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Conference Calls
Good loss, bad loss
ProSiebenSat.1 Media scored with the stock traders when it showed less losses than surviving analysts had expected for the first quarter 2009. That would be only €1.7 million, hardly a sneeze compared with €7.9 million lost in Q1 2008. Quarter to quarter sales dropped 14% to €627 million. The company lowered costs by 15.4% to €578 million and it got rid of Scandinavian pay-TV channel CMore.
The German pay-TV operator Premiere, partly owned and wholly micro-managed by News Corporation, will now be known as Sky Deutschland, bring it in line with News Corps wholly owned Sky Italia and largely owned BSkyB. The sky’s the limit? CEO Mark Williams told the conference call (May 14) 2011 will be good, until then, not so good. The company will write-off the value of the Premiere trademark. Slick, yes?
Losses for 2009 are “not realistic,” Axel Springer CEO Mathias Döpfner told his conference call (May 14). "The next nine months will remain extremely difficult for the media sector."
Rolv Erik Ryssdal was named Schibsted’s CEO. He’s been with the company forever. Kjell Aamot is retiring.
Publisher Arnoldo Mondadori, primarily owned by Silvio Berlusconi, announced first quarter revenues down 23% to €345 million. The company statement said times are tough “particularly for businesses depending on advertising investments." (JMH)
Broadcasters to air get-out-the-vote spots free
It's Your Choice
Commercial broadcasters in several countries have agreed to broadcast at no charge get-out-the-vote spots in advance of the June European Parliament elections. (See ACT press release here) The spots, customized for each country, have been produced by the European Parliament with the theme "European Parliament - It's Your choice".
It's a good public service initative for commercial broadcasters as well as good public relations in Brussels where broadcasting issues are high on the agenda. Sometimes, though, politicians find these get-out-the-vote campaigns, er, defeating. (See that story here) (JMH)
New RFE/RL headquarters officially opens
a long time coming
RFE/RL's new headquarters and broadcast center on the outskirts of Prague officially opened (May 12). (See RFE/RL statement here)
Czech and US officials, for a variety of reasons, wanted RFE/RL to move out of the converted former communist Czechoslovak Parliament building in central Prague for several years. (More on RFE/RL here)Security was one issue, and so was a serious need for technical upgrading. (JMH)
EPRA re-elects chairperson
regulators gather
EPRA - the European Platform of Regulatory Authorities - re-elected Chairperson Dunja Mijatovic, Director of the Broadcasting Division of the Bosnia and Herzegovina Communication Regulatory Agency (CRA).
Mónica Ariño, from Ofcom (UK), was named to the Executive Board replacing Andris Mellakauls of Latvia's National Broadcasting Council. (See the EPRA statement here)
EPRA is a round-table organization for European media regulators. It's hot topic this year is State aid and public broadcasting. (JMH)
New French Internet Anti-Piracy Law Could Run Into EU Problems
The French Senate and the National Assembly have approved a tough Internet anti-piracy Bill that was introduced in Parliament by the chairman of one of the country’s largest retail stores for electronic equipment, CDs, DVDs and the like and which President Sarkozy, whose wife is a budding recording star, is anxious to sign. But there may be problems at the EU level, let alone with France’s main opposition Socialist Party that wants the nation’s highest court to rule on the law’s constitutionality. (See details on this here)
The problem centers on the establishment of a new agency that has the power to arbitrarily cut off a person’s Internet connection if there have been at least two warnings to stop pirating music or video. Yet the European Parliament just last week voted to specifically stop ISP’s and regulators from restricting a user’s Internet access saying that punishment is reserved solely for the courts. Without court action, some lawyers believe the French law also runs afoul of the European Convention of Human Rights.
The movie and recording industries strongly supported the law – libertarians opposed it and vow to contest it – where else – in court.
So, What’s Happening In US Bankruptcy Court?
As an example of how unions can get socked in bankruptcy court, the Journal Register Co. is asking permission to end its contracts with a group of unions representing about 220 employees. It also wants to eliminate some pension obligations and impose a 15% wage reduction – the idea being to save $2.6 million annually in labor savings.
And as an example of how bankruptcy judges think, the judge in the Tribune case agreed that some $13 million in bonuses can be paid to about 100 non-senior executives for incentive purposes as they are asked to work harder to keep the company alive. But the judge turned down Tribune’s request to pay some $2 million in severance payments to employees dismissed or who took packages before the bankruptcy because those payments are not essential to the company’s operation – in other words those employees are gone and are of no help in getting the company jump-started again.
The judge said he recognized how badly those who are owed the money need it, but the court’s main aim was to approve spending that would help the company get back on its feet, and those severance payments didn’t fit into that.
The lesson here – if you’re working for a company that is skirting with bankruptcy and you are offered a buyout make sure you get it all paid upfront – no monthly payments. If you can take the pension in one lump sum even if there are penalties it might well be worth it.
Eurovision on YouTube
highlights for all
This is Eurovision Song Contest week. Semi-finals Tuesday and Thursday, star-studded finals Saturday are available on a variety for public television channels. And, for the first time, Eurovision is making video highlights available on YouTube. (Check it out here) (JMH)
Car & Driver’s Auto Exec Of The Year Nails Chrysler Ad Spending
With tongue firmly in cheek President Obama told the White House Correspondents dinner Saturday that Car & Driver had named him as Automobile executive of the year and that turns out to be bad news for the media.
For with Chrysler in bankruptcy Obama’s Auto Task force has cut by half the company’s plans to spend $134 million during its planned nine weeks under bankruptcy. The bankruptcy judge thinks the $67 million is still too much but Chrysler executives say it is important there be some marketing spend to protect the brand, and the Auto Task force agreed.
As part of its bankruptcy Chrysler already owes its agency BBDO some $58 million for placed unpaid TV ads before the bankruptcy filing, and if BBDO doesn’t get the money then neither will the TV stations. Under bankruptcy rules, however, the debtor must stay current with post-bankruptcy debts.
Murdoch Makes Money on His UK Newspapers
Times Newspapers, the UK News International subsidiary that publishes The Times and The Sunday Times lost £51.3 million in its last fiscal year – The Sunday Times continues to make a bundle, although not as much as in prior years, while The Times continues to lose bundles. But another subsidiary, News Group Newspapers that publishes the tabloid Sun and The News of the World, made a profit of £55.1 million during the same period. So, all in all Murdoch made some big money out three of his UK newspapers last year, but still lost a fortune for the privilege of printing The Times.
The News of the World (circulation 2,936,239, down 80,090 from March) is the UK’s largest circulation Sunday newspaper and The Sun circulation 2,957,690, down 110,345 from March) is the highest circulation daily newspaper. Both tabloids go for the real dirt – It was The News of the World that broke the story about Formula 1’s Max Mosley dalliances with prostitutes last year for which he sued for invasion of privacy and won not only £60,000 but it also cost the NoW some £1 million in legal fees. Were the increased newsstand sales worth the story?
As the above figures show April was a horrible month for those two tabloids. The Sun fell through the psychologically important 3 million mark on which it had tried just about everything to stay above, while the NoW’s losses means that it is no longer the UK’s largest circulation newspaper with its stable mate taking over. But the numbers could keep alternating depending on just how down and dirty the NoW can get with its future exclusives (and not invade privacy).
Best UK radio confined
“making waves behind bars”
All media awards give enormous value, honoring winners, saluting creators and unifying the community. The UK’s Sony Radio Academy awards, announced May 11, did not disappoint.
Electric Radio Brixton, a community station at Brixton Prison, won four awards, stealing considerable attention. BBC Five Live received five. BBC Radio 3, the classical music channel, was voted station of the year. The rehabilitated Chris Evans, afternoons on Radio 2, won the equivalent of DJ of the year. Unsung this year were the usual suspects, the big names.
Awards juries weigh many criteria, particularly difficult with wide ranging entries. Qualities and constituencies require balance. This jury made picks, all worthy, providing decidedly different press release value.
UK media analyst Grant Goddard, not one to mince words, noted on his blog recently (read here) how UK media coverage of UK radio has become little more than press release re-writes. Commenting specifically on coverage of the recently released RAJAR radio audience results he notes that, while “everybody likes to hear good news…an industry that believes its own PR is an industry in trouble.” (See summary of RAJAR results here)
Press release driven coverage of UK radio is painful, to be sure. It's hardly the worst. German broadcasters , announcing each "stunning" acheivement in bold type, have raised PR hype to high art. (JMH)
Cutbacks At Goss Shows How Deep The Pain
Newspaper publishers are openly saying they are making deals with those who used to be their arch-rivals, for win-win propositions to help everyone cut costs. One favorite ploy is not to upgrade old printing presses and instead have the printing done by a nearby rival. That saves a lot of capital investment and it earns good money for those who have made the capital investments and have spare capacity.
But if not so many printing presses are being sold what is happening to the manufacturers? Well, one answer came Monday from Goss that said it has reduced its workforce by 170 employees in four states and it is looking at summer unpaid furloughs for those who are left.
A good example of what is going on is the Wilmington, North Carolina Star-News (NYT) that on Sunday printed its last edition in Wilmington on its eight Goss offset Metro presses. Instead of upgrading the presses, the newspaper is now electronically transmitting its pages to the Fayetteville Observer (Independent) some 80 miles (130 kms) away and the printed papers are then trucked to Wilmington.
Besides Goss’ loss of business, in this case at the Star-News 24 full-time and 13 part-time employees in the pressroom, mailroom, and loading dock also lost their jobs.
Network TV News Losing Viewers Faster Than Newspapers Readers
A common complaint from newspaper publishers and their senior executives is how much newsprint is being used these days to describe the calamity of the newspaper business. How come losses in US TV news viewership don’t get so much coverage?
According to a University of Pennsylvania study of 26 newspapers for the past nine years there were 900 stories talking about newspaper circulation losses, yet only 95 describing the drop in network news viewership. And in a study of four TV network news broadcasts during the same period there were 38 reports about falling newspaper circulation but only 6 on falling TV audiences for network news.
In those nine years newspaper circulation dropped from 56 million to some 47 million. Network TV news audiences dropped in the same period from 32 million to 23 million, so on a percentage basis TV network news has been hit far harder than newspapers.
Not that you would know that from your daily read!
Reality TV goes mobile
Irresistible hype
Combine a popular television format with mobile internet, add top of the line picture phones and motivated sponsors. Vodacom and Samsung Mobile have put together what they call a world’s first, Vodacom Thumbwars, a mobile phone based reality TV show on South Africa’s SABC2 television channel. Sure, it’s a lot of hype. And it’s rather blatant product placement. It's also a good example of mobile media and advertising allowing television along for the ride.
The show – and the combination – could prove irresistible. Contestants in teams will be sent to different destinations in South Africa, “testing their wits,” say the producers. They will also be sending pictures taken with Samsung’s Pixon mobile phone, which offers digital camera quality. There’s color, history, tension and a one million rand prize, about €90,000.
Of course, viewers see and follow every step. Photos are geotagged and uploaded to the most popular social networking sites so nobody misses a moment. The show is described by creator Samantha Moon of Johannesburg agency Stimulii as “a national treasure hunt.” The weekly show premieres June 4th.
Handset makers have their eyes on Africa and Asia where mobile phone and subscription sales are hot spots in an otherwise tepid global marketplace. South Africa’s ad agencies, as evidenced by recent Cannes Lions awards, have a certain knack for the creative. (JMH)
Please, let me enter the Eurovision Song Contest!
Another nation heard from
Normally, European Broadcasting Union (EBU) headquarters in Geneva is sedate, reserved, serious and diplomatic. All that was shaken Friday morning (May 8) as a delegation arrived to appeal for a slot in next weeks Eurovision Song Contest. Rules, they were told, are rules.
Eurovision TV Director Bjørn Erichsen had to play the heavy once again and lay down the law.
“I am delighted that this year's Eurovision Song Contest is attracting such great interest,” he said. “Unfortunately Legoland is not eligible to participate because it does not have a public service broadcaster which belongs to the EBU.”
Legoland?
A quick phone call to the Russian Federation Mission to the United Nations in Geneva confirmed many visa applications to travel to Moscow for the Eurovision Song Contest but, alas, none from Legoland. “Visa applications must be accompanied by a color photograph and processing takes at least three weeks,” said a Mission spokesperson. “We do not know this Legoland.”
EBU spokesperson Michelle Roverelli, who witnessed the event, remained tight lipped.
(Yes, it was a stunt from the ABC TV show The Chaser.)
Earlier this week Erichsen presented BBC Radio 2 host Terry Wogan a Swiss cuckoo clock commemorating three decades of insulting the Eurovision Song Contest. (See more on Eurovision here) (JMH)
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