Back In The USSR – You Don’t Know How Lucky You Are

Michael Hedges October 19, 2009 Follow on Twitter

A bit of restructuring at two of Russia’s television channels looks to some like the cloud of Soviet times descending. All things Russian appear mysterious, not the least being its media. When times are tough, the tough make plans.

Yuri Kovalchuk, chairman of National Media Group (NMG), announced an “optimizing of the management structure,” reported Kommersant, for national television channel REN TV and St. Petersburg’s Channel 5.  New directors for each channel were named and Alexander Rodyansky, well known to Russian media, is assuming the role of “chief ideologist.” In the first half of this year revenues at REN TV fell 29%, according to RTL Group, a significant minority shareholder.

Most details of the restructuring, other than new people at the top, are left to the imagination, to be revealed in November. Except one, a bit more rumor than fact: REN TV and Channel 5 will be outsourcing news production to State owned Russia Today (RT). And that sent Sovietologists gasping. No officials at REN TV, NMG or Russia Today would confirm, deny or make much of the suggestion though REN TV insiders quoted but not named by Kommersant said the deal is done. Speaking to Echo Moscovy (October 17) REN TV deputy editor Marianna Maximovskaya demurred.“I am absolutely convinced that in the near future direction and mood of our news and our program will not undergo any change,” she said.

In Russia, though, every rumor turns out to be true soon or later. And nobody doubts the State’s interest in putting a positive spin on news coverage. The main television channels studiously balance coverage of President Dmitry Medvedev and Prime Minister Vladmir Putin lest bickering break out. Domestic news coverage accentuates the positive (“The five year plan will be achieved”) while much of the international news coverage is unrepentantly critical.

Neither REN TV nor Channel 5 have been hot beds of domestic criticism in their news coverage. The rest of their programming is rather light and fluffy… and very uncontroversial. With that REN TV has increased its national audience share over the last year. Money, though, is a problem. (More on Russia's media here)

Enter Alexander Rodyansky: Russia’s TV boy-wonder. Until August he was President of CTC Media, another Russian television operator, Modern Times Group (MTG) being the significant foreign partner. Rodyansky was CTC Media’s CEO between 2004 and 2008 and, so far, he continues on the board. He was also a founder of Studio 1+1 in Ukraine and, until last year, was a partner with Central European Media Enterprises (CME) in that venture. On resigning from CTC Media he indicated an interest in returning to film-making. Things change.

New production heads named at REN TV - Ilya Ognev - and Channel 5 – Natalia Nikonov - come from Channel One and NTV, State TV. Heading the “television asset management group” for NMG is Vladimir Khanumyan, who comes from CTC Media.

Russia Today (RT) is the English language channel launched in 2005, under the patronage of Mr. Putin, to counter Western media coverage of Russia. The channel is what it is; well-produced, nice features (particularly sports coverage) and not too much hectoring. The Kommersant article also suggested both REN TV and Channel 5 would be moving into State news agency RIA Novosti’s office space in Moscow, which is shared with Russia Today. Channel 5 may drop “St Petersburg” from its name. Kommersant is respected as one of the most reliable news sources in Russia.

Taking on Russian language news coverage for a domestic audience would be a stretch for RT. About half its on-air staff are not native Russian speakers. RT started Arabic language channel Rusiya Al-Yaum in 2007. RT editor-in-chief Margarita Simonyan preferred not to comment on the possibility of taking on news production for REN TV and Channel 5.

Most Russian observers believe Mr. Kovalchuk, a long time friend of Mr. Putin, wants to strengthen the balance sheet, news coverage being secondary to ratings and ad sales. He’ll hear no objection from the RTL shareholder. And, very likely, there will be little objection anywhere in Russia.

See also in ftmKnowledge

Media in Russia

Media in Russia is big business and big politics. Media companies are consolidating as they move into new media and new territories. At the same time independence is still questioned. It's all changing. ftm looks at media in Russia and its neighbors, 72 pages. PDF file (March 2010)

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