The Czech state TV, TV Nova (CME) and Ceske Radiokomunikace (secures analogue TV broadcasting) are pushing for termination of the analogue broadcasting to be postponed froim 9/9/2009 or 10/10/2010 to 11/11/2011. The six new stations, which received a licence for digital broadcasting are obviously against such a move.
Our view: While the new six digital station would cettainly increase the competitive pressures on the TV advertising market, these channels are rather specialized and therefore should not threaten TV Nova’s strong audience share (c40%) and at the same time TV ad on state channels should be cancelled by 2008. We reiterate our Buy recommendation.