In Germany, multi-week low-cost TV programs are the trendBy Markus Knöpfli Rüdiger Hahn has now been on the market for eight months with his four-week program guide TV 4 - and is already talking about success. Tele, TR 7 and TV täglich, on the other hand, don't (yet) think they are. However: In Germany, the trend in program guides is clearly going in the direction of cheap products lasting several weeks.
Since March, the publishing house Vierwaldstätter Verlag in Horw LU has been publishing its TV 4 every four weeks with a print run of 300,000 copies, and distributes 240,000 copies free of charge by promo mail. By his own account, sole owner Rüdiger Hahn has already spent a good one million Swiss francs on this - just for printing and mailing. But soon Hahn will be taking off his spending pants: From issue 1/2002, the TV-4 circulation will be "only" 8,000 copies. Of these, 35000 copies will be delivered to newsstands, 20000 will be distributed free of charge and another 20000 to 25000 will be sent to subscribers.
At present, TV 4 has only 14,000 subscriptions, but according to Hahn, 19,000 copies are sold at newsstands per issue. He is therefore convinced that TV 4 will "easily" gain another 6000 subscribers by the end of February. By the end of his third business year (February 2004), he even expects at least 40,000 subscriptions. But even before that, at the end of next year, Hahn believes he will break even.
But the four-week concept also has its limits: Because of the many program changes, Hahn has recently had to provide his readers with updates via teletext. Hahn has also been limited elsewhere: TV täglich, the free magazine from Ringier and Tamedia, was unable to outdo him as a supplement to six newspapers and magazines each. Some of the titles associated with TVtäglich discussed a switch to a kind of slimmed-down TV4. But Hahn's offer was rebuffed. The price was not attractive, says Roland Wahrenberger, head of publishing at TVtäglich. The titles were contractually tied to TV täglich for too long, Hahn contradicts him.
Nevertheless, Hahn sums up his first eight months as a "success. However, it is difficult to believe this. After all, how does he expect to recoup his expenses when he describes three full-page advertisements per future issue as "completely sufficient"? Because of the reduced circulation from 1/2002, he is also cutting rates by around half.
Hahn also leaves open where he got the money for the multi-million investments. In any case, it cannot have come from his company, which was only founded in September with a share capital of 40,000 francs. And Hahn rejects the assumption that the Vierwaldstätter Verlag is a subsidiary of his brother in Germany, who publishes the magazine Nur TV with the same concept.
Both Wahrenberger and his colleagues at Tele and TR 7 claim that TV 4 has not affected their magazines so far, neither in the advertising market, nor in retail sales, nor in subscriptions. It is true that retail sales are declining, but this is generally the case and not just since TV 4 has been on the market, says TR 7 publishing director Sandro Rüegger. And Duke Seidmann, Head of Magazine Advertising Market at Ringier, adds that Tele is more likely to feel the impact of competitors at the newsstand, such as the German magazines TV Spielfilm or TV today.
This addresses what is definitely a problem for the Swiss titles: the dozen or so German TV program guides that are pushing onto the Swiss market. While the weekly titles are likely to sell a total of just around 10,000 copies, WerbeWoche estimates the paid circulation of the fortnightly titles at 60,000 copies.
According to Mach Basic 01, the three established Swiss titles also lost readers. The loss remained within the confidence range for TR 7 and Tele, but at the time of the K1 value, the two titles had still gained. And the extent to which German titles could pose a threat to Swiss magazines is shown by the example of TV Spielfilm, which is shown for the first time in Mach Basic 01: It is as strong as the pure subscription magazines Radiomagazin and Teleclub together and already comes very close to the value of TR 7.
Program sheets in Germany lost readers
But at TR 7, Sandro Rüegger has completely different concerns.
He suspects that a trend that can be observed in the German TV guide market could also gain a foothold in Switzerland: Weekly titles there are losing massively in circulation, while multi-week low-cost products have been gaining, in some cases strongly, since their appearance in 1997. Specifically, of ten program guides that were still selling over a million copies (in some cases as many as 2.7 million) at the beginning of 1998, all have lost at least 300,000 copies. TV klar, TV neu, TV Spielfilm and TV Movie recorded particularly high losses. In contrast, TV 14 increased by 1.2 million to 2.01 million copies (plus 67.5 percent) since mid-1999 alone. Rüegger's concern is confirmed by André Kolb.
At Gong Verlag in Nuremberg, he is responsible for four program guides, both high-priced weekly titles such as (Bild+Funk, Gong) and lower-priced products (TV direkt, Die Zwei). Kolb also sees the trend in the German market confirmed in his own publishing house. Not only that: "The trend is similar in the German-speaking foreign territories," knows Kolb, who is also present in Switzerland with the Gong products.
So could Rüdiger Hahn's calculation somehow work out after all? It's quite possible, perhaps even in two respects: First, his TV 4 will probably make life difficult for its German counterparts in Switzerland. In contrast to the German counterparts, Rüdiger Hahn's TV 4 will carry all the regional German-language TV programs in Switzerland. It remains to be seen whether Tele and TR 7 will then also go to the cleaners in a second phase. "We're keeping a close eye on TV 4," says Duke Seidmann.
Relaunch at TV täglich and TR 7
TV täglich has been refreshed for just under a month (WW 35/01). The relaunch had nothing to do with TV 4; it had been planned for some time, assures publishing director Wahrenberger. TR 7, on the other hand, has yet to relaunch. The magazine is to be "more modern" from spring 2002, but this is also not a reaction to TV 4, says publishing director Rüegger.
A good dozen program guides on Swiss newsstands
Magazines Publisher Interval Price Readers sold
Single edition CH
sale CH
Bild + Funk Gong Verlag, Nuremberg 7 days Fr. 2.60 1100*
Die Zwei Gong Verlag, Nuremberg 7 days Fr. 1.80 11 000*
Gong Gong Verlag, Nuremberg 7 days Fr. 2.60 1000*
Hören u. Sehen Bauer Group, Hamburg 7 days Fr. 2.80 k. A.
Listen to Axel Springer Verlag, Hamburg 7 days Fr. 2.70 k. A.
Tele Ringier, Zurich 7 days Fr. 3.60 227 539 712 000
TR 7 Basler Mediengruppe 7 days Fr. 3.-- 173 038 407 000
TV daily Tamedia/Ringier 7 days free supplement 1 360 000* 939 000
TV 14 Bauer Group, Hamburg 14 days Fr. 2.-- k. A.
TV direkt Gong Verlag, Nuremberg 14 days Fr. 1.80 4000*
TV Movie Bauer Group, Hamburg 14 days Fr. 3.-- k. A.
TV Spielfilm TV Spielfilm Verlag, Hamburg 14 days Fr. 3.-- 28 863* 326 000
TV today Verlagsgruppe Fleet, Hamburg 14 days Fr. 2.60 k. A.
TVpur Bauer Group, Hamburg 4 weeks Fr. 2.40 k. A.
TV 4 Vierwaldstätter Verlag, Horw 4 weeks Fr. 4.-- previously
300 000*
from 1/2002
approx. 80 000*
Radiomagazin AG for radio publications weekly subscriptions only 31 272 109 000Teleclub Teleclub AG monthly club-only 89 770 226 000
Magazine
largely distributed free of charge
* Publisher's statement, not certified
k. A. No data Survey WerbeWoche