In May 2017, the companies authorized to transit the broadcasting received the letter, written in an ultimatum manner, from the company Media Rights Georgia (GMR), in which the latter notified them that soon they will receive right to commercially distribute the signals of the TV-Channels Rustavi 2, Comedy Channel, Marao, Imedi, Maestro and GDS. Unless the cable operators apply the GMR for signing the contract until May 20, they will lose right to transit the signal.
The cable operators state they do not agree with the requirements of the Media Rights Georgia and elaborated the below published joint address to the six Georgian TV-Companies and the GMR.
Joint Address of the Entities Authorized on Broadcasting Transition
To the GMR Ltd
To the TV-Companies – Imedi, Maestro,
Rustavi 2, Comedy Channel, Marao, GDS
The entities authorized on broadcasting transmission received written notifications that in near future the Ltd GMR will obtain exclusive authority to carry out commercial distribution of the content of the TV-Companies – Imedi, Maestro, Rustavi 2, Comedy Channel, Marao and GDS. It means, they will charge the cable operators to transmit the signals of the above-listed TV-Companies. The notification, without any verification, states that the cable operators, which will not apply to the company GMR before May 20, will no longer be able to air the mentioned TV-Channels from June 1. The letter also states that at present, the Company GMR does not have any authority to have any requirements from the authorized entities and to request them to stop the transmission. Consequently, we do not accept and acknowledge the letter as obligatory to be implemented.
At the same time, regardless the further legal relations between the broadcasting companies and the Ltd GMR, we categorically disagree with the information about the fixed fees for the transmission. Unless you change the position, we will make joint decision to switch off transmission of your signals.
We kindly request you, before making final decision, take into account the role of the cable operators in the transmission of your broadcasting companies throughout Georgia, that directly impacts the rating of your channels and scope of advertising market. The private TV-Companies get income from commercial advertisements and the audience of those advertisements are the Georgian population. The principle indicator of placing advertisement on the TV-Channel is its coverage and number of audience that is of particular tribute of the transmission companies. Consequently, the cable operators, who serve the Georgian TV-Channels in the dissemination of their signals, assist them to get income, should pay additional money for that? Of course, this decision is beyond all reasonable arguments. For more clarification, we would like to mention the examples of foreign paid TV-Channels, which are provided by the cable TVs. They offer us special versions, which are created for international market. They create TV-products for the cable operators across the world and they are not interested in getting income from advertising; they are mostly free from advertisement breaks.
Besides that, the three TV-Companies mentioned in the notification – Imedi, Maestro and Rustavi 2, are national broadcasters, which enjoy the right of obligatory transmission (so-called Must Carry), which means the national broadcasters can request the entities authorized on broadcasting transmission to include their channel in all broadcasting package.” At the same time, Article 401 Part I of the Law of Georgia on Broadcasting deprive you from the right to request the authorized entities to pay in exchange of the transmission. You are very well aware that after the law went in force, several private TV-Companies modified their licenses and became national broadcasters so that they could demand the transmission operators to place their channels in all packages. If the operators refuse them, they can appeal the Georgian National Communications Commission and demand the cable TVs to air their programs.
We would like to remind you that since the creation of cable TVs, the main interest of all broadcasters was to be included in the packages of the cable operators. We remember several cases when a cable operator switched of a Georgian TV-channel and it caused harsh reactions from the administration of the broadcasting company. We wonder whether it is no longer important for the TV-Channels to be in the packages of the cable operators?
We would like to further clarify that the entities authorized on transmission charge consumers for the technical service. Nobody in Georgia selects the cable TVs to watch Georgian TV-Channels. They can do it for free via multiplex and/or satellite systems. You yourselves pay huge funds to reach all citizens of Georgia. It is strange why do you ask the cable operators to pay the money for the dissemination of your signals? It is illogical. It means you try to compensate your financial resources you spent on the transmission of your programs throughout the country from the cable operators and the population because the paid transmission automatically result into increased subscribers’ tariffs that will finally affect the population and we will receive huge discontent of the population.
We would like to again remind you that the subscribers select the cable operators to watch the TV-Channels of foreign countries because they cannot watch them otherwise.
We kindly request you to take the circumstances mentioned in the abovementioned letter into account and change your position. Otherwise, the cable operators will switch off the signals of the TV-Companies, which are listed in the letter.
