Cable networks can be supplemented with new foreign channels
The previous two years have substantially changed the TV and radio landscape of Ukraine. In particular, the cable networks got shorn of a number of Russian channels, but new national satellite broadcasters and channels from the other countries have come instead. Considering these processes, many foreign companies express their intentions to enter the cable market of our country and become accessible for the Ukrainian viewers.
The Regulatory Authority supports copyrights holders and distributers in their efforts to diversify the thematic content of the Ukrainian cable networks with a variety of interesting programmes that meet the national and European legislative requirements in the media area. Therefore, proposals that the National Council receives from the above companies are considered in a prompt manner and the responsible Regulator’s experts provide all the required consultative support.
Background information:
Programme service providers that are the licensees of the National Council may transmit exceptionally those foreign programmes that upon the decisions of the National Council are included into the List of foreign programmes content of which meets requirements of the European Convention on Transfrontier Television and the legislation of Ukraine.
According to paragraph two of Article 42 of the Law of Ukraine “On Television and Radio Broadcasting” an economic entity that is being under the jurisdiction of Ukraine, aims to exercise retransmission of programmes and has obtained a relevant permit from the copyright holder (producer), that is not under the jurisdiction of any EU Member-State or a state that has ratified the European Convention on Transfrontier Television, has the right to exercise programmes retransmission only subject to the programmes content conformity with the requirements of the legislation of Ukraine, of the European Convention on Transfrontier Television and upon their inclusion into the List of programmes that are retransmitted, upon a decision of the National Council of Television and Radio Broadcasting of Ukraine.
After being included into the above List the TV channel for its further entrance into the cable networks of Ukraine needs to set up economic and contractual relations directly with programme service providers on a direct basis or through an intermediary that will present the channel’s interests in the territory of Ukraine.
We would like to point out that the legislation of Ukraine contains certain limitations related to foreign equity participation in the shareholders’ equity of TV and radio organisations, founders (owners) of TV and radio organisations and their statutory documentation. According to the provisions of paragraph two of Article 12 of the Law of Ukraine “On Television and Radio Broadcasting” it is forbidden to establish or participate in TV and radio organisations or programme service providers companies in Ukraine:
– for economic entities and natural entities-entrepreneurs that are registered in the offshore zones the list of which is approved by the Cabinet of Ministers of Ukraine, as well as for persons without citizenship;
– for natural and economic entities that are residents of a country that is recognized as an aggressor-state or an occupant-state by the Verkhovna Rada of Ukraine, as well as for economic entities which stakeholders at any level of a chain of corporate rights ownership of a TV or radio company and final beneficiaries of which are such as above economic or natural entities.
Moreover, according to paragraph three of the mentioned Article participation of foreign natural and/or economic entities in the shareholders’ equity of TV and radio organisations is regulated by the Economic Code of Ukraine.
