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ftm Radio Page - April 20, 2012

Audience Rejects Bland Campaign Coverage
reject The audience can be cruel and unpredictable. Just when programmers detect a trend it disappears into thin air, the atmospherics of time and place. There is, though, always opportunity to reinvent.

 

Death, taxes and transmission fee increases
Broadcasters suffer

There are costs to broadcasting that often escape the general public’s notice and, it seems, policy makers. One is transmission cost, the fees paid for transmitters, towers and everything in between. More times than not these fees are paid to subsidiaries of incumbent telecoms.

The German Federal Network Agency (FNA), which oversees these things, raised transmission fee rates to private-sector broadcasters April 1st by 2% without notice. This has caused “suffering,” said private broadcasters association VPRT:

"The new framework may influence… future conditions for the development of radio via FM and DAB+,” said VPRT vice president of radio Klaus Schunk in a statement (April 19). (See full statement here – in German) “Monopoly pricing conveys the imbalance in the dual system because private (broadcasters) have to suffer cost increases much more than the ARD (public broadcasters.)”  (JMH)

Competition authority extends review of radio deal
Billionaires shrug

Russia’s Federal Anti-Monopoly Service (FAS) has extended its review of a bid by Siberian Business Union (SBU) to take over radio operations of Prof Media, reports Kommersant (April 17). Interested parties have two extra months to submit information to the FAS “about the impact on competition of the transaction,” said FAS Deputy Director Andrey Kashevarov. SBU applied in March to the FAS for approval to acquire Prof Media Broadcasting Corporation (VKPM), owner of four major radio channels including Avtoradio.

The transaction would give SBU control over more than 30% of Russian radio ad sales, suggests Kommersant. At the end of last year SBU acquired Europa Media Group (EMG), the radio assets of Lagardère, for €123 million. With that deal came ad sales house Media Plus, which also represents radio channels owned by Gazprom Media. EMG’s 2011 ad revenue was estimated by Russian Association of Communication Agencies (AKAP) at RUB 1.9 billion (about €49 million), 16% of total radio ad sales. ProfMedia’s radio ad sales were estimated at RUB 1.8 billion (about €46 million), 15% of the grand total. Adding in the revenue from Media Plus would tip the share of radio ad sales over 35%. (See more on media in Russia here)

Mining billionaire Vladimir Gridin principally owns SBU. Billionaire banker Vladimir Potanin principally owns Prof Media. Gazprom Media is owned by natural gas conglomerate Gazprom.

On learning that the FAS is looking more closely, a spokesperson for SBU said the Prof Media deal “is not particularly interesting.” (JMH)

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