France was one of the first countries to require streamers to invest in the local film and TV production sector. Three years on, its impact is b
France was one of the first countries to require streamers to invest in the local film and TV production sector. Three years on, its impact is being felt.
A comprehensive study from the CNC and French audiovisual regulatory authority Arcom published in overdue November revealed the impact of the introduction of the European Union’s Audiovisual Media Services Directive (AVMSD) in France on the country’s film and TV sector.
The AVMSD requires the US streamers to invest at least 20% of their annual turnover in local film and TV. According to the report, it has given the French industry a nearly $1.05bn (€1bn) financial boost.
Between 2021 and 2023, the three huge players, Netflix, Disney+ and Amazon Prime Video, spent a combined $907m (€866m) in the local industry. For films, this was primarily through the acquisition at financing stage of second-window rights to majority-French produced titles.
“This ambitious integration of platforms is beneficial for everyone,” said Olivier Henrard, acting president of the CNC, when unveiling the publication of the report in November.
When the streamers first began operating in France, the country’s film industry was wary its sacrosanct funding system would be pummeled by the market disruptors. However, the report suggested the US platforms have bolstered the number and size of theatrical releases through their pre-buying, boosted the average budgets of films in production, and found a way to work in harmony with local broadcasters.
Netflix was the leading backer for the period, investing in 66 films and TV programmes, accounting for 40.2% of the total project investment in France by the streamers.
Prime Video followed with 53 film and TV titles for 32.3% of the total and Disney+ clocked in with a 22% share with 36 film and TV projects.
Apple TV+, Paramount+ and Max accounted for a total of nine projects between them.
The report noted the three huge streamers invested in a total of 81 films between 2021 and 2023, of which around two-thirds had budgets higher than $4.3m (€4m). Pre-buys of the second TV window accounted for 79% of all their expenditure.
The average budget of a streamer-backed film was $9.1m (€8.7m), compared to a budget of $4.7m (€4.5m) for a typical majority French co-production in which a streamer was not involved.
Some 24% of the films pre-bought by Netflix have a budget of more than $15.7m (€15m), compared to 14.3% for Disney and 11.1% for Prime Video. Netflix investments include Gilles Lellouche’s $37.4m (€35.7m) Beating Hearts, Studiocanal’s biggest-budget French production to date; it also went on to become the distributor’s best performer at the local box office, reaching 4.7 million admissions. Netflix also acquired Mehdi Idir and Grand Corps Malade’s $36.3m (€34.6m) biopic Monsieur Aznavour, a local success for Pathe with more than 2 million tickets sold to date.
Disney+ pre-bought the $39.5m (€37.7m) two-part Charles de Gaulle biopic produced by Pathe Films, while Prime Video invested in the $33m (€31.5m) Notre Dame On Fire.
Overall, 28% of the French films backed by streamers had budgets of more than $10.5m (€10m), while none had budgets under $1.05m (€1m). The report noted the hope the streamers could strike a balance between bigger budget projects and smaller indie titles going forward.
Films backed by the streamers released in French cinemas between 2021-2023 garnered an average of 308,000 admissions. This was 44% higher than the average attendance for all CNC-approved feature films released in the same period.
Moving forward
The report noted that when it comes to film, the streamers were focused on live-action fiction titles with the animation and documentary sectors yet to reap any benefits. Sylvain Chomet’s The Magnificent Life Of Marcel Pagnol and Raoul Peck’s Ernest Cole: Lost And Found were the only animated and documentary titles respectively backed by a streamer. Both were backed by Netflix.
Prime Video did not invest in animation between 2021-2023. In 2023, Netflix invested 4.3% of its French spend in animation, while Disney invested just 1.6% in 2023.
Looking ahead, the report called for greater financial transparency from the streamers. It also pointed out further adaptation from both the huge three and the French industry would likely be needed following the arrival in France of the second wave of platforms: Apple TV+, Warner Bros Discovery’s Max, Paramount+, and Sony’s Crunchyroll.
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