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Week of April 7, 2014

Reluctance all around as daily changes ownership
Forget the friends

Big Swiss publisher Ringier has acquired the shareholding of the other big Swiss publisher Tamedia in Swiss-French regional daily Le Temps, said a joint statement (April 11). In mid-2013 the Swiss Competition Commission (COMCO) ordered a change in ownership after Tamedia acquired most Swiss assets of publisher Edipresse. Transaction terms were not disclosed but estimated at less than CHF 10 million, roughly four times revenues.

Le Temps was formed in the late 1990’s by the merger of Journal de Geneve, owned by the local bankers association, and Le Nouveau Quotidien, Lausanne daily majority owned by Edipresse. No expense was spared in the Le Temps start-up, the publishers intended journalistic if not business competition for Zürich daily NZZ. Tamedia, which began a long and deliberate acquisition of Edipresse assets in 2009, owns three competitive dailies in the French-speaking region of Switzerland. French daily Le Monde continues to hold a 2% stake as do Le Temps employees in aggregate. Geneva banker Claude Demole holds a 3% stake, leftovers from the Journal de Geneva.

“Reluctantly we have separated ourselves from Le Temps, “ said Tamedia chairman Pietro Supino at a press conference hastily called after the deal had been leaked. Though Ringier CEO Marc Walder called the transaction “a matter of heart,” reluctance also in evidence. Several rich people circled around Le Temps after COMCO pushed for Tamedia to either divest or fight on in court. None came up with the cash; asking price at the time roughly twice the estimated final figure. Tamedia will continue to print Le Temps under contract through the end of 2016.

Closing channels for digital dividend
error message

Spain’s digital TV broadcasters are preparing to shutdown nine channels as ordered by a Supreme Court (Tribunal Supremo) decision. At the end of March the Ministry of Industry ordered broadcasters to comply by May 6th. The broadcasters, including Atresmedia and Mediaset, are not pleased.

The Supreme Court ruling voided digital terrestrial television licenses “not having been granted through tender” by authorities of former Prime Minister José Luis Rodríguez Zapatero in 2010. Commercial TV broadcasters association UTECA broadsided against the Ministry of Industry deadline as “unprecedented, without any known antecedent in democratic countries…drastically reducing audiovisual pluralism and meaning serious injury to the principles of legal certainty,” quoted by El Mundo (March 27). (See more on media in Spain here)

Responding to UTECA the Ministry of Industry said it was correcting “actions of a previous government…of dubious legality,” reported EuropaPress (April 7). The Supreme Court order specified hefty fines for non-compliance.

“Something is wrong,” said Atresmedia vice president Mauricio Carlotti, quoted by EuropaPress (April 9). “The digital dividend, releasing the 800 MHz band for 4G telcos, has nothing to do with the closure of nine channels. The Ministry of Industry forgets to consider eight years of work and investment to move from analogue to digital and that error is fatal.”

Tit-for-tat in the information war
Bullies on the schoolyard?

In a clear sign that the battle over news coverage in Russia is reaching some sort of pinnacle, the Russian Federation’s chief propagandist Dmitry Kiselev informed the US Broadcasting Board of Governors (BBG) that the contract to carry Voice of America (VOA) in Moscow has been cancelled. “We are not going to cooperate,” said Mr. Kiselev, in a one-sentence letter to the BBG dated March 21st. In a separate comment, Mr. Kiselev referred to VOA as “spam on our airwaves.”

“We urge Mr. Kiselev and other Russian authorities to open Russian airwaves to more of our programs and those of other international broadcasters,” said BBG chairman Jeff Shell in a statement on the BBG website (April 4). “We’re asking for an even playing field,” he added, noting that Radio Voice of Russia, under Mr. Kiselev’s control, in broadcasting in New York City and Washington DC.

Mr. Kiselev is best known in Russia as a well-known fire-breathing TV talk show host, vamping on various anti-Western conspiracy theories. In December Russian Federal president Vladimir Putin elevated him to head of Russia Today, which now includes the international TV channel of the same name, news agency RAI Novosti and international radio broadcaster Radio Voice of Russia. (See more on media in Russia here)

The European Union added Mr. Kiselev to its list of Russian figures sanctioned (March 20) after the take-over of Crimea. Mr. Kiselev had planned to attend a media conference in Norway at the end of the month but the Norwegian government declined to issue a visa, reported thelocal.no (April 7). Mr. Kiselev referred to the visa rejection as restricting his freedom of speech, to Izvestia (April 4), plus it ruins his vacation. The Barents Press organization, representing journalists from Norway, Sweden, Finland and Russia, called the Norwegian Foreign Ministry decision “a shame.”

TV channel “broken to bits”
Second verse, same as first

As tensions rise in eastern Ukraine, news media is again a target. Prior to the Russian invasion of Crimea, local broadcast outlets were set upon, forced to replace local programming with Russian channels. Monday a group of “unidentified persons” with bats stormed offices and studios of Kharkov TV channel ATN demanding on-air time. Refused that, the offices and studios were trashed before police arrived.

“We will be unable to get on the air today or in the coming days as all hardware is completely broken to bits,” said a station spokesperson, quoted by Telekritika (April 8). The attackers pressed station manager Oleg Yuft to resign, which he refused. “They said they know where he lives, know all about his family and will put pressure on him. In addition, the attackers took some personal files of employees, addresses, copies of passports and other data.”

About 30 police continue to guard the Kharkov tower and transmitter facility after evicting “unidentified persons” Monday night (April 7) demanding Russian language channels replace Ukrainian channels. Earlier on Monday “armed men” attempted to enter Donetsk regional state broadcaster RSTBC but police chased them away. (See more on media in Ukraine here)

Two and a half years ago ATN (Agency of Television News) was pulled off the air for failing a “sanitary” inspection. The channel had broadcast news reports critical of Kharkov mayor Gennady Kernes and regional governor Mykhailo Dobkin. Mayor Kernes and ex-governor Dobkin briefly disappeared when deposed president Victor Yanukovich removed to Russia. They have since returned.

Older viewers practically like the rest
With more money, too

While media buyers have an array of tools with which target audiences can be displayed and sorted, TV buying is generally based on rather broad demographics. The idea, of course, is to present the most prolific consumers. Demographics are, we know, shifting.

Poland’s public broadcaster TVP, like most public broadcasters, sells ads to augment other sources of revenue. Marketing that ad time will now present 16 to 59 year old viewers, adding ten years to the base viewing audience. “Adhering to a standard established nearly two decades ago, a commercial target group ending at 49 years is at best an unjustified anachronism,” said a TVP statement, quoted by Rzeczpospolita (April 5). “Persons 50 to 59 years…are vastly more wealthy and, above all, their attitude to life, in particular consumer needs, practically do not differ from those typical of people a decade younger.” (See more on media in Poland here)

The TVP marketing office supported the new demographic target – which increases ad prices – with a few notable facts: consumer spending among persons 15 to 59 years in 2013 was PLN 658 billion (just under €158 billion), about 40% more than 15 to 49 year olds. The average age of the Polish population was estimated at 37 years last year and projected to hit 53 years by 2028.

The new ZenithOptimedia forecast for this year, released April 7), raised the spending growth rate for Poland to 1.8% from 1.4%.

Culture supporters call digital switch for arts channel absurd
Others say far-fetched

Digital transition for radio broadcasters has been fraught with disagreement, foot stomping, pouting and the occasional lawsuit.

Bavarian public broadcaster Bayerischer Rundfunk (BR) announced plans several weeks ago to change the platform of arts and culture channel BR Klassik from FM to DAB+ by 2016. On those FM frequencies would then appear young people’s channel BR Puls, launched last year on various digital platforms. German private sector broadcasters howled about unfair competition for the youth market but BR management held firm. (See more on digital radio here)

The latest round of complaints is coming from supporters of BR Klassik. “Who protects the public broadcasters from themselves?” asked German Culture Council (Deutsche Kulturrat) managing director Olaf Zimmermann, quoted by Abendzeitung München (April 3). “Fulfillment of the cultural and educational mission is the precondition for its existence. It is therefore almost absurd that Bayerische Rundfunk wants to turn off the main distribution channel for BR-Klassik and thus causing a massive loss of listeners.” (See more on media in Germany here)

“Bayerischer Rundfunk wants to strengthen its classical programming, point to the future and win an even younger audience for classical music,” rebutted BR radio director Martin Wagner, in a statement. He noted that one-third of all DAB receivers in Germany have been acquired in Bavaria. Both platform moves – BR Puls to FM and BR Klassik to DAB+ - are designed to attract young people to the respective channels, he argued.

German private broadcasters were touched by the candor, in a manner of speaking. Private broadcaster association VPRT radio director Klaus Schunk called the plan “far-fetched,” in a statement. (See VPRT statement here – in German)

Even in defeat, opportunity
Sense of humor applied liberally

Results of the recent French municipal elections sent observers into spin mode as the country prepares itself for the expected shift to the political right. President Hollande shuffled out government ministers, gasping in horror at the National Front’s forward march. But, as usual, there’s always opportunity.

Famous satirical news weekly Charlie Hebdo seized the moment, as it so often does. It’s offering subscription discounts to those folks living in municipalities “gone to the right or extreme right” who “do not plan to move,” said its website. Discounts, up to 50%, are extended to “young, old, military, unemployed, prisoners, retired, non-taxable, invalid,” living in cities shifting to the right. “Or you can subscribe for someone else.” (See more on media in France here)

“This is a militant act,” said an unnamed spokesperson. “We did this to laugh, also to lighten the mood.” The special offer is valid through April 8th. A lawyer, also quoted by Le Figaro (April 5), said the offer discriminates and is, therefore, illegal.

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