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Russian broadcasters to benefit from Lithuanian round-the-clock ban on alcohol advertising

Although Lithuanian TV and radio stations do not disclose their alcohol advertising revenues, it is estimated that these make up for a considerable bulk of broadcasters’ income.

According to some experts, the figure may reach up to 20 percent.

With stringent limitations on alcohol advertising already in force that prohibit alcohol advertising on local TV and radio stations before 11 pm, Lithuania looks ready to step up its efforts to wipe out alcohol advertisements from Lithuanian TV screens and radio waves.

This will happen if the current Alcohol Advertising Law, forbidding any form of alcohol advertising in Lithuanian media and on outdoor billboards will go into effect on 1 January 2012.

A Taliban-like piece of legislation

If passed, such a Taliban-like piece of legislation will be the most stringent law on alcohol advertising in the entire European Union. Out of 27 EU member states, nine -  France, Austria, Belgium, Czech Republic, Denmark, Luxemburg, the Netherlands, Germany and the UK - do not apply any restrictions on alcohol advertising in the media, while others only limit advertisements for strong alcoholic beverages.

TV ad for Tauras beer Tauro Jubiliejinis

Lithuanian media laments that it is being muzzled by bitter and liberal media-hostile politicians, who mostly belong to the right-wing political spectrum.

Traditionally the strong Lithuanian Catholic Church has also openly been pushing for the round-the-clock alcohol advertising ban. Its level of lobbying has gone to such an extent that political analyst Darius Kuolys warns that “some vociferous Lithuanian ultra-right elements in conjunction with the powerful Church are radicalising the entire ruling Motherland-Christian Democrat Party.”

Competitive advantage for Russian broadcasters

So far the heads of Lithuanian TV and radio stations, as well as trendy websites (such as delfi.lt, lrytas.lt, alfa.lt), are criticising that the total ban of alcohol advertising will only impoverish national broadcasters, by forcing them to downsize their content and axe many social and civic-oriented programmes that do not attract advertising money.

Besides, broadcasters argue that Russian TV and radio stations airing in Lithuania would benefit from the ban, as they are not subject to Lithuanian laws.

“Obviously, the 24-hour alcohol advertising ban would affect us tremendously. I have no doubt that it would not reach its goal – to slash alcohol use – as drinking habits have been influenced not by media, but by other factors, such as the Soviet system, desperation over the murky economic outlook and tense social trends. The Lithuanian government is partly to be blamed for that, not the media,” says Giedrius Vasiliauskas, Financial Director at LNK television, the second largest TV network in Lithuania

Without elaborating on the share alcohol advertising makes up in LNK’s total revenues, Vasiliauskas says he is convinced that the ban will actually benefit Russian TV and radio broadcasters in Lithuania.

“Statistically, approximately 30 percent of TV and radio audiences tune frequently to Russian broadcasters available in Lithuania. No doubt, alcohol advertisers are aware of that. The 24-hour ban coupled with less high-quality programmes programmes due to lack of financing will lead many viewers and listeners to switch to the Russian channels, which, as a consequence, will attract the alcohol advertising money. Is that what our government wants?” wonders Vasiliauskas.

Ad for Russian Kremliovskaja Vodka

In targeting the Lithuanian speaking audience, some Russian television stations provide Lithuanian subtitles for more popular programmes, which would not be affected by the ban either.

“If the ban goes into effect from 2012, the Latvia-based Russian Pervyj Baltiskij channel, which is re-broadcasted in Lithuania and remains one of the most popular foreign language TV channels in Lithuania, will gain a considerable competitive advantage,” points out Andrius Romanovskis, a representative of Lithuania’s Radio and Television Association.

“Obviously, the competetive advantage would breach Lithuanian anti-monopoly laws,” Romanovskis says.

Lithuanian commercial TV channels are scrambling to get around the hurdle and are considering registration in a foreign country, including Latvia, as one of the possible options.

“If this happens, Lithuanian TV channels will pay taxes in their country of registration and will be able to broadcast alcohol advertisements to the Lithuanian audience. Lithuanian law enforcement authorities will not be able to do anything about it, since the EU’s Audiovisual Media Service Directive allows a broadcaster to be registered in another EU country and broadcast from there,” Romanovskis explains.

The ban, many argue, would also endanger support for Lithuanian sports, since, in accordance with the Alcohol Advertising Law, a substantial part of the revenues derived from alcohol advertising help to fill the coffers of Lithuania’s sport federations.

What’s more, industry insiders warn, the ban will not succeed in wiping out alcohol advertising, as the ban is not applied to websites registered abroad either.

“Alcohol advertising will not just fade away,” asserts Aiste Zilinskiene, chairwoman of Lithuania’s Internet Media Association. “It will move to internet sites registered abroad and it will also be empowered by trendy social networks like Facebook. It is easier for an internet site than a TV network to register abroad. Undoubtedly, some Lithuanian internet sites, facing the severe consequences of the ban, will do just that,”

National producers of alcoholic beverages, concerned about the murky prospects for their business, are warning that they may be forced to lay off workers before 2012.

“If wearing a T-shirt with the name and logo of a beer producer will be seen as an infringement of the law after 2012, there is no sense in investing in the brand and in the local market,” notes Saulius Galadauskas, head of Lithuania’s Beer Producers Guild.

“I can just hope that rationality and common sense will prevail,” says Dainius Radzevicius, chairman of Lithuania’s Journalist Union

Dainius Radzevicius, chairman of Lithuania’s Journalist Union, calls the law “preposterous”.

“We traditionally tend to tackle problems in Lithuania by simply adopting bans. It is a pity that instead of educating people and raising public awareness on the threats of excessive alcohol consumption, our legislators opt for bans, which prove to not be working in Lithuania,” Radzevicius says.

If the law is not revised, Radzevicius warns, TV channels will have to discontinue many socially and civic-oriented news programmes that do not generate money. “Besides, some really professional journalists will be sacked. It is ridiculous to speak about a ban that suits more an Islamic, not an EU country,” he says.

Radzevicius argues that alcohol is a legal product in the European Union and Lithuania. “How can an EU state ban a legal commodity?” Radzevicius cannot grasp.

A “lethal punch” to Lithuanian media

In the meantime, some sober Seimas (Lithuanian Parliament) legislators, cautioning about the adverse consequences of the ban, are revving up their efforts to keep the current Alcohol Advertising Law as it is until 2012 and beyond - allowing alcohol advertising on local TV and radio stations after 11 pm.

“We will not achieve anything by banning. Smuggling cigarettes is banned; however, plenty of people smuggle them. If we adopt the 24-hour alcohol advertising ban, we will throw a lethal punch to our media. Obviously, Russian news and entertainment channels will be the ones to rejoice over our hypocritical morality,” says parliament member Kestutis Dauksys.

A few Lithuanian MPs have already registered amendments to the law, demanding an overturn.

It is unclear yet when parliamentary deliberations on the matter will take place.

Certainly, the battle over the much-disputed law will be fierce, as the ruling Motherland-Christian Democrat Party is prepared to involve the powerful Lithuanian Catholic Church in the fight.

“I can just hope that rationality and common sense will prevail,” Radzevicius, the chairman of Lithuania’s Journalist Union, sighs.

 

Tags: 24hour alcohol advertising ban, advertising revenues, alcohol advertising, european union, legislation, lithuania, lithuanian broadcasters, lithuanian government, lithuanias journalist union, media, russian broadcasters,

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