June 2003

This report explores the role and involvement of foreign company ownership - especially on the part of United States groups - of media in the Central and Eastern European (CEE) countries. It begins with this statement: "The enlargement of the European Union poses particular problems and raises issues in terms of media concentration and the promotion of policies to protect media diversity....Within these CEE countries there are wide variations in attitudes and policies towards media regulation, ownership, and the status of public service broadcasting..."

These problems and issues relate to infringements on the ability of local, independent media groups to contribute to national media. The report found that exports of film and television products on the part of top United States media groups (like Viacom, The Walt Disney Company, AOL Time Warner, Liberty Media, Central European Media Enterprises Ltd (CME), and Scandinavian Broadcasting System SA) to CEE countries "rank with aircraft sales as the top categories". Noting that these United States media groups focus on audio-visual media rather than print, the report finds that "...the U.S. commercial broadcasting model stands in stark contrast to the concepts of media pluralism and diversity, which still shape debates on media policy in Europe."

Foreign ownership on the part of media groups from elsewhere in Europe also raises issues. The authors point to concern about the high levels of ownership of local, regional, and national newspapers and magazine publishing by Western European media groups like Westdeutsche Allgemaeine Aeitung, or WAZ. The report identifies a risk associated with this kind of foreign ownership: "they do not pay enough attention to training, pay and the status and independence of journalists in carrying out their work..." The report does indicate that in some countries, Western European media groups have taken control of national newspaper titles but still relinquish most of the control to the regional press ownership.

In conclusion, the report finds that "Foreign investment in CEE countries can bring benefits in terms of greater resources, improved management and increased independence from national political elites. However, there are also strong indications that aggressive commercial policies are being pursued at the expense of journalistic standards, threatening pluralism and undermining journalists' professional and social rights. Journalists in CEE countries are particularly vulnerable to this downward pressure due to the weaknesses of their trade unions." Furthermore, "The regulatory bodies that have been established to oversee broadcast media are, in many CEE countries, appointed by political elites who want to ensure continuing control over areas of the media. This trend raises issues of democratic accountability and transparency in the appointment of people to oversee the work of these bodies, and the basis for the allocation of broadcasting licences."

Click here [1] to access the full report (in either Word or PDF format).

"EFJ Launches "Devastating" Survey on Foreign Ownership in CEE Countries" [2], dated June 24 2003, on the European Broadcasting Union site.