SRG: annual shortfall of over 50 million francs
SRG lacks an average of CHF 54 million per year to fulfill its performance mandate in the period 2011-2014. This is the conclusion of the 2011-2014 financial requirements report submitted by SRG to the Federal Council on Friday.
Without the savings measures and efficiency projects that have already been introduced, the average funding gap would be more than twice as high, the company announced according to SDA. The Federal Council must now decide which revenue or expenditure measures SRG should take to restore balance to its finances.
According to SRG, two factors contribute to the funding shortfall: CHF 40 million alone is missing because many more people receive supplementary benefits and therefore do not have to pay fees than the authorities assumed and took into account when setting fees in 2003. In addition, inflation has not been compensated for since 2000. The Federal Council could enable the SRG to close its financial gap with revenue measures. The SRG is submitting several proposals to the Federal Council in this regard. These include legal requirements for generating additional commercial revenue, for example through advertising and sponsorship as well as in the online sector. The SRG is also proposing that the national government increase federal contributions for services abroad. This concerns the Swissinfo online platform as well as 3SAT and TV5.
If revenues cannot be increased, expenditure will have to be reduced further, SRG continues. However, with the savings and efficiency programs introduced since 2004 and currently underway, the limit has been reached where this can be achieved without compromising the range of programming. SRG will, however, only as a last resort abandon programs that are important and popular in terms of supply strategy. A reduction in services is ultimately the responsibility of the Federal Council, as only it can cancel licensed programs.
Goal-oriented and careful
In its 2006 report, the Swiss Federal Audit Office (SFAO) recognized that SRG was using the resources made available to it in a goal-oriented and careful manner within the given structures. In the meantime, thanks to the structural reform, SRG had set the course towards convergence and a nationwide optimization of support functions. This could significantly increase the efficiency of the overall organization in the medium term.
The equivalent public service offering in the four language regions generates costs amounting to 42% of SRG SSR's total expenditure. These costs are mission-related and can be attributed to the demographic and cultural characteristics of Switzerland.
A threat to program quality and jobs
The Swiss Syndicate of Media Professionals (SSM) considers the fact that there is a massive lack of funds for the normal continuation of current program services to be a threat to program quality and jobs. The savings potential has already been completely exhausted in recent years. The Federal Council responsible must now come clean on the issue of an increase in funding, the SSM announced on Friday. However, there are also interesting financing options without having to significantly increase fees.
The media consumer organization Arbus believes that increasing revenue through more advertising is wrong. If the SRG demands further legal requirements to generate revenue, it is embarking on an incomprehensible path, Arbus stated.
Media freedom campaign against fee increase
In the current economic situation, the Campaign for Media Freedom considers it inappropriate for consumers to have to cope with a further increase in fees after 2007. It sees the solution in additional increases in efficiency, which are also unavoidable for private media providers due to the massive drop in income caused by the economic environment. "In the current advertising crisis in particular, further advertising opportunities will lead to private providers being put at a further disadvantage and therefore increasingly experiencing economic difficulties," the association said in a press release. This would further distort competition to the disadvantage of private providers.
According to SRG, two factors contribute to the funding shortfall: CHF 40 million alone is missing because many more people receive supplementary benefits and therefore do not have to pay fees than the authorities assumed and took into account when setting fees in 2003. In addition, inflation has not been compensated for since 2000. The Federal Council could enable the SRG to close its financial gap with revenue measures. The SRG is submitting several proposals to the Federal Council in this regard. These include legal requirements for generating additional commercial revenue, for example through advertising and sponsorship as well as in the online sector. The SRG is also proposing that the national government increase federal contributions for services abroad. This concerns the Swissinfo online platform as well as 3SAT and TV5.
If revenues cannot be increased, expenditure will have to be reduced further, SRG continues. However, with the savings and efficiency programs introduced since 2004 and currently underway, the limit has been reached where this can be achieved without compromising the range of programming. SRG will, however, only as a last resort abandon programs that are important and popular in terms of supply strategy. A reduction in services is ultimately the responsibility of the Federal Council, as only it can cancel licensed programs.
Goal-oriented and careful
In its 2006 report, the Swiss Federal Audit Office (SFAO) recognized that SRG was using the resources made available to it in a goal-oriented and careful manner within the given structures. In the meantime, thanks to the structural reform, SRG had set the course towards convergence and a nationwide optimization of support functions. This could significantly increase the efficiency of the overall organization in the medium term.
The equivalent public service offering in the four language regions generates costs amounting to 42% of SRG SSR's total expenditure. These costs are mission-related and can be attributed to the demographic and cultural characteristics of Switzerland.
A threat to program quality and jobs
The Swiss Syndicate of Media Professionals (SSM) considers the fact that there is a massive lack of funds for the normal continuation of current program services to be a threat to program quality and jobs. The savings potential has already been completely exhausted in recent years. The Federal Council responsible must now come clean on the issue of an increase in funding, the SSM announced on Friday. However, there are also interesting financing options without having to significantly increase fees.
The media consumer organization Arbus believes that increasing revenue through more advertising is wrong. If the SRG demands further legal requirements to generate revenue, it is embarking on an incomprehensible path, Arbus stated.
Media freedom campaign against fee increase
In the current economic situation, the Campaign for Media Freedom considers it inappropriate for consumers to have to cope with a further increase in fees after 2007. It sees the solution in additional increases in efficiency, which are also unavoidable for private media providers due to the massive drop in income caused by the economic environment. "In the current advertising crisis in particular, further advertising opportunities will lead to private providers being put at a further disadvantage and therefore increasingly experiencing economic difficulties," the association said in a press release. This would further distort competition to the disadvantage of private providers.
