No, Netflix isn't "the new cable." Its deal with TF1 is something else.
The big news overnight is that Netflix has entered into an arrangement with French broadcaster TF1 to carry its linear streaming channels and to add TF1 library content to Netflix (in France).
This means that if you are in France, you will be able to access these linear channels:
TF1 - The primary TF1 channel. It carries its biggest shows across entertainment, news, drama, sports, kids TV, etc.
TMC - A channel focused on 25-49 year-old viewers. It’s basically TF1, but with more less traditional, less mainstream content.
TFX - A channel for millennials with reality shows, anime, lighter fare US imports like Gossip Girl, and blockbuster movies.
TF1 Series Films - As the name suggests, it is movies and premium TV shows. It isn’t just French productions either - you’ll find US and UK dramas like The Handmaid’s Tale and Killing Eve.
LCI - Rolling news.
What isn’t clear to me is whether the deal with Netflix carries the small number of pay TV channels TF1 produce. They might be in the mix too.
What we don’t know is what the commercial arrangement is here. We don’t know if there is a revenue share involved, or if TF1 is paying to be on the Netflix platform.
We do know that this isn’t TF1 going all-in on Netflix as a platform. It will continue to run its other services as usual. It does give TF1 a competitive edge over local broadcasters who aren’t on Netflix. At least until the day comes where they are.
As with all things Netflix, consider this a trial. If successful, expect to see similar deals internationally. But, I suspect this will work for them, which brings us to the big question: Why is Netflix doing this?
It’s fairly evident why Netflix is doing it: it’s to capture those many viewers who do all of their viewing nowadays within Netflix. One might also want to consider YouTube, but it is so much easier to get lost in YouTube - on Netflix the broadcasters will be given real estate which makes the channels and content easily locatable.
But why Netflix? Without knowing the commercial deal in place, I’d suggest the answer is sports and event programming. It seems safe to assume that there’s some sort of revenue share in place. If Netflix can see revenue without the massive financial outlay of buying up sports rights, why not? It keeps subscribers within the Netflix eco-system and creates even further value for subscribers. That is all upside.
What this isn’t is Netflix becoming “the new cable.”
If that is an argument one really wants to make, one could say that it replaced cable a decade ago. It has always been an aggregator of sorts, entering into third-party deals since the beginning. I’d be very surprised if this is a straight carriage deal, the likes of which are done with traditional cable TV companies.
If one really wants “the new cable,” FAST channel linear platforms like Pluto TV became the next cable years ago. That’s a much more like for like comparison. This is something else and doesn’t really mark “the next step.”
Well, it might be the next step for TF1, a company that has been trying to find a way forward in a difficult media market.
TF1 is one of the two largest private broadcasters in France. In 2021, the company tried to merge with its rival M6 Group as a way to combat the rising U.S. streaming companies. But it abandoned those efforts the next year because of antitrust concerns.
TF1 currently reaches 58 million viewers with its broadcast channels and serves 35 million users on its streaming channel, TF1+. Yet the company sees this new deal as a way to attract more viewers and increase its advertising revenue as a result.
“As viewing habits shift toward on-demand consumption and audience fragmentation increases, this unprecedented alliance will enable our premium content to reach unparalleled audiences and unlock new reach for advertisers within an ecosystem that perfectly complements our TF1+ platform,” Mr. Belmer said in a statement.
Liberté, égalité, fraternité.
Slicing and dicing up WBD for short-term M&A benefit…. not likely says analysts
If the plan for Warner Bros Discovery’s two splintered businesses is to quickly generate a sale, analysts are suggesting the appetite isn’t quite there for it in the current climate. It might be an uphill push to get to a sale.
At least as per this article at The Wrap.
An interesting comment was in regards to the mooted roll-up of the WBD linear cable channels with Comcast’s recent linear spin-off Versant. A merger isn’t a smart play, the analysts say:
“It makes them bigger companies where you get some synergies by cutting overhead, duplicative jobs, ad sales and then after like, two years, you’ve worn through your synergies, your revenue is still coming down and your EBITDA (earnings before interest, taxes, depreciation and amortization) is also coming down and you have to go do another deal,” he said. “You saw this with the telecom companies back around 2000 to 2005. There was a ton of consolidation but none of them got any better. They just got bigger in the same declining ecosystem.”
News Desk
Showrunner on the future of Doctor Who: “We don’t know what’s happening yet.” I don’t think it’s coming back, kids. Read: Deadline
There’s talk of David Fincher’s Mindhunter series coming back as three TV movies for Netflix. Yes please. Read: Variety
Cobie Smulders will be back for season 3 of Shrinking. Read: Variety
Kathryn Bigelow’s next film A House of Dynamite will debut Oct 24 on Netflix, following a short run of cinema screenings. Read: Dark Horizons
Tom Segura's Netflix show Dark Thoughts has been picked up for season 2. Read: thefutoncritic
BBC staffer Kate Phillips has been appointed Chief Content Officer, ending a lengthy recruitment process. Read: THR
The Trip will be back for a fifth season, with Coogan and Brydon visiting the Northern Lights. Read: Deadline
The Kim Kardashian Diamond Heist will be fast-tracked in Australia by way of Paramount’s Ten. Read: Mediaweek
Production has begun on Netflix’s My Brilliant Career in South Australia. Read: Mediaweek
Melissa Rauch says the Night Court revival series is dead after they failed to find a new network for the show. Read: Variety
The
Trailer Park
It’s Always Sunny in Philadelphia returns for season 17 on FX and Hulu 9 July.
Trainwreck: Balloon Boy debuts on Netflix July 15.
A homemade flying saucer lifts off, and a 6-year-old boy might be inside. National panic ensues - but what truly happened? This documentary investigates.
That’s the newsletter for today.
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