French telecommunications billionaire Xavier Niel has applied to France’s media regulator for the license to broadcast over the spectrum currently held by French TV channel M6, a move that could cause German media giant Bertelsmann SE & Co. to lose a key asset for one of the most profitable channels in Europe.
(Bloomberg) — French telecommunications billionaire Xavier Niel has applied to France’s media regulator for the license to broadcast over the spectrum currently held by French TV channel M6, a move that could cause German media giant Bertelsmann SE & Co. to lose a key asset for one of the most profitable channels in Europe.
Regulator Arcom on Monday published the bids for the frequencies — which are currently used by France’s two main private broadcasters, TF1 and M6 — that are up for renewal in May. Both Television Francaise 1 and Groupe M6 applied to renew their own licenses, with Niel — the founder of telecom group Iliad SA — competing for the signal used by M6.
Niel’s challenger bid comes after a shakeup in French media last year, when Bertelsmann and TF1 owner Bouygues scrapped a project to merge their channels because of antitrust hurdles. Bertelsmann then put its stake in M6 for sale, with Niel and several European media tycoons bidding, before deciding not to sell, in part because of the timing of the license renewal.
Arcom will now evaluate the candidates’ written proposals and hold hearings with them on February 15, before issuing new broadcast licenses for May 5.
In preparation for the bid, Niel’s holding company, NJJ, has been contacting TV producers and writers, newspaper Le Figaro reported. It will defend a project called “SIX”, according to the statement by Arcom. The competition is likely to push M6 to make stronger commitments to produce scripted programming in France — a key issue for the regulator.
Arcom historically sides with the incumbent in bidding situations like this. Still, if Niel were to win, M6 would lose its primary distribution channel, putting its future and that of its 2,500 employees at risk.
A representative for M6 declined to comment.
“The question is whether he is a real candidate, or whether he is putting down a marker for the future, when other licenses are up for grabs,” said Philippe Bailly, chairman of media consulting firm NPA Conseil in an interview. About a dozen smaller TV licenses are to be renewed in 2025.
Bailly also questioned the need for a newcomer in the French TV market, describing it as “a bit crowded.”
M6, like TF1, was awarded its current license in 1987. With a market value of €1.57 billion ($1.7 billion), M6 is France’s most profitable network, known for shows including Top Chef and the hit dating show Farmer Wants a Wife.
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