EU greenlights PSB compensation

The European Union has authorized the French government’s injection of €150 million into France Télévisions capital to compensate for 2008 advertising revenue losses due to the announcement of future PSB ad ban.

Announcement of the ad ban, made in early 2008 has “made France Télévisions’ financial balance fragile in the short term,” the Brussels Commission commented. The €150 million capital contribution should be effective in the course of the summer.

France Télévisions’ Board of Administrators has also voted for a 2008 revised budget that plans a € 100 million deficit. The new budget integrates the “€152 million ad revenue losses due to the announced ad ban of early next year as well as the measures planned to limit such a deficit,” France Télévisions said. Cuts in general costs should save €9.5 million and €20.7 million will be saved from programming cuts.