Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

'This used to be your favourite show': Polish media falls silent to protest tax

Published 02/10/2021, 08:21 AM
Updated 02/10/2021, 11:12 AM
© Reuters. The pages of Poland's main private internet portals have black pages with the slogan 'Media without choice' in protest against a proposed media advertising tax

By Joanna Plucinska and Kacper Pempel

WARSAW (Reuters) - Several private TV and radio stations and web portals in Poland took themselves off the air on Wednesday in protest against a proposed media advertising tax they say threatens the industry's independence and its diversity of views.

In place of their usual shows, the outlets ran written or spoken slogans like "This used to be your favourite programme" and "Media without choice".

Critics say Poland is following the example of central European ally Hungary in trying to increase government control over the media, an issue that came into sharp focus in December when state-controlled oil refiner PKN Orlen said it was buying German-owned newspaper publisher Polska Press.

The self-imposed 24-hour silence came a day after many publishing groups addressed an open letter to authorities to object to the planned tax, which the government says will help raise funds for healthcare and culture, both hit hard by the coronavirus pandemic.

The letter said the tax would mean "weakening, and even eliminating some media in Poland" and deepening inequalities between private outlets and public ones, which the signatories said were heavily supported by the government.

"Many publications are balancing on the edge of profitability. This additional tax could take away all of the remaining profits," Marek Frackowiak, the head of the Association of Press Publishers, told Reuters.

In particular, outlets pointed to the economic hit private media had already taken during the coronavirus pandemic.

According to the Association of Local Newspapers in Poland, the local press saw an approximate drop of 30% to 50% in advertising revenue and a 30% drop in sales since the pandemic began last year. Larger press publications also complained of a significant drop in advertising and sales revenue.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Bartosz Weglarczyk, editor-in-chief of web portal Onet, told Reuters the outlet's parent company Ringier Axel Springer could be paying 10-20 million zlotys ($2.7-5.4 million) extra a year due to the new tax, according to its calculations.

"It means media will remain on a leash and those who jump or pull too much won't get money from the government, for example, and will have to shut up shop," Bartosz Wielinski, the deputy editor-in-chief of Polish daily Gazeta Wyborcza, which took part in the campaign, told Reuters.

TV broadcasters Polsat and TVN, radio station Radio Zet and web portal Interia were also among outlets that halted coverage on Wednesday.

GOVERNMENT RESPONSE

In stark contrast to the slogans of these private outlets, public broadcaster TVP Info - which did not go off-air - ran news tickers including "Media companies don't want to share their multi-million profits with Poles" and "Media firms are treating Poland like a colony."

The government has long argued that foreign media groups have too much power in the Polish media landscape, distorting public debate.

It says the tax will benefit the whole population, and that other European countries have similar levies.

Government spokesman Piotr Muller told TVP Info that the tax could amount to anywhere between 2% and 15% of advertising income, depending on the size of the company.

($1 = 3.6985 zlotys)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.