SARKOZY'S SHAKE-UP OF FRENCH PUBLIC BROADCASTING

UNCLAS SECTION 01 OF 02 PARIS 003414 SIPDIS SENSITIVE SIPDIS DEPT FOR EUR/PPD, EUR/WE, INR, R E.O. 12958: N/A TAGS: PGOV KPAO OPRC FR SUBJECT: SARKOZY'S SHAKE-UP OF FRENCH PUBLIC BROADCASTING PARIS 00003414 001.2 OF 002 Sensitive but unclassified. Please protect accordingly. -------------- SUMMARY -------------- ¶1. (SBU) French public radio and television, long a stable and dominant force in the French media scene, looks set to make some changes in the coming year. We expect these changes will leave it with a leaner management structure and with at least some overlapping functions eliminated in an effort to "right-size" French public electronic media. President Sarkozy's early August mission letter to Minister of culture Albanel set out the broad issues, but the details of any changes have yet to emerge, and are unlikely to be clear before late fall. End Summary. -------------- -------------- SARKOZY'S OPTIONS FOR CHANGE -- WHERE'S THE MONEY? -------------- -------------- ¶2. (SBU) In his mission letter to the Minister of Culture, President Sarkozy said that he would like "a more modern public television with a stronger identity, enhanced by a wide range of more creative and audacious cultural offerings." At the heart of any proposed changes, however, lies the issue of public television financing. In an August 3 interview on BFM radio, France Television CEO Patrick de Carolis suggested two possible sources for increased funding: either raising the household license fee (currently 116 euros per year per household); or adding commercial breaks in the evening. (Note: De Carolis pointed out that the BBC charges nearly twice as much for licensing fees and claimed that an extra commercial break in the evening could bring in roughly 20 billion euros in additional revenue per year. End Note.) A poll published August 13 in Le Parisien found that 86 percent of the public were opposed to an increase in the licensing fee, while only 53 percent were opposed to an increase in commercial breaks -- and 45 percent (mostly the under-40 crowd) actually supported additional commercials. A senior editor from one of the public television channels told us, however, that he believed adding more commercial breaks would no longer fit the image of "public service." -------------- RIGHT-SIZING PUBLIC TELEVISION? -------------- ¶3. (SBU) France Televisions includes the five national television channels (France2, France3, France4, France5 and FranceO) as well as the satellite network Reseau France Outre-Mer (RFO). In addition to France Televisions, the public audiovisual sector includes TV5 Monde, France 24 (the French public equivalent of CNN, which broadcasts in French, English and Arabic) and Radio France International (RFI, the French equivalent of Voice of America). The public media sector thus includes considerable overlap, and the three major proposals for "right-sizing" the sector focus on exploiting potential cost-savings. One option would be to set up a holding company that would run TV5 Monde, France 24 and RFI; this option currently appears the simplest to implement and the least likely to run into serious political opposition. The second option would be to appoint a common president for all of the various entities without reorganizing them into a holding company (an option journalists, including well-plugged-in Le Figaro editorialists, believe that the MFA favors). The third option would be a straightforward merger between France 24 and TV5 Monde -- although this option would clearly save the most money, staff at both TV5 Monde and France 24 strongly oppose this idea. ¶4. (SBU) Any changes in the French public television system will come later in the year. The Minister of Culture will present a formal plan to the National Assembly no earlier than October, with a vote anticipated by the end of 2007. Opposition politicians are already criticizing possible changes as a means for President Sarkozy to "tighten his grip on the media," pointing out that he already enjoys exceptionally close ties to, among others, France Televisions CEO Patrick de Carolis, TV5 Monde CEO Jacques Bonnemain and Radio France CEO Jean-Paul Cluzel. -------------- COMMENT: CHANGE "INEVITABLE" -------------- ¶5. (SBU) Despite the absence of agreement about the future face of public television, Sarkozy has clearly set the reform process in motion and no one, however wedded to the status quo, doubts that he will succeed in making changes. While some of the staff of the various entities have spoken out against reform, most senior players are discussing the "how" of change, not disputing whether or why it will take place. As the Senior Editor at France 24 told us, RFI and France 24 already share correspondents. It's clear that Sarkozy and PARIS 00003414 002.2 OF 002 his government could gain considerable savings by streamlining the public media system -- and it's clear that journalists and the French public expect Sarkozy to get his way in his right-sizing plans. PEKALA