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'If Public Service Broadcasting Is ‘IF PUBLIC SERVICE BROADCASTING IS IMPLEMENTED IN THE DUE MANNER, EVEYBODY WILL BENEFIT – THE STATE, THE VIEWER, AND THE TELEVISION MARKET ITSELF’ – YEGOR BENKENDORF, DIRECTOR GENERAL, NTU Since Ukraine became independent there have been a lot of discussions about creation of community or public television system. Despite numerous concepts, draft laws and regular discussions among the professionals this process is still not finalized. In mid October the Parliament of Ukraine passed another draft law on creation of public service television and radio broadcasting in Ukraine. Based on the developments of the Public Humanitarian Council under the President of Ukraine, it provides for establishment of "The National Public TV and Radio Company of Ukraine", and perhaps this project will finalize the long process of transition to public broadcasting. We discussed the perspectives of public television in Ukraine, problems of transition stage, and expected benefits to viewers and to the television market with the head of the channel, on the basis of which the idea of public television is highly probable to be implemented - Director General of the National Television Company of Ukraine Yegor BENKENDORF. 1. Discussions of any serious project, even if it is being in the implementation stage for nearly 20 years should consider such factor as goal setting. So the question is if Ukraine managed for some reasons to live with no such a thing as public broadcasting then why and for which purpose it is necessary to create it now? I believe the effect of public television creation should be split into two components. On the one hand public broadcasting should be considered as an integral part of the democratic society. And those are not just words. We do have the Constitution, representative authorities, the instrument of elections, a multiparty system, electoral state positions, etc. In the best option creation of public service broadcasting contributes this list with direct access to the information space for different social groups, satisfaction of their informational needs, giving society objective information on the current important events, and at the same time it limits state authorities’ influence on this process. If we call freedom of speech one of the main elements of the civil society then public television is exactly the closest model of its implementation. On the other hand we should not forget history lessons. Assuming that the first public television emerged in the United States, most researchers just point to the fact that its creation was a response to the excessive commercialization of the television market, which resulted in significantly reduced levels of intellectual and cultural television programs. If we extrapolate this situation into modern Ukraine, it can be said that public broadcasting can raise the intellectual level of Ukrainian citizens. This will take place through the production and broadcast of programs that the vast majority of commercial channels do not care about, namely cultural, educational, historical ones. Add to this list programs for national minorities, certain social and religious groups and, etc. Every citizen of our country shall benefit in a result of consolidation of Ukrainian society and strengthening of its intellectual level. 2. During the last few years and generally since July 1997 when the first Law of Ukraine “On the system of public television and radio broadcasting in Ukraine” was adopted there appeared many concepts for creation of public service broadcasting. They belonged to top professionals in the TV domain. Why is this idea still not implemented and what specific obstructions are standing on the way of its implementation nowadays? In my opinion, despite the considerable public discussion and presentation of hundreds of opinions about public television, all the concerns raised regarding its implementation are oddly enough only in two issues. Generally those can be divided as follows: the issue of funding sources and management issues, which is synthesized from components such as the powers of government, the choice of program content, editorial policy, etc. 3. It seems that the first issue which is funding has already been solved. Because different draft laws in fact differ only in the extent of usage of several sources that have already been distinguished – the State Budget of Ukraine, subscribers fees from the users, income from selling own production, income from advertising… This issue is more complicated than it may seem. Perhaps it is non ability to find ways to resolve it, that we still do not have public television. Let's start with such source of funding as the State Budget of Ukraine. The problem is the following: if public television declares its fully independent from government and declares the absence of any commitment to coverage of the government activities, the receipt of funds from the state budget is wrong, because it creates the conditions for the pressure on the public channel from the authorities. For example, here is a literal quotation from the recommendations of the European Broadcasting Union, "The Mechanism of funding for public service broadcasting must ensure its independence". On the other hand, with no funds from the state budget, especially in the initial period of existence, public television is doomed. I see the way out in the preservation of public funding, but only during a transition period, after which there must be gradual and most importantly - proportional replacement of state funding with other sources, which are discussed below. I would also like to note that it is insufficient to just set the budget as a source of funding for public television, even for a transitional period. Under the Ukrainian law public financing is impossible without defining the spending unit. And this brings us back to the issue of interference / non-interference in the work of a public broadcaster. As a way out, the law on public television should contain carefully detailed model of acquisition and use of budgetary funds, including such components as their source, the mechanism of needs assessment, the mechanism to determine the required amount of funding, and possibly the public broadcaster itself as a chief spending unit. This minimizes the impact on the public broadcaster's editorial policy by authorities. Moreover, no matter which political party is in power - and I think this is correct – fulfillment of social obligations, implementation of social policy, help for pensioners and disabled people will always be a priority for the government over the financing of the information field. All this and other factors, along with the influence of waves of the global economic crisis that will undoubtedly appear in the Ukraine which is a subject of global economic processes, makes the budget an unreliable source, on which it is wrong and even unethical to rely in the medium and long term perspective. There exist two solutions. First is to make production of own content and its distribution through the available networks not dependent on the threat of underfunding which is possible by adding legislative provisions that during the transition period the public television will be financed in an amount not less than 0.1% of the total state budget expenditure for the corresponding year. In other words, we are talking about implementing a separate secure item in the state budget. Second is to find the courage to refuse the state budget and the gumption to find alternatives. 4. As I see you do not consider other sources mentioned (subscriber fee, selling own production, costs from advertizing) as a reliable funding option… Let’s look at these sources one by one. Considering the general level of the population incomes funding public television at the expense of subscribers’ fees will absolutely not be sufficient. Taking into account some sociologic research results, we make prognosis for ourselves that the quantity of regular payers of this kind of fee will not exceed 7% of the population of Ukraine. Just to compare and also based on our assessments the annual budget of some TV channel that is a public broadcaster, the budget that allows not only its deductions to salary and current expenditures but also production and distribution of the own quality product, shall be not less than 250 millions of UAH (30 million US Dollars). For instance in 2008 Barak Obama managed to raise 58 million dollars during the first six month of campaign which for a long while was considered the record in the fundraising activity. But even in the US it takes around two years to raise 3-4 million dollars. So subscribers’ fees will not be enough to provide functioning of the public broadcaster. Moreover how do you explain to the citizens that they should pay for public television when they can watch dozens of other channels for free? Sale of own programs is a reliable source of funding for thousands of TV channels and studios producing television content worldwide. But reliance on domestic production will make public broadcasters focus on more profitable and therefore more commercial projects that kills the idea of public television itself, which is an alternative to commercial television and primarily serves the educational function. Imagine a public channel, which operates by selling its own programs – in has series, reality shows, humorous programs, pop concerts on air, it will be no different from commercial channels. 5. In such a case it is not understandable how we can create public television and provide for its functioning. The situation looks like a dead end… However, there is a solution. If we claim the benefits of public television for everybody, both for the state and the citizens, then why do not we talk about mutual benefits that can be obtained from the public broadcaster cooperation with commercial channels? Perhaps it is somewhat unexpected, but let's make a few simple calculations.
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