06. 04. 2009

JOURNALISTS JOIN THE UNEMPLOYED

The economic crisis knocks at the door of domestic TV stations. Their response – budget cuts.

If it is true that poverty stimulates creativity, we will watch the best programme ever.

Belgrade, April 6, 2009 (Vecernje Novosti) – The news we read in the newspapers and watch on television become obsolete very quickly. Unfortunately, the economic crisis is not one of them. Stories and apocalyptical economic prognoses pervade the media, the society and culture... Print and electronic media have been directly hit by decreasing revenues from advertising, which hinders further development and planned investments. Some of them have introduced restrictive measures like dismissing employees.

CNN has already announced dismissal of more than 500 employees, which is the biggest reduction of workforce in its history. A competing media outlet, the BBC, is in the similar situation. BBC has laid off hundreds of employees, whose response was to announce a strike on April 9.

Our national TV stations agree that the economic crisis has hit all of Serbia, including the television industry.

- When our clients feel the crisis, we feel it too, explains Tatjana Vojtehovski-Stevanov, the PR manager of Pink TV.

The public service broadcaster says that they suffer from same hardships as the citizens of Serbia in the time of crisis, describing a crisis management plan that was prepared six months ago with the aim to achieve savings and more effective production.

- Our citizens should pay for the cheaper and more efficient system of public service broadcasting with a full-size programme. Their money should not be spent on salaries and an expensive system of maintenance of RTS, says Duska Vucinic-Lucic, PR manager of RTS.

Most of TV stations have planned new, revised and significantly reduced budgets for this year. All of them emphasize reduction in expenses, but interpret it differently. What does it mean for employees in Serbian TV stations, and what does it mean for the viewers? Where will the biggest cuts be made? Will we lose domestic series, live sport, exclusive stories, film premieres, luxurious shows... because they are "too expensive"? Or will we just witness hundreds of journalists, editors and cameramen joining the long lines of the unemployed, without any prospects of changing their status?

Highest salaries have been reduced by 10-15 percent, representative expenses have been practically banned, usage of mobile and fixed phones is now limited. Trips abroad have been reduced as well, including the number of people who are required to travel around the country. All cars for the top management have been placed into a single pool. No one, including the director, is allowed to have a personal company vehicle, explains Duska Vucinic-Lucic, adding that the public service broadcaster is currently implementing the "third wave" of a social program which should encompass around 1,000 employees.

- We are looking for volunteers for the social program, people who are one or two years  away from the retirement. We will reduce the number of employees in each professional area and believe that we will manage to bring it under 3,000 during this year.

- The crisis will hit all firms in Serbia, although in the case of TV Pink the situation is not alarming. Expenses are covered by marketing, not viewing ratings, and since we have never had any other source of income except the advertising time we sell, our business results are satisfying, says Tatjana Vojtehovski-Stevanov.

In her words, at the moment, TV Pink feels no need for drastic belt-tightening. How about more rigorous measures like laying off employees?

- TV Pink will not reduce salaries or dismiss employees, she confirms categorically.

Pink has several very demanding and expensive shows in its schedule. Will there be any reductions?

- We will not sacrifice our production, on the contrary! We will introduce a new show, and it will be the biggest show so far, says Tatjana Vojtehovski-Stevanov.

Veran Matic, director of B92, says that this TV station has felt the impact of the crisis since the last quarter, mostly because of advertisers' reluctance to spend their marketing budgets at the same pace as usual:
- During the first three months our income was reduced by 20-40 percent, which is a lot if we have in mind that we have already included the expected effects of the crisis in our planned budgets.

B92 has reduced the expenses, mostly regarding the purchase of external production, as well as by introducing rigorous savings in every segment of business activities. Reduction of costs was also achieved in the area of employment.

- We have quit hiring temporarily employed or part-time staff. Their tasks are now shared among full-time employees, explains Matic, adding that closure of B92 Info channel is not planned, despite rumors.

In his words, savings could be achieved "from the outside" as well – in the form of decreased fees for broadcasting and use of TV frequencies. Although the law stipulates that the fees paid by broadcasters should be calculated taking into account the programme content as well, Matic says that all broadcasters are currently paying the same amount, which is illegal and unacceptable.

Vesna Radakovic, editor in chief of Fox, says that the crisis have knocked at all doors, including theirs.

- We have frozen the salaries, we don't hire anymore, travels are canceled, as well as representation... in a word, all "luxury items".

Will there be any layoffs in response to the crisis?

- We will fight hard to keep all employees, which will be our primary goal! We will strive to reduce all other expenses to be able to save all the jobs, says the editor of Fox.

Just like in most other TV stations, Fox believes that reduced budget does not necessarily imply lower quality programme

- TV Fox will make effort to keep offering interesting programme content to its viewers. This year we have completed production of a domestic series, as well as a new series of "Fort Boyard", new season of "The Survivor"... We have also secured live broadcasts of the Spanish Primera, Formula 1...

- The crisis has spread all over Serbia, and it certainly could not avoid a small and developing TV station. It has hit us during investment projects, while we were in the process of completing two studios and beginning the work on the third, says Milomir Maric, editor in chief of TV Kosava. In his words, before anyone invests in the media, they reconsider such decision very carefully, while foreign investors refuse to invest in our TV stations. Kosava's budget will suffer numerous restrictions:

- We will hire less people, but I hope that we will improve our enthusiasm and make a productive atmosphere that will allow us to increase creativity. We have started new projects with two new studios that will record programme full-time. Of course, with a limited budget.

What will happen to the employees?

- Television is an expensive industry, and not many participants in this market can afford it. Rationalization will include all segments of our business activities, says Maric.

- No one can afford to buy live sports matches or expensive programmes anymore, and the situation is the same in Kosava. We will rely on the people we have and our internal reserves. After all, creativity increases during hard times, Maric believes.

TV Avala has also been forced to reduce expenses. Jelena Krstovic, PR manager of Avala, says that such steps have already been partially undertaken in last two months.

- At this moment we have no plans to reduce production, change our programme schedule, lower the salaries or dismiss employees, says she.

Still, some savings measures will be introduced:

- We will not renew some contracts related to external production projects which are about to expire soon. Very soon, TV Avala's viewers will not have a chance to watch "Show Genius" and "Karaoke Duel".

Internet Piracy

Apart from the crisis, TV stations in the world have been hit by Internet piracy as well. Some of the most visited world's web sites (like YouTube) offer their visitors free and illegal episodes of top-rated series, television shows, documentaries, concerts... In this way many viewers – estimated in millions – have free access to the most attractive TV content. Since the world's best and most watched channels earn a large portion of their revenues from subscription fees, the Internet has deprived them of multi-million sums.