PARIS — Kiosque, the pay-per-view unit of French pay TV giant Canal Plus, is to drop broadcasting deals with production companies after being accused of monopolizing the market.
Kiosque was guaranteeing exclusive broadcast rights to films by paying the companies 50% of the customer’s PPV fee as well as a guaranteed minimum sum.
In January rival TPS filed a complaint to the Conseil de la Concurrence, France’s competition council, claiming that Kiosque’s hold over productions was freezing TPS’ PPV unit, Multivision, out of the market and preventing it from complying with a law that 40% of films broadcast by pay-per-view companies must be French.
Bruno Deloison, joint director of Kiosque, told Daily Variety that the company agreed to drop the rights because they were no longer economically interesting to the company. “We were paying out a lot of money to production companies in a hit-and-miss market. Films that did well in the cinema were not necessarily hits on a pay-per-view basis,” Deloison said.
“On top of that, video-on-demand will soon replace the pay-per-view market, so it’s not really a profitable area,” he added.
Kiosque has agreed to renounce its exclusivity rights but has appealed to keep rights to five films it considers integral to its marketing strategy.