Challenging environment for regional TV stations

Regional TV stations in Switzerland, as in other European countries, are in a difficult financial situation. Their audience figures often remain modest. This is the result of a study commissioned by Bakom.

In the comparative study, however, the authors of the Wagner-Hatfield office also show exemplary approaches and initiatives as to how regional television could be strengthened in the future.

The economic situation of the 13 licensed Swiss regional television stations is tense: Half of the broadcasters are underfunded or overindebted; only three TV stations are profitable. No station would be viable without fee support. The fee currently accounts for up to 60 percent of operating costs. In terms of journalism, the stations fulfill their mission insofar as the contributions of their information programs largely relate to the regional area. Regional television is received differently by audiences, but overall viewer numbers remain modest. The stations achieve maximum market shares of 1.3 percent in their coverage areas.

Decline in advertising revenues, shift to the Internet

With a view to the future design of regional public service, Bakom is interested in the situation of regional television in Europe. For this reason, Bakom commissioned the Wagner-Hatfield office to investigate the regional television landscape in selected countries or regions, such as Germany (Bavaria and Saxony), Belgium (Flemish and Walloon regions), France and Great Britain. The study shows that the regional television industry is in a difficult economic situation in all the countries and regions examined: Overall, a decline in advertising revenues is discernible. Media usage is tending to shift to the Internet. Television tends to reach older people and only young people to a limited extent. In all the regions studied, however, regional television enjoys political support and is promoted both directly financially and indirectly with various measures. In a cross-comparison, Swiss broadcasters benefit from good financial support.

The authors of the study conclude that, given the current situation, the regional television industry must reposition itself for the future by means of innovative economic models and adapt to changing media usage habits. Based on concrete European examples, the authors name corresponding measures that could also be implemented in Switzerland. These would have to be taken partly by the regulatory authority, but also partly by the regional television industry itself. At the regulatory level, the authors advocate, for example, relaxing the limit of two licenses per company anchored in the Radio and Television Act, or measures which facilitate or secure the findability of regional stations in the digital offering. At the industry level, the authors see, for example, cooperation among regional television broadcasters as a means of holding their own better in the market.

The study

Bakom commissioned experts Marc Janssen and Jean-François Furnémont of the Wagner-Hatfield office in Brussels to analyze the situation of regional TV in selected European countries and to formulate recommendations for future regulation in Switzerland. The authors analyzed the regulatory framework of the countries studied, taking into account the publishing performance and the success of regional TV in the audience and advertising markets. Methodologically, the study includes document analyses as well as qualitative interviews with exponents of the selected countries Germany (Bavaria and Saxony), Belgium (Flemish and Walloon region), France and Great Britain.

An abridged version of the report is available in French, German, Italian and English. The integral study "Future Prospects for Regional Television" is available in French. To the downloads

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