2010, the CSA at the Heart of Technological, Economic, Cultural, and Societal Change: Assessment and Outlook

In 2010, through its actions, the CSA was at the heart of economic, cultural, and societal change, as digital technologies became a household name. So wide is the scope of change, that it is felt by both industry professionals, and general audiences.

With analogue terrestrial switch-off in ten régions—Alsace, Basse-Normandie, Pays de la Loire, Bretagne, Lorraine, Champagne-Ardenne, Poitou-Charentes, Centre, Bourgogne, and Franche-Comté—, the French audiovisual landscape has irreversibly turned digital. Canal+’ switch-over to digital was completed on 24 November 2010. These complex processes were a success, thanks to the work of all partners, and, in particular, to that of government services, the groupement d’intérêt public France Télé numérique, and, obviously, to that of the channels themselves, which participated in the financing. In addition, due to large scale information campaigns and targeted aid measures, any digital divide was avoided.

The continued extension of digital terrestrial television coverage (DTT) also contributed to reaching this objective. In 2010, thanks to the work of the Conseil’s services, an additional 440 transmitters turned digital, out of the 1,626 in the final target plan. At the end of the year, almost 94 per cent of French households could receive DTT through their roof aerial; 86 per cent of French households received DTT on at least one of their TV sets; 56 per cent of French households received digital television via terrestrial airwaves; the number of secondary television sets equipped to receive DTT is increasing very rapidly.

The Conseil ensures that each and everyone may take advantage of the digital revolution, wherever in France they may live. On 30 November 2010, the first DTT multiplex was enabled in outre-mer France (French overseas départements and territoires): 95 per cent of the population living in outre-mer can now watch, in MPEG-4, the relevant Pays 1^ère channel in their area, as well as, France 2, France 3, France 4, France 5, France Ô, France 24, Arte, and up to two local channels per area.

In mainland France, the expansion of the digital audiovisual landscape continued, with France Ô broadcasting nationally since 14 July 2010, and the launch of new local TV channels, now numbering 50. Also, on 16 December 2010, the Conseil selected C Foot, a new pay DTT channel. The decision to give pay DTT a new lease on life was taken by the Conseil following the Rencontres de la télévision payante (pay TV meeting) on 29 March 2010, and taking into account the outcome of a consultation, opened on 26 June 2009, on possible uses for spectrum released by analogue switch-off, and the discontinued broadcasting of pay channels AB1 and Canal J. On 16 November 2010, the Conseil also decided to issue a call for tenders for the edition of one, or several, DTT on-demand audiovisual media service(s).

To fully enhance all opportunities resulting from digital switch-over, the Conseil must take into account expectations on the part of, both, the public, and the industry: it is necessary that this balance be achieved, before any possible launch of mobile television and digital terrestrial radio. The Conseil’s role is to bring technological innovation to the largest numbers and, thus, satisfy all audiences, to foster the development of original content, and, additionally, to ensure companies the necessary revenue and financial wherewithal to invest in content and networks.

As part of the same effort, the Conseil started reflecting on technological innovation and the spectrum, broaching, in particular, on-demand services, 3D TV—a highly frequency-consuming technology—, and other ways in which innovation may spread. DTT has made airwaves attractive once again. They remain the only free platform, and, for 60 per cent of France’s population, the single reception mode.

This is taking place in the context of a wider effort on the part of the Conseil to reflect on the spectrum’s future. Over the last years, the Conseil has significantly enhanced frequency availability. For instance, the FM+ plan has led to a 20 per cent increase in the band’s occupation rate. The 790-862 MHz band has also been released by digital switch-over, to the benefit of mobile operators. However, spectrum optimisation requires a good level of reception protection. The Conseil, therefore, has planned the necessary multiplexes for enlargement of the audiovisual landscape, as provided for in the law, but also those necessary for high definition expansion. It will, probably, take several years before all DTT channels broadcast in high definition: eight multiplexes will be necessary; viewers must be given time to buy the necessary equipment; and, channels must be able to absorb the resulting additional cost. As the Conseil is keen to stress, spectrum optimisation may not happen to the detriment of population coverage, or the detriment of the public. Finally, as optimisation is financed by the audiovisual industry, they must be given the opportunity to develop their own innovations.

For the industry, and the regulator, the continued growth in new internet services brings far-reaching change. The Conseil’s regulation, therefore, now takes into account on-demand audiovisual media services, such as catch-up TV, or video on-demand. On 14 December 2010, the Conseil adopted a deliberation relating to the protection of young audiences, ethics, and programme accessibility, on on-demand audiovisual media services. Under the deliberation, programme classification and youth-suitability ratings are the same as those applicable to television services (i.e., all audiences, not suitable for those under 10, 12, 16, or 18). Broadcasting time constraints are limited to free programmes “not suitable for those under 16”, and to programmes “not suitable for those under 18” available by subscription. For on-demand audiovisual media services, the deliberation recommends two clearly identified spaces: one, locked by a specific code and dedicated, exclusively, to programmes, and trailers of programmes, not suitable, or illegal, for minors under 18; and, a “trustworthy space” (espace de confiance), solely containing “all audiences” programmes intended for families or young audiences. The deliberation, also, stresses that general ethics principles apply to new on-demand services. In fact, in 2010, for the first time, the Conseil had to take action against all editors offering a variant of the same programme—“Dilemme”—violating the principle of respect for human dignity, and the provisions relating to the protection of young audiences. The editors were an off-air channel, a specific internet channel, and an on-line video platform.

For several years, the Internet has played an important role in information. The Conseil is aware of the difficulties entailed for TV channels, in particular, as regards verifying the authenticity of sources and content. However, the main ethical principles governing news media may not be overlooked. When sources of information multiply, broadcasting media must be the reference. For this reason, in 2010, the Conseil has initiated, with the channels, a joint reflection on information ethics in the era of the Internet.

Another important area of work for the Conseil, is the accessibility of programmes for people with a hearing or visual impairment. In 2010, channels have made decisive progress in this area. The requirement set forth in the law of 11 February 2005 that the main terrestrial channels’ broadcasts be fully accessible to deaf or hearing impaired persons has been fulfilled: since 12 February 2010, channels with more than 2.5 per cent of the total television audience have fulfilled their obligations. 2010, was also marked by the implementation of the law of 5 March 2009 under which digitally broadcast private television services with an average annual audience higher than 2.5 per cent of television services’ total audience must broadcast their programmes with audio-description. This is the result of the Conseil’s steadfast commitment in favour of making television accessible to blind or visually impaired persons.

Because it is sensitive to the issue of social cohesion, the Conseil has also strengthened the requirements relating to the portrayal of diversity on audiovisual media. In February 2010, on the basis of the deliberation of 10 November 2009, and of the supplemental agreements to the legal agreements in which private editors have entered, the Conseil has deemed valid, and therefore, granted full force and effect, to the undertakings offered by free DTT channels and Canal+. All broadcasters have elected to, introduce a diversity clause in programme order contracts, raise their teams’ awareness to the issue of diversity, and deliver on air evidence of progress, in particular in programmes dealing with French society’s reality. Several channels have also subscribed to a no-setback (non-recul) clause in relation to a number of criteria to evaluate diversity in their broadcasts. The findings of the second and third waves of the diversity survey (baromètre de la diversité), in February and September of 2010, respectively, show the first signs of progress in the representation of diversity, on certain channels, and in certain kinds of programmes, when compared to 2009.

Society’s requirements in terms of content and quality are also changing. Quite obviously, this does not mean tampering with the channels’ editorial freedom; rather, it means more in-depth dialogue, and encouraging good practices. The quality requirement should not be perceived as an additional cost or a constraint; rather, it must be seen as a guarantee for attractiveness, and an opportunity with respect to international competition.

To achieve this aim, the Conseil has paid particular attention to fiction. On 28 June, it published a study that showed that American fiction has gained the most from the increase in the number of hours of fiction aired since the beginning of digital terrestrial television. Audience ratings reveal the same trend: in 2005, out the top 100 ratings, 56 were 90-minute French fiction, and 4, only, were 52-minute American fiction. Today, it is clearly the opposite. In 2009, only 4 of the top 100 ratings were French fiction, when 63 were American fiction. In addition, a study published, on 9 December, by the Conseil, shows this to be an exception, when compared to the rest of Europe: in Germany, the United Kingdom, Italy, and Spain, the audience ratings of national fiction are higher than those of American fiction. The main areas that could contribute to an improvement are, financing, and the organisation of the industry. The Conseil has always paid close attention to creating conditions conducive to the financing of the audiovisual industry and of creative content, in particular in the context of the debate relating to the “production” décrets. The Conseil underlined the need to protect the part of the financing devoted to new French creative content. That being said, when comparing the cost structure of American fiction with that of French fiction, the main difference is, clearly, to be found in upstream investment, and, in particular in writing, for which investment is much higher in the US. This is a pre-requisite for the rise of original, dynamic, French fiction.

The Conseil continues to pay particular attention to private broadcasting. Even though the drop in advertising revenue seems to be over, new DTT channels reaped most of the benefit of the 15 per cent increase in 2010. Further steps to guarantee the industry’s well-being are, therefore, necessary. Laws were passed in 2010 opening new advertising markets. On 16 February, the Conseil, for its part, adopted a deliberation setting forth the conditions in which television service broadcasts may include product placement. 2010 was, also, the year in which certain areas of on-line gambling were opened to competition, and new regulation was issued under the law of 12 May 2010. In a deliberation dated 18 May, the Conseil set forth the conditions in which commercial communications in favour of legal gambling operators may be broadcast. Commercial communications in favour of gambling operators are banned on television and radio services intended for minors; on other television and radio services, they are banned during programmes intended for minors, and within 30 minutes of the beginning and the end of such programmes. The deliberation is, thus, in line with the law’s intent, which was to open a new advertising market, while setting forth very strict conditions with respect to young audiences’ protection.

The Conseil also pays close attention to the financing of public broadcasting, in particular, because the foremost support for the creation of audiovisual content in our country comes from France Télévisions: its investment represents 52.1 per cent of the total investment of all digital channels in original production. France Télévisions must have the financial wherewithal to support innovation and creativity, while developing into a global media, and adapting to new broadcasting modes, by developing multiple media broadcasting, providing non-linear services, broadcasting on mobile devices, and switching to HD only.

Finally, the Conseil has a duty to anticipate the future. The emergence of connected TV sets, and interactive advertising, will have an impact on the traditional chain of relationship between advertisers and the advertising departments of channels or on-demand services. It would only be fair, therefore, that the broadcasting industry’s new stake-holders should participate in financing original content. Any company making a financial gain out of broadcasting original works must contribute to their financing at large. Internet service providers already do so. The obligation must be extended to all stake-holders, in a sensible and progressive manner, so as to set up a long-lasting relationship between partners. It is with this in mind that, on 27 September 2007, the Conseil issued a negative opinion (avis défavorable) on the draft décret relating to on-demand audiovisual media services. In the Conseil’s opinion, the décret was inconsistent with the industry’s economic reality. One of the reasons for such opinion was the very real danger of services being off-shored: a service in Luxemburg already offers films at a price 20 per cent lower, and has gained significant market shares, without contributing to the financing of French, or European, fiction. The Conseil’s comments and recommendations were taken into account by the Government. The draft décret was modified to create conditions conducive to the development of French platforms, so that they may provide long-term financing for original works.

It is this new kind of competition environment that the Conseil must regulate. On 23 March 2010, the Conseil approved, adding substantial commitment requirements, the purchase by group TF1 of channels TMC and NT1. In the Conseil’s opinion, the merger had to be evaluated keeping in mind the deeply changed environment in which it was taking place: an increasingly blurry line between what is “free to air” and what is not, Internet competition on the rise, the emergence of new world-wide players such as Google, etc.

Broadcasting regulation is now taking place in a digital environment with multiple media, and an increasing number of connected TV sets. The Conseil will ensure that television channels may take advantage of the complementarity offered by an expanding Internet. The Conseil also wishes to protect channels from unfair competition from the Internet due to unbalanced regulation, in particular, as regards the Internet’s contribution to the financing of original production. The Conseil’s objective is to foster a kind of technological revolution that would meet the public’s genuine expectations, offer professionals opportunities, and guarantee economic balance in the audiovisual industry.