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 September 28, 2009

ITV Shareholders Getting What They Deserve?

A ftm reader points out regarding Michael Hedges ITV story that the major shareholders could be said to be now getting their comeuppances. He reminds us that back in 2004 when Carlton and Grenada merged and Michael Green of Carlton was to become chairman that the major shareholders – yes, the same major shareholders of today – decided to stick their fingers in and ousted Green and instead put in Grenada’s Charles Allen as chairman.

We’ll, we all know what has happened since. Maybe it was the economy, stupid, or was it poor management? Our reader writes, “In some ways they (the major shareholders) are getting what they deserve.”

And Talking Of ITV …

The UK’s Internet spend for the first half of year exceeded that for television, according to the Internet Advertising Bureau. No one wonder ITV has problems!

The IAB report put the UK Internet spend at £1.75 billion – 23.5% of the spend --whereas the TV spend came in at £1.63 billion (21.9%).

“This is a significant milestone,” IAB chief executive Guy Phillipson told Reuters. “This is the first major market where online has overtaken television to become the biggest single medium.”

Any ideas on who ITV should grab to combat that, or is it an impossible task?

Ouest France Claims Success At Getting The Young To Subscribe

Ouest France is an abnormality – it has France’s largest daily general readership but it is a regional newspaper based in Rennes and it is not a Paris national. It claims to have the highest circulation in France since 1975 and to be the largest French language newspaper in the world. And, while so many French newspapers have suffered terrible circulation losses over the years Ouest-France has not. One reason could be a very savvy marketing department that just won’t let go of young readers.

Speaking at the World Young Reader Conference in Prague, Czech Republic, on Tuesday, Jeanne-Emmanuelle Hutin, a member of the Directors Committee at Ouest France and Co-chair of the French Presidential Youth-Press Commission Hutin said his newspaper increased the number of regular readers among 18- to 24-year olds by 22 000 in three years, with 12% re-subscribing after their free subscriptions ended. And 65% of the young subscribers continue to read Ouest France at least once a week after their free subscriptions end

To achieve this the newspaper printed a special future recruitment section aimed at the young on the day of the week a free subscription was offered, and the marketing folks relied on digital tools to push the product. But the business plan also included how to switch those who got the newspaper for free one day a week to fork out some money for a subscription two days a week after the free subscription ended.

"Free subscriptions are not a cure-all remedy, especially if there is nothing of interest to young readers in the newspaper. But it is the backbone of several initiatives to meet the needs of the youth," Hutin said.

France begins a novel experiment in October with a government subsidy over three years to cover the distribution costs of a free one-year newspaper subscription for 18-year-olds. From the Ouest France experiment it seems “free” is not enough, it has to have the right content, too, and that will be the challenge for French publishers.

Which Country Has More Daily Newspapers Than Any Other?

India, according to the World Association of Newspapers (WAN) has more daily newspapers than any other country, and for the first time India surpasses China in paid-for daily circulation. India and China combined have 45 of the top 100 largest newspapers, so it’s easy to see why foreigners are clamoring to get a piece of the action in India.

Asia also boasts more broadband subscribers (nearly 158 million) than any other region (123 million in Europe, 97.5 million in North America).

Asia also leads the world in mobile phone subscriptions (nearly 2 billion) compared with 894 million in Europe and 425 million in North America.

No doubt this is just part of the bigger picture on why the chief executive of the giant HSBC Bank is relocating from London to Hong Kong to show his bank sees Asia as the future. Will foreign media investment be far behind if Asian countries open up their media investment rules?

Not happy in Denmark
“so many uncertainties”

Danish broadcasters gathered for the annual Radiodays this past weekend in Copenhagen and grumbled about almost everything. Commercial broadcasters were particularly riled about their deteriorating market.

One meeting, reported by radionyt.de (September 28), had major station heads sniping at each other over license fees and digital radio. SBS Radio director Frederik Meyer complained about Radio 100FM trying to negotiate a lower license fee with the government. “When you purchase an item, then you have to pay for it,” he said. Meyer mentioned his own cost savings program, cutting 50% of staff.

“The whole industry is waiting for answers to so many uncertainties," said Radio 100FM’s Jim Receveur. (More on Denmark's commercial radio here)  

Looming larger than ever – for commercial broadcasters, at least – is digital radio. Danish public radio DR’s Media Manager Lars Grarup spoke right up and suggested closing the FM band in January 2015. DAB, Denmark’s choice for digital radio, will be able to offer 110 to 120 channels on the three multiplexes, he said.

SBS Radio’s Meyer disagreed, strongly, saying DAB is only a “temporary solution” and that internet radio is the future. “Unlike digital television, there are no benefits to digital radio,” he said.

DR’s Grarup countered that internet radio is “too vulnerable” technically and, anyway, less than 2% of Danes listen on the Web today. Other commercial radio managers pointed out the high cost of DAB transmission.  (More on digital radio and DAB here)

Denmark’s Culture Ministry, charged with keeping radio organized, shelved plans to reallocate FM frequencies in favor of an all-out push for DAB. (JMH)

Minneapolis Star Tribune Exits Bankruptcy…

It’s always much more pleasant to report on a proud newspaper exiting bankruptcy court than one entering it, so here’s wishing the best to the Minneapolis Star-Tribune that got its employees to shed some $20 million in pay and benefits and for most of the debt holders to now be equity holders and has now emerged from bankruptcy to continue its 142 years of serving its community.

Michael T. P. Sweeney, Chairman of the Board, had some thoughts in his open letter to readers which deserve further distribution for  he could be talking about any newspaper. “Bankruptcy allowed us to reorganize so that we can be a financially stronger and more resilient company. It also gave us time to do what we know we must. Simply put, we must reinvent our business. We are confident, committed and up to the challenge, and we know that you are the most important constituency in that process.

“Primarily, the challenge is finding new ways to finance the quality journalism that you have come to expect of us. Ultimately, you get to decide what information you want, how you want to receive it and at what price. The debate about the future of newspapers is really a debate about what you, as readers, are willing to support. It is incumbent upon us to provide the content you value, distributed through the media you prefer...”

“What we do is more than a business to us. It is also a calling, a community service and a public trust. We are proud to serve such an outstanding community, and we are honored to have all of you as readers.”

…And A Chicago Newspaper Reader Says It All

Here, a letter in the Chicago Tribune, which needs no further comment, “I commend the Tribune for fulfilling your watchdog function over city, county, state and federal government. Your exposes of corruption and wrongdoing are more vital than ever these days. Special appreciation to columnist John Kass your brave crusader. He is the best.

“May the Tribune always be a watchful guardian against illegal and unethical conduct in government, as the great newspapers are. Thank God for freedom of the press.
-- Bill Thrasher, Chicago

Czechs trust their media
...and radio most of all

Trust in major social institutions can waver, particularly in stressful times. And every society reflects on their institutions differently. In the Czech Republic, media – radio, TV and the printed media – are more trusted than, well, banks, according to a survey by the Czech Public Opinion Research Centre (Centrum pro vyzkum verejného mínení - CVVM). (September 22).

Radio is the most trusted social institution in the Czech Republic, according to the September survey, 67% trusting vs. 27% not. Television and the army tied at 62% trusting. Public trust in the printed media is 49%, falling steadily from 62% in 2005.

Banks, trade unions and the Church are the least trusted Czech institutions. (JMH)

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