Lenka Hrivnáková, Author at The Association of Commercial Television

MAN JAILED FOR SELLING STREAMING STICKS WITH UNLICENSED PREMIER LEAGUE COVERAGE

A man who sold streaming sticks capable of receiving pirated Premier League matches has been jailed for two and a half years.

58 year old Steven Mills from Shrewsbury was convicted following a joint investigation by the Premier League, West Mercia Police, and anti-piracy organisation FACT.

Mills ran the organisation via a closed Facebook group and claimed to have more than 30,000 subscribers. In June, he pleaded guilty to multiple fraud offences at Shrewsbury Crown Court.

He was also convicted of a separate offence for watching the illegal content that he was supplying to others, with the court recognising that his own use of the unauthorised service was a distinct crime in itself. Mills received a separate prison sentence for this offence.

Kevin Plumb, Premier League General Counsel, said the Premier League was aware of the use of the sticks for distributing unlicensed content.

The service provided customers with a bespoke app and streaming devices, including the sticks to view a wide range of sport and entertainment content. Mills took significant steps to disguise his activity from detection including posting bundles of cash to suppliers and operating under a number of aliases.

In his sentencing remarks the judge in the case commented on the sophistication of the operation. The judge highlighted the use of Virtual Private Networks (VPNs) and recorded tutorial videos which supported his customers to access the illegal content.

Trading under the names Pikabox and Eyepeeteevee, the organisation received more than £1 million over five years. The service was primarily provided to UK-based customers and was also sold to a network of resellers, who are currently under investigation.

Kieron Sharp, CEO of FACT, added:

“FACT are proud to have supported the Premier League in this major investigation. This successful outcome would not have been possible without the collaboration and support of West Mercia Police and GAIN. FACT are committed to safeguarding the broadcast rights of our partners and we hope that the severity of the sentence sends out a clear message that piracy is a crime that is taken very seriously by the courts.”

The enquiry and subsequent raids by police provided intelligence which identified more than 1,000 of his customers. In January this year police and FACT officials visited a number of those individuals, serving notices to cease illegal streaming activities with immediate effect.

Source: broadbandtvnews.com

MEDIA CLUB TO INCREASE TV ADVERTISING PRICES BY 22% IN 2024 AND CHANGE TARGET AUDIENCE

The price of TV advertising on stations represented by Media Club will increase by at least 22% next year. The basic target group is also changing to 18-69.

A noticeable increase in the price of TV advertising for 2024 is also confirmed by the second of the leading players in the domestic commercial market. Media Club, which sells TV advertising space for the channels of Prima Group, Barrandov, Óčko and other thematic stations, will increase advertising prices by an average of 22% next year. Media Club presented its business policy for 2024 on Wednesday afternoon.

“Media Club is performing well but there is an outflow of viewers in the TV market and overall viewership is down by about 15%. In September, we failed to place about 20% of demand and we have to respond to that. That is why we have to increase the prices, but we also want to be efficient and innovative,” said Media Club’s head of advertising sales, Jan Makal.

The highest CPP increase is again for higher client volumes. Footage and seasonal coefficients increase – for 30-second spots the index increases to 1.05. Media Club thus wants to encourage clients to use shorter spots. Seasonal coefficients are increased, especially in the second half of the year. The off-prime-time coefficient is also higher.

A new feature compared to the current Media Club trading is the change in the sales target group from the current 15-69 to 18-69. For eGRP, which Media Club plans to strengthen for next year, it will use the 15-54 target group.

Clients with a budget of over CZK 10 million will have a new obligation to specify the distribution of GRPs of campaigns within the calendar year and an obligation to invest in other media channels (i.e. sponsorship, product placement, online without eGRP, HbbTV, etc.) depending on the client’s budget. Clients must guarantee a certain amount of investment in other media channels in order to reach the relevant CPP (see the table below).

There are also 10% surcharges for late booking and placement on premium shows.

For 2024, one Media Club bundle will remain on all TV stations represented by Media Club. The distribution of individual channels is optimised by Media Club according to the current performance of the represented channels and demand.

Sales policy of Media Club for 2024

Source: Media Club

Source: Media Club

Zdroj: Media Club

Source: Media Club

Clients who make a 2024 commitment by 1 December 2023 will be subject to an off-prime-time index of 0.90 and a prime-time index of 1.05. For commitments made by 12 January 2024, the prime-time index will be applied at 1.05 and the off prime-time index at 0.95.

Media Club’s stations recorded a market share of 30.24% in the 15-69 audience group in the first nine months of this year (source: ATO-Nielsen, all day). With Atmedia stations, Media Club’s share increases to 36.08%. In both cases, they were the strongest entity in the all-day advertising market. In the new 18-69 target group, Media Club’s all-day share was 35.49% this September.

In its business policy for 2024, TV Nova expects the price of TV advertising to increase by 18%.

Source: mediaguru.cz

CZECHS LIKE CRIME SERIES AND GOOD STORIES, SAYS NOVA’S PROGRAMMING DIRECTOR

The best time managers are mothers, laughs Silvia Majeská, mother of triplets and Programming Director of Nova and Markíza TV groups. What do the Czech viewers look like and what are they interested in? And what will Voyo focus on?

Last year, Nova TV ranked first in the ratings for young viewers, but it has been stagnating for a long time. In recent years, it has struggled to maintain its lead over its rival Prima but both commercial TV groups are slightly behind the public Czech Television in overall ratings.

One of the steps that could bring Nova back to its former television prominence was the election of a new Programming Director, Silvia Majeská. When she joined the station more than two years ago, Nova was undergoing a digital transformation.

What changes were involved?

We launched primarily our streaming pay platform Voyo, which was the initial vision for the whole transformation. We expanded the development team, ramped up production, and started building a product proposition for Voyo Originál, which saw us bring out eleven feature series or miniseries in about twenty months.

But we are also going digital internally: we are trying to automate processes and incorporate new technologies that will make our work easier.

Previously, TV viewers had only a few channels and one platform. How does television work today?

Things have changed dramatically since I started working in the television environment. We used to deal with physical videotapes on which we screened films, then DVDs came along, followed by the digitisation of whole material libraries, these were huge changes.

Before that, one had turned on the TV and had the same programme set as the night before. Nowadays, most people have a smart TV, they turn it on, they have apps… It is a completely different way of consuming content, with more use of mobiles and tablets.

A couple of years ago, we launched secondary stations to support the multi-channel environment and give viewers a choice. But people are still looking for a source of entertainment and they like good content. They like to watch good stories, that is not changing.

And do you think a classic TV can cope with it?

I think there will always be room for it. Of course, we can debate what target audience will watch linear TV providing more passive entertainment – that is, when I turn on the TV, a show will pop up and I either like it or switch to another one.

Video platforms provide an active style of viewing, one has to make a deliberate choice. And we know from global surveys that many consumers of content in the digital world struggle to navigate the content on offer and choose something for themselves. Classic TV will always have its place, depending on the mood of the viewer.

What makes Nova specific?

We have the strongest news service, the strongest daily series with a long tradition and our regular shows. We are the biggest and most successful reality show producer and we set the trends in a way. I dare say we currently have most of the local premium content.

One of my main goals when I joined was to strengthen Nova’s market position, increase the volume of projects in development, strengthen the thematic stations of Nova Group and launch a content strategy for Voyo. We have already come a long way in this respect and the results speak for themselves.

We have fourteen creative producers working under the direction of Michal Reitler who is excellent, so I think we are booming in that respect. There are a lot of shows being made and it is really great that we are pushing genres that were not on the air before.

Such as?

This year, for example, we aired the new series Sex O’Clock on Voyo. It is a bit of a cheeky show for youngsters and for parents who want to give their teenagers a sneak peek. We have also started to produce reality-inspired crime series, which is another genre we had not covered before. We are developing documentary series, and we are also going to strengthen the journalism section.

How do you compete with giants like Netflix and Amazon?

We are local, that is our advantage and that is what we focus on. We want to bring the best local content to our viewers, in the local language. We understand the environment in which our viewers live, and we understand them and their interests. We know the historical and cultural context.

You mentioned the genre of crime series. Are those attractive for Czech viewers?

We can see from the viewing figures that the Czechs like crime series very much, and that is why we are devoting a lot of attention to them. That was apparent last autumn when we launched the final season of the series Modrava – it had fantastic numbers. So did Specialisté.

Do Czech and Slovak viewers differ?

Each country has its own specifics. Slovak viewers seek strong emotions, whether through reality shows or fiction content. On the other hand, the Czech viewer is more focused on internal logic. They look for it in the story, it has to make sense and be believable. For the Slovak viewer it is not so essential. Nor is the popularity of crime series the same.

How has the Covid pandemic affected TV ratings?

Compared to 2019, the number of viewers has increased significantly. As everyone was at home, it was natural. We are now back to pre-Covid values.

It is obvious that, in particular, the young generation is responding strongly to the coming changes in viewing patterns. On the other hand, the middle and older generation finds linear TV a more convenient choice, perceiving its benefits in passive viewing.

Has the demand for longer programmes changed?

During the Covid-19 period, most of the demand was for news coverage. People were looking for information, they needed to hear what was going on and what the latest government regulations were. We have adjusted our broadcasts to include live news programmes, which is generally a big benefit of linear TV: we can respond immediately, and we are flexible and relevant to a large number of viewers at once.

You are Programming Director of both Nova and Markíza. How does it go together?

The work principle is the same – how to set up the structure, how to lead the process of preparing programmes… Each TV group has a different programming strategy, and a different number of stations but they also have a lot in common in terms of functioning. We are working on several original projects that the TV groups are producing together and putting them on Voyo, for example.

Are you not in danger of burnout?

Working in television is so endlessly creative that every season brings new shows, new evolutions. My job is never the same, and that is what fascinates me about it. We have to constantly respond to current events, I am always learning something new, working with people who are inspiring and who push me further.

And do you manage to separate your personal and professional life?

My husband is a director, so it is challenging as we work in the same field. At home, we naturally talk about work as well and can understand each other. However, people who have young children will understand me when I say that children are a significant factor separating us from anything else.

When you are with them, you are attentive to them and their needs. Children come first.

Being so busy, how do you relax?

Physically at work. At home, I am too busy to sit down. My work motivates me, and my kids give me energy, they have plenty of it. Because they are still small, there is not much rest, but they are a lot of fun and I enjoy my time with my family to the fullest.

Source: forbes.cz

ASSOCIATION OF COMMERCIAL TELEVISION PARTNERING WITH FORUM MEDIA’S EFFIE STAGE

This year’s Forum Media conference, the largest domestic professional event focused on media, marketing and communication, will take place on 9 November 2023 at O2 Universum in Prague. This unique event bringing inspiration, information and interaction is organised by Marketing & Media in collaboration with the AKA and APRA associations. The Association of Commercial Television has partnered with the Effie Stage this year, featuring four speakers from AKTV’s member companies.

The Association of Commercial Television has become a partner of the Effie Stage at this year’s Forum Media conference, one of the most important marketing events, bringing together the biggest marketing and communications experts from around the world.

“We are very pleased to partner with such an exceptional industry event as Forum Media. We want to bring attendees inspiration from the world of television, which undoubtedly continues to deliver the best results for advertisers,”

says Klára Brachtlová, President of the Association of Commercial Television.

Effie is synonymous with the effectiveness of marketing communication. Effective communication must be of top quality. It is therefore logical that Effie is associated with partners who offer the highest quality content or services in the communications market. And commercial broadcasters are certainly one of them,”

adds Ondřej Novák, Executive Director of the Association of Media Agencies, commenting on the partnership.

On behalf of AKTV, the conference will feature four experts from AKTV’s member companies as speakers who will introduce the latest trends and reveal why television is one of the most effective advertising tools in the marketing mix during their presentations on the Effie Stage.

Martin Vogt, Senior Research Consultant in the Brand and Media Experience department at Eye Square, will present the first ever research conducted for AKTV, an exclusive Czech edition of the Track the Success study, which compares the effectiveness of the same adverts displayed across different media channels, namely TV, BVOD, YouTube and Facebook. The study, conducted in the Czech environment, focused on finding out how viewers and users perceive media content and analysing the impact that a specific situation has on the effect of an advertisement when perceived, building on a similar project conducted in 2021 in Germany, Austria and Switzerland. The conclusion of the study is clear: TV performs best in all countries studied on several key parameters – it generates the most interest, attention, memorability and understanding of the advertising message.

“Television benefits from a number of advantages at once. It offers the big screen as the most effective advertising space, a trusted environment and quality content as a transmission medium, and last but not least, the highest visual attention. This pattern holds true across all the countries where we have conducted research,”

said Marvin Vogt, commenting on the study results. The detailed results will be presented to the participants of this year’s Forum Media conference on 9 November at 3 p.m. in conference room D8.

Jakub Strýček, Marketing Director of Nova Group, will take the floor at 3:20 p.m. He will present the topic TV as an active tool for rapid brand building and reduced investment in performance marketing.

“Marketing investments in today’s digital world are increasingly going to various online platforms, but TV remains the most important media channel. Why? Not only does TV offer broad reach and deep emotional engagement, it is also becoming a key player in the combination of rapid brand building and optimising investment in performance marketing. Performance marketing is like waiting with a net for a school of fish. And we will show you how to reverse this reactive approach to waiting for customer activity – and be an active player with TV leading the fish right into your net. We will also look at the synergies of the TV and online worlds that lead to lower customer acquisition costs while increasing brand awareness,”

introduces his topic Jakub Strýček, who is responsible not only for the marketing, PR, communication, research and media planning departments at Nova but also for the creative department, i.e. for the implementation of visual design projects for new TV shows, self-promotion and image campaigns.

Štěpán Wolde, General Director of Stanice O (Óčko), Media One, will discuss the battle between modern technology and traditional media in his speech “It’s Not Over (Until It’s Over)”, which will start at 3:40 p.m. Štěpán Wolde has been working in the field of media since 1997. At IP Praha/ARBOmedia, he was involved in marketing and selling advertising space for TV, radio and print. In 2006, he founded Media One, a company that focuses on special (commercial) operations on TV screens. In 2008, he managed the entry of Atmedia into the Czech market and in 2012, he became the head of the music television ÓČKO.

At 4 p.m., Josef Beneš, Director of VOD services at FTV PRIMA, will conclude the presentation of experts from AKTV with the topic From the traditional to the brand new: The evolution of prima+ in the new digital age. During the speech, the audience will learn how the new prima+ works with a unique commercial proposition that combines three subscription levels. They will also learn about the evolution of viewership and key trends, the functions and role of local exclusive content, genre preferences and the main attributes of the new prima+ service. Josef Beneš, who is a media professional with more than a decade of experience and under whose leadership TV Prima has successfully launched a new hybrid VOD service under the prima+ brand this year, will also comment on what constitutes the market standard today in terms of product quality and personalised communication across customer segments.

The detailed conference programme is available on the conference website: forummedia.cz/program.

EUROPEANS ARE CONSUMING MORE PIRATED TV SHOWS AND LIVE SPORTS

A new study by the European Union Intellectual Property Office (EUIPO) has found the downward trend in piracy seen in recent years has been reversed.

Online Copyright Infringement in the European Union, Films, Music, Publications, Software and TV, 2017-2022 suggests TV content is the most pirated type of content in the EU and accounts for almost half of all piracy. The streaming of live events, particularly sport, is also on the increase, rising by some 30% between 2021 and 2022.

The study measured the number of monthly accesses per internet user to illegal content, which had declined between 2017 and 2021. In 2022, the trend was reversed, and digital piracy increased by 3.3%.

Speaking about the study, the EUIPO’s Executive Director, Christian Archambeau, says copyright infringement in the digital era is a serious concern and a direct threat to the creative industries in Europe. “The new study shows that there is still much work to do to tackle piracy. Stopping this phenomenon is complex as piracy is continuously evolving with technology. This is why understanding the underlying mechanisms of piracy is essential to adopt effective policies and measures that contribute to reducing it.”

According to the study, streaming has become the most popular method to access pirated TV content, with 58% of piracy in the EU occurring via streaming and 32% through downloading.

Online Copyright Infringement in the European Union, Films, Music, Publications, Software and TV, 2017-2022 is the third study on the evolution of web-based online copyright infringement.

The study examines the number of accesses to pirated films, TV, music, software and publications from January 2017 to December 2022, using a variety of desktop and mobile access methods, such as streaming, downloading, torrents and stream ripping software.

Source: broadbandtvnews.com

TV NOVA TO INCREASE ADVERTISING PRICES BY 18% IN 2024

In its business policy for 2024, Nova TV Group is counting on an average increase of 18 percent in the price of advertising space.

The expected increase in TV advertising prices for next year has been confirmed by the strongest player in the domestic commercial market in terms of turnover, Nova Group. For 2024, it will increase the price of advertising by an average of 18%. This is the highest increase ever in more than a decade and reflects an increase in CPP and other parameters (see below). “Due to the growing demand for commercial space and the higher costs of programme production, we are forced to increase the average price for clients in 2024 by 18%,” Jan Ulrych, Sales Director of Nova Group, told MediaGuru.cz.

The coefficient for the months of May, June, September, and October is also increased by five percentage points. Similarly, the coefficient for the placement of advertising in off prime time (i.e. outside the broadcast time between 5:30 pm and 11:30 pm) will be increased by five percentage points. Nova will continue to sell advertising space primarily in respect of the 15-54 target group.

New for next year are 10% surcharges for advertising placement in TV Nova’s premiere programmes, for which the TV station expects high demand from advertisers. Another new feature is a 10% late booking surcharge for orders received more than 10 working days after the programme’s release.

“A large number of our long-standing clients have taken the opportunity to sign up for the next year at more favourable pricing terms using the current 2023 parameters before the launch of our new business policy,” Jan Ulrych explained.

The benefits of investments in so-called other media channels (i.e. Nova Sport channels, online channels, product placement, etc.) remain unchanged. It still applies that Nova’s video platform Voyo is not going to introduce advertising yet.

Nova Group achieved the highest share in its primary 15-54 target group of all domestic TV groups this September. It saw a share of 36.01% in daytime and 38.77% in prime time, improving by more than one percentage point year-on-year (source: ATO-Nielsen).

Questions for Jan Ulrych

In the middle of the year, Nova announced that an increase in the price of TV advertising for 2024 was inevitable. How will the basic CPP change for 2024?

Despite the initial nervousness at the beginning of the year on the part of clients, advertising investments began to grow significantly in the second quarter and this trend continued in the autumn months. Due to the growing demand for commercial space, as well as higher costs in producing shows, we are forced to increase the average price to clients by 18% in 2024.

Will TV Nova’s regular and long-term clients receive preferential treatment? If so, how?

Our transparent business policy must apply equal treatment to all market players according to the official terms and conditions. However, it is important to mention that a large number of our long-standing clients took the opportunity to sign up for the next year at more favourable price conditions using the current 2023 parameters before the launch of our new business policy.

What is the design of the new business policy for 2024 based on?

The good news is that the basic principles of business policy for clients remain unchanged. We believe that our clients will appreciate the continuation of the attractive purchasing target group of adults aged 15-54 for the next year. Within the pricing parameters, we have adjusted the coefficient for the 15-second spot footage and increased the coefficients in the busiest months of May, June, September and October by 5 percentage points. In terms of time zones, we are increasing the off-prime time coefficient by 5 percentage points.

What are the other main changes in Nova Group’s business policy for 2024 compared to this year?

We are introducing two new features next year. The first is a 10% surcharge for placing ads in our premiere shows, which we expect to see high demand from advertisers. The other new feature is a 10% late booking surcharge for orders received more than 10 business days after the program’s release. Due to the need to schedule sufficient advertising inventory capacity in time zones, it is important for us to know demand as early as possible. We believe that most clients will prefer to book campaigns early at no extra charge, helping us to optimise ad space while meeting campaign parameters.

What are the benefits of investing in other media channels and is the list of other media channels changing?

The discount policy of GRP sales in conjunction with investments in our other media channels remains the same and is widely used by clients. For example, we offer clients a wide range of options in product placement. We are a leader in content production on the Czech market, and we invest a significant part of our advertising revenues in it. We are expanding the spectrum of genres and the number of formats, we have significantly strengthened long-running formats, and we are shooting new seasons of popular series, currently I can mention the third season of Odznak Vysočina. This autumn, we brought back the legendary Kriminálka Anděl to the screen in its premiere series, and we are really pleased with the results. In our digital division, we are launching mobile apps for our reality shows with commercial promotion opportunities for clients. We have also made significant strides in influencer marketing relating to representing influencers and commercial use for interested clients. And finally, we plan to expand the programming offerings on our sports channels.

Is it still true that Voyo remains ad-free?

Our long-term goal is to make Voyo the number one local player on SVOD platforms and the largest library of local content. We are naturally keeping an eye on the market and the various subscription models used by our global and local competitors. However, we are not considering a change now.

Source: mediaguru.cz

SEPTEMBER’S NUMBER ONE: PRIMA, THE SHARE INCREASED THE MOST BY NOVA

The Prima group became the new TV number one in terms of share of viewership this September. It achieved the highest share in the universal 15+ group. Nova is the strongest in the 15-54 and 15-69 groups.

The new TV leader in the over-15 audience group in all-day broadcasting this September was the Prima group. According to the official ATO-Nielsen measurement data, it reached a share of over 29% and improved by 0.35 percentage points year-on-year. The number two in this audience group was the Nova group with a share of 28.4%, which improved the most year-on-year – by more than one percentage point. The third highest share was achieved by the previously leading Czech Television, whose share fell by 2.3 pp y-o-y to 26.5% this September.

In prime time (19:00-23:00), Nova remains the most watched group. It also has the highest share in the 15-54 (primary CS for Nova) and 15-69 (all day and prime-time) viewing categories. Nova has improved in all major audience categories and in both full-day and prime-time viewing time zones compared to last September.

The Prima group improved against this only in the universal 15+ group, and only in all-day viewership. In other audience categories and in prime time, its share declined year-on-year. This is also true for its primary buying target group 15-69.

The share of Czech Television has decreased compared to last September in all monitored values, most significantly in the universal group 15+.

The growth in market share was confirmed by the media agencies Atmedia and Televize Seznam in September.

Share of TV groups (%), September 2023, full day:

THE PROPOSAL TO INCREASE MONEY FOR ČT IS SHOCKING AND UNACCEPTABLE WITHOUT DISCUSSION

The proposed major media amendment to provide more funding for ČT (Czech Television) and ČRO (Czech Radio) cannot be adopted without a discussion on the role of the public service. the discussion should have been held at the beginning of the preparation of the new legislation, says president of AKTV, Klára Brachtlová.

The Ministry of Culture has prepared a draft amendment to the Czech Television Act, the Czech Radio Act and the Radio and Television Fees Act (the “major media amendment”) without defining the tasks and content of the public service. This is unacceptable according to Klára Brachtlová, President of the Association of Commercial Television (AKTV), which brings together the largest commercial television groups Nova, Prima and Óčko TV. Without this step, it is impossible to quantify the amount the public service media should receive, she adds. She also says that the commercial TV companies were shocked by the draft of the major media amendment, which would lead to an increase in fees for ČT to CZK 160 per month and for ČRo to CZK 55 per month, because they were not invited to discuss its wording.

In its statement, the Association of Commercial Television has given several reasons why it does not agree with the major media amendment. One of the reasons you gave was that the bill should have been preceded by a discussion on what the public service should contain. Does AKTV have an idea of what the public service should look like in respect of television broadcasting?

The question of the design of public service broadcasting has no simple answer. The definition, which exists in some form, is one thing but its codification is another and more difficult one. We take our inspiration from Western countries, e.g. from the BBC, which defines the public service through the pillars of strategic priorities. I would prefer a more specific definition including commitments on the number of hours devoted to specific content formats. However, what we are facing is that there has been no discussion on this topic in our country. It should take place with the participation of media experts and should be at the beginning of the preparation of legislative changes.

AKTV is not the only one talking about the need for such a discussion. Who should organise it and where should it take place? Are the Chamber of Deputies or the Senate suitable institutions for such a debate?

We can draw on the recent experience we have with the discussion of the amendment to the Audiovisual Act. To discuss the amendment, the Ministry of Culture organised a working group comprising all the entities concerned. We think that the discussion on the amendment to the Act on Czech Television requires the same. This is an important change affecting the entire media market and it is absolutely necessary to hold such a discussion.

On the other hand, Culture Minister Martin Baxa said at a press conference where he presented the major media amendment that the proposal is the result of a year of preparation. So, there must have been some discussions.

Our belief was based on the fact that Minister Baxa publicly stated in July 2022 that the government would not increase the licence fees during its term of office. This made the resulting proposal all the more shocking to us. We were not invited to any group or informed of the text of the bill. Nor is it true that the Minister of Culture has been in close contact with the commercial TV broadcasters in respect of the draft amendment as he claimed at the press conference.

So, until the last moment, by which I mean the public press conference on 5 September, you had no idea what the amendment contained.

Exactly. We learned about it only from the press conference and then from the documents that the ministry put into the inter-ministerial comment procedure, i.e. directly into the legislative process.

It is right that the state is concerned about sustainable funding for public service media, but it must start from the other end. It must be known in detail what Czech Television uses the money for, the strategic priorities of the public service must be defined, and only on the basis of these steps should it be quantified how much Czech Television and Czech Radio need for this service.

What was the biggest surprise for you? The proposed amount of the TV fee or the expanded definition of a payer?

We understand that the Czech Television Act is thirty years old and that at the time of its preparation it did not take into account the possibilities of viewing media content that are offered by new technologies. From this perspective, the extension of the definition of a payer is understandable. However, we find the proposed amount of the TV licence fee shocking. The Ministry expects Czech Television to collect an extra CZK 1.4 billion in fees from households. This is an extra-large amount of money, and in such a case it must be defined what Czech Television will use these funds for. Otherwise, they may be invested in activities that may not be related to the public service. It is right that the state is concerned about sustainable funding for public service media, but it must start from the other end. It must be known in detail what Czech Television uses the money for, the strategic priorities of the public service must be defined, and only on the basis of these steps should it be quantified how much Czech Television and Czech Radio need for this service. And I am leaving aside the fact that there is an ongoing debate throughout Western Europe about whether licence fees are the right way to finance public service media (see the box at the end of the text, Ed.). In addition, the bill includes changes to the collection of fees from corporate payers, which is an additional CZK 400 million. This brings the total to just under CZK 2 billion for ČT.

From the perspective of Czech Television and Czech Radio, however, the argument of price increases since the last adjustment of the TV and radio fees 15 and 18 years ago, respectively, is logical. In that time, prices have risen more than the proposed fee increase. Thus, according to ČT’s estimate, the fair value of the fee this year is CZK 97, not CZK 135, i.e. 40% lower.

Yes, but if we compare the budgets of all Czech TV stations and see that the costs of ČT in production are two billion crowns, which means that ČT invests this amount of money in content every year, this is an incredibly high amount of money. We must therefore ask again why there is no audit of what ČT is spending money on and whether the investment is being directed towards public service activities and why the audit is not followed by the calculation of the amount for which the investment in ČT needs to be increased.

Czech Television has introduced a savings plan for 2023 and 2024, which intends to save a total of CZK 910 million for these two years. On average, this is more than CZK 450 million per year.

ČT’s CEO, Petr Dvořák, said that CZK 2 billion would be in Czech Television’s accounts this year. The source of this money is the aforementioned savings and the VAT refund from 2011 and 2012 in the amount of CZK 460 million (higher VAT deductions can be used by ČT and ČRo until 2024, Ed.). In our opinion, ČT has sufficient reserves to continue operating under the current financing scheme for at least two more years. This means that the discussion about the role of the public service and its form can take place without putting ČT’s operation at risk.

ČT has sufficient reserves; the discussion about the role of the public service and its form can take place without putting ČT’s operation at risk.

In its statement, AKTV also noted that the draft amendment provides for an increase in the TV fee but maintains advertising on ČT. The volume of advertising on ČT is currently limited to 0.5% of daily broadcasting time. In addition, ČT can only use two of its channels for advertising. The remark may suggest that AKTV would be in favour of removing advertising from ČT altogether. Is that right?

Yes, it is. We are not just talking about traditional TV advertising but also about sponsorship, which is also advertising from the TV viewer’s perspective. But the law distinguishes between the two types of commercial communication. ČT receives around CZK 250 million a year from sponsorship alone, which is money that belongs to the commercial market. Our position is therefore clear: public service media should not compete with commercial media in the way they finance their operations.

But if we take into account the current situation on the TV advertising market, which is basically dominated by two entities – TV Nova and Media Club – they are reaching the limits of their advertising capacity. Would the commercial TV market be able to absorb this money?

The point is that sponsorship has a different legal definition and is not subject to the legal limits of traditional advertising. Commercial TV stations have room to absorb this money.

Public service media should not compete with commercial media in the way they finance their operations.

Your statement also mentioned the connection between the amendment to the Audiovisual Act and the amendment aimed at increasing fees for ČT, which was Minister Baxa’s argument according to your communication. Could you elaborate on that?

There is no connection between the preparation of these two amendments, although the Minister suggested otherwise. In the light of the media amendment, however, it should be recalled that the amendment to the Audiovisual Act obliges commercial entities to pay 2% of their annual income from streaming services, plus it introduces a new obligation to invest directly in Czech audiovisual production. The amended law is expected to enter into force in 2025, which will subsequently bring a significant amount of money into the market. Combined with the increase in money for ČT, the volume of funds on the audiovisual market will increase significantly. Therefore, we are seriously concerned about market volatility and high input price inflation. We are a small market, with limited capacity, and we are already encountering this in many cases. Now imagine that in one year there will be an extra two billion crowns on the market.

PUBLIC SERVICE MEDIA FUNDING IN EUROPE

• Funding through a FEE PAID BY INDIVIDUALS. Countries where licence fees are collected include: Czech Republic, Croatia, Ireland, Germany, Poland, Austria, Slovenia and Great Britain.

• Public service media funding from a BUDGET prevails in Belgium, Bulgaria, Estonia, Cyprus, Lithuania, Latvia, Luxembourg, Hungary, Malta, Netherlands, Romania, Spain, and Slovakia.

• A less frequent way of public service media funding includes payments made TOGETHER WITH ELECTRICITY as is done in Italy, Portugal and Greece or collecting fees through special tax on public service broadcasting as in Finland, France and Sweeden.

• NORDIC COUNTRIES: broadcasting tax instead of licence fees (Norway, Island, Finland, Sweeden).

EXAMPLES OF CHANGES IN CERTAIN COUNTRIES

• NETHERLANDS: licence fees were abolished in 2000; since then, the Dutch public service broadcaster Nederlandse Publieke Omroep (NPO) is essentially financed by annual state subsidies.

• DENMARK: transition from licence fees to state budget funding. In Denmark, the licence fee was paid from 2018 until the end of 2021, replaced by state funding from 2022.

• FRANCE: In July 2022, the French Parliament approved the end of the payment of licence fees; the abandoned model is replaced by a minimum VAT increase.

• AUSTRIA: In the first half of 2023, it was decided that ORF would change its funding system. The new model will reduce the licence fee: it will now be EUR 15.30 per month (per household) instead of GIS (linked to the device).

• SWITZERLAND: TV and radio fees make up 81 percent of the budget of the non-profit public corporation SRG SSR. Following a referendum held several years ago, the fee structure was changed. Instead of CHF 451 per year, CHF 365 per year were paid from January 2019. In January 2021, the fees have dropped to CHF 335.

• NORWAY: Until 2019, NRK was financed through a licence fee linked to the ownership of a television set, but this model has been abandoned. Since 2020, NRK has been financed from the state budget. Anyone with a certain income must pay an amount to fund NRK through taxes. In practice, an ordinary household pays roughly the same amount in NRK tax as it used to pay in broadcasting tax, but the tax is no longer linked to the ownership of a TV set.

• GREAT BRITAIN: Discussions have been ongoing since last year about how the BBC will be funded in its next cycle of operation, from 2027. Different options for future BBC funding are being considered.

KLÁRA BRACHTLOVÁ, PRESIDENT OF AKTV: She has been President of AKTV since the start of 2023, in January she was appointed Chief External Affairs of CME, the parent company of TV Nova. She was working in the finance section of Nova Group from 2007. She gradually held positions in reporting, financial planning, and analyses, she was Deputy CFO from 2012, CFO from 2014, later statutory executive, and in 2019, she became CEO of TV Nova.

Source: mediaguru.cz

COMMERCIAL RADIO COMPANIES: THE DRAFT AMENDMENT POSES A THREAT TO THE DUAL MEDIA SYSTEM

Commercial radio networks organised in the Association of Private Broadcasters (APSV) reject the draft of a major media amendment and consider it a threat to the dual media system.

Commercial radio companies that are members of the Association of Private Broadcasters have also spoken out against the so-called “major media amendment”, which is supposed to bring more money to Česká televize (Czech Television) and Český rozhlas (Czech Radio) by increasing the television and radio fees. In their statement, they claim that they were not consulted in any way on the draft amendment, that they were bypassed by the Minister of Culture and that “no government in power since November 1989 has shown such a lack of dialogue”. The commercial radios are concerned that the ministry has not justified the “real need” for the fee increase and that the proposal contributes to the threat to the dual media system.

“We, therefore, reject the submitted proposal as a whole and call on the Government of the Czech Republic to withdraw the proposal from the inter-ministerial procedure and to initiate a real debate on the role of public service media in a technologically and socially changing media environment,” calls APSV.

According to APSV, the submitted draft media amendment demonstrates a “profound misunderstanding of the media environment and the development and direction of the market”. They also point out that there is no definition of public service and that opening up a debate on this topic is a prerequisite for any modification of the current funding of public service media. “In the radio market, it is absolutely clear that, for example, the existing digital stations, which are also financed from licence fees, have not justified their existence from either a technical or a listener perspective, and it is not even clear what public interest they fulfil,” APSV states.

Representatives of the commercial radio market are also bothered by the fact that the bill continues to provide for the presence of advertising and sponsorship in the ČRo broadcasts and on the internet. “The draft thus tilts the balance of the dual system one-sidedly towards the public media,” APSV claims.

The Association of Commercial Television, the Union of Publishers and the Internet Development Association (SPIR) have already expressed their opposition to the draft media amendment.

Czech Culture Minister Martin Baxa (ODS) said during the publication of the draft amendment that the governing coalition wants to ensure the stability of public service media. He argued that the amount of fees had not changed in 15 or 18 years and that commodity prices had risen by tens of percent in that time. Thus, the proposed fee increases would not exceed the rate of inflation over that period according to the Minister.

According to the Ministry of Culture submitting the draft, stakeholders can also comment on the proposal in the ongoing inter-ministerial comment procedure.

“The bill does not contain any provisions that would give rise to concerns about market imbalance, the principle of financing public service media remains the same, i.e. from licence fees. The volume of advertising for public service media does not increase in any way over the current situation,” Petra Hrušová from the Press Department of the Ministry of Culture responded last week.

Source: mediaguru.cz

ACE SHUTS DOWN “MASSIVE-SCALE” FRENCH PIRATE SITES

The Alliance for Creativity and Entertainment (ACE) has shut down Uptobox and Uptostream, two of the digital piracy world’s most notorious illegal video hosts.

According to ACE, the action, conducted in France and the United Arab Emirates, puts an end to a piracy operation that was well known for a decade among distributors of infringing content. The illegal service boasted massive audiences, mainly from France, but also from Indonesia, India and Mexico, with 1.5 billion visits over the last three years. The services hosted a sizable infringing library of film and television titles affecting all ACE members and many other rightsholders, allowing users to stream and download copyright-protected content at no cost or through a paid premium subscription.

The two French nationals who ran the illegal service are based in Dubai, where they amassed illegal gains from selling advertising and premium subscriptions.

Commenting on the shut down, Jan van Voorn, executive VP and global content protection chief of the Motion Picture Association and head of ACE, said: “The action we announced today demonstrates that even the most sophisticated piracy operations are not above the law.

“This case sends a strong message to criminal operators that their illegal actions will be put to an end eventually. They may think their operations are undercover, but ACE has the network, resources and expertise to identify them and shut them down”.

Céline Boyer, head of content protection at Canal+, added: “Canal+ supports swift action when acts of piracy compromise intellectual property rights, which in turn has an impact on our business.

“Our partnership with ACE is essential to ensuring that the creative marketplace continues to thrive by addressing content piracy at its source”.

Nathalie Bobineau, senior VP of international development of French public broadcaster France Televisions, said: “France Televisions has zero tolerance for piracy and illegal distribution of content and channels.

“By collaborating with ACE, we reinforce our commitment to upholding the principles of copyright protection and preserving the value of original content”.

ACE is the world’s leading coalition dedicated to protecting the dynamic legal market and reducing digital piracy.

In some cases involving illegal operations in France, ACE and the MPA collaborate with French anti-piracy association ALPA, who, earlier this year, obtained a blocking order for Uptobox and Uptostream in France.

Source: broadbandtvnews.com

STATEMENT OF PROFESSIONAL PUBLISHING ASSOCIATIONS ON THE PROPOSED “MAJOR MEDIA AMENDMENT”

Czech publishers represented in professional associations SPIR (Association for Internet Development) and UV (Union of Publishers) demand an expert discussion on the financing of public media and their role alongside commercial media. They criticise the fact that the introduction of the amendment to the acts on Czech Television, Czech Radio, and radio and television fees (the so-called major amendment on public service media) was not preceded by any professional discussion with the media sector and that the proposal skews the balance between commercial and public service news publishers.

First and foremost, we regret to say that such a significant increase in the budget of the public media was not preceded by the necessary discussion, which would have included the professional associations representing the providers of news content. These organisations are in permanent competition with the public service media. We fully appreciate the importance of the public service of ČT (Czech Television) and ČRo (Czech Radio) in the democratic organisation of our country and we do not question the importance of their existence by this statement at all. However, in an information environment that is increasingly moving online, there must also be strong private media to ensure the balance. Unlike public service media, private media are subject to market principles and therefore have to compete for their revenues through competitive mechanisms.

In conjunction with the continuous shift of public service media to the internet and the proposed extension of exemptions from online advertising, which is crucial for media funding, we are concerned that the proposed changes could have a very negative impact on private media, which form an essential part of the media and information scene.

The professional publishing associations have therefore jointly addressed the government representatives with a request to hold an expert discussion on the position and evaluation of all models of possible financing of public service media on the Czech media market before submitting the bill.

In our opinion, the submitted draft Amendment to the Act on Czech Television and Czech Radio and the Act on Radio and Television Fees with its current wording is completely inadequate, has not been discussed with the affected entities and would represent a major disruption of the stability of the entire media sector. We therefore categorically disagree with the proposed amendment and request that it be withdrawn from the legislative process and thoroughly revised.

Source: spir.cz