SRG shelves "radio advertising

Radio spots on SRG stations would put private radio stations at a disadvantage

Radio spots on SRG stations would make private radio stations losersIf private TV providers receive a share of the SRG fees, SRG wants to compensate for the associated loss of revenue with radio advertising on its stations. This was previously the SRG's position. However, it has now (almost completely) abandoned this position. At the annual media conference on July 2, SRG Director General Armin Walpen explained that he would not be applying for radio advertising because private radio stations would suffer as a result. Currently, CHF 11 million is distributed to private radio stations each year, but they are demanding more. In addition, around CHF 40 million in favor of private TVs is currently being considered in the political debate, and according to Walpen, the SRG is prepared to cede a maximum of CHF 15 million. However, in the event of a larger increase in the fee-splitting share, he called for the levying of two fees for the sake of transparency, one for SRG and one for the private broadcasters, as well as compensation for SRG's loss of revenue. And just in case no compensation is granted, Walpen is keeping the back door of radio advertising open.
Walpen justified the fact that SRG is now putting down the "radio advertising" fence post with a study commissioned by SRG from the Berlin-based Goldmedia Institute. According to the study, the sponsorship and advertising turnover of private radio stations would increase to CHF 173 million by 2010 if conditions remained the same as today, and SRG would receive an additional CHF 12 million in sponsorship. With radio advertising on SRG radios, on the other hand, radio advertising revenue would even rise to CHF 243 million (3.7% of the total advertising volume), with SRG radios alone accounting for CHF 148 million - mainly thanks to their greater reach. And even if a total of three private regional-language stations were approved, SRG radio would still be left with CHF 111 million.
With radio advertising, the SRG could therefore easily make up for its loss of income from the extended fee splitting, whereas the publishers, who in most cases are the sponsors of private TVs and radios, would lose more on balance than they would gain from fee splitting. Markus Knöpfli

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