Circulation skyrockets with TVA
Wemf From 2005, a new set of regulations will ensure greater transparency. The new values will no longer be comparable with the old ones.
Wemf From 2005, new circulation regulations will ensure greater transparency. The second most important currency in the print media sector, circulation figures, are not "hard" in Switzerland. This is because the circulation regulations of the AG für Werbemedienforschung (Wemf) give publishing house managers a lot of leeway. The certified circulation must actually exist, but the actual circulation does not have to be reported. For example, a maximum of five percent of the certified "paid circulation" can consist of free subscriptions. In other words, two titles with the same certified circulation do not necessarily have the same subscription structure. It is also not clear whether a publisher also regularly distributes or sends out additional free copies.
According to the regulations, publishers of sold titles are free to decide whether or not they want to indicate an additional free print run. Most of them do not. There is a possible calculation behind this: the lower the print run, the higher the number of readers per reported copy.
However, not only the free copies, but also the sold and subscribed copies can be deep-stacked at will. This is often used for new launches or mergers and is also recommended by Wemf. The idea behind this is that it is more beneficial to the image of the title to show lower figures at the beginning and then rising figures year after year than a brilliant start with a subsequent drop in circulation.
However, the cheating on circulation figures with the blessing of the circulation regulations should soon come to an end. This is because Wemf's Circulation and Distribution Commission has revised the regulations in recent weeks. Publishers, associations, advertisers, media planners and advertising clients have been given the opportunity to comment on the draft until November 30. If it is approved without major changes, the new regulations will come into force on January 1, 2004 and will be applied for the first time in the 2005 circulation certification (basis 2004).
Above all, the proposed regulation will introduce a completely new value. "It will be a similar cut to when we switched from the K1 to the LpA value for the Mach Basic," says Wemf Director René Schmutz. "The new values will no longer be comparable with the previous ones."
The main change: In future, Wemf will uniformly certify the "actually distributed circulation" (TVA) for both free and retail titles. This now includes all copies sold as well as all free copies regularly sent or distributed
(= free circulation). The draft regulations also state that publishers must in future "report all copies actually distributed".
The number of copies sold is now also divided into three categories: Copies that are sold at full subscription or single copy price, secondly those that are discounted by a maximum of 50 percent, and thirdly those that are discounted by more than 50 percent (but not free). Trial subscriptions fall into the second category. For the first time, new subscription options such as e-paper or print on demand are also taken into account, whereby a subscription invoice including a password list must be submitted for e-paper for verification.
No "indecent" conditions
There is another significant change with regard to the free circulation of titles that want to be considered "sold": A maximum of 25 percent of their TVA may consist of free subscriptions. One exception is large print runs, which will continue to be shown as a separate free title. "The visual appearance is changing: free editions are no longer 'indecent', but simply a form of distribution," says Schmutz.
In future, the TVA and the individual circulation components will be published individually in the circulation bulletin. They must also be listed in the tariff documentation. However, it is up to the individual title whether it publishes the TVA or just one category of it in its masthead or advertising. "The new circulation categories open up a new field of competition for publishers," says Schmutz. Another consequence of this is that publishers will have to agree on whether they want to use the LpE value (readers per copy) in relation to the TVA or a sub-category in future.
The new regulation will have another effect: From 2005, the TVA will in most cases certify considerably higher circulation figures than today. However, this means that some publishing house managers run the risk of having their current circulation policy retroactively scrutinized. To avoid this, some publishers will therefore cushion the "circulation jump" of 2005 by adjusting their circulation as far as possible to future conditions at the next certification (based on 2003). For example, by no longer understating their paid circulation and/or by making full use of the five percent margin for free circulation. In short: circulation will not "increase" in 2005, but probably already next year.
"The new regulation brings significantly improved transparency," says Christel Plöger, Wemf's chief certifier. However, she expects that many of the first self-declarations using the new method will be incorrect. All the more so as, according to the draft regulations, the self-declarations must be submitted to Wemf by January 31. The values should then be available for publication from February 1.
This is why the regulations were changedIt is surprising that regulations that have been in force for years are radically changed within weeks. According to Christel Plöger, Wemf's head of circulation, various adjustments were obsolete, which now led to the rapid revision. She mentions Wemf's new press categories, the new e-paper and print-on-demand subscription options, the desire to bring forward the self-declaration deadline and the fact that no sanctions were previously listed. It is also said that Tamedia's new circulation policy provided the main impetus. Plöger comments: "That was
at most the last straw that broke the camel's back." (mk)
"Sold titles "Certified circulation to date "Sold circulation"
Retail sales (kiosk + vending machines)
Paid subscriptions in Germany
Paid trial subscriptions
Paid subscriptions abroad
Subscriptions for direct employees
Free subscriptions (max. 5% of the other circulation elements)*.
Certified edition new
"actually distributed circulation" (TVA)
Retail sales (kiosk + vending machines + print on demand)
Fully paid print subscriptions
E-paper subscriptions
Print subscriptions reduced by max. 50%
E-paper subscriptions
Print subscriptions reduced by more than 50%
(but not for free)
Subscriptions for direct employees
Free subscriptions* (max. 25% of TVA)
Source: Werbewoche/Wemf
* Including copies to non-direct employees, retirees, shareholders, freelancers, contractors, schools, retirement homes,
Hospitals and free subscriptions for advertisers, advertising agencies
and exchange copies.
The most important changes at a glanceFormer regulations
Self-declaration by March 31
Release from 1.4.
Wemf certifies the "sold title" for sold titles.
Circulation", for free titles the distributed or boxed circulation
A maximum of 5% of the "sold circulation" can consist of free subscriptions
Contractual penalties not mentioned
Previous press categories
New regulations
Self-declaration by January 31
Release from 1.2.
Wemf generally certifies the "actually distributed circulation" (TVA). For "sales titles", the TVA may be max.
25% consist of free subscriptions
The "paid circulation" is being redefined: it is a part
of the TVA and does not include any free subscriptions
New press categories
Regulation: Detailed requirement must be included in
E-paper and print on demand can be authenticated
Various new definitions
Wemf anticipates that most titles will achieve new circulation figures as early as 2004.
Markus Knöpfli
According to the regulations, publishers of sold titles are free to decide whether or not they want to indicate an additional free print run. Most of them do not. There is a possible calculation behind this: the lower the print run, the higher the number of readers per reported copy.
However, not only the free copies, but also the sold and subscribed copies can be deep-stacked at will. This is often used for new launches or mergers and is also recommended by Wemf. The idea behind this is that it is more beneficial to the image of the title to show lower figures at the beginning and then rising figures year after year than a brilliant start with a subsequent drop in circulation.
However, the cheating on circulation figures with the blessing of the circulation regulations should soon come to an end. This is because Wemf's Circulation and Distribution Commission has revised the regulations in recent weeks. Publishers, associations, advertisers, media planners and advertising clients have been given the opportunity to comment on the draft until November 30. If it is approved without major changes, the new regulations will come into force on January 1, 2004 and will be applied for the first time in the 2005 circulation certification (basis 2004).
Above all, the proposed regulation will introduce a completely new value. "It will be a similar cut to when we switched from the K1 to the LpA value for the Mach Basic," says Wemf Director René Schmutz. "The new values will no longer be comparable with the previous ones."
The main change: In future, Wemf will uniformly certify the "actually distributed circulation" (TVA) for both free and retail titles. This now includes all copies sold as well as all free copies regularly sent or distributed
(= free circulation). The draft regulations also state that publishers must in future "report all copies actually distributed".
The number of copies sold is now also divided into three categories: Copies that are sold at full subscription or single copy price, secondly those that are discounted by a maximum of 50 percent, and thirdly those that are discounted by more than 50 percent (but not free). Trial subscriptions fall into the second category. For the first time, new subscription options such as e-paper or print on demand are also taken into account, whereby a subscription invoice including a password list must be submitted for e-paper for verification.
No "indecent" conditions
There is another significant change with regard to the free circulation of titles that want to be considered "sold": A maximum of 25 percent of their TVA may consist of free subscriptions. One exception is large print runs, which will continue to be shown as a separate free title. "The visual appearance is changing: free editions are no longer 'indecent', but simply a form of distribution," says Schmutz.
In future, the TVA and the individual circulation components will be published individually in the circulation bulletin. They must also be listed in the tariff documentation. However, it is up to the individual title whether it publishes the TVA or just one category of it in its masthead or advertising. "The new circulation categories open up a new field of competition for publishers," says Schmutz. Another consequence of this is that publishers will have to agree on whether they want to use the LpE value (readers per copy) in relation to the TVA or a sub-category in future.
The new regulation will have another effect: From 2005, the TVA will in most cases certify considerably higher circulation figures than today. However, this means that some publishing house managers run the risk of having their current circulation policy retroactively scrutinized. To avoid this, some publishers will therefore cushion the "circulation jump" of 2005 by adjusting their circulation as far as possible to future conditions at the next certification (based on 2003). For example, by no longer understating their paid circulation and/or by making full use of the five percent margin for free circulation. In short: circulation will not "increase" in 2005, but probably already next year.
"The new regulation brings significantly improved transparency," says Christel Plöger, Wemf's chief certifier. However, she expects that many of the first self-declarations using the new method will be incorrect. All the more so as, according to the draft regulations, the self-declarations must be submitted to Wemf by January 31. The values should then be available for publication from February 1.
This is why the regulations were changedIt is surprising that regulations that have been in force for years are radically changed within weeks. According to Christel Plöger, Wemf's head of circulation, various adjustments were obsolete, which now led to the rapid revision. She mentions Wemf's new press categories, the new e-paper and print-on-demand subscription options, the desire to bring forward the self-declaration deadline and the fact that no sanctions were previously listed. It is also said that Tamedia's new circulation policy provided the main impetus. Plöger comments: "That was
at most the last straw that broke the camel's back." (mk)
"Sold titles "Certified circulation to date "Sold circulation"
Retail sales (kiosk + vending machines)
Paid subscriptions in Germany
Paid trial subscriptions
Paid subscriptions abroad
Subscriptions for direct employees
Free subscriptions (max. 5% of the other circulation elements)*.
Certified edition new
"actually distributed circulation" (TVA)
Retail sales (kiosk + vending machines + print on demand)
Fully paid print subscriptions
E-paper subscriptions
Print subscriptions reduced by max. 50%
E-paper subscriptions
Print subscriptions reduced by more than 50%
(but not for free)
Subscriptions for direct employees
Free subscriptions* (max. 25% of TVA)
Source: Werbewoche/Wemf
* Including copies to non-direct employees, retirees, shareholders, freelancers, contractors, schools, retirement homes,
Hospitals and free subscriptions for advertisers, advertising agencies
and exchange copies.
The most important changes at a glanceFormer regulations
Self-declaration by March 31
Release from 1.4.
Wemf certifies the "sold title" for sold titles.
Circulation", for free titles the distributed or boxed circulation
A maximum of 5% of the "sold circulation" can consist of free subscriptions
Contractual penalties not mentioned
Previous press categories
New regulations
Self-declaration by January 31
Release from 1.2.
Wemf generally certifies the "actually distributed circulation" (TVA). For "sales titles", the TVA may be max.
25% consist of free subscriptions
The "paid circulation" is being redefined: it is a part
of the TVA and does not include any free subscriptions
New press categories
Regulation: Detailed requirement must be included in
E-paper and print on demand can be authenticated
Various new definitions
Wemf anticipates that most titles will achieve new circulation figures as early as 2004.
Markus Knöpfli
