Canal+’s Direct 8 takeover given green light

Pascale Paoli-Lebailly | 24-07-2012

The French Competition Authority has given the green light to Canal+’s takeover of Bolloré’s DTT channels Direct 8 and Direct Star.
The takeover still must be confirmed in September by TV regulator CSA but it is almost certain that Canal+ will officially takes up new role and enter the FTA TV market but the relationships between the pay-TV group and its FTA channels will be subject to a certain number of conditions regarding content and sport rights. The acquisition of US and French movie rights as well as of US series will also be limited and pay-TV and Free TV negotiations will not be bundled.
Regarding the TPS-Canalsat merger, the Authority also enjoins Canal+ Plus Group to respect five-year new restraints and allow fair competition between pay-TV actors.
The Authority’s objective is to help alternative and less-expensive offers emerge, giving them the possibility to carry more exclusive independent channels as well as Canal+ movie channels.
The CSA has also asked Canal+ to divest fully its shares in Orange cinema series channels. New injunctions also cover the sectors of on-demand and movie rights, introducing limited three-year and non-exclusive contracts.
After the five-year period, French Authority will pilot a new analysis of the market to make sure these injunctions are still valid.
Following the announcement of the Authority’s decision, Canal+ Group has stated in a release that it disagrees with both the analysis and the new conditions, and will ask they are suspended and cancelled by French Conseil d’Etat (State Council).