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Removing the ad after 20 p.m. is "not a good solution", according to France Télévisions

2023-06-07T16:03:34.301Z

Highlights: Since 2009, advertising has been prohibited on France Télévisions between 20 p.m. and 6 a.m., but advertisers can still sponsor programs. The report of MEPs Jean-Jacques Gaultier (LR) and Quentin Bataillon proposes to abolish, as well as advertising on the digital platform. According to them, their removal should be compensated by the State, via a share of the tax on digital services that hits the streaming giants. The public group said that this measure would not benefit private channels, but rather "American platforms" such as Ne.


The public group said that this measure would not benefit private channels, but rather "American platforms" such as Ne


Since 2009, advertising has been prohibited on France Télévisions between 20 p.m. and 6 a.m. But advertisers can still sponsor programs: it is this possibility that the report of MEPs Jean-Jacques Gaultier (LR) and Quentin Bataillon (Renaissance) proposes to abolish, as well as advertising on the digital platform of France Télévisions.

According to MEPs, sponsorship and digital advertising from 20 p.m. to 6 a.m. represent "almost a third" of France Télévisions' advertising revenue (€392.8 million in total). According to them, their removal should be compensated by the State, via a share of the tax on digital services that hits the streaming giants.

No deletion without compensation

The sums targeted correspond to "0.8% of the total advertising market" French, or "a drop of water", said the management of France Télévisions, ensuring that a suppression would have an impact "almost zero" on the revenues of private channels. The postponement would be for the benefit of "American platforms and Chinese social networks" such as Netflix, YouTube or TikTok, argued the management of the public group.

For the authors of the report, this measure would be a guarantee of "differentiation" between public and private channels, argued Jean-Jacques Gaultier, for whom "there should be no suppression if there is no compensation". During the press conference presenting the text, he considered that "the spirit of the 2009 law has been circumvented" by sponsorships. "The French were a little deceived," added Quentin Bataillon.

So why not push the logic and completely remove advertising on the public service, at all hours? In budgetary terms, "the march is a bit high," conceded Jean-Jacques Gaultier.

A financing mechanism: the VAT fraction

The subject is sensitive for France Télévisions, recently accused of unfair competition by the Association of Private Channels (ACP), which brings together TF1, M6, Canal + and Altice (BFM, RMC). Beyond the issue of advertising, the management of France Télévisions sees "many positive elements in this report". It considers it crucial that the text recommends lifting the budgetary constraints that have weighed on public broadcasting since 2018.

Another positive point according to France Télévisions: the report's desire to perpetuate the current mechanism for financing the public service, via a fraction of VAT. This transitional mechanism has been in place since the abolition of the fee last year but is due to end in early 2025. The entire public broadcaster considers it preferable to funding directly from the state budget, to avoid untimely cuts in funding and criticism of the lack of independence.

" READ ALSO "Wild advertisements" projected on the walls of Paris: the City wants to counter these "aberrant practices"

However, this requires amending the organic law on finance laws (Lolf, the "financial constitution" of the France), said Jean-Jacques Gaultier, adding that he had tabled an organic law to this effect on Wednesday. Finally, France Télévisions reiterated its scepticism towards the creation of a holding company that would oversee all public broadcasting, a hypothesis put forward by the report.

Source: leparis

All business articles on 2023-06-07

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