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State Bans Advertising on Cable and Satellite Channels

Published: July 7, 2014 (Issue # 1818)



  • Natalya Sindeyeva at Alexander Vinokurov of Dozhd speaking at a news conference earlier this year.
    Photo: D. Abramov / Vedomosti

In a decision that has cast a pall over the future of small and independent television stations, the State Duma on Friday rubber-stamped a widely censured bill banning advertising on cable and satellite television from the beginning of 2015.

The law raced from proposal to reality in less than a week, passing its first reading Tuesday and its second and third in a single blow on Friday.

Suddenly learning of the initiative, the heads of several Russian channels — including Natalya Sindeyeva of opposition-minded news channel Dozhd and Sergei Nazarov of premium channel Amedia TV — last week wrote a letter urging the government to consult with the business community before rushing to a decision.

Of about 270 cable and satellite channels in Russia, "excluding the advertising model will place about 150 on the brink of survival," the letter said, warning that the ban would likely lead to an increase in the price of paid television services.

Such a ban is unheard of in "the vast majority of countries," the authors added, according to a copy of the letter posted last week on Dozhd's website.

The bill bans advertising on all channels that are available "exclusively on a paid basis," as well as on channels that can only be viewed with a decoding device.

Safe from the ban are all "national, compulsory, universally accessible" channels, and those which are conveyed by terrestrial broadcasting — in other words, all the major state-run channels that dominate the Russian airwaves.

According to its author Igor Zotov, a Duma deputy and leader of the marginal Russian Pensioners for Justice party, the bill is intended to even the playing field for free and subscription-based channels. In Zotov's view, paid channels now benefit from two sources of revenue — advertising and subscriptions fees — while the free broadcast channels have to make do with just advertising.

Interestingly, however, the advertising revenues of digital and satellite channels last year amounted to just 2.6 percent of the total television advertising market — hardly a competitive market share, according to data from the Association of Communication Agencies of Russia.

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ALL ABOUT TOWN

Wednesday, July 23


SPIBA’s Legislation & Lobbying Committee invites everyone interested in the practical aspects of courts and procedural law to today’s Legal Debating Club at 9:30 a.m. at the Mertens House, 21 Nevsky Prospekt, office 506. Visit spiba.ru for more details.


Take advantage of the sunny summer days and participate in Beach Games 2014, which runs through July 27 in Sestroretsk’s Dubki Park.



Thursday, July 24


Liliana Modiliani, a well-known Russian stylist, will talk about choosing clothes that fit during her lecture at 7 p.m. at the Pryamoy Efir art club, 13 Viborgskoe Shosse.



Friday, July 25


Discuss Russia’s economic and political prospects for 2014 during a Business Breakfast organized by SPIBA at 9.30 a.m. in the Bank Saint-Petersburg office at 64


Malookhtinsky Prospekt.


Start your weekend with adorable miniature pigs at the Squealing Pig festival at 7 p.m. this evening in the Karl & Friedrich restaurant, 15 Iozhnaya doroga, on Krestovsky Island.



Saturday, July 26


Hundreds of brand-new and retro cars, drag and drift shows, test drives and karting are planned for the Avtobum-2014 festival, which will take place in front of the RIO shopping center at 2 Fuchika Ulitsa.


Participants in today’s SaniDay Summer competition will impress visitors with their hand-made, unusual and hilarious boats, which will race at the Igora Resort near the 54th kilometer on Priozerskoe Shosse.


Metro Family Day will include both serious lectures for adults and master-classes for children, making the event interesting for the whole family. To participate, come to Kirov Park on Yelagin Island.


Photography will be the focus of today’s Photosubbota, which features lectures by famous photographers, meetings with photo schools and studio representatives, and participation in a photography competition. The event starts at noon at Petrokongress, 5 Lodeynopolskaya Ulitsa.


If you like cycling, make sure to visit the Za Velogorod Festival with its retro bike exhibition, market and live music. The second round of the Leningrad Criterium race will also take place during the event at Petrovsky Arsenal in Sestroretsk.



Sunday, July 27


Navy Day will be celebrated with a weapon and military transportation exhibition, self-defense master classes and concerts. The event starts at 1 p.m. in the 300th Anniversary Park of St. Petersburg.



Monday, July 28


Don’t miss a chance to see the latest achievements in robotics during the RoboDom interactive show, exhibiting more than 150 robots. The show will be at BUM center, 22/2 Gzhatskaya Ulitsa, until Aug. 3. The entrance ticket costs 350 rubles ($10).



Tuesday, July 29


A video of a Queen concert from 1986 will be shown today at 8 p.m. in Yaschik, 50/13 Ligovsky Prospekt.



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