Netflix’s French TV Deal: A Glimpse into Streaming’s Future?
Netflix’s new arrangement with TF1 in France is causing ripples throughout the media landscape. This deal, bringing linear TV to a major streaming platform, has many wondering if it’s a sign of things to come in the entertainment industry.
A Groundbreaking Alliance
The alliance between Netflix and TF1, unveiled at the Cannes Lions festival, has sparked widespread discussion. One industry veteran, upon seeing the news, texted, “Holy shit,
” sharing a link to the original article. The move involves Netflix integrating TF1’s channels into its platform, a significant shift in how content is delivered.
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— Test Account (@test) June 25, 2024
Why the U.S. Might Miss Out
The U.S. market presents several barriers to a similar Netflix-broadcaster partnership. The economic structure of American pay-TV is different. Media companies have built business models around bundling channels, which makes it challenging to unbundle broadcast networks.
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Retransmission fees for broadcast networks in the United States have risen. In 2024, the average monthly fee for multichannel broadcast carriage was roughly $21.48 per subscriber (Source: Kagan 2024).
The U.S. Landscape
Netflix has likely reached its subscriber peak in the U.S. as most homes already use the service. The company’s focus is now on increasing user engagement to benefit its advertising sector. Meanwhile, other countries, like France, might still have room for subscriber growth, making broadcaster partnerships more appealing.
Local broadcasters like TF1 could gain a lifeline by cooperating with Netflix. This cooperation enables them to adjust to the changing media consumption habits.
The pay-TV environment could change, making a shift beneficial for Netflix. There could also be an expansion of offerings, similar to platforms like Amazon, YouTube, and Roku. Such transformations would contradict the current model.
