Canal Plus has reportedly filed a formal complaint with the Commercial
Court of Paris against French commercial network TF1 and TF1
Distribution over a carriage agreement which expires today (February
28th) and where no agreement has been reached as to an extension.
In 2016 TF1 Group asked satellite and other distributors for carriage
fees. Previously, Canal Plus and the other resellers had provided
carriage without fees. While initially refusing to discuss payments,
more recently the operators have said they were prepared to negotiate
carriage fees.
TF1 has already highlighted a new “TF1 Premium” service which carries
additional material for satellite and cable distributors. SFR and
Bouygues Telecom have agreed to pay carriage fees.
Media analysts at investment bank Exane/BNPP, in a note to investors,
say: “Canal is not the first player to challenge TF1’s decision. Recent
press reports suggest that Orange and Iliad are not ready to change
their stance. However, this saga is now well known and we do not have in
our TF1 P&L any retransmission fees from Orange nor Iliad (still in
negotiation), yet we added €25 million net profit coming from Orange
and Iliad in our 2019 [calculations]. That said, we also don’t have
either any shortfall in advertising that could arise from a less
favourable outcome of the discussions. TF1 takes the risk of ceding
audience share if they prevent Orange and Canal subs to access TF1
channels.”
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