BREAKING: Netflix is trying to find a compromise after news that its first features accepted into the competition slate of Cannes — Okja and The Meyerowitz Stories – quickly drew the ire of France’s theatrical exhibitors guild. In a letter, the FNCF accused Netflix of skirting French regulations and fiscal obligations and called on the streaming service to release both movies in French theaters following their Cannes premieres.
That bucks up against the foundation of Netflix’s business model, which is first and foremost to provide product for its global streaming audience. At issue is France’s Media Chronology Law, which keeps films released in French theaters from playing on SVOD platforms for three years. On its highest profile titles, Netflix has accompanied releases with limited theatrical runs in the U.S., and that is essentially the compromise it seeks in the French marketplace.
The company this morning issued this statement: “We are working to protect great cinematic storytelling, like that of Okja and The Meyerowitz Stories (New and Selected), that will connect films with audiences that will love them. Consumer choice and improved distribution options have helped to make this the most vibrant time in the history of cinema for fans and filmmakers alike, and above everything we want to offer our subscribers in France the opportunity to watch these films wherever, whenever they want — like the rest of our members around the world. We are certain that French film lovers do not want to see these films three years after the rest of the world. With that said, we are exploring theatrical distribution of these two films in France, for a limited theatrical run, day and date with the films’ release on Netflix. We are thrilled to explore any and all options that will give these films an opportunity to be viewed by as large an audience as possible, on a variety of screens, because similar to French exhibitors, we want to continue to contribute to the development and financing of films.”
It remains to be seen how the Netflix gesture will be greeted by the French film community, which like some other European territories has its own long held customs that seem odd to the Hollywood business model, including the prohibition of P&A spends for TV commercials to promote theatrical releases. Cannes is a big step in legitimizing the feature film program of Netflix, which in past years didn’t have its films accepted at the festival in comparison to Amazon Studios (whose model allows for wide theatrical releases). Amazon had five titles in last year’s festival lineup, including Woody Allen’s fest opener Café Society.
By exploring a day and date theatrical release in France, Netflix is hoping the compromise gets around triggering the 36-month SVOD ban law. The idea is to give French theatergoers the chance to see the films by prestige directors Bong Joon-ho and Noah Baumbach, at the same time as its streaming service providers. It’s another local customs obstacle that Netflix has had to overcome as it has grown a streaming service that is now in 198 countries, and is making a deal with a third party in China to show some of its product in that country.
There are other issues that the government-subsidized film industry has with Netlix, which it has accused of using a movie festival as a promotional tool after shuttering its Paris office last year and gaining advantage over other distributors that contribute to the French film ecosystem. But the streaming service is hoping this starts a dialogue on the most pressing issue at hand, its Cannes films.
