04. 06. 2011

State cannot own the media

The Strategy of media system

Belgrade, June 4, 2011 (Dnevnik) - The Draft Strategy for Development of the Public Information System in the Republic of Serbia until 2016 envisages the withdrawal of the state from ownership in the media, it was published on the website of the Ministry of Culture. The Draft Strategy, prepared by the expert working group, is also dealing with the role of media in society, ownership of the media, public service broadcasting, digitalization, media concentration, media literacy and media pluralism.

According to the Strategy, the state cannot own the media. Moreover, the state should withdraw from the ownership in the media without delay and within 18 months from the date of Strategy's adoption at latest. According to the Draft, there should be no direct state funding of the media, but only the project funding in the public interest and on the basis of open public competitions.

"The withdrawal of the state from the media ownership implies privatization and/or conversion of the state ownership into shares and their transfer without compensation, in accordance with the regulations governing the area of privatization", it was stated in the Draft. According to the working group, Tanjug news agency must be privatized within 18 months from the adoption of the Strategy.

State aid to the media will depend on the accomplishment of public interest. Budgets for this purpose will be determined in advance and grants will be awarded through a transparent procedure, under equal conditions for all and on the open competition basis. Project selection will be entrusted to an independent commission, who will work transparently. Assessment and monitoring on how distributed funds are used will be conducted, too.

Data on the media ownership are to be transparent and actual owner of legal entity - founder of a media outlet - has to be known, as well as the source of assets (capital) invested in the media.

Republic of Serbia will prevent illegal media concentration, both horizontal, including cross-media ownership (parallel ownership of various media) and vertical (parallel share in different markets of importance for media production and distribution, including advertising market, distribution of printing and electronic communications). It is necessary to prevent parallel ownership in print media and distribution and sales network. Funding for content of public interest published by the local press needs to be provided from public revenue by the application of the project-based funding principles.

The following incentive measures were proposed: reduction of the VAT rate on the sale of the print media, news agency services and media content funded through state aid; reduction i.e. abolition of customs duties on production material, stimulation of employment in the media sector by relieving employers from paying a share of the taxes. In addition to that, state bodies are mandated to buy media advertising space directly from the media outlets, not through agents.

The integral version of the Draft Strategy is available on the link: http://www.kultura.gov.rs/.

Privatization of media on minority languages

The Strategy foresees the media in minority languages, operating as public companies, be privatized and enabled continuity in work. As for the status of former federal public institutions, after recognizing the public service, the closing down or affiliation of Radio Jugoslavija to the public service will be considered, while "Jugoslovenski pregled" could be incorporated into "Official Gazette".