France: the TF1-M6 merger, a divisive project
The logos of TFI and M6.
(Drawing).
AFP - LIONEL BONAVENTURE
Text by: Pauline Gleize Follow
3 mins
The plan to merge media groups TF1 and M6 has been scrutinized by the Competition Authority.
The Authority's college is in fact hearing the stakeholders on September 5 and 6.
To be able to celebrate their union as they wish at the beginning of next year, the two television channels must indeed convince Arcom, the French audiovisual policeman, and the Competition Authority.
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The case is not very well underway for TF1 and M6.
The investigation services of the Competition Authority issued an unfavorable opinion.
However, nothing is yet lost for the historical private channels.
The college of the Authority, before which the hearings will take place, is not required to follow this opinion when it renders its final decision, expected next month.
Ultimately, the government could also override this refusal if it justifies reasons of general interest.
Fears over advertising prices
This project divides.
Advertisers, for example, are up in arms against this marriage.
The Union des Marques, which represents them, fears that the merger of TF1 and M6 will limit competition in the advertising market, with the risk of price increases as a result.
It must be said that the two groups together represent 75% of the television advertising market share.
The price of advertising also worries Xavier Niel, the boss of Free.
Fiercely opposed to this operation, he even launched, in vain, several appeals before the Council of State.
And it is not only the promotional part that worries him, Xavier Niel fears not being able to fight against this new giant in the negotiations to distribute the channels on the telecom boxes.
Concessions were therefore requested from TF1 and M6.
The report by the Competition Authority's investigation services is not public, but the two channels have indicated that they do not intend to comply with the recommendations.
They would prefer, if necessary, to give up their marriage, thanks to which they hope to generate 250 to 350 million euros in “synergies”.
The two groups nevertheless offered to make some concessions, in particular to separate their advertising departments for three years and to create a separate management for the radio.
The latter would take care of advertisements for RTL (M6) and Indés Radio (TF1).
But they will surely have to go further, according to a source familiar with the matter consulted by AFP.
The transfer of a secondary chain would not be excluded.
For M6 and TF1, the whole issue is whether the college of the Competition Authority will redefine the contours of the video advertising market by integrating the global giants of streaming.
This would mechanically lower the weight of French actors.
Competition support
On the contrary, M6 and TF1 have support.
Starting with the Society of Authors and Dramatic Composers (SACD).
She considers that "
the emergence of a powerful private group capable of offering a free quality offer to viewers and investing in heritage creation is a necessary and urgent response to new digital competition
".
Netflix, Disney, Amazon or even YouTube and Tiktok are eating up audience time from traditional television channels and attracting ever more advertisers.
In addition, the boss of France Télévisions, public competitor of M6 and Tf1, is also in favor of this merger.
Delphine Ernotte told the Senate that her group "
needs healthy private competitors
".
She then explained that "
if tomorrow the private offers fall apart - which is not the case today - the whole TV media would fall
".
Delphine Ernotte, however, asks that the operation be accompanied by "safeguards".
As for Arcom, the audiovisual policeman, and the government, they have not yet displayed a clear position.
Arcom's decision is expected in November.
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