Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Investing.com -- Netflix’s new partnership with French broadcaster Television Francaise 1 SA (EPA:TFFP) to carry live content on its platform has sparked speculation about the company’s potential role as an aggregator of linear channels.
While the model offers an intriguing blend of live and on-demand streaming, analysts at Barclays (LON:BARC) argue that replicating it globally may be difficult due to diverse market dynamics and regulatory environments.
In France, Netflix (NASDAQ:NFLX) already operates a linear-like stream of its own content and faces a local content quota. TF1’s feed could help meet these requirements, and with French regulations prohibiting retransmission fees, the broadcaster benefits more from maximizing ad revenue through broader distribution.
“From TF1’s perspective, the regulatory structure in France doesn’t allow retrans/affiliate fees unlike the U.S. but pay TV providers like Canal+ have must carry requirements for broadcast,” Barclays analysts noted.
On the other hand, the U.S. landscape presents several challenges. Broadcasters there rely on retransmission fees that can run $20–25 per month—well above Netflix’s average revenue per user—making such arrangements costly.
There are also complex distribution agreements and licensing constraints that limit content availability across platforms. As Barclays notes, “even if other hurdles can be overcome, Netflix would have to charge significantly more to offset retrans/affiliate fees that it would have to pay the broadcasters.”
Some emerging markets with free-to-air broadcast models—such as Germany, Japan, and parts of Latin America—might be more conducive to such integrations.
However, many of these regions already provide similar access through existing services like Freeview in the U.K. or Hotstar in India, which is often Netflix’s direct competitor.
Still, the France experiment introduces a concept of “inverse bundles” where Netflix becomes a central hub offering both streaming and live content. This differs from traditional bundles focused on billing and price.
“We have long talked about the need for experience bundles where the value proposition would arise from lower consumption friction and ease of discovery,” Barclays analysts continued. “Netflix/TF1 structure suggests the possibility of inverse bundles where the streaming service itself becomes an aggregator.”
While the scalability of this model is still in question, the strategic appeal is there. Barclays notes that Netflix has the potential to offer linear networks in a format similar to traditional pay TV, though such a move could come with challenges, including increased variable costs and the risk of undercutting content partners’ own streaming efforts.