Marc Görtz, 43, managing director of Ringier-TV since 2005 and, as of July 1, a member of Ringier’s executive board responsible for electronic media, discusses TV digitization and the prospects that producers see in the new media.
WW: Digitalization has—a bit faster than expected—also reached traditional media, and thus television. Is the industry well prepared for this? Marc Görtz: It will still take a while before these technological possibilities reach the masses. This also applies to digitalization in television, although progress here is being made in giant strides. The digital services offered by Cablecom and Bluewin-TV are used by around 200,000 households in Switzerland—not even 10 percent of the market. But here we’re talking about signal distribution. The content is essentially the same as before. Interactivity, as is widely practiced in England, is very limited. However, broadcasters—in Switzerland, of course, primarily the SF channels with their fantastic capabilities—are increasingly making the leap to digital media and making their content available online.
Digital technology, after all, offers possibilities that aren’t feasible with analog technology. For example, splitting the screen to display different content. The key question is: what does the viewer want? Picture-in-picture is fun, but I usually watch a channel in full-screen mode, not on two screens—I may have two eyes, but they usually look in one direction. When it comes to interactivity, I have my doubts as to whether viewers even want to engage in a dialogue with the broadcasters. The spectacular failure of Betty TV is probably an indication that there’s still a long way to go before people actually want to engage interactively. We’ve been watching TV for many years. It’s a linear medium with one-way communication. Nobody wants to do anything more active than channel-surfing.
Given the shift to digital, what is currently the biggest challenge facing television? At the moment, it’s less about technological developments and more about how to get viewers to tune in to your programming. After all, digitization has brought about unprecedented fragmentation and a previously unseen variety of channels. I have Bluewin TV at home, but I rarely find myself watching China’s CCTV or Russia’s Channel 1. I stick to my habits and the “beacons” because I know what to expect from them. Channels have become brands. Establishing themselves as brands is the major challenge facing broadcasters. But what’s causing the biggest headache for ad-supported channels is the way TV is increasingly being consumed. As for me, I practically never watch TV linearly according to a schedule anymore. I schedule the shows I want to watch online and then watch them whenever I have the time and feel like it. Of course, this is where two worlds collide. Naturally, I fast-forward through commercials whenever possible. I don’t want to have a say in the programming or help shape it, but I do want to be able to decide for myself when I watch it.
Where are the young people? They practically don’t watch TV the way we used to anymore. Reaching them is the big challenge today. That’s why broadcasters are massively expanding their online offerings and trying to establish their brand across all kinds of digital media. I doubt that will work with traditional content.
Well, all broadcasters are going online these days—it’s the order of the day. Those who hold attractive online rights and have strong news expertise have the advantage. However, it’s a fallacy to believe that the traditional TV model works the same way online or on mobile as it does over cable. In the transitional phase we’re currently in, it’s okay to bring old content formats to new media. DVB-H, for example—mobile TV, which is set to launch next year—has a very bright future. But not with the content it’s initially intended to deliver to customers—namely, a few free-to-air TV channels. Long-term success will come from «made-for-mobile» content—that is, content produced specifically for this medium. This content has yet to be developed and embraced by the audience. That will take time. But it will happen. The driving force behind moving images online wasn’t the content offered by TV stations, but rather user-generated content, such as what we find on YouTube, My Video, or Clipfish.
Digitalization is thus blurring the lines between individual media and their channels, while at the same time fragmenting the audience. Is this an advantage or a disadvantage? From a producer’s perspective, it’s a great starting point. TV stations are run by gatekeepers who rely heavily on gut instinct to decide what their audience gets to watch during those scarce broadcast slots. Naturally, this rarely appeals to the masses. Digitization opens doors. Anyone can launch a niche channel or start broadcasting on the internet. That’s true diversity—with huge risks of failure, but also great opportunities.
As a producer, you simply turn to other media because you don’t have your own. That’s not a cop-out—it’s an expansion. Our Webcenter, which was just founded, produces video content exclusively for websites such as Cash.ch, Schweizerillustrierte.ch, and Blick.ch with a team of ten VJs. For Blick, we created «Blickpunkt,» the first web magazine on a news site. Its success has been overwhelming and clearly demonstrates the opportunities this opens up for producers.
Will traditional television disappear? No, if we're talking about a ten-year timeframe. But the fact is: The medium is steadily losing viewers, especially younger ones, who are increasingly turning to other ways to consume video content.
Does that mean television in the traditional sense will also lose its significance as a mass medium that shapes identity—if you think, for example, of the «Tagesschau»? It wasn’t that long ago that the «Tagesschau» regularly drew a million viewers. Today, we’re a long way from that. This has nothing to do with quality, but rather with the fact that the medium is crumbling. When you also consider that the average age of the SF flagship program’s audience is just under 60, it becomes clear that identity formation—at least among young people—does not take place through the «Tagesschau.» They have their own sources today—20 Minuten, Google, and Yahoo—where they go to get their news. And they won’t be returning to the old media. My generation grew up with the «Tagesschau»—there were hardly any alternatives. But today, I no longer have to wait until 7:30 p.m. to get my news fix.
What changes can we expect in television in the near future? We have relatively high failure rates—not just in Switzerland; the situation isn’t much different in Germany. The challenge is to find new formats that can also be used on other platforms—ones that resonate with the younger target audience without alienating older viewers—a difficult balancing act. But it’s also about content convergence. Content must be adapted to today’s needs and formatted appropriately for the medium. I’ve been working in the TV industry for about 14 years now. Especially in the free-to-air TV sector, it’s never been as difficult as it is now to produce content that people actually want to watch. Major events, U.S. series, and movies are still performing really well right now. Original productions are having a very hard time. We need to reach those who have turned away from TV through other channels with content tailored to the medium. Above all, this is also a huge opportunity for content producers.
Advertising is a key driver for the growth of web TV, mobile, and so on. How do you see the future in this area? Internet advertising is too cheap. That will change as the medium matures—no question about it. The advertising industry and content providers are in the early stages of what will be a long learning process. Good content brings reach. And reach brings advertising revenue. More than in any other medium, the principle of trial and error applies to new media. Switzerland is slow to adapt; even by an optimistic estimate, the online share of the advertising pie this year is just 2%, while in neighboring France it’s already over 10%. New media will also explode here, and there is no question that this will lead to major shifts toward digital channels.
Interview: René Worni