Russia's Channel One faces debt crisis amid viewer exodus
Channel One, the main propaganda television channel in Russia, is facing serious financial problems and declining viewership. The station's debt to its main contractor has increased fivefold, and viewership has fallen by nearly half.
Channel One, a symbol of Russian propaganda, is experiencing severe financial difficulties that have worsened since Russia's aggression against Ukraine began. The station's debt to Krasny Kvadrat LLC, owned by billionaire Arkady Rotenberg, amounts to 4.99 billion rubles (approximately $73 million CAD).
Since the beginning of 2022, the debt has increased by almost 4 billion rubles, indicating a sharp deterioration in the channel's financial situation.
One of the main reasons for these problems is the significant drop in viewership, from 1.48% in 2021 to 0.99% in 2022. Compared to 2017, nationwide television channels in Russia have lost about 25 million viewers. Propaganda programs have become less popular, and Russians are increasingly turning away from this type of media.
The Kremlin funnels billions into Channel One
Even though Channel One is not making a profit and continues to struggle with increasing debt, the Russian state still allocates enormous sums for its upkeep. In 2025, the government will allocate a record 137.2 billion rubles (approximately CAD 2 billion) for funding state television, an increase of 13% compared to the previous year.
Despite the financial crisis and declining viewership, the Kremlin continues investing in state media, which remains one of the regime's propaganda tools.
