Vivendi-owned Canal+ has finalised a deal to buy Orange’s film production arm Orange Studio and pay TV division OCS.
In a joint statement today (January 9) both groups said they have signed a memorandum of understanding and that “Canal+ will become the sole shareholder of both companies following this transaction.”
Several months of talks between the two French groups accelerated in December and the two groups have now joined forces in an effort to challenge US streaming giants such as Netflix in the territory.
Canal+ already holds a 34% stake in OCS and is the main distributor of its content. The deal will see Orange Studio’s film catalogue combined with StudioCanal. The deal will also add an additional three million subscribers from OCS to Canal+’s subscriber base.
According to local newspaper Les Echos, in an unconventional transaction, the seller Orange will pay the buyer Canal+ since OCS is, they claim, “indebted” and operating at a loss.
Orange’s pay TV arm OCS (Orange Cinema Series) and its production, distribution and sales division Orange Studio have been on the market for nearly two years.
OCS launched in 2008 and is now France’s second-biggest pay TV service after Canal+. OCS is the distributor of HBO series, including Game of Thrones, The Walking Dead and Euphoria. However, HBO parent Warner Bros. Discovery recently opted out of the deal and will save its content for its own streaming platform set to launch in France at an undisclosed date.
Orange Studio launched in 2007 and co-produces, distributes and handles international sales for a large catalogue including Florian Zeller’s Oscar-winning The Father to the more recent Haute Couture starring Nathalie Baye, Olivier Assayas’ Wasp Network and Pietro Marcello’s Cannes 2022 title Scarlet. Nicolas Bedos’ Mascarade is currently topping new releases at the French box office and sold worldwide across the globe via Pathe. Orange Studio’s catalogue houses more than 1800 films and series.
The Canal+ and OCS deal still has to be approved by the French competition authority which notably blocked the merger of French media groups TF1 and M6 last year. The same French competition authority also previously blocked a 2011 attempted by Canal+ Group and OCS to launch a joint premium pay channel. However, that occurred before the launch of US streaming services in France.
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