Netflix is preparing to launch its Video-On-Demand service in several European TV markets in September – including France.
The buzz in Paris is a mix of “can’t wait to get access to better VOD” from French TV consumers who are currently limited to two main VOD operators: Canal Plus and Orange TV. Meanwhile, in the circles of Canal and Orange TV execs and the government officials who regulate the French TV market, the mood is less upbeat.
First, they will have to forgo their oh-so-important August vacation to prep for the Netflix onslaught in September – such an ill-timed “faux pas.”
Second, they are madly scrambling to counteract the onslaught from the Wild West. They sense that Netflix’s success in the U.S. is at least partly driven by these irritating tech innovations that only Silicon Valley can produce. They are clearly scrambling to get up to speed with the latest and greatest TV platform and services – and that is a great opportunity for us, TV tech entrepreneurs, who have developed innovative techs that can help bridge the gap. Thank you Netflix!
As a French entrepreneur in Silicon Valley and cofounder of the TV startup www.seespace.co, based in San Francisco, I found myself in an interesting position when discussing tech partnership opportunities with French TV providers in the past few weeks. The French media goliaths and their government supporters have a natural tendency to use cultural arrogance to intimidate foreign partners – but they can’t do that with me, we have the same ‘French DNA’ and I know all their tricks.
At the same time, my activities as a tech entrepreneur in Silicon Valley – a place they view as a scary source of disruption for their comfortable Canal/Orange TV duopoly (rightly so) – forces them to pay attention. It’s fun to watch the behind-the-scenes mad scramble to catch up with the latest innovations from the land of Netflix.
The bottom line is that while they are in catch-up mode on the tech side, they also have lots of Euros in the bank to acquire whatever innovation they need, quickly. Plus, the French TV audience is still very French. While they enjoy a night out to the movies to see the latest US blockbuster, a good night at home for French families is this: whip out a good bottle of wine, turn on the ‘tele’ and watch a good French comedy.
That’s the market Neflix is going after. In the short term it will be hard for them to compete on French content. Their market advantage lies in the key features derived from the superiority of their tech platform, such as their famed “recommendation” feature.
