Advertising Association: the advertising tax distorts the competition in the market

The advertising tax distorts the competition in the Hungarian media market, it inhibits the growth and innovation, and has a negative impact on the content, quality and quantity of the service – Hivatal Péter, the vice president of the Hungarian Advertising Association (MRSZ) emphasized on Wednesday in Budapest, at the 40-year anniversary event of the MRSZ.

At the event the research of the EY consulting firm, carried out on behalf of MRSZ was revealesd. According to the research, the size of the media market is steadily declining in Hungary, since the outbreak of the economic crisis. The entire market suffered from the crisis – said Hivatal Péter added. The report says that more than one thousand media service providers are operating in Hungary, however, 90 percent of total revenue is provided by 100 media providers – he presented. The cumulative sales of these companies decreased by more than 15 percent between 2008 and 2013, a considerable proportion of them were lossmaking on operating profit level – he added. (MTI)