French President Nicolas Sarkozy has proposed that public broadcasters should no longer carry advertising. Instead the commercial broadcasters would be required to pay a levy that would make up the shortfall.
France is looking to change her broadcasting rules in order to allow indigenous media groups compete more effectively with the international media groups. The country has a long history of favouring the domestic market in order to protect the French culture.
The levy would apply only to the increase advertising revenue gained as a result of the change. Sarkozy is also proposing a “tiny tax” on new means of communication such as the internet and mobile phones.
In 2006 public broadcaster France Television, which includes the France 2, France 3 and France 5 channels, reported advertising revenues of €765.3 million, a 24.5% market share. Shares in TF1 and fellow commercial broadcaster M6 rose on the news.