The hegemony of Netflix on the SVOD market partly explains the difficulties of the Canal + group. However, both competitors could become partners under a distribution agreement.
Under the threat of the arrival of new actors of renown (Apple and Disney not to name them), the small world of streaming video on subscription is in turmoil. Netflix said to wait for its new competitors serenely explaining that the cake is big enough so that everyone can have a sufficient share, but the market leader nevertheless seeks new sources of growth (especially after a second quarter of 2019 less flourishing) .
This is one of the reasons that would push Netflix closer to Canal +, according to our colleagues Le Figaro who announce that the French group could soon market the offers of the US platform, advanced negotiations being held on this subject between the two companies .
An aggregation strategy
After successfully settling on the box operators to make available to a maximum of customers, Netflix – which has more than 5 million subscribers in France – would see in Canal + a new way to continue recruiting. We imagine that the encrypted channel will benefit, she, to market subscriptions including access to its programs and catalog Netflix at advantageous prices, which would also allow it to recruit and retain new subscribers.
Canal + is indeed in a much more worrying situation, since it can not close the leak of its subscribers. However, in the past, Canal + has often ended up integrating competitors who came to the market to attack it head-on. Whether OCS, BeIN or RMC Sport, Canal + has always ended up offering them in coupled offers in the hope of remaining a privileged gateway to content. An aggregation that serves a strategy far from delusional, as the proliferation of services and subscriptions will probably be one of the main obstacles to the development of new platforms.