Bill set to boost Berlusconi's media empire

The Italian Senate has given final approval to a bill easing restrictions on media ownership – legislation which critics claim will benefit Premier Silvio Berlusconi’s media empire.

The law was passed yesterday by a vote of 155 to 128 after the Chamber of Deputies, the Italian parliament’s lower house, approved the bill in October.

The centre-left opposition described the bill as tailor-made for Berlusconi, who is Italy’s richest man.

He has a business empire ranging from a soccer team to insurance and estate agencies, but the centrepiece revolves around media interests, including Italy’s three biggest private TV networks, magazine and other publishing, film and advertising companies.

The new legislation lumps print, broadcast, music, internet, publishing and the film industry together.

Analysts say this means Berlusconi’s Mediaset SpA, Italy’s largest private media company, could lift its current Italian advertising revenue by as much as €1m while still remaining within the cap that prohibits individual operators from controlling more than 20% of the market.

Supporters of Berlusconi’s conservative coalition have rebuffed criticism that the bill was created to benefit the premier, claiming the new law will rejuvenate Italy’s media and make it more competitive.

One aspect of the law would allow Mediaset, which is 49% owned by Berlusconi, to keep one of its three TV channels, Rete 4, on an analogue frequency. A previous law had required Rete 4 to shift to satellite broadcasting by December 31.

If Rete 4 was forced on to satellite distribution, Mediaset’s operating profit might have dropped, according to analysts.

Mediaset controls 66% of Italy’s TV advertising market and has a 43% audience share. Its main TV competitor are the three RAI state TV networks.

Another aspect of the new law which has drawn scrutiny allows broadcasters to own publishers, and vice versa, starting in 2009.

Since Berlusconi’s empire includes both broadcasting and publishing, critics say the bill was put together with him in mind.

The law also paves the way for the gradual privatisation, as early as 2004, of Italy’s state broadcaster RAI.

As premier, Berlusconi can wield indirect influence over RAI, fuelling contentions that he can use the media for his personal and political interests.

Italian president Carlo Azeglio Ciampi, who had appealed to parliament to make a media law which would boost pluralism, has 30 days to approve the law and make it effective.

If he declines to do so, the parliamentary chambers can vote it through again, overriding his veto.