Communist Media Economics

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    74 JMM Vol. 3 No. II 2001

    Studies on economic aspects of the me-

    dia usually focus on countries and me-

    dia sectors which operate in some sort

    of market-led system, while economicanalysis of alternative media systems is

    somewhat less served in the research

    literature. This article examines the fea-

    tures and development of a media sec-

    tor in communist system from an eco-

    nomic point of view and considers to

    what extent consumer perspectives

    were taken into account in communist

    media. The subject is arguably not only

    interesting from a historical but the

    point of view of the legacies of theformer regime after the collapse of the

    system as they have had profound im-

    pact on the economics and manage-

    ment of the media in all former com-

    munist countries. The focus of the

    article is on the print media of three

    former communist countries, Czecho-

    slovakia, Hungary and Poland as case

    study for the analysis.

    Functions and Control

    of Communist Media

    Communist media is usually perceived

    to be distinctively different from other

    types of media systems. Characteristic

    features include specific functions of

    the media, certain forms of media con-

    trol and particular ways in which me-

    dia production and consumption were

    organised in communist societies.

    These specific features were rooted in

    the ideological underpinning and dis-tinct historical developments of com-

    munist societies.

    McNair (1991, p9) draws attention in his

    study on the Soviet media to the fact

    that the two men who are usually con-

    sidered to be founding fathers of thecommunist system, Marx and Lenin

    were themselves journalists. Both men

    regarded the media as powerful institu-

    tions in society which could play an

    important role in a communist revolu-

    tion. Marx viewed the media as poten-

    tial devices with which the proletariat

    would overcome its isolation and create

    a communist society (McNair, 1991,

    p13). Similarly, Lenin gave the media an

    important role in the organisation ofcommunist society. He believed that the

    media were not only a collective pro-

    pagandist and a collective agitator, but

    also a collective organiser.

    However, as McNair, Sparks and others

    point out neither man developed pre-

    cise ideas about the workings and man-

    agement of the media (Sparks, 1998;

    McNair, 1991). The distinctive features

    of the communist media system devel-

    oped mirroring the particular politi-

    cal, economic and social conditions in

    Soviet Union and other communist

    states, and subsequently were modified

    as historical changes proceeded during

    the 20th century.

    It is generally viewed that the mass

    media in communist societies were in-

    tegral parts of the power structure and

    were used as means of control and pro-

    paganda. Criticism of the regime wasnot permitted. Media content was cen-

    sored and many times carried some edu-

    cational message. The dominance of

    political and educational functions of

    the media also meant that consumer

    perspectives, entertainment and com-

    mercial roles were of less importance.

    Martin and Chaudhary (1983, p27) argue

    that sensationalism, crime news and

    human interest stories were disapproved

    of and neglected unless there was a les-

    son to be learned. It is the party, not

    the audience, that determines content

    priorities, and the Communist parties

    are interested in entertainment only in-

    sofar as it serves as a sugar coating for

    the indoctrination pills (Martin and

    Chaudhary, 1983, p233).

    Although Western literature usuallyperceived the media of all former com-

    munist states as having the same fea-

    tures and structures, there were sub-

    stantial differences between the

    countries as a result of dissimilar his-

    torical developments, cultural back-

    ground and traditions. Furthermore,

    the media sectors of former commu-

    nist countries were not static and were

    subject to changes as political, eco-

    nomic and social conditions alteredduring the decades of communism.

    The countries which are the subjects of

    this case study were in fact among

    those whose media went through con-

    siderable changes as a result of politi-

    cal uprisings and economic reforms.

    The main features of the media did not

    change significantly between different

    phases, but the level of censorship and

    the importance of other than political

    functions of the media altered. These

    changes were important especially in

    Hungary and Poland, because the roles

    of the media shifted towards somewhat

    more entertainment by the 1980s. Rea-

    sons for the changes in the media in-

    cluded the 1956 revolution in Hungary,

    the 1968 reform movement in Czecho-

    slovakia, the political changes in Po-

    land in 1970 and in 1980-81, and eco-

    nomic reforms which were carried out

    with different emphasis and enforce-ment in Poland and Hungary from the

    late 1960s.

    Communist Media Economics

    and the Consumers

    The Case of the Print Media of East Central Europe

    by gnes Gulys,Cantenbury Christ Church University College, United Kingdom

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    Media control in communist countries

    varied in form, degree and perceptibil-

    ity. Media legislation was usually not

    very elaborate. Several authors point

    out that media laws and regulations

    were incomplete and in some areas

    practically non-existent in communist

    countries (see for example, Gergely,

    1997; Bozki, 1995). The lack of compre-

    hensive media legislation was a way to

    exercise firmer control. Informal rules

    and administrative tools worked better

    to oversee the operation of the media,

    while on the surface the regimes re-

    tained a cleaner image. Communist

    media legislation was usually vague,

    and rights and provisions often contra-

    dicted existing practices of media con-trol. For example, in none of the three

    countries was private ownership in the

    media banned explicitly, however, a

    governmental decree required a licence

    to print before launching a new title or

    a publishing house. This licence was is-

    sued by the communist authorities and

    only state institutions and social

    organisations were entitled to apply.

    There were different forms of mediacontrol in the three East Central Euro-

    pean countries during the communist

    era including formal and informal, di-

    rect and indirect, visible and hidden.

    The specific forms of media control al-

    tered to an extent as a result of politi-

    cal, social and economic developments.

    Control of media content was a perma-

    nent feature of the regimes throughout

    the period, although the severity of cen-

    sorship varied.

    From the mid 1970s underground me-

    dia sector emerged in many communist

    countries. The three East Central Euro-

    pean countries, but especially Poland,

    had among the largest and most buoy-

    ant unofficial media sectors during the

    last decades of the communist era. The

    role of underground media was signifi-

    cant because it provided an alternative

    source of information and forum for

    public discussion. Social scientists in

    the region referred to the arena the

    unofficial media created as a second

    publicity or parallel communications

    system (see, for example, Giorgi, 1995;

    Jakubowicz, 1990; Kovts, 1995; Skilling,

    1989). Underground publications usu-

    ally covered subjects which were tabooin the official media world. However,

    they rarely provide daily news informa-

    tion and did not aim to cater for enter-

    tainment. Jakubowicz (1990, p340)

    estimates that 60 percent of Polish

    samizdat books dealt with social and

    political issues, 25 percent with histori-

    cal subjects and 15 percent with litera-

    ture.

    As a result of the emphasised educa-tional and propaganda roles of the

    media not only political and informa-

    tion content was closely watched, but

    that of entertainment as well. The au-

    thorities were keen to protect the read-

    ers from the filth of capitalism and

    capitalist consumer society. Thus, for

    example, publishers were restricted

    from publishing books in areas such as

    horror, occult or pornography and sen-

    sational content was limited in news-

    papers and magazines. Kovts (in

    Giorgi et al, 1995, p20) estimates that

    in Hungary 17 percent of the total cir-

    culation of periodicals was dedicated

    to cultural and entertainment content

    in 1986, while 74 percent to general

    information and politics.

    Further forms of media control in-

    cluded certain economic and opera-

    tional practices such as restricted access

    to production facilities and materials,

    central planning of production and dis-

    tribution, central control of prices and

    politically decided state subsidies. Am-

    biguity of ownership of many press

    titles also played a part in the supervi-

    sion over the sector (Jakab and Glik,1991; Jakab, 1989). The owner of a num-

    ber of periodicals was not the company

    which published it, but a political or

    social organisation which was suppos-

    edly the founder of the title although

    many times they had little to do with

    the actual production of it.

    Economics

    of Communist Media

    The economics of communist media

    was markedly different from that of

    market-led media. An economic model

    developed by Jnos Kornai is applied

    here for a closer examination of the

    system. According to Kornai (1993) the

    main mechanism which dominates the

    economy in the communist system is

    bureaucratic coordination. This makes

    it distinctly different from other eco-

    nomic systems in which market coor-

    Table 1: The input-output flow between social sectors in communist system the role of bureaucratic and market coordination in Kornais theory

    supplier sectors

    state-owned companies

    cooperatives

    formal private sector

    informal private sector

    households2

    allocation of investmentresources

    user sectors

    state-ownedcompanies

    B

    B

    0

    0

    B+M

    B

    cooperatives

    B

    B

    0

    0

    B+M

    B

    formal

    private sector

    B+M

    B+M

    M3

    M

    0

    0

    informal

    private sector

    0

    0

    M

    M

    M

    0

    households1

    B+M

    B+M

    M4

    M

    1 households as the buyers of consumer goods andservices

    2 households as the sellers of labour force3 with bureaucratic intervention4 with bureaucratic intervention

    Notes:

    B = bureaucratic coordination

    M = market coordination

    0 = no transactions

    The grey areas represent those, which are applicableto media sectors. Modification of the theory is felt

    needed in the darker shaded areas.Source: based on Kornai, 1993, p132, Table 3.1.

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    dination, ethical coordination, com-

    munity and family coordination play

    important/dominant roles in the op-

    eration of the economy. In the commu-

    nist system these other mechanisms

    are present, but their roles are far less

    significant than bureaucratic coordi-

    nation. Table 1 illustrates how Kornai

    sees the roles of bureaucratic and mar-

    ket coordination in the input-output

    flow between social sectors.1

    Private ownership was not allowed in

    media markets, thus formal private

    sector did not exist. Underground me-

    dia arguably could count as an infor-

    mal private sector. However, market

    forces did not play a dominant role intheir case as the main aim of produc-

    tion was not financial gain. Hence be-

    side market mechanism community,

    ethical and social coordination could

    be added in the areas represented in

    darker grey shade in Table 1.

    In most aspects of media management

    and economics bureaucratic coordina-

    tion and central control were dominant

    mechanisms. Communist authoritiesdetermined media production, distri-

    bution and market developments. This

    meant that market indexes such as

    costs and prices did not carry real mar-

    ket information (Glik et al, 1990,

    p282). Paper, printing and distribution

    capacities were rationed and their costs

    fixed by the authorities.2 The allocation

    of resources was decided not on the ba-

    sis of economic performance of a given

    publishing house, but on its political

    position and the political importance of

    its products.

    The relation between state-owned me-

    dia companies and cooperatives as sup-

    pliers and households as buyers was

    somewhat different as the transactions

    between them were determined by both

    bureaucratic and market forces. While

    advertising played an insignificant role,

    consumers did have to pay a price for

    media products. Although newspapersand magazines carried some advertise-

    ments these were mainly classified ads

    and revenues from advertising were not

    substantial in the finances of media

    companies. In Hungary, which country

    was probably the most relaxed in this

    respect, 10 percent of the revenues of

    national dailies came from advertising

    during the second part of the 1980s

    (Jakab, 1990, p263).

    Consumer prices of media products

    were set centrally. Their costs were clas-

    sified as fixed-price commodities and

    for political reasons they were kept low

    and did not reflect the real costs of

    production and distribution. Books,

    newspapers and other periodicals were

    cheap relative both to wages and to

    other consumer products. Prices were

    low in order to make these products

    accessible to everyone so the political,

    social and cultural messages of the au-

    thorities were disseminated to the larg-

    est possible audience. The price policy

    differentiated between categories of

    media products prioritising education-

    ally and ideologically important areas.

    Thus, for example, textbooks and chil-

    dren books were much cheaper than

    other types of books.

    As a result of distinctive features ofcommunist media economics the op-

    eration and business pressures of com-

    panies were markedly different from

    those in market-led media systems.

    Table 2 summarises the main differ-

    ences in short-term behaviour of com-

    panies in the two systems.

    Table 2 illustrates that most aspects of

    business operation of companies weredetermined or influenced by the au-

    thorities in communist system. Glik

    (1995, p3) lists parameters which were

    prescribed for media companies by the

    authorities: the amount of newsprint

    available, the average number of

    printed copies, the price of a copy, the

    highest possible proportion of unsold

    copies, the tariff of distribution per

    copy and the total amount of salaries.

    An important aspect of communist

    media economics was the central con-

    trol of the finances of companies. Me-

    dia firms financed their operation

    from the sales of their products and

    subsidies from the state.

    Media production in general was not a

    lucrative business in communist East

    Central Europe. Milkovich (1981, p19)

    and Villnyi (1985, p101) reckon that

    90 percent of book titles in Hungary

    were published with different degreeof state subsidies during the late 1970s

    and the 1980s. Communist authorities

    Table 2: Short-term behaviour of companies in market-led and communist systemsSource: based on Kornai, 1993, Table 12.1, p290.

    Private company in market-

    led economic system

    Mainly to increase profit and

    survive in the market

    Decided in the market;

    free entry; business failure leads

    to market exit

    Firm

    Strong

    Price decided by the company,

    subject to market conditions

    Uncertain for the company;

    depends on market conditions

    Wishes to sell as much as possible

    of its products; tends to oversup-

    ply and excess capacity

    Restricted

    State-owned company in

    communist economic system

    Mainly the recognition of the

    authorities; most important criteria

    is to fulfil central orders and plans

    Bureaucracy decides about every

    entry and exit

    Soft

    Weak

    Price decided by the authorities,

    but the company can influence it

    Certain for the company

    Does not wish to sell more than

    agreed in plan; no oversupply and

    excess capacity

    Tends to oversubscribe

    Interest;

    aims of production

    Market entry and exit

    Budget limits

    Price sensitiveness

    Price fixing

    Demand

    Supply

    Acquisitions of inputs

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    provided substantial financial support

    to media businesses, however, at the

    same time they removed any profits.

    The finances of whole industries were

    organised in a redistribution system

    where financially successful firms

    cross-subsidised loss-making compa-

    nies. Cross-subsidising also worked

    within companies, whereby losses of

    titles were covered with surplus of

    other titles. The system ensured that

    the finances of media companies were

    secured and firms did not have to

    worry about market risk, profit or

    bankruptcy. As financial security was

    provided, there were no real incentives

    for companies to be profitable or im-

    prove their financial performance.Communist media companies did not

    have to deal with related business ac-

    tivities such as marketing, promotion

    or distribution. In the book sectors, for

    example, there was a national whole-

    saler which took care of delivery, stock-

    ing and selling of books while publish-

    ing houses did not have to organise

    those aspects of the business.

    Although bureaucratic coordinationwas the main mechanism it would be

    a mistake to assume that media com-

    panies were completely impotent

    organisations. They could in fact influ-

    ence the success of the firm to an ex-

    tent ( both on paper and in terms of

    workload and work satisfaction for the

    employees ( its prestige and long-term

    development. The most important fac-

    tor in this was the ability of managers

    in bargaining. To receive paper and

    printing allocations from the authori-

    ties was one thing the amount and

    quality of these depended on the bar-

    gaining position of the company. To

    improve their bargaining position

    companies often did not tell the entire

    truth to the authorities about their ca-

    pacities, input or resource require-

    ments (Kornai, 1993; Villnyi, 1985).

    Many of the firms tended to paint a

    somewhat bleaker picture about their

    finances, and did everything to achievea production level which was neither

    too low nor too high for the plans.3

    Structure

    and Development

    of Communist

    Print Media

    The main structural features of com-

    munist media markets included high

    levels of concentration, limited compe-

    tition, state ownership, lack of vertical

    integration and central planning of

    market entry. These structural features

    were used as control mechanisms over

    the media. An interesting structural

    feature of communist media markets

    was the lack of vertical integration.

    Publishing houses, for example, were

    not permitted to own printing facilities

    or distribution networks.

    Communist media markets were

    highly concentrated which was a result

    of bureaucratic coordination and had

    little to do with market competition

    and forces. Media production and dis-

    tribution were carried out by huge

    state-owned companies which enjoyed

    a monopoly in their field. This made

    political and financial control easier

    and more effective. In Poland, for ex-ample, a giant concern RWS Prasa-

    Ksiazka-Ruch (Robotnicza Spldzielnia

    Wydawnicza Prasa-Ksiazka-Ruch; The

    Workers Publishing Cooperative Press-

    Book-Movement) dominated the print

    media sectors throughout the commu-

    nist era. In 1988 the concern published

    74.6 percent of the newspaper titles4

    and 51.5 percent of the weekly titles,

    while giving 85.2 percent of the total

    circulation of newspapers and 70.1 per-

    cent of weeklies (Polish Publishing in

    Figures, 1990).

    In Czechoslovakia print media compa-

    nies and markets were controlled sepa-

    rately in the Czech lands and Slovakia.

    In the former there were a few state-

    owned firms which dominated press

    and periodical publishing. The largest

    publishing house was Rud Prvo

    which published among others half

    of the total circulation of national dai-lies and most of the regional press dur-

    ing the 1970s and 1980s (Giorgi et al,

    1995). In Hungary, four large state-

    owned companies dominated press

    and periodical publishing. These were

    Hrlapkiad, Pallas, the Communist

    Partys publishing house, Ifjusgi, the

    Communist Youth Associations pub-

    lishing house and Npszava, the Work-

    ers Unions publishing house. During

    the second part of the 1980s the four

    companies together published all daily

    newspapers, 96 percent of the week-

    lies, 77.9 percent of the monthlies

    (Jakab and Glik, 1991) and 65 percent

    of all periodicals with 96 percent of

    total circulation (Giorgi et al, 1995,

    p19). There was no competition be-

    tween the four publishing houses as

    each specialised in certain sectors.

    Communist media markets were not

    only concentrated but segmented as

    well which further limited competi-

    tion between companies and media

    products. In magazine publishing, for

    example, most titles targeted specific

    groups such as youth groups, women,

    pensioners, certain industrial groups

    and the like and there was no other

    titles with similar target audience.Similarly in the book markets publish-

    ing houses were specialised: there was,

    for example, one publisher for children

    books, one for medical books, one for

    contemporary literature, one for text-

    books and so on. In the national daily

    newspaper markets the title of the

    Communist Party dominated. In the

    Czech lands Rud Prvo (Red Light), in

    Hungary Npszabadsg (Peoples Free-

    dom) and in Poland Trybuna Ludu

    (Peoples Tribune) were the leading

    newspapers throughout the commu-

    nist period.5 They were the most influ-

    ential newspapers with far the highest

    circulation figures. Apart from the or-

    gan of the Communist Party there was

    a national daily of the government, one

    owned by the National Front, one by

    the Trade Union and a few other major

    social organisations. In the regional

    press markets there was one title for

    each county which was controlled bythe regional committees of the Com-

    munist Party.6

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    4000

    3000

    2000

    1000

    01955 1960 1965 1970 1975 1980 1983 19881950

    Figure 1: Number of press titles in communist East Central Europe

    Figure 2: Circulation of press titles in communist East Central Europe (million)

    Poland Hungary Czech lands

    Sources: various including Goban-Klas, 1994;Statistical yearbook, United Nations, 1990; PolishStatistical Office as quoted in: Lojek et al, 1988;Polish Publishing in Figures, XXXV: 1989; Statisztikaivknyv, 1991; Kkay et al, 1991; Szecsk and

    Fodor, 1973; Federlni Statistick_ Vrad, HistoriskStatisticka Rocenka CSSR, 1985; Statistick RocenkaCeskoslovensk Socialistick Republiky 1989.

    3500

    3000

    2500

    2000

    15001000

    500

    01955 1960 1965 1970 1975 1980 1983 19881950

    Poland Hungary Czech lands

    Sources: various including Goban-Klas, 1994;Statistical yearbook, United Nations, 1990; PolishStatistical Office as quoted in: Lojek et al, 1988;Polish Publishing in Figures, XXXV: 1989; Statisztikaivknyv, 1991; Kkay et al, 1991; Szecsk andFodor, 1973; Federlni Statistick_ Vrad, HistoriskStatisticka Rocenka CSSR, 1985; Statistick RocenkaCeskoslovensk Socialistick Republiky 1989.

    Figure 3: Circulation of daily/weekly/monthly titles in Hungary (million)

    1600

    1400

    1200

    1000

    800

    600

    400

    200

    0

    1955 1960 1965 1970 1975 1980 1983 19881951 dailies weeklies monthlies

    Source: KSH, Statisztikai vknyv, 1996.

    Czech lands Hungary Poland

    14000

    12000

    10000

    8000

    6000

    4000

    20000

    1955 1960 1970 1975 1980 1982 1985 19881950

    Figure 4: Book Title output in communist East Central Europe

    Sources: various including Biekowska et al, 1990;Zld, 1987; Simek and Dewetter, 1986; KSH, 1991;Statistick Rocenka Ceskoslovensk SocialistickRepubliky 1989.

    Czech lands Hungary Poland

    Figure 5: Number of published book copies in communist East Central Europe

    300000

    250000

    200000

    150000

    100000

    50000

    01955 1960 1970 1975 1980 1982 1985 19881950

    Note: a circulation figure is a total (global) year circulation of all press titles.

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    The performance and development of

    media markets in former communist

    countries reflected the characteristics

    of communist media economics, struc-

    tures of the markets and the specific

    functions of the media. Figure 1 and 2

    illustrate the development of the press

    sectors in the three East Central Euro-

    pean countries during the communist

    era.

    In Hungary and Poland the number of

    press titles increased during the period

    especially in the 1980s. In the Czech

    lands the number of press titles re-

    mained at roughly similar levels be-

    tween the 1960s and the late 1980s.

    Circulation of press titles increased in

    each of the three cases during the pe-

    riod, however there were differences

    between the countries. In Poland there

    was a sharp increase in circulation fig-

    ures during the second part of the

    1960s, while in Hungary and the Czech

    lands the growth was more gradual. In

    all three countries the increase for the

    whole period was quite substantial.

    Reasons for the differences betweenthe three countries in aspects of press

    production included their specific po-

    litical and economic developments,

    particular media policies of the com-

    munist authorities and variations of

    communist media system.

    A general feature of communist press

    sectors was the overemphasised role of

    national daily newspapers. Figure 3 il-

    lustrates the development of different

    press titles in Hungary in relation to

    each other. The overemphasised role of

    daily newspapers was maintained

    throughout the period.

    Similar to the press sectors, the book

    markets of the three countries ex-

    panded considerably during the de-

    cades of communist era. Figure 4 and 5

    illustrate the development of the book

    markets. The number of published

    book titles increased in Poland andHungary during the 1970s, but de-

    creased during the second part of the

    1980s as a result of economic and po-

    litical changes. In the Czech lands the

    number of book titles remained at

    comparable levels between the 1960s

    and the late 1980s.

    The number of published book copies

    fluctuated more (see Figure 5). In the

    Czech lands book copies increased

    gradually after a slump during the sec-

    ond part of the 1950s. In Poland follow-

    ing a drop in the early 1960s the num-

    ber of published book copies grew

    considerably especially during the

    1980s. In Hungary book copies in-

    creased continuously and expanded

    particularly during the 1970s. The ex-

    pansion, however, stopped by the mid1980s probably as a result of general

    economic problems in the country.

    The expansion of print media sectors in

    the three countries was secured by gen-

    eral economic development of the com-

    munist era as a whole, increasing living

    standards, specific features of the com-

    munist media system, relatively high

    levels of subsidies and a strong press

    and book culture. The development ofprint media sectors was determined by

    central plans and increase in produc-

    tion was subsidised by the state. In fact

    state supports were important factors

    in the rate of growth. The size of subsi-

    dies varied during the period in the

    three countries depending on prevail-

    ing ideological pressures and particular

    political and economic situations.

    Changes in media consumption and

    consumer trends were not always com-

    parable with patterns of support in

    communist media and cultural poli-

    cies. The prioritisation of certain politi-

    cal titles in circulation figures on the

    part of the authorities did not corre-

    spond to similar interest from the

    population in many cases. Kovts, for

    example, found that in the mid-1980s

    the over-prioritised communist daily

    Npszabadsg in Hungary was read by

    one third of the population, while re-

    gional newspapers on average by 50percent and the womens weekly Nk

    Lapja by 34 percent (Giorgi et al, 1995,

    p21). Table 3 illustrates the changes in

    consumption of different media forms

    in communist Hungary. It is noticeable

    that television viewing increased con-

    siderably from the 1960s to the 1980s

    and the only media form which lost in

    popularity was cinema.7

    Summary

    The article discussed features of com-

    munist media economics and in gen-

    eral the characteristics of communist

    media system. The print media of

    Czechoslovakia, Hungary and Poland

    Table 3: Media consumption in communist Hungary Source: based on Kpeczi, 1986.

    media form media consumption % of population older than 10 years of age

    1964 1981

    television viewing 65 94

    radio listening 88 94

    newspaper readership 80 87

    periodicals readership 70 76

    book readership 56 65

    cinema 69 38

    theatre 36 24

    concert 5 11

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    80 JMM Vol. 3 No. II 2001

    during the communist era were used

    as case study for the analysis. It was

    argued that the media had emphasised

    political and educational functions

    during the communist era and that

    bureaucratic coordination played a de-

    cisive role in the production and opera-

    tion of media sectors. It was shown that

    the authorities closely controlled me-

    dia production and operation by vari-

    ous formal and informal methods. Me-

    dia companies in communist societies

    did not have to respond to consumer

    trends as in market-led systems. Al-

    though consumer demands could not

    be completely ignored, they were

    mainly followed if they fitted with the

    political and cultural policies of theauthorities.

    Specific structural features of media

    markets which included high level of

    concentration, limited competition,

    state ownership, lack of vertical inte-

    gration and central planning of market

    entries were examined. The perfor-

    mance and development of communist

    print media in the three East Central

    European countries were discussedand it was argued that central plan-

    ning rather than consumer trends

    played significant role in the expan-

    sion of many media sectors during the

    communist era. It was also emphasised

    that the media systems of the three

    countries were not static and there

    were some shifts in media operation

    and production.

    Notes

    1 Although state-owned companies and coopera-

    tives dominated the economies of communist

    countries some sort of private sector did exist.

    The importance of the private sector varied from

    country to country and from period to period

    during the communist era. Hungary and Poland

    were characterised by relatively large and active

    private sectors by the mid 1980s, which were also

    referred to as the countries second economy.

    Kornai distinguishes between formal and infor-mal private sectors. By the latter one he means

    the production of goods or services by individu-

    als for another for money or payment in kind

    such as private medical services, translating,

    typewriting, cleaning or transportation services

    (Kornai, 1993, p116).

    2 There were some changes in the extent of which

    prices were fixed. In Hungary, for example, as a

    result of economic reforms certain prices were

    partly freed during the 1970s and 1980s. Fixed

    prices for printing was abolished in 1979, which

    created some space for financial manoeuvres for

    the companies involved.

    3 Kornai refers to this economic behaviour as

    ratchet-effect, which means that as a result of

    the built-in mechanisms of the communist eco-

    nomic and political system the central plan

    could only be fulfilled, and the next plan could

    only be increased (Kornai, 1993).

    4 Polish statistics define newspaper as a periodi-

    cal published 2-6 times a week.

    5 Circulation of Rud Prvo was 900,000 during

    the early 1980s, that of Npszabadsg 750,000,

    and that of Trybuna Ludu around 1 million

    (Lendvai, 1981). In 1988 Rude Pravo had a circu-

    lation of 1,132,000, followed by Svobodne Slovo

    with half million circulation and Zemedelske

    Noviny with 385 000 copies (Giorgi et al, 1995).

    In Hungary Npszabadsg was published 720-

    750 thousands copies during the second part

    of the 1980s, while the second largest daily

    Npszava had a circulation between 300-350

    thousands.

    6 Communist daily newspaper markets did not

    have popular titles similar to those which domi-

    nated Western markets mainly because of the

    different roles of the media. The closest thing to

    a popular press in the three countries during the

    communist era were evening papers such as the

    Esti Hirlap in Hungary, Vecerni Praha in Czecho-

    slovakia and Kurier Polski in Poland. The content

    of these titles was similar to other dailies, how-

    ever the articles were shorter and they contained

    more human interest stories. East Central Euro-

    peans could also try to escape the off icial press

    line by reading a sports daily, which was pub-

    lished in each of the three countries. The devel-

    opment of these titles, however, was closely con-

    trolled and their circulation was not allowed to

    surpass any major title.

    7 The numbers of cinema goers decreased in the

    Western world as well . The rea sons, in both

    worlds, were the popularity of televi sion, socialchanges and changes in the media industries.

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    About the Author

    gnes Gulysgnes Gulysgnes Gulysgnes Gulysgnes Gulys ([email protected]) is a

    Senior Lecturer in Media and Cultural

    Studies at Canterbury Christ Church Univer-

    sity College, Canterbury, United Kingdom.

    Her research focuses on media economics,

    globalisation, international communication,

    communist and post-communist media.