France’s TF1 has chosen to take legal action against Canal+ after failing to reach an agreement on the terms of its channels’ distribution on the Canal (ex CanalSat) bouquet.
According to Les Echos, talks between the two parties dragged on for months. After the most recent contract expired in April, TF1 decided last month to take legal action against Canal+, with the case being heard at the Tribunal de Grande Instance of Nanterre.
TF1 has made similar demands to Free, Bouygues Telecom, SFR and Orange to those to Canal+ but on each occasion managed to reach a distribution agreement without any difficulty.
Les Echos notes that platforms being asked to pay for the distribution of what is a FTA channel is a great source of controversy.
Although relations between TF1 and Canal+ are strained, an agreement between them is nevertheless now likely to be reached soon.
Les Echos also says that such agreements can be expensive. Orange, for instance, is now paying between €20-25 million a year for the distribution of TF1 and associated services, whereas before it paid a little over €7 million.
