TF1: end of the conflict with Canal + and resumption of the signal this Monday, a few days from the World Cup

After more than two months of conflict, TF1 and Canal+ have reached a long-term agreement renewing the distribution of the TF1 group's five DTT channels (TF1, TMC, TFX, TF1 Séries Films, LCI) as well as their replay, the two groups announced in a joint press release on Friday evening, November 4. The signal which has been cut since September 2 will resume this Monday, November 7 for subscribers to Canal+ group offers and TNT SAT users.

This agreement comes a few days before the start of the World Cup (November 20-December 18) for which TF1 holds exclusive unencrypted rights (28 matches co-broadcast by beIN Sports, which has the entire event on paid). Note that the agreement includes, as specified in the press release, the replay of free-to-air channels but not the paid service MYTF1 Max, one of the sticking points during the first negotiations.

The signal cut affected both the 5.4 million Canal+ subscribers and also households that only receive television through Canal+'s free TNT Sat offer, relayed by Astra, i.e. 2 million homes (in isolated areas not served by DTT, mainly in the mountains). The cessation of broadcasting of its channels by Canal+ was detrimental to the audiences of the TF1 group. In October, all of its five channels saw its audience share fall to 25.6%, against 27.7% a year earlier, according to Médiamétrie. On the other hand, this commercial conflict did not have "significant impact" on its accounts, the financial director of TF1, Philippe Denery, assured at the end of October during a conference call with journalists, on the sidelines of the publication of the third quarter results (Satellifacts, October 27).

The agreement also comes at a time when Rodolphe Belmer, former CEO of the Canal+ group and Eutelsat, is taking over as CEO of the TF1 group since October 27, while Gilles Pélisson left his operational duties as CEO on the same day, after seven years at the head of the Bouygues subsidiary. He is now Chairman of the Board.

For two months, the two groups rejected responsibility for a conflict that took them to court. The Vivendi subsidiary had assured that TF1 was too greedy in the renegotiation of the contract, concluded at the end of 2018 after a similar conflict and expired on August 31, while TF1 had affirmed that it was its rival who had not wished to come to an agreement. At the end of October, the Paris Court of Appeal had confirmed that Canal+ was not obliged to restore the TF1 signal on its TNT Sat offer, validating a decision rendered on September 22 by the commercial court.
In court, the TF1 group specifically demanded the resumption of broadcasting of its five free-to-air channels on TNT Sat for a period of four months. At first instance and on appeal, the courts rejected TF1's request. In particular, it noted that the law did not require Canal+ to distribute the TF1 signal on TNT Sat, as Arcom had indicated. During the hearing before the Paris Commercial Court on September 13, TF1's lawyer let it slip that the amount of the TF1 Premium contract (broadcast of live channels, replay and MYTF1Max) was "13 million euros per year." In a separate procedure, Canal+ has summoned TF1 before the Nanterre commercial court.

It should be remembered that at the same time, Canal+ signed on October 24 with the M6 group the renewal of their multi-year distribution agreements for the channels and their non-linear services (Satellifacts, October 24).