The Social and economic situation remains basically the same year in, year out. Democratic processes and development in general are not helped by the fact that RS admin/legislation is again dominantly influenced by one political party – PM Dodik's SNSD (Savez nezavisnih socijaldemokrata/Alliance of Independent Social-Democrats) - which in return enjoys media support galore. Organized crime (drug consumption/smuggling, human trafficking, racketeering...), corruption saturating especially judiciary and police, misuses in public spending, high share of grey market, and last but certainly not the least unemployment are the key problems hugely ignored by ruling politicians, mostly incompetent and/or unwilling to resolve any of these. The International community represented primarily by OHR, on the other hand, cannot do the job instead of them.

Being oddly shaped geographically, RS has a more developed Western part with capital Banja Luka, and a poor Eastern part. In the Eastern region of Birac, covered by Radio Magic, population decrease speaks for itself. Municipal budgets without support from RS entity barely provide for maintenance of utilities, so stimulating local businesses or general development could only be hoped for. A ray of light broke through with some investment in infrastructure although no new jobs were created. Also, this traditionally Serb hard-lining area has recently suffered less interethnic conflicts and obvious criminal incidents.

The prevailing number of media in RS favours information provided by Government and its institutions, but the downside is derogation of professional standards in reporting. Too few outlets practice critical view of politics and politicians. Overall programming and management level is very low, driving many media to reduce/cease own production, especially news and current affairs. Impartial and timely information became the priciest thing to do.

Total advertising budgets are hardly rising, BiH remaining among Europe's poorest markets, with buying power a few times smaller than close-by Balkan states. Broadcasts from neighbouring Croatia and Serbia are available both terrestrially and via cable, causing spillover effect – advertising into BiH without spending anything for airtime in this very country. Domestic reasons building up the problem are price dumping by PBS' and out-of-country media owners' and agencies' giant barters, also highly privileged if not monopolist position of PBS – collecting increasing funds from state/entity budget, foreign donations, advertising revenues and subscription fee, for overtly expensive 3 public nationwide channels!

Besides, ATV (Alternative Television) has been physically attacked by extreme right parties, while under longer-term threats because of crime and corruption exposed in the station's program. Recently pressure on certain media outlets has become more subtle but not less dangerous – via advertisers and sponsors which might be influenced to cancel their spending with the station, even if it's an annual contract. Thus the solvency of media company is jeopardized, and ATV has repeatedly been verbally attacked and accused by RS ruling party. On the other side and on a smaller scale, in the provincial context of 'company town' Radio Magic suffers essentially the same problems from the local mining/metal giant 'Boksit' and its new owner.

Enjoying the benefit of its' own building (the 1st of the kind built in BiH after the war), ATV continued production of news/info programs, generating better ratings and advertising income. Dec. 2006 research by Partner agency confirmed ATV remaining No1 in Banja Luka, No3 in RS, with news/info output again No1. Flagship shows like “Dossier” (supported by PA IV funds), high-quality info program, keep building up ATV’s credibility as 'TV station people trust the most'. Resisting the low-brow commercial trends, also avoiding to become biased by political parties, in ratings ATV follows after Serbia-based, BiH-syndicated TV Pink dominated by cheap entertainment programming, also after RS state/PBS-to-be TVRS. But by expanding its' footprint in both entities and improving the programs in the fall season, ATV came considerably closer to TVRS position.

Issues of importance for day-to-day life of RS/BiH citizens are continually neglected, both by politicians and media, so ATV as a major news source decided to further develop in-depth reporting, and present the political topics from all angles. The project “Dossier” intended and contributed as follows:

A commercial station in Eastern Bosnia, namely Birac region (municipalities of Milici, Vlasenica, Srebrenica, Bratunac, Zvornik and Sehovici), Radio Magic is the only broadcaster churning out professional and balanced news of its' own in this dominantly rural area, in mountains of Eastern Bosnia. The station has developed a new organizational structure, management staff was refreshed with new members, bringing higher commitment and more pro-active approach. On-air staff shifts have been reshaped to match the day parts i.e. program to fit audience needs. These structural improvements created a solid ground for program development and subsequently increased audience ratings and advertising revenue from both old and new clients.

The changes in new on-air schedule focused on morning show, traditional prime-time for radio. Infusing more local news and information of interest for the audience living in Magic's coverage area continues throughout the day, via regular news bulletins, while afternoon shows (18:00 – 18:30) expand the topics with more serious approach, and involve the listeners; vox-pops, open telephone lines, SMS and E-mail communication are gradually overcoming the ages-old problem of passive audience, consequently resurfacing civil society that could push for public debate. Most of this is supported by mh. Magic's solid credibility and popular status were confirmed by Dec. 2007/Jan. 2008 research conducted by Prism (Prizma) agency & Mediacentar Sarajevo.