Federal Council wants to increase funding for press and online media

On Wednesday, the Federal Council adopted the dispatch on the package of measures in favor of the media. It wants to partially revise the Radio and Television Act and the Postal Services Act. In addition, a media law limited to ten years is to be created. Parliament could deal with the bill for the first time in the summer session in June.

In addition to the SRG, which currently receives CHF 1.2 billion from the fee pot and will receive CHF 1.25 billion from 2021, CHF 111 million per year has so far gone to the private media: CHF 81 million to local radio and television stations and CHF 30 million to the postal delivery of regional and local press.

Profit more from the cake

In order to maintain press diversity, indirect press subsidies are now to be extended to all daily and weekly newspapers with subscriptions. To this end, the current circulation limit of 40,000 copies will be lifted so that national newspaper titles can now also benefit from the support.

Newly, newspapers that are part of a so-called "Kopfblattverbund" with an average total circulation of more than 100,000 copies per issue will also benefit from the funding.

According to the Federal Council, the two measures will enable around 35 million additional newspaper copies per year to benefit from indirect press subsidies in future. The federal contribution will be increased from the current CHF 30 million to CHF 50 million so that the less high-circulation titles will also benefit. This means that all subsidized titles will benefit from a higher delivery discount per copy.

Only reader-financed online media

Online media will now also be eligible for funding. The Federal Council intends to make CHF 30 million in general federal funds available each year for this purpose.

Last summer, Media Minister Simonetta Sommaruga proposed only supporting online media that sell their content. The Federal Council has now fleshed out this model. Online media that can count on revenue from readers will be supported. Income from online subscriptions, daily passes or individual downloads as well as voluntary contributions from readers will be taken into account.

The support is to be based on audience turnover and designed to be degressive. This means that the proportion of support decreases with increasing turnover. This leads to greater support for media offerings with a regional focus.

Common platform

The Federal Council also wants to improve the framework conditions for the electronic media with various other measures. These include supporting training and further education institutions, national news agencies and self-regulatory organizations.

In addition, the Federal Council envisages that IT projects can be supported, especially those that are available to the entire industry. This means that all online media, including free offerings, will benefit regardless of the business model. It would be conceivable, for example, to support the development of a joint platform.

These general measures will be financed with a maximum of 2% from the proceeds of the radio and television license fee. The Federal Council emphasizes that the independence of the media will be preserved in all measures.

Media market in crisis

In the past, opinions have differed on the expansion of media funding. Various reforms failed to find a majority - whether in the government or in parliament. A provisional emergency package of 78 million francs during the coronavirus crisis also recently failed.

Now the Federal Council is presenting a new model. This is important for the industry. The pressure on the media is currently greater than ever. Even before the coronavirus crisis, advertising revenues were falling rapidly. Since the turn of the millennium, the Swiss press has lost more than two thirds of its advertising revenue.

The pandemic has exacerbated the existing problems. As a result, publishers are being forced to pass on more and more costs to subscribers and cut staff.

Pending motions

The coming months will show whether the media package is capable of gaining a majority in parliament. It is clear that the Committees for Transport and Telecommunications (KVF) have recognized the emergency situation. They have submitted motions - some with large majorities - calling for immediate aid for the media.

The Keystone-SDA news agency is to be supported and the delivery of newspapers is to be made cheaper. Finally, they are calling for regional radio and television broadcasters to be supported with an additional CHF 30 million.

These initiatives are expected to be dealt with at the extraordinary session next week. They are intended to bridge the time until the media package that has now been communicated comes into force. (SDA)