Netflix, Max and Prime Video Negotiate With French Film Guilds for Earlier Access to New Releases After Disney+ Deal

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Netflix, Max (Hulu), and Amazon Prime Video are actively discussing with French film unions to secure early rights for recently premiered cinema films. This is a broader effort across the industry aimed at modernizing France’s distribution regulations.

The rules regarding the timing of content broadcast in France apply to both domestic and international streamers, traditional free-to-air and pay-TV networks, and dictate the order of rights for each participant. This position within the broadcast schedule depends on the level of investment in local content, a system that has fostered growth in French film production. Consequently, over the past few years, streaming services, which invest less in French films, have had to wait between 15 to 17 months after a movie’s premiere before offering it on their platforms, while pay-TV network Canal+ has been granted a six-month advantage.

Last week, Disney+, which previously kept its content within the streaming window for 17 months, broke the record among all streaming platforms by striking a deal with local film unions to reduce it down to nine months. This move comes after Disney+ pledged to allocate 25% of its annual earnings in France towards producing local content (approximately €40 million annually), including 70 films that will be released in theaters. Under this agreement, Disney+ gains access to new releases six months before Netflix and eight months ahead of Max, Prime Video, and Apple – all of which have recently entered into similar deals with unions as well.

“An industry expert commented that it’s notable Disney+ intends to allocate a substantial chunk of its 25% investment commitment towards theatrical films, demonstrating their confidence in our film sector and robust cinema market. Specifically, they will set aside 12.5% of this 25% for films during the first year of the contract. Disney discovered, through some trials, that a cinematic experience remains crucial for launching movies, which aligns with the belief we’ve long held in France.”

“Last year, French box office was topped by two domestic productions, ‘A Little Something Extra’ and ‘The Count of Monte Cristo.’ However, Disney emerged as the country’s leading studio thanks to successful films like ‘Inside Out 2’ and ‘Moana 2.'”

In 2022, Netflix, France’s longest-running global streaming service launched in September 2014 and boasting the highest number of subscribers among all platforms, signed a three-year contract with the French film industry. This made Netflix the first U.S. platform to do so. In order to fulfill this commitment, Netflix agreed to reduce its SVOD window from 36 months to just 15 months and pledged to spend 20% of its French earnings on local content, with 4% specifically allocated for theatrical movies.

Currently, Netflix is advocating for reducing its release window to 12 months, a proposal they’ve had since 2021, but they are unwilling to significantly boost their spending on French content beyond the existing annual investment of approximately €40 million, as indicated by industry insiders. Some of the popular French productions under Netflix’s belt include the series “Lupin” starring Omar Sy and the movie “Under Paris” about sharks. The main reason Netflix hasn’t been a part of the Cannes Film Festival is due to France’s windowing regulations, which require every film in competition to have a theatrical premiere in France first.

The team responsible for the first Netflix agreement in 2022 has resumed negotiations and is currently discussing with Max and Prime Video. These companies are interested in securing films earlier than the standard 17-month window, and they may also consider increasing their investment in locally produced content.

The discussions on this topic are just getting started, and Max in France is taking a thoughtful, logical approach. Since we’ve recently joined the team, we’re committed to doing things correctly. We’re currently engaging with professional organizations and ARCOM (the broadcasting authorities) before we likely become subject to their regulatory framework.

Prime Video declined to comment for this piece.

Surprisingly, the agreement between Disney+ and French organizations stirred up industry-wide astonishment due to its emergence following tough negotiations that reached a critical point when Disney opted not to release “Strange World” in theaters as a form of protest against rules they considered overly complicated and unfavorable to consumers, as stated by a representative from the studio in France.

Disney, following the controversy of its agreement with Canal+, was keen to reach a compromise with local organizations. The deal with Canal+ allowed the studio’s films to air on the French television channel six months after their premiere. Without this agreement, France’s distribution rules would have required Disney to wait 17 months before streaming their movies on Disney+.

Canal+ is not happy about Disney+’s significant advancement in release scheduling, as it now only leads U.S. streaming services by three months. Historically, Canal+ has held a strong, influential position in France’s film industry, being the largest supporter of French cinema with approximately €220 million invested over the past three years. However, this could shift soon, as the contract between Canal+ Group and the industry guilds expired in December, and negotiations have been challenging to reach a consensus.

Just prior to the announcement of the Disney+ agreement, Maxime Saada, CEO of Canal+ Group, expressed concern to France’s Senate. He stated that the pay-TV group would cease investing approximately €220 million annually in French films if Disney received a nine-month window in exchange for a fivefold lower investment. Saada further cautioned that the group might reduce its investment by half if they don’t receive improved access to newly released movies.

Last Thursday, Saada wrote a concerning editorial published in the national newspaper Le Monde. In this piece, he contended, using the Oscar nominations for “Emilia Perez” and the success of “Anatomy of a Fall” as examples, that French cinema is currently thriving but is also enduring one of its most challenging periods ever.

He stated that France’s release schedule operates as a “beneficial and complex system” which maintains the number of cinemas and fortifies the overall structure. Each participant supports the funding of the movies they display during their distribution period, he explained. However, he cautioned that this “structure is currently under threat from strikes aimed at its foundational elements.

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2025-02-06 16:17