TITLE: TV BROADCASTING
SUBJECT COUNTRY(IES): UKRAINE
POST OF ORIGIN: KIEV
SERIES: INDUSTRY SECTOR ANALYSIS (ISA)
ITA INDUSTRY CODE: TEL, TES, INF
DATE OF REPORT (YYMMDD): 990801
DELETION DATE (YYMMDD): 020801
AUTHOR: RUBEN BELIAEV
APPROVING OFFICER: ANDREW BIHUN
OFFICER'S TITLE: SENIOR COMMERCIAL OFFICER
NUMBER OF PAGES: 64
INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND
U.S. DEPARTMENT OF STATE, 1999. ALL RIGHTS RESERVED OUTSIDE OF
THE UNITED STATES
SUMMARY
The TV broadcasting industry is a dynamic and active industry in
Ukraine. By unofficial estimates, the television market is
estimated at between US$40-130 million. However, there are
obstacles to foreign investments in this industry. By law,
foreign shares in a company that broadcasts in Ukraine cannot
exceed 30 percent. Foreign companies or foreign citizens cannot
independently establish a TV or radio broadcasting company in
Ukraine.
Ukraine is covered by a network of 240 radio relay stations used
for TV and radio broadcasting. The capacity of this outdated and
technically dilapidated network is hardly enough to support the
transmission of four national TV channels, while the demand is
much higher. To date, Ukrainian authorities have granted 330
licenses for radio and TV broadcasting in Ukraine. However, only
the following five TV broadcasting companies can claim to be
broadcasting nationally: the National TV Company, Ukrainian
Independent TV Corporation “Inter,” “Studio 1+1,” “ICTV,” and
“STB.” State-owned regional TV broadcasting companies (25) and a
large number of smaller companies operate within the limits of
one city or one region. The industry reconstruction plan, as
conceived by the Ukrainian Government in 1997, provides that the
240 existing radio relay stations will be equipped with equipment
for satellite TV/radio/telephone.
Advertising is the main source of revenue for Ukrainian TV
broadcasting companies. Major nationwide broadcasters reported
annual gross revenues that range from US$5 million and US$56
million in 1998.
Administration of the Ukrainian TV broadcasting industry is
conducted by government entities and is an obscure issue, not
only for foreign investors but even for specialists. The
television industry is viewed by Ukrainian authorities as a
matter of national security and, therefore, major projects that
influence the market are supposed to be cleared, although
unofficially, by the highest levels involved.
Due to reorganization undertaken in 1995, many licenses for TV
transmission that were issued at that time will expire in the
year 2000. The National Council for TV and Radio Broadcasting
plans to announce in early 1999 a tender for channels that will
be available in 2000. Reorganization of the transmission network
will create additional possibilities for broadcasting on
approximately 10 new national channels, but in order to use this
opportunity, U.S. companies need to be positioning themselves
now.
A. MARKET HIGHLIGHTS AND BEST PROSPECTS
1. MARKET PROFILE
The television broadcasting industry could be one of the most
dynamic and active industries in Ukraine. Interest is motivated
by several factors. Relatively small initial investments and
quick returns are the main incentives behind radio and TV
broadcasting projects. The country, a land of more than 50
million people with substantial human, technical, and natural
resources, is an important emerging market at the crossroads of
Central Europe, Russia, Central Asia, and the Middle East. It
holds great potential as a new market for U.S. trade and
investment. A significant number of both large multinational and
smaller foreign investors are present in this challenging market.
Both the size of the market and its location are stimulating the
interest of potential investors. Currently, unofficial estimates
of industry figures revenues are between US$40 and US$130
million. It is estimated that the share of the shadow market
economy in the TV broadcasting business in Ukraine is equivalent
to about 30 percent of the total market. Unofficial sources
anticipate that the presidential elections, scheduled for October
1999, will attract up to US$50 million worth of additional
financing to the TV broadcast market in the form of investment in
the current channels and revenues from political advertising.
a) Legal background
The documents that establish legal background for TV and radio
broadcasting in Ukraine are the "Law on Communications," the "Law
on Information" and the "Law on TV and Radio Broadcasting," as
well as numerous amendments to these laws. By law foreign shares
in a company that broadcasts in Ukraine cannot exceed 30 percent.
Foreign companies or foreign citizens cannot independently
establish a TV or radio broadcasting company in Ukraine. No
foreign broadcasting company is permitted to broadcast in
Ukraine. There is also a restriction on the sponsorship for
newscasts. There are legal and fiscal ways to circumvent these
provisions, but they considerably complicate relations with
Ukrainian partners and may become a legal trap if a dispute over
ownership rights arises.
Ukrainian legislation also includes provisions that are aimed at
monopolization in the TV and radio broadcasting industry:
-- no TV broadcaster may broadcast on more than two
channels (three channels for radio broadcasters);
-- no legal entity or individual may found of
more than one company engaged in TV and radio broadcasting.
The language used in TV broadcasting must be Ukrainian. TV
broadcasting for ethnic minorities and for foreigners may use
appropriate languages.
B) Technical infrastructure:
Ukraine is covered by a network of 240 radio relay stations that
are used for TV and radio broadcasting. The infrastructure of
this outdated and technically worn-out network is hardly enough
to support the national transmission of four TV channels. The
practical demand is much higher. To date, Ukrainian authorities
have granted 330 licenses for radio and TV broadcasting. Most
broadcasting companies limit their operation to one town or
region, but 14 companies hold licenses that entitle them to
nationwide or multi-regional broadcasting.
The existing transmission system is outdated, and none of the
four national channels cover the entire territory. Even for UT1
(Channel 1), the coverage is 98 percent. In many regional
centers, and especially in the rural areas, reception is rather
poor.
The National Space Agency of Ukraine has been tasked by the
Ukrainian Government to solve technical problems that place
unnecessary barriers and decrease industry revenues. This agency
has decided to build a network of digital satellite, TV and radio
broadcasting systems which will, in addition, be used for
satellite telecommunications. The goal of this project is to
replace the radio relay network for transmission via satellites.
The 240 existing radio relay stations will be equipped for
satellite TV/radio/telephone. There are plans to use the
satellite Intelsat-604 in the position of 60 E., which allows for
the reception of signals by medium-diameter antennas: 1.8 meters
in the East and 3.7 meters in the West. The spectrum of 9 MHZ on
the dial will be allocated for a channel, the digital
transmission done in MPEG-2. Today, the use of this network for
only TV and radio broadcasting only is not financially viable,
which is why it has to be also used for satellite telephone
communications.
C) Payment plan
Today there is no payment plan that would allow TV broadcasting
companies to charge customers for receiving their informational
products. In the former Soviet Union, the TV reception of
programs was free. Users paid a symbolic fee for the use of a
public (house) antenna. The same system exists in Ukraine. The
standard package of utilities provided to inhabitants of
apartment houses includes a symbolic monthly fee (less than US$
1) for the use of the public (building) antenna. Those who live
in single houses do not even pay this fee. When commercial
channels first started operating, they had plans for closed
caption broadcasting and offered customers the chance to
subscribe to their programming. These attempts failed. Only
customers of Russian Channel "NTV+," which is transmitted via
satellite in closed caption, have to subscribe. In many cities
cable TV companies took over the distribution of TV signals along
with the fee for the use of the antenna. They usually increase
the number of channels to 10-20 and improve the quality of
reception. However, they still use the same fee collection
scheme of including payment into the utilities bill. Monthly
fees for cable TV usually remain at the same level of US$1-2 per
apartment.
Because of this payment system, TV advertising is the main source
of revenues for Ukrainian TV broadcasting companies. Ukrainian
law establishes following limitations on TV advertising:
-- advertising air time cannot exceed 15 percent per hour of
broadcasting (this regulation does not apply to special
advertising channels);
-- entertainment and sports programs 45 minutes long or longer
may have only one block of advertising per 45 minutes;
-- programs shorter that 45 minutes and movies cannot be
interrupted by advertising, unless otherwise stipulated by the
contract between TV broadcaster and copyright holder.
d) Governmental bodies
Administration of the Ukrainian national TV broadcasting industry
is controlled by government entities and is an obscure issue not
only for foreign investors but even for industry specialists.
There are at least four government agencies that exercise direct
control over the industry:
The State Committee for Communications and a few other
lower-level technical entities are involved in the activity of
RRT, which is a state-owned concern that operates the technical
side of TV broadcasting and administers all the TV broadcasting
towers and centers. However, RRT does not have a decision-making
role as to the distribution of channels or frequencies. On these
issues, RRT receives and follows directives from the National
Council for TV and Radio Broadcasting.
The National Council for TV and Radio Broadcasting is the agency
that authorizes the start up or termination of any TV and radio
broadcasting operation. The National Council for TV and Radio
Broadcasting has a distinct status among bodies of the Ukrainian
executive board. It is financed by the Cabinet of Ministers but
does not answer to it. The National Council answers only to the
Parliament of Ukraine and the President. In June 1997, the
Parliament approved a law governing the status and activities of
the National Council. The law determines the duties of the
Council, as well as licensing, procedures, tariffs and fees to
follow. According to this law, the Council issues operational
licenses for TV, distributes channels and monitors the content of
the programs in regards to the National Constitution and
provisions of the license issued to the TV broadcasting company.
This law determines the structure of the Council, an eight-member
body which serves a four-year term. Four members of the Council
are appointed by the Parliament and the other four by the
President. As of August 1999, the President didn't name his
representatives at the Council, while the other four members have
been appointed by the Parliament several months ago. Council
members determine their positions in the Council via secret
ballot. These positions are rotated. Council members are not
permitted to participate in any political activities while in
office. Through licensing and distribution of channels and
frequencies, the Council plays a crucial role in the success or
failure of projects.
The Ministry of Information of Ukraine is responsible for budget
concerns of the State's share of TV broadcasting industry through
the State Committee forTelevision and Radio Broadcasting. This
Ministry is not directly involved in the TV broadcasting
business, however, it has demonstrated on a number of occasions
its readiness and ability to make decisions that reshape the
industry. In the past, it has exerted influence when interests
of opposing power structures collide and government officials
want to state or reinforce their decision.
The State Committee for Television and Radio Broadcasting under
the Cabinet of Ministers of Ukraine, administers the National TV
Company and National Radio Company of Ukraine, as well as 25
regional TV companies, one in each region (oblast) of Ukraine.
This Committee also administers the National TV Center in Kyiv
and regional TV centers. The State Committee does not interfere
with the operations of the commercial TV broadcasting companies.
The National Radio Company of Ukraine administers four nationwide
radio channels. They broadcast programmes of the National Radio
Company: UR(Ukrainian Radio)-I, UR-2, UR-3 and the foreign
broadcast channel Radio Ukraine. Eight radio stations have
regional status (they all broadcast in the FM band).
At the top of the power pyramid that influences TV broadcasting
market is the President of Ukraine, followed by the Presidential
Administration, Parliament Committees, National Security and
Defense Council, and the Cabinet of Ministers. It should be
noted that television enterprises are viewed by Ukrainian
authorities as a matter of national security and, any project
that influences the market is to be cleared, though unofficially,
by the highest bodies involved.
e) Commercial TV broadcasting companies
According to industry sources, there are about 121 TV companies,
109 radio companies and 26 TV & radio organizations in Ukraine,
18 are state-owned and 238 are private companies. This number is
much lower than the number of licenses issued (330), indicating
that some licenses may have been requested as investment
opportunities. It should be noted that the annual cost of a
nation-wide broadcasting license in 1997 ranged from US$1.5
million to US$14 million depending on the channel and hours
requested (Source: Kyiv Post, Dec. 1996). Only five television
companies can claim to broadcast nation-wide: National TV
Company, Ukrainian Independent TV Corporation "Inter," "Studio
1+1," "ICTV," "STB." State-owned regional television companies,
numbering twenty five, and numerous smaller companies operate
within limits of one city or one region.
d) Satellite TV
Ukraine has attempted, several times to develop its national
satellite TV network. Currently, the Ukrainian commercial TV
channel "STB" is broadcasting by the use of satellite "AMOS 4" in
digital mode MPEG-2 to fifty or sixty ground stations. But as of
today, satellite TV in Ukraine is limited by the lack of
infrastructure both in space and on the ground, a small number of
potential customers, financial weakness of local TV companies and
their lack of licenses for satellite TV broadcasting. However,
dozens of foreign national and international satellite TV
channels are available for reception by individual users in
Ukraine. Because Ukraine is on the border of territories covered
by satellites that transmit for other Europe countries, reception
of these is unsatisfactory. The situation with commercial
foreign satellite TV channels is further complicated not only by
poor quality of reception but also by low incomes of Ukrainian
citizens, language barriers, and complicated payment schemes that
would have to be applied in a country where most of population
does not have bank accounts. Due to the above reasons, most
Western satellite TV broadcasting to Ukraine is financially not
viable. The situation is slightly different for Russian TV
companies, because of cultural and language similarity and
familiar business practices. However, Russian "NTV+" is the only
pay satellite TV channel officially distributed in Ukraine by a
network of dealers that covers Kyiv, Dnipropetrovsk, Odesa, and a
few other cities. Decoder and user cards for three-month
reception of six programs broadcast by "NTV+" cost around US$200.
After the first three month, the costomer pays a monthly fee of
approximately US$20 (Source: "Byznes" No. 42, October 1998).
Pirate companies offer owners of satellite dishes international
pay TV and even maintenance services for a very reasonable fee.
Both government bodies and commercial companies understand the
benefits of satellite TV versus ground TV. The Academy of
Communications of Ukraine has shown that the cost of setting up a
transmission network for 4-12 TV programs via ground
infrastructure would be US$1-3 per user, versus US$1-2 for
satellite TV. The annual cost of ground transmission of any
nation-wide TV channel in Ukraine would be US$50 million, while
for satellite broadcasting the cost goes down to US$10 million
(Source: "Byznes" No. 42, October 1998).
e) Cable TV
Cable TV in Ukraine began long before Ukrainian independence,
because Kyiv's hilly topography prevented some government
entities downtown from receiving quality signals from the city TV
tower. True cable TV development in Kyiv dates to 1991, when
Troyeshchyna, a remote residential suburb with hundreds of
thousands of inhabitants, was connected to a cable TV network.
Currently, there are four operators of cable TV networks. The
largest services 260,000 residences but has the capacity to
service 300,000. Existing cable TV networks in Kyiv continue
growing at 10,000-15,000 residences per month. According to
industry specialists, no-one knows the number of cable TV
operators outside of Kyiv, but average coverage of the potential
market of cable TV customers in Ukraine is assessed at 10
percent. (Source: "Sobstvennyk" No. 2, 1998).
Depending on the company, customers receive from 10-30 channels.
Usually this number includes 10 Ukrainian channels, 4-7 Russian
channels and some international channels. Ukrainian and Kyiv
city regulations stipulate that three main Ukrainian channels
(UT1, UT2, UT3) and commercial channel "TET" (on which Kyiv City
TV Company broadcasts) should be provided free of charge to any
user in a building where a house antenna has been replaced by
cable. The same regulation demands that a connection to a cable
network be provided free of charge. City authorities also
established a limit for monthly user fees at UAH2.8 (US$1.50 at
that time). Another regulation stipulates that foreign
programming transmitted by the operator must be accompanied by
Ukrainian translation. This guideline, though ignored by most of
the operators, if implemented, would stimulate operating
companies to limit the number of foreign channels except for
Russian.
When connecting to a new residential house, cable TV providers
usually do not conclude an agreement with the resident but with
municipal utility management center responsible for the house and
utilities.
Based on the above user fees, cable TV companies cannot afford to
produce their own programming as well as pay TV companies that
they distribute. Nevertheless, companies fight for access to new
customers and connect to cable utilities even buildings without
residents. The development of cable TV networks will not be fast
and successful in those city areas where single houses are
located or in rural areas because of connection costs, which are
hardly affordable at the present time. Cable TV operators plan
to diversify subscription packages in the future through the use
of decoders, as well as provide additional services like access
to Internet, banking services, and interactive TV.
However, development of both cable TV and satellite TV in Ukraine
is limited in part by lack of relevant legislation documents that
is presently stalled in Parliament. However, in developing cable
TV, Ukraine, according to industry specialists, is well ahead of
other NIS countries.
2. STATISTICAL DATA
Because of the payment system in Ukraine, TV advertising is the
only business activity that generates revenues for TV
broadcasting companies. Therefore, the statistics of TV
advertising may be used to asses the size of the market and its
development. One of the leading Ukrainian business magazines,
"Byzness," published on April 1, 1997, the first results of TV
advertising performance in January and February 1997, as compared
to 1996.
UT1 UT2
First national Second national
channel channel
From 5:00 p.m. to 1:00 a.m.
Earnings Jan 1996 Jan 1997 Feb 1996 Feb 1997
(US$) 1,822,140 722,560 1,604,250 646,280
A time 675 301 594 269
(Minutes)
Number of As 1,464 726 1,315 699
Effective January 1, 1997, Ukrainian National TV, with ORT
(Russian Public TV), started a new channel called "Inter" that
broadcasts on UT3 (third national channel). The following
figures indicate advertising activity and earnings generated by
the three major TV channels in January and February 1997.
January 1997
UT1 UT2 Inter
Earnings 1,031,080 3,028,400 1,739,100
(US$)
A time 430 1,009 580
(Minutes)
Number of As 1,161 2,372 1,376
February 1997
UT1 UT2 Inter
Earnings 835,080 2,582,700 2,639,750
(US$)
A time 348 861 880
(Minutes)
Number of As 912 2,597 2,241
"Byziness" magazine lists Coca-Cola, Wrigley, Smithkline and
Beecham, Procter and Gamble, Wella, Jacobs Suchard/Pavlides S.A.,
and Dandy as the most active advertisers. The most advertised
products are: chewing gums, soft drinks, pharmaceuticals,
cosmetics, newspapers and magazines, entertainment, sweets, and
vitamins.
Source: Byzness No. 12, April 1997
The parliamentary elections early in 1998 poured considerable
funding into Ukrainian mass media and especially into the TV
business. It is anticipated that presidential elections
scheduled for October 1999 will increase investments into TV
broadcasting as well as generate major revenues.
Monitoring prepared by AGB and UMP companies at the order of STB
channel shows prime-time ratings of nation-wide channels in 1998:
Channel Ukraine's Total Kyiv
-- AMR % SHR % RCH %
AMR % SHR % RCH %
UT1 3.1 11.8 9.2
2.4 10.3 7.8
INTER 7.7 28.7 15.0
5.1 21.5 11.1
STUDIO 1+1 8.1 29.6 17.3
6.6 27.2 15.6
ICTV 1.0 3.7 2.5
1.2 4.9 4.5
STB 0.8 2.8 2.4
1.4 5.6 4.1
AGB Ukraine provides the following data on the TOP 10 producers
of TV advertising for the period of Jan.-Nov. 1998:
Producer #Spots Share Duration sec Share Investment
Procter&Gamble 17344 14.34 660,802 19.43 US$ 27,266,382
Unilever 4387 3.63 114,413 3.36 US$ 6,190,127
Mars LLC 2195 1.81 65,636 1.93 US$ 2,970,531
Wrigley 1623 1.34 32,091 0.94 US$ 2,964,168
Nestle 1342 1.11 37,267 1.1 US$ 2,705,765
Colgate-
Palmolive 1138 0.94 26,710 0.79 US$ 2,534,464
Coca-Cola 1352 1.12 30,823 0.91 US$ 2,186,514
Dandy 2611 2.16 32,361 0.95 US$ 2,144,699
Kraft Jakobs
Sushard 1307 1.08 29,121 0.86 US$ 1,943,020
SmithKline and
Beecham 1266 1.05 39,519 1.16 US$ 1,811,571
TOP 10 34,565 28.58 1,068,743 31.43 US$ 52,717,239
Others 86,408 71.42 2,332,975 68.57 US$ 76,229,228
Total 120,973 100 3,401,718 100 US$ 128,946,467
Based on advertising activities during the period Jan.-Nov. 1998,
AGB Ukraine provides the following estimates on gross revenues
from advertising per channel (in US$):
UT1 9,267,243 7.19%
UT2 933,285 0.72%
Inter 46,071,549 35.73%
Studio 1+1 56,133,229 43.53%
ICTV 11,005,311 8.53%
STB 5,535,850 4.29%
ALL 128,946,467 100%
3. BEST SALES PROSPECTS
A. New licenses for TV broadcasting
Due to industry reorganization in 1995, many licenses for TV
broadcasting that were issued at that time will expire in the
year 2000. The National Council for TV and Radio Broadcasting
plans to announce in early 1999 a tender for channels that will
become available in 2000. The National Council still has not
prepared the terms of the tender. However, its head, Mr.
Petrenko, stated that the competition will be limited by the fact
that only a few TV broadcasting companies have sufficient
financial and technical resources to offer good programming
products. Mr. Petrenko also noted that, in his opinion, U.S.
investment into TV business generate more profits than
investments made by companies from European countries. (Source:
"Companyon" No. 30, 1998). There are many small Ukrainian TV
studios and firms that would be able to win this tender if they
merged with a good foreign partner. Those TV broadcasting
companies that are currently broadcasting to a limited audience
on secondary channels could also make a successful bid if they
find an investor.
B. New channels
The reconstruction of the national TV transmission network will
create possibilities for broadcasting approximately 10 new
nation-wide channels, but in order to use this opportunity, the
U.S. companies should position themselves now. Besides, with the
conversion of military frequencies and frequencies formerly used
for special purposes, an opportunities for wider use of the
frequency spectrum is anticipated. However, these new
opportunities are not always publicized in time to make the
bidding process truly competitive. For example, in November
1998, the National Council for TV and Radio broadcasting
announced a bid for a new channel in Kyiv city: "40 TVK." The
announcement was placed in a small local newspaper, and only its
publication in one of the major opposition newspapers made it
truly public (Source: Kyyvsky Vydomosty, Nov. 13, 1998).
C. Privatization, mergers and acquisitions of TV broadcasting
companies
At the end of 1998, the State Property Fund of Ukraine sold the
state share of ICTV company to a private company. This sale, as
well as a few recent acquisitions in the industry, demonstrate
that before the presidential elections scheduled for Fall 1999,
considerable sums will be poured into the TV industry. This
process will not stop after presidential elections, because
Ukrainian authorities and power clans have always considered TV
as one of the key industries that should be controlled either
directly or indirectly by those in power. New local companies
with strong political support will try to take over TV
broadcasting from those who will loose support and immediately
will start looking for strategic investors to provide the
financing required to launch this highly lucrative business.
D. Equipment
Plans to reconstruct the existing retransmission network for TV
broadcasting will require a considerable equipment imports. This
project is already underway, but its implementation has been
delayed by lack of financing. Many regional broadcasting
companies do not have even the minimum equipment required to
produce marketable programming.
E. Programming
By law, no less than 50 percent of programming must be of
Ukrainian origin. The programming product most requested by TV
audience in Ukraine is TV serials. MajorTV advertising promotes
consumer goods, and TV serials watched by female audience offer
the perfect opportunity for the advertising of these products.
News and sports could be rated as second by the numbers they
attract. However, the National TV Broadcasting Company of
Ukraine has a monopoly on broadcasting international sport events
in Ukraine. Commercial channels can purchase the right to
retransmit any special event but only from the National TV
Broadcasting Company. Some of the TV broadcasters (e.g. ICTV )
especially focus on educational programs. There are a number of
programming products produced by major local studios and sold to
TV broadcasters. Some of them are quite popular and offer good
possibilities for advertising. Good and popular movies,
especially U.S. productions, improve channel ratings and attract
more TV advertising.
B. COMPETITIVE ANALYSIS
As mentioned before, only the following five TV broadcasting
companies among 121 TV broadcasters in Ukraine can claim to be
broadcasting nationwide: National TV Company (NTVC), " Studio
1+1," Ukrainian Independent TV Corporation "Inter," "ICTV," and
"STB." The first three of these companies (NTVC, Studio 1+1,
Inter) share the three national TV channels: UT1, UT2 and UT3.
The other two companies (ICTV, STB) broadcast on commercial
channels.
1. DOMESTIC SERVICE
THE NATIONAL TV COMPANY OF UKRAINE (NTVC)
According to the Ukrainian "Law on TV and Radio Broadcasting,"
state TV is considered the basis of the national TV industry,
funded through the national budget, and enjoys priority in using
the national broadcasting network including frequency spectrum.
However, state TV is prohibited from obtaining revenues proceeds
from advertising and sponsorship in excess of 25 percent of its
budget.
NTVC was created on January 3, 1995 by the Decree of President
Kuchma. This company replaced the State TV and Radio
Broadcasting Company of Ukraine, which was liquidated May 30,
1995. NTVC operates on a statute approved by the State Committee
for TV and Radio Broadcasting of Ukraine and is subordinate to
this committee. NTVC is entitled to sign contracts and
agreements; however, if a cosigner of a contract is a foreign
company, NTVC needs permission of the committee. NTVC does not
operate the 25 regional TV broadcasting companies. This company
is fully owned by the state and is funded through the national
budget. In 1998, NTVC was allocated only 18 percent of requested
funding. Per information of the national mass media, NTVC's
current budget is unknown even to the parliamentary committees.
As of November 1998, the company's indebtedness reached UAH 60
million (approximately US$17 million) (Source: Newspaper "Denn,"
November 14, 1998). NTVC broadcasting covers 98 percent of the
territory of Ukraine. The company broadcasts daily for 18 hours
on UT1 and 8 hours on UT2 which NTVC shares with "1+1." Its
audience is about 6-8 million people, which corresponds to 15
percent of the national TV audience. The company shares fourth
place in the ratings with STB company. The main sources of
income for the NTVC are the sponsorship, advertising, actual
monopoly on the retransmission of international sport events, and
leasing facilities and equipment of the National TV Center to
commercial broadcasters. The National TV Center has 22 floors
and 8,700 square meters of premises. NTVC is a member of the
European Broadcasting Union.
The current status of NTVC, its popularity and financial
performance are below its potential. In order to improve
performance of NTVC, President Kuchma issued an order in October
1998 to include NTVC into the State Joint Stock Company
"Ukrteleradio." By this order, "Ukrteleradio" will include NTVC,
the National Radio Company of Ukraine, 25 regional TV
broadcasting companies, and RRT, and a firm in charge of the
technical broadcasting and transmission infrastructure.
"Ukrteleradio," if created, would be subordinate to the Cabinet
of Ministers of Ukraine andwould be financed through a separate
line item of the national budget. This reform would liquidate
the State Committee for TV and Radio Broadcasting of Ukraine, and
diminish the role of the Ministry of Information of Ukraine.
Industry sources associate this reform of the state share of the
TV and radio broadcasting industry with the upcoming presidential
elections.
2. THIRD-COUNTRY PARTICIPATION
UKRAINIAN INDEPENDENT TV CORPORATION (TV CHANNEL "INTER")
Ukrainian Independent TV Corporation (TV Channel "Inter") is the
main broadcaster on UT3. Inter is accessible in Kyiv, 23 regions
and Crimea (about 70 percent of the territory of Ukraine) and
reaches an audience of approximately 40 million (77.3 percent of
the population). Inter's weekly broadcasting is about 100 hours.
Audience share during prime time in September 1997 was a steady
36 percent on weeknights and 37 percent on weekends and holidays,
but fell to 33 percent during prime time in the period March
1-14, 1998. Monitoring popularity of nationwide channels
prepared by AGB Ukraine shows that in late November 1998, Inter's
share of prime time audience reached 34 percent on week days and
37.6 percent on weekends, with an average of 35 percent. Inter's
ratings for the same period were 13.4 percent, 16 percent and
14.1 percent respectively. Inter has offices in 14 regions of
Ukraine. Its programming is transmitted through a network of 377
transmitters and fiber optic cables. Inter owns 16 broadcasting
studios, including nine digital (format DVC PRO), 12 technical
rooms, a newsroom staffed with 70 employees , seven satellite
dishes, that receive and process both digital and analog signals.
In order to increase the area of coverage, this channel plans to
start broadcasting via satellite in 1999.
Ukrainian Independent TV Corporation started broadcasting on
October 20, 1996. Inter is partly owned by the Russian TV
company ORT. According to Eastern Economist, the main financier
of Inter is the Swiss-based Pushkin 200th Anniversary Fund, which
is associated with the Russian Government and political elite.
Up to 40 percent of the Pushkin Funds capital is owned by the
Moscow-based oil company International Economic Cooperation and
International Business Cooperation, which specializes in nuclear
energy and new technologies (Eastern Economist October 19, 1998,
p.7). The reason for creating Inter was to formalize and
consolidate ORT's position in Ukraine and to provide access to
Moscow programing familiar for both Ukrainian and Russian
speaking audience. Cultural, informational and family ties with
other NIS countries, and especially with Russia, are so strong
that any attempt to limit access to the former Soviet Union-wide
channel were perceived very painfully by the Ukrainian audience.
Besides, Inter is the only partially Russian speaking nationwide
TV channel in Ukraine. Being an exclusive distributor of ORT
programs in Ukraine, for many Ukrainians, Inter is the main
source of information on current political, economic and cultural
developments in the NIS.
The strongest part of Inter programming is that this channel
provides programming familiar from childhood. Initially, it was
almost exclusively based on ORT programming products that had an
established audience and higher than local programming quality,
Inter management strived to develop a number of their own quality
products, which are supplemented with TV programs purchased from
other Ukrainian studios. Inter also has an established
cooperation with NBC.
Data on financial performance of the channel are not available.
Based on Inter's share of the advertising market, the company's
annual revenues in 1998 may be estimated at US$20-25 million.
STUDIO 1+1
"Studio 1+1" TV first hit Ukraine's airwaves in September 1995,
offering programming in Ukrainian. At that moment, it was the
only Ukrainian-language channel in a position to compete not only
with domestic, but also with long-established Russian and
European broadcastersof name and repute. Studio 1+1 founders
are Intermedia Ukraina (30 percent) and Olexander Rodnyanskiy,
"1+1" Director General and Producer General (70 percent). The
company also has a strategic investor: Central European Media
Enterprises Group (CME) that invested US$120 million into the
development of "1+1." On December 23, 1998 CME purchased an
additional 10 percent equity interest in the "Studio 1+1" group
of companies, which in addition to "1+1" TV company, includes an
advertisement agency "Pryorytet." This investment, worth US$5
million, brings CME's total interest in the group to a
controlling share of 60 percent. CME continues to own a minority
interest in the Studio 1+1 license holding company in accordance
with limitations set by Ukrainian law.
Studio 1+1 is broadcasting over the UT2 national channel in
compliance with the license awarded by the National Council for
TV and Radio Broadcasting. The company broadcasts daily 12 prime
hours from 7 a.m.-10 a.m. and from 4 p.m.-2 a.m. The network is
seen by 95 percent of the country with the signal being relayed
by 423 transmitters. Company revenues are from TV advertising.
In 1997, "1+1" reported net revenues of US$16.661 million. In
1998, the company's net income for the period January-June
reached US$14.462 million. Studio 1+1 has 450 permanent
employees.
Studio 1+1 programs are regularly watched by 30 percent of
national TV viewers. Audiences increase to 32 percent-45 percent
during weekends and holidays as well as when popular programs are
broadcast.
During the first half of 1998, Studio 1+1 had the following share
of the national TV audience:
REGION MORNING PRIME TIME
(7-10 a.m.) (7-11 p.m.)
Center 36-37 percent 28-41 percent
Crimea 19-28 percent 13-14 percent
East 15-21 percent 13 percent
North 52-65 percent 40-35 percent
(Including Kyiv)
West 36-37 percent 43-41 percent
-------------------------------------------------------
All Ukraine average
Weekdays 36 percent 27 percent
Weekends 37 percent 32 percent
Daily rating is 6-7 percent of the Ukrainian population. During
prime time, this figure reaches 10 percent. Studio 1+1 is a
modern family channel, striving to meet the interests of all age
and social groups. Viewers are 60 percent female and 40 percent
male. Studio 1+1 focuses on people from 10 to 50 years old.
Its most popular programming includes foreign TV serials and
homegrown entertainment programs. 1+1 also offers a very
popular "TSN" news that covers both domestic and international
news. Some of the locally-produced programs are successfully
sold to Russian TV broadcasters and overseas. Studio 1+1 has a
partnership with the Russia company "NTV Profit" and actively
cooperates with Video International, Pro TV, movie makers,
Columbia Pictures, Tri Star Pictures and many Hollywood
distributors. Company programs were a target for TV and video
pirating, both in Ukraine and overseas.
1+1 has a bilingual World Wide Web site with the company's daily
program schedule and "TSN" news (see http:\\www.1plus1.net).
Studio is also looking for opportunities for satellite
broadcasting.
INTERNATIONAL MEDIA CENTER STB CHANNEL
STB was founded in June 1997 and is the newest commercial
television channel in Ukraine. It is the only commercial channel
that has an independent broadcasting network. STB broadcasts via
the satellite AMOS 4, in digital mode MPEG-2 to 43 ground
stations and reaches 60 percent of the population. In the
regions, local TV stations after receiving them by satellite,
rebroadcast STB programmes on terrestrial channels. The channel
is accessible in Kyiv and 10 regions of Ukraine. By September
1997, its share of viewers during prime time was 1 percent on all
days of the week androse slightly to 1.12 percent during prime
time in March 1-14, 1998. According to monitoring prepared by
AGB and UMP companies, STB currently has 1 percent of average
prime-time rating in Ukraine, 1.4 percent in Kyiv, average prime-
time share of 2.8 percent in Ukraine, 5.6 percent in Kyiv. STB
has a permanent staff of approximately 270 employees.
The company's founders include: International Media Center, U.S.
company Internews Network, "Vita" Airlines, Pro TV, Norcross
Cover Corp., and others. Data on the financial performance of
STB is not available, however, company's executives state that
STB would need one more year to become profitable. STB managers
declared their interest in attracting additional investment into
the channel.
In its programming, STB especially focuses on general and
business news broadcasts. The company does not plan to become a
news broadcasting channel, mainly for financial reasons.
STB's one year success story is a good example of how an
independent commercial channel can establish itself in the
Ukrainian TV market.
3. U.S. MARKET POSITION
At least three of the five nationwide broadcasters enjoy the
benefits of U.S. investments: Studio 1+1, STB, and ICTV.
However, limits to foreign ownership share in TV broadcasting and
a lack of transparency to the real but not formal ownership
relationships, make ICTV the only major American-Ukrainian joint
venture in the industry.
THE INTERNATIONAL COMMERCIAL TV AND RADIO COMPANY (ICTV)
The International Commercial TV and Radio Company (ICTV) was
formed as a joint venture and registered in Ukraine in 1992.
ICTV was the first national commercial TV network in Ukraine.
ICTV, since its inception, has been 50 percent owned by
U.S.-based Story First Communications Inc. and 50 percent by
Concern RRT, a company controlled by the Ukrainian Government.
ICTV is a limited liability partnership under the laws of
Ukraine.
At the time of ICTV's formation, the Ministry of Communications
gave Concern RRT the right to contribute 43 frequencies to the
joint venture, which the Concern did. In July 1993, the
Ukrainian State Television and Radio Company issued ICTV a
license, which gave it the right to broadcast nationally. ICTV
also acquired contractual rights to use transmitters contributed
by its Ukrainian partners. Since the creation of ICTV, Story
First Communications has made considerable financial investments
in developing ICTV's operations: it has contributed programming,
broadcast transmitters and equipment; has created a radio station
(in Kyiv) Music Radio; and constructed 1500 square meters of
studio, production and administrative space to house this
professional broadcast operation. In addition, ICTV has employed
and trained more than 400 Ukrainian staff.
ICTV is known by its focus on educational and entertainment
programs, but it also produces "Visti" and "Tyzhnevyk" newscasts.
This channel is accessible in Kyiv and 21 regions of Ukraine and
reaches 22 percent of the population. Its share of audience
during prime time in September 1997 was 4 percent on week nights
and Fridays and 2 percent on weekends and holidays, and it fell
to 1.89 percent during prime time in the period March 1-14, 1998.
In 1998, the average prime time share of ICTV in Kyiv was 3.7
percent, while in total Ukraine it reached 6.4 percent (based on
data prepared by AGB and UMP).
Data on ICTV's financial performance is not available.
3.4 COMPETITIVE SUMMARY
The total size of the Ukrainian TV broadcasting industry is
estimated by experts at US$ 40-130 million. Such a divergence in
estimates is explained by the fact that, according to some
experts, up to 30 percent of operations and transactions are made
unofficially, which is still considerably less that the average
share of the shadow economy in Ukraine that amounts to 40-60
percent of the Ukrainian GDP.
Rough estimates indicate that up to 60 percent of all revenues
from advertising are almost equally split between two channels:
Studio1+1 and Inter. The rest goes to other national channels
and regional broadcasters. Unofficial sources anticipate that
presidential elections scheduled for October 1999 will attract up
to US$50 million worth of additional financing to the TV
broadcasting market. This financing will come in the form of
investments in the current operating channels and in revenues
from political advertising. Most of this funding will probably
go to the same two channels.
The industry profile can change substantially if and when NTVC is
transformed into a State Joint Stock Company "Ukrteleradio,"
which will include NTVC, the National Radio Company of Ukraine,
25 regional TV broadcasting companies, and RRT, the company in
charge of the technical side of broadcasting and transmission.
Industry experts state that this reform aims at monopolizing
state radio and television before presidential elections. The
other alleged objective of this reform is to privatize the
indebted national TV and radio network for a symbolic amount
equivalent to company's debt and then to resell it to a strategic
investor. Experts anticipate that privatization of Ukrteleradio
may be completed before Summer 1999, and suspicious fingers point
to Russian mass media tycoons as the main contenders. However,
benevolent attitude of the presidential and governmental bodies
to the privatization of Ukrteleradio will be almost certainly
opposed by a negative attitude of the parliament. Similar
conflict of interests already blocked the privatization of
Ukrtelecom Corporation, the Ukrainian state monopoly in wire
telecommunications. The opposition to privatization and sale of
Ukrteleradio will be even more vehement, given the role of TV in
the upcoming presidential elections.
The industry's profile will also change, because most of the TV
broadcasting licenses issued in 1995 will expire in year 2000,
and new TV broadcasters will be required to bid on available
channels. The anticipated reconstruction of the transmission
network will also open new opportunities by increasing the number
of technical channels available for a national distribution of
broadcasting. The development of the industry will depend
heavily on the general performance of the local economy, because
if the local market remains poor and limited in financial
resources, it will not be able to generate enough revenues from
TV advertising to make new investments in TV broadcasting
economically viable.
Despite corruption of governmental bodies, lack of transparency
and underdevelopment of market infrastructure, the local TV
broadcasting industry should represent considerable interest for
U.S. investors and broadcasters. Ukrainian officials have stated
on a number of occasions that financial performance of Ukrainian
TV companies with U.S. investments is much better than the
performance of companies with foreign investors from other
countries (see "Kompanyon" No. 30, 1998).
C. END-USER ANALYSIS
TV in Ukraine is the major source of political, commercial and
cultural information for most of the population. Its role
increases inversely with the level of income for a major portion
of Ukrainians. Poverty limits their ability to purchase magazines
and newspapers, travel and participate in social and cultural
events. In small towns and villages, TV is often the only source
of information available.
The Ukrainian audience is very receptive to political news,
especially news related to Russia and other NIS countries. This
interest is higher among older people and decreases with
youngsters that have no direct ties with the Soviet social and
cultural heritage. Young people are much more receptive to
Western values than older people that are more affected by
hardships arising from the state of the national economy.
TV serials of U.S. and Latin American production in their
popularity compete and even surpass newscasts among female
audiences and people of advanced age. Older people are usually
more dedicated to the programming products inherited from the
former Soviet television.
Since the only source of revenues for TV broadcasters are the
revenues from advertising, all TV companies in their programming
focus on economically active audience, as well as teenagers and
children.
It also should be noted that since most Ukrainian families have
only one TV set, family channels hold the attention of the
audience better. This is especially important for large cities
with cable TV and less relevant for small towns and villages
where the choices are limited.
D. MARKET ACCESS
1. Start of business and licensing
1.1. Licensing of Broadcasting Channels
In order to obtain a license for the right to use broadcasting
channels, a TV and radio company, its founder, or an authorized
agency must submit an application to the National Council. The
application must contain the following information:
a. About the founder (for a legal person - the name, legal
address, and bank account number; for a natural person - last
- name, first name, patronymic, year of birth, citizenship,and
address);
b. The name of the TV and radio company, its bank account number,
and other identifying information (call signs, emblem, etc.);
c. The location of the TV and radio company;:
d. The intended programming of the TV and radio company in
accordance with the requirements of the law;
e. The language (or languages) in which the broadcasts will be
aired;
f. The geographical area of dissemination of programs or
broadcasts;:
g. The intended audience;
h. The sequence, time and volume of broadcasting (including
production of proprietary broadcasts);
i. The form of broadcasting (video, audio, teletext, other);
j. The means of programming dissemination (over the air, cable,
over the air and cable, wire, satellite, and others);
k. The location of and technical information concerning the
transmitter.
Copies of documents for the TV and radio company approved
according to prescribed procedures must be attached to the
petition. The petition for granting of a license to a TV and
radio company for the right to use broadcasting channels will be
reviewed and a decision rendered in no more than one month from
the day of its submission to the National Council along with
required notification to the applicant of the decision. A
license for the right to use broadcasting channels will be
granted no later than ten days after the rendering of a decision
by the National Council, the condition of payment of a fee and
approval will be the sole legal basis for the right to use
broadcasting channels. A license contains the information
provided in the application, as well as the: location of
broadcasting channels, geographic zone of reliable reception,
portion of programming of proprietary production and its subject
matter, average daily volume of broadcasting, duties assumed by
the TV and radio company in the course of competitive selection,
length of the license term, date when the license will become
effective, and date of commencement of broadcasting activity.
In the course of competitive selection between applicants for
receipt of a license, the National Council will consider the
interests of viewers and listeners, necessity of protecting
general national interests and the dissemination of cultural
values, necessity of fuller coverage of the positions of various
social groups in television and radio programming, conformity of
proposals set forth in the application for granting of a license
and conditions of the competition, conformity of the TV and radio
company's technical abilities and creative potential to the
proposals in the application and the duty of a TV and radio
company to provide social broadcasting.
TV and radio companies not registered according to established
procedures do not have a right to claim receipt of a license,
same as TV and radio companies created by political parties,
trade unions, religious organizations, or entities which they
have founded(or appeared as cofounders). In cases where
multiple applicants have grounds for a license, the primary right
to receive it will be the applicant holding that license the
previous term, if in the course of operations it did not violate
conditions of its license and demands of applicable legislation.
1.2. Dismissal of an Application for Granting (Renewal) of a
License Without Review.
An application for receiving (renewal) of a license to use a
broadcasting channel shall not be reviewed if it:
a. Was granted (signed) by an unauthorized officer;
b. Was granted in violation of the requirements of the law.
The applicant will be informed of dismissal of an application
without review by letter with a list of the reasons within the
time frame established for licensing. The applicant may appeal
this decision to a court.
1.3. Denial of A Grant (Renewal) of a License.
A refusal to grant (renew) a license for the right to use a
broadcasting channel is permissible in cases when:
a. The application was submitted by an enterprise, founder, or
organization which is not a legal person;
b. A license was previously issued to a TV and radio company with
the same name and for the same territory of broadcasting;
c. The charter of the TV and radio company is in conflict with
the requirements of the law;
d. The charter does not specify that the TV and radio company is
a legal person;
e. The application was submitted prior to one year from the day
of a decision by the National Council revoking a license of
that TV and radio company;
f. The technical capability of carrying out broadcasting on the
basis of the characteristics in the application is lacking.
A refusal to grant a license to a TV and radio company will be
sent to the applicant in a writing with an explanation of the
basis for the refusal. Denial of granting of a license may be
appealed to a court within a three-month time period.
1.4. Term of License
A license for the right to use a broadcasting channel will be
issued for a term proposed by the applicant, but a term will not
be for less than for five years for over-the-air broadcasting and
ten years for cable (wire) broadcasting. At the expiration of
this term, the license will no longer be in effect. For an
extension of the right to broadcast a TV and radio company must
again receive a license in accordance with the procedures set
forth by the law. The right to commence broadcasting is
preserved for a TV and radio company for one year following the
day that the license becomes effective. Upon initiation of
broadcasting activity, the TV and radio company must inform the
National Council within ten days. If a TV and radio company does
not commence broadcasting within one year after the license
becomes effective, the license will no longer be in effect.
1.5. Fee for Grant of a License
For the granting of a license, a TV and radio company will pay
an amount established by the Cabinet of Ministers of Ukraine.
For issuance of a duplicate license, a payment equal to ten
percent of the fee must be made. The registration fee shall go
to the account of the National Council.
1.6. Cessation of Activity of a TV and Radio Company
Cessation of a tele-radio organization's activity will occur upon
a decision of the founder (co-founder) or a court, and the
National Council will be informed within ten days for the purpose
of making corresponding changes in the state register.
1.7. Commencement of Broadcasting and Transmission of TV and
Radio Broadcasts or Programs
A TV and radio company may broadcast from the moment its license
becomes effective. An owner of broadcasting equipment will not
provide these services to a TV and radio company that does not
hold a license. Distribution of television or radio programming
over a territory larger than the one stated in the license will
not be permitted. A license holder may not sublet a broadcasting
channel. The manager of a TV and radio company ora person
authorized by him will authorize the transmission of TV and radio
broadcasts or programs and will be personally responsible for
their content and quality.
1.8. Rights and Procedures for Use of Broadcasting Channels
Procedural rules for the use of broadcasting channels will be
determined by the National Council. Regardless of their form, TV
and radio companies will have the right to use the frequencies
designate for broadcasting, as well as to own, manage and use
technical means of broadcasting.
2. Taxation
The number of taxes in Ukraine decreased during the GOU's 1997
taxation reform, and this trend is continuing in 1998. The most
significant taxes are: a 20 percent value-added tax (VAT); a 30
percent corporate profit tax; and a personal income tax based on
an employee's income (ranging from 20-40 percent for most
employees of foreign companies operating in Ukraine); and payroll
taxes paid by the employers to the Social Insurance Fund, Pension
Fund, and Employment Fund (total contributions to these funds
amount to 48.5 percent of wages, borne by the employer). The
State Tax Administration, responsible for the overall
implementation of tax laws, was granted broader authority in
1997, becoming accountable directly to the President and
incorporating the Ukrainian Tax Police.
The 1997 "Law On Company Profit Tax" canceled automatic tax
exemptions for companies registered prior to January 1, 1995,
with qualified foreign investment of more than US$100,000. The
"Law on Value Added Tax" and the "Law on Business Profits Tax"
were passed by Parliament during the first half of 1997, formally
providing for a more favorable VAT and corporate tax, a tax
structure similar to those found internationally. However, the
language of the new law and procedural issues, as well as
numerous small amendments, often diminish the content of the laws
and create additional problems for corporate taxpayers.
In 1998, President Kuchma issued several tax reform decrees. The
reform measures include introduction of single uniform tax for
small businesses, and single uniform agricultural tax based on
the value of the land; writing off and restructuring VAT debts
for agricultural producers; and reduction of the payroll tax to
37.5 percent beginning January 1, 1999. The new decrees will
come into effect, if not reversed or amended by the Parliament,
within 30 legislative days of the issue date.
Both Ukrainian and foreign entities pay their taxes on a
quarterly basis. It is important to obtain the services of
experienced international accountants for tax-eporting purposes,
as many local accountants have not yet made the switch to the
international accounting standards required for new tax
reporting.
3. Procurement practices
Procurement practices in Ukraine include all methods of
procurement, including open and closed tenders. In order to
avoid abuses in strongly monopolized areas of industry, the
Ukrainian government usually prefers open tenders as a main
procurement method. However, in a country with an underdeveloped
business infrastructure, personal contacts and networks still
play a very important role in the procurement process.
4. Financing
A variety of sources exist for funding investment projects in
Ukraine. They include government agencies, government-funded
programs, publicly and privately-financed investment funds
directed towards defense conversion, venture capital funds, and
grant programs. However, Ukraine's budgetary belt-tightening
measures make large amounts of government financing unlikely.
U.S. companies would be wise to concentrate on private sources of
financing, as well as U.S. and international programs for trade
and project finance, particularly when considering large
infrastructure projects.
The following list contains U.S. and international programs for
sources of financing:
- Export-Import Bank (Ex-Im Bank);
- Overseas Private Investment Corporation(OPIC);
- U.S. Trade and Development Agency (TDA);
-European Bank for Reconstruction and Development(EBRD);
- Western NIS Enterprise Fund;
- U.S. Agency for International Development (USAID);
- World Bank.
For contacts and further information about these programs and
institutions, please contact the Commercial Service of the U.S.
Embassy in Kyiv.
Regional and city administrations, commercial banks, and large
enterprises have their own (limited) financial resources that are
often directed towards TV broadcasting projects.
KEY CONTACTS:
A) AMERICAN EMBASSY
Commercial Service
7, Kudriavsky Uzviz, 2nd Floor, Kyiv 252053, Ukraine
Tel: (380-44) 417-2669, 417-1413; Fax: (380-44) 417-1419
Contacts: Andrew Bihun, Senior Commercial Officer
Bela Babus, Commercial Officer
Ruben Beliaev, Industry Commercial Specialist
B) UKRAINIAN GOVERNMENT
1. Ministry of Information of Ukraine
2, Proryzna St., Kyiv 252003, Ukraine
Tel.:(38044) 226-8769; Fax: (38044) 228-0991
2. National Council for TV and Radio Broadcasting of Ukraine
9, Shota Rustavely St., Kyiv 252023 Ukraine
Tel.: (38044)221-5452; Fax: (38044)240-0888
3. State Committee for TV and Radio Broadcasting of Ukraine
26, Khreschatyk St., Kyiv 252001, Ukraine
Tel.: (38044) 228-3036; Fax: (38044) 229-1170
Contact: Alexander Savenko, Head
4. State Committee for Communications and Information
Technologies of Ukraine
(Formerly the Ministry of Communications of Ukraine)
22, Khreshchatyk, Kyiv 252001, Ukraine
Tel: (380-44) 226-2140; Fax: (380-44) 228-6141
Contact: Oleh Shevchuck, Head
5. National Space Agency of Ukraine
Olexandr Nehoda, Director General
11, Bozhenko St., Kyiv 252022, Ukraine
Tel: (380-44) 226-2555; Fax: (380-44) 269-5058
Tel: (380-44) 268-7218; Fax: (380-44) 269-5058
Contact: Mr. Eduard Kuznetsov, Deputy Director for Satellite
Communications
6. Radio Broadcasting, Radio Communications and Television
Concern (RRT)
10, Dorohozhytska St., Kyiv 254112, Ukraine
Tel.:(38044) 226-2260; Fax: (38044)440-8722;
7. Ukrainian Scientific Research Institute of Radio and
Television
1, Cheluskintsev St., Odessa 270000, Ukraine
Tel: (380-482) 22-2868; Fax: (380-482) 22-4583
Contact: Mykola Mykhaylov, Director
C/ TELEVISION COMPANIES
COMPANIES BROADCASTING Nationwide
NATIONAL TV COMPANY OF UKRAINE
42, Melnikova St., Kyiv 254119, Ukraine
Tel.: (38044) 211-0737; Fax: (38044) 219-3905
Contact: Dolhanov Vadim, President
AGB UKRAINE
7, Holosyyvska St., P.O. Box 98, Kyiv 254070, Ukraine
Tel.: (38044) 265-8425; Fax: (38044) 247-6790; E-mail:
dutch@agb.kiev.ua
Contact: Dmytro Dutchyn, Managing Director
This company monitors TV audience, advertising and ratings.
INTERNATIONAL COMMERCIAL TV&RADIO BROADCASTING COMPANY ICTV
PO Box 359/4, Kyiv, 254107
Tel. (38044) 211-2096, 241-7359, 241-7363 Fax 211-2096 E-mail
serg(o)ictv.kiev.ua.
Contact: Yuriy Plaxuk, Director General
Robert Clark, Chairman of Board
TV and radio broadcasting, programmes production, transmitting of
programmes by leading world TV Co's, programmes translation and
adapting: video recording and editing in Betacam-SP format,
advertising clips' producing and adapting.
18 Regions of Ukraine 32 UHF (Kyiv)
transmitters - from I kW to 10 kW, 22 M license _000155 issued
29.04.1996 for 5 years.
INTERNATIONAL MEDIA CENTER: STB CHANNEL
1, Shevtsova St., Kyiv 252113, Ukraine
Tel: (38044) 446-2060; Fax: (38044) 446-1108; E-mail:
office@imc.kiev.ua
Contact: Mykola Knyazhytsky, President
STUDIO 1+1
7/11, Kkreschttyk St., K
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