Bouygues SA share price down, to offer Netflix’s on-demand video streaming service for the first time in Europe

The telecom unit of France-based Bouygues SA launched the on-demand video streaming service of Netflix on its TV set-top boxes on Monday. This is considered a crucial step for Netflix, which will launch in France for the first time. The company also explained that it will feature access to Netflix directly through the viewers television in November on the already existing Bbox Sensation platform and future Android-based devices.

Netflix confirmed the collaboration and revealed in a statement that its subscriptions would start at €7.99 ($10.35) on a monthly basis and will provide customers with access to films, series and documentaries on television, computers and mobile devices, such as smartphones, tablets and game consoles.

As reported by RapidTVNews, Bouygues Telecom President and Director General Olivier Roussat commented on the deal: “We are very pleased to announce this deal with the SVOD worldwide leader.” Bouygues is going to enrich its offerings “giving access to the best innovative content, at home and mobile,” Mr. Roussat added.

The arrival of Netflix did not receive a warm welcome by most French telecom operators, which refused to offer the U.S. companys services on their triple-play boxes. Executives have revealed that the telecom operators and Netflix had failed to reach an agreement of financial terms.

Streaming video services have already been launched by the pay-TV operator Canal Plus, which is currently owned by Vivendi, as a response to Netflixs arrival in the country. The integration of the U.S.-based company could lead Bouygues competitors to follow, which could boost Netflix presence in France as the company is making its first expansion in Europe.

Bouygues SA lost 0.38% to trade at €27.60 per share by 11:13 GMT in Paris, marking a one year change of +1.41%. The company is valued at €9.30 billion. According to the Financial Times, the 14 analysts offering 12-month price targets for Bouygues SA have a median target of €31.00, with a high estimate of €35.00 and a low estimate of €25.00. The median estimate represents a 11.91% increase from the previous close of €27.70.