Israeli Communications Minister Grants Channel 14 Multi-Million Shekel License Fee Break

Israeli Communications Minister Dr. Shlomo Karai is arranging a significant financial benefit for Channel 14 by updating draft regulations on annual broadcasting license fees. The new rules replace the fixed fee of 11.42 million shekels per channel with a system based on 1.6% of the channel's average income over the past three years. This change is expected to save the pro-government Channel 14 several million shekels annually.

Currently, only channels defined as non-minor, such as Keshet 12 and Reshet 13, pay the fixed license fee, while smaller channels with annual revenues under 80 million shekels are exempt. Channel 14 was previously classified as a minor channel and thus exempt, but due to increased viewership and revenue, it no longer qualifies for this status. Although the Second Authority for Television and Radio was required to publish the updated list of minor channels by June 1, it has delayed doing so, which would have obligated Channel 14 to pay the full fixed fee.

The updated draft regulations, published recently, aim to redistribute the financial burden more equitably among market players, citing that a uniform fee hinders smaller entities and competition. However, critics, including Knesset member Shelly Tal Miron (Yesh Atid), argue that the changes disproportionately favor Channel 14, granting it an estimated 7 to 9 million shekels annual discount without professional justification. Tal Miron warned that this undermines equality, distorts fair competition, and raises concerns about regulatory favoritism.

This license fee concession adds to previous benefits Minister Karai has granted Channel 14, such as exemptions from distribution fees under the August 2024 law and the right to charge telecom companies for live broadcast distribution, unlike Keshet and Reshet. Further advantages are expected under the broadcasting law Karai is currently promoting, including waiving the requirement for a separate news company and removing cross-ownership restrictions for Channel 14.

The exact current revenues of Channel 14 are unknown, but estimates by Tal Miron's team suggest the channel’s license fee payment could be around 1.6 million shekels this year, significantly lower than the fixed fee. The new regulations use a three-year average, benefiting Channel 14 due to lower revenues in prior years despite recent growth.