Andrew Podshipkov, CEO, 112 Team, talks to Georgi R. Chakarov about the recent refusal to change the license of 112 Ukraine which may effectively mean dropping the news format of the channel. The news net is currently Ukraine’s msot watched news broadcaster with a 1.93% share in the 18+ Urban demo (January-May 2015).

CEETV: Mr. Podpishkov, last week the National Council on TV and Radio Broadcasting refused to change the license of 112 Ukraine. How do you explain this decision?

AP: It’s new evidence that the National Council does not function within its legal framework and is an instrument of pressure of the authorities. We plan to register the request again. The National Council has no legitimate reasons to refuse. The recent decisions made by the National Council is an evidence of the directed campaign against our TV channel and the pressure on our editorial policy, the main principal of which - objectivity allowed 112 Ukraine to become the number one among Ukrainian informational channels, including 5 Channel that is owned by our President.
CEETV: What is your editorial policy as regards the conflict in Eastern Ukraine and the political developments in Ukraine in general?

Our editorial policy is based on deliberate, impartial and true coverage of different points of view. We show all possible points of view on current events and this is a viewer who makes his own conclusions and judgments.

CEETV: You have been under heavy political pressure and have received numerous warnings from the broadcasting regulator. You channel was also involved in the scandal with Shuster Live over Russian propaganda. Just how hard is it to own a news channel in Ukraine right now?

We are always under pressure because pure facts and fair coverage of events would never be equally acceptable and favorable for every part of society and any political force. It has been challenging and difficult to be the owner of fair news channel in the country where one of the fundamentals of democracy - freedom of speech - is neglected.

Recently, the situation has intensified. In fact, in Ukraine a news channel is perceived as a powerful tool to influence people’s opinion and the ownership of such mass media as our’s is a titbit. Sadly, it is a regular thing to acquire any business in Ukraine by force or using political influence. This situation we have to confront now. I want not only to protect 112 from seizure, but to break this ‘rule’ and prove that Ukraine is really directing to European standards. This is the very topic of discussion that I initiated in European Parliament. It’s obvious that the situation with the freedom of speech in Ukraine should be changed, and the corresponding resolution already is planned to be made by European Parliament.

CEETV: There have also been a number of rumors and speculations that you are selling 112. What is the truth?

I’m a businessman, and my decisions are based on the business opportunities. I receive offers to sell the TV-channel but none of them are competitive.

CEETV: You have created Ukraine’s most watched news channel. Tell us how did you achieve this?

AP: We launched 112 Ukraine within 4 months. The signal was uplinked to a satellite on August 24, 2013. Three months later, after numerous tests and try-outs, we put on air first news block and the channel started broadcasting live. Such an efficient channel launch has been achieved thanks to our proactive and professional team: Yuriy Budiak, Yuriy Ivanov and Mykola Korchaga. We launched the news channel of a new generation. This is actually a new format of news television, combining traditional and innovative elements of TV industry with progressive Internet technologies. We chose the risky path of innovative approach and now 112 Ukraine is the leader among Ukrainian news broadcasters. This result has been obtained despite the fact that our competitors have bigger audience coverage, longer experience on the market, more people employed and what is the most important their expenses are much higher.

CEETV: You claim that you have developed a unique format and know-how for a news channel. What are the main features of your model for news broadcasting?

AP: First of all we are much faster than our competitors – breaking news goes live 3 minutes after its subject happens. While pre-scheduled news blocks are aired every hour, we put on air current news once it appears. Our schedule is very flexible and we broadcast live 17 hours per day. Live and fast coverage of breaking news - this is what a viewer all over the world expects from news television today. Thus our model of news channel is very successful in Ukraine and I am sure it will have the same effect in any country in the world. No doubt it could be implemented in other countries.

CEETV:You operate both on TV and online and yet you are pretty cost-effective. Is it true that one minute of broadcast on 112 costs $20? How is that possible? How did you come up with the idea for the channel?

AP: While visiting one of the international content markets, the wild idea came up: to develop not format of content (program), but a format of an innovative news channel. We elaborated this idea step by step, and look what we have now. Our innovative live broadcasting model is much cheaper than one used by ‘traditional’ news channels. Our own content production approach plus modern and cost-efficient studio complex enables us to broadcast both in HD and SD resolutions for approximately $20 (including overheads) per minute of air and according to international journalistic standards.

112 Ukraine broadcasts live 17 hours per day which is at the same level with such market giants as Deutsche Welle (Germany) broadcasting live for 12 hours per day, NHK World (Japan) with 12 hours, CNN (USA) and BBC World News with 20 hours each. But the budget we spend could not be even compared to the expenses of the above mentioned channels, we spend dramatically less whereas not losing in quality of news coverage and production.

This is how we cut down the costs: we abandon traditional expensive approaches of news broadcasting (OB Vans, UpLink and ‘news bureaus’) in favor of innovative news delivery and transmitting models (using technical innovations, internet, other modern ways of communication, ‘citizen reporters’ involvement, etc.). Applying our know-how we manage to keep content production quality at a very high level, and simultaneously we put breaking news to live air very quickly (in three minutes after news happens). As a result, the most recent news is delivered to a viewer at the moment it occurs with minimal initial investments and operational expenses. Wise innovative management, rational use of financial and human resources, technological and technical innovations, ergonomics and optimization of other resources guarantee both high viewing figures and low cost of minute of live air.

CEETV: What’s the reason for the huge success of your channel?

AP: Efficient production and managerial approach, prompt delivery of breaking news, extremely mobile camera crews and correspondents and flexible programming are the components of our success. We broadcast news from the place it happens in any part or the country or all over the world, free of judgments or manipulations, just pure facts. Viewers choose our channel because we are fair in news coverage.

CEETV: What are your plans for 112?

Today 112 Ukraine is effective and innovative know-how for news television business, which could be successfully implemented beyond the Ukrainian borders. Based on our expertise we are launching consulting project - 112 Team. Talented managers behind 112 Ukraine are ready to implement our know-how for news channel launch and run in any country of the world.