Commission of the Council of States clearly welcomes media funding in principle

The Committee for Transport and Telecommunications of the Council of States (KVF) approved the bill by eleven votes to two, as reported by the parliamentary services on Monday. An intact media landscape is indispensable for Switzerland from a democratic and political point of view. In addition to an expansion of indirect press subsidies, the package of measures provides for support for online media and general measures in favor of electronic media. A majority of the committee considers the bill to be balanced. A minority requested that it be rejected.

Priority help for the little ones

In the detailed discussion, the committee made adjustments to the Federal Council's draft. It unanimously requested that the Council link delivery discounts to circulation. The higher the circulation of a newspaper or magazine, the lower the discounts should be. With this gradation, the Commission wants to provide greater support for the local and regional press.

When it comes to promoting online media, the Commission backs the Federal Council. Accordingly, only online media that also finance their offerings through services provided in return by their users should be supported. A motion calling for support to be extended to free offerings was rejected by nine votes to three. A minority is sticking to this motion.

Division of the template discussed

A division of the bill is also under discussion. According to one proposal, the expansion of indirect press funding and support for electronic and online media should be split into two drafts. The Council of States committee only narrowly voted against this by 7 votes to 6. The majority was of the opinion that print and online represent a single entity in today's media world and that their promotion should therefore be discussed together. A minority was in favor of a division in order to conclude the consultation on indirect press funding as quickly as possible.

The committee will continue to discuss the media package at the end of May. The bill will be discussed for the first time in the small chamber during the summer session.

New model

In addition to the SRG, which currently receives CHF 1.2 billion from the fee pot and will receive CHF 1.25 billion from 2021, CHF 111 million per year has so far gone to the private media: CHF 81 million to local radio and television stations and CHF 30 million to the postal delivery of regional and local press.

According to the Federal Council's draft, CHF 50 million instead of CHF 30 million will now be available for indirect press funding. Online media are to receive CHF 30 million per year. They have not been funded to date.

Media market in crisis

In the past, opinions have differed on the expansion of media funding. Various reforms failed to find a majority - whether in the government or in parliament. However, the pressure on the media is constantly increasing. Even before the coronavirus crisis, advertising revenues were falling rapidly. Since the turn of the millennium, the Swiss press has lost more than two thirds of its advertising revenue. The pandemic has exacerbated the existing problems. Publishers are therefore being forced to pass on more and more costs to subscribers and cut staff.

Emergency funding capable of winning a majority

The coming months will show whether the media package is capable of gaining a majority in parliament. What is clear is that Parliament has recognized the emergency situation. The National Council and Council of States voted in favor of bridging aid in the extraordinary session at the beginning of May. This includes temporary funds so that the Keystone-SDA news agency can provide its basic text service to Swiss media customers in German, French and Italian free of charge. It also includes free or discounted newspaper delivery and emergency aid of CHF 30 million for private radio and TV stations.

The measures are intended to bridge the gap until the regular media package comes into force. The administration is currently working on the corresponding emergency ordinance. (SDA)