By Gwénaëlle Barzic
PARIS (Reuters) - Vivendi's Canal+ on Monday said it agreed a deal to add Netflix (NASDAQ:NFLX) shows to its television bundles in France and elsewhere to retain subscribers, as pay-TV firms counter pressure from streaming giants by striking alliances with them.
The companies said the new Canal+ TV bundles, integrating Netflix productions like its hit "Stranger Things" show, would be available in France from Oct. 15, and rolled out at a later date in markets like Poland.
Pay-TV groups have come under pressure globally as viewers switch to online video platforms often offering cheaper packages and churning out original productions, with "The Crown" maker Netflix leading the pack.
Some are responding by striking deals with Netflix and other platforms to add content and keep clients from switching off, including Comcast's Sky in Britain, even if it allows streaming firms make further inroads in their market.
"People have already subscribed to Netflix, it's unavoidable," said Francois Godard, European media and telecoms analyst at Enders Analysis.
By grouping shows from other providers, pay-TV firms might benefit as viewers browse on one platform and stumble across their content, he added.
Canal+ - which has suffered after losing some broadcasting rights in recent years, including French Premier League matches in the coming months - has produced critically-acclaimed series like "The New Pope" starring Jude Law, alongside Sky and HBO.
But it is still losing subscribers - it has been overtaken by Netflix's 6 million in France - and reported falling revenues in the first half of the year.
Netflix's deal with Canal+ is the first of its kind in France, though the Calif.-based streaming group's films and shows are already distributed via deals on Internet service providers like Orange.
These tie-ups have picked up in recent months as Netflix tries to shore up its position. It is under pressure too as Apple Inc (NASDAQ:AAPL) launches its streaming service in November and Walt Disney (NYSE:DIS) steps into the fray with Disney Plus.
"(Netflix) is stepping things up in order to occupy this space as much as possible before others show up," said Philippe Bailly, of French digital consultancy NPA Conseil.
It is still unclear how much pay-TV groups will succeed in winning back clients as a result of such deals. Netflix has some 10 million subscribers in the United Kingdom, roughly the same as Sky, Enders' Godard said.
The Canal+/Netflix bundle deal will initially cost 35 euros a month, including the Canal+ subscription fee. Netflix offers its services for between 7.99 euros a month and 15.99 euros in France.
Pay-TV groups are betting consumers will prefer to have a one-stop shop.
"It is going to be very expensive for customers to buy everything," Canal+ Group CEO Maxime Saada told reporters.