Distribute on Netflix or YouTube? European broadcasters chase online-only audiences

Netflix’s deep roster of content is due to get even deeper. Beginning next year, the streamer will carry shows from TF1, France’s leading broadcaster.

It’s a curious deal for a number of reasons — including that TF1+, the French broadcaster’s streaming service, is free, while Netflix isn’t, and its price keeps climbing. So why would French audiences turn to Netflix to watch TF1 content that they could watch for free elsewhere?

For one thing, it’s convenient. As those who face subscription fatigue know, having a store of content in a single place is easier than toggling between different platforms.

For Netflix, the deal is a way to try and gain market share in a market where they’re weaker than elsewhere. “If we look at their overall penetration in the market, it’s less than 50% in France, whereas if you compare that to the U.K. and U.S., they’re over 60%, so while they’re the biggest streamer in the market, it’s still relatively low compared to other Western European countries,” says Minal Modha, research director at Ampere Analysis.

It’s a low-cost way to gain access to new viewers at a time when big streamers are projected to increase content expenditure by only 6% this year. Live sports are also becoming must-have content for streamers and getting access to key events like the French national soccer team’s matches through the TF1 deal is a boon.

But broadcasters stand to benefit too. “By licensing their hit shows to global streamers, domestic broadcasters like the BBC or TF1 can cash in on content they’ve already made by making it accessible globally, bringing in more money for future productions,” says Andreas Ohlbach, head of client services at creative production company Transmission.

Ohlbach calls it “a smart and necessary move to stay relevant, reach new viewers, unlock funds and keep great stories alive in the streaming age.” That’s something Ben Woods, analyst at MIDiA Research, agrees with. “This is less of a marketing play for now and more of a distribution strategy play,” he says.

TF1 isn’t alone. In the U.K., ad-supported broadcasters Channel 4 and ITV have uploaded their content to YouTube for free. The risk is that they become dependent on YouTube traffic for their future, just as web publishers became dependent on Google Search traffic.

“As soon as you enter into the world of YouTube, you’re playing by the rules of YouTube, and that is that you have to play within the algorithm,” Woods says.

Walled gardens backed by Big Tech dollars can be a welcoming place at first, but there is a risk that in trying to reach a wider audience, traditional broadcasters may cannibalize their own business.

“When it comes to engaging with a platform like YouTube, there are benefits, but there are also risks and sacrifices for the broadcasters,” Woods says.

The broadcasters themselves disagree. “When content drops on YouTube after appearing on linear and owned-and-operated, we see an uplift,” said Karla Berry, head of distribution and partnerships at Channel 4.

CEO Alex Mahon points out that Channel 4 helped pioneer a partnership with YouTube, directly selling its advertising products against the content it hosts on YouTube — which makes the deal worthwhile for them.

For any broadcaster dabbling with streaming platforms, there’s a sense of experimentation. “What people are basically doing with this YouTube partnership at the moment is experimenting to see which of these windows work most effectively without cannibalizing their own audience,” Modha says.

The word “experimenting” is key: Both broadcasters and streamers alike are making deals in hope rather than expectation. “I would say, ‘Watch this space,’” Modha says. “I would imagine it is the beginning of far more partnerships with YouTube and broadcasters across the space — and also with Netflix.”