Due to the Covid-19 crisis the Ministry of Digital Development, Communications and Mass Media of the Russian Federation offered radio and television broadcasters the opportunity to reduce the power of their transmitters and to turn them off at night (from 24.00 to 6.00) in order to save energy. This measure is in place from 24th April to 31st December, 2020. However, very few radio stations have taken this up. They are afraid that reducing power and coverage area could cause a drop in the numbers of listeners and commercials. Advertising is already going very badly. Advertising spots have dropped by 70% and 80% in many areas of the country and the ministry believes that broadcasters’ budgets will be more than halved this year (their revenues will be down by about 8 billion rubles)
Subsidies and cuts to rent and royalties
In order to compensate for financial losses, radio stations are asking for funding as well as a lowering of RTRS fees (Russian Television and Radio Broadcasting Network, the company that manages transmitters), which are considered two or three times higher than those of private companies. They would also appreciate a respite with a lowering of royalties for music rights. The Deputy Minister of Digital Development, Communications and Mass Media of the Russian Federation, Alexey Volin, declared that their request for subsidies was unrealistic and stated that the measures currently in place were sufficient. However, he was more open on the subject of lowering royalties which he declared was a more reasonable request.