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Advertising, Czech Advertising, Economy, Journalism, Media, Prague, Public
It was the beginning of summer 2009 when I decided to do a story on the impact of falls in advertising on the Czech media market (http://www.cbw.cz/article/czech-media-learn-to-walk-on-moving-sands.aspx). In this context, I was also looking for new, innovative media projects that could show how Czech media managers were counteracting the downfall. The first that came naturally to my mind was Our Address, a citizen journalism pilot project aimed to create hyper-local print and online publications for Czechs outside Prague. In June 2009, the project was up and running at full speed, with the enthusiasm of new beginnings. Now, only a year later, the project is being closed down and only those who were involved in it will know the truth behind its closure – but they will be most probably too bitter to talk about it.
When I decided to write about Our Address, I called Roman Gallo, the managing director of PPF Media, a new unit created by the Czech financial group PPF in 2007 to coordinate media investments. I knew Gallo by reputation – an old school journalist with strong values, opinions and vision to do something differently. He used to be in charge of the largest Czech regional print publisher Vltava-Labe Press (VLP) and stood behind the launch of the online news server Aktualne.cz. When I called him, he was fast to react. “It’s not worth talking about it if you don’t see it. Why don’t you come with me this afternoon to see the project at work?” Sure, and off we went. On the way, Gallo was speaking about the realities of the Czech media market. Many things I could write afterwards, and many I could not. We went first to Teplice, then to Ústí nad Labem, both in North Bohemia. In both locations Our Address had already started publication. It was betting on the principle of citizen journalism and media generated in small cafes, when readers could come in and contribute at will.
Something new was cooking
Entering one of the cafes, one had a strange feeling. A tinny partition was separating the journalists from the people who were coming to have a coffee, take a snack, read their newspaper and have a chat with the author of a story. In short time, the weeklies had attracted a consistent number of subscribers. People were curious to join the social activities organized by Our Address and seemed happy to send little info about their events, pictures of their family celebrations or short announcements about their small businesses. After all, this is the basis of small communities – everyone knows everyone and they want to talk about things they consider common interest. The most surprising thing was the energy of the journalists involved. Under a constant pressure – they could be called upon by readers anytime given their physical exposure in the café during work – they were delivering content for the web and for the print versions. I was tired after the trip from Prague, but their enthusiasm was contagious. They seemed really engaged and willing to put extra-time and hard work to make the project function. We all know this isn’t a common feature of the Czech labor market… I was certain that, if they continue like that, they will redefine citizen journalism in Central Europe, despite the economic crisis.
Instead of growth, liquidation
Well, it was exactly the crisis – or the low volume of advertising triggered by the recent economic downturn – that has apparently made the project unprofitable. This Saturday, PPF announced PPF Media was being sold to Richard Bendýšek, a financial investor. Only that, according to the Czech economic daily Hospodářské noviny Bendýšek is known for buying companies to liquidate them. PPF wasn’t eager to give details on the deal and justified the decision with its new focus on projects larger than € 8 million. Right. The faith of thousands of people who put their energies in the PPF Media projects seems to have been sealed at the negotiations table. What happens beyond finance, this isn’t the concern of Czech media investors. After all, why should they care?
Why should they care?
Being owned by investors who know nothing about media is a bitter reality of the Czech media market and not only. Here, media – and particularly economic media – are concentrated in the hands of a few people who think that having some media in their industrial portfolios is fun. Yet, when the hole created in their budget by poor management and lack of vision isn’t funny anymore, they close the shop down. It’s as simple as that. The problem is that vision isn’t missing at the ground level of the people who manage the media projects. The vision and a deep understanding of the way how media markets work is terribly missing at the level of boards that can only understand oil and finance if they see it in a global perspective. This makes me wonder what they are doing in the media in the first place. Back in April 2010, Czech Business Weekly was closed following a similar scenario. An abrupt decision came over night, made on Monday, announced to the team on Tuesday and enforced in less than a week. After five years of hard work, the CBW team had four days to produce the last magazine, a weekend to clean up and a Monday to hand over keys, computers, pick up their staff and leave. Did it matter to anyone from KKCG, an oil, gas and financial group that their decision left a hole on the Czech and CEE market of English language business news? No. Did it matter that the closure could have been avoided by appointing competent people with vision in key positions such as management and sales? No. The only people who suffered directly following the decision were the CBW team and the readers. This is why it is sad to see Our Address closed down. Financial decisions made by big sharks – who are the only one who can afford to invest in the media in CEE these days – have nothing to do with the media or the democracy. In their hands, media are nothing but a toy to play with while it’s funny. When fun stops, the game is over. This is the reality of a small, immature and vulnerable media market, left at the will of financial sharks without imagination.
Very interesting post!