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Norwegians aren’t known for showy display or mincing words. The gush of international media attention following their Culture Ministry’s announcement last week about curtailing FM broadcasting in favor of the DAB digital radio platform brought a few snickers about errors and embellishments. For some DAB is just a joke and in Norway jokes aren’t necessarily a laughing matter.
Supporters of the DAB digital radio platform succeeded in getting the press release to all the right people through a slow-news weekend. Norwegian radio industry news portal radionytt.no (April 21) pointed out a few highlights from “first country to go fully digital” from the Guardian (UK), “the newspaper that generally is positive to the digitization of radio,” to the BBC reporting the global radio industry will be “nervous” about FM switch-off. Another BBC report said the transition to DAB in Norway will encourage other countries to take the same route without mentioning governments in Sweden and Denmark hesitating or, perhaps more significantly, the BBC’s financial involvement in DAB technology. But there they were, from CNN, Forbes, Time, Newsweek, Welt, La Figaro, El Mundo and every technology news portal with remarkably similar language; FM is so last century and digital radio is inevitable, except in the US. (See more about digital radio here)
In truth the Norwegian Parliament will have the last word on FM shut-down and the Culture Ministry’s proposal excludes the country’s 200 local FM stations outside the four biggest cities.
Not all the techie-tribe is enamored. “DAB is just as stupid as WAP (Wireless Application Protocol) once was,” said Google Norway CEO Jan Grønbech, quoted bluntly by Kampanje (April 21). “I am most worried about the end user. If the FM networks are shut, I think they will get a nasty surprise. I fear a lot will not listen to the radio anymore.”
The Médiamétrie audience estimates for Il-de-France (IDF - Greater Paris) released this week could have only surprised those not paying attention. Events in France from early in January through the end of March, often in or near Paris, quite clearly affected listener behavior as the national survey released the week before showed. Audience share changes year on year were exceptional. (See more about recent French national radio audience here)
News and information channels markedly gained over the same period last year. RTL and France Inter, national channels and standard bearers for news coverage held the top two places in the IDF rankings; RTL to 13.2% audience share from 10.9% one year on and public radio France Inter to 12.0% from 10.8%. RMC moved into 3rd position with 8.1% audience share, up from 6.8%. Europe 1, more talk than news, fell to 7.5% audience share and 4th place from 9.3%. (See Greater Paris audience trend chart here) All-news France Info placed 6th and increased audience share to 4.9% from 4.2%. Paris regional public station FIP took 9th position; 2.6% audience share from 1.9%.
Both hit music channel NRJ and rap channel Skyrock lost audience share. NRJ held 5th position on 5.2% audience share, down from 6.1% year on year. Skyrock remained in 7th place while dropping to 3.6% audience share from 4.1%. On a different side of the musical spectrum Radio Classique dropped to 2.3% audience share and 10th spot from 3.7% and 8th place. Cherie FM slid to 2.0% audience share and out of the top ten from 3.2%.
Radio Latina remained the top rated local station, up slightly to 2.7% audience share and 8th position. In addition to FIP, local stations Radio FG, Voltage and Evasion saw audience share gains.
Overall, audience reach was significantly lower, 75.7% from 78.2% year on year. Aggregate audience share for private commercial national channels and local stations was down to 71.0% from 74.1%. Public broadcaster Radio France, perhaps affected by union industrial action in the final week of the survey period, posted aggregate audience share of 25.2%, up from 22.5%. The April-June period will include three weeks of public radio disruption.
Denmark’s public broadcaster DR added digital platform DAB to its distribution compliment for regional network P4 at the first of March. In audience estimates thereafter, DAB+ listening counted 2%, internet 7% and FM 91%. For all radio listening in Denmark, the digital share - DAB and online - is about 13%.
P4 is a network of 10 regional stations, pop music with national news and local cut-outs. On aggregate the P4 stations reach 55.4% of listeners in Denmark, according to TNS Gallup, and hasn’t changed much in years. DR was an early adopter of DAB distribution, all main channels available plus seven digital-only channels. The Danish government recently pushed-back plans to switch-off FM distribution. (See more about media in Denmark here)
“Usually DR’s DAB channels make up about 65% of all DAB listening, said DR research director Dennis Christensen, quoted by mediawatch.dk (April 21). Online listening to P4, he said, is “rare” but he expects the DAB share to grow “as much” when P4 listening “becomes more digital.”
Italy’s public broadcaster RAI may be forced to float its majority stake in infrastructure provider Rai Way after a bid from Mediaset encountered a negative reaction from Italian authorities. Mediaset, principally controlled by the Berlusconi family, had designs on merging Rai Way with its infrastructure company El Towers, creating in effect a monopoly. Mediaset said it was ready to offer €1.2 billion for Rai Way, music to the ears of a government looking for way of reducing debt. Government stakes in the postal service and railway system are also for sale.
Mediaset withdrew its bid last week, mostly to avoid political wrangling, but the quest for Rai Way is “not over,” said board member Gina Nieri, quoted by Il Sole 24 Ore (April 20). “Like all things that make sense, sooner or later it will be done.” The Ei Towers board adopted an “exceptional” dividend distribution, reported Il Sole 24 Ore (April 21), to redistribute cash on hand held for the Rai Way bid back to shareholders. Ei Towers CEO Guido Barbieri said it’s “not a goodbye,” quoted by Reuters (April 21) (See more about media in Italy here)
Broadcast infrastructure - towers and transmitters - is a good business. Customers sign long-term contracts, costs are low and potential investors have cash. Italian Economy Minister Pier Carlo Padoan wants the government, through RAI, to maintain majority control of Rai Way, currently 67%. Telecom Italia, through its mobile infrastructure company Inwit, could also make a bid. Or there could be a multi-party bid including private equity. The opportunities are endless.
National music quotes for radio channels have long been contentious, particularly from private commercial broadcasters. Where a certain percentage of music played is set aside considerable support for the legal remedy comes from the national music business. A 20% domestic music quota for radio enforceable next year proposed by the Slovak Culture Ministry was subject of an on-air protest by one broadcaster.
Last Friday, Slovak dance music channel Europa 2 responded to the government proposal by staging an attention-getting full day of Slovak music. "We want to provoke a wider debate about whether the quotas are a good solution for the promotion of the domestic music scene or counterproductive,” said Europa 2 director Jitka Fürst, quoted by radio.sk (April 17). “I see no reason why a law should go beyond the scope of a valid license and dictate what percent a station’s music must be, in particular commercial stations.” Europa 2 is owned by Lagardére Active Radio International (LARI), being a French broadcaster quite familiar with music quotas. LARI also owns Evropa 2 in the neighboring Czech Republic, not subject to music quotas.
Domestic music quotas are not uncommon, the most well-known in Europe is the French 40% origination rule. The proposed Slovak rule would require privately owned stations to broadcast 20% domestic content from 2016, increasing to 25% in 2017, per calendar month. To be considered Slovak content a musical selection must, if vocal, be sung in the national language plus have at least one author or artist a Slovak national or permanent resident. In addition, the proposed quota system applies to hours between 6h00 and midnight and the musical item must be less than two years old. Certainly there will be adjustments for classical music stations.
“Of course we’re interested in playing high-quality Slovak music,” said Mr. Fürst. “If they want to prescribe a percentage, perhaps they should tell to bakers to produce 80% dark bread because it is healthier.”
Citing financial issues, the Montenegro newspaper Blic has been closed. Owner Ringier Axel Springer indicated debts and employee claims would be settled. Montenegro Blic began publication in June 2012.
The media sector in Montenegro is under considerable stress, notes Balkan Insight (April 16). In recent months publishers and broadcasters have shed 150 media workers, roughly 10% of the country’s total media work-force. The Montenegro Union of Journalists called the current situation “suspicious.”
In neighboring Serbia media watchers noted the dismissal of the well-known political editor of weekly newspaper NIN, also owned by Ringer Axel Springer along with Serbian daily Blic. “I think this is pressure which will spread across the company so anyone can be dismissed regardless of his or her position,” said Antonela Riha, quoted by BIRN (April 18), who had been with the newspaper about two years. During the rule of Yugoslav dictator Slobodan Milosevic Ms Riha worked for legendary B92 radio station.
Ringer Axel Springer is the joint-venture of big Swiss and German publishers. In recent months the company has disengaged from Eastern and Central European assets to consolidate operations in Switzerland and develop the online portfolio. Last week Ringier Axel Springer acquired Hungarian jobs portal profession.hu.
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