The company was hoping earlier that the programming fee collected from cable companies would offset losses from the advertising tax and a decline in advertising revenues.

However, the government banned TV2 as well as RTL Klub from collecting such fees. TV2 had hoped to collect Ft 6-8 billion from cable service providers next year

Although the cabinet subsidises TV2 through advertisements, it has yet to enact a decree with which it could really “help” the company, therefore TV2 is looking at alternative solutions.

TV2 has been piling up losses for years and closed 2013 with a Ft 10.8 billion deficit.

A leading Fidesz politician said that if TV2 leaves, it will not receive any state advertising and will fold the following day.

Governing politicians view the threat to leave as a way of exerting pressure.

Source: Hungary Around the Clock

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