False alarm
Op-Ed: The public hysteria surrounding Springer’s takeover of ProSiebenSat1 lacks any rational basis, says Heribert Seifert.
Guest commentary The public hysteria surrounding Springer's takeover of ProSiebenSat1 lacks any rational basis, writes Heribert Seifert.Since it became known that Axel Springer Verlag wants to buy the ProSieben-Sat1 Group, pluralism and freedom of opinion are once again in danger. It is not only the buyer's competitors who are publicly terrified of a media network in which the Bild newspaper advertises the TV programs of the affiliated channels. Springer's conservative stance is also seen as a risk, as there is a fear of even more massive campaign journalism in the future, which would completely manipulate the audience.Such alarmism is silly because it takes into account neither the current constitution of Springer Verlag nor the objectives of modern media companies. For one thing, the economization of journalism has had a de-ideologizing effect: What counts is the ability of individual media outlets to make money, not their function as carriers of political messages. When tabloids from Springer regularly stage political campaigns, it is simply part of the business. As we saw in the last Bundestag election campaign, the effect of journalistic campaigning is also limited: Bild-Zeitung's preferred candidate failed at the time.
It is also important not to lose sight of the scale: Springer and ProSiebenSat1 together generated 4.24 billion euros in 2004 and made a profit of 600 million. Bertelsmann - which publishes not only harmless publications such as Schöner Wohnen, but also Stern - achieved sales of 17 billion and a profit of 1.4 billion. There is therefore sufficient balance in both the print sector and in television (with the Bertelsmann-controlled RTL Group).
From an economic point of view, it is reasonable to assume that Springer's leap is more the result of necessity than an expression of a desire for dominance. After all, the group needs a second mainstay: the circulation of the Bild newspaper is inexorably plummeting. If free newspapers are soon introduced across the board in Germany, this will further undermine the paper's reach and advertising sales. Against this background, Springer's goal of expanding TV into a second source of revenue seems legitimate and sensible.
However, this strategy has its price: at more than 4 billion euros, Springer has to pay several times more than what would have been necessary in 2003 after the Kirch bankruptcy. The debt burden that the Group has tied itself to is likely to amount to 3.6 billion. Some people at Ringier will be relieved that the once considered merger with the Berliners did not come to fruition. Well, there's not much to lose if you don't dare. But there's not much to gain either.
> Heribert Seifert is the NZZ's media correspondent in Germany.
It is also important not to lose sight of the scale: Springer and ProSiebenSat1 together generated 4.24 billion euros in 2004 and made a profit of 600 million. Bertelsmann - which publishes not only harmless publications such as Schöner Wohnen, but also Stern - achieved sales of 17 billion and a profit of 1.4 billion. There is therefore sufficient balance in both the print sector and in television (with the Bertelsmann-controlled RTL Group).
From an economic point of view, it is reasonable to assume that Springer's leap is more the result of necessity than an expression of a desire for dominance. After all, the group needs a second mainstay: the circulation of the Bild newspaper is inexorably plummeting. If free newspapers are soon introduced across the board in Germany, this will further undermine the paper's reach and advertising sales. Against this background, Springer's goal of expanding TV into a second source of revenue seems legitimate and sensible.
However, this strategy has its price: at more than 4 billion euros, Springer has to pay several times more than what would have been necessary in 2003 after the Kirch bankruptcy. The debt burden that the Group has tied itself to is likely to amount to 3.6 billion. Some people at Ringier will be relieved that the once considered merger with the Berliners did not come to fruition. Well, there's not much to lose if you don't dare. But there's not much to gain either.
> Heribert Seifert is the NZZ's media correspondent in Germany.
