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The annual German media festival Medientage Munich wound down this week after the wise and the well-known offered views of that great 21st century challenge - digital disruption. On the lips of all were Facebook, Google, Amazon, Apple and Netflix, just like last year. This left little space for radio.
Radio did, as always, have its day; less than sunny. "Radio is an under-appreciated medium,” said Bauer Media managing director for radio and TV Carsten Schüerhoff. “Audio-only is no longer enough,” said bigFM/RPR1 CEO Kristian Kropp. ”Radio has disappeared from the radar of young people,” said former Energy Germany program director Martin Liss. (See more about media in Germany here)
For private-sector radio broadcasters this digital disruption feels like 1985, year the privately-owned radio broadcasting appeared in Germany, said law professor Thomas Hirschle. The duel public-private broadcasting system, he said, remains lopsided. The vast and well-funded German public broadcasting system is secure while “financing for private providers is still pending.”
“With the regulatory policies of the last century we cannot start a digital future,” offered private broadcaster association VPRT radio department chairperson Klaus Scrunk. He asked for a new State Treaty to include radio broadcasting. (See VPRT statement here - in German)
The bottom line is, of course, the bottom line. “If we want to keep up, we need to generate more money,” said Radio Hamburg (RTL) CEO Carsten Neitzel. And there you have it.
It was deft footwork that gained Petra László, that woman with the video camera at the refugee camp in Hungary last month, certain worldwide notoriety. Video taken by RTL Germany reporter Stephan Richter of her tripping a man with a child and kicking at others went viral, becoming a quite visual statement about the treatment of refuges in Hungary. (See earlier story here)
Online TV channel N1TV, associated with the far-right xenophobic Hungarian political party Jobbik, almost immediately distanced itself from the clammer and terminated Ms László’s employment. And she’s facing a court date next month, charged with hooliganism. None of the widely expressed outrage affected the Hungarian government, which has strung razor-wire around the country.
“I’m sorry that it turned out this way,” she said to pro-government Russian daily newspaper Izvestia (October 20), an interview that also went viral. She wants to sue the guy she tripped. She wants to sue Facebook. She wants to move to Russia. “I can definitely say that my life is ruined. It’s unlikely that I will be able to find a job and do what I like the most.”
A day later her husband, not otherwise identified, told pro-government Hungarian daily Magyar Nemzet (October 22) no lawsuit will be filed against Osama Abdul Mohsen, the tripped Syian now working as a trainer with Spanish football club Getafe. As for Facebook, they’re “thinking about it.” He wants to prove his wife’s innocence as “a matter of honor.” They blamed western news outlets for being unable to properly translate the Izvestia interview.
The irony is inescapable.
Ad forecasts are, if anything, measures of confidence. What’s hot and what’s not are dutifully noted. A forecast for the German market, released this week, reports ad spending to break records this year. Details show how that can be.
German private broadcasters association VPRT in its annual market forecast sees €10.2 billion in sales this year, up 5,5% over actual 2014 figures. VPRT Chairman Tobias Schmid, revealing all at the Munich Medientage, called it “impressive.” That it is; even more so for obvious shifts in revenue sources.
Advertising, broadcast and online, is expected to rise 3.2% year on year to €5.456 billion. That would be 53.5% of total sales. TV advertising, always the biggest piece of the revenue pie, should bring in €4.399 billion, up 2.5%. Traditional radio ads forecast unchanged at €740 million. (See more about media in Germany here)
The shift is clear: video advertising streamed online is expected to rise 23% to €307 million and with audio ads up 26% to “around” €10 million. The VPRT forecasts are based on the evaluations of industry executives. (See VPRT presser here - in German)
“We observe the greatest percentage growth in the field of on-demand services,” said market development VP Frank Giersberg, in a statement, “the largest absolute growth in the field of linear offerings that continue to be by far the strongest sales segments. Revenues for subscription audio services (read: Spotify, et.al.) should rise 25% to €464 million while subscription video services (read: Netflex, et.al.) will bring in €229 million, up 13%. Pay-TV revenues are expected to rise 8.3% to €2.257 billion. In July VPRT projected German pay-TV revenues for 2015 at €2.4 billion.
The Voice has been one of the more enduring radio brands in Scandinavia, launched in Denmark in 1984 then on to Sweden, Norway and Finland. Music TV channels with the same brand name followed. Then there’s that competition reality show.
Ownership changed from SBS Radio to ProSiebanSat1.Media and now Bauer Media. The TV channels are gone. The Voice as a broadcast brand is showing signs of age.
In Norway The Voice is no more. FM distribution scattered across the country was divided up between The Beat, Radio Rock and Radio 1. The TV channel closed in 2012. For a short time The Voice was available in Oslo on the DAB test multiplex. That and the online service are now gone, confirmed Bauer Media (Norway) program director Kristoffer Vangen to radionytt.no (October 20). (See more about media in Norway here)
The Voice continues on radio in Denmark, Sweden and Finland - all with slight format variations of dance music.
Three months ago AFP correspondent Esdras Ndikumana, who also works for French international broadcaster RFI, was arrested and beaten by Burundi’s National Intelligence Service. He’d been reporting from the scene of yet another assassination in the east African country torn by conflict. AFP and RFI protested.
A spokesperson for President Pierre Nkurunziza, nearly two weeks later, "condemned this violent and unacceptable behavior,” promised to investigate and hoped the beating wouldn’t “harm the good relations” with media organizations, reported AFP (August 13). Since President Nkurunziza launched a campaign seeking a third term, which he controversially won, local and foreign media workers have either kept a low profile or departed for safety. Mr.Ndikumana left Burundi for medical treatment in France. (See more about media in Africa here)
Since the initial response there’s been “a lack of action,” said a joint statement from AFP and RFI (October 19). The organizations have filed a complaint with Burundi’s supreme court of justice against “persons unknown.” (See AFP/RFI statement here)
State broadcaster RTNB cameraman Christophe Nkezabahizi, his wife and two children were killed in their home by security forces earlier this month. The Union of Burundian Journalists (SJB) said Mr.Nkezabahizi was “targeted for being a media worker,” quoted by allafrica.com (October 16).
The household license fee, with variations, is the most widely used means of financial support for public broadcasting. It is not, usually, voluntary. Compliance varies from country to country.
Italian householders are required to pay €16.66 six times a year, appearing on electricity bills. Some go through very creative efforts to evade payment so the government trying to close some of the most popular loopholes. Under the new rules electric utilities will report non-payment to an “integrated system,” according to a parliamentary document disclosed by primaonline.it (October 20).
One common avoidance scheme is the old post office trick. Utility bills can be paid at post offices in Italy (and other countries). By using a blank payment slip it’s easy to only pay the electricity part of the bill. Under the proposed new rules the electric utility - there are 461 different ones in Italy - reports the deficiency to the Agenzia delle Entrate - the tax collector - or faces a €30 per occurrance fine. Those householders caught deceptively claiming not to have a TV set, radio, computer, tablet or mobile phone capable of receiving content from public broadcaster RAI will be fined €500 for the first occurance and the possibility of criminal charges thereafter. Oh, and no more trying to change electricity utility without paying the public broadcasting license fee.
German householders pay about twice as much as Italians, €17.50 per month, to support the different public broadcasting organizations. Typically, bills arrive in the post, then reminders, then more reminders. “Only after the last step is there a request for enforcement,” said an ARD spokesperson, quoted by tagesspiegel.de (October 13).
And enforcement is the duty of each State tax office. In Berlin-Brandenburg skipping the license fee payment is increasing. The tax office, after just so many polite requests for payment, resorts to the boot. Yep, that bright yellow tire-clamping device is installed, removed only after payment is made. Ouch…
Possibilities being endless, competition for newly offered digital TV (DTT) licenses is intense and sometimes brutal. The winners are, of course, pleased. Losers are left fuming while State authorities wait for the inevitable appeals and lawsuits.
Spain’s Ministry of Industry announced last week the award of six DTT channels, one each going to Altresmedia, Mediaset Espana, Real Madrid football club, Grupo Secuoya, 13TV and Radio Blanca. The first three are getting HD channels. All have six months to fire up their new TV services and another year to organize national coverage.
In every TV license contest there are those who, for one reason or another, fall short. Bids from Grupo Prisa, Vocento and supermarket chain El Corte Inglés were rejected. “The conditions were the same for everyone and were considered using the same criteria,” said Industry Minister Jose Manuel Soria. (See more about media in Spain here)
Grupo Prisa executives are not taking this rejection quietly. They have this week requested the National Commission for Markets and Competition (CNMC) suspend the DTT HD license awards to “safeguard free competition and pluralism in the television market, avoiding irreparable prejudice as a result of awarding these licenses to Mediaset Espana and Altresmedia,” said the company statement, quoted by elEconomista.es (October 20). The complaint notes that Mediaset Espana already has seven TV channels and Altresmedia six which together capture 86% of the TV ad market. Public broadcaster RTVE operates five channels.
Grupo Prisa has substantial media holdings, including major daily newspapers El Pais and Cinco Dias, top ranked national radio channels Cadena SER, Los 40 Principales and five more. Prisa TV is a significant pay-TV operator. The company indicated further challenges to the DTT awards would be lodged with Spain’s Supreme Court and the European Commission. Grupo Vocento, publisher of daily newspaper ABC, called the decision “political,” noting contentious relations with Prime Minister Mariano Rajoy.
Media ownership transfers in Eastern Europe are, still, instantly controversial. Media watchers always want to identify new owners, checking for anything unseemly. There has been, it seems, a change at Hungarian commercial broadcaster TV2.
Last week new owners appeared, Megapolis Media Zrt. acquiring 100% of TV2 Media Group Holdings Kft. A “closing” of a transaction was announced, striking some as odd since regulatory approval or, even, involvement wasn’t mentioned, reported news portal 444.hu (October 16). Another problem is the coincident purchase and sale agreement between the current owners and a different company, Magyar Broadcasting Co. Zrt., principally owned by famous Hollywood film producer Andy Vaina. (See more about media in Hungary here)
Megapolis Media, principally owned by Károly Fonyó, promptly fired director Zsolt Simon and Yvonne Dederick from their executive positions, though allowed they might stay on ”for a few days.” An agreement dating from September last year gave Megapolis Media a purchase option in return for €1 million, which it exercised. The earlier buy-out agreement with PS71 gives it some rights to a subsequent transfer when loan covenants are not met and, according to origo.hu (October 15), PS71 may have concluded an agreement with Mr. Vaina.
At a press conference, reported the Budapest Business Journal (October 18), Mr. Vaina introduced new company CEO, Dirk Gerkens. He’s former RTL Klub general manager dismissed by RTL Group as part of an agreement with the Hungarian government to roll back enforcement of a tax on ad revenues widely viewed as a political decision to drive out remaining foreign-owned media. Like most surviving Hungarian media outlets, TV2 is widely considered government-friendly.
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