New year to see launch of new satellite/cable channels

Last year's severe advertising downturn forced a number of media companies to shut their doors or seriously cut back, but at least four new satellite and cable TV channels are set to go on air this year as industry firms that survived 2001's slump also laid the groundwork for expansion in the New Year.

Only days before Christmas, ITI Holdings announced that it had purchased RTL 7, a Warsaw-based TV broadcaster. ITI, owner of TVN, one of Poland's top private TV stations, plans to launch a new satellite channel based on the purchase.

ITI wasn't the only company negotiating with the radio station's owner, RTL Group, for the station's film library, formats and frequencies for analogue satellite broadcasting (operated by Paris-based Eutelsat). According to industry sources, ITI competed with TV Puls and Fincast, the Warsaw-based broadcaster of Polonia 1.

TV Puls is looking to increase its technical reach and Fincast this spring plans to launch a new TV channel, Tele 5.

Some market observers said that it might have been better for ITI to wait on the deal until Canal+ decides which satellite operator to choose for the joint Cyfra+ and Wizja TV digital platform. Two platforms generating huge losses, Cyfra+ and Wizja TV, merged last year in a bid to rationalize costs and finally break even.

Canal+ will choose between Luxembourg-based Société Européenne des Satellites (SES), a global satellite operator represented in Poland by Astra Marketing, and Paris-based Eutelsat.

"We had been negotiating (to buy) RTL 7 until we learned that Astra has a big chance to win the competition so now we're simply waiting for Vivendi's decision about the satellite operator," Dariusz Przychoda, general manager of Fincast told the Business Journal, referring to France-based Vivendi, which owns Canal+.

"That will determine which satellite most Polish viewers will choose," he said.

In addition to Fincast's planned launch of Tele 5 and ITI's new channel based on the former RTL 7, two more stations are likely to be launched this year and another could emerge.

ITI plans to start an entertainment thematic channel and RMF FM, one of Poland's top private radio stations, announced before the end of last year that it would launch a TV channel.

Also on the horizon, Dirk Gerkens, RTL 7's former general director, told the Business Journal that RTL Group might come back to the Polish market.

"If some good opportunity occurs such as, for instance, the purchase of shares in one of Poland's leading TV stations or participation in the privatization of one of Polish public television's channels, RTL Group might be back," he said.

Publishing industry forecasts caution

While TV companies forge ahead with plans for expansion despite a tough ad market, external events, government policy and a poor economy are forcing a more cautious approach on the publishing industry.

Sept. 11's terrorist attacks against the United States prompted many advertisers to drastically reduce their spending, deeply impacting publishers. And if the government finally decides on an import tax - highly promoted by its junior coalition partner - it could add to the financial burden on companies. To publishers who purchase materials, such as paper, from abroad, a 6% tax on all imports, may mean steep increases in production costs.

The economic situation - with growth forecast at only 1% - also weighs heavily with company executives.

Anna Kocinska