16
THE POLITICAL ECONOMY OF THE HUNGARIAN MEDIA 2010-2014 History, public procurements, state advertising

The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

Embed Size (px)

Citation preview

Page 1: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

THE POLITICAL ECONOMY OF THE HUNGARIAN MEDIA 2010-2014

History, public procurements, state advertising

Page 2: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

The leading Hungarian b2b monthly magazine

and daily news site on advertising and media

Est. 1991

4 journalist, 1 editor, 1 art director

Page 3: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

complexity

historical context

storytellingdata

visualization bringing to wider public

PROBLEM?

Page 5: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

knight lab timeline js

excel

google refine

tableauphotoshop

TOOLS

Page 6: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

Does this system fit into corruption models

?

How the government-allied/friendly media were built

Who were the protagonists of the system Who won the public procurements

for state advertising budgets

How and where did these media and advertising

agencies spend the public money allocated for

state and government advertising

Who were the beneficiaries of this complex system

Page 7: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

The biggest winners of the public procurements spent the public money allocated for state advertising mainly within this one business circle

A planned network of people and companies in the government, state administration and private sector linked to mainly one business circle

State authorities benefited the biggest winners

Laws and administrative tools for ruining and influencing the independent or oppositional media companies

The government-allied right wing media’s financial indicators increased abnormally while the entire media market went into decline

FINDINGS

Page 8: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

The planned system’s alpha and omega is the prime minister’s old friend businessman Lajos Simicska and his circle. Their people sat in the state administration, authorities and public companies. These state companies gave their advertising budget to agencies mostly also linked to Lajos Simicska. These agencies spent the money in media companies owned by Lajos Simicska and his circle through holdings and trustees.

NETWORK

Page 9: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

PUBLIC PROCUREMENT

6 out the 10 biggest winners has proven links to Lajos Simicska or the government party Fidesz

more than 50% of public money awarded

(100mn Euros) without any competition

the biggest winners often competed between each others63% of the whole budget won by 3 agencies

73% by 5 agenciesthese agencies won their budgets in really weak competition

Page 10: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

THE RIGHT WING

MEDIA

2008 2014

Σ: 11 Σ: 23

Page 11: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

2006-2010 (the biggest shares)

daily newspapers: Axel Springer county dailies (7 papers) 18,37%, Népszabadság (left wing) 14,54%weekly political papers: Szabad Föld (left wing) 26,81%televisions: Rtl klub 33,48%radio stations: Sláger 28,56%outdoor media: Epamedia 33,36%

2010-2014 (the biggest shares)

daily newspapers: Metropol 42,05%, Magyar Nemzet 21,06%weekly political papers: Heti Válasz 67,92%televisions: TV2 (allied) 51,33%radio stations: Class Fm 57,56%outdoor media: Publimont 67,02%

SPENDING THE PUBLIC ADVERTISING

MONEY

Page 12: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

daily newspapers: 67% weekly politicals: 68%

radio stations: 67% (without Lánchíd Rádió) televisions: 66% (without Hír TV and Echo TV)

outdoor: 79% (without Mahir Cityposter)

STATE FUNDING THE RIGHT WING MEDIA

Page 13: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

The distribution of state advertising rarely based on market data and didn’t fit with market shares and positions.

vs. MARKET

Page 14: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

revenues: 2,5xprofits: 10x

as a proportion of revenues: Publimont 39%, Class FM 35%, Hung-Ister 28%,

Euroawk 27%, Magyar Nemzet 23% industry standard: 10-15%

Hungarian average (2013): 1-2%

THE FINANCIAL OUTCOMES OF THE MEDIA

EMPIRE

Page 15: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

the biggest public success of the Kreatív’s history articles on the finest Hungarian news sites (Index, Origo, Hvg, 444,

Mandiner) television and radio reporting (Atv, Hír24, Klubrádió)

public debates conference and university presentations (ELTE, Médiapiac, Mérték

Fesztivál) 100.000 online engagement and 2500+ Facebook interaction (by url)

500 prints big ups and high fives from collegues and industry personalities

nobody sued us

RESULTS

Page 16: The state capture of media and advertising market in Hungary at Dataharvest Conference/EIJC in Brussels

THE ARTICLE http://www.kreativ.hu/databanya/cikk/hogyan_mukodott_orban_es_simicska_mediabirodalma

TABLEAU INFOGRAPHICS https://public.tableau.com/profile/batorfyattila#!/ TEXT AND VISUALISATION: ATTILA BÁTORFY

EDITORS: BALÁZS ROMÁN, PÉTER SZIGETI

CONTACT: [email protected]

THANK Y U