Georgian National Communications Commission: TV Broadcast revenues are stable and have not been reduced
National Communications Commission responds to Forbes's Georgia publication. In particular, the Commission explains that TV broadcast revenues are stable and have not been reduced. In the statement we read: “Forbes Georgia magazine and Agency bm.ge published an article titled - "TV revenues have been reduced” – which does not correspondents to the true.
Information about TV broadcast revenues published by the National Communications Commission in 2018, was treated incorrectly and with factual errors. The Commission applied the head of Media provider with request to correct mistakes, but the request was not shared. Therefore, it is necessary to once again convey information to the public about TV broadcast revenues of 2018.
The first - gross violation and incorrect information is that Media provider in the article brought non-broadcast revenues in TV revenues.
In particular, they have attributed to broadcasting revenues income from the sale of equipment, furniture, and other similar inventory. The realization of this type of inventory is not connected to broadcasting revenues. The website of the National Communications Commission clearly defines the types of revenue, including the separate field for non-broadcast revenues.
Unfortunately, the edition did not take into consideration and did not provide the reader with the information that the TV revenue presented in the article included non-broadcast revenues. It is noteworthy that counting principle of the commission is the same as in European countries.
The second – the article says – “Georgia’s TV channels total revenues in 2018 was 137.2 million GEL, which is 9.4 million GEL less than in 2017”. This data is also not correct as it contains non-broadcast revenues, as it was mentioned above.
In fact, in 2018, the broadcast revenues of TV channels of Georgia amounted to 135.650.527.06 GEL in total, which is 7.661.663.13 GEL
more than in 2017. The article and the title emphasize that TV revenues have decreased. As proof are used non-broadcast revenues. The edition, of course, could use this data, but not so as to introduce consumers into error and present non-broadcast revenues as TV revenues.
The third – the article says -“The revenues of TV companies have been reduced by 16.9 million GEL. As in the previous case, the data is also incorrectly presented here. 16 million GEL, which was brought into TV revenues and showed a decline, is entirely non-broadcast income from the sale of equipment by the TV company GDS, which is not a broadcast income.
The fourth - article says – “As for the sponsorship and revenue received from advertising, TV channels in this way received a total of 67.2 million GEL, which is less by 1.9 million GEL than in 2017. In this case, the question is - whether the Media provider aimed at analyzing the advertising market and the relevant revenue, why it indicates only two components of advertising revenues, when the advertising revenues also consists of - advertising, sponsorship, product placement, announcements and TV shopping. According to international practice, advertising revenues are calculated using these indicators and it is clearly reflected in the European Directive.
In fact, the total advertising revenue of 2018 was 75.262.995.32 GEL and 75.421.094.65 GEL in 2017.Actually incomes are at the same level and the difference is only 0.2%.
Based on this, the data published in the article is wrong, because in total TV broadcasting revenues, broadcasters have 7.661.663.13 GEL increase and the Advertising revenues are at the same level and the difference in comparison with 2017 is 0.2%.
National Communications Commission, based on analyzes of the broadcast revenues is declaring that the broadcast market is stable. In the first quarter of 2019, 8% growth in TV advertising market was recorded as compared to the same period of 2018.
In the first quarter of 2019, TV broadcasters received income of 12.686.428.19 GEL. In 2012, this indicator was 11.789.995.20. GEL Here, we note once again that the TV advertising market is not declining and remains at the same level. In the last study, a similar trend is in European countries too. Due to the fact that the digital media is developing very fast, the revenues from traditional media go to new media. The Commission encourages the broadcasters to keep up with new challenges and develop digital platforms” - the statement says.