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Russian Media Model: Ownership Structures

Russian Media Model: Ownership Structures Professor Elena Vartanova Faculty of Journalism Moscow State University/ Aleksander Institute, Helsinki University Types of Ownership State companies: VGTRK, ITAR-TASS, RIA ‘Novosti’ Mixed ownership: Channel 1 Private companies

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Russian Media Model: Ownership Structures

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  1. Russian Media Model:Ownership Structures Professor Elena Vartanova Faculty of Journalism Moscow State University/ Aleksander Institute, Helsinki University

  2. Types of Ownership • State companies: VGTRK, ITAR-TASS, RIA ‘Novosti’ • Mixed ownership: Channel 1 • Private companies • Large recourse companies with core sectors outside media business (Prof-Media, Gazprom-media) • Large industrial enterprises with various interests (AiF, MK) • Companies with core media businesses (radio: Russkaja Media Grouppa; magazines: Hachette-Fillipacci-Sckulev, Id Rodionov)

  3. Top Publishing Companies

  4. State Owned VGTRK • CEO Oleg Dobrodeyev • Structure • TV: 3 federal channels • Rossija: penetration - 90%, rating - 20-22% • Kultura, • Sport • + Euronews Russia, RTR Planeta, Vesti-24 • Radio: • 3 nation-wide news channels: Radio Rossiji, Golos Rossiji, Mayak • 3 light music stations for ‘ordinary people’: Orfey, Yunost’, Nostalgia • News agency: RIA ‘Novosti’ • Regional companies: 80 GTRK

  5. What Owns Gazprombank? • Gazprom Media (Nikolai Senkevich) • 94,14% shares of Gazprom Media are owned by state company Gazprom • Rumors about IPO • Radio • RadioDom Gazprom Media: 4 stations, • Ekho of Moscow’ • TV • NTV • TNT • NTV+ (digital satellite) • NTV Media (TV advertising) • Print media • ‘7 dnei’ publishing house (4 magazines: 2 glossy + 1TVguide +1 political weekly) • Tribuna (daily) • Izvesija (daily)

  6. Interros Holding Company: Media Interests • Prof-Media • Print media • Komsomolskaya pravda (daily) • Sovetskiji sport (daily) • Express gazeta (daily) • Belorousskaya gazeta (daily) • 4 magazines • Radio • Radio corporation ‘Prof-media’: 4 stations • Online • Rambler (IPO in 2005) • Distribution • Delivery network ‘Segodnya’ • Printing plant ‘Prof-Media Print’ • Cinema ‘Cinema park’

  7. New Player: Promsvyaz’kapital • Promsvyaz’kapital= Promsvyaz’bank • Media assets • Print media • Trud (daily, purchased by $8 mln) • AiF (control share) • Distribution: retail networks • Mosoblpechat (Moscow) • Metropress (St. Petersburg) • Printing house: ‘Media pressa’

  8. RMG - Leader of Radio Market • CEO and owner Sergey Kozhevnikov • Radio • 6 stations: Russkoje Radio, Russkoje Radio-2, Dynamite FV, Maximum, Monte Carlo,Hit FM • Advertising • Gramophone Reklama • Production • Gramophone Records • Concert Activities • Rosconcert • Print Media • ‘Penguin’ magazine

  9. Changes at Magazines Market • Publishing House ‘Sekret firmy’ • Weeklies: 3 • Online: Gazeta.ru • Books • Events • Publishing House ‘Rodionov’: Rodionov-50% shares, Makhmoudov and Bokarev-both 25% (Ural and Kousbass mining company) • Weeklies: 3 • Glossies: 3 • Specialized magazines: 2 • Recent purchaise: daily ‘Business’ bought from ‘Sekret firmy’

  10. Kommersant: Restructuring Management • Owner: Berezovsky? Patarkatsashvili? • Alisher Usmanov! (08.2006), estimate price: $ 200 mln. • United Editorial office (joint technical services) • Kommersant (daily) • Den’gi (weekly) • Vlast’ (weekly) • Avtopilot (monthly) • Molotok (monthly)

  11. Foreign ownership • Bertelsmann • RenTV: 30% shares bought from Lesnevsky’ family (the rest - 70% - was sold by RAO ‘EES Rossii’ to Severstal Group, which in turn re-sell 35% to Surgutneftegaz Group) • Sanoma • Independent Media • Magazines: 20, including Cosmopolitan, Harper’s Bazaar, Men’s Health, Esquire, Harvard Business Review • Newspapers: The Moscow Times, The St. Petersburg Times, Vedomosti, Na Roublevke • Publishing House ‘Alpina Business Books’

  12. Ownership and Management Relations: Models State (VGTRK): Management for Political Guidance Media Political Capital (Most media): Management for Political and Financial Profits Industrial and financial politicized capital (Berezovsky): Management for Political Influence Public politicians (Louzhkov, Zyuganov): Management for Political / Ideological Participation Resource capital (Interros, Gasprom, RAO EES): Management for Economic Lobbying Commercial Media Capital: Profit Oriented Management

  13. Soviet Media Integrated Political & Business Elite (Nomenklatura) Ideological Guidance (censorship+self-censorship) Operation of the media economy Technology Audiences (letters to media) Russian media Business Political Elite oligarhs=integrated business groups Advertising Elections campaigns Sponsorship (political advertising) Lobbying Ideological pressures (financial+administrative) Technology Audiences (preferred contents, ratings, feedback on internet) Major Pressures over Russian Media Media Media

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