Media ownership controversy heating up

A draft law restricting multi-sector media ownership moved to the Sejm last week. Proposed by the National Radio and Television Council (KRRiTV) and submitted by the government, the media law amendment includes several controversial regulations that would prevent concentration of capital on the media market - a move that has been strongly criticized by private media companies. Private firms fear the new regulations would seriously strengthen public media at their expense prior to European Union accession - a time when they need to become more competitive. "We're not demanding (the government) defend us against foreign capital, we are simply against creating preferences for foreign capital," said Wanda Rapaczynski, president of Agora, publisher of Gazeta Wyborcza daily. "Under the draft, being a publisher of a daily with national reach, we won't be able to acquire a television station but for instance (German) Verlagsgruppe Passau, which holds several regional newspapers in Poland whose total circulation exceeds ours, only because it doesn't have a national paper will we be able to do that."

Under the draft law, a company already holding a TV or radio broadcasting license that covers more than 80% of the population will not be able to acquire another TV or radio station with a national audience. Changes to the amendment introduced by the government over the last few weeks ensure that the same rules apply to national daily newspapers and magazines - they won't be able to acquire TV or radio networks covering the entire country. Agora is one of several Polish media companies to be affected by the new regulations but it has reasons to be particularly upset because it is in talks with Polsat, Poland's largest private television, about acquiring shares in the station. "Too bad that the draft is described as something that (has led to conflict between) public and private media or has become a bone of contention between the government and Agora," said Włodzimierz Czarzasty, member of the KRRiTV and one of authors of the draft. "When EU capital enters the Polish market without any limits, all companies will have to comply with the same regulations, so it's not that we're specifically against Agora. It's only a coincidence that Agora is talking to Polsat, which is now looking for an investor and some people are using it as a convenient argument against the draft." According to Czarzasty, the draft amendment would simply bring Poland in line with other EU countries that have regulations preventing concentration of media ownership. "So it's an artificially puffed up conflict," he said. "If you look at legislation in other EU countries, our (council's) proposal is very mild."

Agora's Rapaczynski is certain a conflict exists. "I agree it's not a conflict between public and private media," she said. "It's a conflict between the government and independent media companies and it's about freedom of media. I don't need to add who (is in control) of public media in Poland these days." KRRiTV member Jarosław Sellin agreed that the government's real intention is to strengthen public media and fight against private companies. Sellin is one of four of the council's nine members who voted against preventing multi-sector ownership. "It's no secret that the Democratic Left Alliance (SLD), a post-communist political grouping that won last year's parliamentary elections, controls public media," Sellin said. "Some people in the SLD still treat media as an instrument of political propaganda so private media, which try to provide independent information, is a problem for them. Some members of the council, including Czarzasty, do not even try to hide their concern about the expansion of Agora." He added that concentration of media ownership can lead to problems but Polish companies are still too small and weak to be problematic. Other measures in the draft that would strengthen the position of public media include granting Telewizja Polska (TVP), the state broadcaster, the freedom to participate in the commercial market by establishing new channels, although they have to ask the KRRiTV for a license. In late 1990s TVP tried to establish a thematic channel with France's Canal+ but the previous government was against the proposal, arguing that TVP is a public company and, with revenue from both subscription fees and ads, already in a privileged position.

"And why shouldn't (public media) be able to make money? Is it forbidden?" Czarzasty said. "But please don't mix up the right to establish a thematic channel that can be part of TVP's mission and creating a purely commercial channel. If TVP hasn't lived up to its mission as a public broadcaster it's because it didn't have enough capital. TVP should be the most important medium for the state and that's why you have to take care of it. I don't really believe public media will begin commercial activities but let's allow them to have such an opportunity." Also under the draft, TVP would become the owner of public TV archives created before 1994. "TVP will get the archives and will thus block private broadcasters' access to it, which is highly unfair," Sellin said. "With the archives, TVP will have no problem establishing commercial channels. And new channels mean more ads for public TV and a smaller share in the ad market for private broadcasters." Meanwhile, private broadcasters last week sent a letter to President Aleksander Kwaśniewski asking him for a meeting. At press time, Kwaśniewski was scheduled to meet with representatives of Poland's major media companies. "I heard on the radio that the president said he would veto the draft," said Agora's Rapaczynski, who was going to participate in the meeting. "I know he's in a difficult situation; he'll need arguments and we can provide them. Will the Sejm override his veto? It's too early to assess. The draft has only had one reading in the Sejm."