Too Much TV: Netflix Is Not Creating A 'New Cable Bundle'

Short version: don't believe everything you read about the "new cable bundle"

Here's everything you need to know about the world of television for Wednesday, June 18th 2025:

THIS IS NOT THE 'NEW CABLE BUNDLE'
Just about every entertainment news outlet had a headline yesterday that was some variation of "Netflix Reinvents The Cable Bundle." There was plenty of snark to go around, but the news was that Netflix had signed a deal to carry TF1 channels on its service in France. TF1 is one of the two largest private broadcasters in France.

The agreement, revealed in Cannes, provides integrates TF1’s five linear channels (TF1, LCI, TMC, TFX and TF1 Séries Films), as well as content from the TF1+ platform, into Netflix users’ existing subscriptions. Netflix has existing agreements with various global broadcasters, notably Canal+, which distributes the platform in its offerings. This is the first time an agreement approaches a partnership from the other direction, in which a broadcaster is bringing its content to Netflix.

I repeat this every time another round of "reinventing the cable bundle" stories come around. Combining a streamer with some linear channels doesn't make it the "new cable bundle" any more than me buying a van and transporting some kids to their baseball game makes me the "new mass transit."

The cable bundle had value because it was a closed system that was essentially a semi-monopoly. If you wanted to watch your favorite cable TV channels, you either subscribed via your local cable system (which in most communities was a monopoly) or you signed up to a satellite TV service. You were a captive with no other options.

On the other hand, on of the primary advantages of streaming is that subscribers aren't tied into a closed viewing universe. You can leave whenever you want and subscribe somewhere else. A fact which also means streaming is a lower-margin business than the old cable bundle, but that's another issue.

So Netflix adding some linear TV channels is not the beginnings of a new cable bundle. And I'll also argue that France has some very specific challenges for any streamer, so you should not look at what is happening in France as a guide to what might eventually happen in the rest of the world.

A perfect example of that is Netflix Direct, a 24-hour programmed channel that appeared on Netflix in France in 2020. Direct offered what looked a lot like a traditional television channel, but programmed with the most popular Netflix content in France. When it premiered, there were all sorts of headlines in the United States entertainment press that Netflix was "recreating the cable bundle" or "moving into the linear TV world."

If you're not familiar with Netflix Direct, that's because it only lasted a couple of years before being pulled and it was never ported into other regional Netflix versions. It was a failure, which happens more than most people realize.

Now we have this deal with TF1 and it is a significant deal for the two companies. Although without knowing more about the details of the deal, it's hard to get sense of what it will mean financially for other side. But what is clear is that the laws governing both streaming and linear television in France are some of the most comprehensive and intrusive guidelines in the world. And this deal seems to reflect the reality of those laws. As well as a way to try and mitigate some of the financial costs.

This is a bit complicated, so many apologies in advance. In 2018, the European Union passed the Audiovisual Media Services Directive (AVMSD), which required that streamers carry 30% of European works, and gave the possibility to each country to implement local versions tailored to their requirements.

In France, the SMAD (Service de Media Audiovisuels à la Demande) decree was passed in mid-2021. Under that decree, both streamers and traditional broadcasters had to strike deals with with regulatory body ARCOM and agree to a certain amount of local and European film and TV production across drama, animation and documentaries, including independent production (in which producers retain IP).

According to the decree, streamers who reach a €5m revenue threshold and a 0.5% audience share in France must invest 20% of their French revenues in domestic and European productions.

Another wrinkle of the French regulatory system is that around two-thirds of that 20% investment needs to be spent on independent productions, in which the commissioning company (for instance, Netflix) does not retain IP.

And then there are the theatrical films. The current regulatory framework in France mandates that no theatrically released film is allowed on streaming services unless it is more than three years old. That regulation led to Disney skipping the theatrical release in France of several of its recent movies, so it could send them straight to streaming in that country. In fact, the law mandates theatrical films first appear on traditional TV channels before heading to streaming.

But remember at the top when I said that each streamer or traditional broadcaster could cut their own deal? Netflix managed to recently come to an agreement with CNC that means the streamer only has to wait 15 months after a theatrical release before making it available. That deal came about because Netflix promised to financially contribute to French cinema, which includes Netflix investing in smaller films whose budgets are less than €4 million.

I went through all of this so that you would understand that the French TV and streaming market is extremely regulated and very complicated. Which makes this Netflix/TF1 deal a lot more nuanced than "Netflix is recreating the cable bundle."

The other interesting fact is that TF1 launched its own streaming service - TF1+ - in January 2024 and that service will apparently continue after the Netflix deal begins.

So what is going here?

While a lot of details haven't been released, this Netflix/TF1 deal isn't so much about Netflix adding TF1's linear channels. It is getting what is essentially a scaled down version of an ad-supported TF1+. That platform includes a deep on-demand catalog and a number of FAST channels, both of which don't appear to be part of the Netflix deal. So this isn't so much "Netflix is now including linear channels in France." It's more along the lines of what it would look like if Netflix began carrying Paramount+ content in the U.S., including Paramount's live linear channels.

The deal likely has some upsides for both companies. It gives TF1 an extended reach for its programming, which is helpful when it comes to selling advertising. And Netflix is able to stream a number of American and European shows licensed by TF1 that it currently doesn't have the rights to in France.

But more importantly for both companies, this deal makes it easier for both sides to lessen the impact of the fairly restrictive French rules governing both streaming and traditional broadcast services. Netflix and TF1 are currently co-producing a number of projects together, which allows the two companies to split the production costs while still booking the full value of the productions against the French production requirements. Currently, Netflix doesn't have the French streaming rights to their co-productions with TF1, but French subscribers will now be able to watch the productions via the TF1 linear channels.

It's also a plus for Netflix that TF1 currently has a substantial live sports business, although it has shed some of those rights in recent years. Combined with Netflix's growing portfolio, that provides subscribers with a steady stream of live sports content.

The bottom line is that this Netflix/TF1 deal is important. And if it's successful, it might serve as a blueprint for Netflix in other European countries.

But it is NOT an effort to "recreate the cable bundle," a business model which was always much more popular in the United States than in other places around the world.

ODDS AND SODS
* It's striking how some of the cable TV news coverage of a possible war with Iran contrasts with what happened leading up to the Iraq war. Now, anchors like Chris Hayes (who covered that lead-up to the Iraq War) have been vocal about their skepticism over the reasons why it's necessary for a "regime change" in Iran. Contrast that with Phil Donahue, who lost his MSNBC show in 2003 after being seen by network executives as not being sufficiently "pro-Iraq War." The Donahue exit was my first bit of reporting that received national attention and here's a piece from last year that recaps that story.

* Season 41 of The Challenge will premiere Wednesday, July 30th on MTV.

* Making fun of the cluelessness of the Democratic Party might can sometimes be too easy to do. The DNC apparently decided the party needed a regular presence on YouTube. So they are producing a daily morning "news" program called Democrats' Daily Blueprint. I don't know if the blueprint includes any good ideas, but even if it did, no one is watching. Yesterday's edition has so far grabbed an unimpressive 855 views.

* Netflix has renewed the loathsome series Bad Thoughts for a second season.

* A House of Dynamite, the next movie from The Hurt Locker Oscar winner Kathryn Bigelow, will hit theaters in October and stream on Netflix on October 24th.

* The Rookies will join the lineup of FETV on Sunday, July 6th.

TWEET OF THE DAY

WHAT'S NEW TONIGHT AND TOMORROW

FRIDAY, JUNE 20TH:
* Grenfell: Uncovered (Netflix)
* K-Pop Demon Hunters (Netflix)
* Middlehood Series Premiere (Plex)
* Noah's Arc: The Movie (Showtime)
* Now Or Never: FC Montfermeil (Max)
* Olympo Series Premiere (Netflix)
* Planet Weird Series Premiere (NatGeo Wild)
* Semi-Soeter (Netflix)
* Shattered Vows (LMN)
* The Bravest Knight Season 2B Premiere (Hulu)

SATURDAY, JUNE 21ST:
* Dateless To Dangerous: My Son's Secret Life (Lifetime)
* Nickelodeon Kids' Choice Awards 2025 (Nickeldeon)
* The Great Indian Kapil Show (Netflix)

SEE YOU ON FRIDAY!