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Digital radio not a priority
“one day” but not today
Spring-time for digital radio in France may be indefinitely delayed. Culture and Communications Minister Frederic Mitterrand stunned supporters of eventual switch-over from analogue in a meeting this week (March 29) saying “the cost of the project is significant” and some broadcasters are “not at all favorable.” Moving radio to a digital platform, he said, is “not a priority.” Last September Minister Mitterand said the switch to digital radio was “a necessity.”
Has something changed? A decade ago most broadcasters, government leaders and media regulators gleefully announced the “year of digital radio” was upon us. And they’ve repeated it every year since.
While several countries adopted – and promoted – the DAB (digital audio broadcasting) standard for digital radio years ago, others have stalled year after year until, finally, the 2008-2009 economic crisis brought the cost of it all to a head. The French government, more or less, adopted a different standard and mandated new receivers, including those in new automobiles, be available.
What hit the fan, so to speak, is the confluence of new technology, economics and competitive fears. Juke-box style music radio channels, differentiated only by 500 tightly controlled tunes played over and over, are unable to withstand competition from personal music players and listeners, particularly the young, changing music preferences quickly and finding new favorites on the web. Whether real or not, the appearance of the youthful audience – coveted by the advertising people – deserting radio channels chased away the primary revenue stream.
Broadcasters, particularly in the commercial sector, saw most of this coming well before economics and the ad market went sour. In 2005 French legacy commercial broadcasters lobbied for a digital radio standard different from that used in other countries out of fear of losing listeners and ad revenue to those pesky foreigners. As proposed switch-over deadlines, mostly written before 2005, loomed large broadcasters began to panic. (See more on digital radio here)
“Without organizing a funeral with great pomp and ceremony, which would presume a death, I think that everything will inevitably be digital one day,” said Minister Mitterrand. “And then radio will be too. Put simply, in today’s economic conditions, in the general context of radio, and with the lack of consensus around this [digital radio] issue, I do not think its resolution is a priority and the launch of digital radio will not happen this year.” (JMH)
More Energy in Switzerland
And maybe even more
The NRJ radio brand is coming to the Swiss capital, Bern. Ringier owned BE1 will disappear after April 5th and Energy Bern will appear April 9th. In the interim, non-stop music will grace 101.7 FM.
Ringier principally owns Radio Energy Zürich, which it nearly lost when the concession was not renewed. Fortunately for Ringier the successful applicant in the license award was willing to sell out. (See more on Energy Zürich here) Sources say the company is in talks with other broadcasters in the Swiss-German speaking part of Switzerland about even more Energy.
The NRJ brand is established in the French-speaking part of Switzerland with stations owned by NRJ Group. (JMH)
Radio station having too much fun
April Fool’s
How much fun can a mostly news radio channel have with April Fool’s Day? Bulgaria’s Darik Radio stirred up a little dust and a fair amount of publicity for itself with jokes on Bulgaria’s economic crisis. Some didn’t play too well.
First, early in the morning there was the interview with a non-existent International Monetary Fund (IMF) “spokesperson” who proposed adopting the Euro in Bulgaria in tandem with the Lev. The Bulgarian National bank, obviously listening, slammed the joke as “dangerous.”
Then, later, there was a news story about selling off the automobiles of Members of Parliament the “fill the hole in the budget.” MPs could, said the story, ride bikes or run to work.
Dairk Radio, having too much fun, is a privately owned national radio channel.(JMH)
Al-Jazeera picks up local station
Regional center planned
International television news network Al-Jazeera may soon take over a local radio and television company in Sarajevo. The Sarajevo mayor and city council approved the transfer of Studio 99 to the Qatar-based broadcaster, reported Nezavisne Novine (March 29).
Studio 99 was taken over by the Sarajevo city council after a local owner went broke. Media watchers in Bosnia Herzegovina (BiH) describe the radio and television stations as “mouth-pieces” for local politicians. A former owner of Studio 99 is currently suing the city council, a potential snag in any new ownership. (More on media in BiH here)
"Representatives of Al-Jazeera offered to take Studio 99 and turn back to the city administration the money invested into this broadcasting station,” said a city council statement. “After taking over Studio 99, Al-Jazeera is planning to open a regional center for the former Yugoslavia."
Al-Jazeera officials have not, so far, confirmed the reports. (JMH)
A New Editor-In-Chief At Helsingin Sanomat
Mikael Pentikäinen, 45, publisher of Helsingin Sanomat, takes on the additional responsibility of editor-in-chief Thursday upon the retirement of Janne Virkkunen. Pentikäinen has been CEO of Sanoma News since 2004. Before joining Sanoma he has served as the editor-in-chief and managing director of the Finnish News Agency (STT).
Helsingin Sanomat is the leading daily morning newspaper in the Nordic region. It has some one million readers which when taken in proportion to Finland’s population makes it one of the world’s most read newspapers.
Finland has a thriving newspaper industry and although it, too, has been hit by an advertising downturn, its bottom line is still very healthy from strong subscription revenue, often paid a year in advance. Retiring editor Virkunen says printed newspapers will remain a part of Finnish society for a long time to come even though the country is one of the world’s digital leaders. “There are three reasons for this: Finland has a strong tradition of reading, we have an early delivery system, and the quality of Finnish newspapers is mostly quite good.”
Welcome Back, Tiger
Tiger Woods returns to professional golf next week at the Masters so when he tees off on hole one you think the announcers are going to be talking about his extra-marital affairs or his golf game?
It’s sure to be a major media frenzy on that first hole – you think he could whiff it under the pressure? For many global broadcasters it will be a big balancing act – say nothing at all on why he was gone from the professional tour won’t do the job, but to keep talking about what has been going since Thanksgiving until now won’t work But just where is the balance – in other words how often do you talk about it?
As for US broadcasters, CBS is praying that Tiger does well enough to make the cut after the first two rounds so that its weekend coverage ratings will go sky-high (ESPN covers the first two rounds).. Professional golf ratings without Tiger are way down, and if Tiger doesn’t do well enough to make the cut – a story in itself – then CBS will be a big loser no matter who wins.
Radio owner launches 'optimistic' channel
Different themes
Moscow’s Silver Rain is one of the most interesting, albeit unconventional radio stations, not just for Russia. When owner Natalia Sindeeva says she’ll launch DTT channel Rain, the Optimistic Channel eyes will be on it. (More on Silver Rain and radio in Moscow here)
The channel “should attract people who do not watch TV,” said Ms Sindeeva, reports Vedomosti (March 30). Test will begin in April with a full launch in September. It will be “a thematic channel with different themes.” Sixty percent of the programming, according to plan, will be live. (JMH)
Lawyers Get Fat On Tribune Bankruptcy
Would you believe that fully 25% of Tribune’s 2009 cash flow has gone to pay the bankruptcy lawyers? Yep, more than $138 million so far and the meter is still ticking, according to a fascinating article in the Chicago Tribune.
One of its law firms had 160 lawyers working on the case at rates ranging from close to $1,000 an hour for the big-wigs down to lesser figures for the junior lawyers and paralegals, but the bill from that one firm averages about $500 an hour and the number of hours is equal to more than 4 ½ years!
Tribune’s bankruptcy has become so expensive because proceedings have been contested most of the way by junior unsecured creditors who were not pleased with the deal the newspaper made with the senior creditors to come out of bankruptcy – in other words they felt the senior creditors got the gold mine while all the junior creditors got was the shaft. So now the junior creditors are charging that a “fraudulent conveyance” was used to take Tribune private in 2007 and it looks like these proceedings will drag on and on. And if the junior creditors were to win their case then there’s no telling what would come next.
And the lawyers can teach us a thing or two about billing -- would you believe that $1.2 million of their bills was for preparing the bills! Something for ftm to consider with its invoices! And for those of you who think it might be best to hire an outside firm to determine if you’re being overcharged given the size of the billings, Tribune did exactly that and the outside law firm has so far challenged $265,869 in fees submitted. Its own bill for doing that work so far is $812,642!
Which Would You Give Up If You Had To – The Internet Or TV?
A survey says that for the first time if Americans absolutely had to give up either the Internet or TV they would give up TV. Nine years ago, when the question was first asked a resounding 72% said they would give up the Web. How times have changed!
The “Infinite Dial” survey by Arbitron and Edison Research now says that 49% would give up TV compared to the 48% giving up the Internet, and since there is more and more TV on the Internet the likelihood is that this margin will only grow in the future. (See Arbitron presser here) Adding weight to that is the age factor – those under 45 were far more willing to give up the box.
Think about it – which medium in your life takes precedence?
Billboards Big Players In The UK Election Yet To Be Announced
One might think that in this day and age that the Internet will take media command for the UK general elections (not yet announced but widely expected the first week of May) but in the UK another traditional medium already is taking center stage – billboards.
 The Conservative Party has decided to target Labor Prime Minister Brown personally for all the country’s ills. So on Sunday a new range of billboards took center stage with a large picture of Brown and “Vote For Me”. That’s an ad for the Conservatives? Well, if that’s all the passing motorist or pedestrian remembers then that campaign may go down in history for all the wrong reasons, but if the voters also catch the various phrases such as “I Doubled the National Debt” or “'I Took Billions from Pensions” then maybe it may well hit voter nerves. Maybe some voters might think it was good to double the national debt? Whatever, a dicey subliminal message.
History shows that the British ad agencies have made billboards a real art during election campaigns and even though the Internet will undoubtedly become a huge player this year – as it did in helping President Obama get elected -- some experts still remind the pundits that you need to turn on the computer for the Internet, or turn on the radio or TV to catch those ads, but if you’re passing down the street and a billboard hits you square-on then you’re had! But will the brain capture the whole message or just remember that great big picture of Brown and “Vote for Me?” We’ll know the answer in just a few weeks.
US Radio Revenue Forecast Up in 2010, But Newspapers Still To Decline
US radio ad revenue is forecast to increase this year by $200 million – from $13.7 billion last year to $13.9 billion, according to BIA/Kelsey. Still a ways to go, however, to get back to the $16.8 billion of 2008.
But for newspaper it’s still the real doldrums with JP Morgan predicting an 8% decline this year over last which if correct will mark the fifth straight year of newspaper revenue declines. But for those looking for any glimmer of good newspaper news, the decline appears to be tapering off although no one is predicting when it will actually stop.
To stretch that “good news” even further, in 2009 the percentage ad revenue decline for US newspapers, including their online operations, in Q1 was 28.3% from the year before, in Q2 it grew to 29%, but then in Q3 it dropped to 27.9% and Q4 came in at a “lowly” 23.7%, according to the Newspaper Association of America.
How badly have newspapers been hit over the years? The advertising peak of 2005 saw $49.3 billion in ad revenues. Last year it was about $27.6 billion – that’s down 44% -- and it appears there is still more to drop.
And if there needs to be any proof about why newspapers believe the free online advertising model is broken, their online revenue, which was supposed to save the day, dropped near 12% in 2009 over the year before.
Public backlash feared in digital radio switchover
Confusion warning
Time is drawing neigh in the UK for a switchover from analogue to digital radio. The long march has, it seems, reached what may be the final bridge. The UK House of Lords Communications Committee, in a statement (March 29), believes what waits on the other side, metaphorically, is a “major public reaction.”
The Lords Communications Committee has been holding hearings for several weeks to discover what might be the magic charm to push digital radio with the least amount of pain. Their conclusion is the risk public backlash against digital radio switchover without a “firm and unambiguous” plan.
“The public are not being told what radio switchover will mean for them,” said committee chair Lord Fowler. (Read House of Lords statement here) “There is a danger of a public backlash if this is no done.” (JMH)
We know you’re jamming
ITU asks politely
For months Eutelsat has complained about jamming of its satellites. The French government investigated, determining this trouble was coming from someplace in Iran. Strong letters followed. Iranian authorities told French authorities they had no idea where the jamming was coming from.
Taking all available information at hand, the International Telecommunications Union (ITU) took the trouble to ask, very diplomatically, for the Iranian authorities to locate the illicit jammers and put a stop to it. Jamming, you see, runs counter to ITU treaties. (See ITU statement here)
We wait for an appropriate response from Iranian authorities. (JMH)
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