Lenka Hrivnáková, Author at The Association of Commercial Television

THE PROPOSAL TO INCREASE MONEY FOR ČT IS SHOCKING AND UNACCEPTABLE WITHOUT DISCUSSION

The proposed major media amendment to provide more funding for ČT (Czech Television) and ČRO (Czech Radio) cannot be adopted without a discussion on the role of the public service. the discussion should have been held at the beginning of the preparation of the new legislation, says president of AKTV, Klára Brachtlová.

The Ministry of Culture has prepared a draft amendment to the Czech Television Act, the Czech Radio Act and the Radio and Television Fees Act (the “major media amendment”) without defining the tasks and content of the public service. This is unacceptable according to Klára Brachtlová, President of the Association of Commercial Television (AKTV), which brings together the largest commercial television groups Nova, Prima and Óčko TV. Without this step, it is impossible to quantify the amount the public service media should receive, she adds. She also says that the commercial TV companies were shocked by the draft of the major media amendment, which would lead to an increase in fees for ČT to CZK 160 per month and for ČRo to CZK 55 per month, because they were not invited to discuss its wording.

In its statement, the Association of Commercial Television has given several reasons why it does not agree with the major media amendment. One of the reasons you gave was that the bill should have been preceded by a discussion on what the public service should contain. Does AKTV have an idea of what the public service should look like in respect of television broadcasting?

The question of the design of public service broadcasting has no simple answer. The definition, which exists in some form, is one thing but its codification is another and more difficult one. We take our inspiration from Western countries, e.g. from the BBC, which defines the public service through the pillars of strategic priorities. I would prefer a more specific definition including commitments on the number of hours devoted to specific content formats. However, what we are facing is that there has been no discussion on this topic in our country. It should take place with the participation of media experts and should be at the beginning of the preparation of legislative changes.

AKTV is not the only one talking about the need for such a discussion. Who should organise it and where should it take place? Are the Chamber of Deputies or the Senate suitable institutions for such a debate?

We can draw on the recent experience we have with the discussion of the amendment to the Audiovisual Act. To discuss the amendment, the Ministry of Culture organised a working group comprising all the entities concerned. We think that the discussion on the amendment to the Act on Czech Television requires the same. This is an important change affecting the entire media market and it is absolutely necessary to hold such a discussion.

On the other hand, Culture Minister Martin Baxa said at a press conference where he presented the major media amendment that the proposal is the result of a year of preparation. So, there must have been some discussions.

Our belief was based on the fact that Minister Baxa publicly stated in July 2022 that the government would not increase the licence fees during its term of office. This made the resulting proposal all the more shocking to us. We were not invited to any group or informed of the text of the bill. Nor is it true that the Minister of Culture has been in close contact with the commercial TV broadcasters in respect of the draft amendment as he claimed at the press conference.

So, until the last moment, by which I mean the public press conference on 5 September, you had no idea what the amendment contained.

Exactly. We learned about it only from the press conference and then from the documents that the ministry put into the inter-ministerial comment procedure, i.e. directly into the legislative process.

It is right that the state is concerned about sustainable funding for public service media, but it must start from the other end. It must be known in detail what Czech Television uses the money for, the strategic priorities of the public service must be defined, and only on the basis of these steps should it be quantified how much Czech Television and Czech Radio need for this service.

What was the biggest surprise for you? The proposed amount of the TV fee or the expanded definition of a payer?

We understand that the Czech Television Act is thirty years old and that at the time of its preparation it did not take into account the possibilities of viewing media content that are offered by new technologies. From this perspective, the extension of the definition of a payer is understandable. However, we find the proposed amount of the TV licence fee shocking. The Ministry expects Czech Television to collect an extra CZK 1.4 billion in fees from households. This is an extra-large amount of money, and in such a case it must be defined what Czech Television will use these funds for. Otherwise, they may be invested in activities that may not be related to the public service. It is right that the state is concerned about sustainable funding for public service media, but it must start from the other end. It must be known in detail what Czech Television uses the money for, the strategic priorities of the public service must be defined, and only on the basis of these steps should it be quantified how much Czech Television and Czech Radio need for this service. And I am leaving aside the fact that there is an ongoing debate throughout Western Europe about whether licence fees are the right way to finance public service media (see the box at the end of the text, Ed.). In addition, the bill includes changes to the collection of fees from corporate payers, which is an additional CZK 400 million. This brings the total to just under CZK 2 billion for ČT.

From the perspective of Czech Television and Czech Radio, however, the argument of price increases since the last adjustment of the TV and radio fees 15 and 18 years ago, respectively, is logical. In that time, prices have risen more than the proposed fee increase. Thus, according to ČT’s estimate, the fair value of the fee this year is CZK 97, not CZK 135, i.e. 40% lower.

Yes, but if we compare the budgets of all Czech TV stations and see that the costs of ČT in production are two billion crowns, which means that ČT invests this amount of money in content every year, this is an incredibly high amount of money. We must therefore ask again why there is no audit of what ČT is spending money on and whether the investment is being directed towards public service activities and why the audit is not followed by the calculation of the amount for which the investment in ČT needs to be increased.

Czech Television has introduced a savings plan for 2023 and 2024, which intends to save a total of CZK 910 million for these two years. On average, this is more than CZK 450 million per year.

ČT’s CEO, Petr Dvořák, said that CZK 2 billion would be in Czech Television’s accounts this year. The source of this money is the aforementioned savings and the VAT refund from 2011 and 2012 in the amount of CZK 460 million (higher VAT deductions can be used by ČT and ČRo until 2024, Ed.). In our opinion, ČT has sufficient reserves to continue operating under the current financing scheme for at least two more years. This means that the discussion about the role of the public service and its form can take place without putting ČT’s operation at risk.

ČT has sufficient reserves; the discussion about the role of the public service and its form can take place without putting ČT’s operation at risk.

In its statement, AKTV also noted that the draft amendment provides for an increase in the TV fee but maintains advertising on ČT. The volume of advertising on ČT is currently limited to 0.5% of daily broadcasting time. In addition, ČT can only use two of its channels for advertising. The remark may suggest that AKTV would be in favour of removing advertising from ČT altogether. Is that right?

Yes, it is. We are not just talking about traditional TV advertising but also about sponsorship, which is also advertising from the TV viewer’s perspective. But the law distinguishes between the two types of commercial communication. ČT receives around CZK 250 million a year from sponsorship alone, which is money that belongs to the commercial market. Our position is therefore clear: public service media should not compete with commercial media in the way they finance their operations.

But if we take into account the current situation on the TV advertising market, which is basically dominated by two entities – TV Nova and Media Club – they are reaching the limits of their advertising capacity. Would the commercial TV market be able to absorb this money?

The point is that sponsorship has a different legal definition and is not subject to the legal limits of traditional advertising. Commercial TV stations have room to absorb this money.

Public service media should not compete with commercial media in the way they finance their operations.

Your statement also mentioned the connection between the amendment to the Audiovisual Act and the amendment aimed at increasing fees for ČT, which was Minister Baxa’s argument according to your communication. Could you elaborate on that?

There is no connection between the preparation of these two amendments, although the Minister suggested otherwise. In the light of the media amendment, however, it should be recalled that the amendment to the Audiovisual Act obliges commercial entities to pay 2% of their annual income from streaming services, plus it introduces a new obligation to invest directly in Czech audiovisual production. The amended law is expected to enter into force in 2025, which will subsequently bring a significant amount of money into the market. Combined with the increase in money for ČT, the volume of funds on the audiovisual market will increase significantly. Therefore, we are seriously concerned about market volatility and high input price inflation. We are a small market, with limited capacity, and we are already encountering this in many cases. Now imagine that in one year there will be an extra two billion crowns on the market.

PUBLIC SERVICE MEDIA FUNDING IN EUROPE

• Funding through a FEE PAID BY INDIVIDUALS. Countries where licence fees are collected include: Czech Republic, Croatia, Ireland, Germany, Poland, Austria, Slovenia and Great Britain.

• Public service media funding from a BUDGET prevails in Belgium, Bulgaria, Estonia, Cyprus, Lithuania, Latvia, Luxembourg, Hungary, Malta, Netherlands, Romania, Spain, and Slovakia.

• A less frequent way of public service media funding includes payments made TOGETHER WITH ELECTRICITY as is done in Italy, Portugal and Greece or collecting fees through special tax on public service broadcasting as in Finland, France and Sweeden.

• NORDIC COUNTRIES: broadcasting tax instead of licence fees (Norway, Island, Finland, Sweeden).

EXAMPLES OF CHANGES IN CERTAIN COUNTRIES

• NETHERLANDS: licence fees were abolished in 2000; since then, the Dutch public service broadcaster Nederlandse Publieke Omroep (NPO) is essentially financed by annual state subsidies.

• DENMARK: transition from licence fees to state budget funding. In Denmark, the licence fee was paid from 2018 until the end of 2021, replaced by state funding from 2022.

• FRANCE: In July 2022, the French Parliament approved the end of the payment of licence fees; the abandoned model is replaced by a minimum VAT increase.

• AUSTRIA: In the first half of 2023, it was decided that ORF would change its funding system. The new model will reduce the licence fee: it will now be EUR 15.30 per month (per household) instead of GIS (linked to the device).

• SWITZERLAND: TV and radio fees make up 81 percent of the budget of the non-profit public corporation SRG SSR. Following a referendum held several years ago, the fee structure was changed. Instead of CHF 451 per year, CHF 365 per year were paid from January 2019. In January 2021, the fees have dropped to CHF 335.

• NORWAY: Until 2019, NRK was financed through a licence fee linked to the ownership of a television set, but this model has been abandoned. Since 2020, NRK has been financed from the state budget. Anyone with a certain income must pay an amount to fund NRK through taxes. In practice, an ordinary household pays roughly the same amount in NRK tax as it used to pay in broadcasting tax, but the tax is no longer linked to the ownership of a TV set.

• GREAT BRITAIN: Discussions have been ongoing since last year about how the BBC will be funded in its next cycle of operation, from 2027. Different options for future BBC funding are being considered.

KLÁRA BRACHTLOVÁ, PRESIDENT OF AKTV: She has been President of AKTV since the start of 2023, in January she was appointed Chief External Affairs of CME, the parent company of TV Nova. She was working in the finance section of Nova Group from 2007. She gradually held positions in reporting, financial planning, and analyses, she was Deputy CFO from 2012, CFO from 2014, later statutory executive, and in 2019, she became CEO of TV Nova.

Source: mediaguru.cz

COMMERCIAL RADIO COMPANIES: THE DRAFT AMENDMENT POSES A THREAT TO THE DUAL MEDIA SYSTEM

Commercial radio networks organised in the Association of Private Broadcasters (APSV) reject the draft of a major media amendment and consider it a threat to the dual media system.

Commercial radio companies that are members of the Association of Private Broadcasters have also spoken out against the so-called “major media amendment”, which is supposed to bring more money to Česká televize (Czech Television) and Český rozhlas (Czech Radio) by increasing the television and radio fees. In their statement, they claim that they were not consulted in any way on the draft amendment, that they were bypassed by the Minister of Culture and that “no government in power since November 1989 has shown such a lack of dialogue”. The commercial radios are concerned that the ministry has not justified the “real need” for the fee increase and that the proposal contributes to the threat to the dual media system.

“We, therefore, reject the submitted proposal as a whole and call on the Government of the Czech Republic to withdraw the proposal from the inter-ministerial procedure and to initiate a real debate on the role of public service media in a technologically and socially changing media environment,” calls APSV.

According to APSV, the submitted draft media amendment demonstrates a “profound misunderstanding of the media environment and the development and direction of the market”. They also point out that there is no definition of public service and that opening up a debate on this topic is a prerequisite for any modification of the current funding of public service media. “In the radio market, it is absolutely clear that, for example, the existing digital stations, which are also financed from licence fees, have not justified their existence from either a technical or a listener perspective, and it is not even clear what public interest they fulfil,” APSV states.

Representatives of the commercial radio market are also bothered by the fact that the bill continues to provide for the presence of advertising and sponsorship in the ČRo broadcasts and on the internet. “The draft thus tilts the balance of the dual system one-sidedly towards the public media,” APSV claims.

The Association of Commercial Television, the Union of Publishers and the Internet Development Association (SPIR) have already expressed their opposition to the draft media amendment.

Czech Culture Minister Martin Baxa (ODS) said during the publication of the draft amendment that the governing coalition wants to ensure the stability of public service media. He argued that the amount of fees had not changed in 15 or 18 years and that commodity prices had risen by tens of percent in that time. Thus, the proposed fee increases would not exceed the rate of inflation over that period according to the Minister.

According to the Ministry of Culture submitting the draft, stakeholders can also comment on the proposal in the ongoing inter-ministerial comment procedure.

“The bill does not contain any provisions that would give rise to concerns about market imbalance, the principle of financing public service media remains the same, i.e. from licence fees. The volume of advertising for public service media does not increase in any way over the current situation,” Petra Hrušová from the Press Department of the Ministry of Culture responded last week.

Source: mediaguru.cz

ACE SHUTS DOWN “MASSIVE-SCALE” FRENCH PIRATE SITES

The Alliance for Creativity and Entertainment (ACE) has shut down Uptobox and Uptostream, two of the digital piracy world’s most notorious illegal video hosts.

According to ACE, the action, conducted in France and the United Arab Emirates, puts an end to a piracy operation that was well known for a decade among distributors of infringing content. The illegal service boasted massive audiences, mainly from France, but also from Indonesia, India and Mexico, with 1.5 billion visits over the last three years. The services hosted a sizable infringing library of film and television titles affecting all ACE members and many other rightsholders, allowing users to stream and download copyright-protected content at no cost or through a paid premium subscription.

The two French nationals who ran the illegal service are based in Dubai, where they amassed illegal gains from selling advertising and premium subscriptions.

Commenting on the shut down, Jan van Voorn, executive VP and global content protection chief of the Motion Picture Association and head of ACE, said: “The action we announced today demonstrates that even the most sophisticated piracy operations are not above the law.

“This case sends a strong message to criminal operators that their illegal actions will be put to an end eventually. They may think their operations are undercover, but ACE has the network, resources and expertise to identify them and shut them down”.

Céline Boyer, head of content protection at Canal+, added: “Canal+ supports swift action when acts of piracy compromise intellectual property rights, which in turn has an impact on our business.

“Our partnership with ACE is essential to ensuring that the creative marketplace continues to thrive by addressing content piracy at its source”.

Nathalie Bobineau, senior VP of international development of French public broadcaster France Televisions, said: “France Televisions has zero tolerance for piracy and illegal distribution of content and channels.

“By collaborating with ACE, we reinforce our commitment to upholding the principles of copyright protection and preserving the value of original content”.

ACE is the world’s leading coalition dedicated to protecting the dynamic legal market and reducing digital piracy.

In some cases involving illegal operations in France, ACE and the MPA collaborate with French anti-piracy association ALPA, who, earlier this year, obtained a blocking order for Uptobox and Uptostream in France.

Source: broadbandtvnews.com

STATEMENT OF PROFESSIONAL PUBLISHING ASSOCIATIONS ON THE PROPOSED “MAJOR MEDIA AMENDMENT”

Czech publishers represented in professional associations SPIR (Association for Internet Development) and UV (Union of Publishers) demand an expert discussion on the financing of public media and their role alongside commercial media. They criticise the fact that the introduction of the amendment to the acts on Czech Television, Czech Radio, and radio and television fees (the so-called major amendment on public service media) was not preceded by any professional discussion with the media sector and that the proposal skews the balance between commercial and public service news publishers.

First and foremost, we regret to say that such a significant increase in the budget of the public media was not preceded by the necessary discussion, which would have included the professional associations representing the providers of news content. These organisations are in permanent competition with the public service media. We fully appreciate the importance of the public service of ČT (Czech Television) and ČRo (Czech Radio) in the democratic organisation of our country and we do not question the importance of their existence by this statement at all. However, in an information environment that is increasingly moving online, there must also be strong private media to ensure the balance. Unlike public service media, private media are subject to market principles and therefore have to compete for their revenues through competitive mechanisms.

In conjunction with the continuous shift of public service media to the internet and the proposed extension of exemptions from online advertising, which is crucial for media funding, we are concerned that the proposed changes could have a very negative impact on private media, which form an essential part of the media and information scene.

The professional publishing associations have therefore jointly addressed the government representatives with a request to hold an expert discussion on the position and evaluation of all models of possible financing of public service media on the Czech media market before submitting the bill.

In our opinion, the submitted draft Amendment to the Act on Czech Television and Czech Radio and the Act on Radio and Television Fees with its current wording is completely inadequate, has not been discussed with the affected entities and would represent a major disruption of the stability of the entire media sector. We therefore categorically disagree with the proposed amendment and request that it be withdrawn from the legislative process and thoroughly revised.

Source: spir.cz

COMMERCIAL TV COMPANIES DEMAND WITHDRAWAL OF MAJOR MEDIA AMENDMENT

The commercial television groups Nova, Prima and Óčko show their displeasure with not being invited to discuss the proposal to increase the fees for ČT (Czech Television).

The commercial television groups that are members of the Association of Commercial Television (AKTV) are demanding the immediate withdrawal of the draft of the major media amendment. It includes, among other things, a proposal to increase the TV and radio fees for Czech Television (to CZK 160) and Czech Radio (to CZK 55), and a new definition of the payer. AKTV finds the proposal “inadequate, not discussed with the entities concerned and fundamentally undermining the stability of the media sector”.

“We therefore categorically disagree with the proposed amendment and demand that it be withdrawn from the legislative process and thoroughly revised,”

says AKTV President, Klára Brachtlová.

According to its statement, AKTV was not informed of the text of the proposed amendment, nor was it invited to discuss it. AKTV includes the Nova, Prima and Óčko TV groups. The first two have major shares of the TV advertising market.

AKTV also stated that it has been in intensive contact with representatives of the Ministry of Culture this year as a member of the advisory group on the transformation of the State Cinematography Fund and the related amendment to the Audiovisual Act. The announcement by the Ministry of Culture that the intended increase in funding for Czech Television should be seen as a topic related to the transformation of the Fund came as a surprise to AKTV. According to AKTV, during the several months of work of the advisory group, there was not a single mention of any link between this topic and the financing of public media.

“The submitted draft amendment to the Act on Czech Television and Czech Radio and the Act on Radio and Television Fees primarily aims to increase revenues from licence fees by increasing the fees and expanding the number of payers, while the source of Czech Television’s funding from advertising, sponsorship and other commercial communication is maintained in full. In the current economic situation, we consider it to be completely wrong to start dealing with an increase in fee funding without defining and knowing exactly what the increased funds in Czech Television’s budget are needed for and in what amount. We strongly prefer discussing the role of the public service media and the content of the public service as the first step in the process. Only then will it be possible to determine the cost of the public service and set a budget to fulfil the role effectively,” said AKTV President.

AKTV would support an increase in ČT’s budget if the expert discussion shows its necessity. The current draft media amendment would have a destructive effect on the balance of the Czech media environment, media pluralism and, last but not least, would very likely constitute an illegitimate interference in competition, according to AKTV.

Czech Culture Minister Martin Baxa (ODS) said during the publication of the draft amendment that the governing coalition wants to ensure the stability of public service media. He argued that the amount of fees had not changed in 15 or 18 years and that commodity prices had risen by tens of percent in that time. Thus, the Minister said the proposed fee increases would not exceed the rate of inflation over that period.

Source: mediaguru.cz

TELEVISION REMAINS THE MOST POPULAR FORM OF VIDEO IN THE WORLD

The Global TV Group recently released an updated version of its survey of how television is consumed around the world. The figures show that despite the rise of digital alternatives, traditional television remains attractive and attracts viewers with its diverse range of content.

he survey shows that television is still very popular.

Commentary on the survey was provided by Matt Hill, Director of Research and Planning at Thinkbox:

Resilience and popularity: TV remains the world’s favourite video

85% in Brazil, 75% in Austria, 76% in Germany, 69% in Canada, 75% in France…although the video galaxy is ever more complicated, fragmented, and competitive, TV continues to be its major solar system, usually accounting for at least two thirds of video consumption.

This is a remarkable story of resilience (if you’re feeling defensive) or enduring popularity (if you’re feeling positive).

The video world has seen more change in the last decade than the last half century. The explosion of subscription video-on-demand (SVOD), YouTube’s mainstreaming, and TikTok’s turbo-emergence have created a storm that some predicted TV could not weather.

Now those clouds appear to be dispersing and we have a clearer picture. Although we don’t have similar data for countries around the world, the UK experience is unlikely to be radically different from most other countries – and there are two trends in the UK’s video data which are worth noting.

The first is that, in 2022, collective viewing to SVOD like Netflix and Amazon Prime Video services declined for the first time, dropping from 53 mins a day in 2021 to 45 mins in 2022. The impact of unnaturally high TV viewing in 2021’s pandemic-induced lockdown, coupled with a cost-of-living crisis where SVOD subscriptions are under pressure, is likely responsible.
The second trend is that the gradual decline in broadcaster TV viewing in the UK that we have seen in recent years (it was just over 4 hours a day on average per person in 2015 and just over 3 hours a day on 2022) is now slowing and plateauing.

These two things combined suggest that we are entering a period of stability in terms of viewing patterns as the tumultuous recent years in video settle down. Although the TV viewing cake remains roughly the same size, the SVODs have in recent years taken a slice of time away from broadcaster TV. But that impact now appears to have been largely felt – and the broadcasters’ pedigree and expertise ensures they are well placed to thrive in the future on screens across the globe.

Source: theglobaltvgroup.com

THE TV BATTLE WILL BE TOUGH AGAIN. PRIMA WILL EXPAND ITS PORTFOLIO

Prima group CEO, Marek Singer, expects a fierce autumn battle between the top three TV networks. He also confirms that Prima is interested in expanding its portfolio.

Prima TV Group would like to increase its share of the television market in the autumn, which is to be supported by its new autumn schedule. It rests its hopes on the romantic story with a happy ending Eliška a Damián. Other new shows include the detective series Pod hladinou and the second season of Einstein – příběhy nesnesitelného génia. The ZOO series remains a mainstay. The thematic channel Prima Cool will also present a number of new titles. Some of them will also appear on the VOD service prima+ that was launched this year. “Since the Covid-19 period, everyone has started to arm themselves more because they know that they will otherwise lose,” says Marek Singer, CEO of the Prima Group, describing the market situation.

The new autumn TV season kicks off at the end of August. What will Prima Group bring to the table?

We expect the autumn programme to deliver even better results than this spring when we hit 30% share in June. However, we are aware of the very strong competition. The autumn battle will be tough again, the competition also has its guns loaded and we will see how viewers decide. It is good news for the audience because they have a lot to choose from.

Do you mean that this year’s battle will be more heated than last season?

In recent years, this has been the case. Since the Covid-19 period, everyone has started to arm themselves more because they know they will otherwise lose. Today’s market is no longer dominated by just three TV companies but also by a range of video services. So, there is a much wider range of offerings.

If you compare the set-up of this autumn’s schedule with the spring and the previous autumn season, did you want to make structural or genre changes? You are going to air crime series on Mondays and Wednesdays, which may be a change…

More precisely, we are returning to detective stories on Wednesdays. As for Mondays, we do not have a strong weapon against the competition at the moment and the rerun of Polda represents a high standard and we are not wasting money at the same time. On the other hand, we want to shake things up more on Saturday night, when we think we can perform better. Over the week, we will bring the traditional ZOO and believe to confirm our leading position.

The biggest news is the series Eliška and Damián, which is the first original romantic and historical series of TV Prima. It will run on Saturday prime time, which is usually reserved for entertainment. Why is that?

Eliška and Damián is a twelve-part romantic story with fairy tale elements, but it is not a romantic fairy tale. We believe that dramatic stories or fiction have a tradition on Saturday. After all, we tried it out on Polda which performed very well in that slot. Viewers have less established habits on the weekend and are more selective about what they want to watch. Offering different genres and alternatives is more important than competing with others. We do not want to go against the competitors with the same format on the weekend, so we believe a family-type romance series could work.

Even though the dance contest StarDance is starting in mid-October, which usually takes Saturdays for itself?

StarDance is always tough competition. But there are two factors. StarDance will come after about six episodes of Eliška a Damián, and if the audience is hooked on our series, they will finish it. And whether they finish it in linear or catch-up TV is not critical for us.

Does TV Prima’s autumn schedule follow the characteristics of the previous ones in general?

Yes, the autumn schedule extends our existing programme schemes. But our competitors are doing the same. We are all trying to do the same thing, which is to fill in the blanks and strengthen the offer.

One factor that has changed for the viewer is the new VOD service prima+. For you, that means producing more content. How does that translate into programming for TV Prima’s main channel? Do you expect shows from prima+ to appear in linear broadcasting over time?

We expect that most of them will eventually appear on the air. But there will be exceptions. Prima+ is also a platform for more daring original production than what we do for television. The Bodyguardi or Banáni series would not have been made just for linear TV. At the same time, users will find most of our broadcast TV shows first on prima+ – in the form of previews or, prospectively, some additional content relating to series or reality shows. That is our idea. We are still at the beginning; we are six months into the operation. It is a fast-learning process, and we are getting to know what people want on prima+ and how their preferences differ from TV.

How do you decide which titles go to linear TV and which to VOD?

There are some titles that are primarily intended for TV, and we think that is right. TV Prima and prima+ are not two completely separate piles, they are two linked libraries. However, the content is being handled much more dynamically than it used to be, and this will accelerate. Not just the whole shows as is the case now but parts of them or side-lines will be available on other platforms. That is all to come.

At the beginning of August, you recorded 700 thousand registered users and over 90 thousand paying users on prima+ in half a year of operation. Unlike your competitor Voyo, you offer subscribers a lower subscription fee with advertising in addition to the “full price” for watching without ads. Which type of subscription is more in demand?

The results are in line with our plans. Users are more interested in non-discounted subscriptions, i.e. with no ads.

Foreign competition, specifically Netflix, is currently pushing this hybrid version with advertising and a lower subscription price. Is it a promising model?

Netflix’s latest numbers show that only 3% of users in America have an ad-supported subscription, which is terribly low. Once a Netflix viewer has gotten used to ad-free Netflix, I think it is very hard to convince them to switch to an ad-supported subscription, even if they could save a little money. Users have known iPrima, or nowadays prima+, as an ad-supported service since the beginning. We added the option to watch it without advertising, which I think is a more natural process than the other way around.

Do you think the subscriber growth curve for prima+ will continue to rise further in the ad-free subscription column?

It may be a little different. For us, it is very much determined by the economic environment and by how the mix is put together. By starting earlier, Voyo has a head start on paying users. But we also see a future in non-paying viewers because our basic business model is a high-reach advertising model. The subscription model is good for offsetting the loss from the decline of linear TV, but it does not help with advertising.

It is a fact that the reach of linear TV is declining. How can this change the financing of Prima Group?

It can’t yet. The TV reach is still so high in the Czech market that even if it decreases, it will not have any effect on the mass target groups that form the core of TV advertising. Television will innovate and evolve in the future, and it will not only be linear TV but also hybrid models with advertising. SVOD is no longer the most attractive. Now, FAST channels are on top but in a year, it will be something else. All this just means that TV as a medium has finally started to innovate.

Will advertising revenue still be key in the next three years?

This will not change fundamentally for the time being. But, of course, PUT [persons using television, Ed.] is decreasing every year, which will lead to television advertising becoming more expensive year by year. As TV reach is still high and cost-effective, brands will continue to use TV advertising. But we see that the competition is wider. I mean YouTube and prospectively streaming ad-supported services, not Facebook three-second videos.

Will you expand your channel portfolio in response to these developments, whether it be paid, unpaid or FAST channels?

I am not saying we won’t. We are always looking for ways to expand our portfolio, whether in the form of linear or non-linear content. But at the moment, we have not finished any project for another channel.

Will you finish it by the end of the year?

That is a long way off, but I do not deny that we are working on some projects.

There was talk about the sports channel Prima Sport. Is it realistic that you would come up with it?

That is the question. I have long held the view that it will become increasingly difficult for any local broadcaster to acquire a quality portfolio of sports rights, especially international ones. There is so much demand for them, and prices are going up so fast that I cannot see it being worthwhile for local broadcasters. However, if they can team up with a strategic partner and find a sensible business model, then why not? But not at any price. I remember this from the days when Prima Cool used to broadcast the UEFA Champions League. We thought the Champions League broadcasts would help us build the brand but we found that they had no effect on brand building. When the Champions League finished and moved to another channel, people went to wherever it was broadcast.

What about a kid’s channel?

Maybe, but you have to look at the offer of Czech Television and the funds available to it. The second factor is competition from online and VOD services. According to statistics from the UK, there are two genres in which the multinational streaming platforms are doing better than average, and these are drama series and children’s programming. Fighting Netflix with premium series is terribly difficult but it is important not to give up this fight and to use your knowledge of the Czech mainstream audience. The range of children’s content on offer at Disney+, for example, is unbeatable and it is very difficult to compete with it and with ČT.

On the other hand, you could use some extra space for GRP…

We want to expand the portfolio, and it is not just about the linear channel but also about other ways to offer content to the viewer. It can be either a paid model or a differently structured advertising model with a TV target. Working with ad pricing, continuous investment in local content and increasing ad inventory online will be key.

And the FAST channels you mentioned? According to the competitor’s statement in the annual publication, they intend to include them. Do you plan to do the same?

FAST channels are in this year, it almost seems like everyone wants to do them.

A number of new titles are coming to the thematic channel Prima Cool in autumn. Is this an effort to “reboot” the channel?

We are trying to do that. We have been in pilot mode for the past year trying out different formats of original work in the entertainment genre. Which is really hard. But I think we have some interesting stuff, and we want Cool to be cool again. That is why we continue trying new formats but we see that Cool viewers are also close to online shows, for example. That is what I was talking about. We need to push the content more on different platforms to get the desired effect.

Are the formats transferable to prima+?

That is what we are trying to do but we are also trying to do it the other way around. For example, we will offer a documentary about the worst criminals, Bez lítosti, prepared for prima+ Originals, on Prima Cool in the autumn. Viewers who wanted to see it on prima+ have already seen it, but that is far from all Prima Cool viewers. So why not offer it to them if we believe they will enjoy it?

Is it still possible to increase the overall market share if we add up all the channels of Prima Group? Are you not shifting viewers between your channels?

There is minimal overlap between our channels, they are built so that there is no genre overlap. And viewership trends over the past few years have been pretty much stable, showing similar viewership for the three main TV groups.

Will this change with the new CEO of Czech Television?

I do not think it will change dramatically. It will still be a battle for every air slot and every viewer.

What about advertising in the autumn, is your capacity used in full?

So far, demand for TV advertising is expected to be even higher than last year.

Source: mediaguru.cz

DUTCH PIRATE STREAMER SERVED OVER 1.3 MILLION CUSTOMERS

According to the prosecution a Dutch pirate streaming service allowed customers to watch unlimited films and series from Netflix, Videoland and Disney+ and Viaplay for €10 a month.

The pirate, 30-year old Hicham O. from Almere, operated under several names, such as 4K OTT, Cobra and My TV plus, serving more than 1.3 million people.

The service allowed users to watch unlimited TV channels and as well as thousands of TV series and movies from streaming video services. The Dutch Fiscal Intelligence and Investigation Service (Fiod) pulled the plug on it last spring.

Subscriptions could be taken out for cash at phone shops. It was possible to watch via a special app, and there were also media boxes with pre-installed access to the service. The feeds were coming from a data centre in Den Helder, from where the films, series and TV programmes were distributed.

Early last year, the Dutch fiscal authorities launched an investigation into the operation. Last May, raids took place in Den Helder, Almere and Hengelo. Homes in Amsterdam, Almere, Enschede, The Hague were also searched. In the process, more than 1,000 servers were seized and cash amounts totalling at least €200,000 were found.

The pirate was identified as 30-year-old Hicham O. from Almere. He was 80% owner of the illegal streaming service and maintained contact with resellers and money runners, according to the prosecution. Tapped telephone conversations showed that he was worried about the Fiod. During these monitored calls he also said that he was turning over half a million a month and making €200,000 a month from it.

Justice prosecuted him for copyright infringement, membership of a criminal organisation and laundering €17.5 million, among other charges.

Source: broadbandtvnews.com

PELÍŠKY AND OTHER FILMS MUST DISAPPEAR FROM ULOZ.TO, THE PLATFORM OPERATOR FAILED IN THE CONSTITUTIONAL COURT

Pelíšky and five other Czech films (Ostře sledované vlaky, S čerty nejsou jerty, Vesničko má středisková, Kobry a užovky and Obušku, z sack out!) must disappear from the Ulož.to internet storage. They will not be searchable or downloadable. This follows from the decision of the Constitutional Court (III. ÚS 3077/22), which rejected the constitutional complaints of the operator Uloz.to cloud a.s.

The previous year’s judgment of the High Court in Prague, which dealt with the matter in detail and set the boundaries of the interpretation of the Copyright Act, was later confirmed by the Supreme Court. Based on a lawsuit filed by the DILIA agency, the courts ordered the operator of the Uloz.to repository to prevent the downloading of six specific films if people can search for them by title. In legal language, the high court ordered Uloz.to:

…an order to refrain from permitting the downloading of files with specified extensions containing the six specified audiovisual works on the specified websites, so long as members of the public can search for those files by entering the title of the work in the search engine provided by the defendant for the public to do so, and for so long as the property rights in those works continue to exist and so long as the plaintiff exercises those rights as a collective administrator….

In its constitutional complaint, the Ulož.to argued that the obligation imposed on it is contrary to Act 480/2004 Coll., on certain information society services, which precludes the imposition of such an obligation.

However, the Constitutional Court explained in its reasoning that this objection had already been sufficiently dealt with by the courts before it and that it is not here to be another instance in the system of general courts. According to the Court, the operator of a storage facility is a provider of a service which is used by third parties to infringe or threaten the rights of authors of protected works.

In doing so, the judges relied on a decision of the European Court of Justice (C-682/18 and C-683/18), according to which the provider of a so-called hosting service has an obligation to refrain from providing such a service if it is used by third parties to infringe or threaten copyright. This obligation may relate not only to the removal of the infringing content but also to ensuring that no further infringements occur.

Source: lupa.cz

ULOŽ.TO LOST A LAWSUIT OVER ŠARLATÁN BUT WANTS TO CONTINUE THE LITIGATION

The online repository should pay nearly a million crowns for allowing the Czech film Šarlatán to be downloaded despite repeated warnings.

The legal battles between film distributors and the Ulož.to online repository have reached another stage. Both sides have had alternating success in court. Last week, justice took the side of the film distributor CinemArt. On Thursday, the Municipal Court in Prague ruled that Ulož.to should pay CZK 976,000 for allowing the downloading of the biographical drama Šarlatán without the consent of the copyright holders.

The film was available on Ulož.to for at least two years, even repeated warnings from the rights holders did not help.

According to Hospodářské noviny, which reported on the non-final judgment, this is the first successful lawsuit for monetary compensation against similar servers. Ulož.to is appealing the verdict and believes that CinemArt will ultimately receive no compensation.

The disc with the film could be easily found on Ulož.to at the time of writing this article. Various evasions delay and prolong legal disputes. The repository has recently changed the nature of the service and its operator. The current name is Ulož.to Disk, technically it is presented as a cloud service with external search, and the operator is Cloud Platforms a.s. based in Most.

The dispute concerns the operation of the server in its previous form, which was operated by Petacloud. The same people are acting on behalf of that company and the current Cloud Platforms, both companies have their seats at the same address in Most. Petacloud has been subject to an enforcement procedure since May this year because of another case related to the fact that Ulož.to allowed the uploading and downloading of the TV Prima series Duch. In addition, the Court keeping the Register of Companies has initiated proceedings to have the company dissolved because it has not filed documents in the Collection of Deeds for a long time.

How did the court arrive at the amount of CZK 976,000 in the Šarlatán case? According to CinemArt, it corresponds to the amount for which it sells licenses to use similarly successful films. And they could ask for even more. As the judge noted the licensing fees can range from hundreds of thousands to millions of crowns. And because the dispute relates to unauthorised use of the work, the copyright holder could demand double the normal price under the law.

“The judgement contains many errors and shows a lack of understanding of the issue, which we, unfortunately, encounter regularly in courts of first instance. The higher courts agree with us in these disputes but unfortunately, this often takes a very long time, and the opposing party takes advantage of that,” says Ulož.to, disputing the damage caused.

The repository disagrees with the legal conclusion the judge reached. It argues that as a cloud service provider, it does not use any works and thus cannot infringe copyright. “As such, the first and key condition for a claim for unjust enrichment (as the court held) is not satisfied. Even the Supreme and Constitutional Courts have previously confirmed our opinion,” Ulož.to states.

The judge accepted CinemArt’s arguments that Petacloud could avoid paying the court-ordered amount. She, therefore, ordered Ulož.to to pay CZK 976,000 within three days of receiving the judgment. But even that does not mean CinemArt will get the money. This follows from the operator’s response to the judgment.

“The alleged ‘damages’, the payment of which has been ordered by a ruling that is not final but has an immediate effect, will not be paid to CinemArt but will be deposited in a lawyer’s custody. It is for the Court of Appeal to decide whether the funds will be returned to Ulož.to or paid to CinemArt. Given the numerous errors in the judgment, we naturally expect to recover the funds,” the repository added in its media statement.

Ulož.to considers it absurd that a repository operator should provide compensation for unjust enrichment whenever user-generated content infringing copyright appears on its commercial platform. Ulož.to argues that applying this logic, even the world’s major platforms allowing content to be uploaded to them could not operate.

The file search has not been running on the Ulož.to domain since the beginning of this year. Instead, the repository redirects users to Gozo or other search engines such as Google, DuckDuckGo, or Seznam when a keyword is entered. Gozo states on its website that it does not store search history or collect any personal data. The search engine does not have any company contact details apart from email and a form, and the domain is registered anonymously.

Ulož.to is also facing other lawsuits initiated, for example, by Prima TV or Nova TV. Since January, copyright holders have had a stronger position thanks to an amendment to the Copyright Act. Simply put, the amendment introduced the principle that repositories like Ulož.to should actively seek permission in advance for copyrighted content that might appear on them. Very large platforms with more than five million users a month have an obligation to prevent the uploading of works about which the copyright holders have provided the relevant and necessary information and which they do not wish to be distributed on the repository.

Platforms that are used by fewer than five million users per month must remove the work upon notification by the rights holders and do everything possible to prevent it from being re-uploaded.

The changes to Ulož.to were made after the amended Copyright Act had come into force at the beginning of January. The repository became a cloud service. “In Czech conditions, this is the most common self-protection of those running a business at the expense of copyright holders,” said Klára Brachtlová who presented the situation of the fight against pirated content on the internet on behalf of the Association of Commercial Television at the Digimedia conference in June.

Repository operators use various creative ways to complicate the enforcement of legal obligations. Services purposely change their names or terms and conditions; one company is liquidated and another one is created immediately afterwards. It is also typical to change the operator when the service is facing a lawsuit. The physical seats of companies use virtual office services.

The Association of Commercial Television suggests taking inspiration from abroad. Responsibility for operating online content-sharing services should not only be held by legal entities (companies) but also by specific people. The Czech legal system could also introduce the last-resort option of blocking access to a particular server that infringes copyright on a mass scale. Such options exist in Greece, Italy, Lithuania, France, and other countries.

TV stations argue that they lose money from broadcast advertising if users download content from an online repository. In addition, these sources include unaired episodes that have exclusive previews on pay services such as Voyo or Prima+. More money is thus lost due to unpurchased subscriptions. TV stations also complain that repositories attach their own online advertising to the downloads, thus adorning themselves with borrowed plumes and engaging in unfair competition by using another party’s unlicensed content for their own commercial purposes.

Source: lupa.cz

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COMMERCIAL TV COMPANIES DEMAND WITHDRAWAL OF MAJOR MEDIA AMENDMENT

TELEVISION REMAINS THE MOST POPULAR FORM OF VIDEO IN THE WORLD

THE TV BATTLE WILL BE TOUGH AGAIN. PRIMA WILL EXPAND ITS PORTFOLIO

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