The streaming wars are well and truly on, with media giants such as Amazon and Netflix dominating the market. However, there will soon be some competition from France, as a group of broadcasters are launching a joint streaming service called Salto.
France Televisions has joined forces with rivals M6 and TF1 to form the new subscription service, which is expected to be launched during the first quarter of 2020. Delphine Ernotte Cunci, CEO of France Televisions, said: “Now that Salto has been approved, we will at last be able to put together Team France in broadcasting, which I have been longing for.
“The launch of the platform will very soon give us what we need to compete against international players on our own territory.”
Nicolas de Tavernost, M6 CEO, added: “Our channels are popular with French people, our content is attractive and our technology is very advanced – all reasons to welcome the forthcoming launch of an ambitious joint offer like Salto.”
The service has been described as the French alternative to Netflix, but the green light on going ahead with the launch was subject to the broadcasters making several concessions. For example, there will be restrictions placed on acquisition deals in terms of packaging linear and nonlinear rights. Furthermore, only a maximum of 40% of the content can be obtained from parent companies.
There will be limits on the amount of promotion the broadcasters can carry out on their terrestrial channels, and the regulator has placed restrictions on the ability for partners to either combine purchasing rights or benefit from contractual agreements among the parent companies. Independent experts will regulate the payments which go to broadcasters from Salto, and the three companies must continue to offer their channels to third party distributors according to fair terms. That being said, the new launch will come with a budget of around $56 million for its first year.
