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Partners Question News Channel Expansion

A fundamental understanding in management is the metaphysical difficulty getting and keeping partners and shareholders on the same page. For many top executives the endeavor can be a career-ender. It’s easier for Rupert Murdoch, so far.

thinkExpansion is in the offing for pan-European news broadcaster Euronews. Plans for new dedicated language channels as well as enlarged bureau presence were announced by CEO Michael Peters at a Paris conference (October 2). The network has also applied for digital radio licenses in major French cities to offer an all-news radio component.

The news, however, did not go down well with Greek public broadcaster ERT, less than excited about new “competition” in the Greek market. Development of a Greek language channel in cooperation with ERT and Cyprus public broadcaster CYBC was announced in June. Both ERT and CYBC have contributed digital terrestrial (DTT) channels carrying Euronews English broadcast. ERT and CYBC are among the ten Euronews founding partners.

Immediately after the Euronews announcement the ERT board of directors proclaimed “complete ignorance” of the project, reported Greek news portal naftemporiki.gr (October 2). At issue is the status of the DTT license and staffing for the Euronews Greek-language channel. In their own announcement, the directors reserved the right “to pursue any legal action to defend the economic interests of ERT and by extension, the Greek government, and the attribution of criminal or disciplinary liability which may be found.” The “misunderstanding” seems to have arisen because the present ERT board of directors took office four days before the term of the previous board of directors expired, national elections affecting board composition. The Greek-language Euronews channel is set to launch in December.

Also announced by Euronews was an all-Hungarian language channel, based in Budapest, scheduled for launch in the first quarter 2013. For that Mr. Peters is still looking for a local partner, having discussed the possibility with public television broadcaster MTV “seven or eight years ago.” Nothing came of it; MTV being in a state of constant turmoil through that period. ”We would be very glad if public television is now willing to cooperate with us,” he said, quoted by index.hu (October 2).

Romanian public broadcaster TVR is, however, in “firm talks” with Euronews regarding cooperation and possibly a Romanian-language Euronews channel, reported Romanian news agency ACT (October 3). “The prestige partnership between TVR and Euronews is a premiere for the public television service in Romania, with the Romanian Television embracing the European journalistic principles and values and fulfilling its mission to keep the Romanian TV viewer updated on the latest European events,” said TVR president Claudiu Saftoiu in a statement.

Euronews is principally owned by 21 public broadcasters, the largest shareholders being French public television, Italian public broadcaster RAI, Russian state broadcaster RTR and Turkish public television broadcaster TRT. The European Union currently funds one-quarter of the Euronews €60 million operating budget.

The European Broadcasting Union (EBU) was instrumental in forming Euronews in 1993 to counter the influence of US news channel CNN. UK public broadcaster BBC, operator of its own international television news channel, does not participate. Former RAI chairman Paolo Garimberti was appointed Euronews chairman in December 2011.


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