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ftm Radio Page - November 20, 2009

More Talk Raises Ratings
France Bleu listener Whether it is the spirit of the times and people want to hear voices on the radio or theirs is just so much to talk about, the trend toward more talk is growing. Perhaps music listeners are attached to their iPods or maybe music just stinks. Perhaps programmers should be spending more time with show hosts and DJs and less with the music computer.

 

Advertising changes proposed for German media
Mornings prohibited

When it comes to advertising everybody wants to throw the pie higher, to paraphrase former US President George W. Bush. What we’ve noticed is the advertising pie falling splat, blueberries oozing all over the street… metaphorically, of course. So, it’s not uncommon for one and all to be out there – again, metaphorically – scraping those blueberry encrusted euros off the pavement.

The German Association of Private Broadcasters (VPRT) is using the forum of the next debate over the German State Broadcasting Treaty – number 14 – to push for an end to advertising on German public radio channels. They propose phasing-in the change, taking out ads during prime-time morning radio. (See VPRT statement here)

The shrinking advertising pie is subject of much discussion and continual anxiety. Conventional wisdom posits a zero-sum world; size of the pie may not change much so control of each slice is really important. Advertisers have their own view: turn the pie up-side-down.

Mixed into all of this is funding of public broadcasting in a new political reality. Many public broadcasters are funded through a mix of sources, the most dominant, heretofore, being license fee tax plus advertising. There are others. The BBC, for example, has kept out of the ad business

In Germany, public broadcasters divide up license fee proceeds and use their own sales-houses to add in a few million euros in advertising revenue. All of this probably made sense when the advertising business needed the support from the public sector. In the debate will be cutting advertising from German public broadcasters, radio and TV, and changing the license fee tax to a household “media fee”. Several governments – notably France and Spain – have begun phasing out advertising from public broadcasting and, in the same motion, lifting the household license fee burden and replacing that funding with direct State budget money.Finland is moving this direction.

German politicians will also be debating product placement. (JMH)

Hungarian license lawsuit fails
Competitors circle

Hungary’s two national commercial radio channels are continuing to fight for their licenses. Both companies – Emmis International and Accession Mezzanine Capital - filed civil lawsuits against Hungarian media regulator ORTT asking the Budapest Municipal Court to halt the license transfers pending a civil trial. The Court ruled (November 14) against the application for an injunction, reported Magyar Nemzet. ORTT’s executive director resigned after the licenses were awarded to less experienced companies. (See earlier article here)

Meanwhile, regional and local radio broadcasters appear to be salivating at a chance for new advertising revenues. Slager Radio and Danubius Radio reportedly earned as much as 70% of the total radio ad spending in Hungary. Their presumed successors, generally viewed as far less experienced, may only earn a third of that amount, according to an advertising agency executive who preferred to speak off the record for competitive reasons.

Speculation within Hungarian media circles has run wild with rumors of Slager Radio’s owner and Danubius Radio’s owner buying or leasing frequencies. “There are no negotiations with Slager Radio or the Danubius owners,” said Roxy Radio director Alexander Skvortsov to Hirszerzo (November 13). “There was no request from any party,” said Radio 1 general manager Erdélyi Krisztián.

The fate of both channels’ high profile performers has also been subject of rumor. Neither Slager Radio nor Danubius Radio have released any of their employees from existing contracts.

Politicians not linked to the succeeding applicants for the national licenses have been vocal in calling for the National Communications Office to suspend the awards. Articles in both the Economist and the Financial Times (November 9) referred to the appearance of a political deal targeting foreign investors in Hungary, renewed corruption concerns and the impact on foreign investment in Hungary. (JMH)


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