Not Everybody Feels Confident

Michael Hedges April 6, 2011 Follow on Twitter

If not exactly celebrating, media companies in many countries are breathing a sigh of relief as 2011 starts on a more positive financial note. There are evil signs out there, to be sure, as austerity programs batter consumer confidence. For many markets, East and West, the worst could be over. And then there are the others.

Greece has, arguably, been battered most by the contagion of bad policies and dreadful planning. The media sector is not seeing much relief as public sector cuts hit employment and government advertising in regional newspapers. And, then, revenue raising tax schemes hit everything from television advertising to yacht owners. Whether or not the country defaults on its debt, the Greek public is feeling – and seeing on television – the pain.  

New strikes have been called for all workers at newspapers, broadcast media, news sites, distribution agencies and any others even vaguely attached to media from Thursday morning (April 7) through the following Monday (April 11) protesting “massive layoffs” within the media sector. Unions are asking members and non-members not to prepare or deliver Sunday editions. Media watchers in Greece suggest this particular round of strikes could dramatically change the media landscape. Employers are asking for 15% salary reductions for workers making more then €1,200 per month as well as scheduling flexibility. Management at radio and television broadcaster Skai, citing economic woes, seems prepared to dismiss any employee unwilling to accept the new terms.

Journalists, technicians and administrative staff at radio and TV broadcaster Skai called a 24-hour strike for this week (April 5), which a court declared illegal the day before. Completely unrelated (blink, blink) Skai fired its entire marketing department (April 5) due to “adverse economic conditions and the need for reorganization.” The Skai Group owns radio, television and a website under that brand plus radio stations Melodia 99.2, Red 96.3 and Play 88.9. Union technicians at television channel Alter suspended their strike (April 3) after owners agreed to pay wages and bonuses due before Easter.

The Panhellenic Federation of Journalists’ Unions (POESY) called for industrial action on March 17th, reportedly poorly attended. It seems many broadcast journalists and, unsurprisingly, web journalists along with bloggers decided to keep reporting. Media workers went out on strike last December and last June.  It has become ritual. Employers regularly take unions to court, have the strikes declared illegal, whereupon the unions reschedule strikes.

Several Greek television broadcasters, including ANT1, have put fall 2011 entertainment programming plans on hold, calling the outlook “hazy.” The 20% tax on television advertising now in force has cut into broadcasters revenue as advertisers race to the less taxed internet.

Greek companies, media and otherwise, tend to manage their tax bills creatively, arguably one reason for the government’s austerity programs. With a tax on newspaper advertising in place, publishers would bill for ads through online subsidiaries. When the government proposed an ad tax on television, internet advertising was included.  Then, as if by magic, internet advertising was finally excluded.

Greek media is considered highly concentrated. Lambrakis Press Group, also known as Lambrakis Organization, is the largest private sector media company, with interests in publishing, distribution and television. After the European Union summit on the Greek economy (March 11), Lambrakis Press shares on the Athens Stock Exchange rose nearly 15%, the most of any traded company.  Officials of the International Monetary Fund (IMF), European Union and European Central Bank are assembled in Greece to review budget progress.

Media workers are caught up in it, literally and figuratively, as every demonstration attracts reporters and TV crews. A 32 year-old technician for Antenna TV putting up an uplink dish this week (April 4) touched a power cable and was electrocuted.

See also in ftm Knowledge

Media in South East Europe

The countries of South East Europe are a mix of EU Members - Greece, Romania and Bulgaria - and two on the fringes - Macedonia and Moldova. The region has media billionaires and big broadcasters vying for ad share and market position. Challenges, not just on the fringes, remain daunting. Includes Resources. 56 pages PDF (May 2010)

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