TV commercials on their way out in France ?

February 20, 2008

President of France Sarkozy unveils plans to eliminate advertising on France Television stations starting in 2009.

President of France Nicolas Sarkozy proposed a revolutionary change in the world of television in France – no more advertising on French TV. At the French government’s institution of a new commission to study how this might be accomplished, launched at a speech on Tuesday, France’s head of state envisioned a French public liberated from what he called the “tyranny” of advertising on French TV. But Sarkozy said there are no plans to privatize any channels as part of a planned overhaul of public television. The President of France asked the new commission to look at the option of a special tax on private TV channels and telecom operators. The new commission will be headed by Jean-Francois Cope, a leader of Sarkozy’s conservative UMP party in France.

“There will be no privatization of France Television. No public service channel will be privatized,” said President of France Sarkozy, alleviating concern among public television workers.  In France, the main television and radio stations are state run, unlike public TV in the US, which is on the fringes of mainstream broadcasting. Private TV stations live alongside France Television on the dial. France also has a plethora of cable channels, both French and foreign.

After Sarkozy first said in January that he wanted to end advertising on state-run TV channels in France, there had been some buzz that the French government could sell one of the state-owned channels to a private company in France in order to offset the loss in advertising income.

Advertising revenue brings in around 800 million euros per year for France’s public TV channels, representing 40% of their total budget.
Sarkozy made this declaration to trade-union representatives of France Television and Radio France. He asked the 28 members of the new Commission (including 12 members of Parliament and 16 broadcasting professionals) to study two options: the elimination of any TV advertising in France starting January 1, 2009, or a weaning off advertising over time, with commercials running on public TV in France only after 8PM.  The president pledged that the losses to the networks in ad revenue would be made up for with public monies that would come from new funding sources in France. Sarkozy also confirmed that the revenue shortfall will not be lightened by a tax on private radios or newspapers in France. He also ruled out an increase in the audio-visual tax exacted on all people in France who own a television. However, he suggested that private TV companies in France might take up some of the slack, seeing as they would benefit from increased ad revenues.

He said the government of France would advance France Television stations a sum of money to demonstrate the state’s confidence in the public stations and to offset their advertising revenue shortfall, though without specifying a figure.

Sarkozy also said that the framework of the relationship between television producers and broadcasters should also be updated. Beyond financing issues, Sarkozy charged the commission with re-defining the identity of the public television in France, and to create conditions that would encourage higher quality programming n France, taking into account the wishes of the French public obtained in polls on the subject of French television. He added that the elimination of advertising was only the start of his plans to give the French public better television.

The President of France took aim at American series in particular, which are some of France’s most popular TV imports, principally because of the dearth of high-quality French alternatives. Sarkozy said his initiative was aimed at stopping the “steamroller” US TV series being run at low cost on French TV.

In true French form, Sarkozy’s new ad-free campaign prompted public service TV and radio employees to strike last Wednesday. Sarkozy’s first months as President of France have been punctuated with strikes in many sectors, as long-entrenched employees in France react to what they view as his radical reforms.

There was some official caution and dismay in reaction to Sarkozy’s grand plan. “There are some ads that do good things”, declared Jean-François Téaldi, a public utility union spokesman. And Carole Petit of the national Trade union of Journalists in France, pointed out that there was no clear explanation of how the move would actually be paid for. But president of France Television Patrick de Carolis, according to whom the elimination of ad revenue will cost public TV in France approximately 850 million euros, said he believed in the sincerity of the French government to support public TV in France, both financially and morally.

“I dream that we’ll be an example for the rest of the world,” declared the President of France of his new initiative. The commission is expected to report back with proposed broadcasting changes in May 2008.

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