M6 chief says French advertising market is in trouble

France’s TV advertising market will likely hit a new low next year, according to M6 chief executive Nicolas de Tavernost.

De Tavernost, speaking to French journalists, said that the French TV industry could face three years of financial problems thanks to the increase in the number of players fighting for the same pot of advertising money – a reference to Canal Plus’s entry into free TV with the relaunch of former Bolloré channels D8 and D17 and to the launch of six new DTT channels by the end of this year.

De Tavernost said he expected a significant decline in TV advertising revenues this year. He said that the French advertising market would not be able to finance 25 free-to-air channels and called for a change in VAT rules that allow pay TV services to benefit from a reduced rate unavailable to free channels.