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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 April 13, 2015

No, it isn't a new screen saver!
pick up the phone?

Darkness fell across screens Friday morning (April 17) as real-time traders agonized over a “global network problem” with Bloomberg terminals. The life-blood, the heart-beat of high finance trading is data and the systems that make transaction fly through the air instantly. Bloomberg is one of the biggest and best known trading system suppliers.

Bloomberg Professional terminals stopped connecting for a yet undisclosed reason about 9 o’clock CEST (Geneva time). What, oh what, would traders do with their hands? Anecdotal evidence provided by snarky MarketWatch reporters (April 17) indicates a surge from the trading complexes in (a) coffee, (b) Facebook and (c) StarWars trailers. Some traders have actually resorted to using the phone.

At noon CEST the Bloomberg support team had no idea what happened or when full service would be restored, reported CNN (April 17).

Getting more, or less, from digital transition
not thought through

The end of FM broadcasting in Norway is nigh. The official word has come down and national FM networks will be silenced in 2017, replaced by national DAB multiplexes. Digital coverage has reached 99% for radio channels of public broadcaster NRK and 90% for national commercial channels, the leading criteria for FM switch-off.

“Digitization of radio opens up much greater diversity,” said Culture Minister Thorhild Widvey in a press statement (April 16). “While the FM network only had room for five nationwide channels, DAB already offers 22 nationwide channels with room for nearly twenty more.” Minister Widvey also noted FM transmission costs are eight times higher than DAB transmission.

Some in Norway are less than thrilled. “The rest of the world has come to realize that DAB is an outdated technology, but Norway is going to introduce this by force,” said ICT support group IKT Norge secretary general Per Morten Hoff, quoted by nettavisen.no (April 17). “Most technologists have long seen that the future of radio is distribution via cellular networks, WiFi and satellite, all based on IP technology. Why consumers and radio stations invest many billions in new equipment is a riddle when a completely new technology is about to take over.” (See more about digital radio here)

Others see a related but different issue: Swedes. FM shut-off “means several million tourists will not be able to hear Norway’s national radio,” said local radio association (NLR) chairman Svein Larsen. “Plus we will be getting much more Swedish radio, like there was 30 or 40 years ago. Swedish radio now covers half of Norway. This type of effect they have not thought through.”

But then in neighbor Sweden some broadcasters are howling at a report from the government’s financial watchdog pouring very cold water on further DAB development. “Economic estimates… show that it is doubtful whether the investment can be profitable even after 50 years with the plan that exists,” said the National Audit Office (NAO), quoted by dagensmedia.se (April 14). “It appears reasonable to keep the FM network where all listeners, regardless of financial means, can continue to listen to the radio.” The Swedish government, which has more or less supported digital radio switch-over between 2022 and 2024, "has allowed the radio industry to define problem,” said the agency.

“I think they’re completely off their bicycles,” said MTG Radio CEO Chris Modig. “It is completely preposterous. What if we had thought that was when it came to transitions between GSM, 3G and 4G? The National Audit Office would oppose 4G because people needed to buy new cellphones.”

“It feels like the Soviet Union in the 1950s,” said SBS Discovery Radio CEO Staffan Rosell, “when no one believed people would like to have more than one choice.”

Publishers want to look deep inside Google
secret code obsession

The European Commission has put forth, at long last, its complaint against technology giant Google. The Statement of Objections (SO), issued this week by Competition Commissioner Margrethe Vestager, outlines a prosecutors case to force changes to the operating “principle” of the Google Shopping portal. European publishers hope their dream of Google money hasn’t been forgotten.

Responding to Commissioner Vestager’s announcement, the European Publishers Association (EPC) “will be counting on her to consider the outstanding issues of concern to the EPC.” (See EPC statement here) Many European publishers operate shopping and price comparison web portals. Getting a glimpse at Google’s search algorithms, a non-negotiable trade secret, would allow publishers to optimize results or, at the very least, bolster their case that Google is evil. “It is essential that Google's arguments, and data, be thoroughly tested by European companies operating in these markets,” said EPC chairman Christian Van Thillo in the statement. “ Any proposed solutions need to be vetted by the marketplace and by consumer organisations.” (See more about Google here)

Alas, this SO is narrowly limited to Google Shopping. “We do not wish to interfere with screen design, how things are presented on the screen or how the algorithm works,” said Commissioner Vestager at the Brussels press conference (April 15). “This is not what we are thinking about. What we would like to see is that shoppers are able to see the best shopping results.”

Real reality TV captured live
I am shocked, just shocked

Well into the second decade of its current phase, reality TV is a worldwide phenomenon and huge business. Story-lines for the nominally unscripted genre reach, literally and figuratively, new heights, often exotic, year after year. And, too, reality TV and social media have an interesting, symbiotic relationship.

Talpa Media’s Newtopia reality TV show, the German version shown on Sat.1, was unmasked this week. It isn’t quite as free-flowing and “real” as the trailers and promos pitching “the biggest TV experiment of all time.” Newtopia’s basic premise is a bunch of folks in a remote location fending for themselves “to build a new society.” What happens, supposedly, is captured for all to see. Indeed there are regular instalments on Sat.1 but a special hook for the deeply engaged is a live 360 degree TV stream 24/7. (See more about reality TV here)

Apparently and now widely reported in Germany, the show’s German producer arrived late Sunday night in a state of inebriation and gathered some, but not all, of the cast in the “barn” to discuss bringing more excitement to the show by making a few changes, including opening a tattoo parlor. And the select group was directed to persuade their fellow cast members. Even though most of the live-stream cameras had been removed to Cannes for a MIPTV presentation, one picked up all the, er, action.

The scandal of it all - “Faketopia” - attracted considerable attention from German media and, to be sure, social media. Since the show’s premiere in February estimated audience on Sat.1 has steadily fallen. Perhaps that will bounce back after a little tabloid attention.

Social media can mean serious business if taken seriously
Not for “spare time”

Social media is, as it has been, a target of social critics. They moan about privacy, whine about taxes and generally whinge about the very thought. Be still, say business leaders. There’s money to be made.

A report from Italian business association Confcommercia Roma, released last week, was meant to motivate operators of small and medium enterprises (SMEs) with some social media reality: Italy has 26 million Facebook users, 42% of the population, and Rome has the most, 2.6 million users. Two-thirds of 500 surveyed SMEs in Rome said social media had a positive impact on business in the last year. The problem, said the report, is the SMEs aren’t taking social media seriously. Cue: forthcoming workshop. (See more about social media here)

“A purposeful and conscious use of social media can greatly improve the overall business of an enterprise and its positioning in the market,” said the report, quoted by La Repubblica (April 10). The tourism sector in Rome has embraced social media, unsurprisingly, but retail business has been “slow” coming to Facebook, Twitter, Instagram, LinkedIn and all the rest. But social media activity by SMEs “is often improvised and poorly organised,” attention to content offered relegated to “spare time.”

Media outlets cautious about cyber-attacks
diligent and secret

The cyber-security alarm moved up another notch at media outlets as websites of Belgian publisher Groupe Rossel were invaded this weekend four days after French international broadcaster TV5 Monde websites, internal systems and related social media pages fell to attacks. There has been no suggestion these cyber-attacks on French-language websites and systems in two countries were related or coordinated. Unlike the clear and visible response to physical intrusion of facilities, from fences to armed guards, media operators have been cautious about describing IT security measures.

Technicians believed, at first, accessibility issues with websites of Rossel-owned Le Soir and Südpresse Sunday evening (19h30 local time) were simply internal “technical” problems,” reported Belgian-French public broadcaster RTBF (April 13). Two hours later they realised it was a hack-attack and shut-down everything. “We are regularly the object of attacks,” said Le Soir general director Didier Hamann. “This time the firewall did not work as usual.” (See more about online news here)

All media outlets, great and small, are diligent about cyber-security, the internet being fragile, porous and penetrable. After the TV5 Monde cyber-attacks German news agency DPA (April 10) found IT security systems at German media houses are both robust and secret. “We don't publicly explain the various protection measures for our channels and platforms,” said a spokesperson for RTL Group.

Clean image cited for ad revenue boost
challenges remain

A year on year jump in Hungarian ad revenues, reported in March, was met with obligatory analysis from all quarters of country’s media. After five years of steady declines estimated 2014 ad revenues rose 7.77% to HUF 189 billion (roughly €630 million). Media watchers noted World Cup football, elections, digital transition as well as increased State spending.

And some took credit. “Since the formation of this association the growth rate has jumped,” said radio broadcasters association (RAME) president Turi Arpad, quoted by vg.hu (April 9). Hungary’s radio market, he said, has been “clean” in recent years and the RAME was formed early in 2013 to “effectively shape the sector’s image.” Hungarian government actions against national and local radio broadcasters beginning in 2009 attracted international attention chasing major advertisers from the market. Estimated radio ad revenues increased 5.8% year on year to HUF 9.3 billion, roughly €31 million, and 4.9% of total estimated ad revenues. (See more about media in Hungary here)

Challenges loom large for Hungary’s radio broadcasters. “Conventional platforms are going away,” he added. Mobile phone operators are lowering data-plan rates and offering streaming audio services to attract customers.

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