25/11/2008

There are strong concerns among French professionals, as the National Assembly today starts to examine the public audiovisual reform bill, which provides for the removal of advertising on public television (between 8pm-6am as of January 5, 2009 and definitively by the end of 2011), the government appointment of the head of France Télévisions, and a second cut to advertising on private networks during the broadcast of dramas and films.

The financial consequences of this change to public TV budgets (a loss of €450m in advertising income) should in theory be offset by a tax of 0.9% on the turnover of telecom operators and a 3% taxation on the advertising revenues of private television networks. However, the amendments adopted by the committee deputies have transformed these two potential funding sources into variable taxes that may fluctuate between 1.5% and 3% for the latter and 0.5% and 09% for the former.

These modifications – which will be the subject of a debate (until December 4) and vote in the Chamber of deputies – have aroused anger among French film and audiovisual professionals. Several former members of the Copé Committee (Marin Karmitz, Hervé Chabalier, Marie Masmonteil, Nicolas Traube...) – who were instructed by President Sarkozy to reflect on the future of public TV – have expressed "a feeling of betrayal" and denounced "a flawed strategy and uncertain financing system".

The Society of Film Directors – who believe that "the reform will drain the resources of public TV whilst making outright gifts to private networks" – demand that "the law include a funding guarantee" in order to "secure the budget for France Télévisions, regardless of the fluctuations in the advertising market." This request is echoed by the ARP (Association of Authors, Directors and Producers) who would also like to see (along with the SACD and SCAM) "the calculation of the necessary financing for France Télévisions carried out by an independent authority."

In terms of film, France Télévisions are obliged to pre-finance European films using 3.2% of their turnover (€52.9m in 2007), and this is set to increase to 3.5%. Public channels have also pledged to broadcast at least 420 features per year (including 200 in the early evening).

(Translated from French)