Cinema professionals gather in Cannes with a compelling topic: the consequences for them, the redemption of GST by Canal . The operation is under review by the competition Council. Even if the film will not be at the heart of its investigations, the Council should, all the same, carefully consider two points. The first is the risk of vertical integration between the production of films by Studio Canal and chains cinema by future publishing group.
The fear of a lock
Some professionals fear that these chains prefer the catalogue of Studio Canal at the expense of other catalogues of films. Canal replies that Studio Canal is not part of the perimeter of the future Canal France, that the merger strengthens in no position, and that he is still facing groups TF1 and M6 that produce and distribute films also.
The second concern is that "Canal does its monopoly in pay television to block new markets such as VOD", forward Pascal Rogard, President of the SACD, reminiscent of that of the competition Council had already sentenced Canal a few years ago because he had tried to lock the rights on the market of the pay-per-view. CanalPlay, service of VOD of Canal , will try re-offend in this new market Canal is in defending, believing that, although Studio Canal has warrants VOD, there was interest to multiply platforms VOD as CanalPlay, TF1, FNAC... to defend the best interests of right holders. The latter being very attached, in the choice of VOD platforms, revenue sharing arrangements. "Specifically, should prohibit the Canal group to ensure an exclusive VOD rights, but so should not dismantle the films to platforms that do not good repayment conditions apply to the successors", temper Pascal Rogard.
Negotiations with the profession
After the decision of the authorities of competition, the heart of the discussions between Canal and French cinema will mainly by professional negotiations and with the CSA. They will open at the renegotiation of the agreements of GST Star and strings of Canal cinéma, Ciné Cinéma family. It seems difficult to align the regime of GST on Canal . Schematically, the channel Canal is subject to a mandatory regime very different from that of the thematic channels of movies, including GST Star. Obligations are calculated on 100 of the turnover of the chain (publishing and distribution).
On the other hand, those on the themes are based on the only turnover of the Edition. Very less. Result: in 2005, Canal has funded 106 films, against 12 each for cine film and GST Star.
Another difference, Canal has signed end of 2004 a new agreement with French cinema for the lifting of the ban of the film Saturday night and being able to dispose of own programming to decline the strings of the bouquet.
But this agreement has a "diversity clause" that Canal was renegotiated in his favour, on the grounds of the need to fight against big budget of GST films. This argument falls with the merger. The CNC, cinéma and Canal professionals seem therefore not opposed to a harmonization of the "terms of diversity."
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