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ftm Tickle File 13 April, 2008

 

 

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.

We are able to offer this new service thanks to the great response to our Media Sleuth project in which you, our readers, are contributing media information happening in your countries that  have escaped the notice of the international media, or you are providing us information on covered events that others simply didn't know about. We invite more of you to become Media Sleuths. For more information click here.

Week of April 7, 2008

Love languages? Make a video!
...European Commission offers grants...

This is the European Year of Intercultural Dialogue, a hopelessly long name for an important initiative to show off the wealth of Europe's languages and cultures. The organizers, starting with DG Education and Culture, are offering grants to young filmmakers for 3 minute shorts through a program called E3'film. (See the release here) The deadline is very short: April 18th.

Yet another reason media over IP will happen in Asia first
...growth accelerating...

China became the top market for broadband in 2007, says Informa Telecoms in their latest report. (Read presser here)

Several interesting facts: Informa believes the growth rates in Asia will slow as the new customer base falls. Also, wireless broadband is replacing DSL/ADSL services.

Broadband growth rates in India and Russia are in triple digits.

If broadband subscriptions in China, India and Russia accelerate any faster...

Don’t Steal Newspapers!

In Honedale, Pennsylvania a guy was seen stealing a couple of newspapers from a supermarket. A complaint was filed, the police found the guy and charged him with retail theft, a felony – they kind of threw the book at him because allegeldy he had done the same thing four times previously.

So they took him to court where he was told his get-out-of-jail bail card would cost $2,500. He didn’t have the money so back to jail he went where he will languish until his next court appearance April 16.  If the felony charge sticks he could get serious jail time.

Obviously, the guy needs an attitude readjustment course to make him understand stealing newspapers is not on, but one can’t help but think deep down how great it is in this day and age that someone thinks so highly of a newspaper that since he apparently cannot afford to buy one regularly he actually risks jail for his favorite read.

A Newspaper Reader Tells It Like It Is

Remember that great line by circus entrepreneur PT Barnum "You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time." It’s a line that newspapers publishers, as they continually cut back on their editorial product, would do well to remember.

A newspaper reader in Chico, California wrote to his local newspaper with his thoughts on the product he was now receiving, and the newspaper, the Enterprise-Record, to its credit printed it. And thus we reprint here in full. Well worth a read!

“The incredibly shrinking newspaper gives me pause. In Colonial times newspapers were called "blankets" because they were almost as large as a blanket, owing to the fact that papers were taxed according to the number of pages. The tabloid format came about in the 1920s so people could easily read them on street cars, buses and subways.

“Now the Enterprise-Record's paper is shrinking because of budget worries. Since 85 to 95 percent of a newspaper's revenue comes from advertising, we can only assume that the faltering economy is disemboweling newspapers.

“Currently the E-R is doing puff pieces and wire stories (the AP Wire service started with rowboats, by and by in the early 1800s), limiting in-depth local news.

“Is corporate management taking too much money from the newspapers? Is the looming recession driving newspapers out of business?

“The province of semi-illiterates, TV news, is superficial. We need newspapers for in-depth coverage. With banal newspapers we will become a nation of idiots. Rather than cutting costs, the E-R should redistribute the revenue to keep the presses rolling at full steam.

— Michael Peters, Chico”

Slovak media law passes
…limits press freedom…

After months of political arm-twisting Slovakia Prime Minister Robert Fico succeeded in getting the country’s media under greater political control. The vote yesterday (April 9) came as the Parliament continued to debate ratification of the EU Lisbon Treaty. Media watchers including OSCE warned that the new media law will damage press freedom.

Prime Minister Fico has long complained about critical press coverage.

Can Internet Advertising Withstand A Recession?

The Internet is not impervious to downward economic pressures but it is more resistant than any other advertising segment, according to a new report from eMarketer.

“Whatever label you slap on the current economic climate, US ad spending both online and offline will be shaped by overarching business trends,” according to David Hallerman author of US Online Advertising: Resilient in A Rough Economy. “While Internet ad spending is in no way immune to a recession’s impact, it is more resistant to ad spending cutbacks than are other media,” he said.

He believes that Internet advertising will jump to 10% of the total US advertising spend by the end of 2009, reaching $30 billion. This year he predicts it will be 8.8% of total US ad spending equal to $25.9 billion.

Developing Markets To Lead Advertising Surge

ZenithOptimedia says that developing markets will contribute 63% of ad expenditure growth between 2007 to 2010 and will increase its share of the global ad market from 27% to 33% with Asia Pacific overtaking Europe in 2010 to become the second largest ad market behind the US.

It predicts that this year the Internet will account for 9.7% for world ad expenditure and will reach 12.3% in 2010. Globally newspapers are forecast to have a 25.9% share of global advertising this year but the survey says that will drop to 23.9% by 2010 as the Internet share races ahead. From this year through 2010 newspaper advertising is forecast to grow globally by $4.4 billion whereas the Internet will jump by $19.4 billion.

Sports Accreditation Agreement in Illinois

We’ve been watching for some now the accreditation dispute in the US state of Illinois between the Illinois High School Association and the state’s newspapers over accreditation rights and what newspapers were being asked to give up in order to take their pictures. It may have been just about covering high school sports but the issue had far wider ramifications, the two sides went to court and meanwhile the Illinois Legislature worked on legislation giving newspapers by law what they wanted.  But now comes word there is an out-of –court settlement and it looks like newspapers have got what they wanted.

The dispute centered on the IHSA saying the media could take pictures for media purposes, but they could not sell those pictures commercially to fans and parents and the like because the IHSA has an exclusive contract with a third party for that business. Those media that didn’t agree to the rules didn’t  get access to the media area of games.

Under the settlement, the IHSA and the Illinois Publishers Association agreed:

1) The unrestricted use and sale of images by newspapers.

2) IHSA retains the right to hire an official photographer who will not have preferential access to events except for training, promotional and educational purposes.

3) IHSA may continue to credential newspaper representatives and establish shooting zones for safety purposes.

4) The press credentialing process will not be used to limit floor, field or site access for newspaper photographers.

Do Not Deliver

As if newspapers didn’t have enough circulation problems there are moves afoot to try and legally stop newspapers being delivered to households that don’t ask for them – the laws targeted mostly at free newspapers that are tossed onto every driveway in upscale residential areas. Apart from the litter, newspapers piling up on a driveway over a few days are a sure sign to burglars that the occupants are away.

The first state to consider such a ban was Maryland with a state legislator calling for newspaper publishers to comply within seven days to a request to stop an unsolicited home delivery, and if the deadline was not met there could be a $100 a day fine. Free newspapers also had to print a toll-free phone number in a conspicuous location so people knew who to call to get delivery stopped. But the newspaper industry successfully put an end to that piece of legislation for this year by promising to work harder to stop unwanted deliveries.

San Francisco is still considering a similar Bill.

Public broadcasters seek ‘synergy’
somebody will be cleaning out their desk

Swiss public broadcasters Radio Suisse Romande (RSR) and Television Suisse Romande (TSR) have announced a ‘fusion’ of news operations to achieve ‘synergy’ in the digital age. It’s an old concept, a favorite of the accounting department. Seeking ‘synergy’ and ‘fusion’ are less than vague codewords for cutting costs… and jobs.

Timing couldn’t be more awkward as RSR union leaders already have knives sharpened. Last Friday (April 4) the RSR union called off, at least temporarily, a strike aimed at protesting the dismissal of a whistleblower employee. RSR has dug in their heels on that problem, which has become very public. (JMH)

Slovak Parliament takes up media law
…second reading, holding up Lisbon Treaty…

Slovak President Ivan Gasparovic whined yesterday (April 7) that parliamentary debate over proposed revisions in the country’s media law is undermining adoption of the EU Lisbon Treaty. (More on the Press Act here) Members of Parliament have refused to vote on the Lisbon Treaty until Prime Minister Robert Fico withdraws a proposed media law, seen by media watchers as a political power grab to control the country’s broadcasting.

The Slovak Parliament has scheduled the second reading on the media law today (April 8). (JMH)

More eyes (and money) on Premiere
money loves company

Turner Broadcasting, a division of Time Warner, acquired an 8.5% stake in Premiere Star, a division of German broadcaster Premiere, announced yesterday (April 7). Only a few days earlier News Corp raised its stake in Premiere. (Read more here)

Far be it for me to speculate that perhaps Mr. Murdoch’s interest in German TV caught the attention of others with money. (JMH)

Disney in China and Russia
…chasing the up-side…

We all know where the media business is stalled and we all know where it isn’t. Rising to that reality Disney Interactive, division of the Walt Disney Company, announced its purchase of Chinese videogame developer GameStar, its first major Asian expansion.

Also yesterday (April 7) Disney-ABC Television signed a multi-year licensing agreement with Russian’s CTC Media, operator of the number 4 free-to-air TV channel. Disney will supply features, live-action, animation and more.

Western companies have a tough time taking stakes on Russian media, made more difficult last week as the lower house of the Russian parliament, the State Duma, enacted a law limiting foreign entities taking stakes in ‘strategic industries.’ Those include the media. CTC Media and Swedish shareholder MTG recently shuffled their holdings just days before the Duma vote. (JMH)

Canadian Newspapers Are Doing Just Fine/h4>

South of the border – that’s the Canadian-US border – many newspapers are in the financial dumps, but up north in Canada they’re doing just fine and they want the world to know that they are not affected by the poor US results. 

The Canadian Newspaper Association (CNA) said total 2007 revenues for the country's newspapers, including online operations, slipped just 0.8 per cent to $3.6 billion with print advertising down 2.4% but online grew 29% over 2006.  Canadian newspaper circulation was down 1.2% to $808.9 million, after rising 3.8% the year before.

Compare that to the much larger US market where print advertising revenue fell 9.4% last year to $42 billion, according to the Newspaper Association of America -- the steepest drop since the NAA began keeping its tally in 1950. U.S. online advertising grew 18.8%, down from 31.4% in 2006.

Canadian results are “in sharp contrast to the U.S., where a contracting economy helped drive print ad revenues to the biggest year-over-year fall in more than half a century,'' the association noted.

``The narrative about newspapers in the U.S. has been consistently negative in recent years, and that negativity has unduly influenced perceptions of the health of the newspaper industry in Canada,'' stated Anne Kothawala, CNA president. ``Advertisers and their agencies, many of whom are global businesses, should ensure that their Canadian buying decisions are not tainted by the U.S. data.''

Internet To Be UK’s Largest Advertising Sector By End 2009

The UK’s Internet Advertising Bureau (IAB) predicts that by the end of 2009 Internet advertising will overtake TV advertising to be the UK’s largest advertising medium.

“Wirth broadband speeds on the up and consumers spending more time on more sites, the outlook for online advertising is rosy – in fact we expect it to overtake TV in 2009 when it will become the UKs biggest medium,” according to IAB chief executive Guy Phillipson.

Online advertising grew 38% in 2007 according to the IAB report.

Malta gets Family TV channel
…but not ‘adult’ channel…

Two local Malta partners have realized their long ambition to launch an independent television channel. Family Television Network became the 8th free-to-air television channel (Saturday April 5) firing up with the live broadcast of a local fireworks festival. Dumped from the cable bouquet was RAI News 24.

Television producers Andrew Farrugia and Norbert Friggieri merged their production houses Far-Fetched Media and Modern Images Studios last year to secure the new license. The minimalist introduction, after the fireworks, will feature a four-hour evening drama block. By September live programming will be in full swing, including news and public affairs. (More on the Malta broadcasting scene here)

Not receiving a license, or even access, is the ‘adult’ channel proposed by two Dutch ex-pats living in very conservative Malta. Wilm and Linda, not otherwise identified, sold their ‘adult’ television studio in the Netherlands and moved to Malta.

“The authorities are not being helpful at all,” said Wilm to Malta Star. “They are claiming that distributing adult content freely is a criminal offense in Malta.” (JMH)

European websites most effective
Coca-Cola beats Pepsi, too

UK web consultant Bowen Craggs released its 2008 ranking of most effective corporate websites, with sponsorship assistance from the Financial Times, and 8 of the top 10 company sites judged are European. The FT Bowen Craggs Index rates corporate websites on how effective they are for customers, investors, media and job seekers. Siemens (Germany) ranked number one.

Verizon Communications (US) was rated best in media accessibility, though it did not make the Index top ten. It’s site is “worst bar none on construction,” said the report summary.

“Too many US sites still suffer from poor governance (how they are run), which leads to a strange mix of good content and terrible functionality.”

“Americans are much more hands off,” said Bowen Craggs senior consultant David Bowen. “Google has good content, but try to move between them. You can't. It very much reflects the famous Google culture of let everyone do their own thing.

“But in the last year, we started to see American companies go the same route as the Europeans.”

What’s the big tip? Revise, revise, revise. Where did I hear that before? (JMH)

 

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