The French cinema guilds have struck a deal with Netflix, in which the streaming giant will invest at least $45 million in around 10 French and European films over the next three years. And all of which will get theatrical showings in France.
The agreement, which was announced Tuesday by ARP, BLIC, and BLOC, France’s three guilds for filmmakers, producers, and cinema owners, is the first of its kind in France with a subscription video-on-demand (SVOD) service.
Netflix has committed to spend at least 4 percent of its annual net revenue in France and Europe on French and European film productions, with €30 million ($34 million) dedicated to French-language features.
Under the agreement, Netflix will premiere all of the films it has financed in France, with the exception of those that are already available on other platforms. The theatrical debut will be delayed by 15 months and, like everything else under this agreement, streamed exclusively on Netflix for a period of seven months.
Netflix will have to invest at least 17% of the €40 million in low-budget films, which are those with a budget of less than €4 million (USD $4.5 million).
Netflix has promised to pre-financing these movies, which means the money will be available before filming begins.
Netflix’s agreement with France’s broadcasting authorities, in which the streamer agreed to invest 20% of its annual income in French programming, both series and films, is a good example of how international deals can work for streaming services.
Netflix has no choice in the matter, as the French government has mandated that the streamer, like all TV networks in France, must devote to French programming as a condition of doing business there.
However, by limiting the time between when a film is released in France’s cinemas and when it can be seen online, Netflix has been forced to comply.
The previous 36-month period— the longest in Europe — has been cut down to just 15 months, allowing a Netflix-backed film to appear on the service after only a year following its theatrical release.
Netflix’s absence from the Cannes Film Festival for six years and its new agreement with the French guilds might point to a return in 2019. Netflix had withdrawn its films from Cannes because the French festival demands that all of its competition titles have a French theatrical run.