Private radio stations increase advertising revenues
Private radio stations are benefiting financially from the new radio and television legislation. The outlook is less promising for regional television. These are the findings of a recent Publicom study commissioned by Bakom and industry associations.
Since the new Radio and Television Act (RTVA) came into force, the economic situation of private radio stations has improved significantly. Advertising revenues also increased, reaching CHF 164 million in 2012. The situation is less rosy for licensed regional television, which is still a marginal player in the Swiss advertising market.
Thanks not least to increased revenues from the advertising market, the economic situation of private radio stations has improved significantly in recent years. Revenues from advertising and sponsorship have risen by eight percent since 2010 to 164 million Swiss francs.
Nevertheless, a good half of the tour operators do not achieve sufficient profitability, and the number of tour operators making losses increased again last year. However, the overall picture is very mixed. In all regions of Switzerland, there are radios that are successful overall and those that are less successful. This also applies to the conversion of fee money into programming services: The most efficient broadcaster produces more than three times as much regional information with its share of fees as the radio station with the lowest conversion performance.
Difficult situation at regional television
Despite an increase in the share of fees, the situation of the licensed regional television stations continues to be very difficult, although up to 70 percent of operating expenses can now be covered by fees. Only two broadcasters are sufficiently profitable, and half are underfunded or overindebted. Although revenues from advertising and sponsorship have increased significantly since 2009, sales have recently stagnated again. With advertising revenues of CHF 40 million (excluding Tele Züri), regional television is still a marginal player in the Swiss advertising market.
Regional television stations also vary widely in how they convert the license fee money they receive into programming services: The most efficient broadcaster produces about seven times more regional information with the public funds than the regional television with the lowest conversion performance.
Since 2012, Publicom has been investigating the economic situation of licensed private broadcasting stations on behalf of the Federal Office of Communications and the industry associations. The abridged report of the study "The economic situation of private broadcasting in Switzerland - update (data basis 2012)" can be under this link can be downloaded.
