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	<title>Asociaţia Pentru Spaţiul Media Transilvan Archives - Átlátszó Erdély</title>
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	<title>Asociaţia Pentru Spaţiul Media Transilvan Archives - Átlátszó Erdély</title>
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		<title>Two-a-penny: 5 million euro per year for the Hungarian language media trust in Transylvania</title>
		<link>https://atlatszo.ro/en/english/two-a-penny-5-million-euro-per-year-for-the-hungarian-language-media-trust-in-transylvania/</link>
		
		<dc:creator><![CDATA[Sipos Zoltán]]></dc:creator>
		<pubDate>Mon, 02 Aug 2021 09:48:45 +0000</pubDate>
				<category><![CDATA[English]]></category>
		<category><![CDATA[Agotika Invest SRL]]></category>
		<category><![CDATA[Asociaţia Pentru Spaţiul Media Transilvan]]></category>
		<category><![CDATA[Association for Transylvanian Media Space]]></category>
		<category><![CDATA[Bethlen Gábor Fund]]></category>
		<category><![CDATA[Hungarian media in Transylvania]]></category>
		<category><![CDATA[Kelet Info SRL]]></category>
		<category><![CDATA[Lajos Simicska]]></category>
		<category><![CDATA[László Árpád Mohácsi]]></category>
		<category><![CDATA[Magyar Médiaszolgáltatást Támogató Központ Nonprofit Kft.]]></category>
		<category><![CDATA[Prima Press SRL]]></category>
		<category><![CDATA[Szilárd Demeter]]></category>
		<category><![CDATA[Transversum SRL]]></category>
		<category><![CDATA[Udvarhelyi Híradó SRL]]></category>
		<category><![CDATA[Viktor Orbán]]></category>
		<guid isPermaLink="false">http://dev2.atlatszo.exot.hu/?p=33506</guid>

					<description><![CDATA[<p>Record breaking funding from the Hungarian government: the Association for Transylvanian Media Space received 20 million EUR over a few years. However their reports are vague when it comes to audiences and circulation, the budgets include six-figure items for “other services”, while the promised innovations have never materialized. In the past three-and-a-half years, until June [&#8230;]</p>
<p>The post <a href="https://atlatszo.ro/en/english/two-a-penny-5-million-euro-per-year-for-the-hungarian-language-media-trust-in-transylvania/">Two-a-penny: 5 million euro per year for the Hungarian language media trust in Transylvania</a> appeared first on <a href="https://atlatszo.ro/en/">Átlátszó Erdély</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><b>Record breaking funding from the Hungarian government: the Association for Transylvanian Media Space received 20 million EUR over a few years. However their reports are vague when it comes to audiences and circulation, the budgets include six-figure items for “other services”, while the promised innovations have never materialized.</b><span id="more-33506"></span></p>
<p>In the past three-and-a-half years, until June 2021, the Association for Transylvanian Media Space (official name: Asociația pentru Spațiul Media Transilvan/Erdélyi Médiatér Egyesület, ATMS) received 7.45 billion HUF (about 20 million EUR) in grants from the Hungarian government. With this funding the association, unknown until recently, has become by far the largest Hungarian-language media trust in Transylvania; it would be easier to count the media channels which are not part of the holding yet.</p>
<p>A few comparisons are instructive to grasp the true weight of this sum. For instance the 1,2 million Hungarian minority community gets about the same amount annually from the public budget: 5-6 million EUR (this amount represents the budget of the main Hungarian political party, the DAHR).</p>
<p>ATMS’s financial balance shows revenues of 18.2 mil RON in 2020 (3.6 mil EUR), which puts it on a par with the large players on the Romanian media market, serving an audience 14 times bigger than the local Hungarian community.</p>
<p><script id="infogram_0_a52db4f8-150d-482a-95db-72cf05002f39" title="Romanian media companies vs. ATMS" src="https://e.infogram.com/js/dist/embed.js?QGS" type="text/javascript"></script></p>
<p>In spite of this generous funding, however, there is no trace of the innovations and developments promised at the beginning of 2018, such as “the Transylvanian Hungarian web of the XXI century, Transylvania 3.0”. The number of employees and their salaries have not risen noticeably; in fact the latter dropped by 25% for a few months in 2020, due to the COVID crisis. The retail distribution operation of the group was closed and some local newspapers were merged into the regional daily Székelyhon.</p>
<p>Spectacular investments in digital were discussed for a number of years to take the Hungarian-language media in the XXI. century, but they are nowhere to be seen, if we don’t count <a href="https://www.youtube.com/channel/UCZx_aYjFIfVGlrzVt8aNH-g" target="_blank" rel="noopener">the YouTube channel</a> of Székelyhon.</p>
<blockquote><p>“This difficult period has slowed down the development but we are working on it. We will continue to expand and grow, and will not give up on these plans” said ATMS’s president László Árpád Mohácsi; his full comments are at the end of this article.</p></blockquote>
<h2><b>Collateral victims in the Orbán-Simicska war</b></h2>
<p>The story of this trust began in 2018 when Udvarhelyi Híradó SRL, a media company controlled by the Hungarian businessman Lajos Simicska, went bankrupt. Simicska had been for a long time the top oligarch of FIDESZ: former roommate of Viktor Orban and with an innate talent for deals, he was the person in charge with party finances.</p>
<p>But over time his influence in government grew so much that it became a challenge for Orbán. Things escalated into an open spat between the two men in 2015, after which the authorities blocked the access of Simicska’s companies to all public contracts and made him engage in forced divestments.</p>
<p>Udvarhelyi Híradó SRL was a victim in this conflict: Simicska did not want to finance it through the Foundation “Hungarian Media without Frontiers”, and the government too dropped the foundation from the funding list to stop the flow of money to Simicska. On top of that, there was poor management: a criminal complaint was filed against the CEO of Udvarhelyi Híradó following an independent audit.</p>
<h2><b>Schemes to save the newspapers in </b><b>Szeklerland</b></h2>
<p>The Budapest government did not allow the company to dismantle, though, as it was managing a number of dailies (regional newspaper Krónika, and the local newspapers Vásárhelyi Hírlap, Csíki Hírlap, Gyergyói Hírlap, Udvarhelyi Híradó), a weekly (Erdélyi Napló) and one of the most popular Hungarian news portals in Transylvania (<a href="https://szekelyhon.ro/" target="_blank" rel="noopener">szekelyhon.ro</a>).</p>
<p>Shrewd maneuvers took place at the end of 2017 and in 2018, planned by the “informal ambassador” of the media trust and the brain behind the deal: Szilárd Demeter, born in Szeklerland and former employee of a think tank close to the Hungarian government.</p>
<p>The first step was a financial injection of 1.45 bn HUF (4.5 mil EUR) into an obscure association, the Association for Transylvanian Media Space (ATMS), made on Dec 27th 2017. The second move took place on Jan 6th 2018: with capital at hand, ATMS bought 5% participation in a small company in Odorheiu Secuiesc, Prima Press SRL, which was managing Príma Rádió, owned by the businessman János László.</p>
<p>On Jan 8th Prima Press SRL hired over 160 employees of Udvarhelyi Híradó SRL, which was in bankruptcy. Finally, on Jan 12th 2018 János László sold his shares and ATMS became sole owner of the company.</p>
<h2><b>Illusions dispelled </b></h2>
<p>Who would have thought in 2013, when ATMS was registered, that in less than five years the non-profit would become the main player on the Hungarian-language media market in Transylvania? The initial goal of the association was modest: to publish the current affairs news and commentary portal Főtér.ro, with annual revenues of about 120,000 EUR, mainly grants coming from Hungary.</p>
<blockquote><p>“Our aim was to reflect a diversity of views, from left to right, and to encourage debate within the Hungarian community in Transylvania” said István Szakáts, a civic activist serving briefly as president of the association after it was established. He recalls that in its first application for funding Főtér.ro was described as a portal hosting balanced opinions, but soon after the right-wing views became prevalent, both online and in the association, Szakáts resigned.</p></blockquote>
<p>The next president was László Árpád Mohácsi, photographer and graphic artist, former staff member of MEP László Tőkés, a conservative politician and rival of UDMR; about the same time Szilárd Demeter had been Tőkés’ chief of staff.</p>
<p>Mohácsi had no particular experience as a journalist or media manager. He can be seen in Facebook pics together with Szilárd Demeter, activists from the Hungarian Popular Party and organizers of <i>Tusványos</i> (the annual political summer university held in Tuşnad Băi, Harghita county, where top leaders from Hungary usually visit and give speeches).</p>
<figure id="attachment_33476" aria-describedby="caption-attachment-33476" style="width: 885px" class="wp-caption alignnone"><img fetchpriority="high" decoding="async" class="size-large wp-image-33476" src="https://atlatszo-ro.b-cdn.net/wp-content/uploads/2021/07/demeter_mohacsi-1024x726.png" alt="Demeter Szilárd (előtérben) és Mohácsi Árpád (harmadik) Tusványoson 2018-ban. Fotó: Tusványos Facebook-oldala" width="885" height="627" srcset="https://atlatszo-ro.b-cdn.net/wp-content/uploads/2021/07/demeter_mohacsi-1024x726.png 1024w, https://atlatszo-ro.b-cdn.net/wp-content/uploads/2021/07/demeter_mohacsi-300x213.png 300w, https://atlatszo-ro.b-cdn.net/wp-content/uploads/2021/07/demeter_mohacsi.png 1200w" sizes="(max-width: 885px) 100vw, 885px" /><figcaption id="caption-attachment-33476" class="wp-caption-text">Szilárd Demeter (forefront) și Árpád Mohácsi (third from left) at the summer university Tusványos in 2018. Photo: Tusványos Facebook page</figcaption></figure>
<h2><b>A growing portfolio</b></h2>
<p>ATMS continued with the acquisitions after 2018. In spring 2021 <a href="https://www.punctul.ro/radio-ga-ga-are-noi-proprietari/" target="_blank" rel="noopener">it bought Radio GaGa from Târgu Mureş</a>, having among its owners the former UDMR senator György Frunda.</p>
<p>The main entity of the holding is Prima Press SRL, which employs most people (189) and owns most media brands. Smaller companies in ATMS’ portfolio are Agotika Invest SRL, the company behind Friss FM from Sfântu Gheorghe and Kelet Info SRL from Gheorgheni, owner of the license for Fény TV.</p>
<p>Other publications had been previously owned by the publishing house Varjúvár SRL, but when this went out of business the staff was moved over to ATMS. The management for the whole group is done by a company set up for this purpose, Transversum SRL, which also sells the advertising. In its turn Transversum SRL is owned just 80% by ATMS, while the rest of 20% belongs to a Hungarian company, Magyar Médiaszolgáltatást Támogató Központ Nonprofit Kft.</p>
<p>The 30-odd channels held in ATMS’ portfolio <a href="https://transversum.ro/hu/mediacsatornak.html" target="_blank" rel="noopener">are listed on Transversum’s website</a>, the centralized manager of publicity: newspapers and their web pages, radio stations, a job search portal, a women’s magazine, a cultural supplement, a local TV and even a teletext service.</p>
<p><script id="infogram_0_40d60fd5-032f-41c3-a7aa-21ed4fe142ca" title="Grants of ATMS" src="https://e.infogram.com/js/dist/embed.js?PTy" type="text/javascript"></script></p>
<h2><b>Advertising: 10% of revenues</b></h2>
<p>It is hard to guess how much of the total turnover of the group is independent from the Hungarian government. No data exists about print sales. The revenues from advertising of Transversum SRL were 2.2 mil RON in 2019. The following year the figure dropped to 1.6 mil, probably because of the pandemics, but this loss was partly compensated by the government anti-Covid subsidy: according to <a href="https://expertforum.ro/publicitate-pandemie/" target="_blank" rel="noopener">data from ExpertForum</a>, the companies from this trust received around 250,000 RON by the end of 2020.</p>
<p>These revenues of 1.8-2.2 mil RON represent about 10-15% of the holding’s turnover. This is important to notice because, when the whole arrangement was created, the promise was to gradually reduce the operating costs of the companies and make the holding commercially viable in the medium term. There is no sign of such development as yet.</p>
<p>Initially the association bought media channels close to the opposition to UDMR, but later the direction changed. Today the portfolio includes most of the local mass media not directly owned by UDMR.</p>
<h2><b>Opinions critical with the Hungarian government cannot be published</b></h2>
<p>While the Hungarian-language media space is apparently diverse, in fact the Hungarian public in Transylvania does not have much choice: they can opt for the ATMS channels mentioned above; or the ones financed by UDMR such as <a href="https://www.youtube.com/channel/UCS5t4xWMT6lIZ9tcPROUd5A" target="_blank" rel="noopener">Erdélyi Magyar Televízió</a> (Hungarian Transylvanian TV) and <a href="https://erdelyfm.ro/" target="_blank" rel="noopener">Erdély FM</a>, managed by the Jenő Janovics Foundation, and <a href="https://www.maszol.ro/" target="_blank" rel="noopener">maszol.ro</a>, published by Progress Foundation. There are also news programs in Hungarian language on the Romanian state TV and radio, where the staff there should be recruited solely on merit, but in reality the managers are appointed politically by UDMR.</p>
<p>Many people feared that so much money from Budapest would create a wave of centralized pro-Orban propaganda in Transylvania, as it happens in Hungary, but this is not the case.</p>
<p>Informal talks with insiders confirm that the marching orders refer not so much to what can be said – but to what <i>cannot</i> be said. No critical voice to the Hungarian government must be heard.</p>
<p>There were some articles critical of UDMR in the previous years, but even these have vanished lately, especially during the electoral campaigns. This is a clear indication of the good relationship between FIDESZ and UDMR these days – and a sign that ATMS’s acquisitions are also an effective instrument to discipline UDMR.</p>
<p>[irp posts=&#8221;32115&#8243; name=&#8221;Marriage of convenience sweetened with millions – how Fidesz persuaded the largest Hungarian party in Transylvania&#8221;]</p>
<p>“This holding was created with a clear purpose: to hold UDMR in check” said one of our sources, who added that the Romanian ethnic party would have a big problem if the whole media trust would turn hostile during the electoral campaign.</p>
<p>Another source, a politician from the opposition to UDMR, explained the logic behind the acquisitions: “it is better that we buy them all, rather than someone else”. (Our article about <a href="https://atlatszo.ro/en/english/marriage-of-convenience-sweetened-with-millions-how-fidesz-persuaded-the-largest-hungarian-party-in-transylvania/" target="_blank" rel="noopener">how the relation FIDESZ-UDMR has evolved over time, here</a>).</p>
<p>[irp posts=&#8221;26651&#8243; name=&#8221;Media funding record in Transylvania: a network of businesses, covered in mist&#8221;]</p>
<h2><b>It is not clear how many readers and followers these publications have</b></h2>
<p>Little is known about the idea to transform and modernize the media space in Transylvania, apart from the hint dropped by Szilárd Demeter in the interview where he promised “a Transylvanian Hungarian web of the XXI century, Transylvania 3.0”.</p>
<p>The first financing agreement of 1.45 bn HUF with the Ministry of Human Resources was quite unspecific. More recently the Bethlen Gábor Fund, which manages the grants, responded to our requestst for information and provided ATMS’ applications for funding and reports.</p>
<p>Even with these documents in hand it is still not easy to guess the number of users of the media channels in its portfolio: the annexes do not include verifiable data about the traffic and audiences.</p>
<p>What is more, some data are contradictory. For instance, the financing request of January 2019 says that “the public of the newspapers, portals and radio stations is over 300,000”; the one of June 2019 mentions that the online platforms of the printed newspapers have “hundreds of thousands of visitors”.</p>
<p>One year later, in April 2020, the same request reported that “70 communication channels (portals, Facebook etc) are connected with the media products of the group”, with a total monthly reach of 900,000 Hungarians from Transylvania. Later in the same document the number given is 400,000 people.</p>
<p><a href="https://drive.google.com/drive/folders/1JYvdOOX2_hTIsl693X_nPlNuY_RZ-foZ?usp=sharing" target="_blank" rel="noopener"><b>ATMS’s applications are available here (Google Drive link)</b></a></p>
<h2><b>Going up or down?</b></h2>
<p>A careful reading of the application increases the confusion: “Thanks to our diligent and well-organized activity, we managed to increase our readership despite the general downward trend of the market”. But a few pages on “securing the level of readership remains a further objective” and “even keeping the level of readership is a challenge, under the changing circumstances”.</p>
<p>The Bethlen Gábor Fund (BGA) grants subsidies of about 2 billion HUF per year based on applications which have just a few pages and not many details. It is not clear how audiences were measured for the online, print, radio stations, or teletext.</p>
<p>It is also a mystery how they managed to increase the numbers in just a little more than one year, from January 2019 until April 2020, and at the same time warn that securing the existing levels of audience is a challenge. Data is anyway hard to confirm as official figures on readership and listeners of radio stations do not exist.</p>
<h2><b>A lot of money for a modest traffic</b></h2>
<p>It is easier with the online platforms. According to <a href="https://datastudio.google.com/u/0/reporting/1saVfhAhQapC934BlkWOYh6Bha10WqNDf" target="_blank" rel="noopener">data published by Székelyhon</a>, the biggest portal of the media group, the number of users of the online platforms of the group (by Google Analytics standards) was around 600-900,000 per month in 2020. This corresponds with the one indicated in the financing application. BRAT, the independent media circulation auditor in Romania, <a href="https://www.brat.ro/sati/site/szekelyhon-ro/trafic-total/" target="_blank" rel="noopener">offers different numbers</a>, but the methodology may differ too.</p>
<p>In 2020 the online platforms of the group had 7.7 million visitors. It may seem a lot, but a closer look puts things in the right perspective: <a href="https://www.maszol.ro/" target="_blank" rel="noopener">maszol.ro</a>, the other large player on the online Hungarian media market in Transylvania, had 6.6 million users last year. This is managed by the Progress Foundation, established by UDMR, and in 2020 its budget was 240,000 EUR, i.e. just a fraction of the budget of the newspapers group Székelyhon.</p>
<h2><b>The print press will continue for just a few years </b></h2>
<p>The project attached to one of the funds requests indicates that a significant proportion of the printed media’s public cancelled their subscriptions in 2020. As a result, the association will reinforce its online presence in the future.</p>
<blockquote><p>“The printed media was severely impacted by the pandemics… We had to face the situation in which paper is perceived as an infection vector by the users-subscribers (…) A significant number of them gave it up for this reason (…) The next professional challenge for us is to make consumers of traditional media embrace the new technologies, so that we can reach them via online and mobile applications”.</p></blockquote>
<p>The plan goes on to describe a bleak picture for the future of the group’s print operation:</p>
<blockquote><p>“In the so-called transition period we will have to preserve the traditional channels (print). It is not advisable to stop printing overnight… The key question for the next period is how to transform the current printing content so that it preserves its function to shape and protect the identity of the community, irrespective of platform”.</p>
<p>“For the next 3-5 years we can still count on the mediating role of the print press, and the transition to alternative channels must be carefully planned. The long- and medium-term task is to consolidate the news portals belonging to the association (Székelyhon, Krónika, Liget, Nőileg etc.) and expand the access to them (mobile applications, social media).</p></blockquote>
<h2><b>A pillar of our survival</b></h2>
<p>Árpád Mohácsi, the author of this concept, thinks that “the continuation and functionality of the media group is a vital issue”, while “the challenges are high because of the media market in recession and the nationalism prevalent in the Romanian politics”. As a result “the media group is one of the pillars not only of the Hungarian-language news environment, but of the very survival of the Hungarian community in Transylvania”.</p>
<p>What is the money spent on? According to the budgets attached to the applications, ATMS uses a small portion of them for its own operational costs; the largest part goes to the companies and publications it owns, and into salaries. These costs amount to about 600-800 million HUF per year (1.7-2.2 million EUR). It does not follow clearly what other costs will be covered from the annual subsidy of 1.8 billion HUF (5 million EUR), increased to 2.2 billion HUF (6.1 million EUR) in the first half of 2021, apart from the salaries of the 220-250 employees (the group had 242 employees in 2020 according to official data) and the overheads.</p>
<h2><b>1 million euro for buying additional media channels</b></h2>
<p>Even this sketchy data available raises a few red flags: for example, in the 2019-2020 budget 58 million HUF (160,000 EUR) were allocated for “creating an IT program”; the following year another 40 million HUF (110,000 EUR) went for the same item.</p>
<p>270,000 EUR for software development looks suspect because many off-the-shelf applications exist, either free or very cheap to use, for editing and content organization, or business management. And looking at the media products, they don’t seem to require special software anyway.</p>
<p>While it is hard to imagine a more effective media portfolio for advertising purposes, still 30 million HUF (83.000 EUR) were budgeted in 2020-21 for advertising.</p>
<p>Another suspicious budget line for this period is the 350 million HUF (1 million EUR) for buying additional media channels. This raises eyebrows because, to our best knowledge, there is no media operation valued at 1 million euro which is not in ATMS’s portfolio already.</p>
<h2><b>“Other services”: the key to the mystery?</b></h2>
<p>The oddest thing is the “other services”: they amount to 285 million HUF (790.000 EUR) in the 2019-2020 budget and 200 million HUF (550,000 EUR) in the previous budget.</p>
<p>It is unlikely that they include specific direct costs for the media operations, like printing, consumables, protocol or per diems, because these are listed elsewhere.</p>
<p>“The investments and development costs are confidential information, we cannot disclose business secrets” said László Árpád Mohácsi when asked to comment on these budget lines.</p>
<p>According to ATMS’s president they permanently reinforce their community, work tirelessly to build the most modern cultural media business in Transylvania and permanently search for grants. “All along we are accountable to the donor for every penny spent, according to all relevant legislation, and pay taxes on time” he added.</p>
<h2><b>„We expand and grow”</b></h2>
<p>“The conditions on the media market are far from ideal. The change in consumer habits over the last years and the Covid crisis have an impact on everything, including in this sector. However in spite of everything we have obtained results of which we are rightfully proud.</p>
<p>We permanently expand, put out more content and of increased diversity from our own sources, on an increasing number of channels. The number of users is going up thanks to our diligent and solid work. Not only that we didn’t close our distribution retail operation, but we are expanding it to unprecedented levels.</p>
<p>During the pandemics we tried to save the jobs of all our colleagues from the group’s companies, to preserve them at all cost, because we knew that those who are laid off would face great difficulties in finding another job. This period has slowed down the development, but we work hard to restart the process. We continue to develop, expand and grow, we have not given up on these things”, says Mohácsi.</p>
<p><i>Photo on first page: Szilárd Demeter (left) and the president of the Association for Transylvanian Media Space, Árpád László Mohácsi. Source: Facebook</i></p>
<p><em>This report has been prepared with support from IRI&#8217;s <a href="https://www.iribeaconproject.org/" target="_blank" rel="noopener">Beacon Project</a>. The opinions expressed are solely those of the author and do not reflect those of IRI.</em></p>
<p>The post <a href="https://atlatszo.ro/en/english/two-a-penny-5-million-euro-per-year-for-the-hungarian-language-media-trust-in-transylvania/">Two-a-penny: 5 million euro per year for the Hungarian language media trust in Transylvania</a> appeared first on <a href="https://atlatszo.ro/en/">Átlátszó Erdély</a>.</p>
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		<item>
		<title>Media funding record in Transylvania: a network of businesses, covered in mist</title>
		<link>https://atlatszo.ro/en/important-en/media-funding-record-in-transylvania-a-network-of-businesses-covered-in-mist/</link>
		
		<dc:creator><![CDATA[Sipos Zoltán]]></dc:creator>
		<pubDate>Thu, 16 May 2019 16:35:40 +0000</pubDate>
				<category><![CDATA[Important]]></category>
		<category><![CDATA[Asociaţia Pentru Spaţiul Media Transilvan]]></category>
		<category><![CDATA[Csíki Hírlap]]></category>
		<category><![CDATA[Erdélyi Médiatér Association]]></category>
		<category><![CDATA[Erdélyi Napló]]></category>
		<category><![CDATA[Főtér.ro]]></category>
		<category><![CDATA[Gyergyói Hírlap]]></category>
		<category><![CDATA[krónika]]></category>
		<category><![CDATA[Magyar Médiaszolgáltatást Támogató Központ Nonprofit Ltd.]]></category>
		<category><![CDATA[média]]></category>
		<category><![CDATA[Ministry of Human Resources]]></category>
		<category><![CDATA[Prima Press Ltd.]]></category>
		<category><![CDATA[szekelyhon.ro]]></category>
		<category><![CDATA[Transversum Ltd.]]></category>
		<category><![CDATA[Udvarhelyi Híradó]]></category>
		<category><![CDATA[Udvarhelyi Híradó SRL]]></category>
		<category><![CDATA[Varjúvár Kiadó Ltd.]]></category>
		<category><![CDATA[Vásárhelyi Hírlap]]></category>
		<guid isPermaLink="false">http://dev2.atlatszo.exot.hu/?p=26651</guid>

					<description><![CDATA[<p>The Hungarian government granted a support of 6 million EUR to a Transylvanian NGO following a previous grant of 4,5 million EUR. How does the current readjustment and upgrade of Hungarian media in Transylvania and the Hungarian media of the Carpathian Basin look like? If success is measured by the number of businesses being set [&#8230;]</p>
<p>The post <a href="https://atlatszo.ro/en/important-en/media-funding-record-in-transylvania-a-network-of-businesses-covered-in-mist/">Media funding record in Transylvania: a network of businesses, covered in mist</a> appeared first on <a href="https://atlatszo.ro/en/">Átlátszó Erdély</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p class="western" lang="hu-HU"><strong>The Hungarian government granted a support of 6 million EUR to a Transylvanian NGO following a previous grant of 4,5 million EUR. How does the current readjustment and upgrade of Hungarian media in Transylvania and the Hungarian media of the Carpathian Basin look like? If success is measured by the number of businesses being set up around the NGO, we are indeed witnessing a real success story.</strong></p>
<p class="western" lang="hu-HU"><span lang="en-US">One year after the <a href="https://atlatszo.ro/2018/01/15/lesz-sajat-portalunk-tobb-is-vertikalis-is-horizontalis-is-erre-megy-a-masfel-milliardos-sajtotamogatas-erdelyben/" target="_blank" rel="noopener noreferrer">“vertical and horizontal development”</a> of the Erdély 3.0 “complex concept”, there is no visible output of the 1.45 billion HUF (4.5 million EUR) grant of the Hungarian government. On the 20</span>th<span lang="en-US"> of March 2019 another 1.9 million HUF (6 million EUR) were allocated by the Hungarian PM to the Erdélyi Médiatér Association (its official name: Asociatia pentru Spatiul Media Transilvan).</span></p>
<p class="western" lang="hu-HU">According to the <a href="https://magyarkozlony.hu/dokumentumok/b56151b158de609397162b21e29bf738fdcb1c48/megtekintes" target="_blank" rel="noopener noreferrer">1148/2019. (III. 20.)</a> governmental decision the grant aims to support the “Hungarian language media of the Carpathian Basin”, and will be wired through the Bethlen Gábor Foundation in 2 installments of 950 million forints.</p>
<h2 class="western" lang="hu-HU">But how was the previously allocated 1.45 billion HUF spent?</h2>
<p class="western" lang="hu-HU">We are still groping in the dark as the Ministry of Human Resources <a href="https://kimittud.atlatszo.hu/request/erdelyi_mediater_egyesulet_szakm#incoming-18101" target="_blank" rel="noopener noreferrer">denied to release</a> the detailed budget, narrative proposal and financial report. The reason? In December 2018 the beneficiary asked for a change in the document, and the contract is undergoing changes, thus the information we requested is used as a reference in the decision making process.</p>
<p class="western" lang="hu-HU">The Freedom of Information Act in Hungary was amended in 2015, and information used to ground decision making process was exempted from the range of public information. <a href="https://atlatszo.hu/2015/06/28/adatigenyles-ellenes-torvenymodositasok-ujabb-pofon-az-informacioszabadsagnak/" target="_blank" rel="noopener noreferrer">This became the perfect blanket rule:</a> as all information is used as basis of reference in decision making processes, it can be applied to anything.</p>
<p class="western" lang="hu-HU">But the amendment of the contract is not the reason why the Ministry of Human Resources rejected releasing public information: in July 2018, when the amendment of the supporting document hasn’t been launched yet, <a href="https://kimittud.atlatszo.hu/request/11264/response/16669/attach/3/v%20laszlev%20l.pdf" target="_blank" rel="noopener noreferrer">we were denied the requested information</a> and data regarding the detailed budget plan and the narrative proposal with the same argument, that the information qualifies as data used as a basis of reference for making future decisions.</p>
<h2 class="western" lang="hu-HU">The contract does not reveal what the money is being spent on</h2>
<p class="western" lang="hu-HU">Previously, in March 2018 we handed in a similar FOI request to which <a href="https://kimittud.atlatszo.hu/request/erdelyi_mediater_egyesulettel_ko_2#outgoing-15594" target="_blank" rel="noopener noreferrer">we didn’t receive any answers</a> – truth be told, a couple of weeks sooner, the Ministry of Human Resources released the contract signed with the Erdélyi Médiatér Association, but the contract <a href="https://atlatszo.ro/2018/02/09/az-egbol-pottyant-145-milliard-itt-az-erdelyi-mediater-egyesulet-tamogatoi-okirata/" target="_blank" rel="noopener noreferrer">contained no information</a> on what the money was spent on.</p>
<p class="western" lang="hu-HU">Why are we interested in the financial support received by the Erdélyi Médiatér Association? The NGO in the past published the medium-sized <a href="http://foter.ro" target="_blank" rel="noopener noreferrer">Foter.ro</a> internet news website, and was basically unknown up until December 2017, when it received 1.45 billion forints, equaling 4,5 million euros from the Hungarian government.</p>
<p class="western" lang="hu-HU">This amount was astronomical. Just to give you a sense of the annual budgets of Hungarian media in Transylvania: Foter.ro news website previously a yearly budget of 40 million HUF (120,000 EUR). The yearly budgets of the <a href="http://szekelyhon.ro" target="_blank" rel="noopener noreferrer">szekelyhon.ro</a> having a similar number of readers as <a href="http://masozl.ro" target="_blank" rel="noopener noreferrer">maszol.ro</a> was of 180,000 EUR. (Our article on the Hungarian government funding of the Hungarian online media in Transylvania can be <a href="https://atlatszo.ro/english-en/fidesz-has-won-over-the-hungarian-online-press-in-transylvania/?lang=en" target="_blank" rel="noopener noreferrer">accessed here</a>).</p>
<p class="western" lang="hu-HU">The guesses about how this money will be spent started instantly. It was clear right from the start that the bigger part of this amount will be used for saving the Udvarhelyi Híradó Ltd., currently undergoing bankruptcy. We wrote a summary about the situation of the company, which found itself in the middle of the Simicska-Orbán quarrel in December, 2017.</p>
<p class="western" lang="hu-HU">Long story short, by December 2017 several dailies (Krónika, Vásárhelyi Hírlap, Csíki Hírlap, Gyergyói Hírlap, Udvarhelyi Híradó), and one weekly (Erdélyi Napló) as well as the most viewed news portal (szekelyhon.ro), all published by Udvarhelyi Híradó SRL found themselves in deadlock and asked for bankruptcy protection.</p>
<p class="western" lang="hu-HU">Besides bad management, the company found itself trapped in the middle of a political game. The relation between Hungarian PM Viktor Orbán and his former ally, the leader of Fidesz’s economic heartland, Lajos Simicska deteriorated.</p>
<p class="western" lang="hu-HU">In 2015 the conflict escalated into an open war, which, besides threatening messages being sent to one another, also meant that the Hungarian government did everything to make Simicska’s situation difficult and eventually push his companies out of business. They have succeeded following the elections of 2018.</p>
<p class="western" lang="hu-HU">The situation affected the Udvarhelyi Híradó SRL:</p>
<p class="western" lang="hu-HU"><span lang="en-US">1. The owner of the company, </span><span lang="en-US">„Határok nélkül a magyar sajtóért” Foundation (</span><span lang="en-US">Without Borders for the Hungarian Press Foundation) was controlled by Simicska;</span></p>
<p class="western" lang="hu-HU">2. Simicska was not willing to invest in the Hungarian media abroad, but wasn’t willing to hand over the media to Orbán for free;</p>
<p class="western" lang="hu-HU">3. Because they were afraid that Simicska would use the state support for own purposes, the Hungarian government and state companies were reluctant to sponsor the foundation;</p>
<p class="western" lang="hu-HU">4. Udvarhelyi Híradó Ltd. wasn’t able to cover its expenses, and asked for bankruptcy protection.</p>
<h2 class="western" lang="hu-HU">2018 was the year of acquisitions</h2>
<p class="western" lang="hu-HU">How does the project initiated by Szilárd Demeter, the unofficial ambassador of the Erdélyi Médiatér Association look like and how was it designed to significantly alter and modernize the Hungarian media in Transylvania? Demeter has no official role in the association, but he was the one who lobbied for the huge amount of funding eventually granted by the Hungarian government.</p>
<p class="western" lang="hu-HU">Demeter, having Sekler roots has graduated from the Faculty of Philosophy of the Babes-Bolyai University in Cluj, and started his political career as the press officer of MEP László Tőkés. After that he started working for Századvég Foundation, a think thank close to the Hungarian government. It is not known what he was working on there, but there are signs that he was in the team of Árpád Habony, a communications guru of the government. Not long ago he was named the director of the Petőfi Literary Museum.</p>
<p class="western" lang="hu-HU">In January 2018, Demeter <a href="https://atlatszo.ro/2018/01/15/lesz-sajat-portalunk-tobb-is-vertikalis-is-horizontalis-is-erre-megy-a-masfel-milliardos-sajtotamogatas-erdelyben/" target="_blank" rel="noopener noreferrer">gave an interview about his plans</a> in the Hungarian media in Transylvania:</p>
<blockquote>
<p class="western" lang="hu-HU">“We presented a complex concept, which besides building an integrated media contains also the elements that could shape and create the Transylvanian media scene, and provided the concept for all those platforms that would be put in the service of community building. We would mostly favor online platforms, as this is the direction where things are going.</p>
<p class="western" lang="hu-HU">We are not only thinking about platforms, but also of an efficient online content management and we have suggestion for developing other ideas as well. We are looking into developing infocommunications solutions that could help the actors of the Hungarian arena of the neighboring countries. There is a separate workgroup which is focusing on this.”</p>
</blockquote>
<p class="western" lang="hu-HU">A simple media consumer wouldn’t be able to tell that the media outlets in the interest of Erdélyi Médiatér Association have flourished following the significant capital they had received. The quality of the content is the same as it was before, there are no signs of technical developments, and the initial enthusiasm of the journalists also disappeared.</p>
<p class="western" lang="hu-HU">It is also true though, that we have not seen propaganda either, despite the fact that the media in Hungary has been completely transformed into a propaganda machine, and many feared that this will happen in the Transylvanian media as well.</p>
<p class="western" lang="hu-HU"><span lang="en-US">A series of small businesses started to gravitate around the NGO. Because of the denial of the release of public information, we need to rely on the Romanian company database and a couple of facts mentioned by László Szőke, the director of the media portfolio in his <a href="https://kronika.ro/extra/vissza-a-jovobe-n-erdely-legnagyobb-mediaportfoliojanak-elmult-everol" target="_blank" rel="noopener noreferrer">essaylike paper</a> published on the 4</span>th<span lang="en-US"> of March, 2019. We have addressed him a series of questions related to the events in 2018, but we are still waiting for his answers. </span></p>
<blockquote class="embedly-card">
<h4><a href="https://atlatszo.ro/media/rekordosszegu-mediatamogatasok-erdelyben-burjanzo-ceghalo-nem-szuno-homaly/">Rekordösszegű médiatámogatások Erdélyben: burjánzó cégháló, nem szűnő homály &#8211; Átlátszó Erdély</a></h4>
<p>Tegnap újabb 1,9 milliárd forint támogatást ítélt meg a magyar kormány az Erdélyi Médiatér Egyesület számára a korábbi 1,45 milliárd után. De hogy áll jelenleg az erdélyi és Kárpát-medencei magyar média nagyszabású átalakítása és korszerűsítése? Ha az egyesület körül megjelenő cégek száma a siker mércéje, akkor egy igazi Kárpát-medencei sikersztorinak vagyunk a szemtanúi.</p></blockquote>
<p><script async src="//cdn.embedly.com/widgets/platform.js" charset="UTF-8"></script></p>
<p class="western" lang="hu-HU">The story started on January 8th, 2018, when the Udvarhelyi Híradó Ltd., under bankruptcy procedure <a href="https://atlatszo.ro/2018/01/08/titokban-gazdat-cserelt-a-legnagyobb-erdelyi-mediaceg-tobb-szaz-alkalmazottja/" target="_blank" rel="noopener noreferrer">was saved on the platform of a company</a> from Székelyudvarhely called Prima Press Ltd., which was operating a small local radio and a teletext. Prima Press provided the platform for saving the local news outlets (Vásárhelyi Hírlap, az Udvarhelyi Híradó, Csíki Hírlap and Gyergyói Hírlap), together with the Székelyhon news website and Krónika national daily, which were all operated by the Udvarhelyi Híradó Ltd. Prima Press also took over the several hundred employees of the Udvarhelyi Híradó Ltd.</p>
<p class="western" lang="hu-HU"><span lang="en-US">At that date, on January 8</span>th<span lang="en-US"> there was no official relation between Prima Press Ltd. and the NGO. According to the Official Monitor, on January 26</span>th<span lang="en-US"> there was a raise in the association’s registered capital, so the association ended up owning 4.7% of the company owned by a local businessman, János László, and by his company, Arkum Invest Ltd. Two weeks later, on February 8</span>th<span lang="en-US">, the Erdélyi Médiatér Association acquired Prima Press Ltd. completely.</span></p>
<h2 class="western" lang="hu-HU">Export of knowledge to the Hungarian communities of the neighbouring countries</h2>
<p class="western" lang="hu-HU"><span lang="en-US">In February 2018 a company named </span><span lang="en-US">Magyar Médiaszolgáltatást Támogató Központ Nonprofit Ltd. (</span><span lang="en-US">Hungarian Mediaservice Support Nonprofit Ltd.) was registered in Hungary. The founder of the company was Éva Judit Korda, who is also the president of the </span><span lang="en-US">Határok Nélkül a Magyar Sajtóért Foundation, the owner of </span><span lang="en-US">Udvarhelyi Híradó Ltd. </span></p>
<p class="western" lang="hu-HU"><span lang="en-US">What is the role of the </span><span lang="en-US">Magyar Médiaszolgáltatást Támogató Központ Nonprofit Ltd.</span><span lang="en-US">? According to Szőke, this nonprofit has the role to export the (nonprofit oriented) knowledge of the Transylvanian holding to the Hungarian communities living in the neighbouring countries, Slovakia, Serbia, Ukraine, and has the role to provide full IT support to the group of companies.</span></p>
<p class="western" lang="hu-HU"><span lang="en-US">In May 2018 Transversum Ltd. was founded – its founders are the </span><span lang="en-US">Magyar Médiaszolgáltatást Támogató Központ Nonprofit Ltd. and the Erdélyi Médiatér Association</span><span lang="en-US">. Transversum is dealing with the financial, human resource and legal matters of the holding, covers management and estate administration tasks, and also functions as its advertising agency. (<a href="https://atlatszo.ro/2018/07/31/meglengette-a-mezesmadzagot-az-erdelyi-mediater-egyesulet/" target="_blank" rel="noopener noreferrer">We wrote in detail about the Transversum Ltd. here</a>).</span></p>
<h2 class="western" lang="hu-HU">They have engulfed the mediaproject of the Hungarian right wing party, Jobbik</h2>
<p class="western" lang="hu-HU"><span lang="en-US">In May, 2018 the Varjúvár Kiadó Ltd. was founded – its founders were the </span><span lang="en-US">Magyar Médiaszolgáltatást Támogató Központ Nonprofit Ltd. and Erdélyi Médiatér Association.</span><span lang="en-US"> According to Szőke this company is responsible for projects which do not have a publisher (Előretolt Helyőrség, Nőileg, Nethuszár, Székelyföld.ma). This same publishing house is also operating the documentation and investigations center of the conglomerate and publishes the Székelyhon daily’s monthy annex, Kilátó. </span></p>
<p class="western" lang="hu-HU">The group is also publishing the monthly literary magazine called Előretolt Helyőrség, and Nőileg, another monthly magazine, as well as the online portal of Cimbora, dedicated to children, called cimbora.net, and also two smaller sites: Nethuszár and the Székelyföld.ma. The latter used to be closely related to the Hungarian right wing party, Jobbik. The Háromszék, Székely Hírmondó, Nyugati Jelen and Brassói Lapok are also partners of the trust.</p>
<p class="western" lang="hu-HU"><span lang="en-US">At the beginning of August 2018, there was a raise in the registered capital of Agotika Ltd., which operates the Friss FM radio station in Sepsiszentgyörgy. Thus, Erdélyi Médiatér Association became also one of the owners together with Prima Press Ltd. Its previous owner, Judit </span><span lang="en-GB">Ágota</span><span lang="en-US"> Petroczki left the company on August the 20</span>th<span lang="en-US">. </span></p>
<p class="western" lang="hu-HU">Szőke’s report also reveals that the radio station Mix Fm, Fény TV channel, and the local teletext of Gyergyószentmiklós operated by Kelet Info Ltd. also became part of the trust. (This transaction bears no trace in the company register, but probably because the register has not yet been updated).</p>
<h2 class="western" lang="hu-HU">Is Szőke loosing influence?</h2>
<p class="western" lang="hu-HU">An important factor would be that László Szőke’s role has started to diminish: he has been a key figure of the mediaproject for a while informally, later formally, but since August 2018, he was placed in a role that sounds important, but is probably insignificant: he is the development director of the media portfolio.</p>
<p class="western" lang="hu-HU"><span lang="en-GB">The management of Prima Press Ltd. was taken over by a former journalist and businessman, Imre Zilahi. He has also become the manager of Agotika Invest Ltd. and Transversum Ltd. The manager of </span><span lang="en-US">Magyar Médiaszolgáltatást Támogató Központ Nonprofit</span><span lang="en-US"> Ltd. is Áron Győrfi, while the manager of Varjúvár Kiadó Ltd. is István Horváth. </span></p>
<p class="western" lang="hu-HU">For the readers of these journals the biggest change is that 4 local dailies (Vásárhelyi Hírlap, Udvarhelyi Híradó, Csíki Hírlap and Gyergyói Hírlap) merged into a single one, and the merged content is published on 12 pages in Székelyhon, a change which saw a series of mixed reactions: many readers look for reading local news and topics.</p>
<p class="western" lang="hu-HU">According to Szőke’s report, 2018 was the year of building: “all members of the trust have undergone an internal financial audit, and they are looking forward to the integrated management of core business processes (ERP) soon to be introduced. The editorial offices were upgraded and a unified content managerial system has also been introduced, which also functions as the biggest, up to date, live databank of press releases”.</p>
<p class="western" lang="hu-HU">„And this is just the beggining…” – says Szőke at the end of his article.</p>
<p class="western" lang="hu-HU">We asked for legal remedy in relation to our unanswered public data requirement, and we are following closely its aftermath and will keep you updated with any further developments on the issue and topic as well.</p>
<p class="western" lang="hu-HU"><strong>Translation: Etelka Tamás-Balha</strong></p>
<p lang="hu-HU"><em>Photo: Szilárd Demeter (right) and László Mohácsi (left) the president of the Erdélyi Médiatér Association. Source: Facebook</em></p>
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<p>The post <a href="https://atlatszo.ro/en/important-en/media-funding-record-in-transylvania-a-network-of-businesses-covered-in-mist/">Media funding record in Transylvania: a network of businesses, covered in mist</a> appeared first on <a href="https://atlatszo.ro/en/">Átlátszó Erdély</a>.</p>
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