Netflix is in final negotiations to sign a distribution deal with Canal Plus Group, France’s leading pay TV group, Variety has confirmed.
Although Netflix has contributed to the continued decline of Canal Plus Group’s domestic subscriber base, a partnership with the streaming service could benefit Canal Plus Group, allowing it to distribute Netflix as part of its offer. The talks between Netflix and Canal Plus were first reported in the French newspaper Le Figaro.
With Disney+ and AppleTV+ about to launch globally, Canal Plus Group is aiming to forge strategic alliances to increase the volume of premium content it distributes and ramp up its subscriber base.
Since launching in Dec. 2014, Netflix has lured over five million subscribers. One of the keys to the streamer’s success in France was scoring distribution deals with all of France’s telco services, Orange, SFR, Bouygues and Free, to gain access to set-top boxes. Amazon Prime Video, meanwhile, recently signed a deal with SFR and is negotiating with other French telcos.
Canal Plus Group previously signed distribution pacts with a pair of major French telco operators, Free and Orange, its former rival in Oct. 2016. Through those two deals, Canal Plus was able to boost subscriptions significantly.
The French pay TV group has been going through a rough patch, having lost important and pricey sports rights such as the French Premier League soccer matches to deep-pocketed players. The pay TV service recently announced its plan to downsize its workforce in France by 20% through the voluntary layoff of about 500 jobs.
Earlier this year, Canal Plus launched Canal Plus Series, an OTT channel dedicated to scripted shows, as well as lower-priced packages to compete with streaming services.