According to MF daily, the proposal on accelerating the obligatory switch to digital broadcasting in the Czech Republic was not discussed by the government’s legal council yesterday due to discrepancies with EU law. The proposal would be discussed again next week, meaning that it could be submitted to the Government only in the middle of July. This delay, together with summer Parliament holidays, is expected to further postpone the launch of digital broadcasting in the Czech Republic and spring 2008 deadline seems unrealistic according to the chairman of Digital Broadcasters Association.
Our view: This delay is expected to be positive for CME’s TV Nova, as it moves forward the launch of new digital channels. Nevertheless, the new entrants need some 12 month track record of audience share ratings before they could enter into advertisement negotiations and build some market position.