Boundless New Business for TPC
The TV production center also plans to generate revenue through promotional videos, events, TV commercials, and trade shows
The TV production center also wants to earn its money with image films, events, TV commercials and trade fairsBy Andreas Panzeri This year, the TV Production Center Zurich (TPC) expects sales of CHF 130 million. It already generates 5 percent of its revenue from orders for customers outside of Swiss television. These external orders are to be massively expanded in the future with the production of industrial films, TV commercials, corporate TV, trade fair construction and even event organization.
TPC, which was spun off from Swiss television, builds tasting stands for the Muba, rents out the "Benissimo" décor as a world of experience for the Motor Show, produces training films for the banks, creates the new Migros commercials and organizes an ultimate party for the "Advertiser of the Year" for Advertising Week. These are all events that are all made up and yet have a real background: Since the TPC is no longer only allowed to produce public service as a thank you for concession money, but also has to earn its money with more mundane services for the everyday market, the wildest fantasies have been haunting the industry. However, the TPC's market practices - which have indeed become more aggressive - are still not a case for "Kassensturz". And probably never will be.
"Ancillary business" to become the third pillar
"With the wave of liberalization in the TV sector, the time has come to either look ahead or scale back our activities," explains Roger Sidler, Managing Director of the TPC. So in 2000, the TV Production Center Zurich AG was founded as a subsidiary of SRG SSR idée suisse with one goal in mind: the TPC must grow, find new markets and thus be able to free itself from the dependence on the old parent company. The strategy for this is to build on three different segments.
The aim is to cover the domestic TV market as well as possible with the largest production facility in Switzerland. Unfortunately, orders for RTL/Pro 7 have not developed as planned. However, relations with TV 3 and Sat 1 Switzerland are positive.
Expansion abroad: Constant success has been evident in Germany for some time. However, the opportunities have not yet been exhausted, which is why the TPC is planning to open an office in Germany soon or enter into a cooperation with a German partner.
The TPC is to open up as a comprehensive communications company that can offer everything from corporate TV, business TV and stadium TV to trade fair construction and event organization. These "ancillary businesses" are to become the third pillar.
According to the current key, 70 percent of the expected turnover in 2001 will come from work for SF DRS, just under 10 percent from national sports productions for SRG Holding. The TPC already earns 15 percent from other TV stations in Switzerland and abroad, and 5 percent from orders for other clients.
Cycling as a niche for international entry
The TPC has already made a good name for itself in the sports sector - albeit in "state" times. The Swiss are particularly successful in cycling - also in terms of production. "After selective races, we have now achieved a breakthrough with the Tour of Germany and the Tour of Peace from Poland to Germany," reveals Roger Sidler proudly. One of the TPC's specialties is mobile broadcasts for live productions. This involves coupling motorcycles with a helicopter as a relay and using gyro cams in helicopters.
A popular additional option is GPS analysis, which automatically determines how big the gaps are between the leading riders and the field. "We are very specialized in this area and one of the three leading providers in Europe," says Sidler, who naturally dreams of the Tour de France after several major German cycling races. "That's a goal, but we're meeting with certain political resistance." Securing business in Germany and expanding to Italy, France and Spain next year is therefore the niche policy of the TPC's filming pedalers.
With sitcoms, not everything is funny yet
The company has not yet penetrated the highly competitive German market for sitcoms and soaps. "But we are also not yet convinced that we have no chance at all here," emphasizes Daniela Bassi, Head of Marketing, Sales and Communication at TPC. In any case, there are good contacts with SWR and Bayerischer Rundfunk. "In the cultural sector, too, the TPC is better suited to high-quality and complex productions such as opera recordings, where the customer is also prepared to invest more in quality," says the marketing manager.
Productions where only the cheapest provider is sought are of no interest to the TPC with its high-quality Swiss production resources and Swiss wages. A Uefa Champions League football match in Moscow with a specially acquired Swiss reportage van therefore turned out to be a business flop. Even the cheapest private productions with cameramen from the East, who work at absolutely dumping prices, compete for such "dozen goods".
Classical productions, such as those that the TPC has already realized half a dozen times in Berlin and Dresden for ZDF, for example, are therefore more profitable. The Swiss broadcast the Theaterpreis for Bayerischer Rundfunk.
Due to the wage level, however, such productions are limited to key people from Switzerland and work with local cameramen and technicians, but with Zurich equipment.
Conversely, the Germans are of course also increasingly pushing into the Swiss market. "Fertig lustig" is already being produced by German competitors, some of whom are once again working with people from the free Swiss market.
With the current DRS productions, the TPC has not yet lost many contracts to other production companies, "but the next generation of editors will probably feel freer here and want to form new partnerships," says Sidler.
In the past, editorial offices were allowed to freely allocate 25 percent of their turnover. Now this regulation has been dropped completely. In the relationship between younger program staff and production in particular, "there is suddenly a noticeable break". Although the 800 TPC employees still go to the same canteen in Leutschenbach, the personal relationships with the program creators are "gradually being replaced by business relationships".
As far as TV 3 is concerned, the TPC is currently waiting to see how the Tamedia broadcaster will manage the integration of Tele Züri. At the moment, TPC mainly produces the big entertainment shows such as "Die Bar", "Wer wird Millionär?" and "Klassentreffen".
New formats in the production of commercials
In order to obtain the desired new orders in future, the TPC's acquisition department has been greatly expanded and now has five employees for marketing and sales. Contrary to fears to the contrary, however, the TPC does not want to take work away from the well-known production companies when it comes to commercials. Daniela Bassi: "We are not suitable for an elaborate classic commercial with director stars flown in. We are interested in various special forms of advertising, such as the fact spot."
This current announcement of the weekly content of the news magazine is filmed in the morning in the Facts editorial office with Hannes Britschgi on Werdstrasse. The spot is then immediately edited and dubbed in Leutschenbach so that it can be uploaded to the server on the same day and broadcast in time for the "Tagesschau".
"We are well suited to such commercials because we have the entire production line under control in the same building," argues marketing expert Bassi. Such very quickly produced spots could therefore become a future specialty of the TPC. "They are also cost-effective because the commercial is produced without a lot of art like a TV report."
Another example is Amag News, which requires a large studio. "We are interested in renting out our large infrastructure," says Sidler. His offer: to produce a commercial once a week in the studio on a single afternoon, in all three national languages. "Efficiently shot, just like we know it from TV." The marketing people at the TPC are already discussing this with agencies who would like to work in this style for suitable clients. "Instead of just placing advertisements, we could realize a weekly TV spot - this is still not widespread enough in Switzerland, but perhaps it can now be promoted a little more with us," say the TPC salespeople optimistically.
The measurements are not measured on a small scale
The offer in the exhibition stand construction sector is similarly differentiated. The aim is "certainly not to offer a standard stand for the Muba". However, if someone wants to attract attention at a trade fair with an individually designed stand, the TPC workshops are happy to build the decor. "Creating worlds of experience" with either newly produced decorations or elements from the large stock is the offer here. In future, this could extend to the decoration of a hotel or a particularly attractive shop window.
Sidler rejects the accusation that the fund was built up with concession money with the fact that "we had to dismantle it again". The TPC had to buy the entire infrastructure from SF DRS with a lot of outside capital when it became independent. Two independent companies were commissioned to evaluate and inspect the inventory, studios and technology. They were then integrated into the TPC at book value. "We didn't achieve any advantages at all. The fact that we took over the resources at book value is hardly a starting advantage for us," Sidler calculates, as many pieces of equipment already have to be replaced today. The TPC was founded as an independent company "so that it is a clean operation. Without any suspicion of cross-subsidies". When the company was founded, it was absolutely clear that everything had to be invoiced. "Even a rent for every meeting room we use at SF DRS."
Instead of competing with independent productions, the TPC even sees an advantage for the industry in the distant future, "because together we can build a strong partnership in Switzerland against the threat of competition from abroad".
The TPC wants to become active in the events sector in a completely new way. In the past, it was strictly limited to providing services. Today, the TPC wants to "offer a complete package in cooperation with third parties". For events, the simplest version is to hire the studio. But now a customer can also have an entire party for a hundred high-profile guests organized in Studio 1, with suggestions for theme, decoration, catering and entertainment.
The TPC drives a big box for Sepp Blatter
One such prestigious project is currently being organized for Fifa. Sepp Blatter's association is presenting the "Oscars" award ceremony for the world's best footballers in Zurich. This "Fifa Players Gala", at which the footballer of the year is chosen, has previously taken place in Rome and Brussels. Now the top event, which is broadcast by television stations worldwide, is definitely coming to Zurich.
The TPC is not only providing the entire infrastructure, but is also planning the entertainment, including hiring the international stars for the show blocks. The TPC's new event specialists organize the media conference in Zurich's World Trade Center and order the catering for the party.
Own programs from the former technician's kitchen
The production of in-house programs is still somewhat further in the future. SF DRS has a public service mandate, and the editorial teams involved naturally do not want to develop new programs for third parties in the service of the TPC. "With freelancers, however, it could well be the case in the future that we develop a soap or something similar for another broadcaster on our own initiative," Sidler reflects. The TPC is therefore trying to establish the best possible contact with independent creatives on the market so that "one day we can also offer complete content from the kitchen of the new fixed star in the Swiss film sky".
If that's too un-Swiss for you, the TPC has already produced and successfully broadcast an image film for a well-known Swiss tourist destination, from concept to dubbing.
TPC, which was spun off from Swiss television, builds tasting stands for the Muba, rents out the "Benissimo" décor as a world of experience for the Motor Show, produces training films for the banks, creates the new Migros commercials and organizes an ultimate party for the "Advertiser of the Year" for Advertising Week. These are all events that are all made up and yet have a real background: Since the TPC is no longer only allowed to produce public service as a thank you for concession money, but also has to earn its money with more mundane services for the everyday market, the wildest fantasies have been haunting the industry. However, the TPC's market practices - which have indeed become more aggressive - are still not a case for "Kassensturz". And probably never will be.
"Ancillary business" to become the third pillar
"With the wave of liberalization in the TV sector, the time has come to either look ahead or scale back our activities," explains Roger Sidler, Managing Director of the TPC. So in 2000, the TV Production Center Zurich AG was founded as a subsidiary of SRG SSR idée suisse with one goal in mind: the TPC must grow, find new markets and thus be able to free itself from the dependence on the old parent company. The strategy for this is to build on three different segments.
The aim is to cover the domestic TV market as well as possible with the largest production facility in Switzerland. Unfortunately, orders for RTL/Pro 7 have not developed as planned. However, relations with TV 3 and Sat 1 Switzerland are positive.
Expansion abroad: Constant success has been evident in Germany for some time. However, the opportunities have not yet been exhausted, which is why the TPC is planning to open an office in Germany soon or enter into a cooperation with a German partner.
The TPC is to open up as a comprehensive communications company that can offer everything from corporate TV, business TV and stadium TV to trade fair construction and event organization. These "ancillary businesses" are to become the third pillar.
According to the current key, 70 percent of the expected turnover in 2001 will come from work for SF DRS, just under 10 percent from national sports productions for SRG Holding. The TPC already earns 15 percent from other TV stations in Switzerland and abroad, and 5 percent from orders for other clients.
Cycling as a niche for international entry
The TPC has already made a good name for itself in the sports sector - albeit in "state" times. The Swiss are particularly successful in cycling - also in terms of production. "After selective races, we have now achieved a breakthrough with the Tour of Germany and the Tour of Peace from Poland to Germany," reveals Roger Sidler proudly. One of the TPC's specialties is mobile broadcasts for live productions. This involves coupling motorcycles with a helicopter as a relay and using gyro cams in helicopters.
A popular additional option is GPS analysis, which automatically determines how big the gaps are between the leading riders and the field. "We are very specialized in this area and one of the three leading providers in Europe," says Sidler, who naturally dreams of the Tour de France after several major German cycling races. "That's a goal, but we're meeting with certain political resistance." Securing business in Germany and expanding to Italy, France and Spain next year is therefore the niche policy of the TPC's filming pedalers.
With sitcoms, not everything is funny yet
The company has not yet penetrated the highly competitive German market for sitcoms and soaps. "But we are also not yet convinced that we have no chance at all here," emphasizes Daniela Bassi, Head of Marketing, Sales and Communication at TPC. In any case, there are good contacts with SWR and Bayerischer Rundfunk. "In the cultural sector, too, the TPC is better suited to high-quality and complex productions such as opera recordings, where the customer is also prepared to invest more in quality," says the marketing manager.
Productions where only the cheapest provider is sought are of no interest to the TPC with its high-quality Swiss production resources and Swiss wages. A Uefa Champions League football match in Moscow with a specially acquired Swiss reportage van therefore turned out to be a business flop. Even the cheapest private productions with cameramen from the East, who work at absolutely dumping prices, compete for such "dozen goods".
Classical productions, such as those that the TPC has already realized half a dozen times in Berlin and Dresden for ZDF, for example, are therefore more profitable. The Swiss broadcast the Theaterpreis for Bayerischer Rundfunk.
Due to the wage level, however, such productions are limited to key people from Switzerland and work with local cameramen and technicians, but with Zurich equipment.
Conversely, the Germans are of course also increasingly pushing into the Swiss market. "Fertig lustig" is already being produced by German competitors, some of whom are once again working with people from the free Swiss market.
With the current DRS productions, the TPC has not yet lost many contracts to other production companies, "but the next generation of editors will probably feel freer here and want to form new partnerships," says Sidler.
In the past, editorial offices were allowed to freely allocate 25 percent of their turnover. Now this regulation has been dropped completely. In the relationship between younger program staff and production in particular, "there is suddenly a noticeable break". Although the 800 TPC employees still go to the same canteen in Leutschenbach, the personal relationships with the program creators are "gradually being replaced by business relationships".
As far as TV 3 is concerned, the TPC is currently waiting to see how the Tamedia broadcaster will manage the integration of Tele Züri. At the moment, TPC mainly produces the big entertainment shows such as "Die Bar", "Wer wird Millionär?" and "Klassentreffen".
New formats in the production of commercials
In order to obtain the desired new orders in future, the TPC's acquisition department has been greatly expanded and now has five employees for marketing and sales. Contrary to fears to the contrary, however, the TPC does not want to take work away from the well-known production companies when it comes to commercials. Daniela Bassi: "We are not suitable for an elaborate classic commercial with director stars flown in. We are interested in various special forms of advertising, such as the fact spot."
This current announcement of the weekly content of the news magazine is filmed in the morning in the Facts editorial office with Hannes Britschgi on Werdstrasse. The spot is then immediately edited and dubbed in Leutschenbach so that it can be uploaded to the server on the same day and broadcast in time for the "Tagesschau".
"We are well suited to such commercials because we have the entire production line under control in the same building," argues marketing expert Bassi. Such very quickly produced spots could therefore become a future specialty of the TPC. "They are also cost-effective because the commercial is produced without a lot of art like a TV report."
Another example is Amag News, which requires a large studio. "We are interested in renting out our large infrastructure," says Sidler. His offer: to produce a commercial once a week in the studio on a single afternoon, in all three national languages. "Efficiently shot, just like we know it from TV." The marketing people at the TPC are already discussing this with agencies who would like to work in this style for suitable clients. "Instead of just placing advertisements, we could realize a weekly TV spot - this is still not widespread enough in Switzerland, but perhaps it can now be promoted a little more with us," say the TPC salespeople optimistically.
The measurements are not measured on a small scale
The offer in the exhibition stand construction sector is similarly differentiated. The aim is "certainly not to offer a standard stand for the Muba". However, if someone wants to attract attention at a trade fair with an individually designed stand, the TPC workshops are happy to build the decor. "Creating worlds of experience" with either newly produced decorations or elements from the large stock is the offer here. In future, this could extend to the decoration of a hotel or a particularly attractive shop window.
Sidler rejects the accusation that the fund was built up with concession money with the fact that "we had to dismantle it again". The TPC had to buy the entire infrastructure from SF DRS with a lot of outside capital when it became independent. Two independent companies were commissioned to evaluate and inspect the inventory, studios and technology. They were then integrated into the TPC at book value. "We didn't achieve any advantages at all. The fact that we took over the resources at book value is hardly a starting advantage for us," Sidler calculates, as many pieces of equipment already have to be replaced today. The TPC was founded as an independent company "so that it is a clean operation. Without any suspicion of cross-subsidies". When the company was founded, it was absolutely clear that everything had to be invoiced. "Even a rent for every meeting room we use at SF DRS."
Instead of competing with independent productions, the TPC even sees an advantage for the industry in the distant future, "because together we can build a strong partnership in Switzerland against the threat of competition from abroad".
The TPC wants to become active in the events sector in a completely new way. In the past, it was strictly limited to providing services. Today, the TPC wants to "offer a complete package in cooperation with third parties". For events, the simplest version is to hire the studio. But now a customer can also have an entire party for a hundred high-profile guests organized in Studio 1, with suggestions for theme, decoration, catering and entertainment.
The TPC drives a big box for Sepp Blatter
One such prestigious project is currently being organized for Fifa. Sepp Blatter's association is presenting the "Oscars" award ceremony for the world's best footballers in Zurich. This "Fifa Players Gala", at which the footballer of the year is chosen, has previously taken place in Rome and Brussels. Now the top event, which is broadcast by television stations worldwide, is definitely coming to Zurich.
The TPC is not only providing the entire infrastructure, but is also planning the entertainment, including hiring the international stars for the show blocks. The TPC's new event specialists organize the media conference in Zurich's World Trade Center and order the catering for the party.
Own programs from the former technician's kitchen
The production of in-house programs is still somewhat further in the future. SF DRS has a public service mandate, and the editorial teams involved naturally do not want to develop new programs for third parties in the service of the TPC. "With freelancers, however, it could well be the case in the future that we develop a soap or something similar for another broadcaster on our own initiative," Sidler reflects. The TPC is therefore trying to establish the best possible contact with independent creatives on the market so that "one day we can also offer complete content from the kitchen of the new fixed star in the Swiss film sky".
If that's too un-Swiss for you, the TPC has already produced and successfully broadcast an image film for a well-known Swiss tourist destination, from concept to dubbing.
