Controlled removal instead of dismantling
The wave of layoffs sweeping through American and European online newsrooms is bypassing Switzerland
The wave of redundancies in American and European online editorial offices is bypassing SwitzerlandBy Clemens Hörler Waves of redundancies are rolling over many American and European online editorial offices. In contrast, there is no panic in Switzerland: most online editorial teams have been built up so carefully and are still so small that almost nothing could be cut. One of the few exceptions: Swisscontent.
NBCi, a joint venture between NBC and CNET, recently announced that it would be laying off over 100 employees. Time Warner and Murdoch's News Corp. are also cutting back heavily in their online editorial departments. The online company of the New York Times wants to give a sixth of its employees the pink slip in order to reach the profit zone more quickly. Some newly founded Internet content providers have disappeared from the scene completely. The first redundancies have also been reported in Germany.
Is there any reason to fear something similar in Switzerland? Hardly, because there are practically no companies in this country that have invested heavily in setting up online editorial teams. And so, in their future Internet adventures, local media companies can once again benefit from the experience of the much more mature and risk-averse American market.
The old Swiss (un-)
Virtue: Don't rush things
Peter Wyss, Head of New Media at Bund Verlag: "The problem with pioneers is that they very often create redundancy and unnecessary services that then have to be removed again. Of course, we can learn from these experiences." Martin Diem, Managing Director of Bern Online AG, the Internet subsidiary of BTM AG, also believes that the Swiss caution may have paid off: "It is conceivable that it is now paying off that nothing was rushed in Switzerland."
Even in the age of new economy hysteria, those who behave so cautiously can hardly spell back. This is why practically all media companies are continuing to focus on the controlled expansion of their online editorial teams.
The largest online editorial team still has few customers
Swisscontent Corp., which is backed by Beat Curti Medien Holding AG and Medien Z Holding AG, is a high-flyer, at least in terms of personnel, and virtually unique in the Swiss Internet landscape. Founded just one year ago, the company now employs over 100 people, 80 of whom are journalists. However, the only major customer for content to date is Swiss Post with its Yellowworld portal, which obtains its multimedia content via Yellowcontent, a joint venture between Swisscontent and Swiss Post.
The question is whether such a large crew is still in a healthy relationship to the rather small customer base with one key customer. After all, most major websites in Switzerland currently obtain their news content from other suppliers: SwissTxt
(Search.ch, Swissonline), Internet media (Tiscali, Orange, Sunrise) or media companies (Bluewin, MSN, media sites).
Bendicht Luginbühl, CEO of Swisscontent, is optimistic about the future: "In twelve months, we have built up the largest Internet-specific multimedia publishing company in Switzerland. Only now have we reached the size with which we can supply numerous large customers." Luginbühl also announced that he would be presenting further customers in the coming weeks: "A lot will change in the Swiss content market."
With scarce resources
serve many portals
And once the density of broadband connections increases, interest in the multimedia content offered by Swisscontent may also increase. So this is not an imminent American scenario...
The situation is quite different for Internet Medien AG, one of the first independent content providers for the Internet in Switzerland: thanks to its early market entry and the know-how it has built up (including in the consulting sector), it has been able to conclude a number of supply contracts with major content buyers, most recently with T-Online. In contrast to Swisscontent, however, resources are rather scarce at the Basel-based company. Founded two years ago, the company currently employs "only" 15 editors.
The result of this staffing situation: apart from the Basel area, Internet Medien AG's News.ch platform mainly supplies edited SDA reports, which are selected according to the needs of the customer. Despite the overwhelming competition from SwissTxt and Swisscontent, Benjamin Aebischer, CEO of Internet Medien AG, is still relaxed about further contracts and continues to rely on the low-cost model. Aebischer also knows that the company is still benefiting from its early market entry: "With the same starting capital as two years ago, we wouldn't stand a chance now."
NBCi, a joint venture between NBC and CNET, recently announced that it would be laying off over 100 employees. Time Warner and Murdoch's News Corp. are also cutting back heavily in their online editorial departments. The online company of the New York Times wants to give a sixth of its employees the pink slip in order to reach the profit zone more quickly. Some newly founded Internet content providers have disappeared from the scene completely. The first redundancies have also been reported in Germany.
Is there any reason to fear something similar in Switzerland? Hardly, because there are practically no companies in this country that have invested heavily in setting up online editorial teams. And so, in their future Internet adventures, local media companies can once again benefit from the experience of the much more mature and risk-averse American market.
The old Swiss (un-)
Virtue: Don't rush things
Peter Wyss, Head of New Media at Bund Verlag: "The problem with pioneers is that they very often create redundancy and unnecessary services that then have to be removed again. Of course, we can learn from these experiences." Martin Diem, Managing Director of Bern Online AG, the Internet subsidiary of BTM AG, also believes that the Swiss caution may have paid off: "It is conceivable that it is now paying off that nothing was rushed in Switzerland."
Even in the age of new economy hysteria, those who behave so cautiously can hardly spell back. This is why practically all media companies are continuing to focus on the controlled expansion of their online editorial teams.
The largest online editorial team still has few customers
Swisscontent Corp., which is backed by Beat Curti Medien Holding AG and Medien Z Holding AG, is a high-flyer, at least in terms of personnel, and virtually unique in the Swiss Internet landscape. Founded just one year ago, the company now employs over 100 people, 80 of whom are journalists. However, the only major customer for content to date is Swiss Post with its Yellowworld portal, which obtains its multimedia content via Yellowcontent, a joint venture between Swisscontent and Swiss Post.
The question is whether such a large crew is still in a healthy relationship to the rather small customer base with one key customer. After all, most major websites in Switzerland currently obtain their news content from other suppliers: SwissTxt
(Search.ch, Swissonline), Internet media (Tiscali, Orange, Sunrise) or media companies (Bluewin, MSN, media sites).
Bendicht Luginbühl, CEO of Swisscontent, is optimistic about the future: "In twelve months, we have built up the largest Internet-specific multimedia publishing company in Switzerland. Only now have we reached the size with which we can supply numerous large customers." Luginbühl also announced that he would be presenting further customers in the coming weeks: "A lot will change in the Swiss content market."
With scarce resources
serve many portals
And once the density of broadband connections increases, interest in the multimedia content offered by Swisscontent may also increase. So this is not an imminent American scenario...
The situation is quite different for Internet Medien AG, one of the first independent content providers for the Internet in Switzerland: thanks to its early market entry and the know-how it has built up (including in the consulting sector), it has been able to conclude a number of supply contracts with major content buyers, most recently with T-Online. In contrast to Swisscontent, however, resources are rather scarce at the Basel-based company. Founded two years ago, the company currently employs "only" 15 editors.
The result of this staffing situation: apart from the Basel area, Internet Medien AG's News.ch platform mainly supplies edited SDA reports, which are selected according to the needs of the customer. Despite the overwhelming competition from SwissTxt and Swisscontent, Benjamin Aebischer, CEO of Internet Medien AG, is still relaxed about further contracts and continues to rely on the low-cost model. Aebischer also knows that the company is still benefiting from its early market entry: "With the same starting capital as two years ago, we wouldn't stand a chance now."
