Miraculous multiplication of money
Regional TV The new TV distribution areas of Basel and Berne are benefiting disproportionately. Although stations can be operated there to cover costs.
Regional TV The new TV distribution areas of Basel and Berne are benefiting disproportionately. Although stations can be operated there to cover costs.
This can be seen when comparing the future fee shares for 13 regional TVs with the reported finances of the current broadcasters. This summer, the Federal Office of Communications (OFCOM) put 13 regional TV licenses out to tender, some with completely new broadcasting areas - including the corresponding performance mandates and future fee shares. Interested parties have until December 5 to apply. The licenses will be awarded by DETEC from spring 2008. Those who receive a TV license will not only receive a share of the fee pot, but also privileged access to the local cable networks (must-carrier rule) and, where these are lacking, to DVB-T frequencies for terrestrial broadcasting. Previously, this was different: small broadcasters, often in peripheral areas, received a share of the fee. And there was no obligation for cable network operators to switch on the channels.
The situation looks comparatively comfortable for the 13 future licensees, as they have a total of CHF 31.4 million at their disposal - around five times more than in 2006, when CHF 6.5 million was paid out to 17 local TV stations. However, most of these fee recipients have no chance in the future distribution of funds unless they join forces with others and jointly fulfill the performance mandate defined for the broadcasting area. This is likely to be the case in Vaud, where several small broadcasters want to join forces under the leadership of Edipresse to form Vaud TV.
It is obvious that, despite more money, there are not happy faces everywhere. At this point, however, we do not want to ask about the degree of (dis)satisfaction, but rather examine what the large regional broadcasters and the previously fee-supported television providers have already been able to attract from their regions into the medium of regional and local television. The basis for this information is, on the one hand, the fee money awarded by OFCOM for 2005 (a total of CHF 6.2 million) and, in parallel, the published 2005 annual accounts of the various broadcasters (the 2006 annual accounts are not yet available).
Geneva profiteersInteresting fact: Based on the new distribution areas, only the Basel region has so far had to manage without any fee splitting at all. In all other areas, there were already fee recipients. This also applies to Geneva: although Canal 29 came away empty-handed in 2005, the broadcaster received small amounts in 2004 and 2006 (CHF 331 and 5738 respectively). Measured against this, the Geneva region benefits the most from the new fee distribution: It now receives 324 times more fee money than before. The Vaud-Fribourg region, where five broadcasters previously received almost CHF 1.6 million, fared the worst. This means that the share of fees there will now only double.
But beware, such comparisons are only permissible if the new performance mandates are included. This is shown by the example of Schaffhausen: At first glance, it appears as if the new Zurich-North-Eastern Switzerland region receives seven times more money than was previously distributed for Schaffhausen TV. But this is not the case. This is because Bakom now stipulates two transmission windows there - one for Schaffhausen and one for Thurgau. As a result, the amount for Schaffhausen is only tripled, while the Thurgau regional TV audience will be able to enjoy fee-financed private TV broadcasts for the first time ever. Incidentally, the new regions of Valais and Biel (edition: bilingual), Waadt-Freiburg (window for Freiburg) and Südostschweiz (window for Glarus) also have similar performance mandates.
Tele Ostschweiz highly loss-makingThe fact that the Zurich-North-Eastern Switzerland region has been the most profitable for the medium of private TV is no surprise - but the extent is. The three stations domiciled in this area generated a total turnover of just under CHF 18 million in 2005. Even if one deducts the deficits of Tele Top and Schaffhausen TV and, in the case of the latter, the share of fees included in the turnover, this still leaves CHF 16.7 million, which was largely generated from advertising revenue, spot productions, publicity reports and sponsorship. The Eastern Switzerland region, on the other hand, raises question marks. Although the region does not appear to be very productive for private TV, there are still three, and with Tele Top even four, providers operating there. And all of them are in the red. But it is above all the bill from Tele Ostschweiz that gives pause for thought: The broadcaster spends twice as much as it earns.
What is also striking is that the future fee share of over CHF 2.2 million each for the Basel and Bern regions is comparatively generous. This is because there is a broadcaster in both regions that is in the black even without fee splitting. In addition, the future licensee does not have to fulfil any special performance mandates there. So why so much extra money? In any case, quality improvements hardly justify this level of support. The generosity should therefore probably be seen more as a signal that the federal government would actually like to see a competing broadcaster in these regions. Especially as it can be assumed that Tele Bärn and Tele Basel, like Tele Züri, would - and could - continue to broadcast even without a license, fee money and the must-carry rule.
Markus Knöpfli
Calculation of the new fee sharesFakom calculated the individual fee shares as follows: A basic amount covers production costs that are largely independent of the region and covers specific services such as program windows.
The second part of the fee share takes into account the special features of the respective coverage area and is calculated on the basis of location-specific factors such as population figures, data on the economic structure and the competitive situation. These factors reflect the economic conditions for the operation of a TV station in the coverage area. For the medium TV, OFCOM weights the basic amount and the economic factors in a ratio of 60:40.
The fixed fee amounts are intended to give future broadcasters a certain amount of leeway for development, but are basically fixed for the next five years. In the end, a fee share of 50 percent and, in exceptional cases, 70 percent per broadcaster is permitted. (mk)
