TV advertising In its battle against the M6 advertising window for French-speaking Switzerland, the SRG has rather poor cards. But Bakom is backing it up. 2007 got off to a bad start for SRG and especially for French-speaking Swiss television TSR. On January 4, the Fribourg cantonal court dismissed the lawsuit brought by SRG against the French TV station M6. And just one and a half months later, Naxoo, the operator of the Geneva cable network, announced that it expected to switch on M6's Swiss signal at the end of March (see page 1). What's more, TSR boss Gilles Marchand, who is also a member of Naxoo's Board of Directors by virtue of his office, will soon have to give up this post and lose his influence there (see box).The ruling in Fribourg and the changes at Naxoo weaken the positions of SRG and TSR in their long-standing battle against M6. However, it is not yet clear why the Fribourg court dismissed the SRG complaint. The reasons for the ruling are still pending. All is not lost for SRG: it has reserved the right to appeal the ruling to the Federal Supreme Court.
SRG wants to set an exampleBut with the Fribourg trial, SRG wanted and wants to set an example, which it has so far failed to do. Cablecom, the local cable network operator, was the first network provider to no longer broadcast the broadcaster's original program signal with French advertising blocks from 2001 onwards, but a second signal that was partly equipped with Swiss advertising. Because of this advertising window, however, SRG and TSR accused the French rival broadcaster of copyright infringement and unfair competition. M6 broadcasts films and series on its signal intended for French-speaking Switzerland for which TSR has acquired exclusivity.
Bernhard Cron, M6's lawyer, emphasizes that M6 broadcasts exactly the same programme via the two signals transmitted from France - and at the same time. Only the advertising blocks are different. M6 is therefore not infringing any copyrights or exclusive rights and is not engaging in unfair competition.
However, the fact that TSR and M6 buy some of the same broadcasting rights means that conflicts arise time and again. For example, last year during the Football World Cup (see box). Or last fall with the series "Prison Break", which was extremely well received by audiences in French-speaking Switzerland. TSR began broadcasting the series, with one episode per week. Shortly afterwards, M6 also launched the series, but with three episodes on the same evening, which forced TSR to follow suit with two episodes per broadcast evening to keep the young audience interested.
Similar situations arise time and again, and TSR is constantly being forced into the role of defender. However, TSR does not have its back to the wall; on the contrary, its two channels are very popular with the advertising industry. This certainly applies to prime time, when TSR's advertising blocks are often fully booked. Advertisers have therefore long been calling for a regional language alternative. The M6 channel would actually be predestined for this, but as long as its Swiss signal has large coverage gaps in Geneva and Lausanne, the station can hardly serve as an alternative platform.
Local TVs also benefitThis is precisely the situation that the private TVs in western Switzerland now want to exploit: Late, very late, they joined forces only two weeks ago to form the nationwide TeleRomandieCombi, chose the SRG subsidiary Publisuisse as their marketer and are now being offered to the advertising industry as a supplement (and not as an alternative) to TSR - according to the motto: "TSR for reach, TRC for depth." SRG is happy with this: it can at least pocket part of the TRC advertising revenue in the form of the commission. However, every spot that is placed on M6 is a complete loss for them.
But what is the Federal Office of Communications' position on the M6 advertising window? Back in 2001, when M6 was launched, OFCOM threatened to instruct the cable networks not to broadcast M6's Swiss signal. Since then, however, nothing more has been heard from Bakom. "Basically, we are still of the opinion that advertising windows - even in German-speaking Switzerland - are politically undesirable. The cable network operators are also aware of this. However, our legal means are limited," says Bakom media lawyer Alfons Birrer.
The reason for the rejection: it is not welcomed when a large broadcaster from abroad simply makes use of the "small, very sensitive and vulnerable Swiss markets" without investing. This is different for program windows: these provide an editorial service and require a Swiss license under current law. In contrast, pure advertising windows only require the express approval of their regulatory authority for cross-border distribution, says Birrer.
A turnaround - thanks to Cablecom When Cablecom increased its stake in Naxoo to 49 percent last September
This enabled the Geneva-based cable network company to make concessions to M6. Leaning on the Swiss industry leader, which has experience with advertising windows, provided security. SRG's defeat in Fribourg provided a further boost. In addition, the new ownership structure led to a reorganization at the level of the Naxoo Board of Directors, where
TSR boss Gilles Marchand is also one of 26 stakeholders on the board. This oddity is due to historical reasons.
However, the committee is now expected to be reduced to eleven members in the middle of the year - and Marchand, the tireless warner in front of the M6 advertising window, is one of those who will have to leave the field.
Nevertheless, his influence was felt in the latest negotiations between Naxoo and M6: Naxoo CEO Antoni Mayer secured himself with a contractual clause in the event that TSR was found to be right in the Federal Court. In this case, it is stipulated that M6, not Naxoo, would be liable for damages.
Legal wrangling over sports rights for the 2006 FIFA World Cup
SRG had signed an exclusive contract with the TV rights company Infront, owned by German former world-class footballer Günter Netzer, to broadcast the matches in Switzerland. However, Germany's RTL and France's M6 also broadcast the World Cup matches, including on their Swiss windows and with Swiss advertising. These advertising slots are said to have been fully booked at the time.
SRG therefore expects to lose millions in revenue. On October 20, it sued Infront at the cantonal court of Zug "for a price reduction and damages", as the deputy SRG spokesperson
Daniel Steiner on request
confirmed. The lawsuit is still pending.
Markus Knöpfli