Radio in Poland regulations 2002

The renewal of  7-year-long licences granted in the first licence-granting process (i.e. between 1994 and 1995) constituted the most important sequence of events for the Polish Radio within the period of 2001-2002. Owing to the fact that the legislative regulations existing so far do not provide for the institution of prolonging the licences automatically (if a given station has not violated the conditions of the previous licence), the new process of licence-granting aroused much emotions among radio-broadcasters since certain frequencies could be obtained by other broadcasters and not only the ones who had been using them so far (and it did take place, even in the case of licences granted to national networks). KRRiT has worked out a new form of licence; this refers to programme changes (uniform standards) as well as legal changes, including also those concerning the ownership structure of radio stations.

Two national commercial radio stations (RMF FM and Radio Zet) obtained new licences, however without the right to the so-called ‘local split’  (i.e. a few minutes’ – every hour – broadcasts, in separate frequency bands, concerning local news together with local advertisements), though they had possessed this right from 1994 till 2001. In the case of RMF FM, eliminating the ‘local split’ in 15 regions resulted in the dismissal of more than 50 workers; whereas, Radio Zet lost its ‘local split’ in Warsaw. In these two cases, KRRiT took a firm stand – either the station remains national (and cannot take local advertisements away from economically-weaker local stations) or it is local (though the latter, which will be mentioned below, try to consolidate in order to obtain some advertisements in compaigns of national range). What was emphasised in the new licence was the universal character of programmes of national stations, including a detailed record on genre structure (giving prominence to information and comments) and setting a limit on verbal broadcasts to 20% of weekly air time (excluding night). It is aimed at preventing the stations from broadcasting just music and from rescheduling verbal broadcasts mainly to night hours (what happened several times).

All local stations (commercial, of social and religious character, or even academic) have a lower percentage of verbal broadcasts in weekly air time: 10% in small towns, and 12% in big cities (owing to the potential of the advertising market), and they are obliged to broadcast local programmes. Local commercial stations can have either a universal or music character (and then – beside local news – half of the time of verbal broadcasts should be devoted to discussions of music programmes, presentations of artists, etc.). There won’t be any renewed licences granted to local government stations (owned by local councils and its members) in the new process; previously there were several of them, but  in practice they were taken over by private companies.

A new category of a ‘social broadcaster’appeared (after the amendment of the act), which functions as a commercial broadcaster exempt from the licence fee. In practice, only the national Radio Maryja asked for such a licence (and obtained it). Other Catholic stations (belonging to dioceses, orders, parishes), as well as academic usually intend to base their acitvity only on profits from advertising, though on a smaller scale (7.5% of the air time), which means lower licence fees for them.

Generally speaking, with regard to the new licence-granting process (till mid-May 2003) 3 licences to national networks were granted, moreover, 2 (in 3) to supra-regional and something more than 150 to local stations. Five stations which were present on the air for 7 previous years did not get new licences (and their frequencies were granted to new broadcasters). Apart from the stations mentioned above, there are also 40 local stations (including 4 with the status of local government stations, and 2 academic) present on the air – using UKF (FM) frequencies – which started their activity in 1996-1998. In the nearest future, some of them are going to ask for new licences (including a supra-regional network – Radio TOK FM), the others – in 2004-2005. In such a way, only in the middle of the current decade, KRRiT will fully arrange the order on the air (by this time the future situation of local commercial television stations will have been straightened out).

The process of consolidation of radio stations is still in progress at the local level, and in the last 2 years it became more dynamic. Two main rivals operating since 1996-1997 have been very active in this market, i.e. Agora SA (the owner of, e.g. the biggest daily – Gazeta Wyborcza, and 16 magazines; the co-owner of supra-regional radio – TOK FM) and ZPR SA (the co-owner of a popular national tabloid – Super Express, and the publisher of several magazines), but also other subjects investing into local stations for considerably a shorter period of time have joined in. The two ‘play-makers’ have increased their ownership status (including indirect connections – in the so-called associated stations) up to 27 local stations in the case of Agora and 24 – ZPR, covering almost all big cities (especially the most attractive advertising markets) with their range. Both groups were the leaders in the process of programme formating the local stations; taking into consideration the recent months, in cities where they have several stations, they differ in terms of the music format. And so – the stations owned by Agora apart from their basic ‘oldies’ format (which covers the majority of stations) also play – within the Blue FM Group (6 stations) – some latest hits (Hot Adult Contemporary), and sometimes (4 stations) – classic rock (furthermore – in Warsaw – 1 station plays jazz and classical music). On the other hand, 21 stations of Eska (the main ZPR group) play current hits (CHR format), and the Gold FM network still in the process of creation (3 stations so far), addressed to middle-aged audience, has a music-culture profile (format – Easy Listening). In 2001 the third dynamic subject appeared on the market – Ad.point company (having links with the biggest radio broker – CR Media); the publicised plans (favoured by KRRiT) of consolidating 35 local stations have only partially been executed (9 stations). However, the stations are not formated musically in a uniform way, but the stations rather try to find a new niche in the local market (which would become an alternative to the music offers of Agora or ZPR). In May 2003, the three subjects mentioned above (Agora, ZPR, and Ad.point) administered 60 local stations of music profile (together). The Multimedia company (which is related to the former workers of national Radio RMF, who were dismissed after the elimination of the ‘local split’, and also to the broker mentioned above – CR Media) constitues the fourth subject formating the station it owns (just 4 remaining ones). Moreover, another company – Y-Radio (which owns 5 local stations, and strives for a licence of Radio Jazz network) may become powerful in the future.

Thus, if we exclude stations owned by the county authorities and community centres (according to the announcements of KRRiT they are to undergo privatisation in the nearest licence-granting process) as well as academic stations – ten years after the first attempt to arrange the order on the air – the market of local radio stations is divided almost fifty-fifty between – on the one hand – stations functioning in the framework of organised radio networks and groups (usually having a music profile and narrowly formated) and operating mostly in bigger (thus, wealthier) towns and cities, and – on the other hand – a few dozen (a liitle more than 60) scattered broadcasters, located either out of the limits of major cities or in most cases located in smaller towns, which with increasing difficulty manage to surrive in the poorer and poorer market. The latter, endangered particularly by national stations such as RMF or Radio Zet, (since 1996-1997) have repeatedly undertaken numerous attempts to make various agreements, especially advertising (cooperative sale of air time in the group of programmes). The latest initiative concerns the formation of Association of Independent Radio Stations, which effectively created the so-called ‘Alliance of Independent Broadcasters’ concentrating presently slightly more than 20 stations, and thinking of 50 in the future (but the group operates in the framework of Eurozet – the owner of Radio Zet, which definitely signifies anti-RMF attitude).

The Local Catholic Radio occupies a significant position in terms of the number of stations in Poland. At present, it consists of 43 stations, including 2 parish, 2 monastic, and 39 diocesan. The majority of diocesan stations not long ago belonged to the network of Radio Plus (which was started in 1998). After a certain economic crisis (2000/2001) and after finding a new strategic investor (from Germany) there were considerable organisational changes in Plus (including the search for a new music format – ‘pretty hits’). Earlier financial problems, together with later changes directed towards greater commercialisation of the network, were the causes why several diocesan radios withdrew from the Programme Agreement Plus and returned to their former station names (a decrease from 26 in 2001 to 20 stations in March 2003).

The public Radio in Poland still consists mainly of 4 national programmes of the Polish Radio: Program 1 (universal, with emphasis on information, opinions, and comments), Program 2 (culture), Program 3 (opinions, entertainment), and Radio Bis (education). In 2002 Trójka (PR3) underwent a thorough change of its offer (making it similar to popular commercial stations, attracting young people). Radio Parliament operating since 2001 and reporting on Sejm and Senate activity (broadcasts form sittings, including these of the special board to investigate Rywin affair) is also a novelty on the market. The radio shares the frequencies at long waves (AM) with Radio Bis (which additionally broadcasts at FM frequency bands). Moreover, there are 17 regional radio stations of the Polish Radio. However, owing to the fact that their situation on the market goes from bad to worse, the broadcasters are forced to look for new forms of cooperation both in reference to programme and advertising (as many other weak commercial stations do); the agreement called Audytorium 17 has been designed for this purpose.

The results from the research on listening (market shares) to the radio stations in 2001-2002 are shown in the table ‘The distribution of influences on the air: the national radio stations most popular among listeners’.

Generally speaking, in 2002 public stations found it more and more difficult to compete with the licensed stations for the listeners. At best they manage to retain a certain group of regular listeners. It refers to both national and regional stations. PR1, PR3 (despite thorough changes in the offer), together with regional stations of the Polish Radio lose out much in comparison to commercial stations. All in all, they lost 2% of shares on the market.

However, not all national commercial stations were doing well. Only RMF FM has clearly strengthened its position compared to its rivals (+3% market shares); other successful stations have increased their shares slightly (decimal fraction of %). Nevertheless, it must be emphasised that commercial local stations all together have increased their shares on the market at 0.5% (probably, at the cost of regional public radio stations’ listeners).

In the previous years, the number of listeners to the three supra-regional stations was rather decreasing steadily. The results of 2002 may suggest that the crisis concerning Radiostacja and Radio WAWa was averted (in 2001 Radio WAWa wanted to gain the ‘local split’ in Warsaw, and even wanted to resign from the supra-regional network for the benefit of capital city licence). Radio TOK FM, whose licence to broadcast information and opinion programmes in 9 big cities expires soon, continues to look for a new place/niche on the market. Both Inforadio (the so-called ‘talking heads’) and subsequent Radio Tok FM (talk show with the participation of listeners) – did not achieve a commercial success. At present, the new editorial staff again wants to make a good opinion, information and comments radio.

Ryszard Filas +, Paweł Płaneta +