Tuesday, July 29, 2014

CSA refuses the transition to DTT LCI, Paris Première … – Le Figaro

CSA refuses the transition to DTT LCI, Paris Première … – Le Figaro

VIDEO – Besides subsidiary of TF1, the CSA also refused the passage of the pay DTT DTT to Paris Première (M6 Group) and Planète + (Canal + Group). Of reaching decisions.

Higher Audiovisual Council (CSA) has made a momentous decision accordingly. CFS members deliberated for finally deciding to refuse block passages in DTT three channels: LCI (TF1), Paris Première (M6 Group) and Planète + (Canal + Group). Sages have made this decision in the light of three economic criteria. First, they argue that the state of the advertising market is “characterized by a marked decline in revenue” and that this situation is unlikely to change in the short and medium term. The TV advertising market shrank by 3 to 5% per year does not allow, according to the CSA, to live three additional channels that would look between 20 and 30 million euros each. The second criterion considered is the competitive situation of the 25 current Freeview. The CSA believes that “many free channels are still fragile, especially those that are not backed by a large broadcasting group.” Finally, the third argument is less economical but more qualitative. The eight members of the CSA who participated in the vote (Christine Kelly being held abroad) estimated that the French audiovisual landscape is already rich 25 free channels covering a broad spectrum of needs – general channels, information channels (BFMTV and iTV) through thematic channels (Team 21, RMC discovery or Honey 25) – was already sufficient

So much for general considerations.. In detail, the CSA found that the arrival of a third free news channel, LCI, “could destabilize both existing information channels” BFMTV and iTV. After the announcement, the CEO of LCI, Eric Revel strongly reacted by saying “appalled” and “shocked.” For its part, Paris Première “could affect the economic and financial viability of Freeview offering nearest size.” Finally the arrival of Planet + could affect other documentary RMC Discovery channel launched in 2012 and has not yet reached its financial equilibrium.

This is a triple failure for the three major groups audiovisual TF1, M6 and Canal + have however used the opportunity provided by the amendment to the audiovisual law in November 2013 allowing chains DTT ask them free passage. This amendment has raised hope for the three groups who made the observation that the business model of pay TV was deadlocked. These chains must spend a lot of money to stand and thus justify the payment of a subscription. But at the same time, distributors as CanalSat or ISPs drastically reduce the amount donated to these channels. And moreover, they can hardly attract advertising revenues due to a confidential hearing. The vicious circle is relentless.

But if the audiovisual law of 2013 gave hope to the PPV, in fact its purpose was primarily to strengthen the power of economic regulation of the CSA. Until the end of 2013, the CSA was obliged to allocate frequencies if they were available. And whatever advertising or competitive environment. This is the mechanism that led to the creation in December 2012 six new free channels. But the law of 2013, almost automatic mechanism gave way to power CSA decision based on an assessment of economic conditions. The CSA has acquired the power to say no. He made use today three times.


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