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Establishment of Channel 2
Establishment of Channel 10
Establishing Regional Radio

The Establishment of Channel 10

In March 2000, an amendment to The Law for the Second Authority for Television & Radio was enacted, heralding the establishment of an additional commercial television channel in Israel ג€“ Channel 10 ג€“ which would be operated by two franchise recipients. One of the franchise winners, Israel 10, began broadcasting on January 28th, 2002 for seven days a week, due to the delay in preparations experienced by the second franchise winner ג€“ Eden Broadcasting. On July 1st, 2002, the Council of the Second Authority approved the incorporation of the two winning groups ג€“ Israel 10 and Eden Broadcasting ג€“ subject to several stipulations. Since August 21st, 2002, one franchisee has been operating Channel 10 alongside a news company appointed by the franchisee.

In April 2003, the Channel requested a stay of legal proceedings due to financial difficulties and revenues that were lower than expected. During this period, the Second Authority Law was amended, reducing the Channel's obligations (regarding investment and content), in effect erasing its obligations for its first two years of broadcasting. In spite of difficulties, the Channel's managers tried to position Channel 10 as a major broadcast channel, and it began to show signs of recovery. High quality and unique original programming played alongside equally good purchased programming; and the Channel emerged from its stay on March 14th, 2004, following the formulation of creditors' arrangements and the entrance of two new investors (Ron Lauder and Shlomo Ben-Zvi). The shareholders resumed financial flow for investment in content, and the Channel began to reposition itself as a major broadcaster, gradually gaining a dedicated audience.

In 2006, at the point of its mid-term review, the Channel was found wanting in terms of its obligations, and a legislative amendment was introduced that enabled delaying the review until 2007. In August 2007, the Turgeman Committee was formed to formulate legislative proposals regarding the Second Authority Law, this in order to spread the Channel's accumulating commitments beyond its first term of operation. The committee made its proposals to the Second Authority council in June 2008, and the latter ratified these. However, the legislative amendments were not forwarded by the government, and the initiative was frozen. At the end of 2008, Israel 10 requested a two-year extension of its franchise. Based on noncompliance with its obligations and accumulating debt, it was decided that the franchise would not be extended and a new tender would be issued. Israel 10 began negotiating with all relevant entities to attain the extension, its managers undertaking to uphold their commitments vis-ֳ -vis the terms of their franchise and the law.

In September 2009, the General Manager of the Second Authority announced that all proceedings regarding Israel 10 had been exhausted and that an arrangement regarding its obligations could not be reached. As a result, the Second Authority Council announced that it would publish a new tender for Channel 10. During the October 26th 2009 meeting of the Knesset's Economic Affairs Committee, the Minister of Communications announced that, in accordance with this decision, the government would propose an accelerated legislative amendment to facilitate a solution to the problem of Channel 10.

In January 2010 the Law for the Second Authority was amended and Israel 10's franchise was extended for two additional years until January 2012. The extension is subject to conditions stipulated in the law, according to which the franchisee must fulfill content-related expenses that have accumulated over the previous years of the franchise, as well as payments due for franchise fees and royalties. The Television Department has expressed its hope and expectation that the channel's continued broadcasts will be successful and of high quality.