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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

Friday, Dec. 19


Test your mastery of parlor games during Game Evening at the British Book Center. Learn how to play a variety of classic, mentally challenging games and use your newly acquired skills to crush weaker opponents. The event beings at 5 p.m.



Saturday, Dec. 20


The city’s Babushkina Park on Prospekt Obukhovskoy Oborony will be invaded by dozens of rocking-and-rolling Santa Clauses during today’s Santa Claus Parade. Not only will they parade through the park but there will also be competitions amongst the festively-clad participants and a musical master class. There will also be a prize for the best-dressed Santa Claus.


Stock up your record collection during the Vinyl Christmas Sale at the KL10TCH bar on Konyushennaya ploschad today. Spend the afternoon perusing the records for sale while listening the classic, clean sound of records spinning out hits from a variety of musical genres and time periods.



Sunday, Dec. 21


The Zenit St. Petersburg basketball team returns to the northern capital this evening for a matchup with Krasny Oktyabr, a Volgograd-based basketball club. Tickets for the game, which tips off at 6 p.m. this evening, can be purchased on the club’s website or at their arena, Sibur Arena, on Krestovsky island.


Satisfy your sugar cravings during Sweet New Year, an ongoing seasonal festival at the Raduga shopping center. Each weekend of December will welcome hungry visitors to taste hundreds of different kinds of desserts made from a plethora of sweet treats. Workshops are open to visitors and seasonal gifts can also be purchased for those rushing to finish their New Year shopping.



Monday, Dec. 22


Pick out the latest fashions as holiday gifts for loved ones or as early presents for yourself during the Christmas Design Sale at Kraft on Obvodny Kanal, starting on Dec. 20 and continuing through Dec. 27. Designer clothes will be on sale every day of the week or you can buy something more festive to decorate the home while sipping on hot coffee and perusing the various master classes.



Tuesday, Dec. 23


Meet Arctic explorers Fedor Konukhov and Viktor Simonov during SPIBA’s and Capital Legal Service’s event “Arctic Expedition” this morning in the Mertens House business center at 21 Nevsky Prospekt. The meeting will discuss the explorers’ ongoing eco-social project and how companies can use the project as a unique marketing opportunity. Email office@spiba.ru by Dec. 22 if you wish to attend.



Wednesday, Dec. 24


The Anglican Church of St. Petersburg we will be holding a Christmas Eve service at 7 p.m. led by Rev Wm. Shepley Curtis of the Episcopal Church. The service will be held at the Swedish Church at 1/3 Malaya Konyushennaya Ulitsa.



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