The Impact of Media Concentration on Professional ... - OSCE

Financial BackgroundDespite the presence <strong>of</strong> foreign publishers, most <strong>of</strong> thepolitical newspapers, including both daily and weekly publications,have produced a loss since the political transformation.Only a few titles have been pr<strong>of</strong>itable, the rest <strong>of</strong>them relied heavily on ad hoc government subsidies andsupport from the Soros Foundation. However, unlike theLatin and Scandinavian countries <strong>of</strong> Western Europe, Hungaryhas no press subsidies system to financially supportloss-making newspapers. As a result, subsidies have beengranted on the basis <strong>of</strong> political loyalties, which have mademany newspapers the loudspeakers <strong>of</strong> the government <strong>of</strong>the day. Because <strong>of</strong> the poor financial situation <strong>of</strong> the press,little is spent on investigative journalism and most journalistsare underpaid. It is to be noted, however, that theaverage journalist is slightly better paid than the averageintellectual in Hungary.Because <strong>of</strong> the peculiarities <strong>of</strong> the Hungarian tax system,many journalists work without a regular contract. This makesjournalists vulnerable when in conflict with the publishers.Moreover, the lack <strong>of</strong> work contracts makes it extremely difficultto have journalists observe codes <strong>of</strong> ethics.Political PressureLike in most other countries in East Central Europe, postcommunistpolitical elites, left and right alike, have exertedpressure on the press and media – especially on public serviceradio and television – in an attempt to change editorialcontent and to have their policies propagated. This conflictover who controls the media and who sets the publicagenda has generally been described as the “media war”.One <strong>of</strong> the major reasons for the persistence <strong>of</strong> politicalefforts to control the media after the political transformationis that the Radio and Television Act was passed relativelylate (as compared with other countries <strong>of</strong> East CentralEurope). Moreover, the law is <strong>of</strong> relatively poor design,especially with regard to the supervision and financing <strong>of</strong>the public service media.138 THE IMPACT OF MEDIA CONCENTRATION ON PROFESSIONAL JOURNALISM