PRIVATE TV STATIONS: THE BATTLE FOR SURVIVAL Armenia


by David Zenian

If Armenia's Soviet-era state television station is dying a slow death, the battle for survival is just as tough for the independent networks that have filled the airwaves since the collapse of the Soviet Union.

"We all know that quality broadcasting is a top priority, but we also need financial security to stay on the air," says Mesrop Movsissian, general manager of A1+, one of the several privately-owned television stations in Armenia. His views are echoed by competitor Meroujan Ter-Gulanian, owner and general manager of "AR" Television, another one of Yerevan's many private stations.

Between them, the two stations reach a viewing public of more than two million people in a country of three million where the antiquated State Television is shunned by the public.

"In the race for a share of the viewing public, State Television comes last," said a Western consultant involved with international efforts to enhance private broadcasting in Armenia. It still maintains more than 1200 people on its staff, but both media experts and government officials alike say the network is more than over-staffed.

"State TV needs a major house cleaning, but the government seems reluctant to do that. Private stations do a much better job with just a handful of people," an expert said. "In the free world, competition is a key element, and private broadcasting enhances a democratic society".

In the 1998 presidential elections A1+ gave unprecedented live coverage from most polling stations along with interviews with voters and politicians. Armed with cellular telephones and camera crews, reporters drove from place to place, keeping the public informed of every small development and incident. "They did an excellent job. They kept the election process as transparent as possible," a Western diplomat said.

But if private stations are to remain on the air, they need advertising revenues, and this is difficult in Armenia because advertising is a new and often misunderstood concept.

Ter-Gulanian's "AR" television station went on the air in 1997, and recently news segments were added to its 8-hour long programming which also includes several live broadcasts dealing with social issues. "Our four daily newscasts fill a major gap because local newspapers reach such a small segment of the population," Ter-Gulanian said.

"These are direct transmissions .. live. Our station acts as the voice of the people. It often takes on major issues, which concern the population," he said.

A recent "issue oriented" report involved the high taxes on imported cars. "We argued that it was meaningless to put such high taxes on a product which was not produced locally. We said concentrate on local products, and leave others alone. The taxes on imported cars eventually came down to 15 percent," he said. "Another issue involved Yerevan's main water pipes which we found passed under an illegally expanded cemetery. This is a major health hazard, and after the fuss we made, it is now being dealt with by the government".

Ter-Gulanian, a journalist and member of the Armenian Parliament, launched his station with the help of an international grant, but now depends on advertising revenue to keep his station on the air. "The law allows 25 percent of air time to be devoted to advertising, but we are nowhere near the quota because of the poor economy. In any given 8-hour broadcasting day, only 15 minutes are filled with advertising," he says.

His explanation is that advertisers are afraid to use private television stations and prefer to use the state-owned network hoping to "win favors" from the authorities.

While this may not be the whole truth, a recent unofficial survey indicated that Armenia's better known and larger companies rarely, or if ever, advertise their products on private stations.

"In general, advertising is very weak. People do not realize that results from advertising often takes a long time. They expect results in a few days or weeks," Ter-Gulanian said.

"There is also the perception that if you spend money on advertising, then you must be doing well in business -- which means you are rich. They do not want that too, because they are afraid the government might say: How come you are not paying your taxes if you are making enough to spend on advertising," he said.

But Ter-Gulanian is not discouraged. 'There is no censorship and we are free to report what we want. This, in itself, is an encouraging phenomenon," he said.

Recently Ter-Gulanian introduced a Hyde Park-style daily program -- an open and unedited forum where the station's camera crew sets up in a major city square and invites people to just walk up and air their grievances.

"This is an everything-goes kind of program. We have been criticized for this by some people, but I have to also add that the government recently asked us to put together a selection from these unedited remarks on tape so that the various departments will have a better idea what needs to be addressed," he said.

Ter-Gulanian wants to add a 15 minute daily English newscast for the large expatriate community and a similar Russian-language newscast. At the moment, however, Ter-Gulanian's "AR-TV" station fills most of its air time with documentaries, movies and similar light programs. "The public in Armenia, just like anywhere else in the world, wants entertainment," he said.

"Have a look at the smaller television stations in the United States. How much original programming do they produce. Most of their shows are syndicated and are the work of independent production studios who sell their products to these smaller stations.

"The situation is not different in Armenia. Private television is new here. It all started a few years ago and we are all learning what the public really wants. At the moment, it's entertainment," he said.

Another, but older station is A1+ owned by Mesrop Movsissian who started his broadcasting career in 1991 through a production company which provided TV news stories to Moscow's Vestia news program. "Soon we were giving similar news material to London's WTN, Germany's ZDF and other stations. In effect our company, was acting as a news correspondent and camera crew for the European networks who did not have their own reporters in Armenia and Karabakh," Movsissian said.

In 1993, Movsissian and his partners reached an agreement with Armenia's State Television to go on the air itself for four hours on Sundays with local programs. No payment was involved because it was sort of a barter arrangement-free air time in return for name recognition.

Over the years, the arrangement was changed, first for a 50-50 cost sharing deal with the State television's second channel and finally to full independence in 1996.

"We could not have done it without the help of the United States Information Agency and USAID which gave us a small transmitter, thus paving the way to go on our own," he said.

But a private transmitter was not enough. A1+ needed a partner to help defray some of its operational costs.

"We entered into an affiliate arrangement with Russia's independent REN-TV, a commercial station which has similar arrangements with a number of private stations across the former Soviet Union," he said. The arrangement gives A1+ copyrights to various international programs and films which it would otherwise not be able to afford.

"It works like this. A1+ tapes the REN-TV programs overnight and plays it back during the day. In return, REN-TV has access to all our local coverage of news and events not only in Armenia but also Karabakh. Movsissian admits this is not a perfect arrangement, but nevertheless the best in the commercial world of private television. "Good programs are not enough to keep us on the air. We need an income.," he said.

To meet his rising costs, Movsissian now offers six-month courses in television journalism and technology to young Armenians. The course, which is partly funded by the Soros Foundation, concentrates on editing, lighting, sound, camera operation, field journalism, writing, and other aspects of the television industry.

"The Soros Foundation pays $3,000 to put 10 students through the course and we charge $300 for dozens of others who enroll in each session," he said. The program generates much needed cash for the station and opens up avenues for a new generation of aspiring television journalists and technicians.

"Many of our graduates are already on our staff. Independent television is the way of the future. The country needs these young talents," he said.

With a start-up salary of anywhere between $100 and $150, the waiting list of new students is long. "We cannot accommodate more than 30-40 students at a time," Movsissian said.

Private television has a long way to go, but given the enthusiasm and perseverance of a new generation of entrepreneurs, the learning process will continue.

Originally published in the September 1998 issue of AGBU Magazine. Archived content may appear distorted on your screen. end character

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