Holding, merger and “mega structure”… Public broadcasting reform debated in the National Assembly

Defended by Rachida Dati, this reform proposal provides for a transitional phase with a common holding company on January 1, 2025, then a merger a year later. Some 16,000 employees are affected.

“Due to a call for a strike…“: Franceinfo, like all Radio France stations as well as the France Télévisions channels, risk operating slowly on Thursday May 23 and Friday May 24. The unions are calling for a strike, as are those of France TV, the National Institute of Audiovisual, as well as France Médias Monde All these entities are opposed to the reform of public broadcasting, which is coming up for debate in the National Assembly over the next two days.

Rachida Dati took the issue of public broadcasting head on as soon as she arrived in government at the start of the year. It thus provides for a transitional phase with a joint holding company on January 1, 2025, then a merger one year later. Some 16,000 employees are affected. “The political moment has come“, considers the minister, after an attempt at rapprochement by her predecessor Franck Riester stopped by Covid-19. She boasts the support of the President of the Republic, Emmanuel Macron, “very attached to public broadcasting”.

To accelerate, the Minister of Culture relied on a bill from Senator Laurent Lafon (Centrist Union) programming a holding company, already adopted in June 2023 by the upper house. According to Rachida Dati, public broadcasting has “undeniable strengths” but “scattered“, which exposes him to a “risk of weakening“. The intention is therefore to bring together the forces of public companies to prevent them from being devoured by private groups and especially by streaming platforms like Netflix or Amazon Prime Video. And the goal is not to make savings, the government is told. On the contrary, the reform would even have a cost in the first years.

Particularly mobilized, the Radio France unions fear that television will swallow up radio. “This reform calls into question the editorial and budgetary independence of Radio France, guarantor of a real audio strategy – radio and digital – acclaimed by the public“, they argue. “Why engage (the sector) in a merger that promises to be long, complex, anxiety-provoking for employees, and without any real editorial objective?“, ask the France Télévisions unions for their part.

The three companies would then become subsidiaries of the new mega structure of some 16,000 employees, called “France Médias”. At its head, a “super boss” or a “super boss”, appointed for five years renewable by Arcom and a budget of four billion euros. A position for which current leaders of public broadcasting can apply, that of France Télévisions Delphine Ernotte is expected to position herself. She is in favor of the merger, unlike her Radio France counterpart, Sibyle Veil.

This text of law is not unanimous, either, within the presidential camp itself, starting with the integration of France Médias Monde. Initially, the group, which includes the France 24 channel and RFI radio, was included in the project. But it was removed last week in committee. It could still be reinstated during discussions in the hemicycle because the Republicans, and certain Renaissance deputies, demand that France Médias Monde be within the scope. Without this, they will not vote for the reform. Problem for the government: this audiovisual reform cannot pass without the votes of LR.

For its part, the National Rally is campaigning for a privatization of public media, but it should vote for the text if external broadcasting is not included in it. The Modem wants to support the creation of a holding company, but disapproves of a merger. For its part, the left holding torpedo like fusion. LFI sees in this project “the culmination of denigration and weakening“of the public service operated by Emmanuel Macron.”It is not the return of ORTF that will allow us to compete with Netflix“, add the environmentalists.

Finally, economic questions remain unanswered: we do not know how much the merger will cost. Not a word about it in the project. What is certain is that it will initially generate expenses; merging is never painless. It is the General Inspectorate of Finance which will have to calculate the amount. It is also unclear how public broadcasting will be financed from next year, once the current mechanism is obsolete. Since the abolition of the fee in 2022, the sector has been temporarily financed by a fraction of VAT.

Before the fall, there should be a new law to ensure long-term funding for public broadcasting, via a “revenue levy” from the state budget, as is done for example for local authorities.