Canal+, pointing out its support of French film production (on which it spent 9 per cent of its turnover, ie FFr800 million, in 1998), appealed against this decision, which could have drastic consequences for the film industry. Film producers and industrialists also condemned the decision, believing it could result in Canal+ reducing or even scrapping altogether its financial backing for film production, a loss which would not be made good by TPS (which only spent FFr58 million in 1998 to support film production). The Conseil’s decision, which was confirmed by the Paris Court of Appeal on February 18, could constitute a turning point in the relationship between the French pay-TV market and the film industry. The decision by the Conseil to fine Canal+ and force it to surrender its exclusive right to pre-purchase French film broadcasting is likely to change significantly the current structure of financial support to the French film industry.

Jacques-Philippe Gunther and Frédéric Pradelles
Freshfields
Paris