The hour of the publisher

Local Television: With Edipresse's entry into the market, a publishing company is becoming the backbone and driving force of the TV scene in French-speaking Switzerland as well.

Local television With the entry of Edipresse, a publisher is also becoming the backbone and engine of the TV scene in French-speaking Switzerland. "In French-speaking Switzerland, the time is ripe for a consolidation of the TV market. But this requires new players. We want to be one of them." With these words, Tibère Adler, CEO of Edipresse Switzerland, explains why his company is entering the French-speaking Swiss TV market at this particular time. According to Adler, the TV commitment also offers Edipresse new access to the same audience that the Group has previously served with its newspapers and magazines.Edipresse has long only had a toehold in this market - the Group has a stake of just under two percent in Geneva-based Léman Bleu. Now, however, Edipresse is putting two feet in at once. Firstly, the company is increasing its involvement with the broadcasters. Edipresse plans to increase its stake in Léman Bleu (350000 potential viewers) to 22 percent in June - via a capital increase. However, the media group is taking an even bigger stake in Vaud TV, the merger of the three Vaud local channels TV RL in Lausanne, Canal Nord Vaudois (CNV) in Yverdon and Ici TV in Vevey (a total of around 500,000 potential viewers).
According to a letter of intent signed by the four parties, Edipresse and TV RL will each hold 35 percent of the new Vaud TV SA, while CNV and Ici TV will each receive 15 percent.
Although investments in other stations in French-speaking Switzerland have not been ruled out, no talks have yet taken place. "In the next two years, we will initially concentrate on the two most important areas of French-speaking Switzerland. We have enough work there," says Christophe Rasch, who has been appointed head of the TV division at Edipresse.
Edipresse's second foothold is the marketing of TV advertising. To this end, the Group founds the subsidiary Ecran Pub SA, in which it will hold 90 percent and the management 10 percent. Bertrand Froidevaux, the current commercial director of Ici TV, is appointed CEO. Ecran Pub is under time pressure, as it will be taking over the TV marketing contracts with TV RL, CNV and Léman Bleu from the Lausanne TV agency Force Promotion (FP, see box), which is giving up TV marketing at the end of April, as of May 1. In addition, Ecran Pub will also market Ici TV, and the agency is already the exclusive marketer of the Vaud TV merger product.
Trial runIt remains to be seen whether other stations in French-speaking Switzerland will be signed up. "We will talk to various stations," says Rasch. However, Ecran Pub is already facing its first test: the contract that Léman Bleu had with FP expires at the end of the year (see WW 4/05). The Geneva-based broadcaster terminated the contract on time because it was dissatisfied with the conditions. Not only Edipresse, but also Radiotele therefore applied for the favor of the Geneva-based station.
As Edipresse is now increasing its stake in the broadcaster, it stands to reason that Ecran Pub will come on board as marketer. Presumably for the next three years. "That was one of our conditions," says Tibère Adler. Antoni Mayer, Chairman of the Board of Directors of Léman Bleu since last June, however, clarifies: "The Edipresse investment does not commit us to anything. Our commitment for three years is provisional and only applies if a new contract is negotiated. We do not want to continue the current management contract with FP under any circumstances." Negotiations will now continue until the end of March. If no satisfactory result is reached, he will try to negotiate a new contract.
try another agency, for example with Radiotele, says Antoni Mayer.
"Not a goldmine "Rasch does not want to say how much Edipresse will invest in its entire TV commitment. The only thing that is certain is that the share capital of Vaud TV's sponsor must amount to "several million". And at least five million francs would then also be needed annually to operate it. "It won't work with less," he says.
In terms of advertising acquisition, Ecran Pub will focus on local, regional and national advertising. Today, the three Vaud stations have a total turnover of around CHF 2.2 million (including sponsorship). "This can be doubled within two to three years," predicts Tibère Adler: "The advertising potential in French-speaking Switzerland has not yet been exhausted." He is thinking about program improvements, the replacement of programs and new forms of advertising.
"The business is not exactly a goldmine, but it can certainly be run profitably," says Adler. However, the CEO attaches little importance to the synergy potential between the company's own press and TV. "You shouldn't overestimate that," he says.
Model sought for French-speaking Switzerland TV combiRadiotele is not surprised by Edipresse's entry into the French-speaking Switzerland TV business. "We had to expect a publisher sooner or later," says Radiotele boss Bruno Oetterli. He is now hoping for a new boost for the TV scene. And he now wants to clarify how things should continue with the RomandieNewsCombi (RNC) (WW 4/05). The discussion about this was blocked due to the uncertain situation of FP.
Christophe Rasch, for his part, is rather skeptical about the RNC. "The tariff is too low. It's worth it for Radiotele, but not for the broadcasters," he says. He therefore wants to work with Radiotele to find another cooperation model that uses survey data from the market research institute MIS Trend instead of Telecontrol. "This is more representative for French-speaking Switzerland," says Rasch. (mk)
Tired for quite some time Force Promotion (FP) has not been at its best for quite some time. The fact that its commitment has waned can even be seen on its homepage: The 2004 tariffs are still published there, and the spectator data even dates back to 2002. The only board of directors
Daniel Berset could not be reached for comment. However, it is clear that he originally intended to sell FP as a whole - and not just the assets.
He had sent corresponding inquiries to both Edipresse and Radiotele. However, both declined. If FP now cancels its sails at the end of April, Ecran Pub will perhaps take on some employees. Berset, on the other hand, is getting out of the business. (mk)
Edipresse will acquire a 22 percent stake in Léman Bleu and a 35 percent stake in the three Vaud TV stations.
Markus Knöpfli

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