No more advertising on state-owned France TV starting in 2011
April 14, 2008
State-run France television networks will stop running commercials by the year 2011, phase-out begins next year
The changes will begin in France starting in 2009. In the French plan, all advertising on the French public stations will phased out by 2011, to coincide with the final switch from analog to digital technology on TV in France. Commercial,provately owned TV stations in France would still run advertising; in fact they would now have a semi-monopoly as more advertising revenue would go to them when government-owned stations France would no longer accept commercials. However, they would pay part of this revenue back in a tax that would help offset the advertising money lost to France-run stations, said President of France Nicolas Sarkozy. Advertising revenue now brings in around 800 million Euros per year for France’s public TV channels, representing 40% of their total budget. It is unclear how much of this would be offset by taxes on privately-held TV in France, French government subsidies, or new taxes on individuals.
Shares of the French commercial broadcasters TF1 and M6, which compete with the government-owned France Télévisions for advertising, spiked on Jan. 8 after Sarkozy first introduced his proposals
In a speech February at the inception of the French commission headed by French National Assembly leader Jean-François Copé to research the recommendations being implemented today, Sarkozy envisioned a French public liberated from what he called the “tyranny” of advertising on French TV. But the President of France said at the time that there were no plans to privatize any channels as part of a planned overhaul of public television, and so far has kept true to his word.
The plan would be an “innovation without precedent” for the audiovisual industry, resulting in “a cultural revolution in the public-television service,” Sarkozy said. He added that the move would “support French culture.” Sarkozy did add that the French government might also introduce a tax on Internet access and mobile communications to finance ad-free state TV in France, though the French president called the possible tax “infinitesimal.” People in France who own a television already pay a yearly tax for the privilege.
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