To date, Netflix is the first and only streaming service to have signed this agreement with French film organisations.
Netflix has signed a three-year agreement with French film guilds to invest a minimum of $45m in the financing of French and European movies which will be released in French theatres.
The deal, announced by French guilds ARP, BLIC and BLOC, which together represent the interests of French creatives, producers and cinema owners, marks the first agreement of its kind in France with a subscription video-on-demand (SVOD) service.
Under the deal, Netflix agrees to invest at least 4% of its annual net revenue in France in French and European film productions, with at least $34m earmarked for French-language features. All the films backed by Netflix under the deal will have a theatrical premiere in France and launch on Netflix 15 months later. Netflix will have an exclusive seven-month streaming window.
The pact also has a provision for lower budget films. It features a diversity clause under which Netflix will have to dedicate at least 17% of the $45.29m in financing French-language movies with a budget of under $4.54m. The streamer will need to invest in a minimum of 10 movies at the pre-financing stage, meaning no later than the commencement of principal photography.
The deal follows Netflix pact with France’s broadcasting authorities, under which the streamer committed to invest 20% of its annual revenue in France on French content, both series and movies.