France's TF1 inks grand deal for U pix, TV series
The deal will provide TF1 --- which boasts the highest audience share of any commercial broadcaster on the Continent --- with free TV rights to a guaranteed number of U's feature films and TV shows that will be produced over the life of the multiyear agreement.
Additionally, the French station will renew two evergreen money-spinners, "Murder, She Wrote" and "Columbo."
After a year in which digital dealmaking dominated the media headlines here and abroad, this agreement signals a return by the majors to the core revenue-generating business of licensing free TV rights in Europe. (Free TV rights account for roughly 60% of the majors' revenues from foreign TV outlets, with the growing pay and pay-per-view sector accounting for the rest.)
Universal will be able to place approximately 50% of its future film and TV output on TF1 as part of the deal, and will be able to sell other product to other terrestrial players in the market.
The deal was announced Wednesday by TF1 chairman/CEO Patrick Le Lay and Universal Television Enterprises president James McNamara.
TF1, which was privatized 10 years ago, has been the main customer for U's movies and TV shows for the last decade, but the two had never sealed a formal arrangement for future product.
"It was important strategically for both partners to formalize this relationship," said McNamara, who pointed out that the deal guarantees Universal placement for much of its future product on the most widely watched station in Europe. TF1 will essentially pick up a minimum number of movies and TV series from the studio each year as part of the deal.
France is the toughest market in Europe for U.S. product. McNamara would not be pinned down on the figure for the deal, but outside sources said the typical terms of such deals is now three runs of a show over five years. The pricetag for the deal was estimated variously by sources as between $88 million and $100 million over that span.
Hour series, Universal's most sought-after product, can go for as much as $75,000 an episode in France, up 50% from just three or four years ago.
From TF1's perspective, the deal signifies a move to shore up its supply of top U.S. product at a time when its digital rival Canal Plus has also been acquiring free TV rights to U.S. product. TF1 locked up free TV rights to Paramount and MGM product through complex long-term digital deals inked last year.
Canal Plus acquired some free TV rights by default in its digital deals with several of the other Hollywood studios last year, even though the Gallic paybox has no free TV outlet of its own.
U also did a digital deal with the Canal Plus platform last year, but held free rights back from inclusion in that deal. U's future films destined for TF1 will have a prior pay window on Canal Plus' digital platform.
Views differ as to whether it was wiser for the Hollywood studios to do an all-in deal with one party --- as Paramount did by doing a free, pay and pay-per-view deal with TF1 --- or to split free and pay rights between the two rival players.
"This agreement (with U) will contribute significantly to guaranteeing TF1's portfolio of original, high-quality programming for several years to come. It is a perfect example of what can be achieved when two major entertainment companies capitalize on many years of mutual trust," Le Lay said in a joint statement.
