Vladimir Putin has declared a new stage in the development of Russia's media outlets. They are to become a locomotive for the entire national economy. First of all, however, they will be deprived of tax and customs privileges.
On Tuesday Putin met with a group of chief executives from Russia’s major media groups – delegates of the national conference ''The Media Industry: Directions for Reform'', that opens in Moscow on Wednesday. In his opening address to his guests in the Kremlin the head of state, who has in the past two years taken control of all leading television networks, admitted: ''For many years the media industry was mostly linked with politics and the struggle among interest groups. Actually, there is nothing surprising about that…''
The president went on to say that until now the Russian media has not been independent, but was used as a tool in the fight ''to secure political advantages in the competition for far more profitable sectors of the economy''. The head of the state believes that a qualitatively new stage is beginning in the development of the information business. The media industry needs to be transformed into a modern market-based sector of the national economy, able to ''stimulate the development of advanced technology in other areas''.
According to the president, the general formula to turn the national media into a modern market-based sector is quite simple – it is necessary to instil order in the news industry. However, when he began to outline the areas in which, in his opinion, it was necessary to deal with first and foremost, quite a lot of questions were raised, to which Putin gave no answer in his speech.
In particular, the president called for more transparency in the advertising market, which, in his opinion, ''remains monopolized and poorly diversified''. Advertising needs to be re-distributed in favour of regional media outlets, the market share of which is ''disproportionate to their location and audience'', Putin said. Lack of revenues from advertising makes regional media heavily dependent on local and federal subsidies.
He did not specify what would then happen to the central media outlets, which have been used as ''tools in political struggles'' due mostly to the shortage of advertising revenues, adding only that it was necessary to determine ''clear and sensible'' legal guidelines in the sphere of media advertising.
Printed media outlets have long since urged the state to lift restrictions on advertising space in papers and magazines. TV companies press for a lifting of restrictions on advertising during certain programmes and both printed and televised media seek the return of powerful advertisers like tobacco and alcohol producers (at least, breweries). Lately, the number of such restrictions has been growing, and it is quite unlikely, that the head of state will readily agree to lift them for the sake of the economic independence of regional newspapers.
On the contrary, it appears that in the near future Russia’s media will face new restrictions. Order, in the president’s opinion, needs to be introduced to such spheres as taxation and customs clearance of papers and magazines printed abroad. Putin noted with dissatisfaction that presently many publishers prefer to print their papers and magazines abroad, thus depriving domestic printing enterprises of incentives to grow.
The president also said a few words on the importance of updating the legal base of the media industry. In particular, he criticized the current law, many provisions of which run counter to newer civil, administrative and labour legislation. A clear legal base should be set up to develop civilized media business in Russia, he said. ''Legal inconsistencies hinder the attraction of honest strategic investors into this sector of the economy.''
The issue of foreign investment in Russia's media ''needs to be discussed seriously in the light of the interests of the state'', he said. ''A lot of countries restrict foreign capital activities in sectors that have a tangible impact on the national audience because it involves governmental informational policies. Although this subject is delicate, this position should not hinder the attraction of foreign capital,'' he said.