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Supporters of DAB digital radio platform have lobbied long and hard for coverage competitive with FM distribution. Multiplexes offering digital radio - DAB in some countries, DAB+ in others and something altogether different in France - have sprung to life with a variety of radio channels, often changing. And, so, folks have been buying those digital radio receivers, more often for the kitchen, less often for the automobile.
DAB+ receiver sales in Switzerland hit 382 thousand in 2014 bringing the country's total digital radio receiver supply to 1.9 million, reported Zürich-based digital broadcast development consultancy MCDT (February 26), 250 thousand of which are in automobiles. DAB+ signals now cover 99% of the Swiss population, "the world's highest coverage, except for Denmark and the Netherlands." In the Swiss-German speaking region listeners can find about 60 DAB+ radio channels.
"Compared to FM and internet radio, DAB+ is democratic, economical and environmentally friendly," said MCDT, which has strong ties to Swiss public broadcaster SSR-SRG, a major financial supporter of DAB/DAB+ development. Swiss media regulator BAKOM recently indicated transition from FM to DAB+ platforms will take place around 2024. (See more about digital radio here)
Moving more quickly to digital radio transition are the Norwegians, all but local radio stations to vacate the FM band in 2017. The coverage requirements set out by broadcast and telecom regulator NKOM have been achieved. "If the other criteria are met, Norway is ready to turn off the FM band, as I see it," said executive director Torstein Olsen, quoted by Telemarksavisa (February 17). "The vast majority now have access to digital radio and it's time to also introduce modern technology for this media as wee did for TV in 2009."
The big sticking point remaining in Norway is, understandably, automobile access. Existing digital multiplexes are focused on urban areas highways, particularly highway tunnels, are dead-DAB spots. "Of course, we had hoped that the development went faster here," said Digital Radio Norge managing director Ole Jørgen Torvmark. "The State highways (department) said the tunnels, which currently have FM (repeaters), will be DAB-ready by 2017."
German audience research institute ag.ma released this week top line data on radio listening for the second half 2014. After a week's pause, the details will follow. Until then German broadcasters and certainly media buyers will feast on a significantly leaner market. Radio's daily reach fell by about a million listeners.
Among listeners most coveted by media buyers - 14 to 49 year olds - time spent listening Monday through Friday dropped by 11 minutes compared with the previous survey. Those under 29 years spent 15 minutes less with radio stations, 2 hours 6 minutes, compared with 30 to 50 year olds listening 3 hours 42 minutes. It's a pattern seen across Europe. (See more about radio audience here)
Young people typically resist just about every life pattern established by, well, older people. Forging their own way is, therefore, their way. None of this is new. Plato complained about it once upon a time.
Following the Radio MA 2015 I audience estimates detail by a week will be a new survey of internet listening, presumably where young people will be found.
Egyptian telecom billionaire Naguib Sawiris has acquired a majority stake in TV news company Euronews, first reported by Le Figaro (February 25). Euronews was formed in 1992 by a group of European public broadcasters, organised by the European Broadcasting Union (EBU) and funded in part by the European Commission (EC) to compete with CNN. Over these two decades Euronews, based in Lyon, has been through several changes in shareholding. Last year CEO Michael Peters enlisted investment bank Lazard to identify possible new investors.
Mr. Sawiris, founder of Orascom Telecom and investor in a variety of enterprises, is acquiring a 53% stake in Euronews for €35 million. Public statements, widely reported, indicate the European Commission has given its blessing so long as "European public interest is preserved" and editorial separation maintained. Ubiquitous in European hotel rooms, Euronews is best known, arguably, for its "No Comment" video segment. (See more about TV news here)
The standing of legacy shareholders is unclear. French public TV broadcaster France Televisions has been the largest stakeholder with 23% followed by Italian public broadcaster RAI (21%), Russian State broadcaster VGTRK (17%), Turkish public broadcaster TRT (15%) and Swiss public broadcaster SSR-SRG (9.9%). Neither the BBC nor German public broadcasting have participated. Ukraine's State broadcaster NTU walked away from its 1% stake in Euronews in January, reported Telekritika, for lack of ready cash as shareholders were asked to cover a €17 million short-fall.
Italian media house Arnoldo Mondadori Editore placed a non-binding €135 million bid to RCS Media Group for its book publishing division RCS Libri this past week. The bid was set to expire February 24th but has been extended by RCS CEO Pietro Scott Jovane and Mondadori chairman Ernesto Mauri until March 7th, reported affaritaliani.it (February 24). There are, obviously, a lot of details to be worked out, not least of which might be anti-trust questions as the acquisition would give Mondadori a 40% share of the Italian book publishing market.
The idea of Mondadori, principally controlled by the Berlusconi family, expanding its book publishing realm doesn't sit well with some. About fifty mostly Italian authors, led by Umberto Eco, took to the pages of Corriere della Sera (February 21) to beg "this marriage will not do." RCS Media Group continues to bleed from the balance sheet. Some observers expect the Mondadori bid to rise to €150 million. (See more about media in Italy here)
Big media houses consolidating - and others slimming - is always on somebody's radar. After 21st Century Fox, principally owned by the Murdoch family, failed to entice Time Warner last year media watchers made lists of other potential take-over targets. Moving to the top is Discovery Communications after the Australian Financial Review reported (February 23) that senior executives of both companies met in New York two weeks ago for "nascent" discussions.
Foreign owners of media outlets in the Russian Federation have had since mid last year a sword dangling above their heads as a law coming into force at the beginning of 2016 will restrict foreign shareholding and editorial control. Several have now appealed directly to President Vladimir Putin for an extension, reports business news agency RBC (February 24). The law "On mass media" has been widely seen as a Russian response to Western sanctions.
The letter addressed to President Putin was undersigned by representatives of German publishers Hubert Burda Media, Bauer Media and Axel Springer as well as Sanoma (Finland), Bonnier Business Press (Sweden), Egmont (Denmark) and De Agostini (Italy), said RBC. The publishers argue that financial losses have been severe in recent months and should the law take effect many of their newspapers and magazines will simply close, media sector employment affected, including "paper manufacturing, printing, logistics, distribution, authors, photographers." (See more about media in Russia here)
Meanwhile, media regulator Roscomnadzor has granted US channel CNN "a new certificate of registration," said spokesperson Vadim Ampelonskij, reported Interfax (February 24). CNN, owned by Time Warner, abruptly ended distribution in Russia at the end of 2014 in response to the changes in the regulatory framework. CNN will now receive a "universal license" to "resume broadcasting in Russia."
Between 150 and 200 employees of German international broadcaster Deutsche Welle DW) paraded through Bonn to protest assumed service cuts. The media workers carried signs noting their language specialties. "The regional competence of our employees from 60 nations is the unique selling proposition of Deutsche Welle," said works council spokesperson Daniel Scheschkewitz, quoted by agency DPA (February 23).
DW general director Peter Limbourg warned in December of peril to the broadcasters mission from better financed competitors. Alas, the German Finance Ministry came through with a bit more money for the 2016 budget. Herr Limbourg thanked "all political decision makers... understanding the importance of international broadcasting in politically troubled times," reported Die Welt (February 23). It seems all that need be mentioned is "Russia Today," the Russian Federation's propaganda machine spreading wildly throughout the world. (See more about international broadcasting here)
In June DW will launch a dedicated English-language satellite TV channel, displeasing some employees because of the obvious mission shift. DW employs about three thousand full and part-timers in 30 countries. Its 2015 budget is about €270 million, roughly 15% lower than it was in 1998. The Finance Ministry sorted out an additional €12 million for 2016.
The publishing world is easily divided between those in paywall-land and those swimming with the sharks in the free digital ocean. Paywall-land is also divided: the hard paywall castles and the softer metered communities. None of these business model decisions are without challenges.
Poland's Agora Group was an early adopter of a soft paywall for the online edition of newspaper Gazeta Wyborcza. The company released positive fourth quarter 2014 financial detail last week, revenue up 11.1% over the same quarter 2013. Ad sales were up 5.3% and subscriptions up 12.7%. "At the end of 2014 the level of active digital subscriptions, higher than expected, confirms the right business model transformation choice," said company president Bartosz Hojka in a statement quoted by media portal press.pl (February 20).
Digital subscriptions to Gazeta Wyborcza more than doubled in a year to just under 55 thousand. Last year the rather strict metered paywall was dropped for an "intelligent paywall" that uses accumulated user data to "educate" readers about more customized options, not limited to pricing. Very few people, it was discovered in the user data, are interested in that unlimited subscription option until, it seems, a few movie or theater tickets are tossed in. Agora Group also owns a thriving ticket agency. (See more about media in Poland here)
"These results are, in a sense, a function of the publisher's education," said Dziennik Gazeta Prawna deputy chief editor Paul Nowacki, quoted by wirtualnemedia.pl (February 23). "There's no turning back."
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