the start of the hearings before the college of the competition authority on the TF1-M6 merger project, Canal+ begins a showdown with the TF1 group. The challenge ? The distribution contract for TF1 group channels and services (TF1, TMC, LCI, TFX, TF1 Série Film, and replay on MyTF1). This contract expiring on August 31 at midnight and in the absence of a new agreement, Canal+ has decided to drop a black screen on the channels of the TF1 group for its 5.4 million subscribers. “Faced with these unfounded and unreasonable demands for channels which are accessible free of charge for all and which must remain so, the Canal+ group, a long-standing partner of the TF1 Group, is forced to give up broadcasting these channels in metropolitan France”Canal+ said in a statement.
The consequences are significant. On the one hand, the TF1 group is immediately deprived of 12 to 15% of its audience, because 5.4 million Canal+ customers can no longer access the channels. On the other hand, the Canal+ group risks dissatisfying its own customers who are heavy consumers of the TF1 group’s channels.
Price increase in question
Canal+ explains that the TF1 group was asking for an increase of nearly 50% for the distribution of TF1 channels compared to the contract signed in 2018, the amount of which was around ten million euros per year. The TF1 group estimates, for its part, that the increase requested is very far from 50% and would rather be around 10%. In detail, the TF1 group offers a Basic service including the distribution of its channels and replay reduced from 14 days to 7 days, but also an optional Replay Max service equivalent to TF1Max offered at 2.99 euros per month for individuals. .
The TF1 group emphasizes that these new price offers are the same for all distributors. They were accepted by Orange at the end of 2020, by Bouygues Telecom, SFR and even Free in the spring of 2021 and finally by Molotov. He is therefore surprised that only the Canal+ group refuses them.
The precedent of 2018
This isn’t the first time the two bands have fought like junkies over distribution deals. In November 2018, Canal+ had already cut the signals of TF1 channels. It was the audiovisual regulator Arcom (ex CSA) who had to play the good offices to restore the antennas. At the time, the regulator intervened because Canal+ had cut off all the signals, even that of TNT Sat, which broadcasts DTT channels in white areas. However, the law provides for an obligation to broadcast in these white areas. This again is the case today. Friday morning, the TNT Sat service was cut.
Since that date, fire has smoldered between distributors and TV channels. All it takes is a spark to relight it. Last week the distributor Orange decided to no longer broadcast the regional channels of BFMTV in Paris, Lyon, ToulonVar and the Norman Channel (LCN). The Altice group, parent company of BFMTV, wanted to make the operator pay for these channels previously included free of charge in the distribution agreements.
Revenue of 60 million euros
For a group like TF1, having its channels distributed by operators is crucial. On the one hand, this represents a very large share of its audience because nearly 20 million French people receive the channels via telecom operators and Canal+. On the other hand, the distribution contracts bring in around 60 million euros to the TF1 group, a significant financial windfall.
In the context of the TF1-M6 merger, the Bouygues group proposed to the competition authority a remedy relating to distribution contracts. It proposes that contracts generally lasting 4 years, extendable by 1 year by distributors, can still be extended under the same conditions for an additional year.
Throughout the weekend, Canal + and TF1 say they are open to discussions to find an arrangement. But, it seems that the black screen could last until Monday …. date of the opening of the auditions at the ADLC. The Canal+ group will be heard by the college on Tuesday September 6 at 10 a.m.
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