Distribution is the third and
final step in the movement of information. A saying
popular among German print media distributors reads
as follows: "Sales aren't everything, but without
them, you have nothing." Analysis of regional conditions
taking into consideration the eight factors mentioned
above revealed that, in fifty regions,
companies
involved in print media distribution have not been
granted any of the seven possible benefits (applying
to lease of state-owned non-residential buildings,
lease of land, municipal taxation, contracts, sales
tax, etc.).
The laws in force in the Republic of Karelia
are a typical example. There, print media distributors
are not granted the following:
- special benefits for lease of state-owned non-residential
buildings
- exemption from payment for a permit to open
newsstands
- preferential land lease coefficients
- the status of municipal contractors
- exemption from utilities payments
- special contract benefits.
Above all, the sales tax rate runs as high as five
percent.
At present, the same conditions for information
distribution can be found in the legislation of
nearly half of Russia's regions, including those
often dubbed "advanced" from a market point of view,
such as Samara, Yaroslavl, Vladimir, Omsk, Kemerovo,
Perm, Rostov, Saratov and Penza regions.
The other half is at least trying to put a spoonful
of sugar in the medicine. For instance, in the Adygei
Republic, Krasnoyarsk and Stavropol Territories,
Arkhangelsk, Volgograd, Voronezh, Lipetsk, Murmansk,
Nizhny Novgorod, Ryazan, Tver, Tambov and Chelyabinsk
Regions, Khanty-Mansisk and Yamalo-Nenets Autonomous
Districts and a number of other territories, mass
media distributors have been exempted from sales
tax. Administrations of certain regions grant
media organizations concessions for leasing non-residential
buildings (Krasnodar Territory, Leningrad and
Tomsk Regions, St. Petersburg and Taimyr Autonomous
District), exempt them from the fee for the right
to conduct trade (Kaliningrad Region) and provide
them with a preferential land lease coefficient
(Vologda, Kaluga and Sverdlovsk Regions).
The Public Examination Committee had good reason
to consider the provision or denial of various benefits
and exemptions to press distributors as one of the
basic criteria for evaluation of press circulation
conditions. Although they are ordinary market players,
and sometimes even market favorites since they actually
sell the end product, press distributors usually
need support. But under the current conditions in
Russia, where in the majority of regions there are
only one or two functioning distribution networks
(by comparison, eighteen networks are active in
Moscow), publishers are almost defenseless against
the press distribution monopolies. Hence, alternative
distribution networks would benefit both the consumer
and the publisher.
But alas, they would not benefit the state. Experience
points to the fact that local administrations use
distribution monopolies to put pressure on publishers,
who are nearly totally dependant on sales. The solution
is simple: if control of such an effective lever
of press control is to be wrested from the hands
of local authorities, it is necessary that independent
and stable newsstand networks replace street vendors.
However, their establishment depends on the ability
of currently very weak provincial distributors to
create extensive local networks and set up stable
businesses with the aid of certain concessions and
tax exemptions.
At the same time, one can easily find evidence
that such concessions and exemptions will not be
appearing in most regions any time soon. It would
be naive to assume that the authorities will render
any assistance to the establishment of alternative
distribution networks that would deprive them of
one of their levers of control over the press. The
finding of the Public Examination committee read
as follows: the overwhelming majority of regional
administrations flatly reject the very idea of giving
any help to the press distribution business.
The greatest number of benefits and privileges
granted to distributors was recorded in Moscow.
In addition to six main concessions (distributors
are exempt from payment for the permit to set up
newsstands, are granted preferential land lease
rates, are granted the same rights as municipal
contractors, and are granted special terms for rental
of state-owned non-residential buildings, utilities
payments and contract fees), they pay a reduced
rate on the residential and public building maintenance
tax. Mass media distributors in Moscow are also
exempt from sales tax.
The Moscow Region ranks second after the city.
Local distributors have been granted certain exemptions
from municipal and sales taxes, as well as preferential
rental rates for non-residential space.
The researchers also collected information on
the number of bureaucratic levels that must be negotiated
in various regions to set up a newsstand. The city
of Omsk, the capital of Southern Siberia, broke
all records. A local businessman has to go through
34 stages to get a permit. The Russian capital has
29. This high level of bureaucracy is compensated
for by an unprecedented number of concessions and
benefits. Nowadays, Moscow is the area with the
most favorable conditions for distribution (see
map).
As concerns the finalized Map of Freedom of
Speech, as mentioned earlier, it ended up two-,
rather than three-colored. And this was not the
only revelation made throughout the course of the
research.
If one looks at the map, one finds that, previously,
some of the unfavorable regions had sometimes appeared
conflict-free and vice versa. As it turns out, the
political orientation of local authorities is not
always directly reflected in their mass media policy.
This was another sensational conclusion reached
by the Public Examination Committee.