France’s two biggest commercial broadcasters, TF1 and M6, have decided to sell their stakes in Salto, the French streaming service. diversity has confirmed. This will leave Salto without two of its three parent companies.
The service, which launched in 2020 after several delays, was launched by TF1, M6, France Televisions to offer subscribers a local alternative to Netflix (which now has over 13 million subscribers in France) and other global services.
TF1 and M6’s decision to leave Salto, taken during a November 17 board meeting, appears to have been motivated by several factors, including obligations imposed on them by the antitrust authorities that they felt were too onerous.
With annual sales of EUR 17.1 million in 2021, the company was valued at EUR 45 million in March. The service offers catch-up content from 19 different channels from TF1, France Télévisions and M6, as well as premieres of upcoming shows and current content to stream.
Sources close to the French TV groups say their idea is to sell their shares but keep their content available on the service. But with M6 and TF1, Salto will remain sole owner with France Televisions, the French broadcaster. But the pubcaster tightening his wallet could follow in the footsteps of TF1 and M6. Delphine Ernotte, President of France Télévisions, previously said she plans to divest France Televisions of Salto after TF1 and M6 announced their plans to merge. At this point, TF1 and M6 got in touch and said they would take over the recording from France Televisions. But after their merger was called off for antitrust reasons, they decided on a different strategy.
Salto therefore needs new owners to survive. The question is, who will come on board to save Salto? One potential candidate is Canal+, but the Vivendi-owned banner has just entered exclusive negotiations with Orange’s pay-TV service OCS and film division Orange Studio.
The news was first published by the French news agency La Lettre A.
There’s more to come.
https://variety.com/2022/tv/global/tf1-m6-exit-french-streaming-service-salto-1235438611/ Commercial Networks TF1, M6 leave French streaming service Salto