The French 24-hour news channel LCI is likely to close at the end of the year, according to Nonce Paolini, the head of TF1. This follows a controversial decision by the CSA not to allow it, along with Paris Première and Planet +, to move from a subscription to FTA, ad-funded DTT service.
In a detailed statement, the CSA says it considered requests for the three channels, operated by TF1 (LCI), M6 (Paris Première) and Canal+ (Planet+) to modify their method of funding, in accordance with of a law passed in September 1986 and amended in November 2013.
It based its decision on the state of the advertising market, financial position of existing free DTT channels and the supply and consumer demand for TV.
On the first point, the CSA concluded that no significant market recovery – TV ad revenues have dropped sharply – is expected in the short terms and the medium term outlook still remains uncertain.
On the second, the financial situation of several free channels remains fragile, especially those not backed by a large group. Moreover, HD channels authorized in 2012 are still in their growth phase.
On the third, the arrival of one or more free channels is unlikely to result in a significant increase in the use of TV in a market already served by 25 such services.
Looking specifically at each of the three channels, the CSA said that the transformation of LCI into an ad-funded service could destabilize the two existing news channels.
In the case of Paris Première, its entry would probably affect the economic and financial viability of free DTT channels.
Meanwhile, Planet+’s entry as a second documentary channel would be premature, given that the first channel had not yet achieved “financial balance”.
Quoted by Le Monde, Nonce Paolini also said that TF1 would probably not submit a new application to the CSA in the future. He also said that LCI would not be sold.
On the other hand, the CSA said it might review its decision in the future of market conditions improve.
