Canal+ gets greenlight to acquire OCS and Orange Studio

French media giant Canal+ Group’s plans to acquire Orange’s pay TV platform OCS and film production company Orange Studio have been approved by the French Competition Authority.

Canal+ which already jointly controlled OCS with the telco, will become sole shareholder of the companies after the transaction is finalised. OCS produces pay TV channels and operates a SVOD and catch-up TV service. It also produces original content through via OCS Signature and OCS Original. The pay TV arm is distributed in France, either by OCS itself or through third-party distributors. In the French overseas territories, OCS is only distributed through distributors.

The French market watchdog carried out an investigation into the acquisition which it found could have had a significant impact on French cinema by creating a monopsony situation in certain markets. The deal would see the pay TV powerhouse in the position of sole buyer of recent French films for first-pay-window broadcast, with Canal+ and OCS the only two first-pay-window outlets available to French film producers seeking pre-financing for their projects.

As part of the conditions of the transaction to minimise the threat, Canal Plus will combine OCS with the company’s Ciné+ division which will be dedicated to pre-purchasing first-pay-window French films from French producers, separate from that of Canal+.

OCS/Cine will have its own staff and budget, with a cost accounting system that clearly separates the costs and revenues from those of Canal+.  The annual budget of the Ciné+/OCS will correspond to the amount guaranteed by OCS as part of its agreement with cinema trade associations. Lastly, investments must reflect the diversity of French film production, particularly in terms of production budgets and the diversity of talent, filmmakers and types of films financed.

Canal+  has also committed to make, on behalf of the Ciné+/OCS team, pre-purchase proposals for a minimum of 25 French film projects over five years, including at least four French film projects per year (of which one per year with a budget of less than €4 million) for films rejected by the Canal+ acquisition team for first-pay-window broadcast.