Mathis Lüdin, publisher of the Basellandschaftliche Zeitung (bz), explains the reasons behind the sale of his newspaper to AZ Medien. He also discusses the role the Basler Zeitung played in this decision. Werbewoche: Mr. Lüdin, in your press release, you describe the partnership with the MittellandZeitung, which began in September 2006, as a success. Based on what criteria? Mathis Lüdin: Our newspaper has gained immensely in terms of content through this partnership. We’re now playing in the big leagues. We have a national section that I could never have imagined achieving on my own. In return, we’ve been able to focus on the regional section—which has also benefited the newspaper. Quantitatively, we also offer a larger volume thanks to numerous special features—even if not all readers appreciate this. And we’re part of a group with extensive expertise in all areas.
WW: How did the bz fare in the classifieds sector? Lüdin: We were able to fully tap into the national classifieds market. As a result, we now also feature the full-page ads from Migros and other clients we didn’t have before. The MZ job market is also surprisingly large and, commercially speaking, far more interesting than the previous joint venture with the Basler Zeitung’s (BaZ) “Stellefant.” That said, I would still very much like to have the “Stellefant” ads because they are more closely tied to our region. But from a purely financial standpoint, the MZ job section is significantly better.
WW: Be honest: How did the volume of ads from the bz’s core market develop in 2007? Lüdin: There was definitely some cannibalization here. That’s because some advertisers from the national market—whom we previously had directly and at our own bz rates—now come to us only through the MZ and at completely different rates. Aldi, for example, opened a store in Lausen and ran a full-page ad twice a week in the bz—at full price. Since we switched to the MZ, they’ve been booking through the MZ—and the bz now only receives a share of about 10 percent. That’s the downside. Overall, we gained significantly more volume at a lower price. But at the end of the day, it more than pays off.
WW: Can you quantify this increase a bit? Lüdin: Compared to 2006, our net-net advertising revenue increased by about 25 to 30 percent.
WW: So far, the bz’s circulation and reach have remained stable. But this year, we added the Sunday edition and raised the subscription price by 10 percent. Will you lose subscribers? Lüdin: Yes, in the per-thousand range. We also receive new or trial subscription orders every day. Subscription cancellations are currently slightly outnumbering new subscriptions. But the final tally won’t be in until February, because in January, we expect some people whose BaZ subscriptions are expiring to switch to us. Interest—partly because of the Sunday edition—is very high. In addition, many people realize that while the bz, at 368 francs, is more expensive than the BaZ, which costs 347 francs, with the bz they also receive a Sunday edition that can certainly hold its own against the Sunday editions of Tamedia or the NZZ, as well as a TV guide.
WW: What impact did the BaZ's large print run (GA) have this year? Lüdin: That's hard to say. It certainly made the market more nervous.
WW: Did she cost the bz readers or advertisers? Lüdin: Not noticeably. She probably struck a few deals with advertisers and offered perks and free space. Overall, she took a very aggressive approach. But our regular advertisers didn’t seem too impressed by it. We only lost a few, though.
WW: Even though the BaZ-GA costs only half as much as the bz, with nearly the same circulation? Lüdin: That did make advertisers a bit suspicious at first. They figured that 90,000 copies of the GA are 90,000 copies of the GA—so why should they pay twice as much for the bz as they do for the BaZ? But we say: Our GA has 111,000 verified readers, while the BaZ-GA, as a newcomer, is likely to reach barely more than 0.6 readers per issue—that is, only about half the bz’s reach. In that respect, our higher price is entirely justified. Many customers have come to see that as well.
WW: Why did you sell the bz right now? Lüdin: The timing is more or less coincidental. But we realized that the market today is much tougher than we had imagined three years ago. I’ll just mention three key points that illustrate this: free newspapers, the “Sonntag” project, and the online sector. The chances of survival for a medium-sized regional newspaper have gotten even worse. That’s why we decided to sell the entire company—and thereby establish clear ownership structures.
WW: You could also look at it this way: The bz has reached a temporary peak. The growth rates in the advertising sector—thanks to the merger with the MZ—will certainly not be repeated in 2008, and the situation in the subscription sector is, at the very least, uncertain. So the real MZ adventure is only just beginning for the bz. You’ve therefore chosen the right moment to hand over primary responsibility. Lüdin: The pace over the last three years has been tremendous. Everything happened in rapid succession: first the merger with the MZ, then the Sunday edition, and now we’re looking for a response to the free newspaper News. All of that—and the associated risks—naturally accelerated the decision on our end. In that sense, I’d say: The timing—given the circumstances—is certainly not bad, and it forced AZ Medien to show its true colors. In any case, I’m convinced that if the bz belongs 100 percent to them, they’ll take better care of it than if we were still holding onto half of it. We’ve found, so to speak, an ideal combination: The ownership structure has been clarified, but the publisher, the team, and the printing—everything remains as it was. With one downside: The newspaper no longer belongs to us.
WW: What has the ownership structure of Basellandschaftliche Zeitung AG actually looked like up to now? Lüdin: The Lüdin family—consisting of my brother Alex, myself, and four other people—owns a good two-thirds of the shares.
WW: Did you sell exclusively for cash, or did you also receive shares in AZ Medien? Lüdin: No. It was a straight sale.
WW: Did the Basler Zeitung Medien’s behavior prompt your decision to finally sell to Peter Wanner? Lüdin: No. The BZM is reacting to us, not the other way around. But in reality, they aren’t reacting at all—they’re being controlled remotely from Zurich.
WW: The bz was founded 175 years ago as a Basel-Landschaft newspaper—amid the turmoil surrounding Basel’s separation. Today, however, the two Basel half-cantons are closer than ever, both politically and economically. Selling the bz to Basel would have symbolically underscored this—especially at Christmas. Don’t you think you missed a historic opportunity there? Lüdin: No. When two newspapers with overlapping geographic coverage collaborate, it sooner or later leads to a single newspaper. That’s the difference from the MZ model: there, we had no overlap. Take a look at the mastheads of the Berner Zeitung—they may still look a bit different, but essentially it’s the same paper throughout. In short: with the BaZ, we would have given up our own newspaper.
Markus Knöpfli