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Week of January 6, 2014

Like-minded newspapers converge
“Good news,” says politician

A transaction involving a big newspaper publisher acquiring a majority stake in a well-respected but secondary publisher might in days gone bye have brought scowls from well-meaning watchers of media concentration. But as the majority owners of daily newspaper Le Monde prepare to take 65% of Nouvel Observateur for €13.4 million, reports Les Echos (January 7), the French media sphere seems rather pleased. Culture Minister Aurélie Filippett called the prospect “good news.”

Le Nouvel Obs owner Claude Perdriel, slightly more senior to Rupert Murdoch, indicated in recent months an interest in selling the publishing company, which includes - not insignificantly - popular news web portal Rue89. Negotiations with holding company Le Monde Libre (LML) investors Pierre Bergé, Xavier Niel and Matthieu Pigasse are in that fabled exclusive phase through the end of February.  Spanish publisher Prisa owns 20% of LML and is not involved in the Nouvel Obs transaction. (See more on media in France here)

Both Le Monde and Le Nouvel Observateur are considered center-left editorially. M. Perdriel’s conditions for the transfer include no change in the “social-democratic” editorial line, no change in top management and a personal veto over any lay-offs. He’s also demanded the two newspapers remain separate. Not included in the suggested transaction at magazines Challenges and Sciences et Avenir. (JMH)

EC not standing up, free expression advocate
“a clear competency”

In a series of online articles published this past week, freedom of expression advocate Index on Censorship explores the role of the European Commission (EC) in policing media plurality.  The EC has avoided confronting Member States, preferring ‘name and shame’ public statements or deferring to the Council of Europe (CoE). EC Vice President Neelie Kroes called for a “principled debate” on media pluralism in June 2012, the issue being “indeed complex,” but “the EU does not have the legal competence.” Index on Censorship head of advocacy Mike Harris, in the articles (January 7 and 9) disagrees. (See here)

The arguments for Brussels’ involvement in media pluralism, media ownership as well as press freedom issues reflect the well-justified view that governments of some Member States just cannot give up notions of controlling news media or ceding control to compliant owners. Italy, “the most egregious offender,” under the rule of former Prime Minister and media owner Silvio Berlusconi is cited, as it often is, as the EC’s blind-eye toward political control over news media.

Mentioned, too, is suspiciously blunt political interference with news media in Hungary and Germany as well as France and Ireland. “The European Commission now has a clear competency to protect media freedom and should reflect on how it can deal with political interference in the national media of member states,” wrote Mr. Harris.

Failure of EU Member States to provide asylum to NSA leaker Edward Snowden grates on the freedom of expression advocate. “The failure of the EU’s Member States to give shelter to Snowden when so much of his work was clearly in the public interest within the European Union shows the scale of the weakness within Europe to stand up for freedom of expression.”

Public station not political, says director
Variety of voices

Public broadcasters typically follow a formula for national radio offerings. A general interest channel with emphasis on news and public affairs is a must. Culture and arts almost always have their own channel. More often than not there’s a channel targeting young people. Those broadcasters able to provide additional channels occasionally turn experimental.

Radio Trojka, the third channel of Polish public radio, is popular and wholly indescribably in common broadcasting parlance. Held together with a thin thread of rock and alternative music hosted by sometimes ageless characters the channel truly does offer a little bit of this and a little bit of that. All of it together has come with a degree of notoriety as well as controversy.

In national radio ratings Radio Trojka has placed in the top five for several years, leading to calls from commercial competitors and sympathetic politicians for its privatization. Last year Radio Trojka produced and promoted a series of events around Polish National Day that received criticism as too patriotic. “You have to have a lot of bad will to say that was political,” said director Magda Jethon in a far-ranging interview with Wirtualnemedia.pl (January 7). “A special attack on Troika came from conservatives, who believe they have a monopoly on patriotism.” (See more on media in Poland here)

“Radio Trojka cannot afford to stand on one particular political side, the government side,” said Ms Jethon. “I hear a variety of voices on our station, often extreme. Sometimes the right attacks us, sometimes the left. I think it allows people to believe that we are objective.” (JMH)

Public youth channel adds music, video and podcasts
The future is already here

There’s a new schedule, format and direction at French public radio youth channel Le Mouv’. All this was unveiled this week, complete with press kit quoting American science fiction writer Williom Gibson: “'The future is already here – it's just not evenly distributed.” Le Mouv’ has a new director, Joël Ronez, who wants to succeed with a young, urban audience where others have struggled.

Nearly all European public broadcasters offer radio channels for young people; sometimes teens, sometimes a bit older listeners. And nearly all strive for position among private/commercial radio channels with youthful show hosts amidst hit music, intention being to introduce the public radio style to a new audience. Of course, that new audience might find their favorite tunes on Spotify and such. (See more of media in France here)

There’s more music on Le Mouv’, 70% in total, up from 50%. Morning hours will continue to offer more news but other speech-based productions from short-form drama and documentaries to “sound creations” will appear as website podcasts in advance of broadcast. A live video supplement arrives in September, “inspired” by Belgian public broadcaster RTBF Pure Vision.

Listeners in France can find Le Mouv’ on 32 FM frequencies, the least of Radio France channels. Last September owners of Oui FM, with FM frequencies in northern France, floated the possibility of merging some program offerings with Le Mouv’ on its channels and Radio France officials seemed interested. Regulator CSA hasn’t decided.(JMH)

Broadcasters air Greek tragedy documentary
Long story

For public broadcasters the big story of 2013 was the abrupt closure of Greek public broadcaster ERT. More than two thousand media workers were dismissed, ownership of facilities transferred to the government disposal agency and public demonstrations followed. Some former ERT employees continued broadcasting, occupying studios. International media organizations joined the protests.

Greek documentary maker and social activist Yorgos Averopoulos filmed it all, from the TV channels going dark to radio channels fading to fuzz. “The Lost Signal of Democracy” will premiere this week (January 8) on Belgian public broadcaster RTBF and Austrian public broadcaster ORF, in French and German respectively.

Several others plan to broadcast the documentary, according to Exandas Documentaries website, which offers a trailer in English. There’s a TV version (52 minutes) and a theatrical version (65 minutes), which is set for release in Greece later this spring. The DVD version will be available in Greek, English and French. (JMH)

Radio not a core asset
Buyers for some, not for others

That wind of change, sometimes hot and sometimes cold, continues to propel big media owners to their “core business,” just as long as it’s digital. RCS MediaGroup, publisher of big newspapers in Italy and Spain, is typical. Company shareholders will hear more about divesting radio broadcasting assets at the forthcoming meeting, reported Radiocor (December 27).

RCS MediaGroup is a minority shareholder in Italian broadcaster Finelco, owner of Radio 105, Radio Monte Carlo and Virgin Radio Italia. The company’s partnership agreement with Finelco majority owner Alberto Hazan expires in May.  Investment house Clessidra Capital principal Clausio Sposito expressed interest in the RCS MediaGroup stake in Finelco, reported Reuters (December 5). (See more on media in Italy here)

Also on the block is all-sports radio channel in Spain Radio Marca. In addition to El Mundo, RCS MediaGroup owns the sports daily Marca and launched Radio Marca in 2010. Potential buyers have not, so far, come forward.

Tire-kickers invited to UK
That will look nice in your airplane, sir

Testing our alertness after well-enjoyed holiday revelry was a bit of buzz from the Financial Times (January 2) that Northern & Shell owner Richard Desmond has enlisted the aid of investment bank Barclays to search for a suitable buyer for UK commercial TV Channel 5. The asking price approaches 10 times assumed cashflow, GBP700 million or just shy of €850 million. Nobody ever said Mr. Desmond lacked a certain vision; the 2010 Channel Five purchase price from RTL Group a bit over GBP100 million.

Media owners have certainly picked up their interest in buying, selling and trading over recent months; some transactions being huge, most more modest. By and large, all big recent deals have been strategic as companies redefine their core assets. Purely financial investment in media operations, bleeding digital edge notwithstanding, seems limited to trophy acquisitions by billionaires. None of this will measurably change in the coming year.

Nothing in the cards or tea leaves suggests the UK advertising market will make an astounding leap or that media buyers will be putting a bigger share into traditional media. Carriage fee revenues are different, competition from platform providers for subscribers tough as ever. Time Warner subsidiary Turner Broadcasting has been floated as a possible buyer for Channel Five. Possible or not, it was Gerhard Zeiler, then RTL Group CEO, who sold Channel Five to Northern & Shell. Now he’s president of Turner Broadcasting International.

Just saying… (JMH)

In 2013 regulator collects less in fines
Naughty TV people

Ah, the year draws to a close, news being sparse, and a clever journalist needs something to post. A bit of research and there it is. The number and total amount of fines proscribed by Romania’s media regulator National Audiovisual Council (CNA) in 2013 were lower than in 2012, reported Mediafax (December 30). The CAN also issued 154 public appearance summons to broadcasters and revoked six licenses.

The worst offender was television channel Antena 3, which racked up seven fines totaling RON 295,000, just under €66,000. Next was all-news channel România TV; seven fines for RON 250,000, about €56,000. Following close behind with RON 240,000 in fines was Antena 1.

TV channel OTV was fined RON 160,000 in 2013, about €35,750, but the owners had already lost the license for non-payment of previous fines. Naughty. Naughty.

Radio station owners, by comparison, faced far less pain. Kiss FM was fined twice for a total of RON 15,000 (€3,355). The CNA fined Radio Guerrilla RON 10,000 (€2,236) and revoked the license. It seems the operator of the station wasn’t the owner. Radio Zu was hit with one fine for RON 2,500, €560.

The CNA charged a total of RON 2.2 million in 2013 (€496,000), down from RON 3.08 million in 2012 (€690,000). (JMH)

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