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Ukraine Media Landscape 2006: Television, TV Advertising Market, Film Production and Production Facilities by Media Resources Management

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Ukraine Media Landscape 2006: Television, TV Advertising Market, Film Production and Production Facilities by Media Resources Management and the Ukrainian League of Public Relations. They create a certain Ukraine, where the system of education in public relations “watershed” for the local PR industry, demarcating the market and leaves much to be desired. The majority of lecturers come from consolidating key market players around the two poles. adjacent areas and lack hands-on PR experience. The key high- er institutions that provide graduates for the scarce PR labour The growing activity of professional community essentially benefits market are Kyiv Mohyla Academy and Taras Shevchenko Kyiv the market development, and 2006 has boomed in PR events, with National University, whereas postgraduate CIPR Certificate the both associations conducting large-scale professional forums. and Diploma courses are available at the International Institute At the beginning of October 2006 the Ukrainian Association of of Business. Public Relations (UAPR) conducted the European PR Congress- 2006 “Strategic PR: from business reputation to country image”. Graduates majoring in social and political sciences, philology The event attracted about 200 PR-practitioners from Ukraine, CIS and marketing staff the PR agencies at an entry level, with further and Western and Central Europe, as well as government represent- professional tuning into PR practitioners. The market is largely atives (including the Ministry of Foreign Affairs of Ukraine), NGOs understaffed, especially by the “narrow specialists” – experts in etc. More than 40 speakers from 10 countries reported on the latest particular markets (pharmaceutics, high tech, finances, etc.) Thus PR industry developments and trends. International Annual Summit international PR agencies are the sought-after environment for “Days of PR in Ukraine” was also held in Kyiv in October 2006 by the professional growth. Ukrainian League of Public Relations and with the support of the Ministry of Foreign Affairs of Ukraine. So, the dynamics of the Ukrainian PR market development shows that the Ukrainian PR as a notion has emerged and, despite the Professional events that bring to the table recognized PR ‘growing pains’ of this fledgling industry, evolves into a strategic professionals from abroad are of great educational value in communications power. 11 Media Ukraine Media Landscape 2006: television, tv Advertising Market, Film Production and Production Facilities by Media Resources Management General Information worth to be mentioned: TRC Ukraine, Tonis, NTN, M1, 5th Channel and Megasport. Together all of the above mentioned channels hold 80% of According to the official data of National Council of Television and Ukrainian TV audience and 90% of TV advertising market. Radio there are 1268 television and radio organizations (TRO) reg- istered in Ukraine, 97 of which are registered as television and radio organizations and 647 are television stations. Advertising If talking about the factors that had a significant influence on the 848 TRO’s are private, 383 belong to city administrations and 37 development of Ukrainian media market, we have to first of all men- are state-owned. tion the growth of advertising market of Ukraine. According to certain sources, 15% TRO’s do not function at all and Volume of advertising market of Ukraine 2001-2006, 60 % are hardly surviving. Thus, only 25% percent of all registered mln. USD, excluding taxes TRO’s might be considered more or less successful. Year 2004 2005 2006 There are three nationwide Free TV channels in Ukraine: UT-1 (state- owned), Inter and Studio 1+1 (both are privately owned). Another Total volume of advertising market 571 835 1373.2 four channels – New Channel, STB, ICTV and TET – are approach- ing status of national by coverage and sometimes are referred to as Growth compared to previous year 36% 46% 64.5% “multiregionals”. According to the rating figures and audience shares Volume of TV advertising market 165 237 390 these channels are to be considered the largest and the leading chan- st nels in Ukraine. Historically Inter has almost always held the 1 place, Growth compared to previous year 27% 43% 59% Studio 1+1 – the 2nd, New Channel – being the 3rd channel, ICTV – the 4th and STB – the 5th. But there is a number of other TV market players Data by Ukrainian Advertising Coalition 196 Country profile ukraine Audience shares of the Free TV channels in Ukraine broadcast TV product should be in Ukrainian language. Starting (first 3 quarters of 2006) from February 1st 2007 the volume of Ukrainian language pro- gramming should reach 75%. RTR PLANET As for the future tendencies of increased volume of Ukrainian lan- TRK KYIV K2 1.34 % 0.43 % 0.11 % guage on TV, the experts’ opinions have split. Some of them are NTN NTV MIR sure that it is already quite clear that Ukrainian language content is 2.04 % 1.38 % M1 K1 5 CHANNEL TONIS 1.15 % 0.35 % currently in high demand in the process of filmmaking and it is still INTER 2.06 % 1.46 % UT1 21.61 % to grow. Their opponents are not so optimistic about a large volume 2.24 % of product to be produced in Ukrainian. The reason for it is very sim- TET 2.66 % ple – the Ukrainian language product will not bring any profit (will CHANNEL 1 Rus not even cover the production cost), since Ukrainian language will 3.79 % limit its export opportunities to Russian speaking markets, whose TRK license fees are quite desirable and high. Thus the primary market UKRAINE 4.37 % for Ukraine made product is Russia that is why all the product is shot in Russian language. STB 6.4 % 1+1 Apart from television Ukrainian language is also entering the the- 18.37 % ICTV atrical market. Quite a few theatrical releases were dubbed to 7.29 % NEW CHANNEL Ukrainian instead of Russian. It is worth mentioning that such a hit 7.49 % as THE CARS generated 30% bigger box office in Ukrainian than in Data provided by GfK Russian (it was released in Ukraine in both language versions). However, on October 17th 2006, the Kiev Economic Court of The advertising market of the country is still stably growing, Appeal has overruled some regulations as for the set restrictions in But the growth in 2006 was mainly caused by political PR cam- dubbing language of theatrical and Home video releases of foreign paigns. The growth of 2006 is appeared to be at the level of movies. 64.5%. As for TV advertising market the process of the slowing down of growth margin increase is due to the oversaturation of the air time by commercial advertisements. However, by no tv channels means the Ukrainian market has used itself up. According to 2006 was marked by a number of significant events in Ukrainian various experts, this field is one of fastest developing ones. In television, namely by a change of owners and management of the particular the stable growth of the markets is fueled by the new leading channels, by World Football Cup, birth of new thematic Western companies entering the Ukrainian market, growing channels (Kino, TV-1 and 24), etc. competition between the groups of goods suppliers, increas- ing interest in regional markets, further growth of advertising The first half of 2006 was rather tough for the Ukrainian TV channels: prices, etc. almost all of them had to go through either change of the owner or the top management. The first quarter of the year was marked by Now, it’s worth telling about some major significant events that the final round of the Parliamentary elections in the country. June shaped the Ukrainian media market over the period of 2006. was all occupied by the World Cup. It is worth mentioning that the management and ownership tv measuring change has caused a rather significant decrease in ratings fig- Over the course of 2006 a few companies participated in the an- ures, however none of the competitor channels has used this nounced tender (held by ITC (Industrial Television Committee) which opportunity to its benefit. The multiregional channels were com- was supposed to determine an official measurer of the television audi- peting against each other, and only STB benefited from it. Studio ence in Ukraine in 2008 – 2012. The company which was chosen (and 1+1 has established its leadership due to the huge success of accordingly its panel) would of course have a great influence both on the telenovela “Do not Be Born Beautiful” (Russian adaptation the market and its players. of Columbian “Ugly Betty”) programmed in weekday prime time. Inter TV Channel succeeded to attract a very structured audience In the end of November, ITC voted for GfK-Ukraine and this com- only during the weekends, in general the situation has stabilized pany would provide TV audience measurements in Ukraine in only by June during the World Cup broadcast. During the week- 2008-2012. day prime time Inter has intentionally avoided the competition, having given up the slot not only to 1+1, but sometimes to New Starting from 2008 a new panel of ratings measuring will be introduced Channel and ICTV. which will cover all the population of Ukraine. Such restructuring of the panel (as well as the operator) will of course have its impact on the The following channels have increased its ratings: “Channel One. ratings of the channels, since the panel will include more of the older Worldwide Net” (satellite version of the Russian Channel One), TET, population and the population with lower income. and TRC Ukraine. “Channel One. Worldwide Net” was especially boosting its numbers during the weekend prime time. Ukrainian Language on tv The total sum of multiregional channels’ figures gives them a The 2006 was marked by increasing volume of Ukrainian language chance to take the leading position as far as it goes for commer- on TV (as opposed to Russian).
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