"We just want to run an advertising window and not a program window".
Michel Rey, CEO of M6, on his TV network and its French-speaking advertising block
Michel Rey: I was a bit surprised by the vehemence of this resistance. But when the economic situation changes, it's just the case that the companies involved first have to get to know each other better. We are the first foreign broadcaster to want to launch an advertising window in the French-speaking part of Switzerland. So this new situation must first be analyzed. The media policy conditions and possibilities must be clarified legally, both for Télévision Suisse Romande (TSR) and M6, and simultaneously with the competent authority CSA in France and Bakom in Switzerland. This requires an agreement with the various cable network operators. All this takes time, and that's why I think the delay in a project of this magnitude is actually quite normal.
Is Switzerland really that important for M6?
Rey: If you take a closer look at our station, you can see that we produce a very elaborate and varied program. So it seems legitimate to me that in all the places where M6's broadcasts can be seen, we also get something for financing these services. So why not in Switzerland as well? Here, too, we've had our program on the cable networks for ten years.
Are you satisfied with the development of viewer numbers in Switzerland?
Rey: Today, we have 40 percent of tuned devices out of a possible 77 percent in the cable network in French-speaking Switzerland. So if Geneva and Lausanne were added, the percentage achieved so far would increase by more than 20 percent, which is a good figure. We will increase continuously. This has already aroused great interest among many advertising customers. I'm told that TSR's prime-time advertising is usually fully booked. I'm therefore convinced that customers want a new field in which they can place their advertising.
Do you also plan to have your own program window in the future?
Rey: No, we only want to run an advertising window and not a program window. As I said, I think it's legitimate for us to make money in the French-speaking part of Switzerland, because our programming is very popular here. We rank third behind TSR and TF 1, with primetime market shares averaging 13 percent, and last May even 20 percent among 15- to 49-year-olds.
Which audience do you want to address?
Rey: We've been on the air since 1987 and today we have a 14 percent market share in France. We were only able to achieve that thanks to a clearly defined target audience. So right from the start, we positioned ourselves with an audience under 25. We are the clear leader in this segment, strikingly more so with young women than with young men. But we are generalists when it comes to programming, albeit with a lot of courage to try something new. We produce a contrasting program against the market trend. In France, we are the station with the most reports and magazines, such as the knowledge magazine "e=m6," which reaches 4 million viewers on Tuesdays. "Culture Pub" is a magazine about advertising, "Capital" brings business information. In addition, there are many entertainment formats, children's and youth programs, and of course the best international series.
Won't that cause problems with the rights for Switzerland if you now run advertising around these series?
Rey: No, we have regulated these rights internationally. But there are other restrictions. Under French law, we are not allowed to advertise films, books, and - which is perhaps our biggest disadvantage in Switzerland - retail advertising. In this way, France wants to protect the print media from television. Nevertheless, our profile as the youngest broadcaster in French-speaking Switzerland means we can offer a new opportunity for media planning that wants to cater to a precise target group. We have the youngest viewers. 9.5 percent are 15 to 24 years old. 23.5 percent in the 25- to 34-year-old group - and in April, our second season of "Loft Story," the French equivalent of "Big Brother," will start. That means we can even overtake TF 1 in terms of market shares.
Which owners are actually behind M6?
Rey: Channel M6 is controlled by RTL Group with 45.2 percent and Suez Group with a 37.3 percent share. The remainder of
17.5 percent is placed in public hands or with institutional investors. Our sales currently amount to 734 million euros, and we are generating double-digit growth figures. Advertising revenues account for 72 percent of our total consolidated revenues. M6 is divided into four subsegments: free TV in conjunction with the film business. Then our brand business with the M6 boutiques, which offer videos as well as a weekly DVD from our M6 Collection. Our brand business also includes our own soccer club. The third area is pay TV with the Fun TV and Music TV channels. The fourth area is the Internet. In this medium, we offer various activities related to "Loft Story" as well as a ticket service. All four areas generate very large synergies.
What will happen now in the French-speaking part of Switzerland?
Rey: Two appeals are currently pending, one in France and one in Switzerland. The next hearing will take place in Freiburg in April. Thanks to a legal study that we commissioned, I am optimistic that we are sufficiently protected legally with our advertising window. To this end, IP Multimedia is still seeking talks with the cable network operators in Lausanne and Geneva. Interview: Andreas Panzeri
