Media policy FAQ

Is media policy even important for media professionals?
Yes and no: No, because the topic is complex and definitely likely to spoil your summer mood. Yes, because it will have a significant impact on the future of the media industry and therefore on whether you will still have a media job after the summer vacation (figuratively speaking, of course).

What happens if I ignore media policy?
Then others will presumably do the same and suddenly there will only be a "Tagesschau" split edition for Switzerland from Berlin (other, worse or less bad scenarios are just as conceivable).

Why is media policy an important topic right now?
Important decisions are pending. Firstly, there is the draft for a new Radio and Television Act and secondly, the National Council and Council of States (against the will of the Federal Council) have approved the motion "Safeguarding the state and democratic functions of the media", which calls for "an overall view of the Swiss media landscape from a regional media policy and overall media policy perspective" and "funding concepts".

What is the difference between the RTVA revision and the parliamentary motion?
The revision of the RTVA stands for a pragmatic policy that responds pragmatically to an acute need for action, but is often already outdated by the time it comes into force. Parliament's motion takes a more comprehensive approach. This offers the opportunity for coordinated, holistic, forward-looking solutions, but can also lead to a lack of concrete results.

Why is a revision of the RTVA necessary?
There are more and more devices (PCs, notebooks, smartphones, tablets) with which radio and television can be consumed. This means that the current system, which is based on the ownership of conventional receivers for the collection of radio and television fees, is becoming increasingly outdated.

What solution for reception fees will the new RTVA bring?
All households and many businesses will be obliged to pay a levy for radio and television.

What is the advantage of this levy?
The criteria for the obligation to pay are simpler, as it is no longer necessary to check whether or not reception devices are in use in a household.

Is such a separate levy necessary or can radio and television not be financed by taxes?
Financing via taxes is certainly possible, especially as this is the case in a number of countries (Spain and, since 2000, the Netherlands).

Can radio and television not simply be financed via the federal tax?
The idea of financing radio and television via direct federal tax seems obvious, but it has serious flaws: because they have a low income, almost 30 percent of assessed natural persons do not pay direct federal tax. And the vast majority of legal entities have already reached the maximum tax rate, which cannot be increased without a constitutional amendment. In addition, the tax administrations in the 26 cantons would have to set up additional new processes, for example to be able to continue to handle the exemptions provided for.

Why does the revision of the RTVA not provide for an increase in VAT for radio and television?
Even in the preparatory reports, this was briefly and succinctly dismissed, mainly with the argument that a referendum would be necessary, which would take too long.

What are the arguments in favor of financing radio and television via a VAT increase?
This means that there is no need for a costly collection agency (today: Billag), as still envisaged by the RTVA revision. With the necessary referendum, a new procedure can be anchored with the electorate. The necessary preparations (in line with the motion of the Federal Assembly) offer the opportunity for a broad debate on the future shape of media policy, whereby old habits can be cut away and new, contemporary concepts can be developed. In order to finance the current fee income via VAT, this would have to be increased by 0.5% according to information from OFCOM.

What are the disadvantages of the proposed revision of the RTVG?
Its full implementation will not be possible before 2017, as the collection agency will have to be re-tendered and awarded once the law comes into force. By then, clearly recognizable trends such as catch-up TV, smart TV and second screen (Werbewoche has reported on these in recent issues) will have significantly changed the media consumption behaviour of the general public, meaning that a further adjustment will be necessary. The extension of the levy obligation to businesses is also controversial. In addition, the law only focuses on radio and television and leaves other types of media untouched.

What are the most important questions when it comes to a new media policy?
There are several elephants in the room: Will SRG still be needed at all in the future, and if so, in what form? Will publishers, which are increasingly turning into trading houses and event organizers, still be able to play their role in shaping public opinion? What obligations does the state have, not only to guarantee the communication infrastructure, but also to promote content (on a subsidiary basis)?

How can the tasks of today's SRG be performed in the future?
What the market is obviously capable of achieving no longer needs to be financed by public funds: TV series that are exclusively financed by advertising in the USA can also be broadcast here in the same way. And commercial foreign film productions and sports broadcasts no longer have to be purchased with public service fees if there is no clear link to Switzerland. Performance contracts are put out to tender for remaining content that is in the interests of the country.

How can performance contracts work in the media sector?
Requirements are described for various subject areas (current news, consumer or political magazine, discussion panels). Financing modalities (advertising time shares, sponsoring, etc.) are regulated together with the tender. Whoever submits the best offer is awarded the (temporary) contract, together with secure funding and a fixed broadcasting slot.

What are the advantages of performance contracts?
The media industry in Switzerland is being revitalized by allowing private media companies to challenge the existing SRG editorial teams. At the same time, the quality stipulated by the performance mandates is maintained. In addition, performance mandates can be awarded not only for radio and television, but also for other types of media where a market failure is identified. This creates an effective instrument for strengthening and promoting private media companies while maintaining minimum requirements.

Aren't performance mandates inevitably associated with a new media bureaucracy?
This can be kept lean if the public is involved via modern interactive communication channels, namely in quality assurance. In this way, abstract and expensive studies can be avoided. Christoph J. Walther

Six theses on media policy

As summer reading, Werbewoche outlines the main features of a possible future media policy, which are concentrated here in six theses. And after the summer vacations, we want to know how they are received by exponents of the media and, above all, the advertising industry. Please send your reactions to: www.WEmad.org/umfrage

1. what the market is obviously capable of achieving no longer needs to be financed with public funds.

2. if private companies are unable to produce content that is in the interest of the country, the federal government may support their production in whole or in part, regardless of the media genre, for which performance contracts are tendered and awarded.

3. a new media policy should be financed via the federal budget. If necessary, the value-added tax can be increased for this purpose.

4 The current draft for a new RTVA is not compatible with a future-oriented media policy and must therefore be rejected.

5 Instead of a patches policy, there needs to be a comprehensive debate for a new media policy with a referendum on a new media article.

6 It is in the vital interest of the media industry to promote and actively shape a new media policy.