The big makeover of a Hungarian TV channel – from independence to bias
A media outlet’s shift from bias to independence or from independence to bias is not that easy as one would think. However, with the changes in the political tide reflected in advertisement funds and ownership, it is not that difficult either. A case study from Hungary, second part (see first here).
Photo: Last Days of TÉNYEK/Tumblr
TV2 was sold twice within one year and currently its evening news bulletin is serving the government’s needs. How the second most popular television channel has ended up in such a situation after almost twenty years?
Since the government introduced the advertisement tax in 2014 hitting RTL Klub the hardest, the commercial TV’s news bulletin set a more critical tone against the government, setting aside its orientation to sensational news. Not only taxes, but changes in ownership brought different style and tone of the news bulletin.
After the liberation of the television frequencies in 1997, two national commercial televisions emerged, RTL Klub owned by Bertelsmann and TV2 owned by Pro7Sat.1. Ever since, RTL Klub was the market leader in terms of audience share (see data for between 2007 and 2010 in the Mapping Digital Media report on Hungary, page 27 and 29). After the digital switchover (finalized in 2013) these television channels could keep their market leadership: RTL Klub being the lead, followed by TV2. As the latest data of Nielsen indicates, the most viewed shows belong primarily to RTL Klub, followed by TV2.
Both of the leading televisions’ news bulletins have been packed with sensational content. However, since the government introduced the advertisement tax in 2014 hitting RTL Klub the hardest, the commercial TV’s news bulletin set a more critical tone against the government, setting aside its orientation to sensational news. As we will see in this piece, not only taxes, but changes in ownership brought different style and tone of the news bulletin.
A failed experimentThe media in Hungary never truly fulfilled the watchdog and public service role. The public service media has always been a political battlefield to some extent; the distribution of radio frequencies has been after all under the control of the incumbent government and journalists have been under pressure and have been applying self-censorship, while the restructuring of state funds in the form of state advertising has been used as tool to hinder the mere existence of critical media outlets. The fact that the Hungarian media landscape became the playground of political circles does not facilitate media outlets to fulfill their democratic role, harming Hungarian democracy as such.
Ownership controversies and changes
Back in 2013 Pro7Sat.1 sold TV2 to Zsolt Simon, the television’s CEO and Yvonne Dederick, the director of finance. TV2 consisted of two companies: TV2 Media Csoport Ltd. and TV2 Media Group Holdings, the owner of TV2 Media Csoport Ltd. Pro7Sat.1 had a lien over both companies. The new owners admitted that there were Hungarian investors behind them, but did not name who. Many assumed that it would be the circles of Lajos Simicska, former cashier of Fidesz, an oligarch establishing a media empire during the Orbán government. However, in 2014 Simicska lost his old friend’s, Viktor Orbán’s support (see the story in detail) and could not keep TV2 any more due to its debts and the decline in advertisements. The owners of TV2 started negotiating with Andy G. Vajna, a Hollywood producer and a government commissioner for the renewal of Hungarian cinema. Vajna is famous for several Rambo movies, Judge Dredd, Evita, and Total Recall – just to list a few of his works as a producer. Some assumed that the price of the Simicska-Orbán reconciliation is Simicska giving up his media portfolio. And Vajna wanted the television. So he purchased the TV2 Media Csoport Ltd. in October 2015. For the explanation about the ownership structure, see graphics of Nol.hu, for more information about the process, the one minute long video of Origo. In late 2015 it turned out that Vajna got a loan of 21 million euros from the state-owned Eximbank to be able to purchase the company; he had a bit more than eight million downpayment.
But just two days earlier, Károly Fonyó, a business partner of Simicska had the right of first refusal and announced that TV2 Media Group Holdings will be purchased by him, and immediately withdrawn the CEO and the director of finance from the company as they did not have the right to sell the television to Vajna. Fonyó declared that TV2 had massive debts, but the investment was a good decision. TV2 published an announcement that Vajna got the company free of litigation, encumbrances or claims, which suggests that probably the Vajna paid the debts of TV2 meanwhile. During the legal uncertainty, TV2 was in chaos, the advertisers waited, employees were unsure who is leading the company although they were reassured that the new owner was Vajna.
By January 2016 the purchase was over and Vajna announced the closure of the procedure; since then TV2 is owned by him. The new head of TV2 became Dirk Gerkens, the ex-leader of RTL Klub. Fonyó appealed, questioning the decision of the court that registered the ownership by Vajna and also filed a lawsuit against Simon and Dederick.
Editorial changes: becoming a platform for political agenda
With the take-over of TV2 by Vajna, the usual tabloid news bulletin of the television started to serve the interests of the government using the same tools as observed at the public service broadcasters. TV2 became a tool in domestic politics, used for attacking members of the opposition, especially after the arrival of Vivien Kökény-Szalai, former editor of a tabloid magazine and author of several scandal books. Allegedly, when news about her nomination arrived, champagne was opened at the premises of competitor, RTL Klub. Kökény-Szalai is in a good relationship with the ex-model wife of Vajna, the wife of the major of the central district of Budapest, and the admin of the Facebook fanpage of Prime Minister Viktor Orbán.
One victim of a character assassination was Péter Juhász, politician of the opposition party Együtt, with TV2 broadcasting video questioning how the politician could pay for his rent on the posh side of the city. The Association of Hungarian Journalists launched an ethical review, assessing that there was no ethical harm done.
With the take-over of TV2 by Vajna, the usual tabloid news bulletin of the television started to serve the interests of the government using the same tools as observed at the public service broadcasters.
“An industrial deep throat” leaked to a blog that employees of TV2’s news bulletin are trying to escape as they cannot work with Kökény-Szalai; allegedly, two reporters were spit upon when people saw the logo of the television; The incident was denied by employees and they claimed someone was trying to confuse the public with such false leaks. As of early April 2016, Gerkens has a mere administrative role, key reporters and editors resigned and anonymous employees of the channel stated “we pray to get a topic of a good little train catastrophe as there is no politics within.”
Based on the most recent coverage, “paranoia” and “tension” are the two words best describing the mood at the newsroom of the news bulletin of TV2 – partly due to the leaks indicating internal changes and problems in the company (some leaks were refuted by other leaks, which added to the confusion); and partly as Kökény-Szalai, who is aiming at manually controlling the news bulletin; anecdotally, while doing that, she is using terminology of print media, asking for “articles” from the employees, who already gave up warning her that TV2 is a television after all.
The audience of government-critical news bulletin RTL Klub has increased indicating that viewers do appreciate the accentuated note of criticism towards the government, and reject the tone of the controlled news bulletin of TV2. On the long run, bias does not pay-off.
Media Integrity
Media Ownership and Finances
