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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

Thursday, Sept. 18


Get your nerd on at Boomfest, St. Petersburg’s answer to the United States’ popular ComicCon. Starting today, this international festival of comics will take over venues throughout the city center and includes exhibitions of comics and illustrations, film screenings, competitions and the chance to meet the genre’s authors, artists and experts.



Friday, Sept. 19


SPIBA’s newest addition to their Cultural Discoveries events is “Handmade in Germany,” an exhibition featuring unique handmade objects of a significantly higher quality than mass-produced items. The work of over 100 German manufacturers will be displayed during the event, which opens today in the Lutheran Church of Saint Peter and Paul on Nevsky Prospekt and runs through Sept. 28.



Saturday, Sept. 20


Starting on Sept. 18 and ending tomorrow is the Extreme Fantasy Wakeboarding Festival in Sunpark by Sredny Suzdalskoye lake in the Ozerki region of the city.


Those after something more laid back can instead head to Jazz and Wine night at TerraVino with legendary jazz guitarist Ildar Kazahanov. 12/14 Admiralteyskaya Emb.



Sunday, Sept. 21


Learn more about African culture and get some exercise during today’s “Djembe and Vuvuzela,” a bike ride starting in Palace Square that includes several stops where riders can listen to the music of Africa or watch short films about the continent. The riders plan to set off at 4 p.m. and all you need to join is a set of wheels.



Monday, Sept. 22


Do you love puppetry? If so, then be sure to go to BTK-Fest, a five-day festival that starts on Sept. 19 celebrating the art. Contemporaries from France, Belgium, the U.K. and other countries will join Russian artists to put on theatrical performances involving a variety of themes, materials and eras. Workshops and meetings are also scheduled for a chance to discuss the artistic medium in further depth.



Tuesday, Sept. 23


Marina Suhih, Director of the External Communications Department at Rostelecom North-West, and Yana Donskaya, HR Director for Northern Capital Gateway are just some of the confirmed participants of today’s round table discussion on “Interaction with Trade Unions” being hosted by SPIBA. Confirm your attendance with SPIBA by Sept. 22.


Kino Expo 2014, an international film industry convention, will be at LenExpo from today until Sept. 26. The third largest exhibition of film equipment in the world, the expo focuses on not only Russia but former Soviet republics as well.



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