Amour Club News

Ukrainian domestic television market gradually improves and becomes all-sufficient. Holders of popular Ukrainian TV channels bit by bit start realizing that their businesses cannot remain forever toys in their hands and will definitely need other vectors for development in the near future. ? TV channels can??™t solely work as instruments for the realization of owner??™s private ambitions and broadening of their political influence, as they serve today. Sooner or later, Ukrainian TV market will get a new impulse, which will force holders (our prominent Ukrainian oligarchs) to reconsider their strategies. ? This thought is even now testified by just another revision of property that takes place today. Smart owners try to control assets and develop new spheres of business at the same time. For example, the company ???1+1??? had already started to develop their internet site. In such way the channel hopes to gain another 150 thousands of people to their traditional audience.?  Besides, shareholders of ???1+1??? continue developing cinema business. In Odessa they opened a big cinema complex, consisting of 8 halls, the biggest cinema in the country. ICTV channel is targeted on selling DVD and films distribution. TV can become an excellent ground for other businesses. People can buy books, advertised in TV-shops or the same clothes that wear their favorite presenters. Nevertheless, the owners are mostly occupied by counting their profits. Another interesting fact: none of them is ready to point an exact price for their media holdings. May be they are simply waiting for proposals? Meanwhile, the concentration of property takes place. Not so long ago, Viktor Pynchuk started consolidation of his three channels: aforementioned ???ICTV???, ???STB??? and ???New channel???. Something similar carried business groups with industrial assets. They put in order the system of property rights, optimized industrial processes, singled out financial center. All these procedures helped to raise company??™s capitalization. Some of businesses were finally sold; others are still waiting for foreign investors.
Today Ukrainian media market is one of the most rapidly developing in the world. The market increases annually by 40%. And there all grounds to expect during next 2-3 years the same positive trends. Even in Russia, in spite of substantial limitation of TV advertising, the market has grown by 60%. We should always keep in mind that Ukrainian market has much in common with the last one. The weight of TV advertising in Ukraine is one of the highest in Europe ??“ 70%. So the best opportunities for ???skimming the cream??? have TV channels. However, everything is not so simple. The competition on Ukrainian TV market is very tough, and market capacity is smaller than average European. It is also impossible to set new channel, as there are no free frequencies. But nevertheless, the question of investments remains a question of big importance. Media will always remain the creative and profitable business. Important plus in favor of starting TV business, is that local authorities are usually more interested in friendly relations than in any other sector of economy. Rupert Merdoc, the owner of ???News corporation??? (the global empire, holding nearly 150 newspapers and journals) once shared his wise observation concerning perspectives of TV business. He said: ???I??™ve borrowed so much, that none of the banks will ever let me bankrupt???. All this should persuade strategic investor keep an eye on Ukrainian TV market.