Publisher Promises Persistence In Face Of Political Games

Michael Hedges June 20, 2017 Follow on Twitter

Big publishers and broadcasters have good reasons to pursue investment opportunities across borders. International expansion is considered a normal extension of business strategy. Aside from money, always the primary motivation, new markets add depth to the corporate gene pool.

Publisher Ringier Axel Springer Media (RASM) has invested in media outlets across several countries. It is a joint venture of Swiss publisher Ringier and German media house Axel Springer. The two combined their Central and Eastern European assets in 2010. A considerable part of this investment is in Poland, now under political control of the nativist/populist Law and Justice (PiS) party, elected in 2015. PiS politicians want RASM and all other foreign investors in Polish media to leave or, at least, toe their political line. (See more about media in Poland here)

Leaving Poland is “categorically” not an option, said Ringier chief executive and RASM board member Marc Walder, in an interview with Neue Zürcher Zeitung (NZZ June 16). “We know these rumors. We consider them part of the political game. They lack any basis; some coming from top government circles or from people close to the government. I can state categorically - and this also applies to Axel Springer - that we are not separating ourselves from our newspapers, magazines or internet portals in Poland, either individually or all of them.”

RASM owned outlets in Poland - including Fakt, Newsweek Polska, two sports publications and a controlling stake in web portal Onet.pl - have seen ad revenues from state-owned enterprises drop to zero, not an inconsequential sum. “Millions of euros,” said Herr Walder. “It began creeping in… when (Jaroslaw) Kaczynski’s party - the PiS - came to power. We are also confronted with government-friendly media that spread untruths about us.”

“We can not do much more than deny (the rumors) and clarify that we are an independent and long-term oriented investor. We are also willing to take business-related consequences over a couple of years. We have experienced such attacks again and again. We are persistent.”

Part of the PiS initiated “re-polanization” plan includes an amendment to the current media law not yet brought forward limiting foreign ownership to 30% with either Polish investors or the State taking majorities, similar to the media ownership law in the Russian Federation that took effect in at the beginning of 2016, driving out several foreign investors including Axel Springer, Sanoma, Edipresse and Modern Times Group. A national public opinion survey by Maison & Partners for media portal wirtualnemedia.pl, and published therein (May 27), showed 28% supporting “government intervention in the media,” 40% not and 32% with no opinion. “The less politicians decide the terms of what the media market looks like, the better,” said political commentator Piotr Apel at a public debate on the “re-polanization” scheme at the Warsaw International Press Club, quoted by polskatimes.pl (June 2).

Quickly after taking control of the Polish parliament, the once well-regarded public television Telewizja Polska (TVP) and radio broadcaster Polskie Radio (PR) were thoroughly converted to pro-government State media outlets. Television viewers and radio listeners also gave their opinion, sending market shares for TVP and PR news programs significantly lower. TVP president Jacek Kurski blamed the measurement service, currently provided by Nielsen, and claimed the household sample is populated with “activists,” reported wirtualnemedia.pl (June 8).

See also in ftm Knowledge

Media in Poland

Poland is the largest media market of the newest EU Member States and the changes have often been surprising, sometimes radical and never ending. Publishers, broadcasters and new media are plentiful, talented and under constant stress not only from competitors. 122 pages PDF, includes updated Resources (January 2016)

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