Czech Republic market analysis

Details on the various TV channels in the Czech Republic, including what programmes they are importing.

The Czech Republic has 3.7 million TV households and around $2bn (£1bn) in ad revenue (49% TV). As in Poland, the landscape is dominated by a public broadcaster, CTV, and two main commercial rivals.

But there is something of a role reversal – with CME-owned commercial network TV Nova the dominant player and Modern Times Group’s TV Prima also consolidating its position. Both commercial networks face challenges from the growing number of niche networks, fragmenting audience share and rapid inflation in the cost of programme acquisition (which may force them towards more local production). Nevertheless, they have cause to be optimistic.

The ad market is growing and CTV is soon to be stopped from selling ads. As for pay-TV, cable is dominant – with 26% penetration. DTH satellite is at 20%. Cable is expected to extend its lead in the next five years.

CZECH TV
Public broadcaster Czech TV has two terrestrial channels (CT1 and CT2) and two digital channels covering news and sport. Of the two, CT1 is more mainstream – reflected in its audience share (circa 20% to 22%).

However, restrictions mean CTV will soon not be allowed to generate ad revenue – making it completely reliant on its licence fee. Around 75% of CTV’s content is locally produced, which leaves scope for both format and completed-show acquisitions.

Recent deals have seen it pick up Aardman’s Shaun the Sheep and the Aussie kids show Backyard Science from distributor Beyond. UK drama titles to have been bought include Agatha Christie’s Marple.

TV NOVA
Despite a protracted dispute over ownership of the network (now over), CME’s commercial channel TV Nova has consistently been number one both in terms of audience and ad revenues.

Although changes in research methodology took the network share down from 60% in the 1990s to 40% during this decade, it remains a clear leader. Indeed, Nova executives say 2006 delivered the channel’s best performance for five years.

Nova attributes its success to local news and drama content – and thus is not over-reliant on acquisitions. That said, Czechs love detective series and CSI does well. Local versions of shows such as Pop Idol, Wife Swap, Big Brother and 1 vs 100 have also performed strongly, while Nova also has a deal with BVITV for series such as Lost. Because it is a mainstream network, Nova looks at all genres but avoids shows for niche audiences.

PRIMA TV
With an audience share of around 20%, TV Prima lags behind both Nova and CTV. But it is certainly moving in the right direction – with share doubling since the mid-1990s. Not only that, it now has a big backer in the shape of Modern Times Group, the Scandinavian media group that has made a concerted drive into CEE.

Prima has not been as prolific as Nova in the acquisitions market, but a multi-year deal with Warner Bros International gives it access to series, cartoons and movies.

Possibly, with Nova wanting to move more towards local production, Prima will grow in significance on the acquisitions front (especially if MTG buys shows across borders).