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Viewing cable 05PARIS2265, FRANCE: LAUNCH OF DIGITAL TERRESTRIAL TELEVISION

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Reference ID Created Released Classification Origin
05PARIS2265 2005-04-05 15:07 2011-08-24 00:00 UNCLASSIFIED Embassy Paris
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS PARIS 002265 
 
SIPDIS 
 
STATE FOR EUR/WE AND EB/CIP 
 
E.O.  12958: N/A 
TAGS: ECPS ETRD FR
SUBJECT: FRANCE:  LAUNCH OF DIGITAL TERRESTRIAL TELEVISION 
 
REFS:  (A) PARIS 01520 
 
      (B) 04 PARIS 00886 
 
1. Summary:  Broadcasters have launched 14 free digital 
television channels, initially to be available to about one- 
third of the French population.  Digital coverage is 
expected to increase rapidly, as is the number of free 
digital channels.  Concerns have emerged about the 
commercial viability of the profusion of channels, and its 
potential effect on the subscription television market.  End 
summary. 
 
2. March 31 marked the launch date of 14 free channels 
broadcast via digital terrestrial television (DTV, or TNT 
for its French acronym, "television numerique terrestre"). 
These channels are currently available to 35% of the French 
population, mainly in urban areas.  Seven of the channels 
are new and seven are digital broadcasts of preexisting free 
analog channels, including France 2, France 3 and TF1.  This 
is the first appearance of new, free television channels in 
France since the launch of channel M6 18 years ago.  A 
special adapter device is necessary to receive the free 
digital channels, and costs upwards of 79 euros (over 100 
USD).  The free DTV channels are broadcast on the MPEG2 
standard, following a recent GOF decision to assign the 
higher-compression MPEG4 standard to subscription DTV 
channels.  (ref A) 
 
3.  The availability of DTV will expand quickly throughout 
France, and the launch of more free DTV channels is planned. 
By 2006, DTV is expected to have a geographic coverage that 
will reach 65% of households, and this coverage will 
increase to 85% by 2007.  Analysts predict that the free DTV 
channels will be embraced as their availability increases: 
forecasters expect that by the end of 2005, 31% of 
households will watch digital television, 48% in 2006, 68% 
in 2007 and 80% by the beginning of 2009.  The Conseil 
superieur de l'audiovisuel (CSA), the French television 
administrator, is considering applications for DTV 
broadcasts permits from eight additional channels.  Between 
one and three of these applicant channels are expected to 
receive authorization to begin broadcasting in May 2005. 
Within four to five years, observers expect that there will 
be 20 free DTV channels broadcast in France. 
 
4.  The launch of DTV is expected to have a significant 
impact on the French television market.  One potential issue 
is whether the sale of airtime to advertisers will generate 
sufficient income to support as many as 20 free DTV 
channels.  Additionally, channels such as Canal Plus, which 
are financed through paid subscriptions, are concerned that 
they will lose subscribers to the free DTV broadcasts. 
Prior to the launch of DTV, only eight million French 
households received digital television, which was broadcast 
via cable, satellite and ASDL, and was available only 
through paid subscription.  Some press reports have cast DTV 
in a negative light, particularly for its dependence on what 
some observers see as increased advertising for revenue. 
Whether these additional channels provide a boon only to 
French content producers or result in an increased demand 
for imported content will be watched carefully by local 
analysts and by us, particularly if DTV proves to be a 
growth area for U.S.-based content providers. 
 
LEACH