The second authority met today to discuss whether Keshet could enter another field and set up a multi-channel TV platform on the Internet together with RGE.
After a day of discussions in which Keshet, RGE, yes, Hot and associations, including Lobby 99 and the Success Association, presented their argument on the issue, the authority did not make a final decision on the issue, and announced that it would examine the issue in the coming days.
Read more in Calcalist:
The reason why the authority chose not to decide and is expected to postpone the decision as much as possible is the letter sent by the Ministry of Communications last Thursday which was revealed in Calcalist, in which the ministry clarified to TV providers and the authority that it is expected to formulate regulation in the near future. She also owns a broadcast channel and is licensed as a multi-channel TV provider, also for companies that operate over the Internet (OTT).
The letter came as a surprise to the other authority and changed its plans, as it obliges it to take into account that the law is about to change soon.
The purpose of the law is to prevent centralization in the communications market that will generate too much power in one competitor. If, for example, a content-producing company provides a TV platform itself, it could charge too much for its content (in the case of Keshet, Channel 12 content) and overburden other competitors, or lead to competitors being pushed out of the market. The reason that the same law applies only to borrowed or cable television and not via the Internet is that the Ministry of Communications has not yet had time to examine the issue, and meanwhile broadcasting via the Internet has spread widely. Meanwhile, Keshet and RGE have already set up a company called FREETV and even released a first call for exclusive content production.
The company’s goal is to provide a streaming app with Keshet and RGE content that is low cost and can be mounted on any smart or streamer TV. The problem with postponing the decision is that the establishment of FREETV affects the entire market – since it is assumed that the company will succeed in recruiting many subscribers, Partner has already signed an exclusive cooperation in the sale of fiber and the other companies are considering their steps in the market changes FREETV will cause.
If FREETV succeeds in recruiting subscribers, then many consumers will get used to using a smart TV platform and will have to put together apps with content. This change will affect the entire market so media companies need to prepare for it.
The more the decision is rejected, the greater the uncertainty in the market. It should be noted that the dissolution of the government will make it difficult for the Ministry of Communications to formulate a regulation on the subject, which will force the other authority to make a decision itself, when it does not have an existing law to rely on.