TF1: Netflix, contract worries hit stock
03/04/2018 14:14
(Adds information on EuropaCorp and Netflix)
** Shares in French broadcaster down 7.2 pct, on track for
their worst day in >8 mths
** Kepler Cheuvreux analyst Conor O’Shea points to reports
Netflix NFLX.O is in talks to buy French film co EuropaCorp
ECP.PA , whose share price is up 30 pct today urn:newsml:reuters.com:*:nL5N1RG1DC
** O’Shea says buying EuropaCorp could increase Netflix's
production of local language content; a lack of local language
content has held Netflix back in France since its launch, O’Shea
says
** "I think the stock is still taking a hit from the
company's bad relations with Canal+ and Free," says a
Paris-based trader
** Co has been in conflict with telecoms operators as it
wants remuneration for the distribution of its free channels;
this conflict is ongoing with Free, a subsidiary of Iliad
ILD.PA
** Contract between Free and TF1 ended on March 31; TF1 says
its channels are still being broadcast by the operator for the
moment
** French railway services see the first day of rolling
nationwide strikes on Tuesday urn:newsml:reuters.com:*:nL5N1RG0IJ
**"You have the return of strikes in France which always
makes international investors uneasy, TF1 is a macro play," says
O’Shea.
** O’Shea also says it is possible that some long TF1/short
Mediaset MS.MI positions are being unwound after the Italian
company’s announcement of a content-sharing deal with Sky's
SKYB.L Italian unit urn:newsml:reuters.com:*:nL5N1RG1AY
((RM: alan.charlish.thomsonreuters.com@reuters.net,
blandine.henault.thomsonreuters.com@reuters.net,
gwenaelle.barzic.thomsonreuters.com@reuters.net))