Landmark €100 m financing agreement between French cinema players and Netflix
The French legislators apparently do not support only the French publishers versus the tech platforms, but also inspire other media players to form strong and mutually beneficial alliances: the three organizations that represent the French cinema (BLIC, BLOC and ARP) announced that they have reached a historic financing agreement with Netflix, the first between a cinema association and a video streaming platform.
The agreement fuels the French film production with a percentage of Netflix’s net profits in France and in exchange gives the platform exclusivity rights and a shorter waiting time for streaming the movies.
Based on the agreement, for the next three years, Netflix is going to contribute 4% of its annual net revenue in France; more specifically the agreement includes:
- a minimum guaranteed of € 30 million per year for the creation of original French cinema production
- a diversity clause for at least 17% of the amount for the pre-financing of original French productions with a budget equal to or lower than 4 million euros
- a volume clause, securing a minimum of 10 movies financed per year.
For the year 2022, this investment is calculated to be approximately € 40 million for French and European productions.
According to the press release, Netflix “by becoming a privileged partner of the French cinema confirmed its position in the new media era and secures a first window of distribution within 15 months after the premiere of a movie, for a duration of 7 exclusive months”.
The associations believe that this agreement will give a new push towards the modernization of the French cinema ecosystem and strengthen the french and the European French-speaking film production.
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