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Broadcasters Face Financial Problems

        Cash problems, as much as censorship, plague Russian broadcasters.  In a mid-August report, the newspaper Sevodnia reported that the major television broadcasters were in danger of defaulting on payments for use of technical facilities provided by the Communications Ministry.  If that occured, the newspaper reported, the Ministry would cut air time by 50% or more.  Similar financial problems have led to warnings of work stoppages by Russian Communications workers who have voiced their displeasure with the government’s perceived failure to fulfill promises for financing mass communications.  In August, the news agency Interfax reported, the inability to pay for electricity had resulted in the curtailment of broadcasting at twelve radio transmitters in areas such as Kaliningrad region, St. Petersburg, and Chita. Meanwhile the late, and mostly unlamented Supreme Soviet on September 3rd approved a proposal by the Yeltsin Government to amend Article 36 of the Law of Mass Media to prohibit tobacco and alcohol advertising in “state financed mass media.”  This measure could have a significant impact on revenues (in a September 13th story in Los Angeles Times, J Andrew Stanford reported that tobacco and alcohol advertising generates more revenue for Russian mass media than the advertising of other consumer goods). 

        On September 30, Ostankino TV channel 1 announced that it was finishing its morning program earlier than usual because its broadcasting capacity was being exceeded and the number of sources of financing for the channel are limited [BBC report of October 2].  One result of these financial problems has been a proposal to privatize channel 4.  According to reports, channel 4 might be transferred to a commercial television company—the Independent Television Company—financed by commercial banks, including a group known as the “Most” (the “Bridge”) banking and construction group.  The chairman of the “Most” group, Vladimir Gusinskii, is apparently founder of Sevodnia.  The director of ITV is Igor Malashenko, the former political affairs director of Ostankino.  Evgeny Kiselev, commentator on the “Itogi” program, reportedly announced in September that he and some 140 Ostankio journalists would leave Ostankino to join ITV.  These possible changes have been heavily criticized.  On September 16, the Ostankino Board of Directors expressed concern about the rumors of the sale of channels 4 to the “Most” Group, warning that the buyers would “possess in their hands the most powerful propaganda weapon.”  Two newspapers—Rossiiskie Vesti and Rossiikaia Gazeta—expressed doubts that ITV could be independent, on the grounds that financiers would closely control the channel’s editorial content. 

 

Last Updated: 11/20/99

 

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