WORLD PRESS TRENDS - World Association of Newspapers

UKRAINE
ADVERTISING EXPENDITURE & ECONOMIC DATA
Main economic indicators 1993-1999
1993 1994 1995 1996 1997 1998 1999
1 US$= 5.37 Hryvnia at 1999 rate
Gross Domestic Product (Hryvnia billion)
at current prices 1 12 55 82 93 103 127
% change - 23,836.4 352.8 49.5 14.6 9.8 23.9
at 1999 prices 199 163 155 128 127 126 127
% change - -18.1 -5.0 -17.1 -1.1 -0.7 1.0
Gross Domestic Product per capita (Hryvnia 000)
at current prices 0.0 0.2 1.1 1.6 1.8 2.0 2.5
at 1999 prices 3.8 3.1 3.0 2.5 2.5 2.5 2.5
Population
Millions 52.2 52.1 51.7 51.3 50.9 50.5 50.1
Consumer Price Index
1999=100 0.7 7.4 35.3 63.6 73.7 81.5 100.0
% change 4,734.9 891.2 376.7 80.3 15.9 10.6 22.7
Ad.spend as a % of GDP
- - - 0.16 0.32 0.64 0.90
Advertising Expenditure Growth (%)
at current prices - - - - 127.9 120.9 75.4
at 1999 prices - - - - 96.6 99.8 43.0
Source: IFS, ZenithOptimedia
Advertising expenditure
(US$ million, in current prices)
1996 1997 1998 1999 2000 2001 2002
Newspapers 25.0 23.8 24.0 38.7 44.0 70.0 95.0
Magazines 11.0 12.2 13.0 17.3 - - -
Television 27.0 91.0 171.0 161.5 209.0 400.0 636.0
Radio 2.0 5.0 8.0 18.0 - 26.0 34.0
Other 6.0 27.0 51.0 42.3 47.0 63.0 81.0
Total 71.0 159.0 267.0 277.8 300.0 559.0 846.0
Source: MMI Ukraine/Consulting Ukraine
Research
Circulation is estimated by: Publicitas Ukraine, but there is no
official independent body for measuring circulation.
Readership is measured by: MMI Ukraine via regular surveys.
Methodology: Various surveys are conducted by interview in the
major cities, twice a year. Samples are usually between 1,500
and 3,000, and include persons aged 12-65.
Taxes
VAT on: sales 20% advertising 20%
newsprint 20% * plant 20%
composition 20% (standard VAT rate 20%)
* imported newsprint is not subject to VAT
There is a 30% tax on profits, and a 0.5% tax on advertising. All
advertising activity is governed by the Law on Advertising of 3
July 1996 (number 270/96-BP).
Subsidies
The State declares its support for all mass media, regardless of
ownership, but in practice gives financial support only to state
and municipal newspapers.
Ownership
Does any law exist governing publishing-house ownership, or the
registration of shares in newspaper-publishing companies Yes. Law
of Ukraine on Print Media 16 November 1992 (number 2782-
XII) and Law of Ukraine on Enterprise 7 February 1991 (number
698-XII).
Is there any law prohibiting or restricting foreign companies or
individuals from owning shares, and in particular, the majority of
shares, of domestic daily newspapers No, though foreigners may
own no more than 30% of a company that distributes
newspapers.
Is there any law prohibiting daily newspaper or periodical publishers
from operating radio or television stations in the same locality No
So as to guarantee disclosure and transparency in the capital structure
and to avert silent partnerships, is there a law or rule making it possible
to determine who actually owns a publishing company In
accordance with the Resolution by the Cabinet of Ministries of
Ukraine of 27 December 2001, companies are obliged to disclose
full information of their ownership to the government
authorities.
Is there an antitrust law limiting concentration in the daily press
Article 10 of the Law ‘On the printed mass media’ limits control
by any one person to 5% of national and regional newspapers.
Is further regulation of media concentration expected Possible new
legislative acts are the Law ‘On privatisation of the mass media’
and the ‘Information Code’.
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WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003