Consolidation of the media market

The Polish media market has been experiencing a similar developmental logic to that prevalent in the rest of the world: consolidation and convergence. Over the longer term, this means using models worked out by different media types which are all part of a single media concern and are operated by modern technologies specific to each of them. At present there are several multimedia groups operating in Poland at different stages of development: Agora, ITI Holding (the owner of TVN television), the Polsat group, and a group created by RMF FM radio.

The flagship of Agora, a company noted on the stock exchange in both Warsaw and London, is the above-mentioned 'Gazeta Wyborcza' - the most profitable and the largest daily in Poland, both in terms of circulation and income from advertising. The company is also owner of the leader outdoor advertising company (AMS S.A) and the publisher of 16 colour, themed magazines (the majority of them were taken over in 2002 with the purchase of the Prószyñski S.A publishing company). Agora has also engaged its capital in the radio sector since 1996. Today, the radio group consists of 28 local stations. Agora is also present on the Internet market via its own portal, www.gazeta.pl.

The media group ITI Holding is built on three pillars: television, entertainment (a network of cinemas and film production) and Internet companies. The television part consists of: TVN, TVN 24, Endemol-Neovision and ITI Film Studio, the entertainment part of the Multikino chain and ITI Cinema, and new media by www.Onet.pl (the largest portal in Poland, of which brands like Pascal and OPM - Optimus Pascal Multimedia - are a part), Tenbit, DRQ and Photographers' Agency Forum.

The ITI Holding's strategy for developing its television segment is based on the consistent creation of more themed channels. Since 2001, the information station TVN24, modeled on Euronews, and the entertainment  channel TVN7 have been in operation. Both stations are available by cable and satellite. The former is an information station, broadcasting a 24 hour news service from the country and abroad, as well as current affairs and reportage.

The terrorist attack of September 11th 2001 - which took place soon after the channel's debut in Poland - had a significant impact on the station's popularity. Overnight, the station obtained the status of opinion-former, and is also the most frequently watched station on the cable networks, where it is available. The best example of TVN24's development potential is that it is number one on the list of Warsaw's largest cable network provider, Aster City. In turn, TVN7 television was created on the basis of RTL7, already accessible via satellite in Poland. The station has also started another two themed channels: TVN-meteo (specialising in weather forecast services) and TVN-international (targeted for Poles living abroad). Polsat television also has at its disposal two daughter companies. The first is TV4, which was created after it took over the bankrupted Nasza TV television. The second is Polsat2. Based on the station a digital platform - Polsat Cyfrowy (paid for by satellite television) was also created. This is seeking to compete with present market leader, Cyfra+. Apart from this, the company is developing its foreign investments. Polish television is an investor in the largest stations in Estonia and Lithuania, for example.

RMF FM, one of the largest and most modern radio stations in Europe, is part of Holding FM, which also includes: the Internet portal www.interia.pl and companies operating in the fields of entertainment, advertising and technology.

The consolidation process also included the satellite digital platform and cable television sector. In 2001, UPC, Wizja TV's platform operator, merged with Cyfra+ to create a new platform called Nowa Cyfra+, with over 600,000 subscribers. Also in 2002 there was a large merger of companies on the cable network market: the Multimedia network and Szel-Sat's merger resulted in the creation of the second largest cable television station in the country. The combined potential of the two companies meant a reach of over a million household in 84 cities. The merged Multimedia company at the same time offers broadband Internet access.

All these examples show that consolidation on the media market is not only about rationalisation of activities, but the necessity to be able to survive on today's market. Contemporary receivers of information and entertainment often demand both integrated and individualised services. This is especially so among young and educated multimedia users in Poland.