Tamedia without TV/radio?
Tamedia appears to be reviewing its strategy regarding TV and radio. The focus is on Tele Züri—which is reportedly operating at a loss—and Radio 24. What would a sale of these stations mean for Tamedia, and who might be potential buyers?.
At the 2009 annual meeting of the Swiss Press, Chairman of the Board Pietro Supino made it clear that Tamedia's focus is on print and online. The electronic media are therefore rather tolerated - as long as they do not incur major losses. If Tamedia is now considering a sale, this can only mean that there will be losses. At the presentation of the half-year figures for 2010, Martin Kall stated that the radio and TV activities were below expectations and would not contribute to earnings. And in the 2009 annual report, an operating result of -1.41 million Swiss francs was reported for the entire electronic media division (i.e. including the online business, which was presented as successful). It is obvious that the losses do not come from Radio 24, but from TeleZüri. And this despite the relatively great freedom that the station, which is no longer licensed, enjoys with regard to distribution and advertising.
Tele Züri - Europe's most successful local station
Andrea Haemmerli, Commercial Director of TeleZüri and Radio 24, does not comment on the sales rumors. But she points out that in 2010, Tele-Züri had the third-highest net reach in the greater Zurich area between 6 and 11 p.m., behind SF 1 and SF 2. In the first hour of broadcasting alone (6-7 p.m.), TeleZüri reached a good 100,000 viewers. That's about 48,000 fewer than SF 1, but still about 28,000 more than SF 2, which ranks third with 73,000 viewers. And the viewing time of 19 minutes per viewer is on a par with SF 1 in this hour.
Haemmerli adds to these figures that TeleZüri is also by far the most successful local station in a Europe-wide comparison - both in terms of viewer numbers and advertising revenue. However, the advertising revenue apparently only covers the costs in years without extraordinary investments. Such investments were made in 2010 by the Swiss Sports Television (SSF) project and in 2011 by new, but also cost-saving technology. Andrea Haemmerli is also very positive about the prospects for 2011, as the earnings situation will improve as a result of additional broadcasts (some outside prime time) and synergies with SSF. In the lucrative primetime, however, the hourly loop is a sticking point. On the one hand, the hourly repetition is the recipe for success in the audience market, but on the other hand it limits the possibilities in terms of advertising time sold. Since the station is very busy, additional revenue can really only be recouped through corresponding price increases. The open question is therefore whether a correspondingly higher price will find acceptance in the market.
A sale of the Zurich stations would be a problematic decision, and not just because of their success in the audience market. It would also immediately raise the question of what to do with Capital FM and Tele Bärn. The situation there is not much different than in Zurich. At least Tele Bärn can benefit from fee-splitting. In the advertising market, however, the Bernese station is heavily dependent on the locomotive TeleZüri. This is because national advertising practically only comes in via Tele Regio Combi (TRC). And here TeleZüri "supplies" almost 40 percent of the viewers. If a new owner were no longer to join the TRC, this would also be a heavy blow for Tele Bärn (and the other stations united in the TRC: Tele Basel, Tele M1, Tele 1 and Tele Ostschweiz), which the TRC could hardly survive.
Tamedia without TV/radio at all?
The bottom line, then, is that the sale of TeleZüri would at best shift the problem to Bern and raise the question of the future of Capital FM and Tele Bärn. Whereby a sale of the two studios fully integrated into the media house on Dammweg would probably be a rather difficult undertaking. However, Martin Kall, the strategic head of Tamedia, would probably want a fundamental decision for the group. And that could only mean: Tamedia would give up its TV and radio activities completely. This would also affect Edipresse's minority holdings in La Télé, the largest regional TV station in western Switzerland, and (indirectly) in the Geneva regional radio station Yes FM.
Should this scenario become fact, the future fate of TeleZüri in particular would be of great interest. For example, Blick am Abend asked the question "Will the SVP buy TeleZüri?" on February 10. That is hardly likely to be the case so directly. But a consortium of Weltwoche (with the right-wing polemic editor-in-chief Roger Köppel), Basler Zeitung (with the editor-in-chief and Blocher's self-appointed deputy Erwin Somm) and Schaffhauser Nachrichten, on whose website Tele Blocher is broadcast, would be conceivable. However, the financing would presumably run through financially strong sympathizers in the background along the lines of the Basler Zeitung. After such a takeover, TeleZüri would certainly become a Swiss-German station, in which the already much-cited "Gegen-Arena" could also have a home. Such a scenario cannot be ruled out. But it is unlikely to be successful. The time of the political media has already expired in the last century. And what the SVP strategists have not noticed: It's precisely the unspeakable "punch-up debates" that have caused the market share of the "Arena" to shrink continuously. What's more, in today's media market, political ambitions are the surest guarantee of failure. The best example of this is Ringier, which had enough bad experience with the politically motivated advice of an employee who has since moved to Berlin, especially in the 1990s.
What does Ringier do?
Ringier, however, could be a hot contender for the purchase of TeleZüri. Only the infrastructure would probably be taken over. Because the current concept does not fit in with Ringier's strategy (see Werbewoche No. 2/2011, page 23). However, Ringier could turn TeleZüri into Blick TV, which would broadcast soft news in the style of "Glanz & Gloria," but also sports news. After all, Swiss Sports Television (SSF) has already been produced by TeleZüri since August 2010. So there could certainly be further synergies. And if Ringier were to acquire broadcasting rights for soccer and/or ice hockey, it would also have a channel that could very quickly expand its presence in the cable networks to the whole of German-speaking Switzerland.
Such a scenario is interesting, but according to Head of Communications Edi Estermann, it is not an issue at Ringier. Perhaps Ringier's thoughts in this context are more in the direction of the successful 3plus station, which would be an excellent fit for Ringier in terms of content. However, owner Dominique Kaiser has always emphasized that his station is not for sale. Whether that will still be the case if the price is high enough remains an open question, of course.
Ueli Custer
This article is from the current Print edition of the advertising week.




