We're Having An Opportunity Here So Please Don't Get In The Way

Michael Hedges September 28, 2015 Follow on Twitter

Everything is now a challenge. Sitting back to enjoy the fruits of good labor is off the agenda. More competitors are coming. Some have money. Some have ideas. Some have a plan. The future howls like a cold north wind for the rest.

“Of course, radio is traditionally associated with summertime,” said Finland’s private/commercial radio association RadioMedia president Stefan Möller, after recent Finnpanel audience estimates put commercial stations on aggregate ahead of public broadcaster YLE. “The figures are the fruit of long-term work. Many channels have become well-known brands that you like to listen to at the summer cottage.” In July the aggregate market share for commercial radio stations was 51.1%.

Commercial radio is in its 30th year in Finland, local stations licensed in 1985 with national channels appearing a decade later. Well-regarded public broadcaster YLE has been an established media brand since the 1920’s. As water flows under the proverbial bridge, much has changed through those years and the pace is quickening.

In Finnpanel’s 2014 annual report, released in January 2015, daily radio listening averaged 3 hours and 1 minute, 2 minutes fewer than in 2013. Total reach was 76%. Platforms are shifting quickly: FM listening dropping to 86% of all platforms from 94% one year on, online listening dropping to 10% from 12% and - in line with the times - listening via mobile platforms growing to 12% from 8%.

Platform shift accompanying the arrival of streaming audio services have affected thinking among Finland’s radio broadcasters, as they have everywhere. Revenues for streaming services surpassed those for physical music products, once known as CDs, for the first time this year. “People can find Finnish artists on the streaming services,” said NRJ Finland station manager Tomi Saarinen, quoted by YLE (August 20). He noted that Spotify employs specialists in Finnish music. “Users can immediately find the most interesting Finnish artists so, of course, it feeds consumer behavior.”

Spotify’s free service ranks 6th against commercial radio channels among 20 to 49 year olds in Finland, according to a TNS survey commissioned by Spotify (September 2015). In Sweden Spotify Free ranks 3rd against commercial radio channels. Streaming audio services are popular among young people welded to mobile devices and Finland is home to Nokia.

Unlike Scandinavian neighbors, interest in Finland for the DAB digital radio platform was never strong. Public broadcaster YLE began DAB digital radio “experiments” in the 1990’s, when most all public broadcasters jumped onto the bandwagon. In 2005 YLE discontinued its DAB broadcasts and all use of DAB disappeared in 2007. Limited DVB-T usage (set-top boxes) still exists.

The June-August Finnpanel national audience estimates, summer listening perhaps less representative, shows YLE national general interest channel Radio Suomi the clear leader with a 31% audience share, lower year on year from 32%. Finnpanel surveys persons 9 years and older presenting 3-month average data monthly. Culture and current affairs channel YLE Radio 1 ranks 3rd with 8% audience share. Youth-oriented channel YleX ranks 7th, 4% audience share from 5% year on year. News channel YLR Puhe ranks 9th, up year on year to 3% audience share. Swedish-language channels YLE Vega and YLE X3M were unchanged.

Commercial channel SuomiPOP ranks #2, unchanged at 9% audience share. The pop music national channel is owned by Nelonen Media, the broadcasting subsidiary of the Sanoma media house. Nelonen Media also owns rock music channel Radio Rock, ranking 6th nationally, adult/contemporary Radio Aalto, relatively new dance/hip-hop Loop and two local Helsinki stations. SuomiPOP and Radio Rock were acquired in 2012 when Ireland-based Communicorp exited Finland.

Loop was licensed and launched in 2013, making it the newest of Finland’s national commercial channels. The channel appeared about the same time newspaper Helsingin Sanomat, owned by Sanoma, relieved itself of primary shareholding in Radio Helsinki, a local and rather eclectic station. It seems a shareholders agreement gave the station’s founders rights to determine directions. “Reaching profits with the current concept has proven impossible,” said the company at the time. Media watchers in Finland predicted Radio Helsinki would close.

Alas, it’s still on the air, operated by ten full-time employees and 60 volunteers. This summer more than €350,000 was raised - crowd-funding, of sorts - to keep it going. Shares in the station were offered to the general public. About 1,700 paid €150 per share, most one or two.

More than €350,000 was raised this past summer - crowdfunding, of sorts - to keep rather ecclectic Radio Helsinki on the air. The effort even attracted the attention of Forbes magazine (August 31). “Big money people were laughing at us,” explained producer Aleksi Pahkala. “Why would we buy it? We are not going to get any profit from it.” About a quarter of Radio Helsinki’s audience is online.

Fourth ranked nationally is Radio Nova, Finland’s first licensed nationwide commercial channel. Audience share for the full-service channel dropped to 7% from 9% year on year. Radio Nova is principally owned by Swedish media giant Bonnier through the MTV Oy subsidary.

Bauer Media officially took possession of SBS Discovery stations Iskelmäradiot, Radio City, The Voice plus local stations Radio Pooki and Radio Jyväskylän along with various web portals in July. Pop music Iskelmäradiot is ranks 5th in the most recent Finnpanel audience estimates, Radio City and The Voice further down the list. Bauer Media acquired all the Scandinavian radio assets of Discovery Communications, which preferred to concentrate on the television business.

Long part of Finland’s radio scene is the iconic French broadcaster NRJ Group, operating NRJ and Nostalgie franchises. NRJ was down a bit to 10th ranking and Nostalgie up a bit. General manager Antti Pakkala was relieved in July with duties transferred to NRJ Group director of international operations Olaf Hopp, who manages German operations. Tomi Saarinen was named manager for the Finland stations.

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Media in Scandinavia

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