Final Word from Thursday, April 1, 2004

Parliament voted yesterday to reduce the allowable ad time on Czech TV from 1% to 0.8% of total airtime, but a gradual cut to 0% was avoided. The decision, if given final approval, could mean an extra Kč 200m per year in ad revenue for TV Nova and TV Prima. Nova already has such a dominant position that it's able to set take-it-or-leave-it prices. If advertisers don't like Nova's offer, they can grit their teeth and go elsewhere (like Procter & Gamble), but the ad reduction at Czech TV will further limit their options and could allow Nova to raise its rates. This will accelerate the consolidation in print media. Big advertisers will have to devote more of their budget to TV spending to achieve the same results. The only consolation for advertisers and publishers is that MPs didn't listen to the private stations and approve a complete ban on commercial at Czech TV. advertisements advertising Television P&G


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