Optimistic with deep red figures

Only fee-sharing holds the promise of revitalizing the local TV landscape

Only fee-splitting promises a recovery of the local TV landscapeBy Daniel Schifferle Thanks to the recently sealed cooperation with Publisuisse, TeleNewsCombi is optimistic about the future. However, a truly healthy local TV landscape is not expected until fee-splitting is introduced.
The advertising alliance of eight Swiss local TV stations has had some turbulent times. Just last week, TeleNewsCombi (TNC) signed a cooperation agreement with Publisuisse and decided on an advertising combination with SF1 (WW 35/02).
Central tasks that were previously carried out by TNC's sole marketer Radiotele have now been transferred to Publisuisse. "The framework conditions have never been as good for us as they are today," said TNC Managing Director Marcel Geissbühler during a presentation that the private TV network launched on a day-long cruise on Lake Zurich (see box). The cooperation agreement with Publisuisse and the advertising combination with SF 1 are a milestone in the history of TNC.
The latter has high hopes for the new collaboration - and must have high hopes. At present, financially healthy local TV stations are nothing more than a pipe dream. Many stations recoup almost half of their budgets through advertising and sponsorship. Filippo Lombardi, Managing Director of the private TV association Telesuisse, member of the Council of States and owner of Tele Ticino, demonstrated the difficult situation himself. Together, the 18 members of Telesuisse have annual costs totaling CHF 70 million. However, this cost base would only be offset by advertising and sponsorship income of CHF 40 million. If you add to this the CHF 5 million from the "small fee splitting" that is already distributed to the local broadcasters, the bottom line is still a hefty loss of CHF 25 million. "That is
not a healthy situation," said Lombardi. The Ticino Councillor of States knows exactly what he is talking about, as his own broadcaster TeleTicino had just hit the headlines in connection with cost-cutting exercises - with employees cutting their salaries.
Healthy local TV landscape only from 2005
Lombardi does not expect to see a healthy local TV landscape until the announced millions from fee-splitting flow in. If the debate on the revision of the RTVA proceeds without further delays, this will be the case in 2005. Each licensed regional TV station could then expect a basic contribution of CHF 2 to 3 million.
Lombardi painted a rosy future for the recipients of the millions in fees. "With a basic contribution of CHF 2 to 3 million per station, all TV stations will be able to offer regional information very professionally and in high quality." This increase in fees will also make it easier to develop new programs and ideas in collaboration with advertising and sponsorship partners.
The Telesuisse managing director is not without worries with regard to his association, in which 18 private broadcasters are organized. They will hardly all be able to benefit from the prospective splitting millions. The Federal Council only intends to consider 10 to 12 broadcasters.
TeleNewsCombi on a cruise

TeleNewsCombi guests were able to spend a whole day cruising on one of the large passenger ships on Lake Zurich. An all-round successful event that was also praised for its exciting content. However, the great effort would have deserved a little more audience. The event was originally planned for around 120 people. However, according to the organizers, only around 80 came in the end. If you deduct the 30 people who attended from the ranks of the TNC, that leaves just 50 guests. "It was probably a bit cheeky to want to take people away from work for a whole day," Geissbühler said self-critically. (dse)

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