That sounds pretty shady. There's also the problem that most media generated globally is not French. Do they pretend to distribute the spoils globally?
In reality the system in these countries is pure corruption. The beneficiaries are large corporations who see it as an extra revenue stream and that's it.
Not completely. I know some french musicians who are great artists, but are not mainstream enough to sell enough records - and they do get state money to continue their art (progressive/psychedelic music, nothing tame).