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TO WHAT LEADS THE BAN OF ADVERTISING ON PAY TV. INDUSTRY’S REPRESENTATIVES SPEAK ABOUT AMENDMENTS TO THE LAW ABOUT ADVERTISING

State Duma made an amendment to the Law about Advertising that will seriously change the market of cable TV in Russia.

 

According to the amendments, it is not possible to use advertising in TV programs, TV shows on paid TV channels. To such category, do not belong Russian free channels, and channels that are being broadcasted via limited radio band resource - terrestrial broadcasting. Besides, channels that have license on terrestrial broadcast are not being regulated by these amendments: VGTRK (Russia 1, Russia 2, Russia K, Russia 24), First, NTV, 5 Channel, TV Center, Karusel, STS, Pyatnica, Ren TV etc.

 

The number of pay TV increased for 11% for a year and reached 34,6 mln. But cable TV almost stopped its development in 2013. One of the negative factors – is low price on the service. As of 2014, J`son & Partners Consulting forecasted the decrease in growth market rates of pay TV in Russia due to the increasing competition from video services in Internet