Presentation

: VOD France - Philippe Leconte -

: Legal aspects and economic news of VOD and cinema in France by Philippe Leconte, head of legal affairs of French independant cinema company PYRAMIDE

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French Version

AVOD - Free VOD

Mercredi 3 décembre 2008
Three months later than originally planned, the e-commerce company Cdiscount lauches today its Free VOD offer, financed by advertisements. The films are downloadable for free and viewable an unlimited number of times during 15 days, after which the file becomes unreadable.

For this launch, 4 titles are offered:
A VERY BRITISH GANGSTER, released in theatres in France on 07/18/2007
SCREAM 3, released in theatres in France on 04/19/2000
RAINING STONES, released in theatres in France on 10/06/1993
LA VERITABLE HISTOIRE DU PETIT CHAPERON ROUGE, released in theatres in France on  01/25/2006.

The number of downloads is actually limited to 30.000, which is an important figure on the rental market, but a poor one on the TV market.

These films are offered during 7 days. Interestingly, the renewal occurs on Wednesdays, traditional opening day in theatres in France.

The first movie is therefore released on AVOD 16 months after its theatrical release, during the window traditionally reserved for Pay TV channels. This choice of chronology is quite surprising, since TV channels are one of the main revenue sources for rightholders, and it is doubtful that any TV channel accepted to buy the movie with a parallel AVOD exploitation.

This offer will certainly feed the media chronology debate in general, and the place of AVOD - Free VOD in particular.

Par Philippe Leconte
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Samedi 26 juillet 2008
The online shop www.cdiscount.com is allegedly to launch in September a free VOD service offering recent and catalogue films. The service would be financed by advertising (ads before / during the screening, logo inserted on screen...). Cdiscount would propose 4 free movies per month, one being specifically promoted during one week. In the beginning, the service would be accessible only on the Internet.

It is not quite sure that Cdiscount manages to convince enough rightholders to license AVOD (advertised VOD) rights to it. Indeed, the value of video, rental VOD and TV rights of a film proposed on AVOD is likely to decline strong. In addition, the choice of the AVOD place in the media chronology is sensitive : exploited too early, the AVOD may destroy the value chain, and placed after the first exclusivity exploitations, the AVOD has a small power of attraction.

On may think that if the AVOD is very successful, the film value may be ruined and subsequent exploitations impossible. On the contrary, if the AVOD audience is poor, the advertisers will loose interest in it. Would the AVOD be condemned by it very characteristics?

Par Philippe Leconte
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