"We expect that there will be mergers"
Bakom Deputy Director Martin Dumermuth on the announced fee splitting for local television
Bakom Deputy Director Martin Dumermuth on the announced fee-splitting for local televisionThe announced fee-splitting for local television aims to put pressure on broadcasters to come together wherever the structures are too small for several providers. According to Bakom Deputy Director Martin Dumermuth, the aim is to create a more efficient and professional local and regional TV scene.The local and regional TV map of Switzerland will change as a result of the decision on fee splitting, as only ten to twelve stations are to benefit. Is streamlining the goal?
Martin Dumermuth: The Federal Council's decision to award fee money to local and regional television is also linked to the desire for broadcasters to become more efficient. The fact is that the local television landscape in Switzerland today is in part very small-scale. However, local television stations need a certain critical size to be able to operate professionally. Certain structural adjustments will therefore be unavoidable.
But of the 17 or 18 broadcasters today, a whole series will come away empty-handed.
Dumermuth: If you assume that everyone wants to remain independent, then that is the consequence. The aim of limiting the number of licenses to just ten or twelve is to create a certain amount of pressure so that the broadcasters in the region concerned get their act together. Each local television station will have to assess for itself whether it wants to go the whole hog and apply for a license on its own. Then it's all or nothing for them. The other option is to team up with the competition for a joint project. In other words, we expect mergers to take place.
One special feature: the performance mandate is returning. But it should actually have been removed from the law with the current revision of the RTVA. Are you happy with that?
Dumermuth: The performance mandate is the consequence of state subsidies, which are of course only paid in return for a service. In terms of thrust, however, the performance mandate and market requirements do not hurt each other in the local area. On the contrary, they tend to go in the same direction. After all, experience has shown that local and regional TV stations have their niche in the local area.
What will this performance mandate look like?
Dumermuth: It will be a performance mandate focused on the regional area, broadly similar to the current one. At best with a little more substance and more rigorously enforced.
However, it will hardly be possible to ensure that the splitting millions actually flow into the program one day. How can we ensure that the money is not simply used to cover the current deficits?
Dumermuth: On the one hand, we have the aforementioned performance mandate. On the other hand, there are significant improvements in the broadcasters' budgets. One example: Today, I assume average budgets of CHF 5 million per broadcaster - a little more here, a little less there. If we were to award 10 broadcasters an average of CHF 2.5 million, this would result in budget financing of around 50 percent. This would certainly also enable a certain expansion of services.
SRG Director General Armin Walpen called for radio advertising as compensation for fee splitting. What signals are there?
Dumermuth: The Federal Council also discussed this topic on the same day that it announced its plans for fee splitting. It explicitly rejects radio advertising. Although this is not explicitly stated in the media release, the Federal Council has clearly taken a stand in this direction.
Would a new revision of the RTVA be necessary for the introduction of SRG radio advertising?
Dumermuth: No, because the ban on radio advertising is currently laid down in the SRG license and not in the law. It merely states that the Federal Council can ban advertising in individual SRG programs. This means that, in theory, the Federal Council could amend the concession accordingly on its own authority. Interview: Daniel Schifferle
Martin Dumermuth: The Federal Council's decision to award fee money to local and regional television is also linked to the desire for broadcasters to become more efficient. The fact is that the local television landscape in Switzerland today is in part very small-scale. However, local television stations need a certain critical size to be able to operate professionally. Certain structural adjustments will therefore be unavoidable.
But of the 17 or 18 broadcasters today, a whole series will come away empty-handed.
Dumermuth: If you assume that everyone wants to remain independent, then that is the consequence. The aim of limiting the number of licenses to just ten or twelve is to create a certain amount of pressure so that the broadcasters in the region concerned get their act together. Each local television station will have to assess for itself whether it wants to go the whole hog and apply for a license on its own. Then it's all or nothing for them. The other option is to team up with the competition for a joint project. In other words, we expect mergers to take place.
One special feature: the performance mandate is returning. But it should actually have been removed from the law with the current revision of the RTVA. Are you happy with that?
Dumermuth: The performance mandate is the consequence of state subsidies, which are of course only paid in return for a service. In terms of thrust, however, the performance mandate and market requirements do not hurt each other in the local area. On the contrary, they tend to go in the same direction. After all, experience has shown that local and regional TV stations have their niche in the local area.
What will this performance mandate look like?
Dumermuth: It will be a performance mandate focused on the regional area, broadly similar to the current one. At best with a little more substance and more rigorously enforced.
However, it will hardly be possible to ensure that the splitting millions actually flow into the program one day. How can we ensure that the money is not simply used to cover the current deficits?
Dumermuth: On the one hand, we have the aforementioned performance mandate. On the other hand, there are significant improvements in the broadcasters' budgets. One example: Today, I assume average budgets of CHF 5 million per broadcaster - a little more here, a little less there. If we were to award 10 broadcasters an average of CHF 2.5 million, this would result in budget financing of around 50 percent. This would certainly also enable a certain expansion of services.
SRG Director General Armin Walpen called for radio advertising as compensation for fee splitting. What signals are there?
Dumermuth: The Federal Council also discussed this topic on the same day that it announced its plans for fee splitting. It explicitly rejects radio advertising. Although this is not explicitly stated in the media release, the Federal Council has clearly taken a stand in this direction.
Would a new revision of the RTVA be necessary for the introduction of SRG radio advertising?
Dumermuth: No, because the ban on radio advertising is currently laid down in the SRG license and not in the law. It merely states that the Federal Council can ban advertising in individual SRG programs. This means that, in theory, the Federal Council could amend the concession accordingly on its own authority. Interview: Daniel Schifferle
