In 1990, after 13 years of deliberations, the Knesset passed a law that paved the way for the establishment of commercial television in Israel. The goal was to enhance pluralism and create competition. Channel 2 began broadcasting on 4 November 1993. Three concessionaires were chosen: Keshet, Telad and Reshet. The concessionaires received a broadcasting contract for one decade and worked out a rotation agreement amongst themselves.
In 2005, the Ministry of Communications announced that two concessionaires would receive broadcasting contracts for the following decade. Of the four competitors (the fourth being Kan), Keshet and Reshet were chosen. Telad, which lost the bid, stopped broadcasting on Channel 2 in October 2005. Keshet and Reshet broadcast 3 or 4 days a week, rotating every two years. In 2011, Channel 2 installed a new digital system to preserve news content that was stored on aging videotapes and manage its archive library.