National Media Group (NMG) is a media conglomerate with shares in a vast array of media outlets. While NMG does not hold a majority stake in all of its investments, this report will examine those media outlets where it does have a controlling interest. NMG owns a majority stake in Channel 5 and REN TV, as well as nearly 20% in Channel One.
Additionally, NMG holds a controlling interest in CTC Media, which oversees the operation of numerous television networks. In 2016, NMG also became a shareholder in Viasat, a prominent provider of pay television channels. The transaction was conducted through a newly established entity, Media Alliance, in collaboration with Discovery Networks. This entity was also utilized to acquire the local operations of over 10 television channels from a U.S.-based television broadcasting company, including the Discovery Channel, Animal Planet, CNN, and Eurosport. The deal was necessary due to legislation adopted in 2014 in Russia that restricts foreign ownership of media companies operating in the Russian market to a maximum of 20%. Consequently, foreign companies require a local partner to conduct business in Russia.
NMG also has a presence in the print media sector, with the publication of Izvestia, a major Russian newspaper. The company has established a substantial news production facility around Izvestia, known as Izvestia MIC. This entity oversees the Iz.ru portal, the Izvestia television channel, the Izvestia newspaper, and the news operations of NMG’s television channels (REN TV, Channel 5, and 78 TV). Furthermore, the same center oversees the operations of Business Petersburg.
NMG also oversees a number of businesses in a variety of sectors, including technology, sales, and film production.
Media assets
Television: Channel 5, REN TV; CTC Media- CTC, Domashniy, Che TV, CTC Love, 3One; 78 Channel; Viasat
Publishing: Izvestia, Business Petersburg, Metro Petersburg, Sport-Express
State Media Matrix Typology: Captured Public/State-Managed (CaPu)
Ownership and governance
NMG is a joint venture between several state-controlled media companies, including Rossiya Bank, Surgutneftegas, SOGAZ, and Gazprom Media. This information was confirmed by our experts and journalists covering Russian media, who were interviewed for this report in March 2023 and June 2024. Yury Kovalchuk, a prominent Russian financier and close associate of President Putin, exerts significant influence within the group. He was placed on the U.S. Treasury sanctions list in 2014 due to his involvement in the Crimean crisis.
Source of funding and budget
NMG generates the majority of its revenue through advertising sales and the commercialization of content, including subscriptions. No evidence has been found to suggest that state funding is being directed to media outlets managed by NMG. A report from the Media and Journalism Research Center indicates that NMG generated revenues of RUB 47.2bn (US$ 665m) in 2021.
Editorial independence
The media outlets owned by NMG are known to be aligned with the Kremlin, a consequence of Kovalchuk’s significant influence within the company. In various countries in Europe, television channels owned by NMG have been banned at various points in time. This was due to the fact that they were found to be propaganda platforms for the Kremlin with a mission to destabilize local societies.
To date, no domestic statute and no independent assessment or oversight mechanism to validate the editorial independence of the NMG’s media outlets has been identified.
September 2024