Canal+ Group is reportedly in exclusive negotiations to purchase OCA (Orange Cinema Series).
Variety reported Thursday that employees have now been told that discussions were underway between the two companies.
Talks between the two companies are believed to have begun in July.
Like many telcos that became involved in the content business, Orange is now focussing on its broadband offer.
Canal already owns 33.3% of OCS and is the greatest contributor to the OCS subscriber base of 2.9 million. Canal has 9.6 million subscribers, but Netflix has 12 million subscribers in France.
The deal under discussion would also include the acquisition of the production arm Orange Studio. Under French legislation, pay-TV operators are required to invest in the local cinema sector.
Launched in late 2008, OCS offers a 4-channel service that features first-run films, screened 6 months after their cinema release, exclusive series direct from the United States, including new HBO series and the HBO catalogue on demand.
The agreement will be subject to the scrutiny of the competition authorities, who blocked a 2011 scheme to merge Canal’s pay-TV channels with OCS.
