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editorialDISCOP LINK NEWSLETTERContents and Format Business in CEEEDITORIALPublishers: Basic Lead & Media ArtService InternationalPublishing Director:Patrick JUCAUDBasic Lead12 Rue Faraday75017 Paris, FranceT + 33 1 42 29 32 24F + 33 1 42 29 34 74patrick@discop.comExecutive Editor:Rastislav DURMANMileti}eva 12/II,21000 Novi Sad, Vojvodina, SerbiaT/F + 381 21 420 900ceo@mediart.orgContributing Editor:Bob JENKINST + 44 203 22 00 188M + 44 781 42 42 405bobjenkins7@btinternet.comContributors: Danica A]IMOVI], NickGILBERT, Andrej MATIJA [EVI], JelenaMILOJKOVI], Anna NJEMOGA KO LAR,Olivera POPOV-OBRENOV, Tijana PRO-DANOV, Spas SPASOV, Dragana STA -NI], Biljana TODOROVIK, Milica VASI](Deputy Executive Editor)ART & DESIGNEmil OTRUP^AK & Sr|an GULINADVERTISING SALESBooking Manager: Diana RABANSERBasic Lead12 Rue Faraday75017 Paris, FranceT + 33 1 42 29 32 24F + 33 1 42 29 34 74dianarabanser@basiclead.comSUBCRIBERS MANAGEMENTVladimir GRAYVORONSKIT + 33 1 42 29 32 24F + 33 1 42 29 34 74vladimirgrayvoronski@basiclead.com© Basic Lead & Media Art 2008. Allrights reserved. No part of this publicationmay be reproduced or transmittedin any form or by any means, electronicor mechanical, including photocopying,recording or any informationstorage or retrieval system without theexpress prior written consent of thepublisher.Printed by: Maxima Graf,Petrovaradin, Vojvodina, SerbiaISSN 1452-1016COBISS.SR-ID 204927751WELCOME TODISCOP EAST 08!As we are about to print with thenew issue of DISCOP.Link, 1758participants were accounted as registeredfor this 16 th edition of DISCOPEAST, all of them involved in televisioncontent programming, acquisitions,production and distribution throughoutthe booming territories of Centraland Eastern Europe!With six market levels and closeto 380 international finished programmes,scripted and unscriptedformats, and packaged TV channelssales organisations, this year’s DIS-COP EAST will be marked by a 20%increase in overall buyers and sellersattendance.And now that the transition to digital broadcasting is well under way inCentral and Eastern Europe, a substantial number of new thematic TV channelslaunched since last year will be represented at Budapest, eager to discussacquisitions and co-production opportunities with new partners and suppliers.Finally, we are happy to see that for a growing number of television contentdistributors involved in foreign licensing and syndication, Central and EasternEurope has now become their N o 1 international market!Thank you for your continuing support, and let me remind you that ourexpanded staff will, as usual, be available at all times to meet your variousorganisational and logistical needs during our 3-day market.Best regards,Patrick JUCAUDFounding ManagerThe DISCOP Organisationpatrick@discop.com04 DISCOP LINK • #14 • JUNE 08

DISCOP AFRICAINTRODUCING DISCOP AFRICABy Bob JenkinsThe story of how DISCOP, now known as DISCOP EAST, helped build thecontent business in Central and Eastern Europe over the past sixteen yearsis well known. Now, market organisers Basic Lead are looking to repeat themagic for Africa, with DISCOP AFRICA launching February 2009 in theSenegalese capital, Dakar.Next year sees the debut of a newcontent market dedicated to theneeds of the African continent. DIS-COP AFRICA will be held 25 – 27February at the Sofitel Teranga hotel,Dakar, capital of Senegal. Organisedby Basic Lead, the company responsiblefor DISCOP EAST, the event isalready being well received.Amongst the companies that havealready signed up to exhibit, ninemonths before the event, is DaroFilms. President Pierre Rochat has nodoubt that the time is ripe for a marketdedicated to the needs of theAfrican content business. “Now is agreat time to launch a content marketserving Africa,” he enthuses, “which iswhy we have already signed up and willbe exhibiting in Dakar next February.The reason now is the perfect time,”continues Rochat, “is that Africa isnow truly an emerging market. Thereare new stations appearing all overthe continent, and they are properlyfinanced and managed, and representa real opportunity to do business.”Another company already committedto DISCOP.AFRICA is Israelitelenovela behemoth, Dori Media.CEO and president of Dori MediaAmerica and president and generalmanager of Dori Media Distribution,Jose Esca lente, is sure that, “Africawill become key for Dori Media’s content.”Certain ly it is undeniable thatAfrica has a love affair with the telenovlaform, as it witnessed by Dori’ssales to Nigeria, Tanzania, Kenya,Zimbabwe, Ghana, and Namibia.These are sentiments echoed byexecutive vice-president MGM Net -works, Bruce Tuchman. “I certainlyplan to be at the inaugural DISCOPAFRICA,” confirms Tuchman, adding,“I think DISCOP AFRICA is a fantasticidea. When we look at Africa from thestandpoint of the MGM channel wesee huge growth potential right now.This,” believes Tuchman, “is becausethe cost of entry for a platform playerhas been falling steadily over the pastfew years, and, as a direct consequence,more and more platformshave been opening up, and not justchannels either; Africa has an in -creas ingly savvy consumer base andthere is also a huge explosion inmobile phones as well. When you addto all of that,” concludes Tuchman,“the fact that the continent has hundredsof millions of people, we findourselves getting pretty excited aboutall of this.”Without doubt the biggest marketon the continent is South Africa, andso it is a good indication of how relativelynew the whole business of televisionis to Africa as a whole that SouthAfrica’s first broadcaster, the staterun SABC only went to air as recentlyas 1976. Peter Rolland, general manager,African Network, Saatchi andSaatchi is also a supporter of DISCOPAFRICA’s launch. “It is a good time tolaunch a content market for Africa,”he insists, pointing out that recently,“the economic growth on the continenthas been ahead of other regionsof the world, and there is a new focuson its untapped potential.” In his currentrole, Rolland’s focus is exclusivelyon the South African market, and sowas reluctant to comment on trendsin Africa as a whole, but he did identifyone key trend in his home market ofSouth Africa. “We are,” he reports,“seeing more and more advertiserinvolvement in the production of content.It started with simple productplacement and has now extended intostoryline integration and content solesponsorship.”A good example of how this sponsorshipmodel can open up the Africanmarket is offered by SESAME STREET.Sesame Workshop’s executive vicepresident,international projects DanVictor explains; “ours is a very idiosyncraticbusiness in that we are a nonprofit,educational organisation, firstand a television production companysecond. One consequence of this,” hecontinues, “is that, overwhelmingly,we work through local versions of theshow.”06 DISCOP LINK • #14 • JUNE 08

In South Africa Sesame Work -shop produces a local version,TAKA LANI SESAME with local productioncompany Kwasukasukalaand the SABC. Now in its fifth season,the show was originally fundedthrough the USAID programme,but, from the secondseason on, it has been funded bythe show’s sponsor, Sanlam, amajor South African financial servicescompany.Because of the importanceSesame Workshop attaches to workingon a very local level, they havedivided the continent of Africa into fourprimary regions, South, East, Westand the Horn. “Then,” explains Victor,“we seek to work with a sponsor whoshares our goals of educating youngchildren with important life lessons inorder to establish a major co-productionin each region as a base fromwhich other local versions canemanate.”TAKALANI SESAME is a goodexample. Following the establishmentof this version in South Africa,Sesame Workshop has launched aTanzanian version, KILAMANI SESA -ME, and, reveals Victor, “we are lookingto enter West Africa with aNigerian co-production, which will besupported by a major sponsor.” Al -though, at the time of writing, Victorwas unable to name the company thatwill, he hopes, be supporting theNigerian co-production. “For all ofthese reasons,” he concludes, “Africais a very exciting market for us, andwe are actively considering attendingDISCOP AFRICA next February.”But a content market such as DIS-COP AFRICA is not just about thosewho go to sell. If there were no buyersthere to buy, well, it wouldn’t be muchof a market! And there will certainly beplenty of African buyers in Dakar nextFebruary. Cherise Barsell, head ofbuyer relations, Africa at marketorganisers Basic Lead, estimates thatthere will be, “around 120 buyerspresent at the first edition of DISCOPAFRICA.” And this figure might verywell increase as Barsell has a toughschedule which will see her visitingnearly all the countries of Africabetween August and December of thisyear drumming up support amongstbuyers for this event. In addition, whileon her travels, Barsell reveals thatshe will, “be making a video blog aboutdevelopments in the African contentmarket, which will be posted onwww.discop.com enabling everyone tonot only follow all the latest developmentson line, but also to ask anyquestions they may have.”The obvious need to get as manyAfrican buyers as possible to attendthe event was, in many ways, a keyfactor in the decision to hold DISCOPAFRICA in the Senegalese capital.“Acces sibility,” reveals Barsell, “waskey. In so many ways, Dakar was theeasiest place for African delegates tovisit.”Of course, the opportunity totrade is the primary reason for anevent such as DISCOP AFRICA toexist. However, a crucial pillar of successfultrading is understanding. It isimportant, not only that sellers understandthe different local markets, andthe differing needs of players withinthose markets, but also that the buyershave a good understanding of thecommercial realities that impactthose companies from whom theyhope to acquire content.This is why, as Barsell explains,“the first day of DISCOP AFRICA, 25 thof February 2009, will be a dedicatedconference day. We have,” she goeson to reveal, “conducted a great dealof research into the specific issuesthis conference day should address,and it seems likely that the topics willbreakdown into two main categories.The first will address the serious issueDISCOP AFRICAof piracy, helping African broadcastersunderstand how the gameis played and why they mustrespect intellectual property rightsif they wish to build sound businessrelationships with major contentsuppliers. The second main areaof focus,” she goes on, “will be tolook at ways in which content supplierscan profitably enter theAfrican content market. In particular,we will look at ways in whichadvertisers can become involved,including possible roles for barter syndication,and co-production.”Talk of advertiser funded barterand co-production in Africa is a longway from the experiences of Britishmini-major, All3Media. Sales executivePaul Corney reports that, “thus farmost of our business on the Africancontinent has been done in the form ofpan-territory deals. From what I haveseen,” he goes on, “individual stationsthat buy just for their own territory aremainly Pay TV platforms offering verylow fees in the region of €125 perhour. Given that global companies arecurrently developing their services inAfrica, and are in a much better positionto tie up Pay rights to the morevaluable content, I don’t see howthese smaller individual stations cancompete. But I certainly think that amarket such as DISCOP AFRICA couldbe a big help for some of these smallerplayers.”Ellen Windemuth, managing di -rect or at Dutch documentary houseOff The Fence, is much more positiveabout the state of the African contentmarket. “At the moment,” she re -ports, “the African market is a verybuoyant one with lots of promise,especially in South Africa where wehave an Off The Fence office, and alsomarkets such as Ghana, Nigeria,Angola, Namibia, Tanzania, Kenya,Botswana and Zimbabwe are lookingmuch stronger than they have donefor years.” All of which has persuadedWindemuth that, “if DISCOP AFRICAcan demonstrate the presence of themajority of the buyers from Englishand French speaking Africa, then it isvery likely that Off The Fence willattend.”Given what we have learned aboutthe way things are shaping up for DIS-COP AFRICA’s debut, it seems safe tosay, “see you in Dakar Ellen!” }08 DISCOP LINK • #14 • JUNE 08

DISCOPRODISCOPRO REVEALED!By Bob JenkinsOnce again, DISCOP EAST is precededby DISCOPRO, and below, DISCOP.Link outlinesthe day’s highlights.Once again, DISCOP EAST will bepreceded, on 17th June, by DIS-COPRO. Organised in association withBavaria Media Television, / BavariaFilm, The European Commission Di -rect orate COMMUNICATION and theAUDIOVISUAL SERVICE of the Europ -ean Union, this year’s DISCOPRO willfocus on the co-production opportunitiesoffered by the recent explosion ofmore than 200 thematic channels inthe DISCOP EAST region.Held at The Gerbaud house, theday will start at 08.00 with registrations,coffee and networking opportunities.Then, at 09.00, the first session,‘Why are so many thematicchannels being launched across theCEE?’ will commence. The heavyweightnature of the contributors tothese sessions is perfectly underscoredby the opening three panellists,Ross Hair, Senior Vice-Presi -dent, International Channels, SonyPictures TV International, Peter Lakis,CEO, Chello Central Europe andManaging Director, NBCU GlobalChan nels, Colin McLeod.This opening will be followed bytwo half-hour events designed to provideattendees with hard facts. IsabelMayor Garau, International SalesManager for Eurodata TV Worldwide/ Media metrie, will start the first oneat 09.45 with a completely up to dateoutline of The CEE Thematic TV Chan -nels Landscape, followed at 10.15 byThe EU Support To Independent TVProducers in CEE, presented byMatteo Solaro, Project Manager, TVIsabel MAYOR GARAU, InternationalSales Manager, Eurodata TV Worldwide /MediametrieBroadcasting, Media Programme ofthe EU.Isabel will address two generalquestions concerning multichannel10 DISCOP LINK • #14 • JUNE 08

Guido BRANCHER, Development Manager,Dream Onmarkets: ‘does viewing time in multichannelhomes evolve as the channeloffer is increased?’ and, ‘do morechannels mean more hours spentviewing?’ Then, addressing currentevents in Central and Eastern Europespecifically, Isabel will provide accurateupdates on: National TV landscapes, includingthose of Russia, Romania, TheCzech Republic, Hungary and theBaltic countries. Daily viewing hours Market share of all the majorchannels TV Distribution Highest rating programmes.Matteo will outline the financeavailable from the Media programmefor, training, production, distribution,promotion, festivals, new technologiesand development, and the criterianecessary to access this funding.With €28 million available in total, thisreally is a ‘must attend’ session.The two sessions will be followedat 10.45 by a coffee break, providinga further networking opportunity.Then at 11.15 one of the key supportersof DISCOPRO, Bavaria MediaTelevision / Bavaria Film will present,Strategic Alliances As A Key To JointCo-Production Activities In Europe.Presented by three of the most seniorfigures in the Bavaria Group, Manag -ing Director, Bavaria Media Television,Oliver Schuendler, Director of Salesand Head of Eastern European Affairs,Helge Koehnen, and Bavaria Film’sHead of Strategic Planning, CorporateDevelopment and Communication,Tobias Gerlach, in association withMaciej Strzembosz, a producer fromATM Gruppa, with whom Bavariamedia work closely, the session willlook at why we are witnessing such agrowth in co-productions, and why, inparticular, there is such a markedgrowth in co-productions betweencountries in CEE and those in WesternEurope.The final session before lunch is acase study entitled, ‘Presentation of‘Low Cost’, Customisable MagazinesMade for Thematic TV Channels.’ TheMedia Programme’s Head of Audio -visual Services, Fabrizia de Rosa tellsDISCOP.Link that Head of Marketing,Marc Villain and Head of e-team,Jean-Pierre Assalone, will explain how,in addition to supporting the attendanceat DISCOP of around 30 producersfrom low production capacitycountries, the Media Programme alsoaids independent producers by makinga huge library of EU related audiovisualcontent available free, and theprovision of very many other suchservices.The afternoon kicks off at 2.30pm with ‘Co-production PartnershipStrategies of Thematic TV Channelsand TV Content Producers’, withGermaine Deagan Sweet, VP ContentTobias GERLACH, Head of StrategicPlanning, Corporate Development andCommunication, Bavaria FilmDISCOPROOliver SCHUENDLER, Manag ing Director,Bavaria Media Television, Bavaria GroupSyndication, National Geographic /Fox.The second afternoon session followsat 3.15, and will feature RossBiggam, Managing Director, ACT;Russell Jarman Price, Creative Part -ner, Ogilvy Entertainment; and GuidoBrancher, Development Manager atdesign house, Dream On. Ross willdeal with the implications, and details,of last December’s Audiovisual MediaDirective, which made some majorchanges to European audiovisual regulation.Ross will ask, ‘when does thisstart?’ and ‘what does this mean forme?’ While Guido will talk the audiencethrough Dream On’s recent experienceof rebranding the Czech broadcasterPrima.Following a networking coffeebreak at 4.15 pm, the final two sessionswill be a case study at 4.45 entitled,Presentation Of ‘Low Cost’Television Formats Made ForThematic TV Channels, with Fredrik afMalmborg, Managing Director,Sparks Networks, and Steve Pinhay,Head of Television at British formatsproducer Bullseye.The final session, The DigitalSwitchover, starts at 5.30 pm andfeatures Orange’s Director of TV forPoland and Eastern Europe, JakubBreczkowski and Screen Digest MediaAnalyst Guy Bisson, who has just writtena detailed study on the subject.DISCOPRO closes with a networkingopportunity cocktail at TheGerbaud starting at 6 pm. }12 DISCOP LINK • #14 • JUNE 08

usiness toolsA LICENSE TO MAKE MONEYBy Bob JenkinsLicensing has been an integral part of brand management for a long time inthe West, and now the CEE is catching up fast. DISCOP.Link takes a look atwhat’s really happening in our region’s licensing business.Always an important revenuestream for global content suppliers,as the content market in CEEgrows exponentially, with over twohundred new channels opening in thepast year alone, attention is inevitablyfocusing on licensing in the DISCOPEAST region as well.Diana Dieckmann, vice-presidentlicensing, Germany, Eastern, Centraland Southern Europe at FremantleEnterprises, for one is in no doubtthat, “the licensing business in CEE isvery important as the potential ofmany brands is not fully exploited yet,and this gives many opportunities forlicensing partnerships.”Potential is also the key word forAndrew Carley, head of licensing andmerchandising at Contender Enter -tain ment Group, owners of propertiessuch as PEPPA PIG and TRACTORTOM. “What makes CEE important,”insists Carley, “is the potential. Inde -ed,” he goes on, “the percentage in -creases are quite large.”Carley believes there are a numberof reasons for the current boom inlicensing in the region. “There is certainlya greater awareness of retail ingeneral,” he observes, “not leastbecause the countries of the regionare more affluent and have more consumer-orientatedsocieties than wasthe case ten years ago, and retailersare waking up to the opportunitylicensed merchandise represents.There is now,” he continues, “a genuineinterest both in licensing in general,and in the more specific area oftying in licensing with broadcast.”The relevantly recent linking ofbroadcast and licensing is also highlightedby FME’s Dieckmann. “A lot ofTV format brands have recentlydebuted in many countries in CEE, andconsequently audience interest inancillary, licensing and merchandisingproducts and activities is steadilyincreasing,” she observes.One property of which this is certainlytrue is Granada’s hit pre-schoolproperty, POCOYO. “Although theregion as a whole has been an importantlicensing market for a number ofyears now,” acknowledges MelanieBeer, Granada Venture’s head oflicens ing and merchandising, “it is onlynow that it is about to become importantfor us, as it is only now, inPOCOYO, that we have a property withthe level of local recognition, that willmake it an important region forGranada Ventures as well.”A good indication of the extent towhich the popularity of POCOYO haspushed the DISCOP EAST region ontothe licensing radar at GranadaVentures is given by the fact that thecompany is in the process of appointinga local agent, and plans to make afirst visit to The Licensing Forum – CEEnext March, ahead of a plannedlaunch of POCOYO products in Easterof 2009.The Licensing Forum, is itselfanother clear indication of the arrivalof licensing as an important businessin the region for content suppliers.Established in 2005 by LicensingBrands International, (LBI), LicensingForum has, so far been held inWarsaw, although the fifth edition,which will take place 16 th and 17 th ofMarch will move to the Marriott,Prague. Last year’s edition attractedover seven hundred delegates includingrepresentatives from the world’slargest licensing companies such asDisney, Warner Bros, Fox and UnitedMedia.And if final confirmation of theimportance of the licensing businessin the region were to be needed, DIS-COP.Link can exclusively reveal thatthe organisers of DISCOP EAST are indiscussion with a number of partiesabout a possible licensing show inMoscow in late 2009 to focus onRussian speaking territories.None of this surprises ErnieLustenring, a partner in LBI, “not onlyare the economies of the countries ofCEE growing,” he observes, “but soare their television markets, creatingever more positive licensing opportunities.”The growth that Lustenring refersto is universally seen as the mostattractive aspect of the region from alicensing perspective. As AndrewCarley notes, “as a proportion of theglobal licensing business CEE willremain small for some years to come,but the percentage growth will continueto be big. And, at a time when peopleare talking about very small growthin established markets, or even recession,that will continue to make theregion very attractive.”Another attractive aspect of theregion’s licensing business is highlightedby Granada’s Beer. “Currently,” sheinsists, there is nothing like the fightfor shelf-space that you see inWestern Europe, and, because it isstill a relatively new and exciting business,there are many more opportunitiesthan in Western Europe.FME’s Dieckmann agrees, butbelieves that, “the best way to exploitthat potential is to adopt a focused,territory by territory approach. FME,”she reveals, “has already time andenergy into building relationships on alocal level in CEE, and this coupled withFME’s ability to deliver successful TVbrands to CEE, will make the comingyears very exciting for our licensingbusiness in the region.”}14 DISCOP LINK • #14 • JUNE 08

CEE reportCZECH TELEVISIONBy Rastislav DurmanAfter the fall of the Berlin Wall in 1989, some former Eastern Block statetelevisions have successfully been transferred into public broadcastingservices, and some have not. Following a period of almost twenty years,they are still looking for their place in the sun.Czech Television has successfully transformed into apublic broadcaster. On January 1 st 1992 Czech Tele -vision was established as a public service and has beendeveloping ever since, regardless of the tough competitionin the market such as TV Nova, Prime TV and powerfullocal TV stations. CTV’s success derives not only from theirstable market share but also from the strong programmeproduction which has made its way to the audience not onlyin the Czech Republic but also in the region and beyond.“When we at CTV plan our programme production,”reveals Marie Magdalena Novakova, CTV’s sales manager,to DISCOP.Link, “we primarily keep in mind the fact that CTVis a public broadcaster serving the Czech audience. So ourpriority is to broadcast our own productions of interest toCzech viewers. Another key criterion for our producers andauthors is the potential such programming may have onthe international market and, of course, its commercialpotential. CTV is a significant co-production partner yetsome times it is a sole producer of many feature films,”says Novakova. CTV programming has specific and recognisablefeatures. “Our strategic advantage,” Novakovagoes on to explain, “lies in the fact that Czech Televisionmaintains a spectrum of programming targeting differentaudience groups. Our best buyers come from Slovakia andPoland,” reports Novakova. “As for the kind of programming,the situation changes from year to year. In the past,feature films and animation were best received by the audience.Lately, filmed fairy tales and old TV series have beenselling best. The absolute champion over the past fewyears is the series RETURN OF ARABELLA, followed by thevery popular HOSPITAL AT THE END OF THE CITY.”RETURN OF ARABELLA is promoted as a series of fairytales for the whole family. It depicts the Mayer family. Thehead of the family, their father, earns his living by telling bedtime stories. One day Mr Mayer finds a magical bell whichhelps him reach the world of fairy tales. Good King Hyacinthrules this world with his two daughters, Arabella and Xenia.The main threat to the Fairy Kingdom comes from the evilsorcerer of the second grade, Rumburak, who is eager toseize total power. However, like in every fairy tale, there isa happy ending.HOSPITAL AT THE END OF THE CITY depicts the dailyroutine in an ordinary Czech hospital which is a metaphorfor everything that happens in the Czech Republic – thegeneration gap, love affairs, turbulent careers, moraldilemmas etc. The first series of HOSPITAL was shot backin 1976 to have its premiere in 1978. The second part ofthe series was shot and broadcast in 1981, whereas thethird part of the series is coming out this autumn. The popularityof the series is confirmed by voting on CTV’s website. 70% of the site visitors believe that HOSPITAL AT THEEND OF THE CITY is extraordinary; 9% state that they likethe series; some 5% of the viewers think the series is just‘alright’.Marie Magdalena Novakova also reveals CTV’s sellingstrategy in the coming years. “Our priorities are new mediaand the need to include the most successful productionsso far in our future offer as well.” Novakova estimates theselling of CTV programmes as successful business.Although focused primarily on the Czech viewers, CTV iscarefully establishing its position on the international marketas well. This is proved by their membership in the followinginternational organisations: EBU (European Broad -casting Union); PBI (Public Broadcasting International);DVB (Digital Video Broadcasting); SMPTE (Society ofMotion Pictures and Television Engineers); EGTA (EuropeanGroup of Television Advertising); IMZ (InternationalesMusikzentrum); Euronews and Eurosport. }16 DISCOP LINK • #14 • JUNE 08

CEE reportIMPORT BIGGER THAN EXPORTBy Istvan BodzsoniIn Hungary there is an increasing number of broadcasters who need anincreasing amount of programming. Internal production is too expensive soheads of TV stations apply a tried and tested recipe - they acquire largequantities of cheap South-American, Italian and Spanish soaps. The demandfor quality documentary programmes has also increased and not only forspecialised TV channels. The major TV stations still remain the most reliableprogramming buyers such as RTL Klub, TV2, and Hungarian Television.Let us have a closer look at the businesspolicy at MTV. We talked toEster Lang, from MTV’s Film Acquisit -ions department.Being a main public broadcasterin Hungary, we have two channels: aterrestrial (M1) and a free satellite(M2) channel. On these two channelswe offer different kind of programmingto reach a wider audience.To extend our in-house production,on our first channel we mainlylook for fiction series (preferably 12up to 50 episodes) of various kindsdepending on the slot to fill. We coverboth daily and APT as well as a limitednumber of prime time slots. We alsoacquire single television programmes(family programmes, comedies) forspecial occasions. Period-drama, de -tect ive and contemporary dramaseries work very well particularly withthe female audience (e.g. INCANTESI-MO, INSPECTOR MAX, ZODIAC, FÜNFSTERNE, ELISA DI RIVOMBROSA etc.)in addition to other types of popularquality series for late prime slots (suchas 24 or SPOOKS). Animations madefor children and series targeting ayounger (15-24) audience (e.g.: LESVACANCES DE L'AMOUR) are also apart of our acquisition plans to a certainnumber on a regular basis.Our second channel offers programmingto those interested in factualentertainment, including series witheducational content, nature & wildlifeprogrammes, travel programmes andsome single documentaries. It is notan easy task to reach the youngeraudience as they tend to watch lessand less television. In order to attractthem more, our programming inclu -des new music and lifestyle contents.We also intend to approach our targetaudience with branded slots that arecovering acquisition for both wideaudience-basedmainstream pro -gram mes (e.g. thrillers) and a certainnumber of high quality art-house andfilm history productions.Generally speaking, regardingreality shows and formats, we are notinvolved in acquisition for the timebeing. The same applies to soaps.More than 50% of our acquisitionscome from the EU. The number of USfilms in our programming is currentlygrowing to make slightly over 30% ofthe total acquisitions. Another 10%include acquisitions from other EUcountries and the rest of the world.In Hungary in general there are agrowing number of companies en -gaged in acquisition, selling or distributionof various TV content. They, ofcourse, fit in well into the overallCentral-European TV market landscape.Among these companies isalso Budapest-based HungariCom.We talked to Viktor Dudas, SalesExecutive, from HungariCom.Animation films arouse the highestinterest in our latest Line-Up catalogue.The first animation IMMI-GRANTS, which was made in Ameri -can-Hungarian co-production attractedthe biggest attendance. There arestill negotiations with several representativesof various territories, in -cluding one of the biggest Americandistributors. We made the first filmdeal on the CIS territory. Moreover wesold the following films to the followingcountries: EGON & DONCI, CATCHER-CAT CITY 2 - to the Middle East, China,Venezuela, Brazil, India, Indonesia,Malaysia, Turkey, Brunei, Vietnam andSingapore; S.O.S. LOVE - to SpanishTV, Thailand and India; KONEC – toJapan, Venezuela and India; JUST SEXAND NOTHING ELSE – to the CzechRepublic and Slovakia TV, UK, Japan,USA, Russia and India; and THE SUNSTREET BOYS and NOSEDIVE - toJapan.HungariCom Ltd. has been dealingwith international distribution ofHungarian films professionally for twoyears now. Due to our results so far,we can describe our business asbeing dynamic. We received promisingfeedback from countries all aroundthe world. We also make fruitful businessdeals with our former partnercompanies. Buyers are keen to seeand are aware of the quality of theHungarian films. HungariCom hasbeen engaged in the internationalsales and distribution of the Hungar -ian feature films for many years now.We hope to get future results and beable to sell films worldwide throughour continual presence at festivals.For DISCOP EAST 2008 Fair we haveprepared a favourable programmepackage which will hopefully make a hitwith our partners as well.A general conclusion may be thatthe region is hungry for quality TV productionsmade in the spirit of theCentral-European tradition. The numberof such productions is small whencompared to the demand. Also, it isdifficult to sell such programming outsidethe region. }18 DISCOP LINK • #14 • JUNE 08

CEE reportCONSTELLATION IN THEUKRAINIAN MEDIA SKYBy Nika PodshyvaylovaSTAR MEDIA’s strategyis to be a strongproduction companywith a comprehensiveand constantly growinglibrary of copyrightsInterview with Vlad Riashin – Presi -dent of the Board of Directors, STARMEDIA Group, member of theAcademy of Russian Television, ad -viser to the Director General of the TVTsentr (TV Center) television channel,producer.What kinds of programs doesSTAR MEDIA sell?STAR MEDIA is one of the biggestproduction companies in the CIS countries.It specializes in the production oftelevision novels, drama series, enter -tainment programs, TV movies, and3D animation. In the fall of 2008 wewill present our first theatrical motionpicture, and work on other threemovies is underway. Already ourmovies, series and animation projectsare well presented in the televisionmarkets of Russia, Ukraine, Belarus,the Baltic States, the CIS countriesand in Eastern Europe.We work on the creation of alibrary of copyrights that allows us tooffer our product to other media platforms– the Internet, IPTV and VOD(video on demand).This year we have presentedanother interesting offer for the market– the creation of original formats.SONY, Fox and a number of companiesin Latin America expressed theirinterest in them.Who do you sell programs to andhow successfully?The company collaborates withthe leading channels in Russia. Thevaried genres of our products aim at awide viewers’ audience, therefore,STAR MEDIA has stable partnershipsin Lithuania, Latvia, Kazakhstan, theCIS countries, Israel. Russian languagechannels in the US, Canada andGermany show their interest in allspectrum of our TV production.Our latest deal is sale of an extensivepackage of films to the Republic ofBelarus. Two STAR MEDIA projectswere purchased by Barrandov TV (theCzech Republic) for dubbing in Czech.Negotiations with the central TV channelof Romania are in their final stage.Our famous 65-episode historic 3Danimation project THE BATTLE FORMOSCOW, a laureate of two prestigioustelevision awards, was sold toNorway; and DVD-rights to this productwere sold to Belgium, theNetherlands and Luxembourg.Also, representatives from UKbecame very interested in our creativeachievements in 3D animation.Babych Design studio, a part of thegroup of STAR MEDIA companies,presented several new projects in thedocumentary animation genre at theCannes Festival.One of the British TV channelsbecame interested in our projectbased on a book by Charles Dickens.Was STAR MEDIA successfulfrom the very beginning?STAR MEDIA was not founded outof nowhere. We started with the bestprofessionals having decades of workexperience in movie and television production.During the very first yearafter its foundation, STAR MEDIAlaunched production of 2 telenovelas,4 drama series and over 10 TVmovies.3D-animation studio BabychDesign was launched with the 65-episode animation project THE BAT -TLE FOR MOSCOW.In 2007 we produced 4 originaltelevision novels, 8 drama series, over50 television movies and the abovementioned animation projects.”In 2008 we focus on the productionof the premium-class series forprime time, at the same time keepingthe scope of production of originaltelenovelas.What are your plans and ambitionsfor the future?Our strategy is to be a strong productioncompany with a comprehensiveand constantly growing library ofcopyrights. Saying “strong” I meanmodern studio and production facilitiesin Russia and Ukraine, with all thelevels of production and post-productionoperations.Having concluded a leasing agreementwith the Sony Company, we havecompletely transformed our productionfacilities into those of a HighDefinition format. We fully and independentlyensure an entire productionprocess for digital cinema, being postproduction,light, sound and specialtransportation activities.Since 1 st April we have been workingin compliance with the Internatio n -al Financial Reporting Standards andwithin a year we will publish our financialreports. I believe, after that we willgo for an IPO or will possibly unite ourefforts with one of the world majors.What projects are currently themost successful?The past year of 2007 and thebeginning of 2008 were lavished withprizes and international awards. Wepin much hope on successful debut ofour first theatrical movie being a youthcomedy.What are the current trends inthe television production market?The movie production boom, thegrowth of investment, and a high qualityof the production are the currenttrends in the Russian market. A successfulcombination of these factorshas helped Russian television to be -come the best in Eastern Europe andmatch the leaders in Western Europe.I believe the product produced inRussia and Ukraine will be in demandmore and more, and competitive inthe world market. }20 DISCOP LINK • #14 • JUNE 08

CEE reportRUSCICOBy Milica VasicRUSCICO open for cooperation with new partnersFor about ten years now, the RUSCI-CO (Russian Cinema Council), anindependent film, video and tele-distributor,is carrying out work onrestoring 20 th -century film masterpieces,popularizing and distributingaround the world Russian cinema onDVD in a restored version. RUSCICOparticipates in major world and Rus -sian film markets and film festivals,selecting unique foreign films for Rus -sian audiences: film classics, amateurcinema, animation, films for childrenand youth, and films for family viewing.Throughout this time, RUSCICOhas been enhancing its collection byfeatures of the famous Russian directors,and this year they can offer a cataloguewith about 1000 titles for theatrical,home video and TV distribution.At the same time, RUSCICO isoffering all rights for the following newtitles: BOGDAN KHMELNITSKI (Ukra-ine, 2008), UGLY SWANS (Russia,2007) and SHAKESPEARE COULDNEVER IMAGINE (Russia, 2007), THERIDER (Uzbekistan, 2008).The company is also working onunveiling the ‘unknown’ Russian classics.Its new ambitious project isrestoration of the masterpiecesdirected by Eisenstein, Protazanov,Pudovkin, Barnett, Kuleshov made inthe 1920s and 1930s, which will bereleased in the collection “FilmSchool”. These authors’ methods arenow being studied in the film schoolsall over the globe. This collection willinclude not only well-known titles(OCTOBER, MOTHER, STORM ONASIA), but also some less known features,which have never appeared onhome video before. They hope that thenew digital quality of the materials willallow the TV channels and home videodistributors to launch a retrospectiveof the films of this period. The picturequality, achieved through the digital,frame-for-frame restoration with theuse of the state-of-the-art technologies,meets highest standards. Maingoal is to bring the forgotten masterpiecesof Russian and Soviet classicalfilm art back to life.RUSCICO is working with differentTV broadcasters and home video andtheatrical distributors all over theworld. And they are open for cooperationwith new partners.At the present moment RUSCICOhas a catalogue with about 1000titles. Most of them are feature filmsof the Soviet period and one can findall kinds of genres in this library – dramas,comedies, war movies, screenadaptations, fairy tales and animation,family and children films. There areseveral new modern titles like philosophicsci-fi UGLY SWANS, Ukrainianperiod drama BOGDAN KHMELNIT -SKY and Uzbek ethnic drama THERIDER and several new titles in thelibrary section, like feature films aboutanimals BLACK MOUNTAIN, RIKKITIKKI TAVI, LYNX FOLLOWS THE PATHand others. Eastern Europe region isone of their key markets. Close historical,political and cultural ties betweenthis region and Russia allowed theaudience to get to know and likeRussian cinema, so the most successfultitles are well known movies ofthe mentioned Soviet period likeSEVENTEEN MOMENTS OF SPRING,FATHER FROST, QUIET FLOWS THEDON, AT DAWNS IS QUIET HERE,CRIME AND PUNISHMENT and ofcourse films by Tarkovsky, Mikhalkov,Paradjanov, Abuladze, Gerasimov,Row and many other great directors.An important feature of RUSCICO collectionare its extra materials containinginformation about the making offilms and their creators – directors,cinematographers, screenwriters,composers, actors. To this end, botharchive and new video, audio, photoand print materials are used, whichare being specially prepared within theframework of this project.RUSCICO’s target group was clearenough for from the very beginning.As they have quite a big library, theyare able to deliver content to differentTV channels and home video distributorsspecialized on various themes.RUSCICO has titles for each specialdemand. }24 DISCOP LINK • #14 • JUNE 08

CEE reportPOLISH TV MARKET RAPIDLY GROWINGBy Piotr SochaTVN is setting new quality benchmarks for the Polish TV market.TVN is one of the most rapidly growingtelevision stations in Europe.Frequent ly nominated and award-winning,TVN is considered to be settingnew quality benchmarks for the PolishTV market. Its programming gives itthe image of a station that is contemporary,dynamic and innovative. Thestrength of its brand is also builtaround in-house film productions suchas blockbuster films, TV series anddocumentaries, which we will be presentingduring the forthcoming DIS-COP EAST.Especially noteworthy among thelatest TV series are: 39 AND A HALFand NOW OR NEVER. Both series arecurrently broadcast with great resultson TVN.39 AND A HALF is a drama-comedyseries about Darek, a carefree,fun loving man. As his 40 th birthdayapproaches he stops to assess his lifeso far – and it is not a pretty sight.Finally he realises he must start togrow up, create a new beginning forhimself. No one said it would be easyand Darek’s struggles create a hilariousand touching story. The secondTVN’s new release is NOW ORNEVER, a modern drama series showinga group of young people who meetat a New Year party and discover theyhave a great deal in common. NOWOR NEVER is that rare thing – a warm,funny and modern drama series aboutyoung people as they gain newstrength from each other.In Budapest TVN is also going topresent the long-running TV series:CRIME DETECTIVES (detective seriesabout a team of 3 officers who solveone case in each episode) andMAGDA M. (a modern drama seriesabout love and friendship in a big city).Both of them were well received byaudiences, whose support won themget the Telecamera awards for BestDrama Series and Best Crime Seriesin Poland.As far as documentaries are concerned,the content of series andfilms focuses mainly on history, butshow it in very different ways. THEEXPLORERS is an example of seriesdescribing and solving biggest historicalmysteries; HIMALAYANS showsthe personal stories of famous mountaineersfollowing their passion at anycost; FLEET OF GHOSTS investigatesthe history of the second world war byexploring its shipwrecks. Many differenttopics, like criminal cases, archaeologyor great people are related intheir fascinating, top-quality documentaries.Among feature films TVN hasromantic comedies (NOW OR NEVER,JUST LOVE ME) and a thriller movie(THE STATE WITNESS). They were allblockbusters in the theaters, eachgaining audiences from 1 to 1.6 millionin Poland.ATM Group is the largest – beingactive since 1992 – independentPolish television content producer.The company has approximately a17% share in the TV production marketvalued at least €110,000,000per year. As the only company in thisindustry, ATM Group has its own technicaland logistic infrastructure thatenables providing a full range of servicesin the field of preparing and producingTV programs (for studios andequipment).The company produces programscommissioned by polish commercialand public broadcasters. The company’sactivity focuses on the most profitableand technically advanced formatswith the highest viewing ratings.The services provided by ATM in thescope of TV and film production compriseproduction of all most importantTV forms, including: reality-show programs,TV series and soap operas,game shows, feature films, programsfrom the genre of emotional TV, sitcoms,documentaries, talk-shows,entertainment programs and sportsevent coverage.For two years the company hasworked intensely to develop its presencein foreign markets, in particularin the European Union. In 2005 and2006 ATM Group sold licenses for itsown programs to foreign clients: forthe game show CASH BATTLE andthe series CLUELESS.During DISCOP EAST 2008 inBudapest ATM Group will first of all bepresenting:New project (pilot produced)STARK NAKED is an interactive program,an innovative combination of aclassic general knowledge game showand a reality show. Six people enterthe program naked and barefoot – intheir underwear only, and they mustlive in an isolated space devoid ofalmost everything. The viewers arecon nected with the studio via webcams.CLUELESS (game show) combineselements of decision-making and highstakesgambling in an absolutely rivetinggame show.CASH BATTLE (game show) is ageneral knowledge game show wherecontestants compete together asteams and continue on the show untilthey are defeated, giving them theopportunity to win an unlimitedamount of cash and gift prizes.ATM is going to present twoseries of this show.PRIME MINISTER (political fiction)features a group of politicians whoexercise power following victoriouselections. The original Polish serieswas directed by Agnieszka Holland,very well known for her famousHollywood series and feature movies.FIRST LOVE (soap opera) is aboutMaria, a high school graduate living inWadlewo, a quiet village far away fromthe everyday rush, who decides tostudy medicine in Wroclaw. ThereMaria meets her first love… }26 DISCOP LINK • #14 • JUNE 08

CEE reportHUMAN NEST / THE STALKS SHALL RETURNBy Jasmina Cekic“The series just as we have deserved”After a very aggressive media campaign,in November 2007 the TVseries THE STALKS SHALL RETURN,known to the foreign market asHUMAN NEST, started. Over themonths the series got an increasingnumber of viewers, among otherthings because of the very popularcast. In terms of its technical quality,the series production is superb andhas established new standards fordomestic TV series production.For the ignorant, Svaba (NikolaDjuricko) and Ekser (Dragan Bjelogrlic)try to survive the transition process inSerbia by selling stolen perfumes.They are waiting for a miracle to happenand are constantly running indebt. Svaba still lives with his parentsalthough he is 33. He owes a largesum of money to a local criminal, DulePacov, who wants his money back.Svaba has two options – either to paythe debt or to leave the country.Svaba’s pal Ekser sells stolen goodson behalf of Dule Pacov. He is howeverready to take his pal’s side.We discuss the production issuesof the series with Oliver Milenkovic,new business manager at Adrenalin.To produce the series you signeda contract with B92. Did you intend tosell the series to other channels,especially to foreign ones?Of course I did. Although we sharethe same history and culture, all therepublics of the former SFRY havenow become independent countries.Therefore, selling to the region is quitea logical move.Do you intend to shoot some moreepisodes and enter the second season?This is not so much a matter ofintention as it is a matter of estimation.The work on the series was agreat challenge to all involved, especiallyfor the production houses KobraFilm and Adrenalin, but also for B92which although being a young nationaltelevision channel had enoughSrdjan TODOROVIC, Actorcourage to dive into such a long anduncompromising TV series. Althoughnone of us had any experience in TVseries production, we “learnt thegenre” - a long feature TV series - andwe will definitely continue our work.Have you planned any promotional andsales activities regarding the Westernand Eastern markets?We started series promotion andsales back in Cannes in 2007. Wewent there with an hour-and-a-halfpilot episode and presented it to 98companies from 45 countries, withoutany prejudice regarding their geographicalposition. We would like theseries to be broadcast on theWestern TV market as well, primarilybecause of the authentic director’sDragan BJELOGRLIC, Actor/Producer,Branimir BRSTINA, Actorsignature which marks the wholeseries. Thus, the series director challengesthe prevailing opinion thattoday’s programming is anything butart. We have shown that art may bepresent only in the greatest and bestTV productions, regardless of theirorigin.Did the production pay off financially?If you ask me whether it wasworth investing so much and get ahigh-budget production, the answer ispositive. This is the very reason whyour efforts paid off and why the serieswas well received across the borderas well.Did you expect that the serieswould become such a success?Yes, we expected such success,because all of us who worked on theseries simply adored every aspect of it– its characters, their funny dialogue,fine music and excellent photography.As edited footages started coming in,we were gradually falling in love withthe series, as did the viewers whenthey saw the first episodes. It is fair tosay that we did not expect such a hugeaudience share during premierebroadcasting, because we thoughtthey would need more time to getused to this type of programming.Consequently, our surprise was evengreater.What are the estimates of yourproduction house regarding the audienceshare?We are very satisfied. The shareof B92’s audience tripled at the hourwhen the series was broadcast. Asfor other countries, the audienceshare beats all the records.How difficult it was to make such atechnically high-quality series inSerbia?It was not difficult, but it wasexpensive. Our people are professionalsand they could do everything thatwas required from them. The serieswas produced in HD, yet in terms ofsensibility, it more resembles a featurefilm. In visual terms it is a truepearl. }28 DISCOP LINK • #14 • JUNE 08

digital CEELIFE AFTER ANALOGUEBy Bob Jenkins, Chris Dziadul, Sinisa Isakov and CEE Media JournalistNetwork [Lillia Goleminova, Andrej Matijasevic, Istvan Bodzsoni, Piotr Socha,Dejan Perinacz]Between now and 2012, or in the case of Poland 2014, the DISCOP EASTregion will undergo one of the biggest changes to its broadcastingstructure in history. The region will, along with the rest of Europe – go digital!DISCOP.Link believes that such afundamental change in the broadcastingenvironment it serves de -serves a major examination, so as toprovide our readers with a completeunderstanding of:A key territory break down of thecurrent state of transition, and thetime line for future developments.Who are the key players?What does the switchover meanfor broadcasters, platforms andcontent suppliers?What are the commercial,legal, and technical issues?We begin with an overview bythe highly respected journalistChris Dziadul, followed by a moredetailed look at some of theregion’s key markets, and finally,we will conclude with a detailedlook at the technical issues byrespected broadcast engineerSinisa Isakov.The transition to digital broadcastingis now well under way inCentral and Eastern Europe,bringing with it the launch of amultitude of new channels. Thetrend is arguably most noticeablein some of the region’s largestmarkets and driven by developmentsin DTH, cable and IPTVrather than terrestrial sectors.In Poland, for instance, thelaunch of the new generation DTHplatform “n” in October 2006introduced HDTV services intothe country. Since then, the rivalplatforms Cyfrowy Polsat andCyfra+ have also added HD channelsto their offers, as have thefour leading cable operators UPC,Vectra, Multi media Polska andAster and a little-known alternativetelco named Inotel.DTH also provided the springboardfor HDTV in Russia, with thelong-established NTV-Plus giving adebut to three channels in April 2007.Meanwhile in Hungary, the newlylaunched and aptly named DTH platformHello HD made the first channelsin the format available to the country’sviewers in May 2008.Digital DTH broadcasting is generallybooming in Central and EasternEurope, with around 30 platformsnow serving the region. The highestnumber are found in Romania (five),followed by Poland, Russia, The CzechRepublic and Slovakia (three each),and rather than the market consolidating,more are likely to be launchedin the near future.It is largely thanks to these platformsthat viewers are beingintroduced to digital TV services,and their take-up to datehas been impressive. Digi TV,for instance, is owned by theRomanian company RCS/ RDSand has in the region 2 millionsubscribers in six countries,while the three Polish platformshave a combined total ofaround 3.6 million customers.The three Russian plat formsNTV-Plus, Tricolor and Orion-Express are meanwhilebelieved to be watched in atleast 3.5 million homes.Significantly, several ofthese platforms are more thanjust channel distributors andalso produce their own content.NTV-Plus, for instance,has around twelve of its ownmostly sports and movie channelsand offers them to otherRussian pay-TV operators. InPoland, the national commercialbroadcasters TVN andPolsat, the respective sistercompanies of n and CyfrowyPolsat, both have a growingportfolio of thematic brandedContinued on page 3430 DISCOP LINK • #14 • JUNE 08

Continued from page 30channels, all of which are distributedby the platforms and some, such asthe highly popular news-basedTVN24, also by most cable operators.While all the DTH platforms inCentral and Eastern Europe are digital,digital cable services are still farfrom universal across the region.However, with Liberty Global’s UPChaving finally introduced digital productsin its two largest markets,Hungary and Poland in April/May thisyear, most if not all the leading operatorsnow offer them.Furthermore, while the transitionto digital terrestrial broadcasting isproving to be a far from straightforwardprocess, progress is certainlybeing made in some markets. In theCzech Republic, for instance, a limitedDTT service was launched in PragueOctober 2005 and has since beenexpanded both in terms of contentand coverage, being now also availablein Brno, Ostrava, Usta nadLabem and Domazlice. The last, whichborders on Germany, in fact becamethe first part of the country, andindeed Central and Eastern Europe, togo completely digital when it switchedoff its analogue transmitters in August2007.The Czech Republic’s adoption ofDTT would have been even quicker hadthere not been a dispute over digitalTV channel licence awards. This hasnow been resolved, and at least twonew digital channels – Z1 and TVBarrandov – are expected to maketheir debuts this summer.DTT is now also a reality in theBaltic Republics, with full services upand running in both Estonia andLithuania. In the former, the platformin question (ZUUMtv) was initially apay-TV operation but has since introducedfree-to-air (FTA) services inorder to increase subscriber numbers.Interestingly, these include therecently launched Kalev Sport,Estonia’s first locally produced sportschannel.Elsewhere, Hungary is finallyexpected to launch a full DTT operationeither later this year or in early2009, having called a licence tenderfor five DVB-T multiplexes in March.Poland, however, is still probably atleast a year away from a commercialDTT launch, while Russia has a strategyin place that envisages analogueswitch off at a still distant 2015, asopposed to the EU target of 2012.While the impact IPTV serviceshave had in Central and EasternEurope to date has been minimal,there is no doubt that they have provideda boost for the content sector.Russia’s Stream TV, which is operatedby Comstar-UTS and the region’s bestperforming with 130,000 subscrib -ers in Moscow in Q1 2008, offers nofewer than 10 themed packages ofmostly Russian channels and willLevente MALNAY, General Manager,MTVN Hungaryshortly be adding HD services to itsline-up.Meanwhile in The Czech Republic,the IPTV market is dominated by O2TV, which is operated by the incumbenttelco Telefónica O2 and currentlyhas just over 90,000 subscribers. Apioneering service, it offers threebasic and 13 additional thematic programmepackages, as well as suchservices as HBO Digital.Although digital broadcastingclear ly presents huge opportunitiesfor international channels to reachnew audiences, it also acts as a catalystfor the production of more localcontent, and not just in the largestmarkets.Equally importantly, a growingnumber of broadcasters – both publicand commercial - across the regiondigital CEEare launching proprietary channels fordistribution on digital platforms, someof which are essentially their own. Thisis already true in the case of Polsat(Cyfrowy Polsat) and TVN (n) in Polandand NTV (NTV-Plus) in Russia and maysoon also apply to the Polish publicbroadcaster TVP. It has a portfolio ofseven channels and is highly likely tolaunch a DTH platform, operated jointlywith SES-Astra, either later this yearor in 2009.Most countries in Central andEastern Europe still have some way togo before analogue switch-off. Thetransition to digital is neverthelessalready having a hugely beneficialeffect on content available to viewersand this will certainly continue.TAKING A CLOSER LOOKSo far, we have dealt with thequestion of the digital switchover in abroad, general way, here. We take acloser look at some of the larger countriesin the region and examine howfar they have travelled along the longroad to switchover.BULGARIAThe EU directive that digitalswitchover must be effected by theend of 2012 has further complicatedan already confused Bulgarian broadcastinglandscape. The Council ForElectronic Media (CEM), Bulgaria’sbroadcasting regulatory body, hadbeen delaying the announcement ofbids for new terrestrial licenses forthe past five years, and, as soon asthey did so, Bulgaria’s two largestbroadcasters, bTV and Nova, immediatelydemanded a suspension of theprocess in order to facilitate theorganisation of the move to digital.This suspension was, reluctantly,granted by the CEM when in April itdecided to halt the process in sixmajor cities including the capital Sofia.The organisation of the digitalswitchover in Bulgaria has beendelayed and confused by an overlyoppressive bureaucracy, a lack of coordinationbetween relevant institutions,and pressure from lobby groupswith differing agendas. A date has,however, now been set for the middleof this year for the process to beginwith television, and Bulgarian nationalradio has already started digital trialsusing DRM technology.34 DISCOP LINK • #14 • JUNE 08

On a more positive note Bulgariaalready fully complies with Euro-standardsand has begun to successfullyrealise the National Plan for Ter -restrial Digital Broadcast, DVB-TCROATIAMuch has been said about theswitch to digital in Croatia, althoughvery little appears to have actuallybeen done. If statements from thosein authority, such as the recent pronouncementby Vanja Sutic the generalmanger of Croatia’s state broadcasterHRT are to be believed thecountry is well placed to enact thechange, and, it must be acknowledged,some regions of the country,such as Istra, have already switchedoff analogue transmissions. MrSutic’s pledge that HRT plus, currentlytransmitted via satellite, will, duringthe course of 2008, become a thirdterrestrial channel broadcast digitally,should provide a further boost to theprocess.HUNGARYLevente Malnay, general managerMTV Networks Hungary is sure of oneor two things about the country’sforthcoming switch to digital. Firstly,he is sure that, “it is early days for thedigital switchover in Hungary, andnobody knows for sure what is goingto happen,” and, secondly, that, “theswitchover will take place at the latestin 2012.”The government has asked forbids to run the DTT service, and twohave been received. One fromAntenna Hungaria, a subsidiary ofFrench DTT operator TDF, and theother from a Slovakian companyalready operating DTT platforms inSlovakia and The Czech Republic.The real reason for Malnay’s cautionis the experience of DTT in someother European countries, especiallyGermany. “I recently attended a conferencehere in Budapest,” reportsMalnay and one of the key presentationswas given by ProSieben Sat1.The whole focus of their presentationwas what a disaster the launch of DTTin Germany had been, and I have tosay that I think its success in Hungaryis far from a foregone conclusion.”And it seems that Malnay has goodreason for his reservations, because,as he points out, “currently, over 70%Izabella WILEY, General Manager,MTVN Polandof Hungarian households are multichannel.So, this means that eitherDTT will have to attract some of thesehouseholds away from cable andsatellite, or else it will have to exist onno more than 30% of the market.Nonetheless, many people arebullish about DTT’s prospects in theHungarian market, and there are predictionsthat, over the next threeyears up to thirty new channels couldbe launched in the country. Which, inlight of the twenty that have eitheralready been launched in the pastyear, or at least announced seems likea conservative figure.At the time of the switchover,there will be three multiplexes available.The first and the third will haveroughly the same coverage andcapacity. The law sys that the first multiplexmust carry the existing publicservice broadcasters, and must alsooffer carriage to the two terrestrialgeneral entertainment channels, TV2and RTL.The media law does not specifywhat the third multiplex must carry,although it does say that any bidderfor the second that includes mobilecontent in its bid will gain extra points,and so the expectation is that the secondmultiplex will be used for mobile.The future is further complicatedby the fact that, by 2012, the latestdate when analogue will be switchedoff, there will be a further two multiplexesavailable.digital CEEThe future will start to get a littleclearer in July when the winner of theinitial DTT licenses will be announced,and their plans made public.POLANDAll the relevant parties in Poland,the broadcasters and the regulators,are agreed that the country’s move todigital switchover should be speededup. What they cannot agree on is whoshould be responsible for the task,how it should be financed, or what thefirst multiplexes should carry. Such isthe depth of disagreement and confusionthat Poland is the only member ofthe EU to be given dispensation to gobeyond the 2012 date for switchingoff the analogue signal. This does nothave to happen in Poland until 2014,although the first terrestrial digitalmultiplex is scheduled to start operatingin 2009, with a total of eight multiplexesoperational by the time analogueis finally switched off.Although there has been muchdebate as to which channels shouldget carriage on the first multiplex,Izabella Wiley, general manger andvice-president, MTV Networks Polskasays, “there are also serious economicissues and questions over the qualityof the service.” As an illustration ofthe sort of economic issues involved,Wiley quotes Jan Wejchert, head ofthe ITI group, owners of TVN, as sayingthe switch will cost his company asmuch as the establishment of the DTHplatform, n. Or around €65 million.Even so, Wiley believes the abilitydigital will give broadcasters to reachlarger audiences and to offer thoseaudiences more diverse content, aswell as additional services such asInternet, phone, TVOD and others willbe worth the cost of the switch. And,she believes, with a decoder priced ataround €85, take up will be good.ROMANIAAs we all know, the transition todigital broadcasting throughout Eu ro -pean Union must be done by the endof 2012. For that reason, in Romaniathey are working very hard on thatissue. Most TV channels with nationalcoverage, which includes publicbroad casting service naturally, makespart of its profit in digital format.Despite that fact, because the transmissionof the signal and programmeis performed terrestrially or via cable36 DISCOP LINK • #14 • JUNE 08

digital CEEViviane REDING, The EU Commissioner for Information, Society and the Mediaproviders, the reception of digitallytransmitted content is not availablefor majority of spectators. The reasonfor this is that they do not have specialtuners necessary for the reception ofdigitally transmitted signal, and vastmajority doesn’t even have adequateTV receivers that could read digitalsignal. A significant part of the audience,mostly from villages and remoteparts of Romania, where the terrestrialreception is difficult and whereintroducing a cable provider is a veryexpensive option, have the possibilityto receive the signal via satellite antennas.In those cases, they must havetuners and adequate TV receivers,just as it is the case with digital broadcasting.TECHNICAL OVERVIEWRenowned broadcast engineerSinisa Isakov explains some of thetechnical issues surrounding the digitalswitchover.The many benefits of switching toDigital Terrestrial Television (DTT)have been well understood for sometime.Commercially, the most importantbenefit DTT offers is greater efficiencyin the utilisation of the frequencyspectrum. Utilising DTT, instead ofone analogue channel means between4 and 6 digital channels may be broadcastsimultaneously in its place. DTTalso gives higher picture and soundquality as well as more stable receptionregardless of weather conditions.With digital transmission large areascan be reached at the same frequency,so other frequencies remain availableto new users, such as local andregional TV stations. Following theanalogue switch off, a part of thespectrum may be granted to other televisionsor mobile TV operators aswell.But, as with lunches, there is nosuch thing as a free switchover.Switching from analogue to digitalbroadcasting is a relatively complexprocedure. In addition to the decisionof the International Telecommunicat -ion Union (ITU) to end the protection ofanalogue broadcasting in Europe from2015, and the EU directive requiringmember states to switch analogue offby the end of 2012, the 2006 ITUInternational Frequency Planning Con -ference in Geneva also resulted in anew agreement, GE06, to deployDVB-T. This agreement was signed bymore than 100 countries from Eu -rope, Africa and the Middle East.Countries only now joining the digitalswitchover have gained one advantageover the early adopters, and thatis HDTV, which is now available on anumber of the newer digital channels.Another spur to a speedyswitchover is the cost of simulcasting.For terrestrial channels, this is veryhigh and therefore provides a realimperative to make the switchoverperiod as short as possible.The move to digital is, however,being speeded up even ahead of thearrival of DTT by the increasing penetrationof services such as cable,satellite, IPTV and DV, all of which aremaking ‘digital’ a normal part of everydaylife for an increasingly large percentageof the population. Additionally,LCD televisions are becoming cheaper,and consequently, more common.Many different companies are makingthese sets and the resulting competitionis finally driving down costs. Therange of sets is also improving withlarge screens of over 60 inches (150cm) available alongside smallerscreens suitable for second or thirdhomes.Also, as downloads from the Weband mobile content, as well as streamingbecome ever more common thepublic is being indirectly prepared forthe introduction of DTT, and, when itarrives, will expect more from thetechnology than merely a stable,noise-free video.Digital video compression codecsare also continually being improved,so the moment when the traditionalMPEG-2 codec will see its true competitoris soon to come. Translatedinto the language of broadcasters andviewers alike that means that they aregoing to get additional HDTV channels,additional multimedia contentand additional features.Of course, irrespective of theadvantages offered by DTT and otherdigital technologies, there will alwaysbe some who are satisfied with theirexisting services, and who do not wantto invest in a new DVB receiver. Inorder to shorten the length of theswitchover period it may be necessaryto subsidise the supply of the cheapestform of STB to these people, aswas recently done in the Istra regionof Croatia.But, for all of the advancesalready made, much more can beachieved. At the 2008 DCB WorldConference in Budapest VivianeReding, The EU commissioner forinformation, society and the media,proposed the EU adopt a coherentframework with common objectivesbetween member states. This,believes commissioner Reding, willallow greater transmission capacity,protection against interference andoffer economies of scale across thewhole single market. Her messagewas clear; we can do more with thesame spectrum if we co-operate! }38 DISCOP LINK • #14 • JUNE 08

portraitA GOOD FRIEND: ANDREW SEBESTYENBy Bob JenkinsAndrew Sebestyen, CEO of Profour Film is not only ‘A Good Friend’, but in thetruest possible sense he is also a prodigal son. Andrew was born inHungary, and is very proud of his Hungarian roots, but, despite this, spentmany years working in Australia in communication and marketing.A graduate in theatre directing Andrew always had a hankering to return notonly to a more creative line of work, but also to his native Hungary.In 2001, as he saw the content marketblossom, not only in Hungary, butalso in the rest of the DISCOP region,he decided the time was ripe and setup Profour Film.“When we began in 2001,” re -calls Andrew, “I guess we only soldaround 100 hours in our first year,and all of that was one-off’s, mainlyfeature films and single documentaries,indeed, we didn’t sell our firstseries for two and a half years whenwe finally sold twenty-six half-hours ofSKIPPY to Duna TV. There was,”admits Andrew, “a very big partythen!”Now, such a sale would hardly benoticed at Profour Film. “These days,”reveals Andrew, “we representaround twenty-three clients, includingsome of the biggest names in the business,such as, FremantleMedia, All3-Media, RDF, Scripps Networks, Targetand Beyond, and often conclude packagesin the region of 200 hours.” Andhe goes on to reveal to DISCOP.Link hislatest, and most impressive signing,“we have,” he beames, “just signed, inassociation with Select 86, the representationof Universal in Hungary forDVD.” This is, in point of fact, the firsttime in over a decade that a Hollywoodmajor has appointed a representativeof any kind in Hungary, and certainlyrepresents a major coup for Andrewand his Profour team.Andrew has no doubt as to thereason for Profour’s success. “Thereason so many companies want towork with us, is that we can provideresources and attention to a relativelysmall number of markets, that individually,they can’t.” Illustrating his point,he goes onto explain that, “around70% of all Profour’s sales are made inHungary, although, we also do somebusiness in The Czech Republic,Slovakia, Romania and Croatia, with alittle, very small amount of activity inPoland.” Expanding on this theme,Andrew points out that, “even at thevery largest company, there will onlybe one executive with responsibility forthe whole of CEE and very often thewhole of Europe, or at least with additionalresponsibilities for the MiddleEast as well. Now, that’s a lot of countriesand a lot of TV stations.” And, ashe goes on to point out, “we are inHungary, and we are in daily contactwith the stations which we visit atleast once a week, no company, nomatter what its size, has the re -sources to make that sort of commitment.The result,” he concludes, “isthat not only are we more efficient,saving our clients both time andmoney, but we also close deals fasterfor them as well.”Given this deep involvement in theHungarian market it would surelycome as no surprise to anyone thatAndrew is extremely well placed toidentify emerging market trends.“I am,” he reveals, “very excited bythe arrival of digital, which will open upmany new market opportunities. Thescale of this new opportunity,” he continues,“is well illustrated by the factthat between September of last year,and this coming summer over twentynew cabsat channels have eitheropened, or announced that they willopen.” And, Andrew believes, this isonly the beginning, “I think,” he opines,“that we will see many more peopleopening niche channels and looking tobuild a decent distribution base withas many platforms as possible, beforelooking to sell out to a larger player.The pace of change is really the keytrend in Hungary at the moment,” isAndrew’s firm conviction, and he seesit manifesting itself in the nature of thecontent as well as in content business.“There is,” he observes, “agrowing taste for fast programming.This is especially true of thrillers andaction series, but it is even starting tobe seen in wildlife, where there is agrowing demand for very spectacularfootage and fast paced editing.”And, Andrew also identifies, “acur rent programme trend towardsthe return of old favourites, sometimesas much as ten or fifteen yearsold, and the eternal popularity of medicalseries such as ER and GREY’SANATOMY.”Although Andrew loves working inthe DISCOP region because, “it is adynamic and fast growing area, andworking in the field of programmingallows me to indulge my creative spiritas well,” there are aspects of theregional content business, which hefeels to be in need of attention. InHungary right now, children’s is verypoorly served. There really is very littlein the way of kids’ programming, andwhat does exist, is driven purely by ratings.So, there is some Nintendo programming,but nothing educational,and very little for pre-school.”Profour Film are doing their bestto counter this dearth and will, at DIS-COP EAST 08 be offering DVD and TVrights to their film, ELEPHANT TALES,which received its theatrical releaselast year, and which tells the tale oftwo orphaned elephants who set off insearch of their dead mother.But, de spite this carp, it is clearthat, for Andrew Sebestyen – it’s greatto be home! }40 DISCOP LINK • #14 • JUNE 08

portraitA GOOD FRIEND: REEMA PATELBy Bob JenkinsAfter many years in the content distribution business, many of them spentdealing with the DISCOP EAST region, iD’s Reema Patel is looking forward toa future of competitive growth, and all the challenges that brings with it.Reema Patel has been in the televisionbusiness for over fifteenyears. Currently sales director at theUK’s iD Distribution responsible for itsportfolio of formats and completedprogramming in factual, light entertainment,reality, lifestyle documentariesand current affairs includingtitles such as THE REAL HUSTLE,PLATINUM WEDDINGS and WILL’SLOVE LIFE, she was previously head ofsales at 3DD. But her experience ofselling into the territories of Centraland Eastern Europe extends furtherback still to her time at Disney’s televisionsales arm Buena Vista which shejoined in 1999 following time atPrimetime Television and ITEL.“One of the biggest changes I haveseen during my time dealing withCentral and Eastern Europe,” shereflects, “is that the region is nolonger seen being marginal to overallinternational sales. It is now verymuch a region that all the major playersare taking seriously and in whichthey want a well defined presence.Undoubtedly,” she continues, “this is areflection of the economic growth inthe region, especially in major territoriessuch as Poland, Hungary andRomania.”But the emergence of the regionas an increasingly important one onthe international contentstage, which Reema identifies,is, she believes, veryfar from over. “I believe thatthe next big wave of opportunity,”she suggests, “willbe the explosion of digital,and especially thematic,channels. In Poland,” shepoints out, “TVN has open -ed a boutique of themedchannels, as has Red Mediain Russia, and this is aprocess that is only going toescalate in the region in the future.”And, as she is quick to point out, “thisonly offers increased opportunities fora company such as iD with it hugeportfolio of lifestyle programming.”However, as is always the case asmarkets develop, the competition getsmore fierce, and the demands moreonerous. “Buyers in the region,”reports Reema, “are not only gettingmore discerning, but they are alsogetting more demanding. No one isnow looking to buy just broadcastrights. They all want a range of rightsPLATINUM WEDDINGSReema PATEL, Sales Director,iD Distributionincluding VOD and broadband. This,”in Reema’s view, “is inevitable since,as the number of channels increasethe margins at each will decrease andso buyers are forced to look for profitcentres elsewhere.” In these circumstancesall rights holders will look tomake the deals as short as possibleand also non exclusive, but, as Reemaruefully accepts, “the competition thatthere is in the region means that buyersare increasingly looking for exclusiverights and longer licenses.”Nonetheless, Reema’s enthusiasmfor the opportunities that exist inthe region is difficult to dampen.“There are also massive opportunities,”she reports, “for HD. Many ofthe new thematic channels that I mentionedearlier, are exclusively HD, andfor a company such as iD with a significantlibrary of HD content, this alsorepresents a great opportunity.”Another challenge of doing businessin the region, she identifies, butone that Reema also sees as a hugelyenjoyable challenge is, “the diversity ofthe region. It is,” she insists, “a verydiverse group of cultures, and thismeans that what will work in one culturewill not work in another. But that’snot the end of it, because, especiallywith the emergence of these nichechannels, that is something that isevolving right now often inways that are very interesting.”It is clear that, after allher years’ experience in theregion, Reema Patel’senthus iasm for workinghere has not diminished oneiota and that she is greatlylooking forward to the futurein the DISCOP EAST territoriesand all the opportunityshe clearly believes thatfuture represents. }42 DISCOP LINK • #14 • JUNE 08

FOOTAGE THAT IS EASY TO FIND AND DELIVEREDINSTANTLY AND AT NO EXTRA COST: AKAMEDIA ISDELIVERING TOMORROW’S DIGITAL BENEFITS TODAYBy Bob JenkinsportraitFrance’s Akamedia began trading a little over three years ago, but already itis delivering huge cost benefits to a growing number of clients worldwide.Akamedia is a new company with anew technology, and both are veryexciting. The company’s proprietarytechnology allows it to offer footage indigital file form, and all available from aweb site (www.newspusher.com).“This,” says CEO Lionel Faucher,“offers many advantages over themore traditional linear offering providedby companies such as Reuters, themost significant of which, is cost. Weare very much cheap er than the moretraditional agencies.” The biggest singlereason for this cost saving is theabsence of ancillary costs such assatellite time, tape, tape conversionand shipping. “A client can just visitour web site,” explains Faucher, “makea selection from the clips on offer, anddownload it. Then it is there for themto use as they wish. Of course,” he isquick to add, “they still have to pay aroyalty for its use, but the savings onthe other costs is very significant tomany clients.”Although Akamedia is five yearsold, it spent the first two years of itsexistence building its own platforms,and did not formally start trading untilearly 2005. It operates a businessmodel which, says Faucher, “is verysimilar to that operated by photoagencies, owners of the content placeit on the Akamedia web site and thecompany charges a commission on allthe sales it makes.Many big name companiesalready use the service includingCanal Plus at this year’s Cannes FilmFestival, who used the Akamedia serviceto deliver to clients unable, orunwilling to take delivery of Festivalfootage by either satellite or tape.“And,” points out Faucher, “it is notnecessarily only the glamorous eventsLionel FAUCHER, CEO, Akamediasuch as Cannes that provide footagefor Akamedia’s service. Many broadcasters,“he asserts, “produce foot -age really only for local consumptionwithin their own country, and oftenthis footage will be of use to otherbroadcasters for a variety of differentuses, provided they can find it easilyand access it easily and cheaply.”“Very often,” says Faucher, “thesewill be smaller cabsat channels whodon’t want to be showing nothing butold imports that have run a hundredtimes before in their markets, but whoalso don’t have the budgets for majorproductions of their own.”He cites as an example of this theRussian music channel A1, which,says Faucher, “was delighted to beable to take delivery of their chosenfootage in a digital file, instead of atape, which would have had to beingested into their system at an extracost. Akamedia’s system,” he goeson, “saves our clients both time andmoney.”But it should not be thought thatthe only clients that can benefit fromwhat Akamedia has on offer are televisionchannels. “Our business,” revealsFaucher, “is split approximately halfand half between broadcast on theone hand, and the Internet and mobileon the other. For most of the operatorsin the Internet and mobile feedsthe savings and the fact that we deliverin digital files, represents the differencebetween being able to make aprogramme or not.”Nor are these the only advantagesthe system offers. “It is important toalways remember,” stresses Faucher,“that, unlike a more traditional servicesuch as Reuters, ours is not a linearservice, and therefore if a producerdecides that they need something afew days, or even weeks after theevent, it is as easy for them to accesson Akamedia as it would have been onthe day it happened. Which is not trueof any linear service.”Faucher’s background is in printmedia where he worked on a Frenchweekly news magazine, and he seesclose parallels with what happened inthat business when digital arrived, andwhat will happen in parallel sectors ofthe audiovisual business. “While it istrue that digitalisation cost a lot ofpeople their jobs,” he accepts, “it alsoreduced the production time of themagazine from forty-eight hours tojust six, and I am certain that thesenew digital technologies will havemuch the same impact in the audiovisualsector.”Currently, Akamedia only has oneclient in Central and Eastern Europe,Czech Television, that country’s statebroadcaster. But the company hasappointed an agent covering Russia,Romania and Bulgaria, and LionelFaucher for one, is quite convincedthat it will become the agent of somevery considerable change, not only inthe DISCOP East region, but throughoutthe audio-visual content world. }44 DISCOP LINK • #14 • JUNE 08

DREAM ON DREAMS OF PROFITABLENEW OPPORTUNITIES IN CEEBy Bob JenkinsportraitFrench branding agency Dream On has just completed a total rebrand of theCzech broadcaster Prima, and now thinks that the arrival of many newdigital channels into an area with no tradition of branding expertise, offers agolden opportunity.Recently French design agency,Dream On, completed its firstmajor rebranding of a broadcaster inthe CEE area, when the finished workon rebranding the Czech broadcasterPrima.The job took the Dream On teamlonger to complete than might normallyhave been the case working on asimilar project in the West. In part,says head of the agency’s televisiondesign department, Juliette Clerc,“this was because it was such a big jobinvolving not just the on air look, butalso all the company’s stationary, printadvertising and even the look and styleof its head office.”But the challenge presented tothe Dream On team wasn’t just one ofsize. “Prima had a very old fashionedlook and feel about,” recalls Clerc,“they had not rebranded for over sixyears and it showed in what was,frankly, a very outdated look. Also,Prima are competing against Novawhich is by far and away the biggeststation in The Czech Republic, and,although Prima has some very strongprogramming they were just not communicatingthat to their audience.”One of the solutions introduced bythe French design house was the re -design of Prima’s logo, which Clercdescribes as having been, “very weakand confused”. The new one is design -ed in the shape of a screen giving it agreat flexibility. “It can,” boasts Clerc,“be a racing track or the red carpet ata Cannes premier, just depending onwhat is required.” Another feature ofthe rebranding was the use Dream Onmade of Prima’s key presenters andanchors, which was something thatthe station was very keen on itself.Juliette CLERC, Head of the TelevisionDesign Department, Dream OnAlthough Clerc was thrilled withthe experience of working in TheCzech Republic, “the crews and equipmentare every bit as good as anythingyou’d find in the West – only cheaper,”she enthuses, adding, “we wouldshoot some days for fourteen or sixteenhours, which would just neverhappen in France, so not only were wegetting two days for the price of one,but the one day cost us less than itwould have in France as well! Despitethis significant advantage, there wereother challenges. “There really is verylittle history of branding in CEE,” ex -plains Clerc, “which, given the recenthistory of communism is understandable,however it does mean that makinga station in the region look like oneof the big Western broadcasters isthat much more difficult.”While this might have made thejob in hand more challenging, it also,believes Clerc, “provides the basis fora lot of opportunity.” This optimism isfounded, not only on the absence ofbranding experience and expertise inthe region, but also on the hugedemand that the arrival of digital is setto unleash.“We also recently pitched for amajor rebranding contract with RTLKlub in the region,” reveals Clerc, “butwe didn’t get it,” she goes on, “partlybecause of a lack of understanding ofthe region. But not one of the companiesthat were pitching for the workwas from the region. And,” she continues,“if there is a single reputablebranding agency with a solid trackrecord in CEE, then I have not heard ofit.” Add to this lack of local expertisethe boom in demand that the arrival ofmany new digital channels will certainlycreate, and Clerc sees a significantopportunity for Western companies,one on which Dream On is well placedto capitalise.“We have significant experience,having been in existence for over tenyears,” explains Clerc, going on topoint out that, “we are also one of thefew agencies that can undertake allbranding exercises in the round, inhouse. For example,” she expands,“not only do we have a separatedepartment that handles all brandingin print and outdoor displays, but wealso have a division that handlesevents and promotional activities,which is an area we handle exclusivelyfor Renault for example.”There is also, Clerc accepts, anatural logic to Dream On lookingtowards CEE. “We have,” she pointsout, “been working with some of thebiggest names in Europe and theMiddle East for most of our ten yearplus existence and so a move into anew area, especially one with as muchpotential for our business as CEE, is anatural progression for us.” }50 DISCOP LINK • #14 • JUNE 08

focus on CEEFAST-GROWINGAREABy Lillia Goleminova, Andrej Matijasevic, Rastislav Durman, Dejan Perinacz,Samo Kolar, Bilge EserWill thematic channels becomemain players in the TV businessgame in the future? Figures in the lastyear would back up such an opinion.According to BASIC LEAD, about 500thematic TV channels are now in operationin the 33 countries that BASICLEAD cover. The CEE Media JournalistNetwork presents just a small percentageof the thematic channels inCEE.BULGARIA: A LARGENUMBER OF TV CHANNELSGiven the fact that there is a largenumber of TV channels, in general, inBulgaria, it is quite understandablethat there are many themathic channelsas well. Some of them are quiteoriginal – such as VTK – the MilitaryChannel. VTK is a kind of a state channelbecause it is a part of the structureof the Ministry of Internal Affairsand it broadcasts films, documentariesand reality formats that arerelated to that particular sector. Thissituation is, however, atypical.A bundle of thematic channelshave been developed by the owners ofthe SevenDays network - here we seeZdrave TV (Health TV – when translated,HipHop TV, Vyara TV (Faith TV) andGypsy TV. The name of each of thesechannels describes their themathicspecifics. They are definitely all lowbudgetchannels with no capacity forinternational cooperation at thisstage.Only Health TV might be consideredas an exception to some extent,because its technical eqiupment is ofsuch a high-quality, as are the studiosused. Health TV could offer some possibilitiesfor exchange or trans-boarderregional production.Travel TV is the best example of a100% themathic channel. We havealready presented this channel on DIS-COP pages, so I will only stress thefact that it is now owned entirely by aBulgarian company and that Travel TVrealises many co-productions not onlyin the Balkan region and CEE (wherethey aim to expand the exhange of programsand look for projects that mightbe shot on location in two countriesusing a crew that is on the spot andthus to diminish the production coststo a minimum) but also in SouthAmerica and all over Europe. Despitebeing a relatively small company,Travel TV compensates by excelling inprojects that require a fast reactionand short deadlines. They also provideextremely experienced specialist cameramenand screen-writers as well asdubbing into more than 30 languages.There is also one entirely sportsbasedTV channel in Bulgaria (apartfrom Eurosport) – Ring TV. It broadcastssport 24-hours a day – includingboth professional and amateur as wellas “urban” sport. They are trying tobalance world-class events in soccer,tennis and so on with small domestictournaments around Bulgaria and inthe region. Ring TV is slowly gainingspeed so it might be considered thefuture Bulgarian partner in the field ofsports in CEE.Continued on page 5652 DISCOP LINK • #14 • JUNE 08

focus on CEEContinued from page 52Music channels lead the parade ofTV channels in Bulgaria when it comesto variety and number. Balkanika TV,for instance, is a somewhat uniquechannel in the Bulgarian, Balkan andeven in the world market. It focuses oninforming the viewers about Balkanmusic, art and culture by presentingthe best of all Balkan cultures –Albania, Bosnia and Herzegovina,Bulgaria, Greece, Serbia, Macedonia,Romania, Slovenia, Montenegro,Croatia and Turkey. It is a part of theFan TV media group and by default,was created for establishing links andimplementing regional co-productions.Dragan CUCA, Owner and Founder, Kapital NetworkCROATIA: KAPITAL NETWORK– BUSINESS ISSUES FOR THEREGIONAL MARKETKapital Network is the first businesschannel in Croatia and in theregion as a whole. Its programmingcan be watched on cable television viacable and HT's (Hrvatski Telekom) MaxTV Internet service. Since earlyOctober 2007, the channel hasbroadcast also via the Atlantic Bird 3satellite, and being “free-to-air” it isalso available to other cable operatorsin Europe and in the region. The companybehind the channel is alsoengaged in TV production. On theoccasion of the second anniversary ofthe inaugural broadcast, DraganCuca, the channel's owner andfounder, tells us that he and his teamare planning to establish the strong -est business channel in the region.Its operation is exclusively basedon the production and broadcasting ofbusiness information; economic newsfrom countries in the region is broadcastevery hour. This TV channel alsobroadcasts weekly magazines coveringeconomic issues, interviews withbusinessmen from the region, andservice information.As for weekly magazines, Cucaunderlines their co-operation withmany broadcasters and productioncompanies in the region, with whomthey exchange content. The programmingschedule of Kapital Networkincludes daily reports from theBelgrade Stock Exchange; a weeklymagazine titled MONEY TALK producedby Enter TV, Belgrade; andMONEY FLOW, produced by ATV,Banja Luka. They have been co-operatingfrom the very beginning with TVHayat, Sarajevo, whereas MontenaTV is responsible for the coverage ofthe Montenegro economy.At Kapital Network they haveannounced the acquisition of somenew formats from Atlas television,Podgorica, with whom they haveestablished friendly relations, sincethey are also focussing their programmingtoward business issues. Thechannel also co-operates with theSlovenian Info TV, a thematic channelwhich exclusively broadcasts newsevery 15 minutes.The Belgrade production houseInfobiro is their partner channel supplyingthem with all the relevant informationfrom Serbia, BiH, FYR Mace -donia, Vojvodina and Kosovo on a dailybasis. And the circle is graduallyexpanding beyond the territory of theformer Yugoslavia.As for the co-operation with foreignbroadcasters, they have been cooperatingfrom the very beginning withThe Voice of America (VoA) andDeutsche Welle. They acquire fromthem scientific-documentary formatsand business programming whichthey translate into Croatian prior tobroadcast. In the near future, thatprogramme segment will be expandedthrough co-operation with TV stationsfrom Russia, Austria and some neighbouringcountries. But, they promisethat the audience will be informedabout that before the broadcast of thenew autumn programme schedule.At Kapital network they alsounderline how proud they are with thegrowing portion of the programmingproduced outside Croatia. They treatevery issue based on its significance inglobal or regional terms and notbased on its effect on the domesticeconomy.Therefore, very soon they will beable get information about the situationon the stock markets in theregion, because this is what the viewersof Kapital Network expect to beinformed about.A lot of production energy hasalso been invested into covering B-to-Bconferences, both by live broadcastingand under the auspices of themedia. By doing so, Kapital Networkenables the wider public to learn more56 DISCOP LINK • #14 • JUNE 08

about the trends in the business worldespecially when those very businessconferences and meetings are mostoften held far from the public eye.The founder and co-owner ofKapital Network does not want to disclosetheir annual budget assigned forprogramme acquisition, nor totalinvestments in the overall project sofar. They are proud, he says, becausein only two years of their operationthey have managed to create a brandwhich, as Cucic stresses out, is morevaluable than the overall investmentsmade so far, which gives them additionalincentive to steadily move on.THE CZECH REPUBLIC:MUSIC BOX TV INNEIGHBOURING COUNTRIESThe recognised viewers’ need forinteractivity (i.e. communication) andever more developed communicationtechnologies has brought about theMusic Box TV channel which wasintroduced in The Czech Republic andSlovakia on December 1 st , 2002. Ifcommercials are excluded, the MusicBox channel broadcasts exclusivelymusic spots (at first some 60 percentforeign and forty percent domesticones) 24 hours a day. And whatspots? Those selected by the viewersthrough a mobile call or SMS. (In thechannel promotional material it readsthat Music Box is the first television inCentral and Eastern Europe to offerinteractive communication among theviewers via TV screen.) In SlovakiaMusic Box is the most popular musicTV, while in the Czech Republic its ratingis still increasing. Over million contactsare made per year, says EvaDekanovska, co-owner, Crea TV Ltd.,who has got exclusive Music Box TVrights for Europe.In addition to literally shaping theprogramming, the viewers may alsochat on the Internet with their messagesbroadcast almost in real timeon Music Box channel daily, from04.00 pm to 12.00 pm. We say“almost in real time”, because theEva DEKANOVSKA, Co-owner, Crea TV Ltd.and Marcel DEKANOVSKY, Co-founder ofMusic Boxmessages are censored for vulgar orracist content. If such messagessomehow reach TV screens, accordingto the media legislation in force inThe Czech Republic and Slovakia, CreaTV would be liable for that and wouldnot only pay a large fine but would alsolose the broadcasting license.Interestingly, the viewers do not chatexclusively about music but also aboutthe topics the majority of the channel’saudience (aged 12-19) is occupiedwith. People in Music Box do notexpected any political messages inthese chats, but now and then suchcontent may occur.Music Box is predominantlyfinanced from the percentage paid bythe mobile telephony provider forevery call made, and this income iscurrently more significant than therevenue from the commercials. Andwhat amount we are talking about willbe better understood if we point outthat the calls are made mostly byteenagers and somewhat older viewersmaking together an age group typicallytargeted by advertising agencies.To broadcast such programmingseveral elaborately networked computersserved by only few well trainedROMANIA: SEX, CULTURE,HISTORYCurrently in Romania there are anumber of thematic TV channels.Euforia TV and Romantica TV are twoTV channels targeting the fairer sex.Their programming, spiced with telenovelasof Romanian and foreign production,offers the themes intendedexclusively for contemporary women.The third, and most popular channel,Acasa TV, also targets female viewers,whereas the local channels’ targetgroup are housewives who watchRomanian and foreign telenovelas andentertainment programming. Ofcourse, there are also TV channelsavailable for the male population, suchas Eurosport and TV Sport, whichbroadcast only sports programming.However, if we want to make a seriousanalysis of the Romanian TV market, itis most appropriate to discuss thepublic service broadcaster inRomania, TVR Cultural, first of all. Thepublic broadcaster has been successfocuson CEEoperators are sufficient. High andalmost instantaneous revenue, as wellas very law broadcasting expensescompensate for high investmentsfaster than with any other type of TVchannel leading to large profits. AsMarcel Dekanovsky, a co-founder ofMusic Box, explains this channel doesnot acquire programming abroad.“Actually, since we are an interactiveprogramme where viewers are choosingtheir favourite song we do not buyanything. But we pay for the rights toplay songs so we can rightly say webuy everything we broadcast. Domest -ic local content makes around 50%.Speaking about formats, we wouldprobably not buy any because we feelthat we are creative enough to developour own format if needed. Speakingabout annual acquisitions budget,”Dekanovsky concludes, “this is asecret. It is a lot of money, but alsopeanuts when compared to big players.”Music Box does not enter into coproductionarrangements because,as Mr. Dekanovsky admits, “so farnobody cares.” He also explains theirgreat success, “How can we survive inthis field? Our trick is to be open. Itmeans to let viewers be involved increating programming as much aspossible,” concludes Mr. Dekanovsky.58 DISCOP LINK • #14 • JUNE 08

fully carrying out its cultural and educationalmission by merging, in a veryintelligent way, cultural content withentertainment. This TV channel hasbeen established since 2000. As fortheir programming structure, TVRCultural strictly obeys its position asthe public broadcasting service andprofessionally carries out its mission.It offers abundant and diverse programmingcontent in the form of talkshows,documentaries, feature filmsand reportages both of their own andforeign production such as the REMIXprogramme which is a documentaryportrait of the Romanian bands thathave left the most significant trace inthe contemporary Romanian pop androck music; AT HEAVEN’S DOOR, inwhich a renowned Romanian ethnologistand musician, using folklore elementsand customs, talks aboutnational identity and traditional farmlife, which are slowly disappearing asthey are merge with the dull urbansurroundings.TVR Cultural’s partnerships andco-productions make 38 per cent ofthe budget and primarily relate to livebroadcasts of all types of concerts,theatrical performances in the currentseason, and music and theatrefestivals (for example, George EneskuMusic Festival). TVR Cultura entersthese deals with 50 per cent participation,primarily by providing therequired technology. In return theyobtain authorship rights for eachevent (ONE STAR, ONE PHOTO) orenter a co-production with several significantmuseums or galleries to createprogrammes which presentEuropean fine arts heritage in theform of art-clips.In-house production makes up 51per cent of the channel’s programming:HISTORY CLOSELY, in which arenowned Romanian historian talksabout the generally unknown factsfrom international and Romanian history;SYMMETRIES, the programmewhich presents, in the form of areportage or debate, the Romanianarchitectural landscape including boththe Romanian School and the mostrecent trends in urban planning andarchitecture. TVR Cultural is an alternativeto sub-culture and pseudo-culturebeing promoted by the commercialnetworks. This is the only channelwhich broadcasts the daily culturalJOURNAL - the only news programmeof cultural content.From foreign production houses,TVR Cultural acquires short documentariesand artistic feature films, butalso library-type historical and artisticdocumentaries about civilisations,national cultures, personalities andthe like; these days the following arebroadcast: NEWTON’S PORTRAITS,from the UK; ADVENTURES INARCHEOLOGY, from Germany; andTHE NEW RUSSIA, from the UK. Theyselect library programmes very carefully,and select appropriate featurefocus on CEEfilms (foreign films ranging from oldcult films to the latest productions) aswell as recordings of theatrical performances.SLOVAKIA: TA 3The first information channel createdin the region of Central andSouth-Eastern Europe, TA 3, has beenoperating successfully for seven yearsnow, in the relatively limited geographicalspace of Slovakia. Due to the factthat the channel’s signal was transmittedvia the cable network systemand via satellite, until recently it wasregarded as the information sourcefor the highly educated audience inurban surroundings. The signal of thismonothematic channel reaches only60 per cent of Slovakia’s territory.Interestingly enough, the channel isalso increasingly being watched by theaudience of lesser education living inless developed urban areas, somethingmade possible by the emergenceof new cable operators in thecountry. Often this channel coversevents in the country even more successfullythan the three so-callednational broadcasters, whose signal istransmitted over the whole territory ofSlovakia. This is also true when speakingabout events abroad. While TA 3has probably the best correspondentnetwork in Slovakia, the situationwhen reporting from abroad is morecomplex.TA 3 television has a wide networkof external correspondents in manyworld metropolises. As for video content,they often use REUTERS.However, news, information and publicationmaterial from abroad makeonly one fifth of their total programming.The range of programming topicsis also very interesting. In additionto the news and reviews of the mostsignificant events on the internationalscene, in programmes with business,scientific, cultural and educationalcontent, even in show-biz program -mes foreign themes prevail.When producing their programmingTA 3 mostly relies on their ownresources. The reporters from thischannel often cover many internationallyimportant events live, but they alsoregularly report from special meetings,exhibitions or congresses organisedabroad. In doing so they haveestablished partner relations with60 DISCOP LINK • #14 • JUNE 08

many networks and production houses,from a number of different countries.The programme WORLD BUSI-NESS was produced by FBC Media,while THE WORLD OF TECHNOLOGIESis a result of cooperation with Germanproducers who also cooperate with,for example, ZDF or ARD. In a limitedbudget situation, this station also providescontent by programme ex -change. This is primarily the practicewith the TV Networks from the neighbouringor geographically distantcountries.To the great satisfaction of itsaudience, TA 3 has also included intoits programming documentary filmsand travel programmes, mostly fromthe neighbouring Czech Republic,which is quite logical bearing in mindthe absence of a language barrier.However, they also acquire programmingfrom Australia, Russia or someother countries. In such a case we aretalking about a classical commercialrelationship, i.e. acquisition.So far the station has not entereda traditional co-production withdomestic or foreign partners, but, asthey say, they are open to all forms ofcooperation, including co-productionsif they are in harmony with the establishedprogramming content and interestof the channel. Within TA 3 peoplehave great hopes for the digitalisationprocess which will provide conditionsfor transmitting their signal over thewhole territory of the country. Theyexpect digitalisation to bring them notonly a larger audience, but also animprovement for the channel’s materialsituation.TURKEY: A FAST-GROWINGAREAIn Turkey television is one of thefastest growing areas. Every day newchannels are appearing to viewers.The themes of these channels varyfrom sports to politics, from music tolocal dancing. Years ago it wasthought that people would only watchsports, entertainment and musicchannels. However this belief ischanging rapidly and people arespending more of their time gettinginformation from the so called “MagicBox”.A good example of this change inTurkey is Iz TV. The documentary channel(Trace TV in English) started inFebruary 2006 after one year ofwork. The person behind the first documentarychannel in Turkey is an experiencedadventurous war reporter andphotographer, Coskun Aral. He startedthe channel with a crew of 44 people.The channel is now broadcastingon a digital frequency.Iz TV’s Production CoordinatorBanu Acar mentions that the channelstarted more than two years ago andis going very successfully. Acar saysthat, because the channel is notbroadcasting on satellite but via a digitalplatform called “Digiturk”, theycannot get so many advertisements.According the Production Coordinat -or, sponsors are not willing to give fullcoverage to the programs but theyprefer to give product sponsorships,for clothing, beverages, food or similar.focus on CEEAs for the question of whetherprogram formats are being bought,she replies “No”.“We make all our programs ourselves.There are times in a year thatwe all sit together and think aboutwhat else we can do. Then we developnew programs. We tend to createprograms about the marine world,nature, food; everything that can bedocumented. Right now we have noforeign projects.”In Iz TV, Coskun Aral prepares hisprogram. There is a documentaryabout sea life TRACES ON THE SEAWITH SAVAS KARAKAS, and oneabout the experiences of a Dutchmanliving in Turkey. This programme’sname is WILCO’S VAN.However Acar also points out thatthe channel does not close its doors toforeign projects. “They can alwaysbring us co-production offers and weevaluate them.”About the costs of the channel,Acar mentions that the budget is relativelylimited compared to internationaldocumentary channels. “We do notearn so much. We pay our expensesourselves. We spend around 1000euros on a given program made inTurkey. If the program involves goingabroad the budget can increase up to2500 euros. But our annual acquisitionis more like 50.000 euros.”Iz TV also won the Europe’s bestdocumentary channel award, “HotBird” in 2007. }62 DISCOP LINK • #14 • JUNE 08