Published:
07-Feb-08
Canal Plus has retained most of the live TV rights to the French football league championships despite a challenge from Orange, the subsidiary of telecoms giant France Telecom. The pay TV company was awarded nine of the 12 packages of rights for the four seasons starting in 2008/9 put up for auction by the LFP (the French professional league) including all the live packages except one, including all Sunday matches, all three "fan" packages and highlights. Orange won the rights for matches played on Saturday nights together with both mobile telephone packages. The LFP said its revenue from the rights would be €668m a season, compared to €653m under its present agreements. The LFP divided the rights for the four seasons starting in 2008/9 into 12 packages in order to encourage competition to the pay TV operator. Companies which reportedly bid unsuccessfully include the commercial broadcasters TF1, M6 and Direct 8, mobile operator SFR and the video website Dailymotion.
Our take...
Both the LFP and Canal Plus will be happy with the outcome of the auction: the pay TV broadcaster was able to secure the vast majority of its football coverage for the next four years for less money: sources quoted in French press claimed it is paying €460m a season compared to €600m under the present contract. Orange's reported outlay will be €208m a season. The LFP, by dividing the rights into multiple lots, succeeded in opening up the auction even though Canal Plus, following the 2006 merger of Canalsat with TPS, is by far the largest pay TV platform in France. Its only headache will be Saturday evenings, where it will lose a key part of its schedule – though matches from other European leagues or French club rugby could be a substitute. Orange could either exploit the rights to its live package itself by setting up its own TV service or sub-license the rights to another broadcaster and simulcast the matches on broadband or mobile. As for its two mobile packages, Orange has the rights to show afternoon matches live and to packages of highlights. Orange has more than one million mobile TV subscribers on its 3G network in France – more than twice the combined number of SFR and Bouygues – and is the only mobile operator to have applied for a DVB-H licence. It now seems highly likely that its application will be successful.