In Tough Times Expansion Could Be The Answer

Michael Hedges February 11, 2013 Follow on Twitter

For commercial broadcasters in stagnant ad markets, increasing spot inventory is one strategy. Between regulation and market pressure simply adding more commercials is difficult if not impossible. One alternative is launching branded digital and web channels. There are other ideas.

Radio Impuls remains the top rated radio channel by daily reach in the Radio Projekt Czech national survey for the second half 2012, released February 7th.  The full service adult contemporary channel has led the national surveys for seven years. Local company Londa owns Radio Impuls and Prague local station RockZone. Londa, in turn, is principally owned by German broadcaster Eurocast.

“Londa wants to expand,” said CEO Jiri Hrabak, quoted by E15 (December 22, 2012). “We will take a chance and go against market trends.” Commercial broadcasters in the Czech Republic have been challenged in recent years by shrinking advertising revenues. National radio advertising dropped 12% from 2011 to 2012, according to the Admosphere  advertiser survey (January 18), which did not include local and regional ad spending. While the share of advertising for radio is expected to hold steady in 2013, ad spending as a whole is shifting to the internet and television. Londa received authorization in January to operate a new station in Central Bohemia, presumably under the Radio Impuls name, on medium wave. The station will target “older” listeners.

Frekvence 1 and Evropa 2, both owned by Lagardère Active CR, held second and third places, respectively, in the second half 2012 audience survey. Frekvence 1 is full service adult contemporary channel and Evropa 2 a hit music channel. After programming adjustments and personnel changes the channels have switched ranks in the last three years. Lagardère also owns Radio Bonton and Dance Radio as well as Regie Radio Music, the dominant radio ad saleshouse.

Lagardère is also expansive, acquiring assets of BBC Radiocom, which operated a network in a dozen major cities broadcasting the BBC Czech service and BBC World Service. BBC Radiocom is a Czech company principally owned by BBC World Service. Lagardere has granted the possibility of continuing BBC World Service programs “to the extent that the broadcasts make sense,” said Lagardere Active CR CEO Miroslav Hrnko, quoted by mediar.cz (December 18, 2012).

Czech public radio has been less than pleased at regulator RRTV’s approval. “It would be very unfortunate for the reputation of the venerable BBC…if a set of twelve unique quality FM frequencies…are (transferred) from the public service to the needs of commercial broadcasting,” said Czech Radio Director General Peter Duhan, reported by Tyden (January 18). “We believe that maintaining the existing long-term successful cooperation between the BBC and Czech Radio will preserve the plurality and independence of radio stations in the Czech Republic.” Czech Radio had planned a speech-based channel using those FM frequencies and has filed complaints with the Czech Competition Office and the Ministry of Foreign Affairs. The RRTV confirmed (February 7) that the deal with Lagardère is done as far as they are concerned but allowed Czech Radio officials to review all documents.

Czech Radio’s main channel CRo1 Radiozürnal placed fourth, as it has. CRo2 Praha, entertainment more than news, held sixth place. All national radio channels, public and commercial, showed year on year increases in daily reach. Overall listening was up, slightly, to 64%. Czech Radio plans to offer new digital channels for kids, jazz and talk shows in March.

Among regional channels there was slightly more ratings movement. Radio Blanik, a general interest channel with broad distribution from Central Bohemia, placed fifth in the national survey. Radio Cas FM and Country Radio lost listeners, year on year. Country Radio and its sister stations Radio 1, Radio Beat, Radio Spin and the Kiss network were acquired late last year by a local owner from Communicorp (Ireland), which exits the Czech Republic.

See also in ftm Knowledge

Europe’s Radio – Eastern Europe

Eastern Europe’s radio writes new rules. In fact, most everything about radio in this region is new... and changes often. The ftm Knowledge file reports on Belarus, Bulgaria, Czech Republic, Hungary, Moldova, Poland, Romania, Russia, Slovakia and Ukraine. 159 pages PDF (April 2013)

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