CEE 320 Spring 2008 Geometric Design CEE 320 Anne Goodchild.
News Media CEE Business Political Pressures
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Transcript of News Media CEE Business Political Pressures
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News media in Central and Eastern Europe:economic and political pressures
Vclav ttkaSenior Research Fellow
Media and Democracy in Central and Eastern EuropeUniversity of Oxford
Presentation for the Colloquium of Czech and British Journalists:Media and Democracy Political and Corporate Pressures
Prague 11 April 2011
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Media and Democracy in Central andEastern Europe (2009-2013)
10 new EU post-communistmember states
Focusing at news media:broadcast, print, online
Investigating therelationship between
quality of democracy andquality of media incountries of CEE
http://mde.politics.ox.ac.uk
http://mde.politics.ox.ac.uk/http://mde.politics.ox.ac.uk/ -
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Press Freedom Index (Reporters without Borders)
0
2
4
6
8
10
12
14
16
18
20
2002 2003 2004 2005 2006 2007 2008 2009 2010
Bulgaria
Slovakia
Latvia
Lithuania
Poland
Slovenia
Romania
Hungary
Czech Rep.
Estonia
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Freedom of the Press Index (Freedom House)
0
5
10
15
20
25
30
35
40
45
50
2002 2003 2004 2005 2006 2007 2008 2009 2010
Bulgaria
Slovakia
LatviaLithuania
Poland
Slovenia
Romania
HungaryEstonia
Czech Rep.
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Press Freedom Index (Reporters without Borders)
0
2
4
6
8
10
12
14
16
2002 2003 2004 2005 2006 2007 2008 2009 2010
avg. CEE
avg. SE
avg. NWE
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Freedom of the Press Index (Freedom House)
0
5
10
15
20
25
30
2002 2003 2004 2005 2006 2007 2008 2009 2010
avg.CEE
avg. SE
avg. WE
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Real GDP growth rate 2009(source: Eurostat)
-20
-15
-10
-5
0
5
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Total advertising expenditures: change (%) 2009/2008(source: WAN, 2010; own calculation)
-50
-40
-30
-20
-10
0
10
20
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Advertising expenditures in newspapers : change (%) 2009/2008(source: WAN, 2010; own calculation)
-70
-60
-50
-40
-30
-20
-10
0
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Average circulation per issue (total dailies): change (%) 2009/2008(source: WAN, 2010)
-40
-30
-20
-10
0
10
20
30
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Advertising revenues of paid-for dailies: change (%) 2009/2008(source: WAN, 2010)
-50
-40
-30
-20
-10
0
10
20
30
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Trends & consequences:
Because of weakening economic base, newsmedia in CEE are becoming more vulnerable topolitical + economic pressures
Journalistic autonomy is further jeopardised bychanging patterns of media ownership, with
established foreign corporations leaving the CEEregion and local media owners (moguls /oligarchs) pursuing other-than-business interests
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Political-economic pressures:state / party advertising
Romania : political parties the biggest advertiser in 2008(election year), with 8.4 % of all advertising expenditures
Czech Republic : Social Democratic Party single biggestnewspaper advertiser in 2009
Lithuania : Ministry of Agriculture the biggest advertiser in2009; government institutions accounting for 16.4 % of adsexpenditures
Hungary : government institutions + state-owned companiesaccount for over 25 % of total ads spent in 2009
Problem: state advertising through EU-funds (Czech Rep.,Lithuania, Slovakia, Bulgaria, Romania, Poland...)
Slovaks TV station TA3: the campaign promoting the EUstructural funds made up to 20% of the stations ads revenues in2008
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From transnationals to locals :de-globalization of CEE media markets?
2006, Orkla Media (-> Mecom ) sold its stakes in Lithuanian press (->Hermis Capital )
2007-2008, Handelsblatt Verlag left Bulgaria (-> Economedia / IvoProkopiev ), Czech Republic and Slovakia (-> Economia / Zden kBakala )
2009, Bonnier left Latvia, having sold Diena Group (-> RowlandFamily -> Viesturs Koziols ), and in 2010 they left Croatia
2009, Northcliffe International left Slovakia, having sold Pravda (->J&T)
2009-2010, News Corporation pulled out of free-TV business in
Poland ( TV Puls), Latvia ( LNT + TV5 -> Andrejs Ekis ), Bulgaria ( bNT ->CME) and Serbia 2010, Ringier sold its shares in two newspapers in Romania (->
Bobby Paunescu ) 2010, WAZ left Romania (Medien Holding -> Dan Adamescu ),
Bulgaria (Newspaper Group Bulgaria - > BG Privatinvest) and Serbia
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The close intertwining of oligarchs and political power is poisoning the market /.../ Oligarchs inthe Balkans are more and more buying [the
media] for themselves in order to exert political influence, not in order to win money. We cannot stand up to such market- destroying competition.
Bodo Hombach, CEO of the WAZ Media Group(novinite.com, 2 August 2010)
P i il di b i ( di P i il h b i (i d /
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Primarily media business ( media moguls )
Primarily other business sectors (industry tycoons / oligarchs )
Bulgaria Irena Krasteva (print, TV, publishing)Krassimir Gergev (advertising, radio,cable TV)
Sasho Donchev (print media, gas)
CzechRep.
Jaromr Soukup (advertising, PR,market research)
Zden k Bakala (print media, coal)Petr Kellner (print media, investments, real estate, insurance)Sebastian Pawlowski (print media, real estate)
Estonia Hans Luik (print, online media)
Hungary Gbor Szles (print media, TV, television sets +bus production)
Latvia Andrejs is (TV, film production) Aivars Lembergs (print media, oil)Viesturs Koziols (print media, real estates)
Lithuania Bronislovas Lubys (print media , oil etc.)Darius Mockus (TV, online media, financial investments)
Poland Jan Wejchert (2009; TV, cinemas) Zygmunt Solorz- ak (TV, pension funds, banking, energy)
Romania Dan Voiculescu (TV, radio, newspapers, energy, trade, services)
Sorin Ovidiu Vntu (TV, radio, print, real estates, banking)Dan Costache Patriciu (print media, petroleum)Ioan & Viorel Micula (food, beverages, estates, print media,radio, TV)
Slovakia Ivan Kmotrk (TV, printing plants,distribution, advertising)
Patrik Tk & Ivan Jakabovi (TV, print media, real estates,banking, investments, insurance)
Slovenia
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CEE businesstycoons /media owners
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Media autonomy: normative model of systemic separation
Media
BusinessPolitics
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Media instrumentalization: intertwinementof business and political interests
Media
BusinessPolitics
Political parallelism
Business parallelism
Berlusconization
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Types of editorial interferences Classical business PR
You need to have a product which appears to be the most credible one, and only through this product you can once in a while leak information which is useful for your business. It is clear that the one who owns such a medium will use thisopportunity once in a while. (editor of a commercial TV, Czech Republic)
Cover-up of corruption scandals / criminal charges against the owners Lembergs (Latvia) , Voiculescu, Patriciu (Romania)
Promoting/suppressing business allies/competitors TA3: circulating list of people/companies who can/cannot be interviewed Diena (Viestrus Koziols ): Diena should be independent, but when we write about
businessmen we must also keep in mind that they could be our advertisers ( NeliaLocmele, former editor-in-chief of Diena)
Attacking political opponents / protection of political allies Antena TV (Voiculescu) attacking incumbent president Basescu during elections TV JOJ (owned by J&T) suspended a journalist preparing a critical report about
financing of the party SMER
Common problem: low transparency of ownership relations
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Concluding remarks
Between a rock and a hard place? media driven by economic interests - > more
vulnerable under the conditions of a small marketand/or in times of recession (if not backed by strongforeign investors)
x media driven by other-than-economic interests - > risk
of political and business instrumentalization
Looking out for moguls philanthropists? Le Monde : Pierre Berge, Xavier Niel and Matthew
Pigasse (2010) The Independent : Alexander Lebedev (2010)
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Thank you!
http://mde.politics.ox.ac.uk
mailto:[email protected]://mde.politics.ox.ac.uk/http://mde.politics.ox.ac.uk/mailto:[email protected]