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State informational contracts as a mechanism of control on regional media markets in Russia
Previous studies have illustrated that ownership of media
capital is an important way of controlling media companies in
developed countries (Garnham, 1992). However, we suggest that
in developing countries, there are other forms of control over the
media market. This research analyses the parallel financing models of media in Russian regional media markets. State informational
contracts are the main tool of this alternative financing. These
practices of state contracts are fully embedded into Russian regional
market structure and are accepted by almost all media companies,
both private and public. The 1846 samples of contracts collected
from four Russian regions of a total sum of over 5,5 billion Russian
rubles demonstrates the existence of parallel informational contract
markets. This market co-exists with an advertising-based market.
Using the mechanism of parallel financing, local authorities
establish loyal relationships with media companies. We conclude
that these financing models enable authorities to control the media
market indirectly through financial tools and informal relations,
rather than through participation in media capital.