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Flying Through Turbulence – Media in the New EU Member States

ftm reports on media in the 12 newest EU Member States. Will media find clear air or more turbulence? 98 pages PDF file February 2007

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Polish President Puts New Spin on Polish Plumber Jokes

Firing yet another public television president sets no precedent in either Poland or the new Member States. Polish President Lech Kaczynski ordered TVP President Bronislaw Wildstein out at the end of February moving ever more quickly to bring the broadcaster under State control. Wildstein’s successor, former Kaczynski aide Andrzej Urbanski, was nominated and appointed within a week.
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Telewizja PolskaTelewizja Polska (TVP) operates five channels and 16 regional services, making it the largest public television broadcaster in the new Member States and one of the largest in the European Union. It continues to hold nearly 50% of the Polish television audience and a respectable share of television advertising. Growing competition from PolSat and TVN nibbles away at audiences (less) and advertising (more). And with ad spending fueled by consumer spending on the rise, more competition certain.

But Urbanski’s appointment is, in his own words, about a strategy “being chosen.” President Kaczynski’s political party is “rushing,” say opponents, to fill holes in Poland’s state agencies with party loyalists – like plumbers. Other, perhaps more dubious reports suggest Urbanski was hurriedly appointed to prevent more “bad coverage.”

The internal shuffling at TVP began immediately. TVP Information Agency director Andrzej Mietkowski quit one day after Wildstein was sacked. According to unconfirmed reports several journalists left and the TVP3 (the regional network) director was fired. The TVP Information Agency is the global news department for TVP. There’s no better place for a political turn-around than the news department, right?

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New Leadership Named for TV Poland
The new Polish government made good on its announced intentions to change the leadership at Telewizja Polska, Polish public television. The National Broadcasting Council named a new supervisory board, a new management board and new president, conforming to political party guidelines, within a week, finishing just in time for the annual TVP open house.

ProKom’s Ryszard Krauze Spins Radio Assets…to Himself
Further consolidating and restructuring his varied businesses, Polish millionaire Ryszard Krause moved Mediabank SA, owner of radio station PiN 102 FM, from Softbank SA – of which he is CEO – to Prokom Investments – of which he is CEO. Finishing that in late April, Krauze then moved to the bigger plan: merging Softbank with Asseco and creating Poland’s biggest IT company.

Too Hot? / Poland
There is an old music industry expression - Too Not Not to Cool Down. It’s meant as a warning to those hotter than hot new stars. It’s a concept not lost on media people in Poland. And the effect is being felt throughout the sector.

The Times Raises Its Newsstand Price 5p, Ending The 12-Year UK Quality Newspaper Price War; But In Eastern Europe Newspaper Wars By Free and Paid Tabloids Are In Full Swing
It was September, 1993. Circulation of the Times broadsheet was continuing its spiral downwards with no end in sight, so owner Rupert Murdoch resorted to that old standby in times of circulation crisis – he cut the newsstand price by 30%. That single move is credited today, 12-years later, with causing such a financial bloodbath for all of the UK national quality broadsheets that they have yet to recover fully. And it also literally changed the face of most British quality national newspapers.

EU Greets New Radio Audiences On 1 May 2004, in one giant stroke, 10 nations, 74 million people and more than 800 radio stations joined the European Union

One other tidbit, released by the European Commission DG Competition at the end of March, simply acknowledges receipt from Polish authorities of documents requested (read: required) for hearings into TVP and Radio Poland’s financing. Public broadcasting finance is constantly under the scrutiny of DG Competition because funds raised by broadcast license fees paid by households and businesses are considered public funds and, therefore, must be allocated transparently and in accordance with strict rules.

Public broadcasters with mixed advertising and license fee income – the majority in Europe - are under considerable pressure from Brussels to keep the books straight. The European Broadcasting Union’s legal department works night and day on State aid issues helping member broadcasters to stay out of the dock. Danish Public Television was ordered to return about €85 million in 2004. The German Private Broadcasters Association (VPRT) has repeatedly lodged complaints to the European Commission about German public broadcasters and State aid issues.

Poland’s competition authorities ruled that TVP engaged in advertising price dumping on a 2002 complaint from PolSat, TVN and publisher Agora. Officially, the ruling is not “complete,” so no action has been taken against TVP. Since 2002 TVP has had three presidents.

All countries joining the European Union sign on to what’s called the Amsterdam Protocol, the instrument cordially requiring States to give up State broadcasting (i.e. propaganda tools) for public service broadcasting with a clear and transparent separation from political influence. It does not mandate any particular financing scheme other than the funding mix must be clear and transparent. At it’s best the Amsterdam Protocol sets in place a framework for independent European public service broadcasting. At it’s worst, it’s vague and easily dismissed.

Seemingly, politicians in the new Member States – some, not all - are determined to roll-back to the good-old days of State broadcasting. Polish President Kaczynski has made clear that TVP has become “too independent.” The sacked Bronislaw Wildstein, notably outspoken before, during and now after his TVP presidency, has not quietly left the stage. His dismissal was politically motivated, he has said in a variety of interviews, and Kaczynski wants TVP under political control.

President Kaczynski’s not alone. Slovenia’s Parliament changed its public broadcasting law from best to worst within one year. Hungary’s Parliament used the power of indecision to put public television broadcaster MTV in a state of constant financial crises…requiring equally constant bartering with politicians.

Like it or not European Broadcasting Union (EBU) officials find themselves in the unenviable position of defending public service broadcasting to their own members. Famously EBU President (now former) Arne Wessberg put the wrench to the Hungarian government over the mess by ignorance at MTV, finally convening a high level conference of broadcasters in Budapest to bring home the message. So far – and its been a long holiday weekend – EBU has made no official comment regarding TVP.

Mr. Urbanski told the attentive Polish press that he would be fighting for audience. The lingering question is which audience?


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Polish PM’s Bodyguards Rough Up TV Reporters - April 19, 2007

That Polish Prime Minister Jaroslaw Kaczynski holds a certain discomfort about media is well understood. Bodyguards are there to protect their client – politician or super-star – from all sorts of unpleasantness. They were certainly doing their job when PM Kaczynski exited Parliament Wednesday (April 16) through the gaggle of reporters.

Reporters had gathered to ask about a Parliamentary vote on abortion. They were ignored as Kyczynski’s bodyguards formed a circle and hurried him out of the building.  One, well-known TVN24 reporter Katarzyna Kolenda-Zaleska, was knocked to the floor of the Parliament Building.

“Lady, you’ve lost your shoes,” said the polished and sensitive Kaczynski, noticing the woman sprawled on her back.

Fortunately, TV crews in the gallery above recorded the entire episode, which was broadcast on the evening news. Sometime after the broadcast, PM Kyczynski sent an apology and flowers.

ITN24 is the all-news channel of privately owned ITI Group, traded on the Luxembourg exchange.

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