Lenka Hrivnáková, Author at The Association of Commercial Television

IN OCTOBER, MEDIA AD INVESTMENTS WERE HIGHER THAN LAST YEAR

The volume of monitored ad investments in the media was higher this October than in the same period last year.

The monitored volume of ad investments in the media for the first ten months of this year is CZK 3.5 billion higher compared to the same period last year. This is a year-on-year growth of about 5%, according to Nielsen Admosphere’s monitoring data.

The data shows that print, radio and TV are the media types reporting the best ad performance in the period from January to October 2021 compared to the last year.

According to the data for October 2021, the growth in gross ad investments in the media is approximately three percent higher than in October 2020. Print media, radio and OOH saw a double-digit improvement. On the contrary, the volume of TV advertising experienced a one-digit decline. As we have already informed, the monitoring does not cover the demand that was not placed, which was the issue faced by TV companies this autumn.

The overview does not cover the development in online advertising because the monitoring only covers a portion of investments made in online advertising. We repeatedly note that the presented values do not express the actual amount of money placed in the media. The figures show price list values that do not reflect discounts or barters.

Source: mediaguru.cz

WORLD TELEVISION DAY CELEBRATES TODAY’S TV AROUND THE GLOBE

TV companies around the world celebrate World Television Day on 21 November to remind us of television’s continuous and profound transformation to become TV, a Total Video experience. As part of the annual United Nations initiative, a 30 second-spot will be broadcast and shared online worldwide as an invitation to discover it all.

Tomorrow’s TV, created today

For this special edition – the 25th anniversary of the initiative launched by the UN in 1996 – World Television Day celebrates a truth that holds around the globe: TV has evolved to become much more than it used to be. TV is now available at all times, at home and on the go, across all screens – large or small – live or streamed; offering both collective and feel-like-me experiences. TV is also measurable, connected, personalised and targetable.

“TV has connected us all during the COVID-19 pandemic, keeping us informed, educated, entertained and even inspired. During the recent COP26 Conference, broadcasters from across the globe played an essential role in showcasing the challenges and solutions when we work together to combat climate change. Long live television as a unifying medium!”

says Caroline Petit, Deputy Director & Officer in Charge, United Nations Regional Information Centre for Europe (UNRIC).

“It is fitting that on this occasion, the 25th anniversary of World Television Day, we not only look back upon the unwavering evolution of TV, but also keep a keen eye on the future. It is truly the DNA of our medium to continuously transform and meet the needs of our time, providing viewers, TV companies and marketers alike with new platforms, new possibilities and new ideas. With this in mind, we eagerly look forward to the next 25 years and the many innovations TV will bring to provide an even more compelling experience,”

asserts Katty Roberfroid, Director General, egta.

For more information, please visit www.worldtelevisionday.com

Press contacts:

Alain Beerens,

MarCom Manager, egta

Association of television and radio sales houses

T : +32 2 290 31 38

alain.beerens@egta.com

ABOUT THE GLOBAL TV GROUP

The Global TV Group is a grouping of broadcasters’ and sales houses’ trade bodies in Europe, the USA, Canada, Australia and Latin America, whose joint objective is to promote television and remind advertisers, journalists, agencies and industry peers about the effectiveness and popularity of TV.

http://www.theglobaltvgroup.com/

ABOUT THE ASSOCIATION OF COMMERCIAL TELEVISION IN EUROPE (ACT)

The European commercial broadcasting sector is a major success story. We entertain and inform hundreds of millions of EU citizens each day via thousands of channels available across Europe. The Association of Commercial Television in Europe represents the interests of 29 leading commercial broadcasters across Europe. The ACT member companies finance, produce, promote and distribute content and services benefiting millions of Europeans across all platforms. At ACT we believe that the healthy and sustainable commercial broadcasting sector has an important role to play in the European economy, society and culture.

https://www.acte.be/

ABOUT EBU

The European Broadcasting Union (EBU) is the world’s foremost alliance of public service media (PSM). Our mission is to make PSM indispensable. We represent 115 media organizations in 56 countries in Europe, the Middle East and Africa; and have an additional 31 Associates in Asia, Africa, Australasia and the Americas. Our Members operate nearly 2,000 television and radio channels alongside numerous online platforms. Together, they reach audiences of more than one billion people around the world, broadcasting in more than 160 languages. We strive to secure a sustainable future for public service media, provide our Members with world-class content from news to sports and music, and build on our founding ethos of solidarity and co-operation to create a centre for learning and sharing.

https://www.ebu.ch/home

ABOUT egta

egta is the association representing television and radio sales houses, either independent from the channel or in-house, that markets the advertising space of both private and public television and radio stations throughout Europe and beyond. egta fulfils different functions for its members in fields of activities as diversified as regulatory issues, audience measurement, sales methods, interactivity, cross-media, technical standards, new media, etc. During its more than 40 years’ existence, egta has become the reference centre for television and radio advertising in Europe. egta counts more than 160 members operating across 43 countries.

http://www.egta.com/

ABOUT UNRIC

The Brussels-based United Nations Regional Information Centre for Europe – UNRIC – provides information on UN activities to 22 countries and is active on social media and websites in 13 languages. It acts as the European communication office of the United Nations and its aim is to engage and inform European citizens about global issues. It also liaises with institutions of the European Union in the field of information. Its outreach activities, joint public information campaigns and events are organized with partners including the EU, governments, the media, NGOs, the creative community, and local authorities.

https://unric.org/

ADVERTISING INVESTMENTS IN MEDIA FOR THREE QUARTERS ARE HIGHER THAN LAST YEAR

The gross volume of advertising investment in the media was higher in the first nine months of this year than in the same period last year, according to the monitoring.

Monitored advertising investment directed towards buying advertising space in media for the first three quarters of this year remains above the level of the comparable period last year, according to Nielsen Admosphere monitoring. They are more than CZK 3 billion higher, representing a 5% increase.

In a year-on-year comparison, all monitored media types improved, according to the monitoring, except for outdoor advertising, whose year-on-year loss was only in single digits. According to the monitoring for the period from January to September, print advertising and radio advertising showed the highest increases. In September alone, radio advertising grew the most (+14%), and print and outdoor advertising were also better off year-on-year, according to the monitoring. Television advertising, on the other hand, declined by 3% y-o-y in September, according to the monitoring data. However, the monitoring data do not cover unplaced advertising, which did not make it onto the air due to the sell-out of advertising space.

The overview does not cover developments in internet advertising, as the monitoring of advertising only captures part of the internet formats. The monitoring of investment data also does not reflect the actual amount of investment that the media receive from advertising. It is a valuation of advertising space based on list prices.

Source: mediaguru.cz

TV GRPS ARE FOR THREE QUARTERS HIGHER THAN LAST YEAR

The delivered volume of TV ad GRPs for the first three quarters of this year remains above the level of last year’s comparable period.

The delivered volume of TV ad GRPs for the first three quarters of this year is 4.5 percent higher than in the same period last year. This is the outcome of Nielsen Admosphere monitoring. The result includes standard TV spots and sponsoring.

However, the figure does not reflect the actual size of TV ad demand given that not all campaigns could be included in broadcasting as the capacities are sold out. As we have already informed several times, this year’s interest seen in (not only) the TV ad market is enormous and the media faces the issue of having its ad space sold out.

The strongest entities in the TV ad market in terms of delivered GRPs remain Media Club and TV Nova. The highest year-on-year increase was seen by Česká televize (more than 50% year-on-year) and Atmedia (a third year-on-year).

Share of business networks in delivered GRPs, 1-3Q/2021

~~Pie chart:~~

Media Club – Nova Group – Total ČT – Atmedia

Source: ATO-Nielsen Admosphere, TV spots and sponsoring, calculated for purchase target groups of the relevant entities

Source: mediaguru.cz

ESTIMATE: INVESTMENTS IN COMMUNICATION WILL SEE A DOUBLE DIGIT GROWTH IN 2022

The estimate of marketing communication investments is favourable. Investments are going to grow by nearly 12 percent next year according to Nielsen Admosphere.

Total market size

Marketing communication in the Czech Republic

Investments in marketing communication (expert estimate of net marketing investments) – figures in billions of CZK

Estimated development of marketing investments until 2022, source: Nielsen Admosphere, presented at Brand Management, photo: MediaGuru.cz

Total investments in marketing communication should grow by 6.8% to CZK 124.7 billion this year according to the recent expert estimate published by Nielsen Admosphere. A more pronounced growth is forecasted for year 2022. It should increase year on year by 11.8% to CZK 139.4 billion. The data was first published at the Brand Management conference on Wednesday.

“In previous years, we saw a rather dynamic growth but the last Covid year has reduced the pace a bit. Finally, it resulted in a gradual stagnation rather than a slump,” said Tereza Šimečková, Chairwoman of the Board of Directors of Nielsen Admosphere (refer to the photo above).

This year’s growth is driven namely by entities not hit by Covid too severally, i.e. e-commerce. The situation also reversed for entities that discontinued, delayed or failed to increase their marketing investments last year. They start investing again this year and plan to support the situation, described Tereza Šimečková. This year’s average growth of investments in above the line communication is 6% according to price-list costs available to Nielsen Admosphere (figure from January to August 2021).

In 2022, investments in non-media channels (social media, events, gifts, direct marketing, etc.) are expected to grow faster by nearly 20%. Investments in media channels (TV, print, radio, internet, OOH) should increase by more than 6%.

With media investments, the experts addressed expect some growth nearly everywhere. TV, internet, press and radio should go up while no growth is anticipated in out of home advertising.

Among non-media investments, especially investments in sponsoring, production, shopper marketing and online and mobile support should grow. On the other hand, a greater decrease is predicted for gifts and telemarketing, which is affected by last year’s decline that is likely to continue.

Marketing investment stability and increase is confirmed by outlooks of marketers (about 120 addressed) for 2022. Those investing in non-media channels most often stated in the research (37%) that their budgets for the next year would correspond to their planned investments. A slight budget increase (of about 10%) is anticipated by nearly a quarter of marketers (23%) and 21% of marketers together estimate an increase of 25% and 50%.

Source: mediaguru.cz

THE ASSOCIATION OF EUROPEAN COMMERCIAL TELEVISION (ACT) IS CHANGING ITS NAME.

Grégoire Polad, CEO of ACT, has announced the new official name of the association: the Association of Commercial Television and Video on Demand Services in Europe.

The addition of Video on Demand (VOD) to the Association’s name reflects the leadership and centrality of ACT’s membership as VOD service providers; while maintaining a continued link to its core identity.

The media landscape is a dynamic environment in which ACT members are at the forefront of providing a diversity of innovative services. These are at the heart of media plurality and cultural diversity. The media is on the move and so is ACT. As the voice of TV and VOD in Europe, we continue to engage constructively and provide expertise and representation on issues facing the media space, explained Polad.

Source: www.acte.be

ADVERTISING INVESTMENTS IN THE MEDIA REMAINED ABOVE LAST YEAR’S LEVEL IN AUGUST

The volume of monitored advertising investment in the media for the first eight months of this year remains above last year’s comparable period, Nielsen Admosphere data show.

The volume of monitored advertising investment in media for the first eight months of this year remains above last year’s comparable period. On average, it is six per cent higher in monitored above-the-line media, according to Nielsen Admosphere monitoring. Monitoring for print media and television showed the highest year-on-year growth, followed by radio. According to the monitoring, investment in all monitored media types increased in August, with outdoor advertising increasing the most.

The overview does not cover developments in internet advertising, as advertising monitoring only captures a portion of internet formats. The investment monitoring data also does not reflect the actual amount of investment that media outlets receive from advertising. It is a valuation of advertising space based on list prices.

Source: mediaguru.cz

RISING INFLATION WILL INCREASE THE COST OF MEDIA SERVICES

At present, inflation in the Czech Republic reaches the highest values in more than a decade. Its growth will be reflected in the prices of media services.

According to the Czech Statistical Office (CSO), consumer prices have grown 4.1 % year on year in August, which has been the highest increase since November 2008. This development was driven by the prices of goods and services of nearly all sections of the consumer basket. The Czech National Bank (CNB) announced that the year-on-year growth in prices in August was one percentage point faster than predicted by the CNB’s latest forecast. After the removal of anti-epidemic measures, the surge of consumer demand results in higher prices, predominantly in the sector of services, explains CNB.

According to economists, inflation will continue to grow in the following months. “From local factors, the post-Covid price increase in some services or fast growth in property prices, which is reflected in inflation through higher prices of imputed rent, are likely to continue for some time. The price pressures relating to the development on global markets will be influenced by high prices of food, international transport, electricity, gas and other raw and other material,” said Patrik Rožumberský, UniCredit Bank’s analyst.

Miroslav Novák, analyst in Akcenta, predicts that the year-on-year inflation growth will be about four percent at least until the end of this year. A short-term increase to five percent also cannot be excluded. Radomír Jáč, Chief Economist of Generali Investments CEE, is of a similar opinion. “Towards the end of the year, year-on-year inflation may grow above 4.5 percent,” said Jáč.

In the long-term, the growing inflation may impact the prices of media services. According to Pavel Ryska, analyst in J&T, the prices of media services may grow faster due to the growth in consumer prices. “I believe that in the long-term, prices including the media ones will be affected predominantly by the rapid money expansion currently experienced by the Czech economy. The money volume in the Czech economy is growing due to the monetary policy easing by about 10 % per year. To put it simple, it is a rate at which the capability of economic entities to accept higher prices is growing. The current inflation of consumer prices is probably not at its high. At the end of the year, we expect about a five-percent growth. The price growth may accelerate also in media services, which may be driven by their cyclic nature,” he explains.

The rising inflation has an impact on the increase in the costs of human resources, i.e. also on the rise of the costs of media content production. Many foreign film and series production firms shoot in the Czech Republic, which increases the cost of production. Print periodical publishers are facing the growing paper prices. The paper industry addresses the changes caused by the pandemic that resulted in fluctuations of cellulose supply. According to the Czech Statistical Office’s data, the prices in the wood, print and paper sector increased by 24 percent in August. At the same time, there is lack of paper. Some book publishers have already announced that they need to delay the print of their planned book editions. They will also have to reduce the number of book copies intended for Christmas sale.

Together with the growing demand for advertising space, another factor influences media companies, which may affect their pricing for the next year. Economic recovery and clients’ ad spend shifted to the second half of this year increase the pressure on ad space. The growing demand on TV as well as on the internet and in radio stations often exceeds demand before 2020, i.e. before Covid.

View of Pavel Ryska, analyst, J&T

In the environment of growing inflation rate, the media segment has an advantage that it is not directly exposed to items whose prices grow the most this year. It is a typical development when in the initial phase of the cycle, prices of commodities such as material, energy, etc. grow the most. That is why production companies are likely to be affected. However, in the longer term, higher inflation may hit all industries, including media. Higher commodity prices are already reflected in the growing prices of consumer goods, which may finally result in higher wage requirements across the economy. It is the labour cost that I believe may affect expenses of the media.

In respect of the costs of media services, I would expect development to follow the economic cycle in the short term. Czech economy experiences recovery. In particular the demand for advertising is usually very cyclic. Some media types (print media, internet and OOH) may profit from the elections to the Chamber of Deputies this year, which tend to temporarily increase the demand for advertising and, as a result, the prices.

I think that in the long term, the rapid money expansion experienced now in the Czech Republic will have a major effect on prices including the media ones. The volume of money in the Czech economy is growing by about 10 % per year due to the eased monetary policy. In a simplified view, we can understand it as the rate at which the capability of economic entities to accept higher prices is growing. The current inflation of consumer prices of 4.1% is likely not to be at its high and at the year end, we expect a rate of about 5%. The growth may accelerate in the prices of media services, which may be facilitated by their cyclic nature.

Source: mediaguru.cz

AD INVESTMENTS IN THE MEDIA WERE GROWING IN THE FIRST HALF OF 2021

According to monitoring, the first half of 2021 brought more money from ad sales to the Czech media than the first half of last year.

Monitored investments relating to the purchase of ad space in the media in the first half of this year achieved a higher volume than in the same period of 2020, according to the data of AdIntel monitoring by Nielsen Admosphere. In aggregate, they were up six percent (CZK +2.7 billion) year-on-year in the monitored media types (TV, press, radio, OOH).

According to the monitoring, the highest year-on-year increases were achieved by print advertising (+11%) and TV advertising (+7%) in the first half and the volume of investments in radio advertising has also grown (+5%). On the contrary, OOH reported lower investments compared to last year.

This June saw a continued year-on-year growth in investments in all above-mentioned media types, with OOH leading the way (+23%).

The overview excludes comparison of investments in the internet advertising as the monitoring only includes banner and video ads and does not cover other forms of internet advertising.

Please note that the monitored investments do not express real financial volumes, they are based on price list costs and do not include discounts, bonuses or commissions.

Source: mediaguru.cz

AD INVESTMENTS IN MEDIA GREW SIGNIFICANTLY IN MAY

Monitoring for this May reports an almost one-third year-on-year growth in investments in media ad space.

The volume of gross monitored investments directed at media ad space purchases in May shows a significant year-on-year growth. On average, it exceeds 30% in the monitored ATL offline media. In gross figures, it is two billion Czech crowns more than last May. This is the outcome of AdIntel monitoring by Nielsen Admosphere.

A two-digit growth was reported by all monitored media with the highest values being achieved in print, OOH advertising and TV. Last May suffered from lower investments due to the first wave of the pandemic; compared to that period, this May shows that advertisers’ interest has recovered.

For the period of the first five month of this year (January to May), the monitored volume of ad investments is five percent higher than in the same period last year. Print and TV ads show the most favourable development while OOH advertising has lagged behind the last year’s volume.

The summary does not include investments in internet advertising as the monitoring only covers display advertising.

Please note that the volumes monitored do not express real volumes invested in media advertising, they rather show development trends.

Source: mediaguru.cz

STEPPING ON THE GAS. NOVA’S CEOS COMMENTING ON REDESIGNED NEWS AND KELLNER

How is the Czech economy doing? How are the most important firms in the country doing? And how do the bosses – the leaders of the firms – see the presence and future of the Czech Republic? Answers to these questions are searched in a series of interviews and articles to be found bellow:

We addressed tens of women and men leading Czech businesses. Not only the biggest ones but also the mid-sized ones across various industries. We want to know their experience gained in the most difficult year of the last decade and we want to find out how they has changed and what their direction is. We want to know how the backbone and brain of the Czech economy work and thus how the entire country operates and will operate in future.

Did it all happen so fast? This week, it has been two years since the strongest local TV – Nova – introduced its new co-CEOs: the long-term CFO Klára Brachtlová and the Sales Director Jan Vlček who has similar long-term experience.

Within twenty four months, they had to deal with the move under PPF’s control, changes relating to the coronavirus, huge investments and tragic deaths of people who were key to Nova’s business.

“Turbulent times,” agrees Vlček and Brachtlová adds, “Our appointment was a natural development and then, everything was strongly impacted by external conditions.”

From Barrandov terraces there is an impressive view of the sky above Prague. The clouds disappeared during our double interview for Forbes, which must have been rather symbolic for Nova’s CEOs. According to them, after all Covid adversities their TV is heading for a better future.

“We have many plans and we step on the gas,” agree the bosses. At the same time, they appreciate the model of two CEOs, which is not too usual in the Czech Republic.

“Coordination is more difficult but I keep saying that we complement one another very well and that we are able to substitute each other very effectively. I find it a big advantage not only in these times,” says Brachtlová.

According to Vlček, their long-term personal relationship, mutual trust and respect play a significant role in the arrangement. “We have to be able to rely on each other. Klára comes from the financial background, I was involved in sales and marketing, so we complement one another perfectly.“

Let’s discuss the key moments of your two years in office. How was the TV market impacted by the pandemic?

JV: It was definitely a shock in terms of demand. When the first wave came, the market slumped radically, by tens of percent. Every media type suffered significantly, TV probably came off best in percentage terms. But at the same time, the market was very fast to take a breath and bounce back, after about two months cooperation continued. The second wave surprised everyone by being so long and by locking down economy so thoroughly. But now we can see that clients are planning and starting their activities again.

Has the income from advertising changed for you?

JV: The most strict lockdown occurred before Christmas and as clients plan ahead the autumn investments did not suffer. The second half of the year was very good.

KB: In terms of TV consumption, it was ironically a very successful year, ratings went up significantly. Consumption of streaming platforms has also increased, in this respect, it was a very positive period for TV in fact. People were locked down in their homes and consumed more video content.

What measures did you have to adopt?

KB: We responded very early, in principle at the end of last January. And we were very careful, keeping the measures even in summer when other firms started easing. We strictly divided critical infrastructures into shifts so that the teams did not meet, we built a backup broadcast centre in our premises half a kilometre away, not to mention other preventive measures, such as wearing masks at work or the restricted operation of our canteen.

What was the hardest impact of the pandemic? Was it the impact on your original production?

KB: Definitely in the short term. For me it was the most complicated matter in the spring – in mid-March or so we all of a sudden stopped our production. People were scared, nobody knew what would come next. It had some effect on viewers, we reduced the number of premieres significantly in the spring. But all TV companies joined their forces and a shooting exception was negotiated with the Ministry of Health quite soon. At the end of last May, we were able to start our production again without masks but of course, under strict preventive measures.

JV: We are a company that is modern with considerable digital background, which means that although some teams – such as news production – were hit by the measures more, the rest of the firm was less affected.

We introduced nearly compulsory work from home, a number of things relating to clients were settled through video conferences. And it actually worked very well. People were suffering more socially.

A new owner was another turning point. What has changed with the entry of PPF? Or are the changes going on?

KB: The courtship period and finalisation of the transaction were relatively long and in my opinion, PPF’s entry confirmed the direction and strategy that our TV had followed. PPF is a very strong group ready to invest. It has been fully supporting us in the set direction, which is the production of quality content and its consumption across platforms.

Was the process hit by the sudden death of Petr Kellner?

KB: In the first place, we have to say that what happened to Mr. Kellner is a large human and family tragedy. It had an unbelievable personal impact on all of us, he was a young man, has children… That was the main effect.

As for the firm’s operation, PPF has a broad portfolio of firms with autonomous and very competent managements – I consider Nova to be one of them. In terms of operation, there were no changes, we continue our strategy.

JV: The firm has its plan for many years to come, teams are stable, structures are set up and working well. There are no changes from this perspective, the human aspect is the worst when you think about what happened.

Can anything change with the new owner of PPF?

JV: At the group level, management was assumed by the other co-owner who had been building the firm with Mr. Kellner since the start, for thirty years (Editor’s Note: Ladislav Bartoníček). So nothing has changed.

Radim Pařízek, the head of Digital Broadcasting, died unexpectedly this year as well …

KB: Digital Broadcasting is Nova’s strategic partner and Radim Pařízek was not only a business partner for me but also a close friend, his death touched me greatly.

As for our cooperation with the firm, we go on. Radim’s arrangements were very good, he had a strong team building relationships with the Czech Telecommunication Office and has brought up a strong person to replace him, his daughter. She is taking over the business together with Mr. Jeřábek and I find the firm stable.

Your position is also stable. What is the most challenging aspect of being a clear market leader?

JV: If you are in Nova’s position, you are always the first one who is attacked by those wanting to cut off a piece of the pie. We have been successful in keeping and strengthening our position and we continue growing in a number of areas.

It was not always easy, the TV market was fragmented, there are many more channels than five or ten years ago and the internet has brought considerable fragmentation of media consumption to the media landscape. Habits are changing and so are the target groups in individual media types.

Despite all that you keep your TV ratings.

JV: We are even increasing some of them. The news is an excellent example. The internet as such has brought disruption and we are happy to be in both the TV and online business. With the entry of PPF, we strengthened one of the pillars on which our strategy is built – a paid service funded from subscription. From this point of view, we are also growing in terms of the other pillar, which is being market innovator.

But the pillar is very little for the time being…

JV: We have big targets. Our long-term plan is very ambitious and is focused on digital, our strategy is to change the focus of our business model from a strict B2B approach to being able to adopt B2C, which is represented namely by Voyo. We have some quantified goals that approach a more even distribution of income from services and classic advertising. It is now dominant.

KB: However, TV advertising will remain the key pillar in the income structure.

Are you working with an alternative that digital will be key for you one day?

JV: There is a very interesting aspect that the difference between a combination of TV and digital and a combination of digital and another media type is huge. We can see that TV and digital are complementary. For example, from Voyo we have first-hand experience that every medium can communicate certain things better and their mutual powers are yet to be seen. In this respect, we are not worried that digital might slowly nibble away at TV. They are different things but they strengthen each other.

TV is still the most effective in terms of reach quality.

KB: We take the internet as a supplement, as an additional source of income that is definitely helping us and will help us financing the ever more expensive production of original content. The funds just do not flow from one area to the other.

JV: In addition, TV is still by far the cheapest medium to reach target groups in general – and is likely to keep this position for a very, very long time. TV is also most effective in terms of reach quality, you can show things to people on a big screen, with sound, which emotions. Which is much easier to remember than what target groups in other media can see.

For 2019, Voyo’s revenues were CZK 52 million. Where would you like to get looking forward?

KB: It is a complex and central project, we are working on it with other CME countries. Within five years, we would be very happy to have a million subscribers in the Czech Republic and Slovakia. From this you can count other figures.

Should your viewers expect that part of your production will go to Voyo only?

KB: We will not specify the level of investments but in terms of numbers of planned formats and shows, viewers will be affected this autumn when some shows will be shown primarily on Voyo. At least one format will go just to Voyo in the autumn, we are also planning a great show Love Island that will be run on both linear TV and Voyo.

How is the appropriate strategy sought in this respect?

KB: It is alchemy. The programming strategy has many variables: what our competitors are doing, what the power of the public TV is at the moment; working with target groups is also very important. Everyone expects that younger viewers will go to Voyo to see more adventurous formats than the classic linear TV viewers. This is the starting point.

JV: At the moment, we are preparing repositioning of TV channels, which is part of the alchemy. We seek to address individual target groups more effectively. There are more things to come. We want to optimise the existing portfolio of channels.

Can there be a change in the number of channels?

JV: Everything is open, we will see. We can expect the rebranding and repositioning project this year.

Is it still true that your target group is defined by age as 15–54? Does the young generation watch TV?

JV: There is an interesting effect. Teenagers tend to consume things more on digital displays but when they settle down, have their homes and families they come back to the more standard model, consuming TV. That is what matches their lifestyle. It is true that we reach the youngest groups either through targeted TV shows or by digital. But when we talk about category 20+, there is a return to the standard model.

KB: In addition, there are TV formats that are directed at substantially younger audiences, such as Pop Idol (SuperStar).

You increase investments in your original production by thirty percent year-on-year. What are they used for?

KB: For linear TV, we are working on the TV series Pan profesor starring Vojtěch Dyk and we are preparing a great surprise – we are working on the redesign of our newsroom. Viewers will have a chance to see one of the most modern studios in Europe this year. It is also a large investment.

We invited the world-famous studio Veech x Veech to cooperate with us and they made the design for us. And we are back at the alchemy: we had alternatives to choose from to the best of our knowledge and belief and the board has selected the one that we believe is the best.

Will the footage change? And the news faces?

KB: The change relates to the technological part and design so that the newsroom is modern and follows current trends.

JV: The concept of the studio should be more versatile so that it may be used for projects on the internet.

KB: We are working on it intensively and it will be ready soon, within months. We really have a lot to do now. This period is very challenging but great for us.

Are there any news to be introduced in the traditionally slower summer season?

KB: Apart from investing much, we are good economists. People are outside, they are not willing to watch TV and we need to make an effective use of our money. That is why we concentrate on the strongest seasons, which are autumn and spring.

JV: At the same time, in summer we can monitor behaviour of viewers who spend more time outside. We focus on what to offer them on Nova Plus, Voyo – so that they have more shows and can watch them wherever they want to.

Nova has always considered the idea of paid terrestrial broadcasting. What is the situation now?

KB: Our goal is to always, continuously and permanently maximize our content monetization. It is no secret that this is one of the ways. But as you have heard, we have a lot to do, we are stepping on the gas but having too many goals is tiring. It is an alternative that we have been taking into consideration for a long time, it fits perfectly in TV Nova’s strategy. But all in good time.

JV: We are making projections and analyses. It would be a way to further diversify our income but it is not a simple solution.

Source: forbes.cz

AMENDMENT TO THE COPYRIGHT ACT

At the end of 2020, the Ministry of Culture submitted to the Government of the Czech Republic a draft amendment to Act No. 121/2000 Coll., on Copyright, on Rights Related to Copyright and on Amendments to Certain Acts (hereinafter referred to as the “Amendment”). The Amendment to the Copyright Act is necessary for the implementation of Directive (EU) 2019/789 of the European Parliament and of the Council laying down rules for the exercise of copyright and related rights applicable to certain online transmissions of broadcasting organisations and retransmissions of television and radio programmes, and amending Council Directive 93/83/EEC (“OSC Directive”) and Directive (EU) 2019/790 of the European Parliament and of the Council on copyright in the digital single market (“DSM Directive”).

It is expected that in the coming days, the government will submit the draft Amendment to the Copyright Act to the Chamber of Deputies, as the last possible date for transposition of the above-mentioned directives is 7 June 2021.

The current wording of the Copyright Act already partially incorporates the legislation contained in the aforementioned OSC and DSM directives, and the remaining new rules should be addressed by the Amendment currently under preparation. In the following article, we will present the forthcoming changes to the Copyright Act, and briefly elaborate on the new obligations for internet service providers and exceptions to copyright – the so-called statutory licenses, such as data mining. We will also outline the new possibilities of using copyrighted content for teaching and cultural heritage purposes, or for the purposes of caricature, parody and pastiche. We will conclude the article by mentioning the newly defined additional online services of broadcasters.

New obligations for certain internet service providers

Greater protection of publishers’ rights

Perhaps the most significant new feature of the forthcoming Amendment is the proposed provision of Section 87b, which will implement Article 15 of the DSM Directive. According to the wording of the aforementioned provision, new rights will be established for publishers of press publications and new obligations will be imposed on providers of information society services (“providers”). Due to the vague wording of the draft Amendment, it is not yet certain exactly which providers will be affected by the Amendment to the Copyright Act, but we can already say with certainty that it will at least affect multinational companies such as Google, Apple or Facebook, which will now have to pay a certain amount to the authors of the content they download, based on a licence. What is happening nowadays is, to a certain extent, that these multinationals sponge on copyright holders, such as media houses and publishers, in the area of media content. They show previews of these publishers’ publications and attach their advertising to them, which they monetise while providing no remuneration to the publishers. This is a problematic behaviour that is addressed by the newly proposed wording of the Copyright Act. From the entry into force of the Amendment, providers will be obliged to agree with copyright holders on the licence and the method of remuneration for the publication of their works, even if it only includes previews of these works. The Ministry of Culture also proposes the introduction of an optional extended collective management scheme where individual copyright holders could be represented by a collective manager to facilitate negotiations with providers. According to the proposed wording of the Amendment, the above-mentioned copyright protection would be granted for two years from the publication of the work.

France was one of the first European countries to impose this new obligation on providers in line with the wording of the DSM Directive. It did not take long for Google to try to circumvent this standard using its position of dominance. Publishers could make a choice of either offering Google a licence to publish their articles for free or accepting the fact that Google will not offer their articles in its search or news previews. However, the local antitrust authority correctly assessed such conduct as an abuse of dominance and ordered Google to cease the conduct and to agree on a reasonable remuneration with the publishers. Incidentally, the first agreement between Google and publishers’ representatives, which many publishers believe to be unfavourable, has already been reached in France. It may give us at least some idea of how and to what extent copyright holders can be remunerated in this area.

Using protected content to share content online

Article 17 of the DSM Directive, which is implemented in the proposed Amendment in Sections 46 to 51, introduces further significant changes aimed at strengthening the rights of authors of protected works and reaching a compromise and agreement between online content-sharing service providers and copyright holders.

The Amendment will add further obligations to the defined providers in relation to the exclusion of their liability for unauthorised disclosure of works on their servers to the public. In particular, they will have to make every effort to obtain a licence for the copyrighted content or to ensure that it is unavailable if reported by the copyright holder. Thus, providers will now have to ensure in some way that reported works do not appear on their servers, even in the future. According to the current legislation, this obligation only applies to accurately reported content and in practice it is therefore unnecessary for copyright holders to report their works to providers, as they will reappear on their repositories within days.

The amendment then elaborates on other obligations of providers and provides for some relaxation of new obligations for smaller providers.

New statutory licences

Data mining

When data are mined, they are automatically analysed. The result of this activity is the extraction of information about the interrelationships and correlations within the data, which can then be used, for example, for scientific research or even for commercial purposes. As this is an automated activity, it also involves the analysis of copyrighted works. This brings at least some uncertainty about the infringement of the rights of the authors of these works by the data processors.

In the future, the Amendment should strengthen the legal certainty of authors and copyright holders in particular, and also that of “data miners”, by clearly defining the limits and boundaries of data mining. The new licence for making a copy of a work for the purpose of exploitation will be regulated in the provision of Section 39c of the Copyright Act.

The Amendment also provides for special licences for scientific and cultural heritage institutions. These institutions will not interfere with copyright under the given conditions if they make a copy of a work specifically for the purpose of data mining for scientific research.

Use of copyrighted works for educational purposes

In the field of education, the Amendment allows schools and other educational institutions to use copyrighted works for teaching purposes under certain conditions according to the new wording of Section 31a. While this authorisation should not apply to works that are primarily intended and sold for educational purposes, the vague wording of the proposed provision raises the question of which works educational institutions will ultimately be able to use free of charge.

Licence to use the work for caricature, parody and pastiche

According to the proposed Section 38g of the Amendment, a person who uses a work for the purposes of caricature, parody or pastiche will not interfere with copyright.

Making copies of works unavailable on the market by cultural institutions

A cultural heritage institution does not infringe copyright under certain conditions under Section 37b if it reproduces or communicates to the public for non-commercial purposes a work that is not available on the market and is in the institution’s collection. It will always be necessary to include at least the name of the author of the work, who may, however, object to such publication, even in advance.

Ancillary online services offered by broadcasters

The Amendment redefines and regulates ancillary online services offered by broadcasters in the proposed provision of Section 21a. These will include services such as simulcasting, catch-up or other ancillary material (e.g. trailers, reviews, photographs from filming). In addition to these ancillary services, the Amendment introduces a new country of origin principle to be applied between broadcasters and copyright holders (or collective managers).

Should the broadcaster wish to provide and make available its programme in other EU/EEA countries, the licence for such use in the territory of the Czech Republic will be a sufficient legal title to do so according to this principle.

Conclusion

The Amendment to the Copyright Act is expected to introduce several new definitions and institutes into the Czech legal system. It promises to strengthen the rights of copyright holders and to improve the accessibility of copyrighted works. In certain areas, the Amendment also raises concerns, for example, about insufficiently defined entities for which it introduces new obligations. Internet service providers may prefer to filter the content of their services more strictly in fear of possible sanctions, which may ultimately limit the availability of these works. However, we hope that these uncertainties will be resolved in the legislative process and that the Amendment to the Copyright Act will be adopted in early June. In practice, this will help to straighten out the current environment and help authors both in terms of the protection and availability of their works and in terms of fairer remuneration for them while not limiting the availability of their works on the internet.

Mgr. Martin Sojka,

Junior Associate

and

Mgr. Michal Štrof,

Partner

PPS advokáti s.r.o.

Source: epravo.cz