A new decree[1] recently made two changes to the television advertising regime[2].
On the one hand, it perpetuates the authorisation of cinema advertising. This authorisation was initially provided for on a temporary basis in 2020 for eighteen months. It was extended twice to take account of the atypical nature of the period linked to the health crisis and the closure of cinemas. The lack of data made it impossible to fully assess the consequences of this practice.
The new report assessing the impact on the film industry and advertising revenues in other media (radio, press and billboards), which was drawn up for the 2023 financial year and published in January 2024, concludes that authorisation has had a negligible impact on transfers of advertising budgets between media and notes the diversity of works promoted on television (majority of French films, relatively varied budgets). The report also notes a positive effect on cinema attendance, particularly in the regional cities.
Secondly, this decree authorises advertising for the literary publishing sector for a period of two years. This sector, which was opened up to cable and satellite television services in 2003, remained prohibited for digital terrestrial television services. The Government will publish a report assessing the impact of this temporary authorisation, particularly on the book industry sector, in order to decide on the follow-up to be given to this temporary authorisation.
Although some may welcome this development, many are disappointed that the reform did not extend to allowing advertising in the mass-market retailing sector, which is valued at 200 million euros. This sector will continue to be one of the main source of revenue for the press sector for the foreseeable future.
For further information, please contact:
Sacha Bettach, Bird & Bird
sacha.bettach@twobirds.com
[1] Decree n° 2024-313 of 3 April 2024 modifying TV advertising rules.
[2] embodied in decree of 7 March 1992, which lays down the general principles defining the obligations of service publishers with regard to advertising, sponsorship and teleshopping.
