Equity
Draconian media laws could drive TV2 out of Hungary
The rationale for the move would be for the channel to escape the rigour of media supervision in Hungary, HVG.hu claimed. The article reminds that declining advertising revenue and advertising tax left TV2 with gaping holes in its budget, something the channel was planning to mend with the help of program fees levied on cable companies. However, stringent government regulations that banned program fee collection foiled all such plans at the channel, which had been acquired by the Hungarian management in February 2014. In a March interview with Forbes, the channel's owner and CEO Zsolt Simon said TV2 was projecting HUF 6 billion to HUF 8 billion in revenue from cable companies.
The new contracts signed with cable providers in the fall include a clause with provisions for the eventuality that TV2 could be moving its HQ to another country where the supervisory environment is less stringent than in Hungary. If so, the distribution contracts can be terminated and will have to be re-written, HVG.hu claimed.
"The TV2 Group is currently considering several options as regards operation next year. We are looking into the possibility of broadcasting under the media supervision of another country," the management told HVG.hu.
Both RTL and TV2 have a viewership share of over 15% and as such, are considered media with significant power of influence and need to comply with more stringent rules, the article reminded.
The new contracts signed with cable providers in the fall include a clause with provisions for the eventuality that TV2 could be moving its HQ to another country where the supervisory environment is less stringent than in Hungary. If so, the distribution contracts can be terminated and will have to be re-written, HVG.hu claimed.
"The TV2 Group is currently considering several options as regards operation next year. We are looking into the possibility of broadcasting under the media supervision of another country," the management told HVG.hu.
Both RTL and TV2 have a viewership share of over 15% and as such, are considered media with significant power of influence and need to comply with more stringent rules, the article reminded.
