To have the ability to have fun their marriage in early 2023, TV teams TF1 and M6 should totally persuade the competitors authority of the deserves of their union, or danger canceling every thing in a sector disrupted by US platforms. Hearings are organized on Mondays and Tuesdays by this establishment, with the intention to negotiate with the chains and their homeowners – the Bouygues teams and RTL (affiliated with the German Bertelsmann firm) – and to query opponents and representatives of the sectors concerned. The discussions are anticipated to be lengthy, as opinions on the merger are very divided. A report – not public – from the authority’s investigation companies has additionally darkened the prospects for the challenge, which was introduced in Might 2021.
The merger between TF1 and M6 will already create a French tv large, with about 4 billion euros in turnover. With 75% of the TV promoting market share, the chance is that it’s going to turn into inevitable for advertisers and that it’s going to considerably influence the already conflicted marketplace for channel distribution, in addition to for the acquisition of audiovisual programmes. For Autorité, these are “important competitors points”, except essential cures are imposed.
broadcast platform resistance
Unacceptable to the 2 teams, which intend to affix forces with the intention to stand up to competitors higher than the streaming gamers (Netflix, Disney, Amazon and even Youtube and Tiktok) who eat up their watch instances and entice extra advertisers. It was acknowledged on the finish of July that “the character and extent of the cures sought within the investigation report will trigger the events’ draft to lose all relevance, which it can abandon on this case.”
TF1 and M6, which count on to generate between €250 and €350 million in “synergies” because of their merger, responded to energy in mid-August by providing extra restricted franchises, specifically the three-year separation of their promoting businesses. Creation of a separate Division of Radio (which might mix these of RTL and Indés Radio, operated by TF1). “It would actually be essential to go additional” to make the ability school give up to AFP, a supply acquainted with the matter informed AFP. In line with her, the sale of such a secondary channel as W9, which would cut back the promoting market share by just a few share factors, is now not dominated out.
The faculty — made up of 17 members together with judges, lecturers, attorneys, enterprise leaders or shopper representatives — will make its determination in mid-October. The entire subject is whether or not it intends to redefine the video promoting market, by integrating the worldwide broadcasting giants, which is able to mechanically scale back the load of the French gamers. The federal government additionally has the chance to override the refusal by the fee if that justifies the explanations for the general public curiosity.
“If this operation doesn’t happen, will probably be an enormous failure for France, which has had the chance to point out the way in which in Europe,” mentioned Nicolas de Tavernost, head of the M6, appointed to steer the brand new entity. It might even be a critical blow to the 2 teams, who must evaluation many tasks. Specifically, they offered TFX and 6ter channels to Altice, which thus hopes to turn into the second largest TV advert operator, and purchase France Télévisions shares within the Salto platform. TF1, for its half, has already withdrawn from a sure variety of actions related to on-line advertising and marketing and journalism. Lastly, Bertelsmann must discover a new purchaser for the M6 as quickly as doable as a result of the channel’s broadcast license expires in Might 2023. As soon as renewed, any change in shareholder will probably be blocked for five years.