חומר רקע

Eurosport SAS, 3 rue Gaston et René Caudron, 92798 Issy-les-Moulineaux Cedex 9, France Société par actions simplifiée au capital de 17 465 156,00 € 353 735 657 R.C.S. Nanterre – TVA FR 17 353 735 657 eurosport.com / eurosport.fr/ wbd.com 27 April 2026 Hon. MK Galit Distal Atbaryan Chair of the Special Committee - Communications Law Via e-mail Dear Mrs Distal Atbaryan, Warner Bros Discovery Sport owns and operates Eurosport sports channels in EMEA including in Israel. Eurosport is very concerned at what we understand is proposed in the Knesset in the broadcasting Bill. For now would like to focus on the “must sell” provisions in the Bill, in the context of “commercially important” sport events. There are serious problems with the proposed regime regarding event of “public importance” to which we will refer separately. The business model of Eurosport is based on commercial negotiations and a B2B relationship with multichannel platforms such as cable and satellite operators (the distributors).it is the distributors, not the Israeli consumer, who ultimately pay Eurosport for carriage of our channel. Our model – sometimes described as a wholesale model (meaning it is the distributors, not the Israeli consumer, who ultimately pay Eurosport for carriage of our channel) – depends on competition among distributors. Eurosport assumes the commercial risk in acquiring sports rights upfront from the competition organisers, a cost which we then seek to recover via carriage deals with distributors, freely negotiated under free market conditions. This is the normal commercial model for distributing sport which has prevailed globally for decades. Our concern is that obliging sports content to be made available to all distributors under a must sell regime, would remove the normal incentives for channel providers, it might cause serious commercial uncertainty, cause never-ending disputes, while undermining our property rights and contractual freedom without any benefit to the public. Such a regime would also impact the amount of money which channels like Eurosport can ask from distributors in our commercial negotiations. It might, in fact, cause higher prices, because of the transaction costs and uncertainty, and because of the risk that a discount to one platform might be perceived as discriminatory by another. Offering attractive sport content in Israel might become a burden and this artificial value transfer would also undermine future investment in sports rights, damaging investment in sports Eurosport SAS, 3 rue Gaston et René Caudron, 92798 Issy-les-Moulineaux Cedex 9, France Société par actions simplifiée au capital de 17 465 156,00 € 353 735 657 R.C.S. Nanterre – TVA FR 17 353 735 657 eurosport.com / eurosport.fr/ wbd.com While we are used to regulators intervening in sports broadcasting in context of publicly important “listed events” this is always limited for specified, defined sports rights. This current proposed “must sell” model for any sport content unless “exempted” by a regulator, is an unprecedented intervention in a modern market economy which would prevent channels and distributors from carrying out the commercial negotiations which we undertake in every developed economy in the world. In the interests of time we will not go into whether or not such an intervention would be compatible with Israel’s international obligations under the TRIPS Agreement (specifically article 13, which sets the “three step test” for any exception or limitation of the property rights) and Rome convention (specifically article 15 which forbids compulsory licenses regarding broadcasters’ rights), and also the WIPO 1996 treaties which we understand that Israel signed (but has not yet joined). we reserve the right to come back on this point separately. We would be happy to engage with you and your colleagues as this matter progresses, Best wishes, Ross Biggam/ Vice-President Government Affairs EMEA Warner Bros Discovery Benelux GSM: +31 6 12 42 52 25 E: [email protected] Piet Heinkade 173, 1019 GM Amsterdam warnerbrosdiscovery.com