Trakia Journal of Sciences, Vol. 9, Suppl. 3, pp 191-203, 2011 Copyright © 2011 Trakia University Available online at: http://www.uni-sz.bg ISSN 1313-7069 (print) ISSN 1313-3551 (online)

THE “NEW” BULGARIAN MEDIA – DEVELOPMENT TRENDS AND TENDENCIES. MEDIA REGULATION, OWNERSHIP, CONTROL AND THE “INVISIBLE HAND OF THE MARKET”

N. Georgieva-Stankova*

Regional Economics Department, Economics Faculty, Trakia University, Stara Zagora, Bulgaria

ABSTRACT Liberal democratic media are perceived as playing an important role in promoting public discourse, informing and representing the public and serving as a watchdog of the main power structures in society (1). To what extent are Bulgarian mass media capable of performing such functions? The paper aims to review media regulation policies, legislation and patterns of ownership and control in Bulgaria within the last 20 years of democratization, as implicitly compared to well-established European practices. The advent and development of new commercial media are discussed, as well as issues regarding media ownership, control and accountability, intricately interwoven with political and economic interests. The meaning and functioning of the public service media is reconsidered, as well as issues related to the freedom of speech, press self-regulation, libel and defamation legislation. A conclusion is reached that overall tendencies in the Bulgarian mediascape follow a well-established pattern of globalizing processes towards greater economic concentration, transnatonal ownership, non-transparent capital as well as intricate political gamesmanship, presenting new forms of power that endangers the freedom of expression. Finally, certain recommendations are made towards the improvement of the functioning of the media as a true expression of social interests and the public sphere.

Key words: media regulation, ownership, control, accountability.

INTRODUCTION power of the free market, the ideology of Media discourses have inherently been related diversity of choice and sovereignty of the to discourses of power. Some of the consumer, became the dominant discourse in dimensions of media power are expressed in policy-making, following a well-established the vision of the media as the “Fourth Estate” Western pattern of media regulation. After the in their capacity to reflect, shape or remain fall of the Iron Curtain, the new-born independent of social structures, as different Bulgarian media quickly joined in in the media theorists would claim. The new euphoria of market freedom and minimum democratic media in Eastern Europe were state regulation, not considering many of the intended to become the defenders of liberal dangers and pitfalls lurking along the road of democratic principles, the watchdog of transition, divesting it of the support that every political malpractices and the social fledgling needs. consciousness of authorities, serving solely the needs and interests of the public. Media As a result, the advent of the private media and freedom, frequently equated with the liberating new patterns of media ownership and control ______have started to represent a new vision of *Correspondence to: Nadezhda Georgieva- “media power” in the country, combining the Stankova, Trakia University, Student Campus, unleashed forces of the market and political Stara Zagora 6000, Bulgaria., Mobile phone gamesmanship. (+359) 0885 324 211 , E-mail: [email protected]. In a brief recapitulation of the twenty-year period, we could say that the freedom of speech in Bulgaria has drastically declined.

Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 191

GEORGIEVA-STANKOVA N. According to Reporters without Borders (2), immense advantages (5). Therefore, media ranking Bulgaria at 71st place, the country is concentration is considered as posing serious lagging behind countries, such as Ghana, problems, including decline in pluralism and Botswana, Togo, Burkina Faso, Paraguay and diversity, abuses of power and under- etc. Such a conclusion is the reason for representation of some significant viewpoints demanding the provision of new guarantees for (4). The study of the economic advantages of media freedom, as stated by the Chair of the media enlargement and diversification, as well Committee for Electronic Media (CEM), as of regulatory policies, are central to the Georgy Lozanov, in his annual report in attention of a significant number of media Parliament at the beginning of May 2011(2). scholars. Other key theorists within This will presuppose the necessity to introduce communication studies and studies of significant changes in the Radio and Television information society include Manuel Catsells Act (2). Additionally, growing monopolies in and Amelie Arsenault (5) and the British the media can lead to serious social tensions, radical functionalists, the political economy since the media agenda in Bulgaria is not that trend developed by Golding and Murdoch (6) of public demand, according to Professor and James Curran (7) (8) (9), as well as the Milko Petrov, a Journalism scholar from Sofia structural-culturalist analysis of Stuart Hall University, but that of the ruling political and (10) (11) and Herman and Chomsky’s theory corporate elites (2). Similar dismal on the role of the media in manufacturing observations were made at the opening of the consent (12). They all pursue a common thread International Conference “The Freedom of in the analysis of the structures of control Speech Facing the Challenges of Democratic within media organizations, which are Development” (3). For Valery Todorov, considered to be tightly interwoven with General Director of the Bulgarian National structures of control within larger society. Radio (BNR), what is more at stake is the Similar patterns of media ownership and freedom of the media as institutions, than the control, interlinked with power structures in freedom of speech in general, which means not society, can be found in East European and allowing direct political interference in them Bulgarian media. The globalization of capital (3). Apart from media political dependence, has seriously started affecting media corporate however, stand the problems of their economic structures, creating problems for regulatory independence, media concentration and the systems and authorities in the region, leading transparency of media capital, according to to the formation of new monopolies and media Georgy Lozanov, which present a threat to empires and the merging of strong economic media pluralism and diversity (3). and political power, adding only some faint nuances of “local colour” in the new Contemporary tendencies of concentration of democracies. The paper will assert that the media capital, cross-media expansion and the power exercised by such media is mainly growing number of media mergers within achieved through a combination of economic specific socio-political contexts in capitalist and political means, having profit societies have created considerable challenges maximization as a primary goal, but leading to to regulators and state authorities not only in graver conclusions regarding political Bulgaria and the former Eastern bloc, but also gamesmanship, opinion leveraging and the in the UK and Western Europe in general, exclusion of alternative and minority according to Gillian Doyle (4). Such strategies discourses. carry strategic commercial and socio-political advantages to proprietors, raising questions Some of the main questions that will be concerning the capacity for efficient work of discussed in the process of analysis are the existing regulatory mechanisms and their following: freedom from growing corporate media What are the patterns of media ownership and interests (4). Some of the observations made control in the Bulgarian media? What by media experts confirm that ongoing problems have occurred regarding the freedom processes in global capitalism lead to a of speech and pluralism? What policies and paradox, according to which intensified global bodies of regulation and accountability have competition actually tends to result in less existed for the period under study? Have they competition, especially in the media field (4). been efficient and what needs to be done to As Doyle states, the concentration of enormous guarantee media professionalism, pluralism and power in the hands of a few large transnational the principles of liberal democracy? companies gives such large-scale firms 192 Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011

GEORGIEVA-STANKOVA N. The theoretical approach and methodology to be According to such an interpretation, we should applied in the study involve a combination of a view media owners as entirely working “in the critical political economy approach, focusing on public interest,” giving audiences i.e. consumers patterns of media ownership, control, regulation, “what they want” (14: 337). In this sense, the accountability and legislation and socio-cultural democratizing role of the free market is analysis of the context and functioning of media perceived as ensuring that whatever proprietor’s institutions (13: 99-100). wishes might be, they should correspond to the public good (ibid.). In other words, the free THEORETICAL APPROACHES WITHIN market should guarantee that whatever the media THE IDEOLOGICAL FRAMEWORK OF produce, it is always representative of public THE HISTORY OF DEVELOPMENT OF opinion, reflects its diversity and is generally THE EUROPEAN MEDIA accountable to the public (ibid). One of the leading approaches in media studies is the liberal media paradigm. Liberal media theory Curran and Seaton (14: 342) contend against discusses the development of European media as such arguments, reflecting primarily on the a gradual emancipation from state oppression, functioning of the British press, and they define censorship and political regulation, leading to them as “threadbare” in a number of aspects. freedom of expression, pluralism and diversity of First, the theory is seen as being initially choice. It views the free press, and media produced in a completely different political and respectively, as performing four key functions: of economic environment, namely mid-Victorian informing the public, keeping an eye on England, which made it more plausible than in governmental actions, providing a platform for the contemporary context. Second, the press public debate and expressing public opinion (14: cannot be viewed as a representative institution 341). Additional functions can be the exposing of of market democracy, because of the privileged executive malpractices, helping society to adapt position of capital in an only “seemingly open to change and finding a consensus on shared contest” and non-partisan free market (ibid.). values (ibid.). For liberalists, mass media play a Third, the press cannot be treated as the only central role in providing the necessary conditions intermediary between the state and the public, for free expression. From a Parsonian ignoring civil society, editorials, opinion polls, perspective, having a high degree of autonomy focus groups, and other types of survey research, from the state and from other social subsystems, which have questioned the representativeness of the media can be treated as independent and opinion of the press itself (ibid). Fourth, the idea objective agents, presenting the world “as it is,” of the press as a vehicle of democracy by means by simply “mirroring” or “reflecting” reality of providing vital information is also questioned, (ibid.). It is commonly believed by liberal media since the provision of entertainment is seen as thinkers, that the media truly express the values more profitable, which is at the expense of and beliefs of the majority of society, of which accurate information (ibid.). The position of the they function as mere “ventriloquists,” voicing press as an independent watchdog is also dominant public opinion (15: 119-125). The seriously undermined, as media business media are seen as providing a forum for public organized in large multinational profit-driven debate on important issues and articulating ideas corporations are seen as entering into complex that arise from it, serving as a mediatory agency and complicated relations with politics and the between citizens and the state in a relationship in government, seeking mutual advantage (ibid.). which the former are capable of exercising What the authors conclude on the nature of the supervision and control over the latter (14: 277). print media in this context is that: “This is a far This is to be guaranteed by the high standard of cry from the simple liberal image of the press as professionalism of journalists and media experts, a “public sentinel,” whose critical independence who are believed to be working energetically is to be secured through the freedom of the towards reaching consensus in society on market (14: 343). important issues, by articulating collective aims and needs and ensuring that the most important Another cornerstone within conventional liberal views of citizens are presented (15: 122). Being theories of the press in Britain is the role that free from state and political dependence, the advertising played in releasing the press from democratic function of the media is mostly to be state and political dependence (14: 7). guaranteed by the operation of the free market. Generally speaking, advertising did help the Its work is even compared to that of processes in press in Britain to overcome the political bias and electoral democracies, since every time newspapers were freed from political allegiances newspapers go on sale they face a situation financially and ideologically. This was the similar to political elections, being only publicly time, however, when press barons assumed accountable for what they present (ibid.). command over parties through economic

Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 193

GEORGIEVA-STANKOVA N. means, using newspapers as instruments of information flow in terms of privacy, libel, power that were already too expensive for the property rights, confidentiality, etc. (13). One latter to buy (14: 59). Instead of being important question that he asks is, if the owner dependent on the state and political parties, is the one who benefits from this freedom, however, Seumour-Ure contends that what about the rights of editors, journalists and newspapers became accountable to advertisers the public (13)? This, he considers, should be a and had to adapt themselves to the further focus of analysis in the discussion of requirements of markets and consumers (16: media freedom and responsibility. Last, but not 242). This meant that large circulation dailies least, McQuail posits the question of the limits started to be supported by big advertisers, of freedom, of the need to show social whereas small provincial and down-market responsibility in cases even if this is at the oriented newspapers failed to meet their expense of certain rights and freedoms. Apart requirements and quickly died out. Evidently, from existing liberal and radical theories economic factors, such as advertising profits within the paradigm of Western media, and access to financially stable companies McQuail and several other authors began to play an important role in newspaper (18)(19)(20) maintain that it might be business. In relation to this, some media necessary to create a “development theory” for scholars within the critical political economy societies in transition, where a free-market paradigm consider audiences, and not media media system is difficult to sustain, because of programmes, as the real product of the media certain deficiencies in terms of finance, (16). The media actually started delivering infrastructure and proper audiences (13). Such audiences to advertisers, who in their turn a theory could easily apply in the case of the became capable of skillfully shaping audience Bulgarian media and all transition societies. behaviour and producing new possible consumers (16). Studying both liberal and radical models, James Curran (14: 139-142) presents two Such arguments allow some key scholars in forms of media pressure: bottom-up pressure, British media studies to criticize the liberal or the potential of media agency for changing model of the historical emancipation of the social structure, and top-down pressure of British press as “mythical” and ideological. restrictions imposed on the media by powerful James Curran and Jean Seaton (14: 12), for groups in society. Some of the latter are example, argue for the necessity to recognize systematized in the following manner (ibid.): the constructed nature of particular media 1. Restrictions to market entry by high costs, discourses of press freedom and that of limiting competition and presenting ideological advertising as the “midwife” of press bias by news selection. independence. Their main argument in Power 2. Corporate ownership and increasing media without Responsibility (14: 1) is that: concentration influencing the ethos, editorial “…the British press [as] one of the great direction and market definition of the media, instruments of liberty, an independent fourth providing for a greater entertainment estate, the vital defender of public interests… orientation. [was] produced to justify those who created the 3. Accelerated processes of privatization, press and whose interests it largely served.” deregulation and expanding global media markets leading to advanced mono-media Similarly, Nerone (1995) states that: “The concentration (within particular media sectors) myth of the free press in service of society in most Western countries and the growth of exists because it is in the interest of media multi-media concentration both nationally and owners to perpetuate it” (cited in 13: 177). He globally. criticizes the free market within the liberal 4. Mass market pressures, related to the paradigm for the presence of economic benefits of economies of scale and the pursuit barriers, monopolistic conditions and for not of larger audiences, which excludes minority taking account of the economic difficulties in and alternative views and seeks consensual achieving access to representation (ibid.). In points of presentation and conventional issues this line of thought, Denis McQuail attempts to targeting a mass public. update the aforementioned opinions by posing 5. The economic weighting of consumer the question of the need to innovate the theory, demand leading to the under-representation of which would apply to novel media and low-income groups, as the media target the conditions. This means, speaking more about more affluent and those with higher consumer access to information and control of the power. Consequently, media tend to drift 194 Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011

GEORGIEVA-STANKOVA N. upscale because of their higher advertising bottom-up pressures that can be exerted on the expenditure. media and allow for greater agency on the part 6. Advertising censorship - advertising, as the of audiences (14: 154). “But how these main source of revenue, presupposes that any pressures are manifested - and even whether offense to advertisers’ products and policies counter pressures are presenting a significant should be avoided. form –depends on the specific context in which 8. Unequal division of power and resources – the media operate,” concludes Curran (ibid.), dominant discourses are more wide-spread and which should be the particular angle through easier to access, as the ones who promote them which we should proceed with this particular have more institutional, material and discursive research. power. THE “NEW” DEMOCRATIC MEDIA: If we have to summarize, the liberation of the TRENDS AND TENDENCIES media from state control does not necessarily The “new”i Bulgarian press, while claiming to mean achieving the ideals of freedom of have been set free from political influence and speech, diversity and pluralism. The free regulation, fell victim to the economic market is a system with its own internal trappings of the free market and to political governing principles which also exercise pressure and manipulation, while only overtly regulative functions on business practices. ceasing to perform the functions of partisan Opponents of the free-market theory blame interests, after the decline of the political press market forces for the decrease in diversity, and media. The reform in media policy, quality and moral responsibility. For one of regulation and accountability at the same time them, Ralph Negrine, a leading media and was slow, while the steps taken towards state communications scholar, it introduced a new emancipation, liberalization and privatization mode of censorship, “more powerful than were overhasty, unpremeditated and anything that had bee done before” (21: 9). For premature. As a consequence, strategic Stuart Hall, it is wrong to consider state economic and political allegiances have started dependence as the ultimate from of regulation exerting serious power over media content and equalize market policies to absolute through direct editorial control, gate-keeping freedom, as they both represent types of of information, bias in representation, control (22: 230), which Ralph Negrine calls programme choice, commercialization and the respectively “proper” and “improper,” tabloidization of press and electronic media depending on the nature of the restrictions they formats towards more entertainment, impose (21: 23). In general, the libertarian sensationalism and scandallousness. laissez-faire model is viewed as an ideological construct by free-market critics, where the 1. Top-down forms of media pressure sovereignty of the consumer and the emphasis The structural organisation of the mass media on competition are treated as ulterior motives and the existing patterns of ownership and for profit. control can be considered as preconditions for the interaction between political, economic and Nevertheless, radical media theories should not media elites, thus, influencing the construction remain uncritically reviewed. They have been of media discourses expressed in different strongly criticized for the excessive stress on forms of media framing, causing a variety of the domination theory of society and effects and responses. Despite the fact that the “dominant ideology,” as well as for the Bulgarian media are considered to have indoctrinating power the media is capable of overcome many of the negative legacies of the exerting (14: 130-132). New audience research totalitarian press, the new media picture is replete has been more directed towards audience with arguments of their continued dependence on autonomy, agency and discursive practices of new political or economic powers. interpretation. The multiplicity of ways of manifesting power and the greater diversity, 1.1. Political pressure complexity and multi-centred nature of Being only recently emancipated from the institutions and exercise of power are stressed, burden of official state censorship, the press as well as the ways in which it is being became an easy prey in complicated articulated (14: 132). What James Curran maneuvers of political gamesmanship. The advocates, is the need to re-evaluate the 1990s were dominated by the abundant deficiencies of both radical and liberal theories presence of party newspapers, such as Duma and account equally for the top-down and and Democracy. Gradually, however, with the Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 195

GEORGIEVA-STANKOVA N. turn of the new century, the press and the political figure in the media, but claims of mafia media became emancipated from expressing and grey economy money entering into political overtly the convictions of particular parties and gamesmanship through media outlets in recent the state. The free market, allowing for the years (30: 237-8). Equally important is the great advent of foreign media capital, private media pressure exerted on journalists dealing with and advertising started playing a defining role investigative journalism of important issues, such in media funding and in influencing editorial as drug trafficking, smuggling cigarettes and policy. Nevertheless, the intricate relationship medications (ibid.). between media and politicians did not decline, 1.2. Economic pressure - media ownership but was further enhanced, especially when and control combined with underlying economic interest. Economically speaking, the overall tendency in By such means, we could say that the media in European and global media is towards growing Bulgaria became even more dependent on concentration, despite tendencies of politicians, whose success was due to the multiplying the availability of new broadcast application of economic tools and regulatory media, which is in no case a guarantee for pressure within a context of an underdeveloped diversity in representation and expressing media market, shadowy economy, unstable minority perspectives. Media get more and media institutions, poor legislation and low more concentrated into the hands of a few cultural practices (25: 222). magnates or corporations, facilitated by

The extreme political dependence of the processes of digitization. With the switch-off Bulgarian media was pointed out in several of analogue television, for example, it is early country reports (26) (27). They considered that large international media emphasized the combination of political corporations will be given even greater pressure, economic problems and chaotic advantage as compared to small-scale local legislation in all Southeastern European players, who don’t have money to invest in countries in general (28). This resulted in overt numerous channels and produce adequate forms of censorship and reluctance to criticize content for them (32: 5-6). Media governmental policies (ibid.). Although the concentration is a global phenomenon, related press was already assumed to be politically to a number of transnational companies, independent, journalists continued to conform leading to decreased competition, since to a particular editorial policy, reflecting imposing specific media regulation, especially political allegiances (ibid.). regarding monopolies and competition rules, is a difficult task. Such companies expand Growing concern of the convergence of non- horizontally and vertically and benefit from transparent economic with political power has natural economies of scope and scale in the been expressed in recent years (29). At the same media sector, as they manage to spread costs time, the media shifted their attention from across wider geographic and product markets expressing collective party interests towards (4: 4-5). In general, advantages are drawn by slowly gravitating around a single political figure such large media corporations from media of authority, to name just a few, like King convergence and cross-media ownership, Simeon II and Sergey Stanishev (30: 229). This which restrict the actions of local media agents has reached its apogee of “media engineering” in (ibid.). Problems regarding the transparency of the construction of the image of the present ownership also exist on a global scale, as Prime Minister, Boyko Borisov, which can be markets and patterns of ownership become described as an elaborate media product, despite fuzzier and more complicated. A problem is lacking any of the accumulated cultural capital of that EU legislation does not deal directly with his predecessors (ibid.). A great deal in the successful promotion of such an image is issues regarding the control of media attributed to the utilization of good PR ownership (32: 7-8). Patterns of media techniques (30: 232). According to research regulation vary in different countries. It is carried out by “Media Democracy Foundation,” usually the practice that control on media Boyko Borisov is the person with highest media activities aiming to guarantee diversity and coverage (31). This has been defined as the pluralism exists only on national level (ibid.). process of media “personalization of politics,” An EC Merger regulation can provide for placing at the centre of attention not state certain thresholds of concentration, which are institutions and political parties, but a single to be monitored by a special Commission on personality (30). What sounds even murkier is national level. Nevertheless, problems exist not the overwhelming presence of a particular with the quantitative methodology for defining 196 Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011

GEORGIEVA-STANKOVA N. these specific thresholds for concentration, systems of power enforcement evolve” (5: with the very definition of concentration, as 490). Analyzing the anatomy of a “switch,” the well as with vertical concentration, since authors conclude that “switchers” are the general competition law cannot be applied actors, or networks of actors, who are capable adequately in such cases (ibid.). Still, anti-trust of providing interface and connectivity and merger control principles and competition between dominant social networks with law are seen as essential in guaranteeing compatible goals and communication freedom of expression, although they are protocols, because of their specific structural deemed insufficient, because of the underlying position in these strategic social networks (5: economic principle in the latter, which cannot 490). Rupert Murdoch is seen as one of these restrict cross-ownership and cross-country “switchers,” exercising power in the network consolidation barely on concerns regarding the society by connecting media, business and freedom of speech (32: 9). Most importantly, political networks (ibid.). This is done in Member States are left with the power to create several ways, according to the article, namely specific legislation on media ownership. A by vertical control and horizontal networking, reservation is made, however, that plurality the pursuit of market expansion and the will not necessarily be defended in such cases, leveraging of public and elite political opinion as Member States may rather decide to boost (ibid.). The political power of NewCorporation national economy interests than free and is similarly perceived as being obtained by diverse expression. Therefore, it will be means of global penetration and vertical necessary to introduce and develop new ways control, by the provision of financial of guaranteeing plurality and the proper contributions and exerting influence on functioning of democracy (ibid.). editorial content, which allow Murdoch’s corporation to expand, while political actors What is the actual nature of power wielded by grant him regulatory favours, aiming to such large media corporations? Let’s take for provide larger audience shares, “which in turn example Rupert Murdoch’s NewsCorporation. expands its political clout, creating a cycle of The end goals of men steering the activities of influence” (5: 497). large transitional media conglomerates, such as Rupert Murdoch, might be of purely economic A longer presentation of the findings of this nature, the mere maximization of profit, but article was necessary, since global actors of the means and ends for achieving them involve network society, such as Murdoch, had a a variety of strategies, conclude Manuel significant presence on the Bulgarian media Castells and Amelia Arsenault (5). Such media market until recently. Additionally, the organizations constitute the locus at which underlying principles of the functioning of different forms of power are articulated, media power exerted by large media namely social, economic and political (5: 489). conglomerates can be seen as similar on the Hypothesizing on the nature of power in the Bulgarian market. Nevertheless, in this case, network society, they regard media power as global actors and their strategies, typical of being of Foucauldian nature, allowing for the developed capitalist markets, have been forced complex, multi-centred and contradictory to interplay with local conditions of an character of the relation between media and underdeveloped capitalist market, shadowy political actors (ibid.). Figures like Murdoch, economy, unstable media institutions, poor standing on top of such large media empires, legislation and low cultural practices (30: 222). are seen as performing the role of “switchers,” who serve as a “connection point between One of the most notable events in the political, economic and media networks that liberalized Bulgarian media market in the last facilitate their cooperation by programming twenty years has been the rapid advancement common goals and resources,” having as an of foreign capital, transnational media ultimate goal the expansion of their corporations and the concentration of media corporations (ibid.). Such critical nodes of ownership. Initially, the first steps were made network society are seen as functioning by in the print media by the German consortium means of inclusion and exclusion as a Westdeutsche Allgemeine Zeitung (WAZ) in mechanism of domination. Nevertheless, no the 1990s. WAZ bought the highest circulation particular power elite is believed to be Bulgarian newspapers, Trud and 24 Hours, “capable of controlling the programming and which provided it with a monopolistic position, switching operations of all critical networks taking advantage of the imprecise monopolies that subtler, more complex and negotiated legislation. It attracted about one-third of the Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 197

GEORGIEVA-STANKOVA N. readership of the whole Bulgarian press and cross-media ownership (Magazines Publishing commanded 38.5% of the advertising market House: Perfect Home, Autobuild, Décor and in 2002 (33). The skilful market and legislative High Club and Bulgarian Farmer Company: manoeuvres of the consortium provoked Bulgarian Farmer, Hobby Farmer) (37). continuous legal procedures against WAZ, Previously, they were even suspected of starting as early as 1996. In 1996 WAZ having interests in the electronic media, newspapers waged a media war against the rest namely in TV 7. Additionally, their business of the press by dumping their prices. John expands vertically, owning publishing and Downey (34: 56) interpreted the strategy of distribution companies. WAZ as an example of Western colonisation of the press in Bulgaria, similarly to other Despite initially declaring support for non- countries, such as Hungary and the Czech interference in editorial policy and media Republic. The economic dominance of WAZ pluralism (37), serious scandals between the press was further described by Alfandari (35: co-partners have revealed grave problems 143) as a well-disguised political manipulation regarding the appointment of editors-in-chief with the purpose of changing editorial policy, and taking unilateral decisions (38). What simulating bankruptcy and finding new actually happened was that shares were owners. Additionally, WAZ was seen as the transferred to the name of Donev and Pavlov second “instrument of those in power to secretly on a Sunday from Bulgaria Print discreetly rule over the public space with the Media, turning one of the partners, Media help of the press” (ibid.). We should mention Group Bulgaria Holding, into a majority that the statement refers to a period in which shareholder with 83%, while leaving Privat the socialist and subsequently the democratic Invest GmbH. with only 9% (38).This was government of the UDF were in power. The described as one of the most ruthless cases of advent of the private press in cooperation with hostile acquisition in the history of the Bulgarian media, similar to that typical of ruling politicians were the main reasons that ii Alfandari stated as responsible for the absence extreme cases in the Russian media . of true public service media and socially Numerous theories evolved in the media responsible journalists (35: 145). The two around the scandal, involving the biggest WAZ newspapers, Trud and 24 Hours, were alcohol producer Vinprom “Peshtera,” for the author the most powerful media tools suspected of attempting to gain a management for establishing a monopoly status in the public position, as well as other big owners of media sphere and directing public opinion and empires (36). people’s reactions by creating mass psychosis One of them, New Bulgarian Media Group, and redistributing political, media and rose in the recent years. Its owner, Irena economic space (35: 142). Despite the Krasteva, the former Chair of the National existence of several circulation press wars in Lottery, currently possesses the national dailies the early and mid-90s and the changes in Monitor and The Telegraph, the weekly legislation, the work of the Monopolies Politics, the sports daily Meridian Match and Commissions proved inefficient to overthrow the yellow sports paper Express (renamed to the dominance of WAZ. Zasada). The regional newspapers: Borba and Recently, however, we have witnessed the end Maritsa and IPK Rodina printing house are of the “WAZ era,” as the consortium sold their also Kratseva’s property. While previously newspapers to Bulgaria Print Media on Dec. Krasteva’s papers generally supported the 14, 2010, after more than a year of serious socialist government and attacked the then negotiations. The former WAZ newspapers are Mayor of Sofia, Boyko Borisov, soon they actually co-owned by Media Group Bulgaria shifted allegiances in his favour, after his Holding, which publishes Trud and 24 Hours, election as Prime Minister (40). This turn is with 47% of the shares, represented by Ognyan associated with GERB’s winning the elections Donev and Lubomir Pavlov, and the Austrian in 2009 and the succession of the media throne partners Privat Invest GmbH. with respectively by Irena Krasteva’s son, Delyan Peevsky. The 53% represented by Hristo Grozev and the New Bulgarian Media Group also owns the Austrian partners Karl Habsburg and Daniel tabloid formats Weekend, Shock, Contra, two Rutz (36). The new owners of the 168 Hours television channels BBT and TV7 and the Publishing House, including 168 Hours Daily Internet websites BNews and Every day. and 24 Hours, as well as of Media Holding Publishing (publishing Trud) are involved in 198 Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011

GEORGIEVA-STANKOVA N. The sale of 50 % of Vivacom to the Cyprus their sales bid, with the help of Turkish soap Mancelort Limited company in 2010, operas. represented by Tsvetan Vassilev, managing Director of Cooperative Trade Bank, is treated Concentration has been typical of the as another emblematic transaction in recent advertising business as well, leading to one years. The new-owner, the National Office for important name, that of Krassimir Guergov, Radio and Television Systems Bulgaria owner and president of Kres Advertising (NORTT), succeeded the monopolistic Agency and former bTV’s consultant, who is position of the former owner in the field of considered one of the big names in advertising television and radio transmission for the monopolies (36). For him it has been publicly country. This is considered to be extremely surmised that he is one of bTV’s undisclosed important within the current economic and shareholders, as it was until recently forbidden political context of air frequency distribution by law to merge advertising with television (25: 225-226). ownership. Nevertheless, the Radio and Television Act has been recently changed and The advent of big press foreign capital was this amendment became unofficially known as also mirrored in the electronic media. First, the the Amendment “Guergov,” aiming to legalize Greek media company Antenna Group bought his ownership of shares in bTV (45). Spassov Nova TV in 1998 and was followed by considers this an example of the different Murdoch, purchasing bTV and subsequently undercover relations between media and bTV comedy, bTV Cinema and bTV Action. politicians, related to granting regulation Until recently, in 2009 Murdoch’s favours to media owners (25: 223-224). NewsCorporation had 42% of the audience Currently, however, Guergov is officially share, while MTG Group (Modern Times known to possess only 6 % of the shares in Group), the company that acquired Nova TV in bTV (Neikov, 2010 quoted 31: 224). 2008, 29 %. The CME group (Central Media Enterprises Ltd.), Murdoch’s successor, had Apart from the press and the electronic media, only 3 % at the time (41). The intention to sell we could mention that other foreign companies the two big national channels was the reason operating in the magazines and book for the strong competition between bTV and publishing business, such as the German Nova and the increasing drive for ratings’ Springer and the cable provider Eurocom, boosting. Nova was bought as early as July owned by the Southeast Equity Fund and 2008 by the Swedish MTG for 620 million funded by Soros Private Fund Investment (46). Euros, which also bought the Diema Family 1.3. Media regulatory models and problems Group on the Bulgarian TV market. The in media accountability, regulation and Bermuda-based American CME, owned by legislation Ronald Lauder, bought at the time TV2 (later What is the situation in Bulgaria regarding re-branded to PRO.BG) and Ring TV, and debates on media accountability, regulation, showed strong interest in bTV (42). Krasimir control and legislation? Initially, in the first Guergov, media consultant for News years of democratization a strictly libertarian Corporation and CME for Bulgaria, declared model was adopted towards laissez-faire, the intention to sell bTV for a much higher market accountable media, freed from the price than Nova before 24 Hours Daily (43). restrictions of the paternalistic state. The main This happened much later in January 2010, but direction in broadcasting has been towards in times of financial crisis, the negotiated price market liberalization, deregulation, was only US $400 million (44). What was privatization and commercialization in the typical of the two main private TV giants on years to come. As a result, the Bulgarian the Bulgarian market was the strong lean National Television (BNT) remained the only towards entertainment, sensationalism in news stronghold of public service broadcasting. coverage and strong commercialization. They Commercial private channels and cable attracted the attention of advertisers by television networks multiplied throughout the drawing large audiences as potential years, after the sale of the second national consumers. This was done with the help of electronic television provider and the arrival of particular prime-time ratings’ leaders, such as a third channel with national coverage, typically global formats, like reality shows Murdoch’s commercial bTV in 2000, which (Big Brother, VIP Brother, Music Idol, Dances has been the ratings’ leader ever since. with the Stars, etc.), and short before making

Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 199

GEORGIEVA-STANKOVA N. The public service model in Bulgaria, failed to prove efficient enough in the rapidly represented by the Bulgarian National changing media environment. As almost Television (BNT), the former media leader, everywhere in Europe, the overall tendency in was seen as problematic for a number of years. the Bulgarian broadcast media has been The BNT was in a serious downturn in terms of towards state deregulation, privatization and ratings and audience share for a whole decade free-market orientation. since the arrival of the commercial media. The only ratings’ magnets for the BNT were As far as the press is concerned, its status had broadcasts of big sports events, while both to be defended many a time, with opinions regarding its function as a quality production varying from the need for press legislation, to provider and the main agent and arena for complete self-regulation and currently, towards voicing public concerns remained muted. It new demands for greater state and legislative failed to reach wide audiences because of its control equally in matters of print and poor programme policy, attracting increasingly broadcast media. Press self-regulation has been elderly viewers. On the other hand, private a point of concern, despite several proposals to media had serious objections against the draft a Press Law in the early 90s. Later double system of funding of the public service developments in the press debate led almost to provider, including state support and mutual consensus that self-regulation was the advertising revenue. Special provisions were only desirable and efficient form of voluntarily also made for introducing a television levy, imposed control (50). The Bulgarian Media which, however, never worked. Nevertheless, Coalition (BMC) also issued a declaration in after changes in BNT’s management in 2010, which it stated its determination to oppose any serious steps were taken towards improving its governmental or political intervention in the popularity, audience share, ratings and overall form of a Press Law (51). Self-regulation as a programme policy. policy presupposes the insistence on press independence from any governmental, political What media regulatory bodies, legislation and or legislative form of control and the need for policies exist in the country? strengthening forms of professional and public A media supervisory body called National accountability. Nevertheless, the efficient Council for Radio and Television (NCRT), functioning of the Journalistic Code of Practice later re-named to Council for Electronic Media to regulate press activities remained only a (CEM) is responsible for overseeing public vague idea for a number of years, with no service broadcasting, as well as for the precise understanding of the principles of licensing commercial broadcasting. Its media ethics and non-statutory advisory bodies members are chosen by Parliament and the to be held accountable to. Recent mounting President. For a number of years, the media discontent with the extreme economic and and the journalistic guild looked at CEM as a political clout exercised on the media as well body exerting direct control on their activities as growing media concentration and non- (47). On the other hand, its work was not transparent ownership, have shed new light on found to be efficient in solving the problem of self-regulation. There is a growing conviction political control and censorship (ibid.). among media experts and the journalistic guild Furthermore, it was even accused of serving that the freedom of speech should be protected the needs of the parties in power (38). Political from political and corporal interest by legal interests seemed to merge with economic, means and by increasing state participation in supported by legislative means, especially in media regulation (52).Therefore, a proposal cases of appointing managerial staff and media has been made to draft comprehensive media supervisory bodies (48).Changes in media legislation that would cover all media legislation were seen as slow and accompanied (electronic and print) with the purpose of by a number of scandals, related to procedures serving as a safeguard against unfair of electing members of the Council, managers competition and the absence of mature market of the national broadcast media, and the very conditions to guarantee public accountability legitimacy of their work (49). (ibid.). According to Georgy Lozanov, Chair of CEM: A special Radio and Television Act regulates “Despite decreased direct state regulation in the broadcast media (1996), the initial drafting the media, the freedom of speech has been of which took almost six years. Numerous declining, as it has been reported by amendments had to be made to the law in the international organizations.[…] Until now, subsequent years, which have nevertheless, during the years of transition, every time 200 Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011

GEORGIEVA-STANKOVA N. government interference in the press was mentioned, publishers reacted vehemently. Certain progress in terms of the transparency Now, for the first time the general trend is of ownership has been achieved recently with rather shifted in the opposite direction and the the passing of an amendment to the Radio and state is expected to facilitate the maintenance Television Act, demanding the declaration of of loyal competition” (ibid.). press ownership by proprietors in the Ministry of Culture at the beginning of each year (52). This marks a significant ideological turn in Nevertheless, this is still a minor step, because media regulation: from a libertarian, free- of complications caused by cross-ownership market and laissez-faire model, towards a more schemes and rapid changes in media property. paternalistic and socially responsible one, to What important steps can be taken to guarantee guarantee the freedom of expression media independence, responsibility and the independent of particular interests of ruling freedom of speech? What has recently been local and global elites. proposed by media regulators, the professional journalistic guild, as well as by a number of The freedom of speech has additionally been media owners are the following issues:iii obstructed by legislative means. Media 1. Drafting comprehensive media legislation to legislation until recently provided for cover all media (broadcasting and press) and excessive measures in the cases of libel and guarantee the transparency of media ownership defamation, such as imprisonment of up to and loyal competition. A problem, which has three years. The vulnerability of investigative to be tackled also at EU level. journalists to criminal groupings provoked a 2. Improving merger, competition and anti- massive campaign for amending several trust legislation to curb media concentration. articles of the Criminal Code and for the 3. Adopting measures for guaranteeing adoption of a well-defined Code of Practice for editorial independence and pluralism through journalists. Despite attempts to draw the efficient dialogue. attention of the journalistic guild and civil 4. Fostering bottom-up agency and models of society on national and supra-national level, no pressure of different civic and professional significant changes have occurred since. The circles to help promoting alternative views, only change so far has been the replacement of using different sources of information, improve the prison sentence with excessive fines for minority representation and professional journalists, which happened in 2000. The standards (16: 142-147). power of the judiciary to initiate libel legal 5. Strengthening public service media and proceedings remained, as well as the treatment adopting a social market strategy, following of libel as amenable to the Criminal Code. the Scandinavian model, for exerting greater Strasbourg appealed to the Bulgarian state to control on the private media and providing decriminalize libel and defamation on a economic aid to minority and financially week number of instances in 2006. The problem was media (ibid.). posed on the agenda once again recently by the OSCE representative at a media forum in May CONCLUSION 2011 (53). Despite such international pressure, What could be inferred from the tendencies an MP from the Ruling GERB party, Krassimir presented in the Bulgarian media against a global Velchev, made a proposal for introducing new context of media ownership, control and libel legislation in the media at the beginning regulation, is that they have actively been of 2011.Certain Rules of Journalistic Ethics involved in global processes of concentration of have been adopted by the Union of Bulgarian media capital, cross-media ownership, Journalists, which was a serious step towards diversification, vertical and horizontal market press self-regulation. Nevertheless, some expansion in the endless pursuit of market problematic areas concern the fact that unlike expansion and profit of transnational and newly- developed local actors. This has created serious other journalistic codes, such as that of the problems to regulatory bodies and undermined British Press Complaints Commission (PCC), traditional convictions that there is a need to Bulgarian journalists bear the whole deregulate electronic media and allow more responsibility for their actions. It has been space for self-regulation through professional argued that it is necessary to accept the rule of codes of ethics and standards. The very editorial and institutional responsibility rather insistence on the free market’s liberating force than personal amenability, as the individual from any state dependency and its self-regulatory journalist can hardly be held liable for the capacity, have been shaken, with growing overall policy pursued by the institution (54). concerns about media concentration, putting at Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 201

GEORGIEVA-STANKOVA N. risk the freedom of speech in the country. The 11. Hall, St. et al., Policing the Crisis. Mugging, coupling of economic and political rationality of the State and Law and Order, London: interests, channeled through direct media control MacMillan, 1994. of expression and selection of content testify to 12. Herman, E. and Chomsky, N., the enormous power being accumulated in the Manufacturing Consent, New York: hands of big media corporations with faceless Pantheon, 1988. proprietors and interests behind them, seriously 13. McQuail, D., Mass Communication Theory, endangering the proper functioning of the media London: Sage, 2000. as a public sphere, voicing and negotiating 14. Curran, J and Seaton, J., Power without important social concerns. Mass media should be Responsibility. The Press, Broadcasting and considered more than ever as being the locus and New Media in Britain, London: Routledge, channel of power, which similar to markets needs 1991. to be veered in the right direction to reflect the 15. Curran, J., “Rethinking Mass democratic principles of social justice, equity, Communications”, in Curran, J., Morley, D. pluralism and freedom of expression. and Walkedine, V. eds.,. Cultural Studies and Communications, London: Arnold, REFERENCES pp.119-168. 1996. 1. Curran, J., “Capitalism and Control of the 16. Seymour-Ure, C., 2nd ed., The British Press Press, 1800-1975,” in Curran, J., M. and Broadcasting since 1945, Oxford: Gurevitch and J. Wooollacott eds. Mass Blackwell, 1996. Communication and Society, London: 17. Smythe, D.W., “Communications: blindspot Edward Arnold, 1997. of Western Marxism”, Canadian Journal of 2. “There is a decline in the freedom of Political and Social Theory, I: 120-7, 1977. speech”, Novinar, May 11, 2011, 18. McQuail, D. Mass Communication Theory: (http://novinar.bg/news/ima-spad-v- an Introduction. London: Sage. 1983. svobodata-na-slovoto-otchitat-i-ot- 19. Altschull, J.H., Agents of Power: The Role of sem_MzU3NDsyNQ==.html) (accessed on the News Media in Human Affairs. New May 31, 2011) York: Longman. 1984. 3. Georgy Lozanov, BNT Evening News, May 20. Hachten, W.A. The World News peism: 30,2011.(http://bnt.bg/bg/videos/productions Changing Media, Changing Ideologies. (accessed on May 31, 2011). Ames, IA:Iowa State University Press, 1981. 4. Doyle, G., Media Ownership: the Economics 21. Negrine, R.,. Politics and the Mass Media, and politics of Convergence and London: Routledge, 1994. Concentration in the UK and European 22. Hall, St., “The Centrality of Culture: Notes Media, London: Sage, 2002. on the Cultural Revolutions of our Time”, in 5. Arsenault, A. H. and Castells, M., “The Tompson, K. ed., Media and Cultural Structure and Dynamics of Global Multi- Regulation,. Milton Keyness: The Open Media Business Networks.” International University, pp.207-38, 1997. Journal of Communication, (2), 707-748, 23. Znepolski, I., The New Press and the Period 2008. of Transition, Sofia Citizen Association, 6. Golding, P. and Murdock, M., “Culture, Bulgarian Academy of Sciences, p.5, 1997. Communications and Political Economy,” in 24. Spassov, O., „Медиите и политиката: Curran, J. and Gurevitch, M. eds., Mass залезът на четвъртата власт?” (“Media and Media and Society, London: Edward Arnold, politics: the Decline of the Fourth Estate?”), 1991. in Lozanov, G. and Spasov, O., eds., 7. Curran, J., “Advertising and the Press,” in J. „Медиите и политиката,” (Media and Curran ed., The British Press, London: Politics), Sofia: Media Democracy Macmillan, 1978. Foundation and Conrad Adenauer 8. Curran, J., “Mass Media and Democracy: A Foundation, South-Eastern Europe Media Reappraisal,” in Curran, J. and Gurevitch, M. Programme, pp. 221-240, 2011. eds., Mass Media and Society. London: 25. Kapital, March 10, 2002. Edward Arnold, 1991. 26. Kapital, April 13, 2002. 9. Curran, J., Media and Power, London: 27. Brunnbauer, Ulf and Grandits, Hannes, Routledge, 1996. Gruber, Siegfried, Kaser, Karl, Pichler, 10. Hall, St., “Media Power and Class Power,” Robert, and Promitzer, Christian, eds., in J. Curran, J. Ecclestone, G. Oakley and R. Education and Media in Southeast Europe: Richardson eds., Bending Reality, London: Country Reports, Vol. 2, CSBSC's (Center Pluto, 1986. for the Study of Balkan Societies and Cultures, University of Graz), 1999.

202 Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011

GEORGIEVA-STANKOVA N. 28. Lozanov, G. and Spassov, O., eds., (http://hardwarebg.com/news-corporation- „Медиите и политиката,” (Media and agrees-sale-of-btv-to-cme/) (Accessed on Politics), Sofia: Media Democracy June 17, 2009). Foundation and Conrad Adenauer 44. “In Favour of Krasimir Guergov or against Foundation, South-Eastern Europe Media his monopoly”, Bulgaria News, 28 Jan, Programme, 2011. 2010, (http://www.bulgaria- 29. Spassov, O., “Media and Transition,” in news.bg/category/bulgaria/media/article/post Lozanov, G, Deyanova, L. and Spassov„ O., 18930.html) (Accessed on June 8, 2011). eds., Медии и преход” (Media and 45. “Eastern Empires: Foreign Ownership in Transition), Sofia. Alex “G.” Printing, Central and Eastern European Media. Centre for Media Development, pp. 16-45, Ownership, Policy Issues and Strategies”, 2000. European Federation of Journalists, Brussels, 30. Kapital, June 29, 2010. 2004. 31. Media Power in Europe. The Big Picture of 46. Popova, Kapital, #39, Sept. 2001. Ownership, European Federation of 47. Popova, Kapital, #10, March, 2002. Journalists, Brussels, 2005. 48. Kapital, #42, Oct. 2001; Kapital, #43, Oct. 32. Kapital, April 24, 2002. 2001. 33. Thussu, D.U., Electronic Empires. Global 49. Lozanov, G. and Behar, M., BMC Website, Media and Local Resistance, London: Session 3: 1-15, Bulgarian Media Coalition. Arnold, 1998. (http://www.mediator.online.bg.); Naidenov, 34. Alfandari, E., „Медиите и властта. Kultura, #07, Feb. 2002. Журналистиката между свободата на 50. Sega, July 29, 2002. словото и социалната отговорност” 51. “A New Media Law is Drafted”, Kapital. (Media and Power. Journalism between the June 18, 2010. (Accessed on June 14, 2011). Freedom of Speech and Social (http://www.capital.bg/blogove/za_medii/20 Responsibility), Sofia: TILIA, Acad. 10/06/18/919646_podgotvia_se_nov_medien Publishing “Marin Drinov,” 2000. _zakon/) 35. Dnevnik online: “The new owners Donev 52. “The Freedom of Speech: Facing the and Pavlov: There’s no scandal and change Challenges of Democratic Development” in ownership,” March 30, 2011, Conference (Sofia, May 30-31, 2011), (www.dnevnik.bg/pazari.2011/03/30/106801 Organized by International Organisation of 2) (Accessed on June 8, 2011). La Francophonie, 'the EC and Robert 36. “The new owners of WAZ newspapers won’t Schuman Foundation). close down papers” Dec. 15, 2010, 53. “Transparency of Ownership and Freedom (www.bulphoto.com/events/23075) the Media in Bulgaria” Round table (Accessed on June 8, 2011). (Organized by Conrad Adenauer Foundation, 37. TV 7 morning edition March 28, 2011. Oct. 2010). 38. “Lubomir Pavlov and Ognyan Donev – pirates of Russian–Ukrainian type?” Blitz Notes: News, (www.blitz.bg/news/article/104461) i The notion of the ‘new’ Bulgarian press was first (Accessed on June 8, 2011). used in 1990 and popularized by a number of 39. “Delyan Peevsky’s career – MP and media authors (24). According to Znepolsky, it was crated magnate”, 24 Hours online, April 4, 2011 to make visible the boundary between the old, (http://www.24chasa.bg/Article.asp?ArticleI centrally-controlled and ideological press under d=849290) (Accessed on June 8, 2011). communism and the aspirations towards creating a 40. CME Full Year 2010 Earnings Call, CME new, pluralistic, free of censorship, market-oriented official website(Accessed on June 8, 2011). press. Nevertheless, for Znepolsky (24), the term (http://www.cetv- does not signify a qualitative change, but rather a net.com/file/u/presentations/cme_q4_2010_c change in the social, economic and political status onference_call_presentation.pdf) of the press. ii Known as “raiding cases” or a certain form of 41. “Nova was sold for 620 mln. Euros,” “piracy,” of “forceful invasion into private Vesti.bg, 31 July, 2008, property” by mafia groups in conditions of (http://www.vesti.bg/?tid=40&oid=1221696) uncertain democracy and corrupt state practices (Accessed on June 17, 2009). (defined by Artiom Pavlov in (39)). 42. “Swedes bought Nova TV for 620 mln. iii In a brief summary of the problems under review Euros” July 31, 2008, Dnes, Dir.bg, and following proposals by the European (http://dnes.dir.bg/news.php?id=3249188) Federation of Journalists (53), as well as by the (Accessed on June 17, 2009). round table entitled ‘Transparency of Ownership 43. “News Corporation has Negotiated the Sale and Freedom the Media in Bulgaria” (54). of BTV”, hardwareBG.com, Trakia Journal of Sciences, Vol. 9, Suppl. 3, 2011 203