Free-to-air TV stations, which have so far been the domain of mainly local TV groups on the Czech market, have recently come into the crosshairs of multinational groups such as AMC Networks or Warner Bros. Discovery. AMC Networks entered the free-to-air TV market last year when it launched Spektrum Home, a station focused on housing, home and garden. Warner Bros. Discovery then entered the same segment this year with Warner TV, which offers Czech viewers movies and series produced by Warner Bros. Why are multinational TV groups, which have so far only provided pay TV stations on the Czech market, entering the free-to-air market? What do these TV channels bring to them? And what is their future on the Czech TV market?
The transition to DVB-T2 and the conclusions of the World Radiocommunication Conference WRC-23. This is the short answer to the question why multinational groups are now entering the free-to-air TV market. The transition to DVB-T2 has created space for new free-to-air channels, which both players have taken advantage of. The World Radiocommunication Conference then brought (not only) a guarantee to these players that terrestrial broadcasting will continue without restrictions until at least 2031.
The goal: to reach the entire Czech TV population
The second question is what global companies like AMC Networks or Warner Bros. Discovery free-to-air TV stations bring. Both players have been present on the Czech market for many years. AMC Networks operates a number of pay TV stations, only six of them are included in the official TV viewership measurement (AMC, Film+, Minimax, Spektrum, Sport 2, TV Paprika), in the case of Warner Bros. Discovery, we are talking about almost twenty pay TV stations, of which three are included in the official measurement of TV viewership (Discovery Channel, Eurosport 1, TLC).
Both players have been able to reach about half of the Czech TV population with their pay TV stations so far - pay TV is specifically used by 57% of Czech TV viewers aged 15-69 according to the latest results of our Atmedia index research. The other half of the Czech TV population, which watches only free-to-air stations, has not yet been able to communicate with these players. This is one of the reasons why AMC Networks and Warner Bros. Discovery have launched free-to-air TV stations - it allows them to reach the entire Czech TV population. And not only that. They allow them to reach Czech viewers in a new and more personalized way. While pay TV stations often have identical content for several markets at the same time, free-to-air TV stations were created specifically to reach the Czech viewer - the content on these stations is created based on the demands of the TV viewer in our cultural and social conditions. Thus, there is no lack of carefully selected content and production of local programmes.
Freely distributed TV (not only) as a marketing tool
The second reason why multinational TV groups have launched free-to-air TV stations is purely business-related. It simply makes sense for them. First - companies like AMC Networks or Warner. Bros Discovery have an extensive library of existing content that they can cleverly leverage on another platform. Second - free-to-air TV stations work as a great marketing tool. Through them, both players can promote and support their other products - whether pay TV stations or paid VoD services, which have been very popular with Czech viewers in recent years. The streaming service Max is a proof of that. And thirdly, with new free-to-air TV stations comes a bigger market share.
The future of new TV stations
And what is the future of new free-to-air TV stations on the Czech TV market? Do they have a chance to succeed? The first parameter is certainly the share of viewership. It must reach such numbers that the revenues from TV advertising cover at least the costs of broadcasting in digital multiplexes. Even though Spektrum Home and Warner TV have been on the Czech market for a relatively short time, both TV channels have already managed to find their loyal audience. However, the answer to the question of the future of both TV channels is much more complex and the situation needs to be seen from a broader perspective. Spectrum Home and Warner TV are not two separate products, on the contrary, they are part of a whole portfolio of global players who operate on the Czech market with a range of other products - whether we are talking about pay TV stations or paid VoD services. This is how both players view the future of free-to-air TV stations - Spektrum Home and Warner TV are another piece in the puzzle of the whole ecosystem consisting of a number of products. They are a piece that has been missing from this ecosystem. It can strengthen it overall and bring both players a stronger position on the Czech market.
Source: mediaguru.cz
