“Croatian media landscape” Agency for Electronic Media

Page  2 Regulatory environment  Agency for Electronic Media is run by Electronic Media Council  Agency has 22 employees out of which 7 are Members of the Council and are elected at five years term  New Broadcast Act with AVMS Directive transposed passed on 29 December  Succesful analogue to digital switchover conducted during Digitalizacija i specijalizirani kanali na televizijskom tržištu Hrvatske

Page  3 Croatian TV market – nationwide  Croatia has 1,4 million TV households  There are 4,1 milion TV viewers (4 years+)  Terrestrial reception is dominating the market (over 50%)  Pay-TV platforms are growing in penetration driven by switch-over, the leader at the market is T-HT with it’s IPTV based pay TV service  There are four national general entertainmentTV channels (two PBS and two private commercial broadcasters)  Three DVB-T MPEG2 multiplexes are distributing FTA 11 national and 20 regional and local channels Digitalizacija i specijalizirani kanali na televizijskom tržištu Hrvatske

Page  4 Croatian TV market – regional and local  There are 21 regional and local TV channels in Croatia  Switch-over process brought new challenges to local broadcasters - The cost of signal transmission increased for most of them Digitalizacija i specijalizirani kanali na televizijskom tržištu Hrvatske

Page  5 Croatian radio market  There are three public service national radio channels and three private commercial national channels  There are three non-profit radio stations in Croatia  Altogether there are 150 radio stations in Croatia  Regional, local and non-profit broadcasters (radio and TV) are subsidized by the Fund for media pluralism and content diversity that is awarded yearly.  The Fund is financed as a percentage of public service fee and around four million Euros are distributed according to criteria set by the Law. Only content of certain public value is considered for the subsidy. Digitalizacija i specijalizirani kanali na televizijskom tržištu Hrvatske

Page  6 New challenges  More legislation is needed to further define new forms of advertising, product placement, “significant value”  Every concession has to be justified through a feasibility study that the Agency has to produce, the focus is on sustainibility of the concession (for the total period of the concession contract)  Every cable, Internet and satellite channel has to receive permit issued by our Agency, and we have to run a register of electronic publications  New Law on PSB brought new responsibilities for the Agency such as “public value test” for services that are be proposed the PSB.  Other challenges include: regulation of Connected TV, OTT and on demand services…etc. Digitalizacija i specijalizirani kanali na televizijskom tržištu Hrvatske

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