The Mittelland Zeitung is the hoped-for economic buffer for the AZ Media GroupBy Luca Aloisi In Aargau, the media world is still in order: because the AZ Media Group regularly prescribes itself purification cures, it is proving to be storm-tested in the economic downturn. With the cooperation in the Mittelland media region, it also created the third-largest Swiss newspaper just under a year ago. No loss of identity, but a gain for all four publishing houses - but above all for the Aargauer Zeitung and its group.
A cool, wet autumn storm is raging in the Säuliamt. The first stop on the AZ Media Group (AZMG) tour may be unusual, but it is no less attractive. While the church bell in Affoltern am Albis still waits a few minutes before it strikes seven o'clock, and at this hour you can only reach the answering machine at the head office in Baden, Ernst Oertle's wood-lined office is already a hive of activity.
Once a month, over coffee and croissants, the managing director of the Anzeiger from the Affoltern district reviews the business figures with Ueli Eckstein, deputy CEO of AZMG, and discusses the targets. "We're both early risers," says Oertle, apologizing for the early start. In addition to an early start, employer and professional background - both started their careers at Zürcher Oberländer - the two men also share a sense of business. And that has to be solid.
Eckstein's business credo - fortune favors the brave - is particularly relevant in the current crisis: "Cost savings were triggered at our company when others were only talking about them." The monthly meetings in the Zurich exclave of the Mittelland are short and productive. "A mainstay for territorial consolidation", is how Eckstein describes the twice-weekly newsletter printed in Aarau.
The Limmattaler Tagblatt defends AZMG's non-cantonal territories in the combat zone of the Tages-Anzeiger.
While the latter is feeling the effects of the commuter newspaper's triumphant advance, the two media foxes are predicting a positive development for the strongly anchored paper in the southern canton of Zurich thanks to future highway access to the Säuliamt.
No tactical preventive measures against Zurich publishers led AZMG into this niche. It was the widow of the former owner who gave the contract to the Wanner publishing dynasty from Baden. Oertle is certain that increased efficiency and - as with the other AZMG newspapers - proximity to the people guarantee success. After all, collective pages have also recently been produced for the Aargauer Zeitung in Affoltern a. A. "You need a feel for the local newspaper genre," says Eckstein, explaining AZMG's recipe for success, which also applies on a larger scale to the retort paper Mittelland Zeitung.
Back in his simple office with a view of the Baden city tower, the former centralist Eckstein readily admits that maintaining decentralized units at editorial and publishing level with a centralized superstructure is one of the most important success factors of the AZ Medien Group. "We believe in local spaces," he says, alluding to local editorial offices and sales, which are intended to ensure proximity to the reader and advertising market.
The positive response to the national bracket with a local section has not failed to materialize. However, the squaring of the circle means that the Mittelland Zeitung's jacket section, which covers national and international content, has a completely different character to the local sections. News about small animal breeding clubs and the new Spitex offices also make it into the columns.
The "local newspaper with national appeal" appears to be doing very well with this balancing act, which is common in the industry. At least this is documented by the high level of household coverage and the better consideration in the major media campaigns.
The publishers even seem to be coping quite well with the decline in mono editions - where commercial advertising is migrating away from the local splits. "The shifts are within a range that we expected," says Eckstein without gritting his teeth. When asked whether the thousand contact price (CPM) will now be adjusted downwards in the rate calculation for local splits, he says calmly: "In this market, the CPM is not the decisive factor, the absolute price is important here." All newspapers have been hit hard by the slump in regional markets. So they are all the happier that the move together under the Mittelland Zeitung umbrella came at the best possible moment. What's more, it has more than compensated for the slump in advertising.
Balance artist
in production and editing
Nevertheless, AZMG cannot avoid cost-cutting measures. On the contrary. "We are planning another round for the entire company; this is an ongoing process. We are not excluding the newspaper," says the second man behind publisher Peter Wanner. The aim is to save a total of five percent of costs. For example, 25 jobs were recently cut in the struggling customer printing division.
It is understandable that Eckstein prefers to focus on business areas in which paper and figures shine, on the AZMG magazines: with the exception of SportMagazin, which is on track with its business plan, all specialist magazines are clearly in the profit zone. Eckstein is most pleased about the lightning success of the latest new launch, Annemarie Wildeisen's Kochen. The electronic media, however, present a mixed picture: Despite record ratings, program and production streamlining, Tele M1 and Tele Tell are still posting losses.
And the "calculated loss of a marginal amount" at the azonline.ch Internet portal - which employs just four editors - is certainly acceptable. On the other hand, Radio Argovia is a very profitable branch, says Eckstein with satisfaction.
While Mittelland Zeitung's partner publishers had to make cutbacks in the editorial, printing and sales areas in order to optimize costs, advertising production was concentrated under the management of Michael Koller. His team on the first floor of the AZ high-rise building in Baden and in the neighboring central newspaper planning department produce 17 newspapers a day in addition to the advertisements.
In a makeshift room that also serves as a passageway - not exactly the ideal place for top-heavy production work - the three editors ensure the complex coordination of the pages with meticulous discipline and perfection. In return, they expect flexibility in dealing with the page quota from the pool of editors, who are spread across seven locations. Ruedi Mäder, business editor and member of the editorial board, has no trouble with the constant balancing. However, he too would have preferred to see one or two additional articles in the paper, but this was not possible for advertising placement reasons.
On the way to the editorial meeting at 11 a.m. on the 6th floor, he describes the change at AZ since the launch of MZ: "We want to sell our partner papers a strong jacket section so that they can concentrate on their local section." The departure from the Aargauer Optik was also accelerated by the thematic opening of the MZ. It has been recognized that the new cooperation pattern requires a completely different way of thinking about content from employees - but there are still problems with its implementation.
A wise decision to
Cooperation
At the Mantel meeting, scheduled an hour after the conference call for the cantonal section, the uncertainty about the rumored change of editor-in-chief is not noticeable among the department heads. The mood in the editorial office after the discussion with their boss Hans Fahrländer and CEO Peter Wanner is combative and determined, one hears between the lines. Not only the "information policy", but also the project to optimize capacity is weighing on the journalist team. "We're already running on empty," says media editor Kurt-Emil Merki, summing up the mood. Nevertheless, they are looking into whether further synergies could be exploited across all products without affecting the editorial autonomy of the individual media.
That may sound good, Merki says, but it would hardly be possible to put it into practice. He is one of the Zurich imports who joined AZ over a year ago and gave the former local paper an additional boost towards becoming a forum newspaper with national recognition. Merki is also aware that the local split is formally inferior to the first four frets, but it is precisely this different presentation that gives the liberal MZ its discreet charm. As a kind of compensation, the MZ is the only newspaper in Switzerland that produces a daily media page (see page 18).
Business editor Mäder does not hide the fact that the culture on the back page, sometimes additionally or exclusively on the second-last page of the first bundle, is relatively short and waits for the planned sixth bundle. "This is not a question of the economy, but of technical possibilities." Investments are already being made. So it's just a question of interpretation as to whether this refers to printing capacities or the culture department.
Newly appointed program director Ernst Meier has been investing more know-how and hope than cash in the local station Tele Tell since the beginning of November. Shortly before the interview, on his way to the meeting of the MZ management committee, he is still head of the AZ online portal. He launched the same portal two years ago with three other editors. Whether the fourth online position will be retained after his internal change is still open, he explains.
His wish list now includes more tangible key investments for the TV channel anyway. And it is still far from a safe haven, even though the head of e-media, Florenz Schaffner, has managed to stop the cash drain and improve ratings with three rounds of savings. A bus for live outside broadcasts is the most urgent investment for Tele Tell and Tele M1, says Schaffner with a view to the eagerly awaited fee splitting. Until fee money flows from Bern, the AZMG stations have to fight for audience success and reputation with a constantly tight budget. The signals that Tele M1 is receiving from the top management in Baden in its brittle industrial building in Aarau at least suggest that AZMG also wants to make its presence felt in the TV sector in the long term.
As clear as the management structure is at the local stations, it is more like a picture disturbance at the MZ construct. Arthur Tabeling, director and publisher of the Oltner Tagblatt, Bruno Imfeld, member of the management board of the Zofinger Tagblatt, as well as Urs Lüthi, publishing director of the Solothurner Zeitung, outdo each other with hymns of praise for the good relationship with Peter Wanner. Although AZ's partner papers work under a lease agreement with Publicitas, they have adapted to the mode of cooperation between AZ and the marketer. Of course, the joint strength is not played off against the "P". This can be seen from the fact that Roland Steffen, Director of Publicitas Aarau, also attends the meeting of the MZ management committee. "The decision in favour of MZ was a very wise one for the profitability of the products in the long term," emphasizes Tabeling. And Imfeld adds: "Even though we are now only producing the fifth edition, it is clear that we would be doing less well if we had continued with the old constellation (Neue Mittelland Zeitung)."
Media series 4th part
Following the publishing house reports from Tamedia (WW 32/02), Ringier (WW 35/02) and Edipresse (WW 37/02), we continue the series in this issue with a report on the mood at the AZ Media Group. This will be followed in loose succession by further inside views of more or less cyclical media companies until spring. The next visit will be to the Basler Mediengruppe on the Rhine (ww).