The Council for TV broadcasting allotted six new licenses for digital broadcasting yesterday. The key player on Czech TV market TV Nova and TV Prima did not get extra licenses over already allotted two licenses per station. Altogether TV Nova was asking for eight digital licenses. Although the result is not favorable and some of new channels should start broadcasting before the year end, it will take them some time to gain at least couple percentage ratings. At the same time, we believe that both TV Nova and TV Prima have substantial programming inventory to maintain their ratings in the near to mid term.
Thus we don’t see any significant thread for TV Nova that new stations would take significant part from ad money and reiterate our Buy recommendation for CME.
Station Owner Description
Z1 J&T (TA 3 slovakia) news channel
TV pohoda Owners of radio Hey and Cas kids&teens
RTA Produces programs for TV Nova and Prima regional
Febio TV Producer Fero Fenic documentaries, alternatives, minorities
TV Barrandov Moravia Steel Czech&Slovak production
Ocko MAFRA Music channel