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ftm Radio Page - January 15, 2016

Creativity not limited to the screen
“most interesting”

Complex arrangements among media enterprises, financial and otherwise, are now accepted practice. This century’s digital dividend has yielded, if anything, clever accountants and smarter lawyers. Everybody wins, particularly the later.

A new one was announced this week, Dutch media house Telegraaf Media Groep (TMG) and media genius John de Mol forming a new company. It is, essentially, a radio deal. Sky Radio, Classic FM and Veronica from TMG will be combined, regulatory approval pending, with Radio 538 and Slam FM into Talpa Holding. John de Mol, who sold Talpa TV last year to ITV for €500 million, will have a 77.2% stake in the new company with TMG holding 22.8% and investing €27 million in the new company. Last year the Dutch Ministry of Economic Affairs allowed that individual companies could own more than four FM radio stations, the new rule effective January 1st. (See more about media in the Netherlands here)

“I find radio the most interesting medium that exists,” said Mr. de Mol in a statement, quoted by adformatie.nl (January 15). “It is interactive, dynamic and always live and advertisers can be on the air in an hour. Everyone may see me as a TV man but my career began in radio and that’s where my heart still lies. By broadening the ownership limitation… the road is open for the consolidation of the radio industry and we can realize our dream to create a strong radio business.”

Mr. de Mol bought Radio 538 in 2005, sold it and TV assets to RTL Group in 2007, retaining a small stake. When he and Finnish publisher Sanoma acquired the Dutch assets of ProSiebenSat1.Media in 2011, renamed SBS Broadcasting, he sold his stake in RTL Netherlands back to RTL Group, keeping Radio 538. Are you with me so far?

Newspaper publisher TGM is in this for a 15% stake in the SBS Broadcasting TV assets; SBS 6, Veronica TV and Net 5. “We are taking an important step in the dutch TV landscape that is very fast moving,” said TMG CEO Geert-Jan van der Snoek. The company previously announced plans to develop two online (OTT) TV channels this year. In an advisory note to stock traders in December TMG indicated organizational restructuring would be completed in 2016 and the costs would be reflected in negative results for 2015 “as previously communicated.”

Everbody transitioning to digital, some prefer square devices
“not so conservative”

Digital-only radio channels have caught on. Danish public broadcaster DR, in a research note released this week, credits the rise in listeners to the P5 channel to a shift in programming as much as older listeners embracing the DAB platform. P5 is a digital-only channel targeting older listeners. Last year programs popular with older listeners on regional network P4 were moved to P5. Listeners moved with them. Listening to P4 stations, historically available on the FM platform, fell.

"The restructuring of P4 and P5 must be said to be quite successful and also helps to demonstrate that radio listeners are not so conservative that change cannot be done,” said DR audience research director Dennis Christensen. DR has experimented with digital-only radio channels for several years and currently offers four mixed platform channels and four DAB-only channels. The Media Trends 2015 report noted that listening to public radio channels, including semi-public Radio24Syv, on “other than FM” rose in 2015 to 31% of the measured audience from 29% in 2014.(See more about media in Denmark here)

"Listening growth among Danes, however, is not equally distributed,” he said. “While listening among young people under 30 years of age decreased, all age groups over 30 increased their listening time. It is perhaps not so surprising as Radio24Syv, P5 and P7 Mix experienced listener growth in the course of the year.” P7 Mix is DR’s DAB-only easy listening channel. Radio24Syv is a privately-owned national news-talk channel operating under a public service license. Last summer one of its show hosts clubbed to death a baby rabbit live on-the-air as a statement about animal welfare, illiciting considerable media coverage.

Government minister pushes digital platform, privatizing public channel not so much
“point of no return”

Digital radio transition in Flemish Belgium received a boost from Media Minister Sven Gatz who wants commercial operators to step up to the DAB+ platform. “The reign of analogue FM radio will still not be abolished,” he said to daily newspaper De Tijd (January 9), “but there will come a point of no return.” He’s planning to introduce a transition timetable this spring.

If the government finds it acceptable no new analogue FM licenses will be granted putting pressure on big regional operators Medialaan (Q-music and Joe FM) and Mediahuis, which operates the Nostalgie franchise with NRJ Group. Regional public broadcaster VRT has been offering radio channels on the older DAB platform along with a few local stations. Commercial digital radio multiplex operator Narkring currently offers DAB+ coverage in the Brussels area and has plans to complete coverage in Flanders next year. (See more about digital radio here)

Minister Gatz also said privatising public broadcaster VRT’s radio channel MNM is less than likely. “If you sell that station, you create a hole (in VRT revenue) that increases every year. As I look at the whole media landscape… a sale of MNM would actually create more problems than it would solve.” MNM is a pop music channel available on FM in Brussels, Antwerp and Ghent as well as regionally on the DAB platform.

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