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ČTÚ releases timetable for digital TV launch

TV Nova says 2010 early to cut analogue

By Katya Zapletnyuk
Staff Writer, The Prague Post
August 9th, 2006 issue

The Czech Telecommunications Authority (ČTÚ) released a timetable Aug. 1 for introducing digital television nationwide, but the announcement has highlighted growing tension between established television stations and the newcomers that will be fighting for market position once analogue broadcasting is shut off.

Representatives of the country's two private television stations, including TV Nova, have said the Oct. 10, 2010, deadline for cutting the analogue signal is unrealistic because the market needs more time to mature before digital television will catch on.

"I am still not sure that in a country this small digital television 100 percent supported by advertising is a real business model," said Michael Garin, CEO of Central European Media Enterprises, which owns TV Nova, the country's largest station in terms of market share.

Digital television is billed as offering clearer pictures and better sound than regular channels that operate on an analogue signal. It also has the potential to deliver considerably more channels. The Czech Republic currently has four nationwide analogue channels. But Garin said there aren't enough viewers to support some of the niche stations that will be launched on the digital signal. As a result, advertising revenue will be too low.

"Digital television is a fantasy," he said.

The six companies that received digital licenses in May, however, have said TV Nova just doesn't want new competitors to enter the game. They'd like the switch to happen earlier, in 2009, so they can start building an audience.

"The sooner the analogue signal is switched off, the sooner there will be an even playing field for all television channels," said Richard Rybníček, general director of Febio TV, which will run a general-interest station.

Time is money

Febio TV wants to have as much as 10 percent of the market within a few years.

The five other license holders are Barrandov TV, another general interest channel; Óčko, a music station; Pohoda, a channel for children; Z1, a news station; and RTA, a regional station.

The ČTÚ requires the six to start broadcasting by next year, but the companies have said that waiting until 2010 to make the full switch from analogue will prevent them from getting the maximum return on their significant investment in the technology. They could spend as much as 1 billion Kč ($45 million) on building their stations.

"The delay is very economically ineffective and translates into wasted money in terms of our investment," Rybníček said.

The companies, which were allowed to enter negotiations with the ČTÚ only 15 days ago, now have another 15 days to submit comments on the agency's timetable.

"This schedule is still not acceptable to us," Rybníček said. "We will try to shorten the deadline."

Media experts have said that many digital television stations will not take off here because the country only has 10 million viewers and advertisers are more interested in mass audiences than niche groups.

"It's still a big question whether these stations will be able to support themselves," said Daniel Köppl, editor-in-chief of the magazine Marketing & Media.

Köppl said advertisers all over Europe have become very cautious following the global economic slowdown after Sept. 11. "Television stations with a mass audience will be winners in this situation," he said.

Digital television is also competing with broadband Internet, which is pulling sophisticated viewers away from television.

Katya Zapletnyuk can be reached at kzapletnyuk@praguepost.com


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