From 1 January 2017, the law ‘On the Amendments to the Law of Ukraine ‘On Television and Radio Broadcasting’ to clarify the terms of television program distribution within the General Broadcasting Service Package’ enters into force in Ukraine. Public and state TV channels, as well as local analog and digital broadcasters, will remain a part of the GBSP. According to the changes in legislation, regulation on the mandatory broadcasting of the terrestrial channels disappears, and TV channels can enter into market relations with the cable operators.
This decision is consistent with the international practices, when cable operators pay TV channels for the content they use. These earnings allow TV channels to create in-house films, TV series, shows, and television programs and improve their quality.
‘We are switching to the commercial relations with the providers. We’re going to get money from providers for their building of businesses using our channels, – says Fedir Hrechaninov, Director of Strategic Development at StarLightMedia and stresses: It is important to understand that we remain free channels, as we used to be. We do not change our business model. Instead, we are spending quite heavily on the spread of terrestrial, digital, analog and satellite signal in order to be accessible to all the viewers, who want to watch us.’
Accordingly, the cable operators have to make a contract on retransmission, in order to continue showing terrestrial channels in 2017.