In Complete Control And Out of Control

Michael Hedges December 4, 2018 - Follow on Twitter

Amassing more power is a common purpose of political leaders of a certain authoritarian bent. Media is a means to that end. Once in control of regulators and jurists many possibilities arise. Money is no object with the state treasury at hand. Opportunities are there for the taking. There is one big problem.

Most owners of Hungary’s government-friendly media outlets took a bold step last week, reported news portal 24.hu (November 28). A dozen media operators “gifted” equity in hundreds of outlets across all platforms to a not-for-profit entity known as Central European Press and Media Foundation (Közép-Európai Sajtó és Média Alapítvány). The shade has been lifted.

The combined market share of CEPMF outlets is estimated at “just below 20%.” Former operators transferred title to the foundation a week earlier. Some retained minority ownership; all ceded operational control. CEPMF was first registered in September, according to court documents. Chairman of the foundation’s board is pro-government newspaper Magyar Idok owner Gabor Liszkay, who a few months earlier establish a different non-profit for, apparently, the same purpose. Named general director is Miklós Vaszily from pro-government Echo TV, until September general director of state broadcaster MTVA.

The unusual transaction combines the media holdings of pro-government supporters Lornic Meszaros, Arpad Habony, Andy Vajna, Maria Schmidt and others. This originally included Echo Penisola Kft (Part FM), Gong Radio Kft (Gong Radio), HirTV Zrt (Hit TV), Hold Reklan Kft (Retro Radio), Hung-Ister Zrt (film and TV producer), K4A Lapkiado Kft (weekly Figyelo publisher), Mandiner Press Kft (news portal mandiner.hu), Modern Media Group Zrt (Lokal newspapers and news portals lokal.hu and 888.hu), and Ripost Media Ltd (Ripost newspaper, Hello magazine and news portals ripost.hu and faktor.hu). Jumping on the bandwagon a day later were Opus Press Zrt, Echo Hungaria TV Zrt, Magyar Idok Kft (newspaper Magyar Idok and radio channel Karc FM) and New Wave Media Group (news portal Origo). “These offerings are welcomed by the foundation,” said a CEPMF statement. The Hungarian competition office will rule on the transactions very soon.

“The main aim of the foundation is to serve, preserve and maintain a balanced media in Hungary,” said CEPMF board member Miklos Szantas to the New York Times (November 30). Prime Minister Viktor Orban and Fidesz party supporters have pressured several media proprietors to divest their holdings in recent months. The official stated reasoning is to bring financial and operational efficiency to government-friendly media, generally interpreted as funnelling copious government and state advertising revenues to friendly places.

The new CEPMF media grouping is expected to take the lions share of state ad spending, often withheld from critical media outlets. Media buyer Kantar Media provided a view that the estimated annual aggregate amount is HUF 17.8 billion, about 60% of which already flow to CEPMF outlets, reported media news portal kreativ.hu (December 1).

“Following this decision, government propaganda will have an even stronger and centralised voice in Hungary, with an incredible amount of resources controlled by the government,” said Hungarian Greens/EFA European Parliament member Benedek Jávor in a statement. “This system of a media market is unprecedented in a democracy, in fact, this resembles the media landscape in a dictatorship.”

International press freedom advocates, long warning of Hungary under PM Orban sliding into dystopia, rounded on the new development. “The Hungarian media theatre starts to resemble the state of communism,” said US-based Freedom House, in a statement. "Such a concentration of media power in the hands of one institution is unprecedented in the European Union," said Mertek Media Monitor analyst Gabor Polyak, quoted by AFP (November 29). "Doing this so openly is a message to Hungarians and Europeans that pro-government forces can afford everything.”

Having solidified nearly 500 national and local media outlets under state control, there could well be an even bigger plan. In recent months media outlets in Macedonia and Slovenia have been acquired by individuals aligned with PM Orban. The possibility of an “illiberal” right-wing media network throughout Central and Eastern Europe rises.

See also...

• Hot Topics - Media in Hungary

• Hot Topics - Press/Media Freedom