1. Vot Machine Sold at the News Stands

(first page in the newspaper)

More and more politicians are trying to found their media groups to help them in the elections.

Journalists from the city of Brasov are worried with the latest series of events. The second journal in terms of audience, “Monitorul de Brasov” is to be sold to a PSD deputy, together with two other dailies in Ardeal.

 

The transactions in Transilvania follow other important purchasing of media by politicians, even by those who had debts of billion ROL at the end of the last year. Deputies Culita Tarata, Iulian Tocu, and the mayors Mazare and Sechelariu have already developed their media investments. The politics interfere more and more media content by economic tools.

More and more politicians are trying to found their media groups, which help them in the elections. “I took over free of charge the three Moldovian ‘Monitor’, in Braila, Neamt, Roman”, says Tarata, but he does not speak seriously. He refuses to say exactly how much he paid for the 3 local dailies, but he admits he spends monthly about one billion ROL covering the costs. Culita Tarata developed businesses of billions ROL in one of the main agricultural regions of Romania (Insula Mare a Brailei).
Some other papers than his own have written lately about the debts of billion ROL attributed to Tarata’s companies, based on the fiscal documents of Romanian Fiscal Authority. One of his companies, T C E 3 Brazi, had 349,000,000,000 ROL, according to the Ministry of Finance database. Confronted with this evidence, Culita Tarata denied that his companies has any debts.
The story, presented by the daily media with proof of Local Fiscal Authorities Neamt, presented no interest to the TV stations. TV News covered mainly cases of small corruption, according to the last analysis made by the Media Monitoring Agency (MMA).
MMA provided to Capital the partial results of the last media monitoring September 26 – October 9. According to this study, the president Iliescu and the prime-minister Nastase are leaders in the top of politicians most talked about in media. The newspapers wrote especially about big corruption. On the contrary, the TV channels broadcast one piece of news about big corruption, the deputy Viorel Gheorghiu case, accused of framing the theft of his own car.

The journalist Ioana Lupea, columnists with “Cotidianul” newspaper called this kind of journalism “obedient press”: Tv news bulletins start with casual facts, or with the last success of the Government”, often “crimes, rapes, thefts, accidents, a.w.o.l.s., which are diversionary.
“I hardly believe that the prime-minister would call and say: you should broadcast this, but not the other one. The journalists make their one decisions, because they think it’s best for them”, Ioana Avadani, the director of he Independent Centre for Journalism Independent said. She thinks this kind of media is either influenced, or seduced.
In the 2000 elections, the parties spent for media advertising more than three brands of beer together did ($ 3,700,000 - the biggest budget). In the following elections, the electoral campaigns appeal to all media as possible sources of money.

2. Billionaire Mayor, Buying Newspaper (page 7 in the newspaper)
More and more politicians are founding or extending their media empire. Some of them officially admit the media owned helped them in the elections

 

Interested in politics and economy in its work, Cosmin Alexandru, 33, reads the media every day. He reveals that he started to take less and less articles in consideration.

Cosmin has a lot of reasons to be sceptical. The media coverage is suspected to be put under the pressure of the politics for many reasons. First of all, politicians bought an important part of local media. Some of them that declare openly that the media groups they own help them in the election days. The politicians owning media sometimes attack the independent press organizations, as is the case of ‘Monitorul’ regional dailies.
There are more than 100 local and regional newspapers and more than 100 TV private stations, according to Freedom House. The local press map shows that a lot of politicians bought media companies. Dumitru Sechelariu, the mayor of Bacau, admits that the paper bought in 1995 helped him winning the local elections. He has lately paid $ 1,100,000 for extending his media group, ‘Desteptarea’, which includes now “Desteptarea” newspaper, and the main radio-TV group in town, Alfa. Half of the seven papers existing in a medium town (300,000), at least half are controlled by owners or managers politically involved, show the analysis made by Capital, based on the Registry of Commerce data.

The Media Monitoring Agency (MMA) has said since May that the politicians in power lead on the TV screen and in the pages of the newspapers. The MMA president, Mircea Toma, explains that “the political men learnt to control the media through economic tools. Every political regime used this tool, but now is increasing”. It’s interesting that there are so many media companies in very small towns.
In Piatra-Neamt (57.000), there are three TV stations, more than in Timisoara, a town six times bigger. Two businessmen, boths SDP deputies, share the media in Neamt. Iulian Tocu took over two of the three stations in town (Tele M and Tele 7 Neamt). Culita Tarata bought ‘Monitorul’ (Neamt and also in Braila and Roman). He keeps secret the amount of money paid for the media, but he reveals that the costs of the papers are about ROL 1,000,000,000 a month. About the interference of politics in media, Tarata denied any involvement in the editorial content.
Ioana Avadani, the chief of the Centre for the Independent Journalism (CIJ), says there are more publications than the market admits, which shows they do not live on economic basis, on a contrary, there is a political influence.
Even if the ball is in its court, as party in power, SDP is not the only party investing in media. Alexandru Cancescu (liberal, ex-democrat) does not hide his position as PDG of the TV-radio group Mix Brasov. Cancescu is the president of the council of the county at the same time. The Romanian legislation forbids the duality of the positions only for ministers.
Another mayor owning a newspaper is Radu Mazare, from Constanta. He was editor-in-chief of the local daily ‘Telegraf’ in Constanta since 1997, when he was also a democrat deputy. Forced to leave the party, he said he would go on publishing in his newspapers “the cases of corruption, no matter the political colour of the persons involved”.
In Oltenia region, ‘Gazeta de Sud’ covers three counties, edited by a media group owned by Gheorghe Constantin Paunescu, who has been very closed to the current party in power since ’90. The editor-in-chief of ‘Gazeta de Sud’, Adrian Voinea, dismisses any interference of the owners with the editorial contents; as proven by the published comments of well-known analysts whom nobody dares censor.

On the contrary, Alexandru Lazescu, the founder of the independent local press network says that the media is economically vulnerable, and this is the neuralgic point where the politics interferes. Publications, which do not obey the party, have to suffer, Lazescu says pointing to the harassment by various means of the newspapers parted from the ‘Monitorul’ network. Pressures on ‘Ziarul de Vrancea’ were highly mediated, but the case is not an exception.
Media organisations receive alarm signals every week about new judicial cases opened against journalists. ‘Public interest does not exist. The relation between power and the media is, in the country, one of master and servant’, says Mihai Enciu, journalist for ‘Gazeta de Sud-Est’. Similar messages keep coming from other parts of the country - Sinaia, Turda, Slobozia, Focsani, Galati, Buzau.

Mass media in the country:
• 100 local and regional dailies
• more than 100 TV stations
• 200 radio stations

Owners:
- Dumitru Sechelariu, the owner of "Desteptarea": daily "Desteptarea", declared circulation 12.500, and the TV-radio Alfa.

- Radu Mazare, the mayor of Constanta, shareholder in "Telegraful" daily. In ‘97 Mazare was editor-in-chief at this newspaper and a democrat member of the Parliament at the same time.
Excluded by Democratic Party (DP) and he has recently stressed his option for SDP.

- Alexandru Aristotel Cancescu, PDG of Mix Brasov (radio stations Mix FM), Mix TV and "Mix Express". He is the president of the Council of the Brasov County, ex-senator DP, National Liberal Party (NLP) member at present time.

- Iulian Tocu, SDP deputy - TV Tele M and Tele 7 Neamt

- Culita Tarata, SDP - "Monitorul" de Neamt, "Monitorul" de Roman, "Monitorul" de Braila. He says the papers cost him about ROL 1,000,000,000 a month.

 

 

 

3. THE MAP OF LOCAL PRESS: OBEDIENT OR THREATENED NEWSPAPERS

In small towns, the media battles political and business interests. A series of newspapers were bought by politicians. The rest of them, that have not submitted to none of the political powers of the time, are juridical, economically harested and even through physical attacks against journalists.

Bacau, August 2002. We speed to Bacau for a discussion with the editor-in-chief of the most influential local newspaper ‘Ziarul de Bacau’. Downtown, we try to identify the exact address and ask a passer-by for help. ‘Are you looking for the mayor's newspaper?...’, he asks suspiciously. ‘No, not the mayor's’. ‘Then, his wife's maybe’. ‘No, sir’.

There are three newspapers in the city of Bacau (200,000): ‘Desteptarea’, ‘Ziarul de Bacau’, ‘Monitorul de Bacau’, a TV channel (Alfa) and several radio stations. “Desteptarea’, the TV channel and a radio station belong to mayor Dumitru Sechelariu (PSD). He inherited the former communist newspaper ‘Steagul Rosu’ (Red Flag). Sechelariu bought ‘Desteptarea’ in 1995. ‘My best collaborator as a mayor is the ‘Desteptarea’ newspaper, that helps me improving my mission as a mayor. The best method to find the deficiencies of a public good is for somebody to signal them, saying 'Mayor, there's lot of garbage on that street, a bulb was stolen’, or other similar problems. Sechelariu states openly that the newspaper helped him a lot in the 1996 elections, when he was elected for the second time in a row. ‘I believe that in 1996 I got a lot of help from the possibility to express what I wish, what I want to do. In fact, I had paid for the maintenance costs of the newspaper because, as we all know, nobody lives from writing in the media’. ‘Desteptarea’ has a circulation of 12,500 copies (there is no independent audit report on it). There is no interference, says editorial manager Dorin Ciulina, adding that there are other newspapers with politically involved owners and a recent study showed that negative news on the city hall - the institution, not the mayor - have dominated the media. ‘When shortcomings come up, city hall employees risk a session with the mayor and may lose their job’, Sechelariu says.

The mayor paid 1,100,000 million USD for the radio and TV channels and for the building that used to host the only competing, independent newspaper in Bacau, ‘Monitorul de Bacau’.

‘When I learned that mayor Sechelariu has become a shareholder, it became obvious that we had to look for a new headquarters, no matter how favourable the renting contract we had was’, says Liviu Avram, the editor-in-chief of ‘Monitorul’ at the time.

The split up of the ‘Monitor’ paper followed: the editorial staff formed Ziarul de Bacau, held by known journalists like Alexandru Lazescu, not by politicians. Its only links with the mayor are the multiple court cases, which no writer has escaped from. In the mind of a press reader, the ‘mayor's newspaper’ is associated with independent titles, as the involvement of politics in the media throw a negative light on all publications.

The mayor, whose brother is a state secretary within the Ministry of Transportation, has repeatedly announced that he wanted to buy Letea, the only press paper producer in Romania. Ovidiu Fodor, counsellor with ‘Buna ziua, Brasov’ says that purchasing will certainly influence the media market.

 

How the main local press network was split up
The ‘Monitors’ resisted to pressures especially from the power of the ‘Nord-Est’ (North-Eastern) network, which managed to become the most powerful local press network, comprising 18 local paper. One of its main trumps: independent shareholders, non-politically involved, professional journalists. The first ‘Monitor’ was based in Iasi in 1991, where in the printing house for the ‘Monitors’ in Moldavia too. The rapid development of the “Monitor’ ended up in a economic crises. It was then when ‘Curentul’, financed by Sorin Ovidiu Vantu, took over the control by franchise over the ‘Monitorul’ brand. The financial problems of the Vantu empire, that started last year, made Mihai Iacob the owner of the ‘Monitorul’ title. Both of them are at the moment under the police investigation. Iacob sold ‘Monitorul’ network piece by piece.

Initially, he tried to include a ride in the franchise contract, ‘which obliged the editorial staff to publish in full every story delivered by him, with the photos and on the page he wanted’, said Corneliu Condurache, the manager of the ‘Ziarul de Vrancea’. The editorial management refused the deal, which started the conflict. In several towns, the editorial team broke up with Iacob and went on to publish the local dailies under a different name. New entitled papers, ‘Ziarul de Vrancea’, ‘Ziarul de Iasi’, ‘Ziarul de Bacau’, ‘Ziarul de Braila’, were issued.  The centre of the editing and printing remained in Iasi.

The pressure came from everywhere. ‘In May-April 2002, the authorities tried again to stop issuing our daily. They tried to block the delivery of the paper in Focsani, and to confiscate all the copies. After the Romanian Post and Rodipet have uneconomically refused to sell our daily, the Focsani Town hall is sending the bulldozers today to remove our newsstands’, said Alice Gheorghita, the editor-in chief. The Town hall started to remove the distribution news stands.

‘In protest, we tried to chain ourselves to the news stands, but the bulldozers didn’t stop’, said Lidia Grosei, journalist with ‘Ziarul de Vrancea’. The newspaper won in court, but the decision was completely ignored.

 

Fiscal controls sent to local papers

The newsstands didn’t have the fiscal devices, said Mihai Lungu, chief of the Financial Guard (Fiscal authority) in Focsani town.  Neither the purchase of the fiscal devises, which cost ROL 400,000,000, nor the court decision banned the seizure. ‘The fiscal devices would have been as good as any other pretext to forbid us distributing the paper. 22 confiscated newsstands were abandoned in the fields. Ironically, tow days ago, we were announced that our distribution firm would be awarded the seventh place in the micro-enterprises top, in a solemnity attended even by the prime-minister’, says Corneliu Condurache, the manager of the paper.

Expelled from its own distribution network, rejected by state distributors (Romanian Post and Rodipet), the newspaper is now being sold by street vendors. The bodyguards of the county council president, Marian Oprisan, have threatened and even beaten some of the vendors, and the press published the photo of the menacing fist. The readers have proved to be faithful to the ‘Monitor’ they used to know, which became ‘Ziarul de Vrancea’. The same happened in the other cities, the most famous being the case of ‘Ziarul de Iasi’, which regained the former audience in two days.

 

The ‘Monitors’ clones become party papers

Iacob has not given up his press business easily. In the towns where the editorial staffs created new papers, the clones of the former ‘Monitor’ are circulating simultaneously. More and more ‘Monitor’ have been secretly sold to the SDP supporters. In Bacau, the latest piece of news is that this publication has been taken over by Iacobov, another businessman close to SDP.  So have the ‘Monitor’ in Braila, Roman and Neamt, this time the owner being Culita Tarata, another SDP deputy.

In Brasov, Sibiu, Cluj, sources close to the transaction indicate that these publications have been sold to another SDP deputy, Constantin Nita. He confirmed that he had taken part in the negotiations, but denied being himself the buyer. Since the media house is to be sold as a whole, the printing house included, another six newspapers printed here are on shaky grounds.

 

Paunescus in the local media

‘Gazeta de Sud’ covers the Oltenia region, where it is the leader of the market, with over 300,000 copies (audited circulation). Together with radio Sud, ‘Gazeta de Sud’ (GS) is owned by Media Sud Est Europa Bucuresti, run by George Constantin Paunescu. The brother Viorel, Valentin and George Paunescu are old SDP supporters, having accompanied the party in power. The name Paunescu is associated especially with the national daily ‘Curierul national’ and less with the local media.

Adrian Voinea, the editor-in-chief, and the manager of the publication, says that ‘the owners do not pry into the editorial content, as it has been clearly established’.

He says that ‘Gazeta de Sud’ published the articles of analysts like Stelian Tanase and Octavian Paler, whose columns no one would dare to censure, and this is a clear proof of the non-interference in the editorial. GS reporters are sued by local authorities, as a consequence of their investigative reports. According to a recent market research, GS has a leading audience in Craiova, with more than 50% market share. However, the financial scandals related with the name Paunescu (eg. Bancorex) have damaged his press credibility. 

A more stable press can be found in Iasi. The most popular newspaper is ‘Ziarul de Iasi’, with a circulation of over 10,500 copies. A clone of the former ‘Monitorul’, it was a major stake for the wing of the PSD local branch run by Adrian Butuca, who thus hopes to consolidate his position within the party. As the circulation fell sharply following the separation of the old editorial staff, the newspaper has become a money eater even for politicians. Now, they say have nothing in common with the newspaper. The second in popularity is ‘Evenimentul’, a mostly commercial-oriented newspaper (25 pages out of 32), followed closely by ‘Ziua de Iasi’, ‘Monitorul’, ‘Flacara de Iasi’.
Iasi had a strong media at the beginning, with the launch in 1990 of ‘Opinia studenteasca’ (founded by Andi Lazescu), and that is because “there were no political understandings’, says “Ziarul de Iasi’ editor-in-chief Toni Hritac. In his opinion, the Iasi political and business environment hosts “some kind of good mannerhood, you used the sword, not the bat’. Both ‘Ziarul de Iasi’ and Timisoara-based ‘Agenda’ bet on their capital of trust, using different techniques, though. ‘Ziarul de Iasi’ opens its daily issue with an investigation, in the spirit of the journalistic rules: ‘the separation of information from opinion is a matter of honesty. The capital of trust is the most important capital of a newspaper. Readers become faithful even when one needs to change one’s name ‘, says Toni Hritac. ‘A serious weakness of local press is the lack of journalistic and managerial education’, Ioana Avadani, head for the Center for Independent Journalism (CJI) says.
In Timisoara, ‘Agenda’ bet on news of “the man who bit a dog’, not on political issues. Thus, “you do not have to serve any interest. Owners do not have anything against you’, says Nicoleta Popescu, first deputy editor-in-chief. The recipe had a huge success in Timisoara, where the ‘Agenda’ weekly registered record sales among local media – over 80,000 copies per issue. In 1990, when the whole formerly communist media was going political, the “Agenda’ founder Zoltan Kovacs felt that he might win the bet for audience sending politics to the bottom of the page.

Local weeklies also include ‘Banateanul’, published by Media Pro. It is largely oriented on features, a less appealing journalistic genre for the Romanian media. In Banat, there are many dailies, but their circulation is poor: ‘Renasterea banateana’, ‘Agenda zilei’, ‘Timisoara’ – supporting the return of the monarchy – and the Western edition of the national ‘Romania Libera’. Among television channels, TV Europa Nova belongs to the same trust with ‘Renasterea banateana’ and faces competition from ‘Analog TV’ and the local station of Pro TV. Journalist Malin Bot says the political influence can be felt in Banat as well and points towards ‘Prima Ora!’, a newspaper known to obey the governing PSD. However, business interests are first in regional cities of over 300,000, in comparison to small towns and villages, where politics are the most important.


Editor-in-Chief Radu Mazare Turned Mayor

One of the most sensitive issues a newspaper faces is the headquarters: most do their work in buildings rented from the city hall. Because it wrote about the mayor’s businesses, the editorial-staff of ‘Jurnalul de Constanta’ was ousted from its headquarters early this year. Mayor Radu Mazare, himself excluded from the Democratic Party, mentioned the weak provisions of the renting contract. The mayor is directly involved in the media industry. He owns a stake at the local newspaper ‘Telegraf’ and the local TV station in Constanta, Soti TV. ‘Jurnalul de Constanta’ is published under a franchise of the media trust that includes the national newspaper ‘Jurnalul National’ and the Antena 1 national TV station. Broadcast on TV, the conflict extended to Bucharest, thus leading to an official press release of the Romanian Press Club: ‘Such a meddling with the circuit of press distribution is a serious abuse capable of affecting the citizen’s right for information, provided by the Constitution ‘. It was one of the very few cases when the Club supported the local media.
In Brasov, the ‘Transilvania Expres’ newspaper dominates the market. Its shares belong to different political interests with almost equal stakes, hence the relative balance of the publication. The second is ‘Monitorul de Brasov’, currently facing an uncertain fate. ‘Monitorul’ journalists say that they were caught in between political interests which eventually forced them to turn the newspaper into a sort of tabloid. The ‘Brasoveanul’ weekly was closed following a collision of the local editorial staff and their bosses at Media Pro, Bucharest, who ordered a restructuring of personnel. On the audiovisual market, the Mix trust run by Aristotel Cancescu, head of the local District Council, figures as a leader, but changes are expected.
Ioana Avadani says ‘the media is not conceived as a business’ as long as a series of media institutions were bought by influential political and business people who consider such investments nothing more than a money-eater. “They may think it is good and useful to have a media outlet that can send a message when needed, that can be used as an intimidation, if not pressure tool’, says the CJI head. Thus, investigating journalism numbers fewer and fewer militants, journalist Mircea Toma, the head of the Media Monitoring Agency, also believes: ‘All newspapers have their taboos and I take all responsibility when making this statement’. The latest Freedom House report considers Romanian media as partially independent and criticizes the legislation, which provides prison sentences for journalists.
While the Government accuses the media – including the foreign one – of distorting Romania’s image abroad, more and more newspapers open their pages with large pictures of neck-tied politicians.

Romanian media’s weaknesses (according to CJI*)
• Economically vulnerable: ‘There are publications that may be excluded from the market by a rainy day because they depend on direct sales ‘, says Ioana Avadani, head of CJI.
• The relation between media owners and journalists. Owners consider journalists as spare parts: ‘you don’t do what I want, you may leave, I can find others just like you’.
• The lack of professional training, both journalistic and managerial.
• Over saturated market: too many publications for too little audience. Potentially, the market is quite large, but very poor.
* The Centre for Independent Journalism (CJI) is a member of an international network of journalism centres in Central and Eastern Europe

 

THE MEDIA IN THE MOST REPRESENTATIVES TOWNS IN THE COUNTRY*

Timisoara

(7 dailies, 2 weeklies, 3 Tv stations)

q       ‘Agenda’ weekly, 86,000-90,000 copies, ‘Agenda Zilei’ daily, 4.600, both of them edited by Agenda company, founded and run by the journalist Zoltan Kovacs

q       ‘Prima ora’ daily (SDP oriented)

q       ‘Timisoara’, monarchist daily

q       West editions of the national dailies: ‘Evenimentul zilei’, ‘Ziua de Vest’, ‘Romania libera’

q       ‘Renasterea banteana’

q       ‘Banateanul’ weekly, edited by Media Pro

q       TV stations: TV Europa Nova, Analog TV, Pro Tv West

 

Cluj

(4 dailies, 2 dailies)

q       ‘Monitorul de Cluj’ – the owner of the license is Mihai Iacob, who is negotiating the sell to SDP Deputy Constantin Nita

q       ‘Ziua de Ardeal’, daily edited by local company Exploziv Media

q       ‘Gazeta de Cluj’, weekly edited by Loretto Press. The main shareholder is Liviu Man, the editor in chief.

q       ‘Clujeanul’, weekly edited by Media Pro

q       ‘Kronika’, daily in Hungarian language

q       ‘Actualitatea Clujeana’ (unknown circulation)

 

Iasi

(4 dailies)

q       ‘Ziarul de Iasi’ (11,000-13,000)

q       ‘Evenimentul’ (mainly announcements paper)

q       ‘Monitorul de Iasi’ (2,500)

q       ‘Flacara Iasiului’ (unknown circ.)

q       ‘Ieseanul’, weekly edited by the Media Pro group

 

Craiova

(3 dailies, 2 TV stations)

q       ‘Gazeta de Sud’ covers three counties in the Oltenia region (Dolj, Gorj, Mehedinti); 30,000 copies. Together with Radio Sud, it is a part of Media Sud Est group, run by Gh. Constantin Paunescu (businessman close to SDP).

q       ‘Cuvantul Libertatii’, “Editie speciala” – unknown circulation, both of them are less than 50% of the market.

q       TV Terasat

q       Tele U

 

Brasov

(6 dailies, 1 weekly, 3 Tv stations)

q       Dailies: ‘Transilvania Expres’, edited by Tipotex Brasov; 12,000 copies (owned by many businessman close to different parties)

q       ‘Monitorul de Brasov’, 6.000-7.500, the owner of the title is Mihai Iacob. The editor: NEST media, founded by the journalist Marius Stoianovici. Iacob negotiate with the SDP deputy Constatin Nita to sell the title

q       Circulation under 5,000 copies: “Gazeta de Transilvania’,’ Buna ziua, Brasov’ (the last one owned by Petrica Hogea, local businessman under the police investigation)

 

Neamt

(3 Tv stations, 1 daily, 1 weekly)

q       ‘Monitorul de Neamt’, daily owned by Culita Tarata, SDP deputy (he also own the ‘Monitor de Braila’ and the “Monitor de Roman’

q       ‘7 zile’, weekly owned by SDP deputy Iulian Tocu

q       Tv: Tele 7 Neamt and Tele M, both of them owned by Iulian Tocu, SDP deputy

q       Unu Tv, owned by the local businessman Gheorghe Stefan

 

Bacau

(3 dailies, 2 Tv stations, one radio)

q       ‘Desteptarea’ daily (12,500 copies), Alfa TV and radio station, party of ‘Desteptarea’ group, owned by the mayor Dumitru Sechelariu (SDP)

q       ‘Monitorul de Bacau’ (2,000) – Iacobov, businessman close to SDP (the daily is printed by the printing house of the Desteptarea group)

q       ‘Ziarul de Bacau’ (3,000), edited by the company Nord-Est (founded by journalists)

q       TV Eurosat – (retransmit TV programs), ‘Transilvania Jurnal’

q       ‘Obiectiv’, SDP oriented, with 300 issues sold and about 2,000-3,000 subscribers (most of them state companies)

q       Mix media Group: Radio Mix (covers 18 towns), Tv stations (3 towns), weekly ‘Mix Express’. The PDG is Alexandru Cancescu, member of the Liberal Party, former democrat.

q       Pro TV (part of Media Pro group)

q       TVS Holding (insignificant audience)

 

Constanta

q       (3 dailies, 2 Tv stations)

q       ‘Telegraf’ and Soti TV – owned by Radu Mazare, the mayor of Constanta

q       Tv Neptun – Mazare is also a shareholder

q       ‘Ziua de Constanta’ (part of the national press network Ziua)

q       ‘Jurnalul de Constanta’ (part of the national press network Jurnalul National)

*Note: Capital data. The circulation is based on the sources in distribution networks (sometimes the circulation remains unknown). The shareholding data is based on the official Commerce Registry database.

 

Quotations:

Andi Lazescu, journalist, the founder of the first local press Nord-Est:

“The media is used as a weapon. The local businessman became too powerful and they have political power supporting them. Especially the party in power has a media planned strategy to dominate more and more territories. But it is not the only one”.

 

Dumitru Sechelariu, mayor of Bacau, media owner

“The best of my goods, as a mayor, is the newspaper ‘Desteptarea’. This kind of things, local publications, are mostly, sponsored, they do not bring money. But they give you a different opportunity, the opportunity to express yourself, to express what you are going to do. This is what the ‘Desteptarea’ managed to do in 1996, the election year”.

 

 

 

 

4. “If you pay, you’re the best. Otherwise, you’ll be IN MEDIA SCANDALS”

(page 10 in the newspaper)

Journalists blame unorthodox funding for the existence of more newspapers than the market can bear

 

Most owners of the local media say the press is not a profitable business, that newspapers are hard to support independently. However, the number of publications keeps growing and no newspaper has gone bankrupt so far.

Many owners say local newspapers do nothing that eat their money. While the leader of a local market in a city may live on its circulation, the others produce very little if any money. Their sources of income remain unknown most of the time. 10% of the 100 local and regional newspapers have their circulation audited independently.
In 1990, when everybody was eating politics with bread and butter, Zoltan Kovacs bet his chance on the Timisoara-based "Agenda" weekly by sending political news to the bottom of the page. The paper focused on people stories, useful information for the every day living and less politics. The recipe was successful, as "Agenda" became the best-selling local newspaper in the country, with a circulation of over 80,000 sold copies. Thus, "Agenda" manages to attract most advertising on the market, but this does not mean fabulous incomes, as – says Nicoleta Popescu, first deputy editor-in-chief – “you cannot make a fortune out of the media ". Spending is huge because you have to bring something new every time and bring added value to the public, she continues. Investments in free supplements of the newspaper and the low price are essential for "Agenda" editors.
Second next is "Gazeta de Sud" from the region of Oltenia. It is a good investment, but the money goes for all the holding trust that also includes several radio stations, which dilutes the results, says editor-in-chief Adrian Voinea. Eduard Huidan, head of the "Gazeta de Transilvania" newspaper, adds his voice to the wave of complaints: “Spending for a newspaper that circulates in Brasov and neighbouring districts should be as high as 15 billion lei annually, but, for now, we have to manage with some two thirds of the needed money ".
A newspaper like "Monitorului de Brasov" (tabloid format, 16 pages), spends at least 1 billion  lei monthly for a circulation of 7,000. A large-format daily like “Desteptarea” would need monthly costs of over 4.6 billion lei. However, advertising may only make up for two billion lei for the whole "Desteptarea" trust (radio and television), says manager Tudorel Ion. He says part of the income results from connected activities, but in the end losses are still there. While "Desteptarea" is subsidized for political reasons, there are publications forced to play other cards. The book says a newspaper should live on advertising, but that is rare in the case of Romanian local media. "80% of the advertising money is distributed through Bucharest-based agencies and they do not take into account but the leader of the market ", says Ovidiu Fodor, image consultant for "Buna ziua, Brasov", a lower circulation newspaper. Advertising agencies have clear rules – they cannot work with publications without certified circulations. Of the 100 and more local newspapers, only 10% have audited circulation, according to the Romanian Circulation Audit Office (BRAT), the only such institution in Romania. The lack of audit sends away potential investors who cannot find the basic instrument to evaluate the efficiency of advertising.
The fight for money has revealed unorthodox practices. Recently, the International Advertising Association accused part of the Romanian media of blackmailing international companies with attacks on their image. The issue got into the pages of "Financial Times", which quotes investors facing such situations.
The distribution of advertising budgets was repeatedly the focus of the Media Monitoring Agency (AMP), according to which "some 10-15% of the advertising in newspapers is fake”, resulting from a “corrupt relation between the press and advertising ". AMP head Mircea Toma explains: "When an advertising campaign is launched and three newspapers are avoided, some of these put pressure and use blackmail techniques or political influence in order to obtain contracts ".
There’s also a practice of paid advertising that does not get published. The newspaper receives money from business people willing to support it but who insist that the advertising be not published. The explanation is related to the political context. Usually, such help goes for newspapers that criticize local authorities and the respective businessmen do not want to see themselves associated with a newspaper against the mainstream, while willing to support it, says journalist Andi Lazescu.
Additionally, if there is a publication close to the local power in the city, a local firm would advertise in both newspapers. If advertising goes for the independent journal only, the company risks financial raids or other surprises, says Alice Gheorghita, editor-in-chief at "Ziarul de Vrancea". Mihai Enciu, editor-in-chief for Slobozia-based "Gazeta de Sud" confirms: "I receive advertising from some, but I do not publish it because the district boss sees it and that’s wrong ".
As for how those newspapers unable to justify their existence with the circulation live, Enciu is quite short: "The boys suited themselves with some newspapers to make money. If you pay, you’re the best. Otherwise, they erase you!".

 

Newspaper Costs/month

Tabloid, 16 pages. coloured, circulation 7,000 – 1 billion lei

Large format, 24 pages, coloured, circ. 13,000, one-district distribution - 4-5 billion lei

Large format, 24 pages, coloured, circ. 20,000, three-district distribution – 10-15 billion lei


The first 6 local newspapers (BRAT audited)
86,000 circulation: "Agenda" weekly, Timisoara (total sales 80,000 copies), founder Zoltan Kovacs, journalist
31,000 circulation: "Gazeta de Sud" daily, Oltenia, run by Gh. Paunescu, a businessman close to SDP (total sales 30,000 copies)
12,600 circulation: "Clujeanul" weekly, published by Media Pro
(total sales 10,000 copies)
12,165 circulation: "Kronika" – Hungarian-language daily published by Kronika SA (total sales 10,500 copies)
11,400 circulation: "Transilvania Expres", Tipotex Brasov (total sales 10,100 copies.)

 

Quotation:

Mircea Toma, journalist, the head of the Media Monitoring Agency

“All local papers will have either indirect pressures (as attempts of blocking their advertising), or direct pressures, if they are trying to independently cover the local authorities and powerful businessmen affairs”.