Canal+ Group, the leading telco group in France, has received conditional approval from the anti-trust board to acquire Orange Studio and OCS, the film and pay TV operations of Orange. This acquisition has the potential to significantly impact the local film industry, as both Canal+ and OCS are major sources of pre-financing for French movies.
To address concentration concerns, Canal+ has committed to several remedies for a period of five years. Under the proposed plans, OCS will be combined with Cine+, one of Canal+’s channels, but it will continue to operate independently. Canal+ has also pledged to maintain separate purse strings for OCS/Cine+ and ensure a minimum of 25 French film projects are pre-bought over the next five years.
One of the key advantages of this acquisition is that Canal+ will have access to a wider range of movies. OCS has previously pre-bought movies that were turned down by Canal+, including critically acclaimed films like “Bernadette” and “Planet B.” This collaboration will allow for greater diversity in the French film industry.
While streaming services like Netflix, Amazon Prime Video, and Disney+ are gaining prominence in the market, the anti-trust board recognizes that they cannot fully replace Canal+ and OCS in terms of diversity and investment obligations in local content.
Canal+ Group, which is owned by Vivendi, already holds a 33.3% stake in OCS and has been distributing the service on its platform since 2011. Orange Studio, on the other hand, is responsible for co-producing, distributing, and selling select films in France.
This conditional approval marks a significant milestone for Canal+ Group, as their previous attempt to merge with OCS and launch a premium pay TV channel was blocked by the anti-trust board in 2011. However, the streaming landscape has since evolved, with the rise of platforms like Netflix. Canal+ now faces competition from these streaming giants, but this acquisition positions them to remain a key player in the market.
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