Weekly Euro cited director of Czech Association of Brand Name Producers who expects TV ad prices to increase by 20-25% next year. Advertisers are concerned that TV Nova and TV Prima could agree on a price strategy going forward.
Our view:
Price strategy agreement is a speculation, however we expect TV ad prices to increase double digits next year as new management of MTG in TV Prima could be more focused on ad revenues. This will help also TV Nova to implement more easily their strategy of further TV ad prices they started this year, supported also by decrease of ad time on state TV channels from 2007.