2023-11-25 00:20:35
Photo: Pxfuel
The political party financing bill in Uruguay has sparked an intense debate, with one of the most controversial points being the allocation of propaganda minutes on television.
The discrepancy between the government coalition and the opposition focuses on whether or not there should be financial compensation for the channels for the minutes that will no longer be commercialized.
In the midst of this crossroads, the Association of Broadcasters of Uruguay warns of possible million-dollar damages for the channels in the event that the compensation proposed by some political sectors does not materialize. Rafael Inchausti, president of the union, estimates losses of up to US$25 million for the sector, highlighting the severity of the economic impact that the television industry could face.
According to Inchausti, the cost per minute of advertising is US$1,000, and each station will be forced to give up one hour of free space per day for 105 days.
This, say the traditional media, would translate into an alleged loss of approximately US$6 million for each private channel in Montevideo, added to an additional loss of US$5 million for the interior channels as a whole.
Aligned with the National Association of Broadcasters of Uruguay (Andebu), the coalition legislators in the Deputies commission argue in favor of compensation, maintaining that a payment should be established for the use of private property. Although the airwaves are considered public, they point out that, once assigned, they are part of private property.
Aligned with the National Association of Broadcasters of Uruguay (Andebu), the coalition legislators in the Deputies commission argue in favor of compensation, maintaining that a payment should be established for the use of private property. Although the airwaves are considered public, they point out that, once assigned, they are part of private property.
The white deputy Juan Martín Rodríguez recognizes the difficulty of finding the fair price of the consideration, but calls for action with “political will.” Rodríguez suggests that compensation could take the form of tax exemptions. The proposed formula involves taking as a reference the amount that State agencies paid for television advertising in the year prior to the internal elections.
Critical voices and objections: The perspective of the media regulation consultant
Despite the parliamentary debate, media regulation consultant Gustavo Gómez, former director of the National Directorate of Telecommunications and Audiovisual Communication Services, and one of the promoters of the media law approved during José Mujica’s government, raises serious concerns.
Gómez, who had already questioned the National Party’s objections to the initiative, maintains that the government has already benefited private channels with at least US$15 million during the current period, generating a panorama of concern and distrust in the sector.
“19 million more dollars for the 4th, 10th and 12th? They are now asking for US$6,300,000 for each channel in Montevideo as ‘compensation’ for free electoral advertising. The government has already benefited them with at least US$5 million. More official advertising, Internet licenses, etc.,” said Gustavo Gómez.
The head of the Latin American Observatory for Regulation, Media and Convergence (Observacom) addressed the allocation of approximately 80 million pesos for private television channels. These funds were allocated to support the production of various programs, channeled through the Support Fund for Sustainable National Audiovisual Production.
Likewise, he emphasized that, during the period between 2020 and 2023, the government exempted television channels from the disbursement associated with the cost of renewing their licenses for the right to use the spectrum.
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