Media business operations

A letter by the Bureau for Radio Advertising (RAB) says that "after the coming into force of SOKOJ tariffs, a huge number of radio stations from all parts of Serbia has contacted us, asking us to represent them and ask you to reconsider the new tariffs that threaten the financial survival of the media, especially during the crisis that has hit hard the local radio stations in Serbia. Obligations, including the minimal monthly fee, have increased by 300%-700%, depending on the station. We call on you to reconsider the tariffs and fees and to change their amount in accordance with today's conditions and the practice of other countries similar to ours."
(RAB, 10.02.2012)

After the scheduling of elections, around 200 observers of the Anti-Corruption Agency will begin monitoring all expenses made by political parties during the election campaign – in the field and in the media. "We will check the price of each paid time slot on TV stations and whether political parties have paid for more billboards then they claim", says Zoran Stojiljkovic, the president of the Board of the Agency.
(Blic, 21.02.2012)

Media Center is offering a 10% discount on press conferences (in all three halls) until the end of February 2012.
(MC, 23.02.2012)

The Ringier Axel Springer Serbia company has purchased MojAuto.rs, the second most-visited auto ads website in Serbia. Previously, the company took over in February Media Swiss d.o.o., which runs the website Nekretnine.rs, one of the most visited real estate portals in Serbia. The purchase of the MojAuto.rs website has to be approved by the regulatory body.
(Ringier Axel Springer, ABC Newsletter, 21.02.2012, ASMEDI Newsletter, February 2012)

In the last year in Serbia, revenue from advertising in the media fell slightly in comparison with the previous year. AGB Nielsen data shows that in 2011 the media earned 172 million euros in total from advertising, which is 1.7% less than in 2010. The biggest share – more than 55% i.e. 95 million euros in total (which is 3 million less than in 2010) – was earned by TV stations. The share of online advertisements increased during the year, as well as radio advertising, which is now 5.2% (4% in 2010). With regard to the press and external advertising, the distribution of revenue from marketing in 2011 did not change in comparison with previous years – more than 23% of the advertising money was spent on advertising in the press, while advertisements on billboards and other public places has a share of 11.3%.
(Danas, E kapija 25.02.2012)

The Managing Board of the Public Company Radio-Television Bor (BRT) has removed from position Miloljub Milosevic, the editor-in-chief. Three members of the Managing Board, who are also employees of the station, left the session of the Board. "Milosevic has been dismissed because of failure to implement the editorial policy. He allowed broadcasting of a video that violates the Law on Broadcasting", said Zvonko Marovic, the president of the Managing Board. The position will be temporarily filled by the editor of the news programme. The dismissal of Milosevic was supported by municipal branches of the Democratic Party (DS) and the Socialist Party of Serbia (SPS), which are members of the ruling coalition in the Municipal Assembly of Bor together with the United Regions of Serbia (URS).
(Vecernje Novosti - Srbija, 25.02.2012)

Robert Nemecek, the former editor-in-chief of TV Avala, publicly asked at a press conference held in Belgrade how it was possible for a station with such a short history to incur debt in the amount of 30 million euros. He asked how the money was spent and pointed out that it was not used to pay for employees' salaries. Nikola Vukomanovic, the president of the trade union of the employees of the station, said that the Republic Broadcasting Agency (RRA) and the Republic Agency for Electronic Communication (RATEL) became disinterested in further involvement after they received the remaining unpaid fees from TV Avala, while the Ministry of Culture had ignored the whole case during the two months of striking, claiming that it was outside their competence.
(Politika, Danas, Pravda, 15.02.2012)

Employees of TV Avala will try today, "precisely at noon", to enter the building and reach their workplaces. They call on the owners of the station to pay the remaining salaries in the best interest of employees and survival of the station.
(24 sata, Danas, 17.02.2012)

Contributors working for TV Avala, including those whose contracts have expired, were informed via SMS that their entry in the premises of the media company would not be allowed as of 20 February.
(Tanjug, B92, Politika, 17.02.2012)

Employees of TV Avala, who have been striking for 57 days already, were unsuccessful in their attempt to enter the building of the station because its door was locked.
(Alo!, Blic, Danas, 18.02.2012)

The Labor Inspectorate has filed charges against the owners of TV Avala because of their failure to pay the remaining salaries to employees, who have been on strike for 57 days.
(Politika, NUNS, Pravda, 18.02.2012)

Following their unsuccessful attempt on Friday, the employees of TV Avala will gather today at 10.30 in front of the building of the station and attempt to enter their workplace, together with the station's contributors.
(Danas, UNS, NUNS, 20.02.2012)

Yesterday, the security personnel of TV Avala prevented the temporary employed workers from entering the building. The employees demanded via SMS that the owners of the station, Zeljko Mitrovic and Danko Djunic, pay their salaries and contributions. Permanently employed workers were allowed to enter the building. At the moment, the owners of TV Avala owe four salaries and four monthly author fees to their employees.
(Beta, Politika, B92, UNS, NUNS, 20.02.2012, Dnevnik, Pravda, 24 sata, Press, 21.02.2012)

TV Avala is likely to get a new owner soon, one who is willing to invest money and improve the position of the media company. The candidate for the role is Veselin Jevrosimovic, the owner of Comtrade, reports newspaper Alo!.
(Alo!, E-kapija, 21.02.2012)

The director of the media company Pink, Zeljko Mitrovic, has announced the completion of the reform of his TV station. He told the daily newspaper Blic that the issue of debt would be solved soon, and that all salaries will be paid to employees. Asked about the future of TV Avala, where he is one of the owners, Mitrovic said that investments will continue and that the station would not be sold. All parts of the Pink company will continue to be controlled from Belgrade. "I will bring two top-class experts to serve as executives. The first one comes from London and will be appointed as the director of operations of the Pink Group. Previously, he worked for Time Warner and Turner Group, which is behind CNN. A financial expert from Merrill Lynch Group will control the finance, announced Mitrovic.
(Blic, Press, UNS, 28.02.2012)

After a meeting with the Republic Broadcasting Agency (RRA), the employees of TV Avala, who have been striking for two months, said that they would begin working immediately if the owners of the TV station offer them written guarantees that the remaining two salaries would be paid until April 1. The vice president of the Council of RRA, Goran Karadzic, pointed out that the Agency would take another step and attempt to talk again to owners of TV Avala about the demands of its employees.
(FoNet, Danas, Dnevnik, NUNS, Pravda, 22.02.2012)

The striking board of TV Avala announced yesterday that the employees of the station had decided to end the strike and begin working again. The striking board also said that the owners of TV Avala had failed to honor the written guarantees about the schedule of payment of the remaining salaries, which was agreed with the members of the Republic Broadcasting Agency (RRA). Despite this, the employees, who were striking for 65 days, have decided to end the strike in accordance with the previous agreement and because of good relations between the employees and the director and editor-in-chief, Dusan Pancic.
(Blic, Politika, Dnevnik, Danas, UNS, NUNS, 23.02.2012)

The two-month strike of employees of TV Avala has finally ended. The employees of the TV station are to begin broadcasting their regular programme today.
(Vecernje novosti, UNS, NUNS, 27.02.2012)

Funding of the news agency Tanjug from the national budget is a direct threat to other two news agencies, Fonet and Beta, that are exposed to market forces, says the president of the Independent Journalists' Association of Serbia (NUNS), Vukasin Obradovic. "The government should allocate the money that is intended for information using public contests, not by obsolete methods which are the main reason for financing of Tanjug from the national budget", says Obradovic.
(Pravda, NDNV, 25.02.2012)

Together with the German company VAC, Politika AD is the owner of a half of the joint company Politika Novine i Magazini (PNM). On 17 February, a single share of Politika AD on the Belgrade Stock Market was worth 49 dinars, while the total value of Politika AD amount to slightly more than three million euros. The same share was worth more than 2,500 dinars in April 2007, but its value has been on the decrease since then. Politika AD is in majority ownership of Serbia and her public companies, while PNM is jointly owned by the same company and German VAC.
(Danas - Biznis, 20.02.2012)

Daily newspaper Danas reports: "Newspaper Suboticke Novine, whose bank account has been blocked for more than a year, might undergo bankruptcy. The newspaper was first bought by a three-member consortium whose capital was of suspicious origin, a consortium whose members had no previous experience in publishing and who ran the newspaper without any professional knowledge or plans. Employees received no salaries, while the bank account of the company was used for various financial transactions in favor of other companies. The valuable building owned by the newspaper was mortgaged and the loan was used for the benefit of a completely different company. The sale contract was later annulled, after employees' protest. The newspaper was then bought by the consortium Vojvodina Info. The position of journalists and their salaries remained uncertain. As of 2010, the building was burdened by three mortgages owned by three banks – the Findomestic Bank, Erste Bank and Unicredit Bank. The banks are now searching for a buyer for the building in order to collect the debt. The bank account of the newspaper has been blocked for more than a year because of the debt amounting to 2.68 million dinars. Journalists have not been paid a year's worth of salaries, while their pension benefits have not been paid since as far back as 2008, according to some sources."
(Danas, UNS, NUNS, 28.02.2012)

The situation in the weekly newspaper Svetlost from Kragujevac is alarming and the possibility of entering bankruptcy or related proceedings is increasing, said yesterday the president of the Journalists' Union of Serbia, Dragana Cabarkapa. The value of property of the company amounts to 31 million dinars, while the total debt is 50 million dinars. The employer owes the employees around 8 million dinars in salaries and nine million dinars in pension contributions. Cabarkapa added that the situation was very difficult and that lawyers in Belgrade would try to find a solution. The Privatization Agency has annulled the contract on privatization because the owners failed to pay the fifth installment of the purchase price.
(Beta, Pregled, NUNS, UNS, 28.02.2012)