The second authority has approved FREETV's multi-channel television venture

The approval was preceded by a large number of discussions and a lot of pressure both from Keshet, which also petitioned the High Court on the matter, and from other players in the market who will be harmed by increased competition, the largest of which is HOT.

David Wertheim

22/06/2022

Wednesday, 22 June 2022, 16:38 Updated: 17:01

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The Council of the Second Authority for Television and Radio today (Wednesday) approved under conditions and restrictions Keshet's request to open a new multi-channel television platform project under the FREETV brand, which will operate on the Internet.

The Authority's announcement states that "this step will increase competition between content companies in Israel for the benefit of the Israeli public, while maintaining and strengthening the scope of local Israeli productions."

The approval was preceded by a large number of discussions and a lot of pressure both from Keshet, which also petitioned the High Court, and from other market players who will be harmed by increased competition, the largest of which is HOT. The cable and satellite recommended at the beginning of the week - also under restrictions - to approve the project.The approval under the conditions is for a limited period corresponding to the approval period of the Authority for competition or until legislation on the matter, whichever is earlier.

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Beit Keshet (Photo: Ortal Dahan)

The approval was made against the background of the entry and establishment of video streaming services of giant foreign companies (Netflix, Disney, HBO and others), without any regulatory obligations and without a commitment to Israeli culture and creativity.

The Second Authority Council has determined that there is also room for another Israeli provider, committed to Israeli work, which will contribute to both local work and increased competition in the television content broadcasting market.

The introduction of another multi-channel TV provider will increase competition for the consumer's pocket, expand the content supply and is expected to lower the prices of packages for the public.

As an integral part of the approval of the venture and the promotion of the competition, the Authority Council has set a number of conditions and restrictions that will ensure the protection of additional public interests, including preventing the leakage of free Channel 12 content to paid venture channels, except for Channel 12 broadcasts;

Preservation of the Israeli work by including Keshet's revenues from the project for the purpose of calculating the original production obligation and the elite genre of Channel 12, as well as anchoring Keshet's and the project's commitment regarding the project's investment in Israeli work to the extent applicable to HOT and yes.

In addition, Keshet is committed to broadcasting Channel 12 on any multi-channel platform it requests, and on the same terms as the venture.

At the same time, the venture will have to move the rest of the broadcast channels (9, 13, 14, 24 and non-TV) on the same screen and in the same order as those displayed on other platforms, without giving preference to channel 12 in the way it is presented.

Separation from the venture.

News 12 CEO Avi Weiss (Photo: Eyal Bo Yaish)

Fear: News dominance 12

Additional restrictions imposed by the second authority relate to the separation between Keshet News Company and the venture - an issue that arose in the opinion submitted by HOT on the subject, which focused on the power that News 12 has in the market and fears that Keshet would use pressure on politicians.

The Authority's decision states that there is a ban on the use of the enterprise in inputs (including employees of the news company) and products of the news company;

Also a ban on the appointment of a position holder in an enterprise (including an officer) insofar as it holds a position (including an officer) in a news company 12;

Prohibition of the venture's preference over its competitors in advertising and promotion in Channel 12 broadcasts, including in the advertising terms on the channel in comparison with the advertising terms of the venture's competitors.

Any investment and / or provision of any additional financing by Keshet in favor of the venture or RGE, as well as a change in Keshet's holdings in the venture or RGE, including the exercise of options, is subject to prior approval by the Second Authority Council.

It should be emphasized that the approval under the conditions given is for a limited period corresponding to the period set by the Competition Authority (2.9.2025) at the end of which, the Authority says, "the application will be re-examined, the market situation and interests of the Israeli public or until legislation,"

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