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The Tickle File is ftm's daily column of media news, complimenting the feature articles on major media issues. Tickle File items point out media happenings, from the oh-so serious to the not-so serious, that should not escape notice...in a shorter, more informal format.

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Week of August 3, 2015

Small but obvious chinks taken from big broadcaster’s armor
A little Sunshine in your radio

Fragmenting markets are frustrating for some broadcasters as much as opportunity for others. Big national general interest channels, generally, fight off regional and niche competitors with brand strength, market power and, not to forget, money. But, where licensing rules cooperate, the “big station” becomes the big target.

Recently released JNLR audience estimates for Ireland were unkind to national private radio channel Today FM. It is a full-service contemporary music channel owned by Communicorp, Ireland’s biggest private sector broadcaster. For the period June 2014 through July 2015 in the rolling quarterly average Today FM dropped to 7.9% market share among persons 15 years and older between 7h00 and 19h00 Monday-Friday from 9.2% one year on. Irish media watchers pointed to late morning show host Ray D’Arcy leaving Today FM earlier this year for public broadcaster RTE. Today FM remains in second place nationally and 5th in Dublin.

RTE is not a cautious competitor, either for ratings or commercial revenue. RTE Radio 1 has been top ranked forever. The largely news and talk channel slipped to 21.9% market share from 22.7% year on year, continuing a slow but steady decline nationally. Its Dublin market share has not, at all, been shaken; 33.8% up from 33.4%. (See Ireland national radio audience trend chart here)

RTE 2FM, which competes directly with Today FM, placed 3rd, again, bumping up to 7.1% market share in the national audience estimates from 6.6%. National private channel Newstalk, the name describes it, also saw an increase, 6.6% from 6.1% one year on. RTE’s arts and culture channel Lyric FM was up a bit to 1.9% market share. National radio channels, on aggregate, dropped to 45.9% from 47.1%.

This meant regional and local stations were up; 54.1% aggregate market share from 52.9% year on year. In the Dublin survey area several local stations took hits. FM104 - number 2 in Dublin - was off, 11.1% market share from 11.6% Newstalk was up slightly to 10.3% for 3rd place. Spin 103.8 was unchanged at 7.1% for 4th spot. The original Communicorp station - 98FM - bounced up to 6th place with 6.4% from 5.9% market share. Still sliding, Q102 dropped to 7th with 5.2% market share from 6.9%. Five years ago Q102 was 3rd in Dublin with a 10.2% market share. Also sliding was RTE 2FM, 4.5% from 4.9%. (See Dublin radio audience trend chart here)

The noticable winner was easy listening Sunshine 106.8, once a pirate, jumping to 4.0% in Dublin from 2.5% year on year. Local rock music station Radio Nova placed 10th, down a bit to 3.5% market share.

Where politicians go money flows
more than a bucket-full

Spain’s public broadcaster RTVE will be getting a substantial financial boost next year as the government raised the budget allocation to €331.5 million, up 17.8% from the 2015 allocation. In addition, the government will contribute €61 million to debt financing costs. Total annual State budget contribution has been frozen at €292.7 million for the last three years.

Costs of broadcasting the Rio de Janeiro 2016 Summer Olympic Games as well as upgrading the RTVE headquarters building and technology centers received specific attention. Olympic Games rights, transmission and production for RTVE are estimated at a bit more than €100 million. Total 2016 operating revenue is forecast at €922.45 million, which includes an expected increase in the special value added tax (VAT) contributed by commercial broadcasters and telecoms. (See more about media in Spain here)

A recent report by the International Press Institute (IPI) concerning public broadcasting in Spain criticized a lack of political independence at RTVE. “The new president of RTVE (José Antonio Sánchez) has boasted of his affiliation with the PP (People’s Party) and has overseen placement of government supporters… in key positions,” said the report, quoted by El Mundo (July 31). “The (political) right denies there is a problem or that freedom of expression is under threat. The (political) left looks at the same facts and makes an opposite conclusion.”

Lots of headroom in digital receiver sales
more channels might help

With new channels entering the airwaves digital radio in the Czech Republic will almost certainly enjoy a growth spurt. A new high-power DAB multiplex goes on the air this week serving the Prague and Central Bohemia regions. All digital radio in the Czech Republic, some Band III and some L Band, is considered experimental.

Unsurprisingly, the Czech public hasn’t exactly been clamouring for DAB receivers. Market research agency GfK estimates about ten thousand sold, reported news agency CTK (August 2). “Sales of radio receivers capable of receiving DAB are still quite low,” said GfK spokesperson Andrea Winklerova. “The share of total radio receiver sales in the Czech Republic is less than one percent.” (See more about digital radio here)

Two factors hindering DAB receiver sales - both obvious - are price and consumer awareness. DAB receivers in the Czech Republic cost about 50% more than traditional radio receivers. And, too, online radio services are notable competition; lots of folks already have a smartphone. GfK notes that automobile sales account for a significant portion of DAB receiver uptake as many new models are shipped with dashboard receivers that include DAB capacity.

Secret secret-hunting revealed, reporters escape - UPDATED
knowing one is better than being one

The digital century has been filled with revelations taken from secrets held those who want their activities under cover. Secrets are not always nefarious but in the Wikileaks era perception is reality. A dark-side lurks, unaccountable. The stories make for wonderful novels and great movies, unless censored.

After it became known that the German Federal Prosecutor’s Office had opened an investigation of digital rights news portal netzpolitik.org other agencies of the German government rushed into damage control. According to investigations published by newspaper Süddeutsche Zeitung (August 3), followed separately by public broadcasters NDR and WDR, Germany’s domestic intelligence service (Bundesamt für Verfassungsschutz - BfV) in mid-May concluded that netzpolitik.org had illegally published State secrets by citing classified documents concerning BfV monitoring of internet activity, especially social media.

The Federal Prosecutor’s Office deemed this treasonous, not a term usually tossed around lightly in Germany where state monitoring of individuals is taken very seriously. (See more about media in Germany here) The last German prosecution of a media outlet for treason by revealing state secrets was in 1962. It was dismissed.

The Federal Justice Ministry, according to the aforementioned reports, “warned” Prosecutor General Harald Range not to pursue charges of treason against two netzpolitik.org reporters because of constitutional press freedom protections. Essentially, Justice Minister Heiko Maas “instructed” Prosecutor General Range to halt the procedure. And he did but not without a few choice words about “intolerable interference with the independence of the judiciary,” in a press statement reported tagesspiegel.de (August 4), and press freedom not being “without restrictions.” (See more about online news here)

The incident, at least revelations thereof, put political wrangling into hyperdrive over State secrets versus press freedom. For netzpolitik.org, well regarded for its reporting, it has been an unexpected gift. Thousands of individuals have joined online petitions of support and some have contributed, about €50,000 since the fury broke last week.

UPDATE: That was quick. German Justice Minister Heiko Maas “hastily” called an evening press conference, reported Deutsche Welle (August 4), and delivered the coup de grace to Prosecutor Harald Range.“The remarks and the chosen course of action by the federal prosecutor today are not comprehensible and give the public a false impression,” he announced. "I have told federal prosecutor Range that my trust in his ability to fulfil the office has suffered lasting damage and therefore, in agreement with the Chancellery, I will request his retirement today.” A new prosecutor was named who will decided whether or not to pursue netzpolitik.org.

Austerity cuts international broadcaster
deadline strikes

Failing to find a buyer, the government of Serbia closed International Radio Serbia. A July 31st deadline had been set to close nearly all state funded broadcasting outlets that could not be privatized. International Radio Serbia offered broadcasts in 12 languages via shortwave and online.

The 96 employees were notified and given a severance, reported uns.org.rs (August 3), the website of the Association of Journalists of Serbia. "Serious analyses and recommendations of renowned experts that this type of global radio service is something Serbia needs to present itself in the best way, that no serious country gives up on this kind of promotion and we could say, cheap but efficient diplomacy, have all been in vain,” said their statement. Some former employees, it seems, intend opening an online radio service. (See more about media in Serbia here)

International Radio Serbia, also known as Voice of Serbia, was the successor to a line of international broadcasters beginning with Radio Belgrade in the 1930’s when Yugoslavia was a kingdom to “defend itself from hostile propaganda.” After a period of silence during World War II while occupied by German forces Radio Yugoslavia emerged as the country’s international voice. It has been operated by state broadcaster Radio Television Serbia (RTS) since 1992 when the government of dictator Slobodan Milosevic fell.

Netflix-effect and the license fee
part of the package or not

A significant portion of Danes, happy as they are, would be happier choosing which public broadcasting services they pay for. A public opinion survey commissioned by and reported in daily newspaper Jyllands-Posten (J-P) (August 2) showed 62.8% of Danes would like to opt-out from license fee payments proportionate to services used. The idea is similar to one proposed by the minority right-wing Liberal Alliance political party in June.

“We’re in a period with Netflix in the marketplace where for the first time consumers have some alternatives to the old way they watch TV,” said Zibra Digital Media Group analyst Claus Bülow Christensen, quoted in the J-P article. “It has become much more diversified and there are a great many bargains.” The survey showed 40% of Danes subscribe to one or more streaming services. In a similar survey last year 51% of Danes supported replacing the public broadcasting license fee with a subscription mechanism. (See more about media in Denmark here)

Other right-wing political parties, led by Venstre and the Danish People’s Party, broadly favor cuts to public broadcaster DR and license fee support. Centrist and left-wing parties favor license fee status quo. While improving its parliamentary position in the June general election, the center-left Social Democrats were unable to form a government leading to a take-over by a coalition of right-wing political parties. Jyllands-Posten, noted for publishing in 2005 the infamous cartoons of the Prophet Muhammad, general toes a center-right line editorially.

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