Berlin’s First Private Commercial Radio Station Goes Bankrupt

Michael Hedges April 28, 2005

Through the heady decade of the late ‘80’s and ‘90’s Hundert, 6 thrived. Competition and catastrophic ownership changes were more than it could survive. Go To Follow Up & Comments

Managing Director Thomas Thimme announced to the staff (April 19) that bankruptcy proceedings had been filed at the Charlottenburg (Brandenburg) court the day before and that Hundert, 6 would cease operations. An “emergency” program – just music – was broadcast from a different studio location. Radio Energy, NRJ Groupe, will assume the frequency. Thirty staff members, about three-quarters of the employees, were shown the door, angry.

The old studios and offices are closed. Local press reports suggest the company owes €2.8 million in back rent. The employees union is threatening legal action suggesting the company is using bankruptcy filing to void employment contracts.

One German broadcast consultant, who asked not to be identified for competitive reasons, said he “hadn’t thought of Hundert, 6 for years. “ It had long ago ceased to be a competitive factor in the market. In the most recent MA radio 2005 I survey the station could claim only 35,000 listeners.

Hundert, 6 launched in April 1987 by film-maker Ulrich Schamoni and 30 small partners as an alternative to both state broadcasting and the channels operated by remaining World War II allies. For a decade it gained popularity and was closely aligned with Green Party and left of center politics. By 1989 it gained a 24% market share, which rose to 35% in 1993.

In 1996, Leo Kirch bought the station, ranked 5th in Berlin with 96,000 average daily listeners, employing over 200 producing its full-service adult-contemporary format. When the Kirch media empire collapsed and the station passed to son Thomas Kirch. By 2000 the stations market share had fallen to 8%. In 2001 the station mounted an ad campaign setting its position in counter-point to the end of the GDR.

Thomas Thimme acquired it with financing from Clear Channel International in 2002. Within months, Clear Channel withdrew completely from radio broadcasting in Europe, leaving Thimme and his remaining partners scrambling for financing. By then, Hundert, 6 was a shadow of its former self. Many Berlin broadcasters, presenters, DJs and journalists crafted their skills in those studios over the years.

Berlin is now the political, economic and media capital of Germany. Twenty-seven radio stations operate on terrestrial frequencies, nearly one-third have been on the air five years or less.  And the newest stations – according to the recent MA radio 2005 I audience survey – are making the greatest gains. Competition being intense and sophisticated – and the Berlin ad spending huge - there is little room or time for failure.

These transitions are typical for European media markets, although newspaper ownership and management tends to change very slowly. LBC, the first commercial station licensed to London, has also suffered through management, ownership and programming changes since its 1973 debut. Capital Radio, launched one week after LBC, continued to grow into a media powerhouse. Nearly all of Sweden’s original commercial stations – launched in 1993 – have changed ownership, formats or both prompting regulatory rule changes to insure the sectors survival. The early French commercial channels operating outside French territory from the mid-1950’s have undergone several ownership changes, though two – Europe 1 and RTL – remain major brands in French radio. Ownership and major management changes make a certain difference, an issue concerning all regulators, financial institutions and shareholders. Consumers are even less forgiving, unwilling to hold on to artifacts of times past.

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MABB to Hundert,6 : time to move on – September 28, 2005

The Berlin Brandenberg Media Authority (MABB) closed the books on the current owner of radio station Hundert, 6. Citing bankruptcy proceedings the MABB is taking applications for the frequency until November 16th at noon. Leave documents at the front door.