Ministry of Finance to allocate $ 38,5 million to unprofitable Channel One for content production

Ministry of Finance to allocate $ 38,5 million to unprofitable Channel One for content production

Almost $ 415.000 will be allocated additionally as compensation for the costs of broadcasting the Main Naval Parade.

Pervy Kanal JSC (Channel One) will receive 2.5 billion rubles ($ 38,5 million) as a compensation for the costs associated with “producing and acquiring content, filling the TV air with it and providing measures to bring it to television viewers,” the draft amendment to the law “On the federal budget for 2019 year and planning period of 2020 and 2021” reads. The television channel will receive another 268.5 million rubles ($ 415.000) for broadcasting the Main Naval Parade in St. Petersburg.

For the signal distribution in cities with a population of less than 100.000 people, the Channel One received 1.3 billion rubles ($ 20 million) from the state budget in 2019. NTV, Channel Five, Karusel, TV Center and Match TV also received similar compensations. With the Channel One, the total amount of the compensations amounted to 7.1 billion ($ 110 milliion) RBC reports.

According to the newspaper, since 2015, the advertising revenue of Channel One stopped growing, and at the end of 2017, the channel received 3 billion rubles ($ 46,3 million) for content production. In the same year, the channel's loss amounted to 3.5 billion rubles ($ 54 million).

The state owns a 51% share in the joint-stock company: 38.9% belongs to the Federal Property Management Agency, 9.1% to the FSUE ITAR-TASS, 3% to the FSUE Television Technical Center Ostankino. Another 29%, beginning from the summer of 2018, belongs to the National Media Group, and 20% – to VTB.

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