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EU's 2012 switchover target raises concerns in Eastern Europe
September 14, 2007, TVinternational
The likelihood that Central and Eastern Europe will achieve digital switchover in the next few years is uncertain, with some of the region's leading TV players warning that some countries could miss the European Union's 2012 switchover deadline.
Many countries have yet to finalize detailed switchover plans. Some players are concerned that Central and Eastern European markets might not be able to sustain digital-terrestrial services. Some say the region's governments might have been forced to pursue other priorities, especially with many gearing up to join the single european currency. "I see a lot of economic obstacles to switchover," HBO Central Europe CEO Linda Jensen told TVI. "I thik there is a little contradiction while the governments are off their euro targets but also working towards digital TV. If you look at the economiec question, someone has to pay."
"I believe the Bulgarian government wil push for 2012," says Janet Zaharieva, chief legal officer at Balkan News Corp. part of the Rupert Murdoch-controlled media group. "But if there are signs that other Central and Eastern Europe countries are delaying, then I think Bulgaria might delay too."
There are also concerns about the financial viability of DTT, typically a free-to-air play, because many CEE countries have small TV advertising markets. "None of the DTT models that I've seen take into accounts the realities of our business," said Michael Garin, CEO of Central European Media Enterprises. "I don't understand how a regulator can promore a technology without explaining to consumers how it's going to be paid for. It makes very little sense to me."
DTT is not expected to become one of the region's main digital-TV platforms. Informa Telecoms & Media, publisher of TVI, forecats that only 6% of the region's 147 million TV homes will use DTT by end-2012.
For additional information, please contact:
Romana Tomasova
Vice President of Corporate Communications
Central European Media Enterprises
Krizeneckeho nam. 1078/5
152 00 Praha 5
Czech Republic
+420 242 465 525
romana.tomasova@cme-net.com
