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TV Prices in Slovakia: SOZA Fee Hike Sparks Operator Concerns

by Michael Brown - Business Editor
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Original article from 10:42 was supplemented with a statement from SOZA.

The Slovak Cable Television Association (SAKT) is warning of potential price increases for television packages in Slovakia. The anticipated increases stem from repeated fee hikes by the Slovak Authors’ Collective (SOZA) for the use of musical works. According to the association, these increased SOZA fees would be passed on to consumers through higher prices for television services.

The association includes operators Telekom, Digi TV, UPC, Canal+ (Skylink and freeSAT), Orange, Antik, 4ka, Slovanet, and Satro. Collectively, they represent more than 1.3 million television subscribers in Slovakia.

“We are outraged by the actions being planned by the Slovak Authors’ Collective. All customers will ultimately pay for this unjustified and significant increase in fees. Our goal is to retain prices affordable for Slovak households, but we cannot achieve this without a reasonable agreement,” said Vlastimil Lakatoš, President of SAKT.

Significant Fee Increases

The association of operators argues that SOZA has consistently increased fees at an unreasonable rate, and that the terms do not reflect the actual proportion of musical works in the overall value of audiovisual content.

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SOZA Rejects 40% Increase Offer

The operators’ association states that SOZA has consistently increased fees beyond a reasonable level, and that the conditions do not reflect the actual contribution of musical works to the overall value of audiovisual content.

TV packages may become more expensive for operators in SR.

TV packages may become more expensive for operators in SR. Source: istock

SOZA: Operators are Misleading

Updated at 5:58 PM: The Slovak Authors’ Collective (SOZA) states that this is a false campaign by the association of operators. According to SOZA, the fee schedule only includes a 4% inflation adjustment compared to the previous year.

“Although, this increase does not directly impact an increase in TV packages, as presented by SAKT. SOZA and SAKT have been in a long-standing legal dispute since 2020 regarding the appropriate fee for retransmission of their musical works. This fee for domestic and foreign authors has not been increased by SAKT despite numerous promises for almost 15 years,” SOZA states.

SOZA further states that despite not receiving higher fees from operators, they regularly increase prices for customers for the services provided. The association is reportedly seeking a reduction in fees for authors of up to 67 percent in court, which the Municipal Court in Bratislava rejected. SOZA too states that operators in the Czech Republic pay 30 percent higher fees and do not have a problem with it.

“We must consider the statements of service providers rejecting any gradual adjustments to fees for artists as cynical. SOZA paid royalties for the broadcasting of musical works to 70,458 authors from around the world last year. We assume that TV operators do not pay their employees the same wages as they did 15 years ago,” said Ľubomír Burgr, Chairman of the SOZA Board.

Customers Pay

Similar disputes between operators and rights holders or broadcasters frequently occur in the Slovak market. Operator associations have repeatedly pointed to unreasonable conditions or price demands in the past, but ultimately accepted them.

This was the case, for example, with the significant increase in fees for Markíza and JOJ, the removal of many Czech channels from the offer, and restrictions on the archive, where viewers can no longer skip commercials.

Operators publicly protested the conditions, but after negotiations, they accepted them, and the increased costs were subsequently reflected in service prices.

It is therefore not unlikely that the current dispute with SOZA will also end in a compromise, which will again be felt by end customers. If fees increase, operators will likely pass them on to the prices of television packages.

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