Swiss television loses advertising customers
Swiss Television (SF) is having to tighten its belt. The reason: A nearly 9 percent drop in advertising revenue since the beginning of the year is leaving a significant hole in its budget. Is another round of cost-cutting on the horizon?
Swiss Television (SF) is having to tighten its belt. The reason: almost 9 percent less advertising revenue since the beginning of the year has made a considerable dent in the budget. 16 million francs are missing from the coffers. This was reported by the SonntagsZeitung with reference to data from the Zurich research service Media Focus.
SF 1 saw the biggest decline, accounting for almost 17%. Although the second channel increased by around a third thanks to the Olympics and the World Cup, it was unable to plug the gap. The fact that total advertising revenue in Switzerland rose by around 4 percent year-on-year and that the economy is good is a particularly explosive aspect of the data. SRG's top management is now looking for solutions.
Bad program? Migration to private channels?
Television director Ingrid Deltenre explained the decline with the discontinuation of the two Coop advertising programs. However, Coop denies that its TV advertising budget is practically unchanged and that it is investing more in commercials. The poorer program quality and the lack of successful shows are also blamed. Advertising customers are unsettled by the many changes in the entertainment program. And the money is flowing to the private broadcasters, who are enjoying a 22% increase in advertising money. The Swiss advertising windows of foreign stations increased by 12%.
In the savings round is before the savings round
SRG is currently implementing the 80 million savings program. Asked by the SonntagsZeitung, SRG CEO Armin Walpen does not rule out an additional round of savings. A review will also be carried out to determine whether additional measures are necessary in the current savings round. This would depend on the development of income and expenditure, said Walpen. The SonntagsZeitung also takes this data as an opportunity to forecast the increase in radio and television fees. The SRG Board of Directors has promised that the annual fee will not rise by more than CHF 45. The Federal Council will decide on this issue in February.
SF 1 saw the biggest decline, accounting for almost 17%. Although the second channel increased by around a third thanks to the Olympics and the World Cup, it was unable to plug the gap. The fact that total advertising revenue in Switzerland rose by around 4 percent year-on-year and that the economy is good is a particularly explosive aspect of the data. SRG's top management is now looking for solutions.
Bad program? Migration to private channels?
Television director Ingrid Deltenre explained the decline with the discontinuation of the two Coop advertising programs. However, Coop denies that its TV advertising budget is practically unchanged and that it is investing more in commercials. The poorer program quality and the lack of successful shows are also blamed. Advertising customers are unsettled by the many changes in the entertainment program. And the money is flowing to the private broadcasters, who are enjoying a 22% increase in advertising money. The Swiss advertising windows of foreign stations increased by 12%.
In the savings round is before the savings round
SRG is currently implementing the 80 million savings program. Asked by the SonntagsZeitung, SRG CEO Armin Walpen does not rule out an additional round of savings. A review will also be carried out to determine whether additional measures are necessary in the current savings round. This would depend on the development of income and expenditure, said Walpen. The SonntagsZeitung also takes this data as an opportunity to forecast the increase in radio and television fees. The SRG Board of Directors has promised that the annual fee will not rise by more than CHF 45. The Federal Council will decide on this issue in February.
