Canal+Polska officially gives up five frequencies
Last week, pay TV channel Canal+Polska officially informed the National Radio and Television Council (KRRiTV), the media watchdog body, that it would renounce five out of its 19 terrestrial frequencies.
"They came yesterday (last Thursday) and submitted a motion in which they renounce those frequencies," said Joanna Stepien, press spokeswoman for KRRiTV Chairman Juliusz Braun. "It's only now that the issue has become really official."
In August, Canal+Polska CEO Christian Kozar sent a letter to Braun in which he stated that the company was ready to take formal steps to renounce 10 out of its 19 terrestrial frequencies (see the WBJ, Oct. 2-8). Kozar's request wasn't made public, however, and in October the company denied the content of the letter. Paulina Krasinska, spokeswoman for Canal+Polska, said that the company was not going to give up terrestrial broadcasting.
The KRRiTV is now going to call a tender for the renounced frequencies and start the procedure for a new concession. "But the council hasn't decided yet whether it will be an open kind of tender or a tender limited to broadcasters that need to expand their current reach and are trying to get additional frequencies," Stepien said. Among stations that will likely be interested in applying for the frequencies are the supra-regional stations TVN, TV4 and TVNiepokalanow, which is broadcast by the Franciscan Order, as well as commercial national broadcaster Polsat.
TVN joined the Cyfra+ digital platform last Friday.
TVN, which is also present on the Wizja TV digital platform, is 67% owned by ITI Holding and 33% by SBS Broadcasting. "While 330,000 subscribers (gained by joining Cyfra+) means no more than 1% compared to our terrestrial reach, it is a gain in terms of TVN's marketability," said Andrzej Soltysik, press spokesman for the station. "That 1% consists of well-off subscribers who often decide about shopping for their families; it's a good target group for advertisers."
According to Soltysik, TVN is also interested in developing its cache of programs with France-based Canal+, owner of the platform. "We're happy to offer our subscribers the 23rd new program this year," said Christian Kozar, CEO of Canal+ Polska.
Dorota Zawadzka, head of PR at United Pan-Europe Communications' (UPC) Polish operations, which owns the Wizja TV digital platform, said TVN's move was unsurprising. "It's natural that stations like TVN are present everywhere," she said. "It's in their interest to be available via satellite and cable. Sometimes it's a question of improving the quality of the transmission. In the case of TVN it's also a way of expanding its reach."
While TVN reaches 59% of households in Poland, it's struggling to boost that figure. "We're interested in the terrestrial frequencies that are to be renounced by Canal+; we are counting on a positive decision by the KRRiTV (responsible for allocating frequencies)," Soltysik said.
Lew Rywin is no longer president of Canal+Polska. But Nicolas Caujolle, the broadcaster's supervisory board secretary, said Rywin is now the supervisory board's president. "We haven't informed the press yet," Caujolle said. "It happened at the supervisory board meeting on Sept. 29 when Canal+ proposed appointing Christian Kozar as CEO and president of the managing board."
"In my opinion I was promoted," Rywin said. "Look at (Zygmunt) Solorz, he is also Polsat's supervisory board president.
"Young people took over the day-to-day operations at Canal+ and I can pay more attention to what currently involves me the most, such as the production of the new movie 'Pianista' (The Pianist) by Roman Polanski." According to Caujolle, the new post will be a different responsibility for Rywin. "But also a great responsibility," he said. "He is replacing Laurent Perpere, the No. 3 person (the director general for development and international affairs) at Canal+France."
RMF FM and Radio Zet, Poland's largest commercial radio broadcasters, whose licenses expire next year, are still waiting for the new concession process to begin.
The KRRiTV, which is responsible for granting the licenses, is at odds with the communications minister over his plan to optimize the distribution of radio frequencies and reshape the existing networks to save 12 additional frequencies. Commenting on a letter of complaint sent by KRRiTV head Juliusz Braun to Prime Minister Jerzy Buzek, the minister wrote that "positive changes on the market were likely" and listed 12 out of 103 frequencies used by Radio Zet and RMF FM that could be granted to other broadcasters without affecting the two stations.
"The council's stance is that only five out of those 12 frequencies listed by the minister could be saved," said Joanna Stepien, spokeswoman for Braun. "As for the remaining seven frequencies, taking them away would affect the quality of the two stations." Last Monday, Braun sent a letter to the minister explaining the council's stance. "If he (Braun) doesn't get a response within seven days, he's ready to put an announcement in the press and start the concession process," Stepien said. Under the law, the council's chairman, in agreement with the communications minister, is required to run an announcement in the press stating the number of available concessions and when broadcasters can start applying for them. So far, the council and the minister haven't agreed on the content of the announcement regarding Radio Zet and Radio RMF FM.
Last week, TVN signed a cooperation agreement with VIVA Polska, the daily Polish-music TV program that is part of Germany's VIVA.
Under the agreement, TVN will have access to VIVA's analog transponder. The move gives TVN the chance to expand its reach to areas that are not covered by its own transmitters and cable networks.
"It's not only that we will expand our reach by a few percent, we also gain new programming potential," said Mariusz Walter, TVN's president. VIVA's transponder might be available to the TVN signal as soon as the second half of November. As part of the deal, TVN will air VIVA's top programs every week. "VIVA will now be available to a large number of young people who watch TVN," said Dieter Gorny, president of VIVA Media's managing board. VIVA will probably be available on TVN in December. VIVA Fernsehen und COKG, which runs VIVA and has been in Poland since 1994, decided last year to tailor its programming to local tastes. Out of VIVA Polska's 10 programs, the majority are in Polish. VIVA Polska is broadcast on 150 cable networks around the country, including Aster City one of the largest and on digital platform Cyfra+.
Last week, Polsat revealed the details of its 2001 sales strategy. According to Andrzej Muszynski, head of Pai-Media, Polsat's (and TV4's) sales office, the station will continue its policy of short (less than four minutes) advertising blocks. "It's thanks to that strategy that people spend more time watching ads on Polsat than on any other channel," Muszynski said. Polsat will also introduce its so-called premium advertising blocks and keep its current 10% discount for new customers. Pai-Media also handles TV4, a new station that replaced NaszaTV. "TV4 is a kind of marketing experiment, but in 2000 it met the needs of the market and attracted ads addressed to well-off viewers living in cities," Muszynski said. "So in 2001 we will continue to concentrate on more urban audiences."
Canal+Polska received $12.2 million in compensation from UPC, the owner of the WizjaTV digital platform, after winning an arbitration case in a Geneva court earlier this year.
"I take it as moral and financial satisfaction after Wizja TV acted unfairly," said Canal+Polska's supervisory board president Lew Rywin. "We are going to spend that money on the development of Canal+Polska."
In 1998, Canal+Polska and U.S.-based @Entertainment, then-owner of Wizja TV, which UPC purchased in 1999, were potential partners in creating a single digital platform in Poland. But after signing a letter of intent to merge their digital platforms, they broke off negotiations in June 1998, saying the break was due to irreconcilable differences. @Entertainment claimed that Canal+ was unwilling to give it equal say in the merged venture.
In June 1998, both sides requested an international arbitration in Geneva and each demanded several million dollars in financial compensation. @Entertainment claimed that the April 1998 letter of intent stated it would be compensated for any losses it incurred if negotiations failed, and that such losses arose because it put the launch of its digital platform on hold during discussions with Canal+. @Entertainment's platform went on the air in August 1998 rather than April 18 as initially planned.
"As it turned out, soon after breaking off negotiations, Canal+ Polska did launch its digital platform," said Dorota Zawadzka, head of PR at UPC's Polish operations. "They simply had time to better prepare for the launch while talking to us." But Canal+ claimed it was not responsible for any damages and also demanded compensation for @Entertainment pulling out of the negotiations. Observers of Poland's media market have long predicted a merger of the two platforms. So far, the two companies have failed to make such a deal.
"Marriage is possible even in case of divorced couples," Rywin said last week.
