Professional paper
Competing for Advertisers. The Implications of the Law on the Public Broadcasting System for the Commercial TV Sector in Bosnia and Herzegovina
Tarik Jusić
Abstract
This text explores possible implications of the Law on the Foundations of
the Public Broadcasting System and on the Public Broadcasting Service of
Bosnia and Herzegovina (PBS Law) for the development of the commercial
TV sector in the country. Namely, it has been claimed that the Law directly
endangers the commercial TV sector by providing generous advertising quotas
for public broadcasters. Starting from this assumptions, we analyzed the provisions
contained in this law, interviewed the relevant professionals, and compared
our situation with similar experiences in other countries.
The counclusion of the study is that the PBS Law itself will not directly
lead to the destruction of the commercial TV sector. The primary threat to both
commercial and public broadcasters is the underdeveloped advertising market.
The majority of media outlets are unable to generate enough revenue to cover
their basic expenses.
The key factor inhibiting the growth of the advertising market is the extremely
low price of advertising space. There is a need for action of both
commercial and public broadcasters to develop a pricing strategy that would
effectively increase the overall size of the advertising market.
Further factors inhibiting the development of the commercial TV sector are
the weak cover-signal of commercial TV stations unable to compete with public
broadcasters, and the sheer number of TV stations competing for rather
limited advertising revenues.
There is the potential for a long-term redistribution of advertisements from
public to commercial TV stations, which will primarily depend on the quality
of programming and reach of the signal of commercial stations.
A reduced number of TV stations, in combination with the development of
a market economy and competition and followed by the growth in the size of
the advertising market, will ensure the survival of commercial TV sector.
Keywords
advertising; advertising market; marketing; public television; commercial television; law regulation; Bosnia and Herzegovina
Hrčak ID:
23328
URI
Publication date:
10.6.2003.
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