A clearer TV scenery in GR: Wait for Q2

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A clearer TV scenery in GR: Wait for Q2

The licensing process that has been put in motion by the government has several steps ahead before the settling-in of the new scenery. The most critical expected step, is the decision of the High Court (Ste), that meets in full synthesis on Friday the 30 Sep. to judge on the compatibility of the law & process with the constitution. The 90 days period for the creation of the new TV environment starts only if STE is in agreement, the financial checks are completed and the signatures of the administration in place.

So, the new environment, in best case will be ready not earlier than the beginning of Q2 of 2017.  If though STE declares the law as conflicting with the constitution, then the cards will have to be drawn again from point zero.

But the question that keeps coming up louder and louder: Will the 4 licenses that are coming at the exorbitant price tag of 246 mil Euros in total with a lifespan of 10 years, become the basis for the building of a healthy new era for TV in Greece?

One cannot be so optimist. The lifespan is theoretical, because technology will bring additional competition through Internet broadband, much sooner than in 10 years. Many predict 3. So, if we accept the 5 years span, a division by 5 means that the licenses are absorbing 50 mil/year, or 25% of the currently existing income pie. What about the minimum needed 50 mil Eu of operating expenses? The law requires a minimum of 400 people staff, the production of News etc. We thus arrive to a min. deficit of 50 mil Eu in Year One. Add to that the necessary Hardware investment & amortizations and … you have the perfect recipe for an industry to doom from year One.

 

 

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By | 2017-03-22T11:34:05+00:00 September 23rd, 2016|Advertising, Marketing, Media|