Is Sarkovision Public Broadcastings Future?

Michael Hedges June 30, 2008

Like pixels filling the screen from a slow internet connection, French President Nicolas Sarkozy’s picture for public broadcasting is either a tantalizing glimpse of the future-possible or too frustrating to watch.

The French President recently admitted that had politics not tempted his imagination he would have liked to direct a television channel. As post-modern life imitates imitation he is closer to his television dream. As more pixels are added it is perfectly clear his vision for French public broadcasting is a politicians dream.

President Sarkozy has, since January, been on a crusade to reform French public broadcasting in its totality.  A presidential commission chaired by Jean-François Copé delivered its plan last week. The two most apparent steps to that reform are changes in organization and finance. Less noted is the great leap backward in the public broadcasters’ independence. Following the Copé Commission’s report President Sarkozy  (June 26) decided to step even further, changing a few numbers and announcing that in the future the French president would name France Télévisions chief executive. By law – so far – independent media regulator Conseil supérieur de l'audiovisuel (CSA) names the president of France Télévisions.

Reforming public broadcasting, largely meaning television, is a mantra popular among politicians. At times of insecurity over prices, wages, health and air (think: garbage rotting on the streets) calls for ‘better’ television are easy pickings. Last week the Romanian parliament approved a measure calling for 50% ‘happy news’ on TV.

President Sarkozy’s reform plan for public broadcasting is the eventual elimination of advertising. He announced this in January and share prices of French private sector broadcasting companies immediately rose as investors and stock traders believed the ad spending would migrate to their coffers. Cynics called it a ‘Berluscrony’ plan, nodding at Italy’s serial Prime Minister Silvio Berlusconi bending rules to benefit his media business. But those share prices fell almost as quickly as advertising people opined that money spent with France Télévisions would more likely go to new media.  Over the course of these last six months share prices in French broadcasting and advertising stocks have been on a roller-coaster ride, traders and brokers not knowing exactly where the ride ends.

If President Sarkozy had any friends in private sector television, they’re gone now. Ad revenue lost to French public broadcasting would be made up by a 3% tax on private broadcasting revenues, as much as €80 million. In addition – and not inconspicuously – telephone (not limited to mobile operators) operators and internet service providers will be charged 0.9% of their revenue for the support of public broadcasting. And that bill – certainly passed on to consumers – would add as much as €380 million annually. Getting the money indirectly seems easier than raising the current French broadcast license tax on households although the Copé Commission recommended a 2 to 3 euro increase in the annual household radio and TV tax, currently €161.

Needless to say, some folks are quite upset. The unions have been upset from the beginning as reorganizing French public broadcastings’ institutions under a single roof – BBC-style – certainly means job cuts. “We are even more angry because of an unraveling of the measures proposed by Copé," said France Télévisions union spokesperson Jean-François Téaldi, quoted in Le Monde. “We no longer know where it goes.”

French telecoms, ISPs and private sector broadcasters know where this goes. Several indicated that if their lobbying efforts over the next few weeks fails to sway the French Parliament, it’s on to Brussels and the European Commission. The tax would be “both counter-productive and illegal” under EC state-aid frameworks, opined French Federation of telecoms general director Yves Le Mouel.

Info Society and Media Commissioner Viviane Reding is “not enthusiastic, ” said her spokesperson Martin Selmayr to a press gaggle in Brussels Tuesday (June 24). “For the European Commission, it's important to increase the purchasing power of European citizens and a further tax in Europe on a sector that drives growth isn't desirable.”

And we’ve yet to hear from Competition Commissioner Neelie Kroes, who has a track-record for making governments bleed over State aid violations.

"We need to free public-service television from the tyranny of real-time audience measurement," said President Sarkozy. "It leads state TV to treat viewers like consumers."

“We rarely see a plan so determined to control television,” said centrist politician and Member of the European Parliament François Bayrou. “Funding each year will depend on the good will of the government.”

“They have an interest in making television that no one wants to watch," said Canal+ CEO to the Wall Street Journal (June 26). "I give a reward to my kids when they come back from school with good grades, not when they are failing.”

Culture Minister Christine Albanel told Journal du Dimanche (June 27) that the Council of Ministers would have a draft law prepared by September “for a passage before the Parliament in mid October.”

That ends that…until next week.