On the eve of great changes
Market leaders and regulators re-opened deep divisions over the future of digital broadcasting at WBJ's press breakfast.
The president of the National Broadcasting Council, Danuta Waniek, came under fire from industry heavyweights, including TVN's president Piotr Walter, UPC vice president Marek Sowa and Polsat's boss Aleksander Myszka during last week's debate on the biggest challenges facing the electronic media market in Poland.
During the two-hour discussion Polsat's Myszka said that he believed state aid is vital for the move to digitalization, while TVN's Walter cast doubts over whether the government possessed the funds necessary for such a program. "But there could be some kind of preferences for those who will bear the costs," Walter suggested.
The guests also touched on the long-term market development strategy that has finally been prepared by the council, with commercial media representatives complaining that they had too little time to become acquainted with the document. "We had just a week to study a 300 page document," Walter explained.
Concern was also expressed by KRRiT chief Waniek that the next government might reject the new strategy and scrap the council, undoing nearly a year's work by her 150-strong team. "If the market doesn't support us, it might take a few years to work out a new strategy and we have to keep in mind the quick development of technology," Waniek said.
Danuta Waniek,
President of the National Broadcasting Council (KRRiT)
On the need for an integrated regulator:
"The market is ahead of the state and governmental decisions, it is the market that sends a signal that a certain legislative framework has to be adopted. Of the former socialist countries, the Polish market is the best organized and the National Broadcasting Council now has to be changed.
"We believe that in Poland there should be something like Britain's Ofcom [Office of Communications] - one integrated regulator, because very often radio, TV and telecoms have to work together, cooperate together, because that's what technology offers today. Anybody who thinks I'll defend the Broadcasting Council as it functions now is wrong."
On the Opposition's plans to liquidate KRRiT:
"The media market should be governed by an independent and non-government institution and I'm not sure that those who have claimed to be democrats all their lives understand what they are doing. Is this really in the best interest of democracy, or are they only talking about business, money and profits?"
Marek Sowa,
Vice-President of UPC and president of media assosciation at PKKP Lewiatan
On foreign capital on the media market:
"The Polish electronic media market is relatively small. I have spent the last few months at an American university, the budget of which was twice as large as our media market.
"I wouldn't overestimate Western media concerns' interest in investing in the Polish market. I do not think anything can happen on the market without the knowledge of TVN, Agora or Polsat.
The success of TVN's IPO shows the right direction - a foreign media giant did not take over a Polish company, but anybody can buy the shares and when a foreign investor does so, it is a natural thing."
On digitalization:
"State aid is necessary in order for the conversion to the digital platform to be successful.
"For many viewers the cost of a decoder is too large. But in my opinion, the budget should also take into account paying for the decoders for the cable and satellite digital platform, not just for the traditional, terrestrial broadcasting."
Piotr Walter
President of TVN
On the issue of concentrating on capital or the viewer:
"Theoretically these are separate issue, but they shouldn't be. I believe that the future development of this area should be a combination of the two."
On TVN's strategy:
"The key element are our thematic channels. Looking for valuable sources of revenue - it is development through an attempt to extend our coverage. It is also a development through new technologies. But if I were to talk about big investments, takeovers, acquiring the owners packages in distribution channels, then I'd say that would be too risky a step to take at this stage."
On the regulator's desired competence:
"The general shape of the market should make the future regulator an institution that focuses on three most basic factions: first, protection of data desirable from a social point of view; second, prevention from illegal activities; and the support and protection of domestic capital."
Aleksander Myszka,
President of Polsat
On advertising and public TV:
"Changes should be introduced to advertising and public television. Public TV has a certain public and educational mission and at the moment it is trying to be even more commercial than us, both in terms of advertisement and content."
On Polsat's IPO plans:
"We are planning our IPO for 2006. We haven't concluded all processes of reorganizing the structure of our group. We do not exclude an industry-rooted investor, but we are only planning to issue minority shares, which isn't particularly attractive to investors. We are confident that it will help us increase our revenue, improve our profile and increase the number of viewers."
On digitalization:
"Without state help I think that this much-needed technological breakthrough won't be moving forward. It is not only about broadcasting systems, it is not so hard to prepare them, plus Polsat has a certain basis for the creation of such infrastructure with our own existing broadcasting network. More important is the issue of state help in the process of digitalization, the issue of decoders and equipment which would enable viewers to watch the programs."
