Media business operations

State institutions in Serbia allocate around 15 million euros annually for advertising in the media. If we take into account the money that is officially allocated to media operations, the total sum that the media receive from the state amounts to no less than 40 million euros, which means that a quarter of the total advertising revenue of the media comes from state institutions – says the Report on Pressure and Control over the Media in Serbia issued by the Anti-Corruption Council. The Council says: "In this way, the government has a significant leverage to achieve financial influence over the media and therefore their editorial policy". "Apart from the basic form of advertising defined by the Law on Advertising, the media receive money from state bodies on the basis of specialized information services, contracted information services, fees for services, cultural subsidies, as well as project-based financing intended for the civil sector, including even research services", says the report.
(Danas, 03.10.2011)

Radio 033 announced that it had reduced the number of reports about the activities of the local self-government. The station was forced to take this step after the local self-government had refused to allocate 2.4 million dinars to media outlets in the city on the river Lim. Unofficial sources say that a half of the sum had been spent on advertisements and notifications.
(Večernje Novosti, 03.10.2011)

Privatization and state-owned media outlets

Four years after the purchase of the regional TV Pirot, its majority owner, Milorad Pejic, asked the Privatization Agency for a mutually-agreed termination of the contract due to the difficult financial position of the TV station which may lead to dismissal of employees. The station's bank account has been blocked and it owes money for electrical power and other obligations, while its employees have not received 2-3 salaries.
(Vecernje Novosti, Pravda, Pregled, Blic, Press, 03.10.2011)

The Assembly of Shareholders of the regional station Radio Sombor appointed a new Managing Board, while journalist Stipan Benic was appointed as a new acting director. The station was sold at an auction sale held on 2 November 2007, but the sales contract has been terminated because of the failure to fulfill obligations. Nine employees are producing a part of the news programme, although they have received only around 5,000 dinars for each month of the nine-month period of the last year. They have not received any salaries in this year. Employees in Radio Sombor expect the status of the station to be decided upon in the following period. It is uncertain whether the station would serve as a public service broadcaster of the citizens of Sombor or if it could be sold.
(Vecernje Novosti - Vojvodina, 03.10.11, Dnevnik, 04.10.2011)

The announced change in the ownership structure of the German media group VAC was of interest to Serbia even before the Axel Springer media group made its takeover offer and became involved in negotiations between the current owners. Both publishing companies already have a share of ownership in Serbian media, reports Danas. Springer has founded a joint company with Swiss corporation Ringier. Belgrade newspapers Blic, Alo, and NIN are owned by Ringier. VAC – which owns a part of daily newspapers Politika from Belgrade and Dnevnik from Novi Sad – has not officially given up on its intention to buy Vecernje Novosti from Belgrade. If its intention was realized and Springer became the owner of VAC, Springer would almost totally dominate Serbian media market and the Committee for Protection of Competition in Serbia would have a lot of work on its hands. In Germany, too.
(Danas, 04.10.2011)