France: Chérie 25 threatened by NRJ 12 axe
October 7, 2024
From Pascale Paoli-Lebailly in Paris
The channel initially appealed to the Council of State, which first rejected the summary judgment but will examine the merits off the case in November 2024.
“Arcom’s incomprehensible decision could lead to NRJ 12’s disappearance but would also compromise Chérie 25’s economic model,” the group argues. “Deprived of the ripple effect of NRJ 12 and the costs synergy, Chérie 25 would record a strongly and lastingly negative current operating result,” it warns, adding, in the event that the regulator’s decision is confirmed, “all necessary measures in view of the heavy losses it would entail for the group’s Television division should be considered. Including a possible sale of Chérie 25”.
NRJ Group also reasserts “its main objective is to ensure that NRJ 12 once again gets the authorisation to broadcast in DTT in March 2025 and thus to perpetuate the TV division it created in 2005”.
This TV arm is constituted with NRJ 12 and Chérie 25 on free DTT, as well as with pay-TV service NRJ Hits. It posted a positive current operating results of €1.2 billion in the first half of 2024 compared to a loss of €2.7 billion for the same period iin 2023.
Arcom’s decision to discontinue NRJ 12’s DTT broadcast at the end of its authorisation is largely based on weak audiences, multiple repeats as opposed to original productions as well as financial deficit. Since its beginnings, the channel will have cumulated €243 million in losses, to which Chérie 25 adds losses of €100 million. NRJ Group would then have been forced to cut content spending.
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