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Institut Für Rundfunkökonomie an Der Universität Zu Köln f Institut für Rundfunkökonomie an der Universität zu Köln Aleksandar Todorov The Broadcasting System in Bulgaria at the End of the Analogue Age. An Economic Perspective Working Papers of the Institute for Broadcasting Economics at the University of Cologne No. 261 Cologne, in January 2010 Arbeitspapiere des Instituts für Rundfunkökonomie Working Papers of the Institute for Broadcasting Economics ISSN der Arbeitspapiere: 0945-8999 ISSN of the Working Papers: 0945-8999 ISBN des vorliegenden Arbeitspapiers 261: 978-3-938933-65-7 ISBN of the Working Paper at hand: 978-3-938933-65-7 Schutzgebühr 21,-- € Price 21,-- € Die Arbeitspapiere können im Internet eingesehen und abgerufen werden unter der Adresse http://www.rundfunk-institut.uni-koeln.de The Working Papers can be read and downloaded from the Internet URL http://www.rundfunk-institut.uni-koeln.de Mitteilungen und Bestellungen richten Sie bitte per E-Mail an: [email protected] oder an die unten genannte Postanschrift Messages and Orders to the Institute can be sent via Email to: [email protected] or to the mailing address below. Institut für Rundfunkökonomie an der Universität zu Köln Hohenstaufenring 57a 50674 Köln Telefon: (0221) 23 35 36 Telefax: (0221) 24 11 34 Aleksandar Todorov The Broadcasting System in Bulgaria at the End of the Analogue Age. An Economic Perspective List of Figures......................................................................................................5 List of Tables.......................................................................................................6 List of Abbreviations............................................................................................7 1. Introduction ..................................................................................................9 1.1. Purpose of the Work..............................................................................9 1.2. Approach .............................................................................................10 2. Theoretical Framework for the Evaluation of Broadcasting Systems ...11 2.1. Broadcasting as a Good ......................................................................11 2.2. Institutions Providing Broadcasting Programmes ................................12 2.2.1. The Market.................................................................................12 2.2.2. The State ...................................................................................15 2.2.3. The Voluntary Sector .................................................................15 2.3. The Funding of Broadcasting: More than a Financial Issue.................16 2.3.1. Funding Influences Broadcasting Output...................................17 2.3.2. Revenue Structure, Internal Incentives and External Forces.....21 2.4. Revenue-based Classification of Broadcasting Systems.....................23 2.4.1. Basic Types of Broadcasting Systems.......................................24 2.4.2. Broadcasting Systems Classification Using a ‘Magic Triangle’..25 3. Context of the Bulgarian Broadcasting System ......................................29 3.1. Political and Social Environment..........................................................29 3.1.1. Political Background ..................................................................29 3.1.2. Civil Society in Bulgaria .............................................................34 3.2. Economic Environment........................................................................37 3.2.1. Economic Development.............................................................37 3.2.2. Media Economy.........................................................................39 3.3. Legal Environment...............................................................................42 3.3.1. Freedom of Expression in the Constitution ................................42 3.3.2. Broadcasting-specific Legislation...............................................44 3.4. Technological Environment..................................................................46 4 Table of Contents 4. Organisation and Funding of the Bulgarian Broadcasting System ...... 51 4.1. Structure of the Broadcasting Sector .................................................. 51 4.1.1. Radio Broadcasting................................................................... 51 4.1.2. Television Broadcasting ............................................................ 52 4.2. Regulation and Licensing.................................................................... 54 4.2.1. Regulatory Authorities............................................................... 54 4.2.2. Licensing System ...................................................................... 59 4.3. Public Broadcasting ............................................................................ 61 4.3.1. Public Broadcasting Services.................................................... 62 4.3.2. Funding of the Public Broadcasters .......................................... 64 4.3.3. Governance of the Public Broadcasters.................................... 67 4.3.4. Programme Framework............................................................. 71 4.4. Commercial Broadcasting ................................................................... 73 4.4.1. Commercial Broadcasting Services........................................... 73 4.4.2. Funding of the Commercial Broadcasters ................................. 74 4.4.3. Ownership Structures and Concentration.................................. 77 4.4.4. Programme Framework............................................................. 81 5. Evaluation of the Bulgarian Broadcasting System................................. 85 5.1. Status Quo of the Bulgarian Broadcasting System ............................. 85 5.1.1. Consideration of the Revenue Structures.................................. 85 5.1.2. Consideration of the Programme Output................................... 89 5.2. The Impact of Digitalisation................................................................. 91 5.2.1. Digital Broadcasting: Changing the Environment...................... 92 5.2.1. Regulatory Framework for the Digital Switchover ..................... 93 5.2.2. Impacts on the Status Quo........................................................ 96 5.3. Alternative Funding of Public Service Broadcasting............................ 98 5.3.1. Alternative Funding Sources ..................................................... 98 5.3.2. Enforcement of the Alternative Funding .................................. 100 5.3.3. Impacts on the Status Quo...................................................... 102 6. Conclusion ............................................................................................... 109 Appendix......................................................................................................... 113 References ..................................................................................................... 121 Todorov: The Broadcasting System in Bulgaria 5 List of Figures No. Title Page 1 The Sources of Funding for Broadcasting ...........................................18 2 Interdependence between Goals, Content and Funding......................20 3 The National Broadcasting Ecosystem................................................22 4 Graphical Exposition of the Revenue Structures of Broadcasters .......25 5 ‘Pure’ and ‘Mixed’ Forms of Broadcasting Funding..............................26 6 Composition of the Bulgarian National Assembly, 2009 (No. of Seats of Total 240)...................................................................33 7 Structure of the Bulgarian Economy, 2008 (% Share of GVA).............38 8 Net vs. Gross Advertising Expenditure in Bulgaria, 2002-2008 ...........41 9 Shares of Advertising Expenditures in Bulgaria, Net vs. Gross, 2008.............................................................................42 10 Cable Network Operators and Cable Networks in Bulgaria, 2004-2008.........................................................................47 11 Audience Shares of Main Bulgarian Radio Stations, August 2009 ......52 12 Audience Shares of Main Bulgarian Television Channels, 2008..........54 13 The Broadcasting Regulatory System in Bulgaria................................58 14 Advertising Market Shares of Main Television Channels, 2008...........75 15 Graphical Exposition of the Reallocated Revenue Structures of Main Bulgarian Broadcasters by Sector...........................................88 16 Radio and Television Programme Output in Bulgaria by Genre, 2008..................................................................90 17 Effects of Establishing the Radio and Television Fund......................104 18 Effects of Establishing an Independent Broadcasting Fee System in Bulgaria ......................107 19 Prime Ministers and Main Supporting Parties of Bulgarian Governments, 1990-2009 .............................................114 6 List of Tables List of Tables No. Title Page 1 Four Basic Types of Broadcasting Systems......................................... 24 2 Television Distribution in Bulgaria, 2000 and 2008 ............................. 46 3 The Programmes of BNR and BNT, 2008........................................... 63 4 Breakdown of Revenues of BNR and BNT for 2004, 2006 and 2008 in EUR Million.............................................. 65 5 Main Commercial Television Channels in Bulgaria, 2008 ..................
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