Poles approves increased foreign presence in broadcasters - Foreign investors can take as much as 49% in terrestrial broadcasters,
The government gave the nod last week to expanded foreign ownership of broadcasters, bringing regulation of the airwaves more in line with European norms and signaling possible ownership changes.
Under government-proposed amendments to the current broadcast law, foreign investors could increase holdings to 49% in terrestrial broadcasters and have sole ownership in satellite broadcasters. Currently, foreign capital is capped at 33% for all broadcasters. The proposal, designed by the National Radio and Television Council (KRRiTV), is now in Parliament for review.
If approved, industry members said the changes would likely have little near-term impact on broadcasters, but they would not rule out possible jockeying for position in the market over the long run.
"In principle, things won't change," said Georg Hotar, a London-based media analyst with ICE Securities. "Where there are these capital limitations in place, there are ways around it. And you always have significant freedom to structure profit sharing."
For example, Wizja TV, which transmits via satellite and cable, is 100% owned by United Pan-Europe Communications (UPC), and is based in Amsterdam.
Polsat, Poland's largest private terrestrial broadcaster which was formed with Polish capital, is the only large existing broadcaster that could undergo ownership changes, Hotar said. Broadcaster tvn, with 100% ownership by ITI Holding, could also take direct foreign capital, although the holding itself has foreign backers.
"Anyway, it's certainly an interesting development which puts Polish legislation more in line with the European Union," Hotar said.
Tomasz Kazmierowski, deputy general director of Canal+ Polska, refused to comment on the soon-to-be amended broadcast law.
"It's too early to talk about changes," he said. "There haven't been any changes in Canal+ Polska's ownership structure and there won't be any in the near future."
Polkom Invest has a 49.1% stake in Canal+ Polska, with 33% held by Canal+ France and the remaining 17.9% by Agora, publisher of daily Gazeta Wyborcza.
Opening the broadcast market to foreign capital will likely receive stiff opposition in Parliament, said Tomasz Welnicki, deputy head of the Sejm's Media and Culture Committee. "I know we will have to totally liberalize the market at some point, but it's too early for that now."
Polish companies are still too weak to successfully compete with media and telecom giants such as Vivendi or UPC, Welnicki said. "It's our problem at the moment, that Poland is entering the international capital markets but in capital terms is too poor to compete with others."
Last year, the Sejm rejected a similar amendment, "and I think that this time it might also be difficult to pass that change," Welnicki said.
