A dynamic TV market with riches reaching maturity.

From a program distribution standpoint, Poland is one of the most lucrative territories in Europe. Stations pay record prices for studio output deals, mainly for movies. Every major international format has either been sold or is about to be licensed.

A new player on the Polish TV market is TV Puls, which was revived following a significant investment by Rupert Mudoch's News Corp last year. TV Puls was granted a general license by the government's media regulator, instead of a Catholic-only license (the old channel had been restricted to carrying only Catholic-oriented programs). TV Puls was awarded five significant terrestrial license frequencies in key cities, which will increase its coverage (both cable and satellite) to approximately 73 percent of the market come June 2008.

The channel was re-positioned in October 2007, targeting the 16-49 age group audience, and featuring original and licensed entertainment formats. It now features a growing and respected news division, producing over three-and-a-half-hours of news daily, with a political centrist point of view, with over 120 staffers in the news department. The channel's audience has grown by 63 percent and revenue has tripled since the launch.

Poland is the largest country (in terms of population) in Central and Eastern Europe (CEE) and the fifth largest television market in Europe. With a population of nearly 39 million people, there are 13.86 million TV households. The Polish economy is the fastest growing in CEE, with strong growth expected through next year. Poland was one of the 10 countries to join the European Union in May 2004.

Poland is also a dynamic, competitive television market with a growing total advertising spend (approximately U.S.$2 million per annum). Television secures a little more than half of advertising budgets. The advertising market is expected to continue its growth, between 10 to 12 percent, according to some estimates.

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There are over 70 television stations in Poland, and four of them account for a significant piece of the audience share. However, cable and satellite are fast gaining audience and advertising shares.

TVP1 and TVP2 are state-controlled. They collectively enjoy a 45 percent share of the audience. TVP also has the advantage of receiving two revenue streams: a mandatory license fee and advertising. TVP 1 produces the marketleading evening newscast at 7:30 p.m., which presents its newscast in a dull, no-nonsense style with vestiges of its Communist past. Its newscasts are perceived to take the government line. TVP1 targets an A4+ audience, but, like its sister channel, TVP2, which is more entertainment-based, it skews very old. Both channels program original soap operas, dramas, entertainment formats and political talk shows, a national main-stay. TVP has an output studio deal with NBC Universal. TVP recently converted TVP3, a network of regional stations into an ad-supported, all-news terrestrial channel, TVP Info, which is wing for market leadership in the heavily-competitive cable news race, against ITI Group's TVN24, only on cable and satellite.

Polsat, the market's .first private commercial station, recently celebrated its 15th year (see VideaAge, February/March 2000). Its programming, while having mass appeal, since it focuses on the all-important 16-49 target group, is perceived, based on market research, as down-market and rural in its orientation. Its programming consists of locally produced dramas, comedies, some formats, and a heavy roster of studio theatrical films, including output from 20th Century Fox and two of the CSI dramas. While it programs one main newscast in the early evening at 6:50 p.m., and a late-afternoon bulletin, news is not its strongest asset.

Polsat also owns the leading satellite platform, with its own content. The company reports two million subscribers and is owned by Zygmunt Soor-Zak.

TVN just celebrated 10 years in the business, and is the market's only private channel trading on the Warsaw Stock Exchange. Fifty-nine percent of TVN is owned by ITI Group, which also has a new DTH platform, 'n' or Neovision, with 13 digital thematic channels, and other programming. TVN focuses on the 16-49 demographic with the usual entertainment fare, heavy on formats, dramas, and movies from output agreements including Warner Bros. and Paramount/DreamWorks. The TV news division is considered the strongest in the market, aided by a growing and respected 24-hour news channel, TVN24, seen on cable and satellite, and a new business channel, TVN CNBC Business. TVN produces only one newscast at 7 p.m. Its terrestrial coverage reaches 50 percent of the market, but is helped by cable and satellite delivery.

The main free-to-air channels average between a 15 and 25 percent audience share, which creates one of the most competitive environments for free-to-air (FTA) broadcasting in CEE. And, the free-to-air shares will continue to drop as multi-channels gain traction.

The first digital multiplex should be introduced as early as 2010, which would create a more level playing field for TV Puls and other broadcasters.

Poland's pay-TV market is among the most competitive in CEE. In addition to the aforementioned Polsat Satellite and 'n' (250,000 subscribers), Canal Plus is the second-largest satellite provider with a reported one million subscribers. There are over 600 cable systems, including UPC Polska, owned by Liberty Global, Vectra, Multimedia Polksa and Aster City, bringing multichannel viewing to more than 60 percent.

The pay-TV international programmers include Canal Plus (movies and sports), HBO, Cinemax, Discovery, FOX Life, Hallmark, AXN, National Geographic, MTV and Viva.

The challenges, as in most territories, include a sliding share for FTA players due to audience fragmentation and increased competition.

Newscasts in Poland tend to position themselves based on political preferences. TVP is more right-wing and government-focused, even though the national elections last November, saw a new Prime Minister, Donald Tusk, leader of the Civil Platform political party, take office, handily defeating Jaroslaw Kaczynski, leader of the right-wing and the often-maligned Law and Order party, and the twin brother of the country's president, Lech Kaczynski. Ironically, it is Tusk's party, which is more business-oriented, and Kaczynski's challenge for the country's media, which seems to favor one party or another, often coloring its impartiality.

Farrell Meisel is a California-based international broadcaster anal consultant. He has worked in Russia, Europe, Asia, Turkey, the Middle East and the U.S. for over 30 years. Farrell recently completed a one-year assignment in Warsaw, Poland for the News Corporation Company to set up, launch and manage the new TV Puls for its first year of operation.