Netflix has signed a three-year agreement to finance the production of French and European films, which are also distributed in French cinemas, in the amount of at least 40 million euros annually.
Streaming service provider Netflix has entered into an agreement with the French Broadcasting Corporation to spend 20% of its annual revenue in France on the production of French series and films in accordance with French audio-visual media services regulations.
Under a contract signed Tuesday, Netflix will spend 4 percent of its annual revenue in France on financing French and European films and investing at least 30 million euros in francophone films.
The upcoming films will be distributed first in French cinemas and will be shown on Netflix 15 months later. The diversity clause of the agreement also states that at least 17 percent of the €40 million provided by Netflix must be used to fund French-language films with a budget of less than €4 million.
The agreement also signals the streaming service provider’s commitment to “become a part of French cultural life,” Variety.com quotes Netflix.
So far, Netflix is the only streaming service provider that has such an agreement with French film organizations, and France is the only European country that has signed such an agreement with a streaming service provider.
Netflix previously had to wait 36 months to add films to French cinemas. The service provider wants to shorten the 15-month period in the current agreement over the next three years.
Due to strict French regulations, Netflix films cannot be included in the competition program at the Cannes Film Festival because the festival also requires films to be distributed in French cinemas.
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