The commercial launch of SVoD platform Salto has been scheduled for the first quarter of 2020, after the joint venture received the green light from the French competition authority, subject to conditions. In a statement, France Televisions, M6 and TF1 said that their initiative will provide a French answer to new expectations from TV viewers, in light of competition from international streaming platforms.
In July, the three broadcasters made significant commitments to the competition authority to get Salto approved. The list of concessions has since been revised significantly following talks with market players concerned by the launch, including French operator Free.
The competition watchdog issued a preliminary summary of the conditions for its approval, with the details of the decision to follow in the near future. The measures to guard against anti-competitive coordination between the parent companies will apply for the life of the venture, while others addressing more specific issues will be enforced for a period of five years.
In line with the commitments made in July, the three partners have agreed to limit their opportunities for joint purchases of linear and non-linear content rights. The hours of programming that they can supply in exclusivity to the platform will be capped, and further restrictions will apply to commercial clauses on linear distribution rights acquired by the parent companies.
Independent experts will be appointed to ensure that the three broadcasters meet non-discrimination commitments towards third parties, by overseeing a mechanism that will fix the remuneration paid by Salto to its parent companies. Additionally, measures will be put in place to limit cross-promotional opportunities and ensure that the venture can only be advertised in a non-discriminatory way.
Salto's business model will be entirely based on paid-for services, which have yet to be unveiled. According to press reports, a basic monthly fee will give users access to enhanced catch-up services for the catalogue of programmes owned by the parent companies, while a higher-tier subscription will offer extra content in competition with international platforms such as Netflix.
