Posted: Mon., Feb. 12, 2001

Tube's coin crunch

Russian Duma bans ads during film broadcasts

MOSCOW -- Members of Russia's parliament voted Thursday to restrict levels of TV advertising in a move that could cripple some of the country's stations and signals a major step away from film programming toward entertainment shows.

Legislation would ban showing ads during films on all national and local channels.

Industry analysts estimate advertising revenue generated during film broadcasts on Russian stations at $50 million, out of a total of $270 million spent annually on TV ads.

Current legislation, dating from 1995, forbids ads within children's and religious programming. Time limitations for educational programming also exist.

New proposed laws would make both film and educational programming ad-free.

Ripples felt

Reaction from Russia's TV community was swift -- and for once, it struck a chord with Russian government regulatory bodies, which have also attacked the proposed changes.

Restrictions on film and serials advertising would hit the most popular sector of local TV skeds -- which accounts for more than 50% of national channel air time and upwards of 70% of regional stations' broadcasting.

The most likely result would be a rapid move away from local serial production, a major growth industry since Russia's August 1998 financial crisis, toward entertainment show production. The latter would not be affected by proposed new legislation.

Russia's advertising community has been protesting against the possible changes over the last few months.

Fears over income

The Press and Information Ministry, which regulates TV, is also against the proposed moves. It's all too aware that pubcasters are already experiencing budget shortfalls, and sees any reduction of income as a possible fatal blow to such nets.

Indie channel NTV devoted a primetime Friday evening studio discussion program to the issue, which included deputy press minister Mikhail Seslavinsky. He argued that new laws could drive channels into the hands of political protectors in the form of local government, which would be the only possible source for coin to replace lost advertising revenue.


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