In recent developments within the Armenian diaspora and media landscape, significant attention has been directed towards the establishment of American branches of the “Hanarayin” (Public) television company and the “Im Kayly” (My Step) foundation. These branches have been registered at the residence of Araks Simidyan, the sister of Hakob Simidyan, Armenia's Minister of Environment, located in the North Hollywood district of Los Angeles. This article delves into the intricate connections, financial dealings, and potential ethical concerns surrounding these entities, shedding light on their implications for Armenian media and politics.

The Residential Hub in North Hollywood

The house that has become a focal point in this unfolding narrative belongs to Araks Simidyan, sister of Hakob Simidyan, Armenia's Minister of Environment. Situated in North Hollywood, Los Angeles, this residence serves as the registered address for the American branches of both the “Hanarayin” television company and the “Im Kayly” foundation, which is led by Anna Hakobyan, the wife of Armenian Prime Minister Nikol Pashinyan. Araks Simidyan holds the position of financial director for the foundation.

In March 2024, the same address was registered as the location for First Channel America, a subsidiary of the Armenian Public Television company. Araks Simidyan is listed as the executive and financial director, as well as the secretary of this entity.

Connections and Relationships

Despite being appointed to a significant role within the media sector, Araks Simidyan has had no prior affiliations with the media industry. According to sources from the publication “Hetq,” she maintains a close relationship with Anna Hakobyan, the wife of Prime Minister Pashinyan. Furthermore, the Pashinyan and Simidyan families are long-standing acquaintances, which adds another layer of complexity to the situation.

Ethical and Conflict of Interest Considerations

The President of the Public Broadcasting Council, who was previously associated with Pashinyan’s “Civil Contract” party, has dismissed concerns regarding ethical and conflict-of-interest risks. He argues that the head of the American branch of the Public Television, which is funded by Armenian taxpayers, is an individual connected to the current Armenian authorities. Additionally, the branch is registered at his own residence.

However, this assertion raises questions about the potential for conflicts of interest and the ethical implications of having a media entity so closely tied to political figures. The intertwining of media and politics can often lead to biases, influencing the impartiality of the information being disseminated to the public.

The Genesis of the Controversy: Oghlakhchyan’s Revelations and Shirinyan’s Response

Robert Oghlakhchyan’s Disclosure

In September 2019, Robert Oghlakhchyan, the owner of ARTN television company operating in Los Angeles, made a significant revelation. According to documents under his control, in 2014, the Armenian Public Television Company granted Panarm, Inc., an American company established in Los Angeles in the same year, a five-year non-competitive license to rebroadcast their content. Despite Panarm, Inc. being led by Stepan Nersisyan, Oghlakhchyan and media reports suggest that the company has ties to Mikhail Minasyan, a friend of Armenia’s third President Serzh Sargsyan.

The monthly fee for the rebroadcast license was set at $2,500, amounting to $30,000 annually and a total of $150,000 over five years. Oghlakhchyan made this disclosure after discovering that in 2019, the Armenian Public Television renewed the contract with Panarm, Inc. for another five years, extending it until 2024. Under the new agreement, the monthly fee increased to $4,000, totaling $48,000 annually and $240,000 over five years.

Panarm, Inc.’s Role

Panarm, Inc. was granted the rights to rebroadcast the “First International Channel” program (a diaspora channel) both in 2014 and 2019. This arrangement places Panarm, Inc. in a significant position regarding the distribution of Armenian media content abroad.

Response from Ara Shirinyan

Ara Shirinyan, the President of the Public Broadcasting Council (currently overseeing the Armenian Public Television and Radio), who was appointed in the spring of 2019, responded to Oghlakhchyan’s announcement. He stated that before renewing the contract with Panarm, the Armenian Public Television had not received proposals from any other companies, despite Shirinyan publicly expressing interest in 2019 for a new rebroadcasting agreement.

Shirinyan further elaborated that Panarm, Inc., in addition to the annual fee of $48,000, would cover all service-related costs arising from the contract. These include the distribution of “First Channel” broadcasts through American cable companies and satellite broadcasters, employee salaries, and other operational expenses. These costs often exceed the licensing fee paid for the rebroadcast rights. Panarm, Inc. compensates for this by placing advertisements within the “First Channel” programming and assuming all risks associated with the contract.

Despite these considerations and the high expectations of the Armenian public, Shirinyan stated that the Public Broadcasting Council is willing to accept Oghlakhchyan’s overdue offer and is prepared to sign a rebroadcasting agreement with ARTN television company under the same terms as with Panarm, Inc., except for increasing the license fee from $48,000 annually to $1 million, amounting to $5 million over five years, as promised by Oghlakhchyan. Acknowledging the business risks, Shirinyan mentioned that the Armenian Public Television would negotiate with Panarm, Inc. regarding potential contract cancellations and is awaiting a written response from Robert Oghlakhchyan.

Lack of Response from Oghlakhchyan

In a recent statement to “Hetq,” Shirinyan revealed that despite making a public offer in September 2019, Robert Oghlakhchyan has yet to provide an actual response. Nevertheless, the Armenian Public Television remains prepared to grant the rebroadcasting rights to ARTN under the terms previously announced.

Existing Contracts and Future Plans

The President of the Public Broadcasting Council also informed that the Armenian Public Television has contracts and arrangements with over 40 companies worldwide to facilitate free rebroadcasting. According to Shirinyan, Verizon Communications in the United States is handling paid rebroadcasting, with fees based on the number of subscribers, thereby balancing costs.

Since June 2021, the Armenian Public Television began broadcasting the “First News Channel” program in Yerevan. On July 1 of the same year, the company announced an open competition for the rebroadcasting of the “First News Channel” in the United States, aiming to secure a reliable partner and an attractive offer to make the channel accessible to Armenian compatriots residing in the U.S. However, according to Shirinyan, no companies expressed interest in this competition.

Consequently, the Armenian Public Television decided to establish a branch in the United States to conduct independent rebroadcasting within the country.

Current Status: Armenian Public Television Pays Panarm, Inc.

Establishment of First Channel America

First Channel America (translated as “First Channel America”) received its state registration on March 27, 2024. This led the Armenian Public Television to terminate the contract renewed with Panarm, Inc. in April 2024, which was initially set to expire in November of that year. However, this termination did not sever the ties between the Armenian Public Television and Panarm, Inc., which is associated with Mikhail Minasyan.

Broadcasting through Spectrum Network

The Armenian Public Television announced that First Channel America would be broadcasted on the Spectrum network in the United States, a significant cable network owned by Charter Communications, Inc. This strategic partnership aims to enhance the channel’s reach within the Armenian-American community.

Interview with Ara Shirinyan

In an exclusive interview, Ara Shirinyan addressed several questions regarding the deal:

  • Q: Is it true that First Channel America will be broadcasted on the Spectrum network in the U.S.? Is this a cable network or another type of network?
  • A: Yes, Spectrum is a cable network with extensive coverage in California, especially within Armenian communities. It is the most widespread cable network for local Armenian channels.
  • Q: Did First Channel America sign a contract with Charter Communications, Inc. or with Armenian Public Television?
  • A: Since all broadcast slots were occupied, the Armenian Public Television entered into an agreement with Panarm, Inc. and subleased the same slot to Panarm, Inc. at the same rate. Panarm, Inc. has leased this slot from Charter Communications, Inc.
  • Q: Who pays for the broadcasting slot to Charter Communications, Inc.?
  • A: Panarm, Inc. pays Charter Communications, Inc., and subsequently, the Armenian Public Television pays Panarm, Inc.
  • Q: What is the annual fee for broadcasting?
  • A: The monthly fee is $25,000, amounting to $300,000 annually.

Connection to a Politically Associated Individual’s Residence

According to Ara Shirinyan, First Channel America’s sole founder is the Armenian Public Television company. Official documents indicate that the incorporator of the American company is Araks Simidyan, the sister of Hakob Simidyan, the Armenian Minister of Environment. Additionally, the company is registered at her private residence (8241 Babcock Avenue, North Hollywood), owned by her and Artem Arakelian.

Overlapping with “Im Kayly” Foundation

The same address is registered as the home of Anna Hakobyan’s (wife of Prime Minister Nikol Pashinyan) American branch of the “Im Kayly” foundation, My Step Foundation Inc. Established in February 2019 and initially registered in Beverly Hills, it later moved to Araks Simidyan’s residence.

Detailed Examination of Araks Simidyan’s Residence

If Araks Simidyan serves as the executive (CEO) and financial (CFO) director of First Channel America, as well as the secretary, she also holds the position of financial director at the My Step Foundation. This dual role places her at the nexus of media and philanthropic activities connected to the ruling political elite.

Statements from Ara Shirinyan

Ara Shirinyan, President of the Public Broadcasting Council, stated that there are no perceived risks in the founding of First Channel America by the Armenian Public Television. He highlighted that First Channel America is registered at Araks Simidyan’s residence, who is not only the sister of Minister Hakob Simidyan but also the financial director of the “Im Kayly” foundation registered at the same address.

Shirinyan posed a critical ethical question: Is it appropriate for the head of a media outlet, purportedly serving public and community interests, to be connected to an individual linked to the ruling political party, and for the company to be registered at the same residence as a foundation associated with the ruling party?

Legal Registration Requirements

Shirinyan explained that under U.S. law, until the company fully commences its operations, it must be registered at some address. Consequently, First Channel America is temporarily registered at Araks Simidyan’s residence. However, Shirinyan did not specify the duration of this temporary arrangement or the planned full-scale launch of the American branch, even though five months have elapsed since its establishment.

Potential Risks and Conflicts of Interest

Shirinyan addressed concerns about potential biases and conflicts of interest:

  • Q: Do you see any risks regarding First Channel America’s impartiality and non-partisanship? Is there a conflict of interest with Araks Simidyan’s role as both the media leader and a person connected to the ruling party?
  • A: Shirinyan dismissed the risks, stating that the broadcast network for the “First Channel America” educational program is approved by the Public Broadcasting Council through the executive director of the Armenian Public Television. Therefore, he does not perceive a conflict of interest.
  • Q: Why didn’t the foundation of First Channel America avoid creating a situation that could potentially lead to conflicts of interest?
  • A: Shirinyan stated that the foundation is consistently attentive to such matters and does not see any significant risks of potential conflicts of interest in this case.

Shirinyan’s Justification

Shirinyan argued that it would be more ethically appropriate if, for example, the Armenian Public Television were registered at Prime Minister Pashinyan’s residence or at the address of the Armenian Times newspaper’s editorial office, which is owned by the Pashinyan family, or at the address of the My Step Foundation registered in Yerevan. Additionally, if the television company’s director were a close associate of Pashinyan, the ethical concerns would be more pronounced.

If the Public Television were to function as a media outlet for the ruling party, then the situation with First Channel America would be more understandable. However, as of now, the Public Television has not officially become a partisan media entity, despite being funded by taxpayers and publicly recognized as such. It has always been under strict oversight by the current authorities, sometimes even under their direct control.

Funding Sources

Shirinyan also explained that the American subsidiary of the Armenian Public Television is funded through the exchange provided by the Armenian Public Television and its own advertising revenues. It is important to note that the advertising sales are handled by Media House Armenia LLC, established in 2019, in which the Armenian Public Television holds a 50% stake. This was followed by the establishment of Newk Advertising Agency LLC in the summer of 2020, which is wholly owned by the Armenian Public Television. Media House Armenia LLC is registered at the Armenian Public Radio building, located at 5 Alek Manukyan Street. Its financial director is Arman Harutyunyan, the brother of Aryik Harutyunyan, the head of the government staff. The advertising rates offered in First Channel America’s presentations can be viewed here.

Leadership of First Channel America

Directors of First Channel America

Given that Araks Simidyan is appointed as the executive and financial director of First Channel America, the directors (board members) have been selected from the staff of the Armenian Public Television’s leadership team.

In American corporations (First Channel America is incorporated as a corporation), there is a distinction between directors and executive officers. Directors constitute a collective governing and supervisory body, whereas the executive officer (CEO) is responsible for the day-to-day operations and implementing the vision set by the board of directors.

The board of directors for First Channel America includes:

  • Lena Minasyan – Head of the Armenian Public Television staff
  • Tigran Virabyan – Deputy Executive Director and Chief Producer of the Armenian Public Television
  • Ararat Hakobyan – Deputy Chief Financial Director of the Armenian Public Television

Shirinyan mentioned to “Hetq” that the directors appointed are members of the Armenian Public Television’s staff who are not receiving any salaries. They are serving on a temporary basis until the full-scale operations of First Channel America commence.

Staffing and Content Development

As of now, despite being registered for five months, the American branch of the Armenian Public Television has only one employee (Araks Simidyan). It lacks a dedicated office address, and the content production is being handled by the Armenian Public Television’s content division. According to Shirinyan, the company is still in the preparatory phase for full operations under U.S. law, with broadcasting being handled by the Armenian Public Television since April.

Official Launch and Initial Programming

In March 2024, to commemorate the official launch of First Channel America, the Armenian Public Television announced that it would, for the first time in history, produce its own television content aimed at Armenians residing in North and South America. This content includes educational, cultural, and identity-focused programming.

However, as of now, only two such programs have been broadcasted. Initially, the content was to be developed in a phased manner, with existing broadcasts from Armenia being adapted to local time zones in the United States. In the spring broadcasting period, the program series “From Beyond the Ocean” and interviews with Petros Ghazaryan, representing the Armenian-American community, were filmed. Preparations are underway for new projects during the autumn broadcasting period, which will be announced in due course.

Statements from the Executive Director

Hovhannes Movsisyan, the Executive Director of the Armenian Public Television, stated during the official launch event in March that the program is highly ambitious and will require considerable time to develop. He acknowledged the difficulty in predicting the exact outcomes as they depend on the response from both the business environment and the viewers in the local market. Currently, they plan to operate in a more experimental mode for a few months, followed by a greater emphasis on local content creation during the autumn season. However, the success of these initiatives will largely depend on the response from the local Armenian community in the United States.

Limited Connection to Journalism

Araks Simidyan’s Professional Background

Araks Simidyan, the executive leader of the Armenian Public Television’s American branch, has no prior connections to the media sector. According to her LinkedIn profile, she is a clinical psychologist by profession, working in the social and healthcare sectors since 2014. Since 2019, she has been employed by QueensCare in Los Angeles, an organization providing healthcare services, particularly to low-income residents of Los Angeles, and implementing charitable programs. In 2023, she became the head of this organization.

Appointment Justifications

When questioned about how a non-media professional was appointed to lead a media organization funded by public resources, Shirinyan attempted to justify the appointment by highlighting Simidyan’s experience and skills in managing the healthcare foundation. He stated that considering her management experience and expertise, the Armenian Public Television deemed her suitable for the role of CEO of First Channel America.

Personal Connections and Political Ties

“Hetq” sources revealed that Araks Simidyan maintains close relationships with Anna Hakobyan, the wife of Prime Minister Nikol Pashinyan. During Anna Hakobyan’s visits to Los Angeles, Simidyan has hosted her, further strengthening their personal ties.

The connections between the Pashinyan and Simidyan families are longstanding. From 2009 to 2012, Hakob Simidyan served as the deputy director of “Dareskizb” LLC, the publishing house of the Armenian Times newspaper owned by the Pashinyan family. The director was Anna Hakobyan. It is also well-known that during Nikol Pashinyan’s imprisonment from March 1, 2008, he spent 11 months at Hakob Simidyan’s residence. From 2012 to 2017, Hakob Simidyan was an assistant to MP Nikol Pashinyan, and following political changes in 2018, he held various positions in the government and the National Assembly.

Ara Shirinyan’s Involvement

Ara Shirinyan, the current President of the Public Broadcasting Council, has connections to these individuals as well. In 2014, he joined the board of the “Civil Contract” return foundation, and Hakob Simidyan was the director of this foundation. Despite political changes in 2018, Shirinyan has not concealed his support for the current authorities.

Advisory Council Formation

An advisory council comprising members of the Armenian-American community has also been formed around First Channel America. Notably, only one member has direct ties to the media sector. According to Shirinyan, the council was established within the community to provide advice on various aspects of the television company’s operations. The council members bring extensive experience in their respective fields and possess firsthand knowledge of the Armenian-American community’s challenges, needs, and expectations.

Council Members

The advisory council includes:

  • Armen Bayburdyan – Professor of Urban Studies, Extraordinary and Plenipotentiary Ambassador (1994-1997, 2018-2022), Armenian Chief Consul in Los Angeles (Council President)
  • Karen Israelian – Armenian Chief Consul in Los Angeles since 2023
  • Karpis Tithizyan – Founder of Horizon Television Company, active member of the Armenian community in California
  • Karen Maymaryan – Well-known local businessman
  • Liana Haroyan – Head of U.S. Development and Support Programs (2013-2017), Head of Armenian Public Television staff
  • Tomik Alexandanyan – Member of the Iranian-Armenian Union’s supervisory body, General Director
  • Khachatur Khudikyan – Prominent local businessman
  • Meline Maikilyan – Co-founder and lawyer at the “Center for Truth and Justice” NGO

Conclusion from the Advisory Council

During the launch event, Karen Maymaryan, one of the council members and a local businessman, commented on the initiative: “There has always been a need in the market, now more than ever. The Armenian-American community needs to receive accurate information from Armenia, to be aware of ongoing events officially and to live the reality of Armenia, rather than being inundated daily with what we see on the news, often accompanied by negative consequences from misinformation.”

Implications and Future Prospects

If First Channel America effectively presents official information about life in Armenia, it raises the question of why the existing diaspora broadcasting by the Armenian Public Television was insufficient in meeting this need. The implications are significant, considering that the leadership of the Public Television’s American branch is entrusted to an individual with no media background but with strong ties to the current Armenian authorities.

The success of First Channel America in creating original content and serving the Armenian-American community’s interests will depend on its ability to transcend the narrow interests of the ruling party and address broader community needs. The ultimate measure of its success will be its capacity to foster genuine connections between Armenia and its diaspora, providing unbiased and comprehensive coverage of events and developments.

Final Thoughts

The establishment of the American branches of the “Hanarayin” television company and the “Im Kayly” foundation at Araks Simidyan’s residence in North Hollywood marks a significant development in Armenian media and diaspora relations. The intertwined connections between media management, political figures, and philanthropic endeavors raise important questions about media independence, ethical governance, and the role of diaspora media in shaping perceptions and fostering connections.

As First Channel America progresses, it will be essential to monitor its operations, assess the impartiality and quality of its content, and evaluate its impact on the Armenian-American community. Ensuring transparency and maintaining a clear separation between media operations and political affiliations will be crucial in establishing the credibility and trustworthiness of this new media entity.

Ultimately, the success of First Channel America will not only depend on its internal management and content strategy but also on its ability to resonate with the Armenian diaspora, providing them with reliable and meaningful content that reflects their needs and aspirations while fostering a stronger connection with their homeland.