Netflix: directors to politicians… Reed Hastings lobbying in Paris

Champagne and party favors. Friday, January 17, Netflix celebrated with great fanfare its installation in Paris. Anne Hidalgo, the mayor of the capital, and the Minister of Culture, Franck Riester, were on their 31st to welcome Reed Hastings, the emblematic creator of the Californian giant and his new employees, their heads still in the boxes . But these festivities were only a pretext. The owner of the online subscription video platform took advantage of his stay in France to meet many film and television professionals.

The day before the inauguration of his Paris offices, the founder of the American firm received for dinner a handful of prestigious guests, handpicked. Producers of films and series, rapper Kery James who signed "Banlieusards" for the platform, director Jean-Pierre Jeunet who will direct his eighth feature film for Netflix or the general delegate of the Cannes Film Festival Thierry Frémaux. "We mainly talked about cinema and series", summarizes a participant. "On all the other subjects, Reed Hastings made the tongue of wood," adds another. "I still reminded him that he could make money by going to the movies, but he didn't change his mind. He always wants to offer his content above all on Netflix… ”, says Pascal Rogard, boss of SACD, the society of authors.

This visit to Paris was also an opportunity for Reed Hastings to tour the grand dukes. Friday, January 17, he visited the president of the National Cinema Center (CNC), before seeing that of the Superior Audiovisual Council (CSA), Monday morning. On that day, he mainly met with the President of the Republic, Emmanuel Macron, on the sidelines of the "Choose France" summit, of which he was one of the star guests. In Versailles, he also met face-to-face with the Minister of Culture Franck Riester.

“Concerned about the law on the audio-visual in progress”

To all, the manager assured that investing in France was at the heart of his strategy: he plans to launch around 2020 three-color productions (series, documentaries, etc.). However, he asked for equal treatment, in particular with French television channels. “Reed Hastings would agree to have a model similar to that of Canal +. This means that it must be authorized to offer films six months after their theatrical release and to have a reduced VAT of 10% and not 20% as today, "breathes one of his interlocutors.

With 6.7 million subscribers in France and ten Oscar nominations won by "The Irishman" by Martin Scorsese, the CEO of the Californian company could be serene. But these successes make him more determined than ever. “He is very concerned about the audiovisual law being prepared in France. The State wants to force it to produce in France and it fears that the other European countries will then align themselves with French law, ”breathes an expert.

Reed Hastings also ensures that its competitors Disney +, Apple and Amazon Prime have the same obligations. Because in his law, Franck Riester wants all of these subscription-based video-on-demand platforms to commit, like television channels, to finance tri-color production at least up to 16% of their turnover. And up to 25% for those specialized in fiction and cinema, like Netflix. Reed Hastings negotiates this rate and, in return, tries to obtain a relaxation of the "media chronology".

Tight negotiations

He would like the time between a theatrical release and broadcasting on Canal +, on free channels and finally on platforms like Netflix to be shortened. Currently, the regulations are very favorable to the French encrypted channel and very unfavorable to the American platforms. "The chronology is no longer suitable, it will have to be reformed in parallel with the law and negotiate with Netflix", advocates Pascal Rogard of the SACD. What about VAT? "The subject is not topical," says one rue de Valois.

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MP Aurore Bergé (LREM) is optimistic. "Our bet is that with seven million subscribers, Netflix cannot do without France, and even less of our creators who are recognized worldwide. The discussions will not be easy but they will succeed, "explains the one who wants at all costs that the producers of series have rights to the fictions they produce and that the platforms are transparent as to the payment of the royalties of the screenwriters. In short, the negotiations are more than tight. In the meantime, two "facilitators" have been appointed by the Ministry of Culture. Including the great diplomat Pierre Sellal. It takes at least that to coax the king of the series and the com '.