Post on 17-Aug-2015
THE POLITICAL ECONOMY OF THE HUNGARIAN MEDIA 2010-2014
History, public procurements, state advertising
The leading Hungarian b2b monthly magazine
and daily news site on advertising and media
Est. 1991
4 journalist, 1 editor, 1 art director
complexity
historical context
storytellingdata
visualization bringing to wider public
PROBLEM?
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TOOLS
Does this system fit into corruption models
?
How the government-allied/friendly media were built
Who were the protagonists of the system Who won the public procurements
for state advertising budgets
How and where did these media and advertising
agencies spend the public money allocated for
state and government advertising
Who were the beneficiaries of this complex system
The biggest winners of the public procurements spent the public money allocated for state advertising mainly within this one business circle
A planned network of people and companies in the government, state administration and private sector linked to mainly one business circle
State authorities benefited the biggest winners
Laws and administrative tools for ruining and influencing the independent or oppositional media companies
The government-allied right wing media’s financial indicators increased abnormally while the entire media market went into decline
FINDINGS
The planned system’s alpha and omega is the prime minister’s old friend businessman Lajos Simicska and his circle. Their people sat in the state administration, authorities and public companies. These state companies gave their advertising budget to agencies mostly also linked to Lajos Simicska. These agencies spent the money in media companies owned by Lajos Simicska and his circle through holdings and trustees.
NETWORK
PUBLIC PROCUREMENT
6 out the 10 biggest winners has proven links to Lajos Simicska or the government party Fidesz
more than 50% of public money awarded
(100mn Euros) without any competition
the biggest winners often competed between each others63% of the whole budget won by 3 agencies
73% by 5 agenciesthese agencies won their budgets in really weak competition
THE RIGHT WING
MEDIA
2008 2014
Σ: 11 Σ: 23
2006-2010 (the biggest shares)
daily newspapers: Axel Springer county dailies (7 papers) 18,37%, Népszabadság (left wing) 14,54%weekly political papers: Szabad Föld (left wing) 26,81%televisions: Rtl klub 33,48%radio stations: Sláger 28,56%outdoor media: Epamedia 33,36%
2010-2014 (the biggest shares)
daily newspapers: Metropol 42,05%, Magyar Nemzet 21,06%weekly political papers: Heti Válasz 67,92%televisions: TV2 (allied) 51,33%radio stations: Class Fm 57,56%outdoor media: Publimont 67,02%
SPENDING THE PUBLIC ADVERTISING
MONEY
daily newspapers: 67% weekly politicals: 68%
radio stations: 67% (without Lánchíd Rádió) televisions: 66% (without Hír TV and Echo TV)
outdoor: 79% (without Mahir Cityposter)
STATE FUNDING THE RIGHT WING MEDIA
The distribution of state advertising rarely based on market data and didn’t fit with market shares and positions.
vs. MARKET
revenues: 2,5xprofits: 10x
as a proportion of revenues: Publimont 39%, Class FM 35%, Hung-Ister 28%,
Euroawk 27%, Magyar Nemzet 23% industry standard: 10-15%
Hungarian average (2013): 1-2%
THE FINANCIAL OUTCOMES OF THE MEDIA
EMPIRE
the biggest public success of the Kreatív’s history articles on the finest Hungarian news sites (Index, Origo, Hvg, 444,
Mandiner) television and radio reporting (Atv, Hír24, Klubrádió)
public debates conference and university presentations (ELTE, Médiapiac, Mérték
Fesztivál) 100.000 online engagement and 2500+ Facebook interaction (by url)
500 prints big ups and high fives from collegues and industry personalities
nobody sued us
RESULTS
THE ARTICLE http://www.kreativ.hu/databanya/cikk/hogyan_mukodott_orban_es_simicska_mediabirodalma
TABLEAU INFOGRAPHICS https://public.tableau.com/profile/batorfyattila#!/ TEXT AND VISUALISATION: ATTILA BÁTORFY
EDITORS: BALÁZS ROMÁN, PÉTER SZIGETI
CONTACT: BATORFYA@KREATIV.HU
THANK Y U