Media business operations

According to NIN reports, the general director of Radio-Television Serbia (RTS), Aleksandar Tijanic, not only took a bank loan in order to pay salaries to employees, but also decided to drastically reduce the same salaries – up to 80 percent in some cases. The already low level of collection of TV fee from citizens has dropped to 40 percent. The RTS' marketing department has not achieved satisfactory results, and its programmes have lost sponsors. At the same time, the legal department is losing legal cases before courts. Money is becoming increasingly difficult to find, which is now jeopardizing the very survival of the public service broadcaster.
(NIN, NUNS, 08.12.2011)

The Independent Journalists' Association of Serbia (NUNS) and the Journalists' Association of Serbia (UNS) have joined the appeal sent by the Association of Independent Electronic Media (ANEM) to the National Parliament of Serbia. The organizations call on the Parliament to reject the Draft Law on Cinematography, proposed by the Government, which would stipulate significant reduction of the funds collected by the Republic Broadcasting Agency (RRA) and the Republic Agency for Telecommunication (RATEL) from broadcasters and telecommunication providers. NUNS and UNS agree with ANEM's opinion that it would be dangerous and irresponsible to adopt the proposed law without a serious analysis of its effect on financing of the regulatory bodies (RRA and RATEL), the broadcasting sector and the electronic communication in Serbia. At the same time, the media and journalistic associations have been saying for years that the fees collected by the agencies from the electronic media should be reduced to the level that is required to pay for justified expenses of regulation.
(B92, UNS, NUNS, MC, 15.12.2011, Pravda, NUNS, 16.12.2011, Politika, Pravda, 17.12.2011)

If the proposed Draft Law on Cinematography is adopted by the parliament, the Republic Broadcasting Agency (RRA) will be required to finance film-making by allocating for such purpose 20 percent of the fees paid by broadcasters. In the case of the Republic Agency for Telecommunication (RATEL) and Radio-Television Serbia, these figures would amount to 10 percent and 1.5 percent of the monthly subscription, respectively. The Law has been sent to the parliament to be adopted, but its authors have overlooked the fact that it would violate other current laws – writes daily newspaper Kurir.
(Kurir, NUNS, 16.12.2011)

The Article 18 of the Draft Law on Cinematography is contrary to the Law on Broadcasting and the Media Strategy, says a letter sent by the Council of the Republic Broadcasting Agency to the president of the parliamentary Committee for Culture and Information, Jelena Trivan.
(Danas, NUNS, 16.12.2011)

Maja Pavlovic from Channel 9 in Novi Sad writes: "TV media market in Novi Sad is in a complete chaos. On the one hand, the local public service broadcaster, TV Apolo – now operating under the name of Novosadska Televizija – is not required to pay for the broadcasting license; it has not been privatized to this day despite the legal obligation to complete privatization of the broadcaster until 31 December 2007; and every year it receives around 1,000,000 euros from the city budget without any public contest. There are illegal broadcasters which make their revenue illegally. Cable distributors have a virtual monopoly over the distribution of TV programme (more than 95% of households in Novi Sad) and use their systems – thanks to the lack of legal regulation – to distribute programmes that are not licensed to be broadcast in Serbia. Without any explanation, distributors deny distribution to media outlets that have valid broadcasting licenses. Legal broadcasters operate completely at the mercy of market conditions, respect all legal limitations pertaining to their programme, pay all legally required taxes, fees and royalties, and their total revenue is still 2-3 times smaller than the subsidies paid by the City to its own local TV station. These TV stations have a right to receive funds allocated from the budget of the City of Novi Sad via public contests for programs and projects in the field of culture. Not a single private TV station has received more than 4,000 EUR for this purpose in Novi Sad in 2011.
(Kanal 9, 13.12.2011)

In countries around the world, governments have turned to using advertising to manipulate the media: Positive coverage equals more government ads; negative coverage leads to governments pulling their ads. In many cases, government officials are making advertising payments directly to individual reporters, and even calling editors upset over certain news coverage. Jessica Weiss
(IJNEditor, 19.12.2011)

Daily newspaper Vecernje Novosti writes that a serious election campaign cannot cost less than a million euros. Officially, TV advertising is the most expensive. One second of advertising in the Second Evening News (Dnevnik 2) aired by the public service broadcaster has the highest price and costs no less than 17,000 dinars. One second of advertising after 20.00 costs 12,000 dinars, while advertisements inserted in sport events cost 11,000 dinars per second. Billboards are also expensive. One week of advertising on a billboard in the capital ranges between 500 and 1,000 euros. Printing of posters costs between 15,000 dinars (for a small number of copies) to 40,000 dinars. Howver, Marko Blagojevic from CESID claims that official price lists are not relevant and that no one has ever paid such prices. "Pre-election advertising is purchased in the wholesale manner and discounts come into play just like in the case of any other goods. The price is agreed between the buyer and the seller", says Blagojevic.
(Vecernje novosti, 19.12.2011)

Privatization and the state-owned media

The Liberal-Democratic Party (LDP) has submitted a request to the Anti-Corruption Agency and the prosecutor's office demanding an investigation of the purchase of ownership share of the VAC company in the daily newspapers Politika, Novosti and Dnevnik by the owner of the daily newspaper Politika. "The corruption in this case is huge and extremely immoral", says Zoran Ostojic, an official of the LDP. A journalist from daily newspaper Danas asked the Ministry of Culture, the Provincial Secretariat for Information, the Serbian Business Registers Agency, as well as the daily newspapers Politika, Novosti and Dnevnik, whether VAC has sold to Kurir its ownership share in Serbian media outlets, but none of these organizations has been able to offer an answer to this question.
(Tanjug, Danas, Pregled, Dnevnik, Politika, Kurir, NUNS, UNS,13.12.2011, Beta, NUN S, 14.12.2011)

The owner of the daily newspaper Kurir, Aleksandar Rodic, denied LDP's claims that the newspaper had received money from the Fund for Assistance to the Media in Crisis that allowed them to buy VAC's ownership share in dailies Vecernje Novosti, Politika and Dnevnik. He said that the accusations were false.
(Beta, B92, Večernje novosti, 13.12.2011)

Petar Jeremic, the president of the Executive Board of the Journalists' Association of Serbia (UNS), said to Kurir that it was obvious that the Liberal-Democratic Party (LDP) had the intention to exert pressure. "I am absolutely opposed to any proceedings and campaigns aimed against journalists and the media", said the vice president of the Independent Journalists' Association of Serbia (NUNS), Mr. Janjic.
(Kurir, NUNS, 13.12.2011)

The Democratic Party (DS) intends to use a series of covert deals to buy the ownership shares belonging to the German VAC in the companies that own daily newspapers Politika, Vecernje Novosti and Dnevnik, says Zoran Ostojic from the Liberal-Democratic Party (LDP). Ostojic points out that the search for the financial construction necessary for completion of the deal was first attempted via abuse of funds from European and domestic subsidized loans to the media hit by the economic crisis. "According to indications available to LDP, the plan was partially changed after this attempt had been exposed. Now the intention is to use a consortium of domestic companies that are under the indirect control of the senior figures from DS to finance the purchase of shares", says Ostojic.
(Danas, Dnevnik, NUNS, 15.12.2011)

Aleksandar Rodic, the owner of the daily newspaper Kurir, said that he would inform all domestic and international journalistic institutions about the "disgraceful attempt of the Liberal-Democratic Party (LDP) to smear and destroy Kurir in the National Parliament of Serbia". "Everyone must be held accountable for their publicly-made statements", added Rodic.
(Kurir, NUNS, 15.12.2011)

The director of Kurir, Nebojsa Rodic, said in the programme "Between Two Fires", aired by B92, that Kurir was interested in purchasing an ownership share in these newspapers because they wanted "to prevent a publisher from Sarajevo, connected with drug cartels, from taking control over Politika".
(Politika, Vecernje novosti, Press, NUNS, 15.12.2011)

The Journalists' Association of Serbia (UNS) calls on the Managing Board of Politika AD and the Government of Serbia to fully inform the public about the sale of VAC's ownership share in newspapers Politika, Dnevnik and Vecernje Novosti. Taking into account the statement made by the director of the company Kurir Info, who said that Kurir intended to buy Politika in order to prevent a publisher from Sarajevo with ties to a drug cartel from purchasing the daily, the authorities have to confirm or deny whether there are any negotiations about the sale of major newspapers.
(UNS, 15.12.2011, Blic, 16.12.2011)

Sale and purchase of ownership shares between companies are in no way related to the Democratic Party (DS), including the case of Kurir or any other company, says the deputy president of DS, Jelena Trivan.
(Danas, UNS,NUNS, 16.12.2011)

A member of parliament from the Liberal-Democratic Party (LDP), Zoran Ostojic, demanded an urgent session of the Committee for Culture and Information to discuss the information the Kurir intends to buy the ownership share of German company VAC in three daily newspapers. He also demanded that he session be attended by representatives of state capital in the three newspapers, as well as representatives of media associations.
(Dnevnik, 16.12.2011)

The Independent Journalists' Association of Serbia demanded that the authorities investigate the claims that the daily newspaper Kurir intended to purchase the ownership share of the German company VAC in three domestic daily newspapers.
(NUNS, Pravda, 16.12.2011, Blic, 17.12.2011)

"The Independent Journalists' Association of Serbia (NUNS) considers that each change in ownership has to be transparent and in accordance with relevant laws. Since the media in question are very influential, any covert ownership transaction would create a possibility of favoring personal interests instead of the public interest", says a letter sent by the NUNS to the assistant minister of culture and information, Dragana Milicevic-Milutinovic, the president of the Committee for Culture and Information of the National Parliament of Serbia, Jelena Trivan, the secretary for information of Vojvodina, Milorad Djuric, and the president of the Committee for Information of the Assembly of the Autonomous Province of Vojvodina, Oto Bus.
(NUNS, 16.12.2011)

The director of the Anti-Corruption Agency, Zorana Markovic, said that the Agency would act on the complaint filed by the member of parliament, Zoran Ostojic, which mentioned the alleged intention of the newspaper Kurir to buy the ownership shares of the German company VAC in daily newspapers Politika, Vecernje Novosti and Dnevnik.
(Pregled, UNS, NUNS, Press, Vecernje Novosti,16.12.2011)

I am not aware of anyone's intention to purchase Politika NM. The Managing Board of Politika AD, which is a co-owner of Politika NM, has not been approached by anyone who wants to purchase stocks, says Jovan Simic, the representative of the state capital.
(Tanjug, Politika, NUNS, UNS, 16.12.2011)

In the last year, VAC announced its intention to withdraw from the Serbian market, and various prospective buyers have discussed possible purchase of ownership shares in Politika, Novosti and Dnevnik, says Max-Sebastian Winterfeldt, the deputy general director of Politika and a representative of VAC. He does not know whether the owners of Kurir are among them.
(Danas, NUNS, 20.12.2011)