Hot topics click link for more
Ad revenues growing, online slowing, where’s the money going?
Be patient
There was a time when double-digit annual growth in online advertising stunned the media sphere. Now, it’s stunning – to some – when it’s noticeably slower. And so it is as Nielsen Media reports German gross ad revenues by sector for 2013.
Internet ad revenues in 2013 grew by 3.5% to €2.959 billion, now accounting for 11.1% of the ad market. This time last year Nielsen Media reported a 17.3% year to year increase. Ad business trade portal W&V (January 16) suggested a “gross distortion.” (See more on ad spending here)
Taking the Nielsen Media figures at face value, gross ad revenues in Germany rose 2% year on year to €26.67 billion. TV remains the big dog at 44.9% of the ad market, €11.987 billion, up 5.7%. Daily newspaper ad revenues continued to plummet, down 7.6% to €4.632 billion, still 17.4% of total ad revenues. Gaining most year on year by percentage was outdoor advertising, up 11% to €1.452 billion. Radio ad revenues were up 3.6% to €1.588 billion, 6% of the total ad market. (See more on media in Germany here)
Most all ad spending and revenue estimates come with reasonable caveat of error. Be that as it may, ad revenues in Europe generally are up but far from pre-recession levels. TV ad revenues remain strong as print sector advertising revenues continue falling. And, too, growth rates for online ad revenues have slowed. The “distortion” comes from blurring methodological lines between online advertising and other sectors that increasingly present their brands on the web. (JMH)
“Adversity” claims radio station
Bankruptcy trustee claims license
Music First Network, owner of Zürich local radio station Radio 105, entered bankruptcy this week, effectively closing the station and throwing broadcasters in the Swiss-German speaking part of Switzerland into a bit of turmoil. Radio 105 had been a cable-only channel for many years, riding out the storms of competition to be awarded an FM license in 2011. But a sales-house deal with Radio Energy collapsed at the end of 2012 followed by investor exit.
The company cited “considerable market resistance” and a “difficult market situation” in a posting to the station’s website. “Adversity finally made a successful continuation impossible.”
Swiss law on these matters is rather blunt. Once declared, the bankrupt party loses all control of the business and assets. A court appointed bankruptcy trustee takes over. The filing took place Tuesday (January 14) and a loop of endless music appeared on the FM frequency.
The Radio 105 broadcasting concession and associated FM frequency authorizations are now under the control of the bankruptcy trustee. Proposals to transfer the concession, assuming agreement of all parties, first goes to BAKOM, a federal agency, which decides whether or not to submit something to the Federal Department of Environment, Transport, Energy and Communication. “In the case of Radio 105, BAKOM supports a sustainable solution,” said regulator spokesperson Deborah Murith, quoted by Klein Report (January 15).
Several Swiss-German region broadcasters beat a path to the offices of media regulator BAKOM, each with their own solution. Radio 1 owner Roger Schawinski proposed taking over the Radio 105 FM frequencies, broadcasting from the Radio 1 facility and holding onto some of the 20 now unemployed staff members. Indeed, the music loop broadcast on the Radio 105 frequencies, plus a brief explanation of the current situation, originated from the Radio 1 studios, which amused Swiss media watchers but not the bankruptcy trustee who ordered it halted. Mr. Schawinski began his radio career operating a pirate station before private radio was legalized.
On mission to deepest, darkest UK
like other repressive regimes
The biggest media watch and trade organizations have, when circumstances dictate, organized journeys to share concerns and seek information. Press publisher organization WAN-IFRA has undertaken these missions, typically to places where dictators and authoritarian regimes threaten the health of newspapers. This week a group of very senior editors, including Dawn (Pakistan) Editor-in-chief Zaffar Abbas, are reaching out personally to the government of the United Kingdom.
Obviously, the concern among WAN-IFRA directors and members is the brewing froth in the UK over statutory regulation of newspaper publishers brought on by broad complaints following allegations of illegal and corrupt practices within the industry.
“The British government’s actions have far reaching consequences across the globe, particularly within the Commonwealth, and any threats to the independence of journalism in Britain could be used by repressive regimes worldwide to justify their own controls over the press,” WAN-IFRA Vincent Peyrègne in a statement. (See WAN-IFRA presser here)
Press/media freedom and journalist’s rights are enshrined in United Nations and European Union treaties. Current UK government leaders have recently made noises about opting out of certain treaty provisions. (JMH)
“Competent authorities” send message
Out of Russia and “out of Kafka”
Russian authorities prevented former Financial Times Moscow reporter David Satter from reentering the Russian Federation, where he’s been living since September 2013, reported the Guardian (January 13), others following. As his Russian visa had either expired or was expiring, Satter left Russia for Ukraine in December, having received assurance that the visa renewal would be approved. New or renewal visa applicants, in common practice, must make application outside Russia. At the Russian embassy in Kiev he was informed the Federal Migration Office had rejected the application for renewal.
Satter had been the Financial Times Moscow reporter from 1976 until 1982 after which he dispatched from the Soviet Union for the Wall Street Journal. More recently he’d taken up a consulting post in Moscow for Radio Liberty (RFE/RL), an US government funded international broadcaster. Appearing on CNN International, Satter said Russian authorities in Kiev read a statement that “competent authorities,” which he believes is the Russian security service FSB, deemed his presence in Russia “undesirable.” Those or other authorities said Satter had violated immigration laws and had been fined, reported Interfax (January 14).
Satter has written three books on Russia and the Soviet Union and has been working on a new book about the 1999 Moscow apartment bombings, a favorite of conspiracy theorists but probably not Russian authorities who have long been less than thrilled with much of Radio Liberty reporting. Speaking to Russian channel TV Rain (January 14), Satter said his visa experience is “right out of Kafka,” and sent his son to Moscow to retrieve personal belongings. (See more on media in Russia here)
Russian media, slow to pick up on the story or disinterested, referred to other examples of foreign nationals working as journalists in Russia being denied entry or visa renewals. Moldovan citizen Natalia Morar, working for Russian magazine New Times, was denied entry in 2007 as she returned from Israel, reported ITAR-TASS (January 14). In 2011 Guardian journalist Luke Harding was expelled from Russia after a series of blunt reports.
Commission to examine film rights deals
Some more than others
The European Commission’s Directorate of Competition has begun a formal investigation into contractual agreements between European pay-TV companies and US film producers. Officially, the investigation will “allow us to look at the restrictions in agreements between film studios and pay-TV broadcasters that grant ‘absolute territorial exclusivity’ to these broadcasters,” said Competition Commissioner Joaquin Almunia at a press conference (January 13). It follows from similar action on sports rights that concluded at the European Court of Justice (ECJ) in 2011.
“If I live in Belgium and want to subscribe to a Spanish pay TV service, I may not be able to subscribe at all if there is absolute territorial exclusivity,” explained Commissioner Almunia, who is Spanish and lives in Belgium. And further, “we are not calling into question the possibility to grant licenses on a territorial basis, or trying to oblige studios to sell rights on a pan-European basis.”
Only US-based film producers were mentioned; Twentieth Century Fox, Warner Brothers, Sony Entertainment, NBCUniversal and Paramount Pictures. European pay-TV companies that have been called to question include, according to the DG Competition statement, Prisa TV’s DTS in Spain, Canal+ in France and three companies owned or principally controlled by 21st Century Fox (BSkyB, Sky Italia and Sky Deutschland) the TV and entertainment company formerly known as News Corporation and owner of Twentieth Century Fox studios. Time Warner, owner of Warner Brothers, has limited TV holdings in Europe.
“The opening of the investigation does not prejudge its outcome,” concluded Commissioner Almunia’s statement. The separate DG Competition statement said the inquiry had no deadline. (JMH)
Cross border radio cooperation
from traffic reports to orchestras
Public radio broadcasters in Germany and the Czech Republic are to begin a new working agreement that will include exchanging editorial content. Initially MDR 1 Sachsen and CRo Sever will jointly produce cross border traffic reports but also share “information of programming, technical and legal matters,” said the joint statement (January 9). Editors from both organizations will meet to explore further cooperation that could include orchestras and choirs.
MDR1 Radio Sachsen is the main general interest radio channel of Mitteldeutscher Rundfunk (MDR – Central German Broadcasting) serving the German Länder Saxony. CRo Sever is the regional Czech public radio channel in the Liberec and Usti regions that border Saxony. “Europe growing together is an important part of the public broadcasting mission,” said MDR managing director Karola Wille.
The agreement is “possible inspiration in the future” for more cooperation, “particularly for news and current affairs stations MDR-Info and CRo Plus,” said CRo director general Peter Duhan.
Public broadcasters in different countries have long cooperated on various ad-hoc projects, often with the European Broadcasting Union (EBU as intermediary. Direct and ongoing joint efforts are increasingly discussed between neighboring public broadcasters. Last year a similar cooperative agreement was signed between MDR and Polish public radio. (JMH)
|
