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The Media in Europe 3103-Prelims.qxd 11/13/03 3:23 PM Page ii 3103-Prelims.qxd 11/13/03 3:23 PM Page iii

The Media

Third Edition Third in Europe

The Euromedia Research Group

Edited by

Mary Kelly Gianpietro Mazzoleni Denis McQuail

SAGE Publications London  Thousand Oaks  New Delhi 3103-Prelims.qxd 11/13/03 3:23 PM Page iv

© The Euromedia Research Group 2004

First published 2004

Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act, 1988, this publication may be reproduced, stored or transmitted in any form, or by any means, only with the prior permis- sion in writing of the publishers, or in the case of repro- graphic reproduction, in accordance with the terms of licences issued by the Copyright Licensing Agency. Inquiries concerning reproduction outside those terms should be sent to the publishers.

SAGE Publications Ltd 6 Bonhill Street London EC2A 4PU

SAGE Publications Inc. 2455 Teller Road Thousand Oaks, California 91320

SAGE Publications India Pvt Ltd B-42, Panchsheel Enclave Post Box 4109 New Delhi 100 017

British Library Cataloguing in Publication data

A catalogue record for this book is available from the British Library

ISBN 0 7619 4131 2 ISBN 0 7619 4132 0 (pbk)

Library of Congress Control Number: 2003101546

Typeset by C&M Digitals (P) Ltd., Chennai, India Printed in Great Britain by The Cromwell Press Ltd, Trowbridge, Wiltshire 3103-Prelims.qxd 11/13/03 3:23 PM Page v

Contents

Notes on contributors vi Acknowledgements viii How to use this book ix Introduction Denis McQuail 1 1 Austria Josef Trappel 4 2 Belgium Els De Bens 16 ∨ 3 The Czech Republic Jan Culík 31 4 Denmark Frands Mortensen 43 5 Finland Marina Österlund-Karinkanta 54 6 France Jean-Marie Charon 65 7 Germany Hans J. Kleinsteuber 78 8 Greece Stylianos Papathanossopoulos 91 9 Hungary Bálazs Kiss 103 10 Ireland Wolfgang Truetzschler 115 11 Italy Gianpietro Mazzoleni 126 12 Luxembourg Mario Hirsch 139 13 The Netherlands Kees Brants 145 14 Norway Helge Østbye 157 15 Poland Karol Jakubowicz 169 16 Portugal Manuel Pinto and Helena Sousa 180 17 Russia Elena Vartanova 191 18 Slovakia Andrej Školkay 204 19 Slovenia Vida Zei 214 20 Spain Rosario de Mateo 224 21 Sweden Olof Hultén 236 22 Switzerland Werner A. Meier 248 23 The United Kingdom Jeremy Tunstall 261 3103-Prelims.qxd 11/13/03 3:23 PM Page vi

Notes on contributors

Els De Bens is Professor in the Department of Communication Science, University of Ghent, Belgium.

Kees Brants is Director of the M.A. in European Communication Studies at the University of Amsterdam and holds a Special Chair in Political Communication at the University of Leiden, the Netherlands.

Jean-Marie Charon is a sociologist and media specialist at the Centre national de la

recherche scientifique (CNRS) and teaches at the Institut d’étude politique de Reunes. ˆ

Jan Culík, Ph.D., is Lecturer in Czech studies at the University of Glasgow and editor of the Internet cultural and political daily Britské.

Mario Hirsch is a journalist, teacher and researcher on economic and policy aspects of the mass media, Luxembourg.

Olof Hultén is Head of Strategic Analysis, Corporate Development, Sveriges Television, Stockholm, Sweden.

Karol Jakubowicz, Ph.D., works for the National Broadcasting Council, Poland’s regulatory authority.

Mary Kelly is Lecturer in the Department of Sociology, University College, .

Bálazs Kiss is Deputy Director of the Institute of Political Science of the Hungarian Academy of Sciences.

Hans Kleinsteuber is professor at the Institute of Political Science, University of Hamburg, Germany.

Denis McQuil is professor emeritus at the School of Communication Research, University of Amsterdam, and visiting professor at the University of Southampton, United Kingdom.

Rosario de Mateo is professor in the faculty of Communication Sciences at the Autonomous University of Barcelona, Spain.

Gianpietro Mazzoleni is Professor of the Sociology of Mass Communication and Political Communication, University of Milan, Italy.

Werner A. Meier is a media consultant and lecturer in the Department of Mass Communi- cation, University of Zurich, Switzerland. 3103-Prelims.qxd 11/13/03 3:23 PM Page vii

NOTES ON CONTRIBUTORS

Frands Mortensen is Professor of Media Studies in the Department of Information and Media Studies, University of Arhus, Denmark.

Helge Østbye is Professor of Mass Communication at the University of Bergen, Norway.

Marina Österlund-Karinkanta is Senior Media Analyst at the European Union and Media Unit of the Finnish Broadcasting Company (YLE), Helsinki, Finland.

Stylianos Papathanassopoulos is Associate Professor of Media Organization and Policy in the Department of Communication and Media Studies, National University of Athens, Greece.

Manuel Pinto teaches in the Department of Communication Science, University of Minho, Portugal.

Andrej Školkay is lecturer in the Faculty of Mass Communication at the University of SS Cyril and Methodius in Trnava, Slovakia.

Helena Sousa teaches in the Department of Communication Science, University of Minho, Portugal.

Josef Trappel is head of media and communication research with Prognos, European Centre for Economic Research and Strategy Consulting, Basel, Switzerland.

Wolfgang Truetzschler is Senior Lecturer in Communication at the Dublin Institute of Technology, Ireland.

Jeremy Tunstall is Research Professor of Sociology, City University, London, United Kingdom.

Elena Vartanova teaches in the Faculty of Journalism at Moscow State University, Russia.

Vida Zei teaches communication studies at the University of lowa and the University of Ljubljana, Slovenia.

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Acknowledgements

The Euromedia Research Group, primarily responsible for this book, belongs to a network of European reseachers that began life in 1982 as a workshop on media policy, convened by Dr Karen Siune of Arhus University, within the framework of the European Consortium for Political Research (ECPR). Since then it has continued on its own initiative, changing in membership over time, but with the same working methods and purposes. It aims to collect and exchange information and to develop and apply frameworks that help to describe and analyse developments in media structure and policy in the European region. The core activity of the group has been to meet regularly in each others’ countries and to produce a sequence of books. One series (as in this case) is essentially informative, another analytical and devoted to the current media issues of the day. The most recent title in the latter series is Media Policy: Convergence, Concentration, Commercialisation. In the present case, the work of group members has been supplemented by a set of contributions from new colleagues and we are extremely grateful for this generous collaboration. We thank our very helpful publishers for encourage- ment and practical help and as editors we thank each other for our hard work and good co-operation in bringing disparate elements together successfully in the last few months.

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How to use this book

This book provides an accessible and informative account of European media systems.

Each chapter dealing with a single country follows the same structure and covers the same topics so that the reader should be able to find relevant information quickly and also make comparisons between countries on particular issues without difficulty. In place of an Index, we provide in advance a list of the section headings to be found in each chapter, as follows:

NATIONAL PROFILE

History, Structure and Ownership of the Media

Print media: – The newspaper press – The magazine press – Book publishing

Electronic (audio-visual) media – Television – Radia – Film and video

Internal and related on-line media

Politics, Policy, Law and Regulation

Statistics

References 3103-Prelims.qxd 11/13/03 3:23 PM Page x 3103-Intro.qxd 11/13/03 12:25 PM Page 1

Introduction

DENIS MC QUAIL

THE BOOK developments; major policy issues and initiatives. The Euromedia Group began as a This is the fourth version of a handbook of network for the study of media policy and European media systems produced by the media politics, with particular reference to Euromedia Research Group. It began in 1986 changes caused by computerization, satel- (as Electronic Media Policy in Europe, Berlin, lites and economic changes in the 1980s. As Campus Verlag) and has since been pub- a result, the descriptions offered are lished in two editions by Sage (1992 and informed by a deep understanding of the 1997). On each occasion there has been underlying social and political forces at extensive revision and updating and also a work, and are not simply compilations of development of purpose. In the second facts. Each chapter is also a chapter in the edition, our scope was enlarged to cover the overall story of the national society con- newspaper press as well as broadcasting and cerned, told by an expert observer. In addi- electronic media. For this new version we tion to description and analysis, a set of have enlarged the scope yet further to deal basic statistics about the media system of with all forms of a mass media, including the each country is appended, plus sources for Internet. We have also, acccordingly, devised further reading. The statistics are taken for a new common structure for each ‘national the most part from secondary sources and chapter’. Most importantly, this is no longer are intended to support and illustrate the a book about ‘Western Europe’ (as in the preceding analysis rather than to be used as title of the second edition), since we include primary sources in themselves for cross- chapters about Central and Eastern European national comparison. countries, including Russia. Unfortunately, limitations of space (and even some uncer- tainties about what constitutes ‘Europe’) THE EUROPEAN CONTEXT have prevented us from representing the whole European region, but we cover 85 per This book will be used for reference and is cent of its inhabitants, leaving Russia and unlikely to be read as a whole, but anyone the Ukraine aside. This enlargement has who does read it all, as the editors have reflected the significant changes of the done, is bound to be struck by the paradox 1990s and also enriched the content for of unity and dissimilarity of this set of those who might use the book for compara- national ‘stories’. On the one hand, it sup- tive study of media systems. ports the view that European media have The main aims of the book are to provide much in common with each other and are clear and informative accounts about quite distinct from those of the United the media system of each country, with States, Japan, Latin America, China, etc. A reference to: media structure and audiences; reading of the accounts from former com- ownership; new economic and technological munist countries also leaves the impression 3103-Intro.qxd 11/13/03 12:25 PM Page 2

INTRODUTION

that these countries have rapidly rejoined another and others where the media keep the mainstream of European cultural and more of a distance or devote themselves to social traditions. On the other hand, the non-political activities. Fifthly, there are still more one learns about each country the more quite a few differences in the manner of dis- different each story appears. For the most tribution of electronic media, which change part, the homogeneity stems from economic very slowly for reasons not easy to account and technological and political factors that for. This mainly concerns the varying rates at are inevitably of much the same kind across which cable television and satellite television a relatively small continent. The differences have made inroads into terrestrial broadcast- stem more from social, cultural and geo- ing. Finally we can note that the phenome- graphical factors. An intertwined history of non of a ‘digital divide’ shows up very clearly the nations concerned makes a contribution in unequal rates of access and use, only to both similarity and difference. partly explicable in economic terms. Some of the more common features of the different systems include the: shared basic principles of law, human rights and demo- THE MAIN ISSUES cracy that have gradually been established since World War II; the existence of a mixed The different national cases reflect in differ- public and private broadcasting system in all ent ways the response to a number of unre- countries; a tradition that permits (even if it solved issues facing different media in discourages) some intervention in the media different ways. At the most general level, on grounds of public interest; competitive four or five issues dominate the European party political systems that still give shape media scene and have done so for some to the outlook of the media and to their time. One of these relates to the long strug- opinion-forming role; the role played by gle for and against the deregulation and institutions of the European Union and the ‘commercialization’ of the electronic media Council of Europe in regulating for access, in particular. For obvious reasons, this diversity, harmonization of regulation and affected the former communist countries the pursuit of some cultural goals; the simi- most intensively in the last few years, but it lar forces that everywhere make for linguistic was already being experienced elsewhere. In and cultural identification, even if they then most countries a new order has gradually make for differentiation. emerged, without any public monopoly and There are some evident dimensions of with steadily increasing scope for commer- difference, with varying origins. One such is cial enterprise and private ownership. In the variable grip of the mass newspaper on some respects this might now seem to be an public attention and even of newspaper ‘end-game’ in which a cornered public reading in general, some countries being avid broadcast sector fights a rearguard action readers, others not. A similar but not clearly against ultimate marginalization or worse. related variable is the relative appeal of tele- There is certainly a struggle over the alleged vision and other audio-visual media, as mea- privileges and uncertain role of public sured by time spent. Another difference is service broadcasting but it is premature to the obvious one of size, with certain coun- forecast the conclusion. tries having a population or language hege- The second main issue has to do with the mony and many small countries struggling development and application of new tech- somewhat with the consequences of this nologies that, over the course of the last two and the difficulties of viability and self- decades, have upset the reigning regulatory sufficiency in a global media environment. arrangements and ignited a smouldering con- Thirdly, there are countries where public flict between public and private forces. The broadcasting is still well funded, secure and current phase of instability and uncertainty holding its own and others where it is none from this cause is linked with the digitaliza- of those things. Fourthly there are differ- tion of transmission and reception and ences in the extent to which party politics also the growing role of the Internet in the has a grip on the media in one way or overall media landscape. Thirdly, there is a

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INTRODUCTION

long-running issue over the structure of liberalization of media systems. There has been ownership, affecting all media. There are a reduction of supervisory capacity at the commercial pressures towards long-term national level, without much compensation at increases in the scale of media enterprises, the European level (although there is some involving transnational and cross-media capacity there). There are a number of media developments of ownership. These trends problems that have been diagnosed as increas- are supported to some extent by the ing in the changed circumstances. These European Union, although they challenge include the alleged declining cultural and principles of diversity and openness that are informational standards of media across the also valued at European level. Some coun- board, under the influence of competitive tries have an interest in promoting the pressures, lack of insulation from outside and growth of dominant media firms, while weakening control. The arrival of the Internet others see it as threatening. promotes fears of accentuated ‘old’ problems A fourth issue, with several dimensions, of content harmful to the young and generally has to do with the whole process of undesirable, or new problems in the form of Europeanization or integration at the level of cyber-crime and challenges to intellectual Europe, in terms of media economic activity property relations. Essentially, the overall and policy. There are now a number of inte- media scene is open to characterization as grative elements in place and the idea of entering a state of ‘ungovernability’ or at best considering the wider context of Europe in ‘normlessness’. In practice there is little chance making national policy has long been (or wish) of returning to stricter control, except accepted. The debates about these matters where ‘terrorism’ or crime is at issue (and used to focus on threats to national and developments here offer little comfort). In European cultural identity and integrity many countries there is no practical means to arising from the globalization of media and combat the excesses of the media in respect of the ‘threat’ of American cultural ‘invasion’. privacy, human rights or standards of decency. This is no longer such an active issue, The goal of effective self-regulation is often although in fact not fully resolved. The emphasized but is largely still beyond reach. scope for cultural ‘protectionism’ is still These broad issues are only part of the under threat, although it is no longer open story in each country and many of the to a simple black-and-white formulation of following chapters give fascinating insights options. into local debates and conflicts, especially Finally, there are questions of overall where competition between different media control and accountability that have been is involved and where politics gets involved, raised by the expansion and (commercial) as it inevitably does.

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1: Austria

JOSEF TRAPPEL

NATIONAL PROFILE majority of 42 per cent over the Social Democrats (SPÖ), with 37 per cent, the right-wing nationalist Freedom Party (for- Austria is located in the heart of Europe and merly the National Liberal Party, FPÖ), with is considered one of the ‘bridges’ between 10 per cent, and the Green Party, with 9 per East and West because of its permanently cent. After several months of talks, in March neutral status since independence after the 2003 the ÖVP and the FPÖ formed a coali- World War II. With its small home market of tion government again. In 2000 the same around 8 million inhabitants living in a coalition had provoked a harsh reaction surface area of 84,000 km², Austria is not from EU member states and the inter- one of the powerful economic forces in national diplomatic isolation of Austria for Europe. Its once important role in inter- several months. national diplomacy has declined over the The new government concentrated its years but, still, Austria hosts several depart- efforts on the critical issues of public deficits ments of the United Nations in the and implemented strict cost-cutting initia- International Centre in the capital, Vienna. tives, with severe implications not only for Austria shares borders with Germany, the the media sector. Czech Republic and the Slovak Republic, Hungary, Slovenia, Italy, Switzerland and Liechtenstein. Deriving from the time when Vienna was the capital of the Austro- Hungarian monarchy, there are still some STRUCTURE AND OWNERSHIP language minorities today living mainly in the southern and eastern parts of the Austria’s media landscape is characterized by country, but the large majority share the high concentration, strong national media German language with its northern and conglomerates and growing influence by western neighbours. Austria is an almost international media actors. Since World War entirely Catholic country, with a small but II the print media and electronic media have growing Muslim community in and around developed in a symbiotic relation, with a the capital. strong public service broadcaster on the one Since 1 January 1995 Austria has been a hand and equally strong local press barons full member of the European Union and on the other. The party-affiliated press party to the Schengen agreement. In 2002 declined over the 1980s and 1990s, leaving Austria replaced its former currency, the Austria with just three minor-party news- Schilling, with the euro. papers with diminishing public meaning. In Austria is a parliamentary democracy with contrast, press conglomerates became the a federal constitution. The President is head driving economic forces of the 1990s with of state, with a primarily representative high ambitions in the newly opened area of function. In parliament there are four private radio and television broadcasting. parties, of whom the Social Democrats are the Public service broadcasting responded suc- largest. In the general election of November cessfully with highly popular programming 2002 the People’s Party (ÖVP) gained a relative strategies. 3103-Ch-01.qxd 11/13/03 12:12 PM Page 5

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The print media distribution in Austria (Melischek and Seethaler, 1999: 133). This interlinked con- The newspaper press glomerate expanded its operations to the Austria’s daily newspaper press restarted magazine sector, holding shares in all rele- business after World War II and the full vant weekly magazines. sovereignty of the republic (1955) with just The economic and editorial dominance of thirty five newspapers. The following years the Neue Kronen-Zeitung is to some extent were characterized by the rapid growth of balanced by the regional press. Most of the the ‘boulevard’ press on the one hand and a regional press barons face little or no first round of press concentration on the regional competition in their home market, other. The circulation share of the party providing them with a quasi-monopolistic press declined from 50 per cent (1953) to 20 position. However, the Neue Kronen-Zeitung per cent (1971) (cf. Pürer, 1990) and reached started to run regional editions, successfully a negligible share of 2.5 per cent in 2001. challenging the regional press. This market The former flagships of the Social configuration leaves little room for addi- Democrat Party (Arbeiter-Zeitung) and the tional secondary newspapers. In April 2001 communist party (Volksstimme) were both one such newspaper in Styria (the Neue Zeit) shut down in 1991. The several newspapers had to shut down its presses as a conse- of the Christian Democratic Party were quence of continued losses in the regional dwarfed over the decades, only the Neues readership and advertising market. Just one Volksblatt surviving with a minor circulation. such secondary newspaper each remains in In 2002 three partisan papers still existed. Upper Austria, Salzburg, Vorarlberg and This decline was paralleled by the Carinthia; no such paper exists in Styria or unprecedented and spectacular growth of Tyrol. There is no regional daily newspaper the Neue Kronen-Zeitung. This daily newspa- at all in Lower Austria or in Burgenland. per was founded in 1959, became the market International media investment is less leader in 1971 with a market share of 29 per important in the regional press, although cent and kept growing for thirty years there- the German Axel Springer Verlag (which in after. In 2001 the Neue Kronen-Zeitung repre- Germany publishes among others the Bild- sented some 43 per cent of the overall Zeitung) holds the majority share (65 per cent) circulation of newspapers and is – in relative of the regional daily Tiroler Tageszeitung, terms – considered one of the largest news- published in Innsbruck. papers worldwide. Only in the capital, Vienna, do newspaper Market success as well as internal rivalry owners provide the 1.6 million population have driven the Neue Kronen-Zeitung into with more diversity. Readers can choose structural changes in the late 1980s. In 1988 between six daily local newspapers, with one the then two owners of the highly profitable being state-controlled (Wiener Zeitung). This Neue Kronen-Zeitung decided to dissolve their highly competitive market is divided into a agreement and one of them took over the boulevard segment and a quality segment. shares of the other. The remaining single The monopolistic boulevard segment is owner had to pay for the shares of his dominated by the Neue Kronen-Zeitung, former partner but was not able to find suffi- unchallenged since its rival newspaper cient financial backing in Austria. Täglich Alles had to shut down its printed Eventually, he sold 45 per cent of the com- version in August 2000. Since then, Täglich pany to the German Westdeutsche Allgemeine Alles has been published only as a purely Zeitung (WAZ; 1 January 1988). Six months online newspaper. In March 2002 the Neue later, in June 1988, the WAZ landed its Kronen-Zeitung itself launched the free sheet second coup. It acquired 45 per cent of the U-Express, distributed in Underground (sub- second largest newspaper, the Kurier. way) stations in Vienna. By this step the Subsequently, the two newspapers together management successfully thwarted the formed the powerful company Mediaprint market entry of a competitor from abroad. for joint operations in printing, advertising The quality segment is more competitive, acquisition and distribution. In the follow- with three main and two marginal news- ing years the WAZ increased its stake to papers. The Kurier is the second largest 50 per cent in the Neue Kronen-Zeitung and to newspaper in circulation terms and is part of 49 per cent in the Kurier. In 1996 Mediaprint the WAZ/Mediaprint conglomerate. Even controlled some 54 per cent of all newspaper more quality-oriented, Die Presse competes printing and some 51 per cent of newspaper with Der Standard. The former newspaper

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was controlled for decades by Austrian that unites the competitors under a shared industrialists who first sold the majority of entrepreneurial umbrella. In the 1970s the the shares (51 per cent in 1991) and later news and current affairs magazine Profil was (December 1999) the remaining shares to launched. After several successful years the Styria, the company publishing the largest magazine was acquired by Kurier and inte- daily in southern Austria (Kleine Zeitung) grated into the Mediaprint publishing with strong affiliations to the conservative group. party. In 1992 the start-up company Verlags- In contrast, Der Standard is a 1988- gruppe News founded News as a popular launched liberal newspaper, financed with weekly news, entertainment and lifestyle the initial support of the German Axel magazine. The German Axel Springer Verlag Springer Verlag, which pulled out its 50 per provided some 50 per cent of the funding, cent share in 1995. Since December 1998 the reduced its share later to 25 per cent and German Verlag Sueddeutsche Zeitung controls pulled out completely in 1998. This publica- some 49 per cent of Der Standard. This news- tion complemented Profil on the one hand paper has grown rapidly and reached a cir- and the existing weekly boulevard magazine culation level of some 120,000 copies daily Die ganze Woche, which was launched in (2000), about the same as its rival Die Presse. 1985, on the other. Moreover, two smaller daily quality The overwhelming market success of News newspapers are published in Vienna. The inspired the publishers to launch more Wiener Zeitung is state-owned and has the entertainment-oriented magazines. In 1995 longest tradition of all newspapers in they launched TV media, an exhaustive tele- Austria. The Wirtschaftsblatt was launched vision programme guide, in October 1998 with the assistance of the Swedish Bonnier Format, another news and current affairs group in October 1995, which still holds a magazine to compete with Profil, in 2000 50 per cent stake in this slowly growing E-media, a magazine addressing the Internet newspaper. generation, and in November 2001 Woman, In general, the Austrian market for daily a fashion and lifestyle magazine for women. newspapers has reached an unprecedented This rapid expansion was partly financed by degree of concentration. Of sixty six news- the German Gruner & Jahr Verlag, part of papers that have ever existed since World the Bertelsmann group. Gruner & Jahr War II, fifty three have been shut down replaced the Axel Springer Verlag and took (Steinmaurer, 2002b). Among the remaining over 75 per cent of the Verlagsgruppe News papers, some five are not economically in March 1998. viable. The size of the Neue Kronen-Zeitung With the launch of Format, the with more than 1 million copies daily is out Verlagsgruppe News attacked explicitly the of all economic proportion and leaves very market leader Profil. From the outset all little room for the development of stimulat- actors were aware that the Austrian market ing competition underneath. was too small to support two news maga- zines addressing the same readership. It took The periodical and magazine press less than two years of aggressive marketing The rather limited diversity of the daily before Profil had to capitulate and agree to newspaper press is counteracted by a large far-reaching economic co-operation. Since number of weekly newspapers, magazines September 2000 all magazines of the and other periodicals. All over Austria, Verlagsgruppe News and Profil with its affili- weekly and monthly newspapers reflect ated publications have been united under regional and local events, some of them one editorial umbrella. The Austrian Federal with remarkable economic success. Some Competition Court criticised this merger but 160 such newspapers are periodically finally accepted it on condition that Profil published, with the Niederösterreichische was guaranteed editorial independence for Nachrichten (NÖN) and the Oberösterreichische at least another four years (until 2006). Rundschau (OÖR) being the largest. Both This merger of parts of the Verlagsgruppe publications are weekly newspapers with a News with parts of Mediaprint accelerated strong local bias. further the trend towards print media At the national level, the 1990s experi- ownership concentration in Austria. In enced a fierce competition between news fact, there remain just two groups. The few and general interest magazines, ending with small and medium-size regional newspapers the conclusion of a co-operation agreement are confronted with a highly integrated

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conglomerate comprising not only the first during the 1990s. In particular, larger and and second largest daily newspaper, all rele- economically viable non-fiction publishers vant news and entertainment magazines but were acquired by international players. also the financial power of the German In 1995, Wolter Kluwers took over the Bertelsmann and WAZ groups. Bohmann Verlag and acquired a 40 per cent stake in Manz two years later. Reed Elsevier Book publishing entered the Austrian market in 1998 by The latest survey (2001) counted 1,002 book acquiring the Orac Verlag, a publisher con- publishers in Austria, of which the vast centrating on legal and economic books. In majority are not large enough to employ 2000 the Sueddeutsche Verlag in Munich anyone else but the publisher. More than took over the majority of shares both in the 800 of these publishers have a backlist of Wirtschaftsverlag and in the Wirtschaftsverlag fewer than fifty titles. At the other end Ueberreuter. The conservative government of the scale, only sixteen publishers have announced furthermore its intention to sell more than 500 titles to offer (source: the state-owned but economically successful Buchmarketing, 2001). Österreichischer Bundesverlag and its liter- During the 1970s and 1980s some 3,000 ary publishing companies (among them new titles were released annually by Residenz, Deuticke, Brandstätter) to private – Austrian publishers, a number that possibly foreign – investors. increased during the 1990s to some 5,000 The state supports the publishing industry on average. Compared with the 90,000 titles basically with three measures. First, the VAT published in the German language every rate for books amounts to 10 per cent, half year, Austria contributes a fair share. the regular VAT rate. Second, direct subsidies However, a closer look reveals that the large are granted to publishers. In 2001 some ¤2.9 majority of these newly published books million was made available for this ‘support have little or no market success. Measured for literature’. Third, Austria retained its by the percentage of titles that are reprinted system of fixed book prices. According to at least once, only 10 per cent of all new the respective law that entered into force in books published in Austria are successful. July 2000, publishers are entitled to fix the There are several reasons for this pheno- selling price of every book, and bookshops menon. First, the German-language area have to respect this price for at least twenty appears as a quite homogeneous book four months. A similar legal basis in market, much more so than the newspaper, Germany and Switzerland allows harmo- television or radio markets. German- nized book prices in the entire German- language books are equally available in language area. Germany, Austria and Switzerland, with a strongly unbalanced trade structure. In 1998 The electronic (audio-visual) media Austria exported books to the value of ¤30.6 million to Germany, but imported books for Austria’s broadcasting system is strongly ¤221.6 million, creating a substantial trade dominated by the public service broadcaster, deficit. The much larger German market the ORF (Österreichischer Rundfunk), by attracts young authors, who often leave any measure the largest media company in their Austrian publisher after their success- Austria. Until 1995 the ORF was the only ful first book and choose a German pub- legal broadcasting operator in Austria. lisher thereafter. Second, the small size of Private broadcasters started operations after the Austrian market does not allow for large a long and painful process, repeatedly trou- structures as in Germany. Scheipl concludes bled by legal and administrative pitfalls. that this disadvantage precludes economies By 2002 broadcasting in Austria was of scale and prevents smaller actors from governed by the Federal Constitutional Law being profitable. Smaller publishers are con- to safeguard the Independence of Broad- fronted with much higher distribution costs casting of 1974. The constitutional law defines and therefore lower profits. This mechanism broadcasting as a ‘public service’ to include disadvantages not only Austrian publishers both terrestrial and cable operations and but all publishers in the German language prescribes the passing of legislation which market below a critical sales volume (cf. will guarantee objectivity and impartiality Scheipl, 2002: 113). of coverage, a range of viewpoints and the In general, internationalization characterized independence of the institutions and the book publishing industry in Austria individuals concerned with broadcasting.

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Furthermore, the legislation provides for entertainment genres and just 6 per cent to separate laws for public and private broad- information – ORF-2 is highly successful with casting. The Federal Act on the Austrian local content. In contrast, 64 per cent of the Broadcasting Corporation of 1974, last programming time is devoted to information amended in 2001, enables the ORF to broad- and 35 per cent to entertainment. Between cast public service-oriented programmes 18.00 hrs and 19.30 hrs from Monday to for radio, television and the Internet. The Friday, each regional studio presents local and private sector is regulated by two federal regional news and current affairs pro- laws, one on private radio broadcasters (Act grammes. These programme formats reach on on private radio broadcasting of 1993) and average by far the highest audience, out- one on private television broadcasters (Act pacing even the main news at 19.30 hrs. on private television of 2001). However, these local programming formats Compared with most European countries, are the most expensive programme genres of Austria has introduced a dual system of the ORF. public and private operators with a consid- This programming strategy reflects to erable delay. While Austrian business and some extent the economics of the Austrian policy actors were unable to agree on a suit- public service broadcaster. Advertising and able agenda regarding how to proceed in licence fee revenue contribute about the broadcasting legislation during the 1990s, same amount to the global budget of the level of international competition con- the ORF. In the year 2000, 43 per cent of the fronted the new private broadcasters in total revenue of ¤853 million came from Austria with rather unfavourable economic licence fees and 42 per cent from advertising starting conditions. sales (15 per cent comes from miscellaneous sources, among which the sale of broadcast- Television ing rights is the most important). Given this By 2002 more than 80 per cent of all Austrian balanced revenue mix, programming has to households were either equipped with satel- satisfy the requirements of the advertising lite receivers or linked to a broadband cable industry by attracting the fourteen to forty- network. These households receive around nine age group and at the same time respect forty television channels in the German the public service remit that basically language, one of which is an encrypted pay requires programming to cater for all citizens. channel (Premiere World). Among these forty ORF’s response to this twofold challenge is channels, only two are of Austrian origin, the clear distinction between the entertain- ORF-1 and ORF-2. Private local television pro- ment-oriented concept of ORF-1 and the gramming is available on cable networks public service orientation of ORF-2. only in selected regions of Austria. Both channels are distributed by terrestrial Despite this high number of available tele- means all over Austria as well as via digital vision programmes in the German language, satellite in encrypted format. Reception of the public service broadcaster ORF has man- ORF digital via satellite requires a smart card aged to retain its leading position in the and the proprietory set-top box or D-box, audience ratings. In 2001 the two public which was designed for reception of the television channels reached a combined German digital pay-TV Premiere World. market share of 56 per cent, leaving 43 per Moreover, the ORF contributes programmes cent to foreign competitors. Behind ORF-1 to the German offering of ZDF digital as well (23 per cent) and ORF-2 (32 per cent) followed as BR alpha from the Bavarian public service the German channels RTL (6 per cent), Sat1 broadcaster. and ProSieben (5 per cent each). Even in ORF’s television activities are comple- cable and satellite households ORF held a mented by its participation in the pan- stable 48 per cent of the viewing market European German-language channel 3SAT, between 1996 and 2001 (all data from which is managed by the four public service Teletest 2001). This considerable market broadcasters ARD, ZDF (Germany), SRG SSR success of ORF is best explained as a conse- idée suisse (Switzerland) and the ORF. quence of its programme policy, which is Furthermore, ORF runs together with a oriented towards a mass audience. private partner TW1, a tourism and weather The two channels are well received by the channel distributed free-to-air via digital Austrian audience for different reasons. While satellite. ORF-1 is focused on entertainment – some 58 In early 2002 private television broadcasting per cent of programming time is dedicated to virtually did not exist. The policy quagmire

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following the first law on private radio serving distinct audiences. The local and broadcasting in 1993 delayed the process of regional channel Ö2 has the largest audience establishing a sound legal basis for private and reached an audience market share of television until 2001. Only at the regional some 39 per cent in 2001. Second is the rock level, and then restricted to cable and satel- and pop channel Ö3,which is distributed lite distribution, did some private broad- nationwide, reaching a market share of 38 casters experiment. None of the private per cent. The advertising-free classical music channels thus established any importance in and information oriented channel Ö1 came terms of audience market share (all below third with some 5 per cent of the market and 2 per cent). FM4, a new internationaly oriented channel, However, after finally adopting the Law came last with just 2 per cent. on Private Television in July 2001, the This market success leaves little room for licensing process was completed by February the private sector. Since the early 1980s the 2002 and ATV was selected as operator for Publishers’ Association (Verband österre- the one and only nationwide terrestrial fre- ichischer Zeitungen) intended to develop quency. Operations are expected to start in private radio as a new business field but autumn 2002. ATV Privatfernseh-GmbH is failed to propose a viable legal model to the owned by a mixed consortium of Austrian government. In 1995, finally, the first banks (Bawag, Erste), the pan-European private regional radio channels started oper- holding company SBS, the cable operator ations in Salzburg and Styria, followed by a UPC (which owns Austria’s largest cable net- slew of forty three new channels all over work, in Vienna) and, as largest shareholder, Austria by April 1998. In each of the nine by the German Concorde Media, a Munich- regions (Länder) one regional operator and a based film rights company and television number of local operators were licensed, operator of Tele München, both controlled with the local press publishers running in by Herbert Kloiber. almost all cases the largest radio station. The This first national private television oper- most successful of these channels reached ator is financed entirely by advertising some 15 per cent of the regional market, but revenue, limited only by the European the large majority was unable to survive restrictions as provided in the ‘Television despite a generous allowance of 172 minutes’ without frontiers’ directive. Television advertising per day (since 2001). advertising in Austria, which represented Economic constraints and political pres- some 23 per cent of the whole national sure resulted in a revision of the private adverting market in 2001, is shared not only radio law in 2001, allowing private national between the two channels ORF-1 and ORF-2 radio chains on the one hand and more but also with so called ‘advertising windows’ involvement of press publishers on the used by the major private television chan- other. Consequently, the private radio land- nels originating in Germany and available scape followed the well known Austrian on Austria’s cable networks. By 2002 seven pattern of media concentration. Two groups such ‘advertising windows’ were opera- managed to integrate radio operators at a tional, selling advertising time on channels national level. First, the Antenne group such as RTL, Sat1, ProSieben, RTL-2, etc. operates the leading private radio stations in Technically, German advertising blocks are six Länder. These stations are each partly replaced by Austrian advertising spots owned by the respective regional press mainly during prime time by Austrian cable baron but operate under the same brand operators. The Austrian advertising industry heading. Second, Mediaprint started to build welcomed these additional slots as the up a national chain branded as Krone former monopoly of television advertising Hitradio, referring to the dominant news- held by the ORF vanished. Together these paper Neue Kronen-Zeitung. All these chan- ‘advertising windows’ reached revenue nels broadcast a rather similar mix of adult totalling ¤87 million in 2001. contemporary music formats and some information. Radio Besides these concentrated radio stations, Despite all policy efforts to encourage the a variety of smallish radio stations mainly at development of a strong and vital private the local level complement Austria’s radio radio broadcasting industry in Austria, the landscape. Some of them consider themselves ORF dominated the market in 2002. ORF’s as ‘third sector’, non-commercial and radio division produces four radio channels not-for-profit radio operators.

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Film and video twenty during the 1990s, reaching a peak in Watching movies in cinemas is enjoying 1999 with twenty three movies. Around half increasing popularity in Austria. After a slow of them managed to be released in Austrian but steady loss of interest in cinemagoing cinemas. In 2001 some 2.5 per cent of box- from the late 1950s until the late 1980s, the office receipts were generated by Austrian number of visits has grown strongly since films. The most successful genre of Austrian 1992. That year marked the all-time low, with movies is light entertainment and local just 9.3 million visits. The figure doubled comedy with strong regional affiliations within a decade and in 2001 some 18.9 million and having little prospect of international cinema tickets were sold (source: AKM). cinema release. The resurgence of interest is paralleled by A second category of successful Austrian a fundamental structural change. The first films during the late 1990s was linked with multiplex cinema was opened in 1994 in the Austrian director Michael Haneke, who Vienna and initiated a veritable boom. By co-produced several highly reputed movies, the end of 2001 no fewer than twenty two recognized at the European level (Prize of multiplex cinemas were in operation all the Jury in Cannes, 2001). over Austria, eleven of them located in The small national market and the sober Vienna. Together these cinemas offered 225 export perspectives mean that public funds screens and 49,000 seats (source: Fachverband are needed to keep movie production up der Lichtspieltheater der Wirtschaftskammer and running in Austria. In 2002 the national Österreich). Simultaneously most of the fund of the Österreichisches Film Institut traditional cinemas had to close down. One provided some ¤7.5 million in subsidies for of the last remaining cinema chains owned movies of Austrian origin. Severe cuts in the by Austrian investors (City Cinemas) went federal budget for culture in general have bankrupt in February 2002. diminished this lifeline for Austrian film The growing number of cinema visits drastically since 2000. In 1998 the respective provides growing revenue. In 1999 an amount was almost twice the 2002 level at annual turnover of some ¤100 million was ¤12.9 million. generated by Austrian cinemas, and in 2001 Besides the federal fund, several regional the turnover increased to ¤127 million funds make subsidies available for movie (estimate; source: Fachverband). production with regional affiliations (loca- The structural change triggered by the tion, subject, etc.). The city of Vienna pro- arrival of the multiplex cinemas influenced vided some ¤8 million in 2002, some other the market success of movies launched on Länder such as Tyrol, Lower Austria and the Austrian market. During the 1990s, each Salzburg offered some ¤1 million that year. year some 250 new movies were released in Finally, the ORF committed itself in a Austria, some 120 of which were of US mutual agreement with the Austrian film origin. While this relation is rather stable, industry to invest a minimum of ¤4.5 mil- the market share of US movies increased. In lion annually in Austrian film production. the year 2000 all top ten movies in Austria In turn, the ORF holds the national broad- were of US origin, in 2001 nine out of ten. casting rights after eighteen months of US movies held a box-office market share of cinema release. In fact the ORF is the most 69.8 per cent in 1999 (source: European important source of financing for the Statistical Yearbook 2001). The general trend Austrian film industry as a whole. suggests that a smaller and smaller number The Austrian video market is characterized of movies capture a higher and higher by the replacement of video by digital versa- market share (cf. Ungerböck, 2002: 102). tile disc (DVD). In 2001, some 80 per cent of Austria’s film output employs some 700 to the Austrian households were equipped 1,400 on a regular basis and generates some with a video-cassette recorder (VCR) and ¤135 million per year. Around one-third is 5.8 per cent with a DVD player. Revenue contributed by the production of television from the sale and hire of video-cassettes advertising spots, 10 per cent by the produc- stagnated at the level of some ¤90 million, tion of cinema movies. The remaining while sales of DVD software grew rapidly. In shares come from television production, 1999 some ¤2.7 million was spent, ten times mainly commissioned by the ORF. more than the year before. The number of cinema movies produced In conclusion, film and video in Austria annually in Austria or in co-production with attract a growing audience. Cinema visits other countries varied between ten and have returned as an attractive alternative

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to competing leisure activities. However, It took until April 1998 before a sizeable structural changes favour non-European number of private radio operators started consumption and force Austrian movies business and it took until autumn 2002 for into a small and uneconomic market niche. the first private television operator to launch its programme. While the government was concentrating on the single issue of how to The Internet and related provide a sound legal basis for private broad- on-line media casters, other important and urgent issues escaped the attention of media policy. As in most other European countries, The late 1990s saw another wave of media Internet access developed rapidly during the concentration, first and foremost affecting late 1990s and the beginning of the new the press sector. After the arrival of the large decade. By the end of 2001 some 53 per cent German publisher Westdeutsche Allgemeine of the Austrian population had access to the Zeitung, which took control of the two Internet, and 42 per cent of them had their largest newspapers in the late 1980s, the homes connected. Over just four years, the arrival of the Bertelsmann group in 2000 Internet access rate had quadrupled. linked those dominant daily newspapers Austria’s media realized quickly that the with the dominant magazine publisher at Internet might develop as a fourth medium the business level. No government action along with press, radio and television, and whatsoever has been taken to prevent such during the euphoric years of the ‘new econ- media conglomerates forming. omy’ most of the existing media launched The two ruling parties – one conservative their own Web site. In July 1997, the ORF and one nationalist – took over government launched its own Web portal, ORF ON, which in February 2000 and added another issue to was a separate business unit from the begin- the media policy agenda. The overarching ning, operating from its own location, with goal of budgetary discipline affected all no intrinsic link with ORF’s radio or television media, but the press had to pay the highest programming. Almost immediately, the Web price. First, the press subsidy scheme was site www.orf.at became the most successful drastically cut back. From its peak in 1990, Austrian Web site measured in hits and visits. when some ¤15 million was spent as a ‘spe- The latest revision of the television legis- cific subsidy for the diversity of the press’, lation in 2001 ruled for the first time on the the scheme was reduced to less than ¤7 mil- activities of the ORF on the Internet. Against lion in 2001. Until early 2002 no support the former status of unregulated comple- model to replace the old subsidy regime had mentary activity, the new law restricts been adopted, leaving the majority of Internet activities by the ORF to ‘programme Austrian newspapers in an unclear position. related’ services. Indeed, one of them had to shut down its Even before the ORF’s Web initiative, the presses (Neue Zeit). daily newspaper Der Standard developed a Second, the government decided without distinct Web site, with the newspaper con- prior notice to suspend its financial support tent being just one element among a number for postal delivery of newspapers in 2001, of different special interest channels. with severe consequences for smaller news- Subsequently, all major publishers launched papers without access to any other home Web sites with a clear reference to the respec- delivery service. Following loud protests tive print media, like www.krone.at or by publishers the government eventually www.news.at. No successful Web-only media agreed a more appropriate step-by-step have been founded so far. However, one approach. daily newspaper, Täglich Alles, shut down its Reforms in the broadcasting sector yielded presses in August 2000 but the Internet mixed results. The first private radio law was edition survived as a Web-only offering. passed in 1993 and enabled the licensing of one radio broadcaster in each of the Austrian Länder (two in Vienna) to transmit POLITICS, POLICY, LAW radio programmes to a regional audience. The law distinguished between regional and AND REGULATION local radio, the difference being that regional radio had the right to cover the Austria’s media policy does not have a entirety of a Land, while local stations were strong track record of effective intervention. restricted to their local transmission area.

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The legal quagmire began when unsuccessful wide frequency to be used by one private contenders questioned the legality of the television operator. Remaining television Regional Radio Law and the Austrian frequencies are either used for local tele- Constitutional Court upheld their com- vision or reserved for digital multiplexes plaint in 1995. It took another two years to that were intended to start operations in adopt a new radio law which finally enabled 2003. While the substance of the law was more than forty private radio operators to not disputed, many observers questioned start operations in April 1998. whether the remaining national frequency In parallel, a new administrative structure should be granted to an analogue private to govern the new private broadcasting television channel with mediocre economic sector was prepared (KommAustria). The new prospects or be used rather to enhance government accelerated the process consid- digitalization, offering up to six competing erably and prepared in addition a private channels to be distributed all over Austria by television Bill. In 2001, finally, KommAustria one multiplex. The government finally opted was launched as an administrative body to for the analogue channel, with little concern grant licences and frequencies to private for the economic viability of the suggested radio and television operators. Furthermore, business plan. In February 2002 the national the Law on Private Television passed parlia- licence was granted to ATV, which aimed to ment together with a renewed law on the start operations in autumn 2002. public service broadcaster ORF. The law does not restrict private television The Austrian Communications Authority further than the provisions of the EU direc- KommAustria operates as administrative tive ‘Television without Frontiers’. There are office for radio and television under the no obligations as to content or the schedule. control of the Federal Chancellor (Prime As regards ownership, the same rules apply Minister). The intended legal independence as to private radio operators, excluding had not been achieved. Equally KommAustria those media owners who control more than administers the telecommunication sector 30 per cent of their own market. under the supervision of the respective The guiding policy outcome regarding Minister and enables this body to profit public service broadcasting is to retain the from administrative synergies. However, ORF as a strong national broadcaster with a KommAustria has no competence in the clearly defined public service remit. During press, film and book sectors. the public debate preceding the Public In 2001 parliament put an end to the Service Broadcasting Law’s revision, the frequent revision of the Regional Radio Law question was raised whether the entire ORF and adopted a new Law on Private Radio, or at least one of the two channels should be replacing the former law. Whereas the for- transferred to private ownership. The audi- mer law took cognisance of the high level of ence success of the ORF and the strong resis- media concentration in Austria and tance by its management finally prevented restricted press publishers and other media the government from splitting the ORF into owners to a maximum holding of 26 per pieces. As a result, the ORF was transformed cent of the shares in any private radio oper- into a public foundation, the former board ator, the new law lifted this restriction of trustees was renamed the Foundation together with the strict regionalization. As of Council (thirty five members) and the former 2001, media owners may acquire up to 100 General Superintendent became the Director per cent of the shares of a private radio oper- General. ator, as long as they hold less than 30 per The public service remit is described in cent of their own regional or national much detail, but none of the principles is market. Moreover, private radio channels clearly operational. For example, the law stip- may combine their transmission area to ulates that ‘the well balanced total programme establish a nationwide radio chain. These must contain an equivalent proportion of amendments enhance further cross-media sophisticated substantive elements. The ownership, resulting in a strong economic annual and monthly programme schedules of and entrepreneurial interest by the press in television must be designed in such a way private radio. None of the leading private that, as a rule, there is a choice of high-quality radio stations is fully independent of programmes at prime time’ (Broadcasting Law publishing companies. 2001, para. 4, art. 3). Such open wording is The law on Private Television, adopted in unlikely to have much impact on the ORF’s July 2001, provides for one terrestrial nation attitude to programming.

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Another intention of the government was the interest of the public in voting was to limit the influence of political parties and disappointing. Less than 10 per cent of the politicians on the ORF. The law therefore pro- electorate participated in the election. hibits any politician at the national, regional Austria’s media policy has been strongly or local level from becoming a member of the focused on the attempt to encourage private Foundation Council. Nonetheless, the modality broadcasting despite media trends that sug- of seconding these non-politicians remained gest the importance of concentrating on the the same as under the old law. Consequently, development of such issues as digitalization so-called ‘independent experts’, nominated and its various implications for the entire by the political parties, became council media system. Nor did the anachronistic members. The first major act of the council attempt to implement a dual system of was the election of the new Director General analogue public and private broadcasters take in December 2001, and the political bargain- the specificities of a small state, sharing a ing between ‘experts’ was no different from language with a giant neighbour at the edge that between ‘politicians’ before. of the digital media revolution, sufficiently The third innovation concerned the into account. The new Austrian government Audience Council, an institution with had a fair chance to redefine media policy as limited powers to advise on programming an enabling support to promote new media issues. Six out of the thirty five members genres and innovative digital media services. were elected by fax and by the ORF’s audi- The option chosen by the government is ence. Every licence fee payer was entitled to likely to enhance the virulent tendency to vote for the candidates. Because of the media concentration and does not offer an limited relevance of the Audience Council, innovative way forward.

STATISTICS

National population, 2001 8,075,000 Number of households, 2001 3,234,000 Movie admissions (ticket sales) 18,980,000 Books published, 2001 (titles) approx. 5,000

Print media Circulation of daily newspapers, 2000 Neue Kronen-Zeitung 1,133,000 Kurier 307,000 Kleine Zeitung 294,000 Oberösterreichische Nachrichten 127,000 Die Presse 123,000 Der Standard 119,000 Tiroler Tageszeitung 118,000 Salzburger Nachrichten 105,000 Vorarlberger Nachrichten 73,000 Wirtschaftsblatt 59,000

Broadcast Audience share of television channels originating in Austria, 2001 (% all television households) media Public service ORF-1 23 ORF-2 32

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Private television broadcasters 1 Foreign channels 43

Audience share of main radio channels, 2001 (%) Public service OE-1 5 OE-2 39 OE-3 38 FM-4 2 All public service radio channels (ORF) 85 Private Antenne radio Private 5 Krone Hit Radio Private 3 All private radio channels 15

Percentage of households with: Satellite (2000) 45.1 Cable (2001) 39.5 Terrestrial pay-television n.a. Video-cassette recorder (2001) 78.2 Satellite receiver (2000) 45.1 DVD player (2000) 1.8

Electronic Percentage of households with: media Digital television reception 4 Internet access (2001) 42 Personal computer (2001) 61 Mobile phone ownership (2001) 78.2

¤ million % Advertising Newspapers (daily) 571,200,000 28.3 spend, 2001 Magazines (including weekly newspapers) 547,000,000 27.1 Television 464,200,000 23.0 Radio 163,500,000 8.1 Other (including cinema, outdoor, etc.) 272,500,000 13.5 Total 2,018.4 100

Ownership Main media companies, 2000: turnover (¤ million) ORF 853.5 Mediaprint n.a. Styria (estimated) 300 Salzburger Nachrichten n.a. Vorarlberger Nachrichten n.a. News Verlag n.a. Kurier n.a.

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REFERENCES ORF (2001) Der ORF im Wettbewerb. Daten, Fakten and Zusammenhange zur Finanzierung des ORF. Vienna: ORF. Böck, Margit (1998) Leseförderung als Panzer, Fritz Scheipl and Elfriede, (2001) Kommunikationspolitik. Zum Mediennutzungs- Buchverlage in Österreich. Marktteilnehmer – und Leseverhalten sowie zur Situation der Buchproduktion – Umfeldbedingungen. Vienna: Bibliotheken in Österreich. Vienna: Österreichis- Buchkultur. cher Kunst-und Kulturverlag. Purer, Heinz (1990) Presse in Österreich. Vienna. Fabris, Hans-Heinz Luge and Kurt (1986) ‘Austria’, Scheipl, Elfriede (2002) ‘Buchverlage im in Hans J. Kleinsteuber, Denis McQuail and Umbruch’ in Thomas Steinmaurer (ed.) Karen Siune (eds) Electronic Media and Politics in Konzentriert und Verflochten. Innsbruck and Western Europe. Euromedia Research Group Munich: Bozen. Handbook of National Systems. Frankfurt and Steinmaurer, Thomas (2002a) ‘Das Mediensystem New York: Campus. Österreichs’ in Hans-Bredow-Institut (ed.) Institut für Publizistik and Kommunikations- Internationales Medienhandbuch 2002–2003. wissenschaft der Universität Salzburg, eds (1977) Baden-Baden: Nomos. Massenmedien in Österreich – Medienbericht II. Steinmaurer, Thomas (2002b) Konzentriert and ver- Vienna: Internationale Publikationen/Buchkultur. flochten. Österreichs Mediensystem im Uberblick. Institut für Publizistik and Kommunikations- Innsbruck, Vienna and Munich: Bozen. wissenschaft der Universität Salzburg eds (1983) Trappel, Josef (1992) ‘Austria’, in Bernt Stubbe Massenmedien in Österreich – Medienbericht II. Ostergaard (ed.) The Media in Western Europe: the Vienna: Internationale Publikationen/Buchkultur. Euromedia Handbook. London: Sage. Institut für Publizistik and Kommunikations- Trappel, Josef (1996) ‘Austria’, in Bernt Stubbe wissenschaft der Universität Salzburg eds (1986) Ostergaard (ed.) The Media in Western Europe: the Massenmedien in Österreich – Medienbericht III. Euromedia Handbook. London: Sage. Vienna: Internationale Publikationen/Buchkultur. Trappel, Josef (2001) Fernsehmarkt Österreich. Institut für Publizistik and Kommunikations- Prognos-Bericht. Basel: Prognos. wissenschaft der Universität Salzburg eds (1993) Ungerböck, Andreas (2002) ‘Film und Kino. Eine Massenmedien in Österreich – Medienbericht IV. Nahaufnahme’ in Thomas Steinmaurer, (ed.) Vienna: Internationale Publikationen/Buchkultur. Konzentriert and verflochten. Innsbruck and Melischek, Gabriele and Seethaler Josef, eds Munich: Bozen. (1999) (eds) Die Wiener Tageszeitungen. Eine Dokumentation. V, 19945–1955. Frankfurt am Main: Lang.

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2: Belgium

ELS DE BENS

NATIONAL PROFILE Dassault/Agusta (politial and administrative corruption), Dutroux (paedophile rings), and the poisoning of the food chain Belgium became a unitary state as recently through the leakage of dioxin in animal as 1830. After a feudal period the territory feed. Consequently, it is usually the sensa- that is now Belgium was part of the tional reports about Belgium that attract Burgundian empire in the late Middle Ages. attention abroad. At the close of the fifteenth century it came For 500 years of its history Belgium under the rule of the Spanish line of the formed part of some foreign state and the Hapsburgs, and subsequently, from 1713 country is divided culturally and politically onwards, under that of the Austrian House by the differences between Flemings and of Hapsburg. From 1794 till the fall of Walloons. This may explain the apparent Napoleon Belgium was part of France. When lack of a strong sense of nationality. the Congress of Vienna redrew the map The dissension between Flemings and of Europe in 1815 it made Belgium a part Walloons has had a decisive impact on political of the Kingdom of the Netherlands. This life. In the newly independent Belgium, lasted no longer than fifteen years until, French was the only official language. following a brief revolution, Belgium gained However, under the impulse of the Flemish its independence. Movement, the Flemings gradually acquired Belgium is geographically very small equal rights. This Flemish emancipatory move- (30,528 km2), but densely populated with ment often caused forceful conflicts, but the some 10 million inhabitants (336.3 inhabi- gradual formation of a federal state, in which tants per square kilometre). It has no fewer Flemings and Walloons enjoy equal rights, has than three officially recognized languages: come about through parliamentary action, in Dutch (58 per cent of the population), a democratic way, and without bloodshed. French (31 per cent) and German (11 per cent). Through a number of constitutional About 1 million inhabitants are foreign: not reforms Belgium has been evolving towards only immigrants from the Maghreb coun- a federal state. This has led to the devolution tries, Turkey and Eastern Europe, but also a of power from the central government to large number of Europeans and Americans the various regional governments. As a who are employed by the European Union, result Belgium today has an extremely com- NATO, and a wide range of multinationals plicated state structure, with a multitude of and international organizations that have institutions, and a ubiquitous bureaucracy. their administrative headquarters in Belgium has a multi-party system, but as Brussels. Over 1,000 journalists are accred- there are no clear majority parties, govern- ited and work in Belgium; their strong pres- ments are formed by painfully drawn-out ence is the natural consequence of the coalition building. Until recently the major role Brussels plays as the centre of EU strongest positions were occupied by the policy making. These numerous foreign Christelijke Volkspartij (Christian People’s journalists, however, report very little to Party) in Flanders and by the Socialist Party their home base about Belgium itself, except in Wallonia. The rise of the Green parties, for juicy scandals, such as those around the progress of the liberal party, and the 3103-Ch-02.qxd 11/13/03 12:13 PM Page 17

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emergence of a party of the extreme right in are still being published today were founded Flanders (10 per cent in the national parlia- during the late nineteenth-century news- ment and 15.5 per cent in the Flemish paper boom which was the consequence of a parliament) have affected the traditional multitude of factors: the abolition of the balance of political power. stamp duty (1848), the large-scale use of Officially, Catholicism remains the major advertising as a source of revenue, the intro- religion (75 per cent of the population), duction of new technologies that lowered although fewer and fewer people attend production costs and allowed faster compos- religious services. Today Belgium’s Catholic ing and printing, growing urbanization, and character is still reflected in the daily the extension of the suffrage, which bols- press, which remains close to the Catholic tered political emancipation and stimulated socio-political group (or ‘pillar’) and its interest in a political opinion press. institutions. World War I did not really hold back the Belgium is a highly industrialized country further development of a flourishing newspa- with a high standard of living and a well per press. Indeed, after the war all newspapers developed welfare system. In 2002, 7 per cent resumed publication. In the inter-war period of the economically active population were the first tabloids appeared, alongside the unemployed. The population is ageing political opinion newspapers. The Flemish (20 per cent over sixty five years old), there press, which lagged far behind the French- are many families with no children, the speaking press in number of titles and circula- number of single-person households is on tion figures, expanded fast during that period. the increase, and the working population is The aftermath of World War II brought no more than 36 per cent of all Belgians. more of a break, or hiatus: the newspapers Belgium is also a country of political scan- that had appeared during the war were dals and sleaze. Pervasive politicization and banned from publication, and some news- the far-reaching system of political favours papers that had been inactive during the have greatly inhibited dynamic, creative war failed to resume publication. The news- socio-political development. In recent years paper press began to be characterized by there has been an accumulation of scandals growing concentration. that have forced several Ministers to resign. Belgium used to possess an outspoken Journalists have been involved in the hype political opinion press. Only the Rossel round these scandals and have often been group published so-called ‘neutral’ dailies in accused by the politicians and the magis- the French-speaking part of the country. trates of indulging in muckraking rather Today most newspapers lean towards one of than practising investigative journalism. the large political groups, but without any The upshot of this contention has been a financial implications. The socialist papers review of the codes of journalism and the that were once strongly financially linked founding of a Council of Journalism. with the socialist party relinquished that connection in the 1980s. The ongoing concentration in the news- STRUCTURE AND OWNERSHIP paper industry has acted as an impetus to the removal of all affiliations between the news- papers and more or less circumscribed reli- The print media gious, social or political groups (the so-called ‘pillars’). Journalists can therefore express The newspaper press themselves much more independently and At the founding of Belgium its constitution critically about politicians, but the question guaranteed complete freedom of the press. is whether they have come under pressure This meant that the country enjoyed one of from the financial and business interests of the most liberal press regimes in Europe at the their newspaper group’s owners. time. As a result, a large number of foreign The debate is still open as to whether the journalists who were persecuted in their native newspapers are yielding to tabloidization as country came to Belgium. They contributed to a consequence of the cut-throat competition a flourishing migrants’ press, but they also left for readers and advertisers. The results of their mark on Belgian journalism. available empirical research into this issue In the newly created Belgian state the politi- are often contradictory, but they do indicate cal opinion press was foremost in the news- a trend towards tabloidization: less political paper industry. Most of the newspapers that news, more personal political stories, less

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international news, more human interest players that have entered the field in recent articles, more story-telling, less investigative years (commercial television and radio, new journalism, more service journalism, etc. weekly magazines, a free newspaper, etc.) all Genuine editorials have disappeared from depend largely on advertising. In the fierce most dailies, and the front pages contain battle for advertising the newspaper industry more sensational news. has been losing ground: while in 1988 news- Belgium still has a number of quality papers received 24 per cent of all media adver- dailies, such as De Standaard, De Financieel tising, by 2000 the figure had dropped to 15.7 Economische Tijd (FET), De Morgen, Le Soir per cent. During the economic boom of 1999 and La Libre Belgique, but even these have and 2000 the absolute figures of advertising been tempted by sensational reporting, revenue still rose, but the recession in 2001 mainly on the occasion of the scandals that caused the available advertising capital to constantly emerge. shrink drastically, to decrease the amount of Since 1958 the overall circulation figures classified advertising (mainly job ads), which, of the newspaper press have not suffered together with brand advertising, forms a any drastic (i.e. over 40 per cent) fluctua- major source of revenue for newspapers. tions, but they have been declining steadily, Belgium used to be among those European from 2,597,815 in 1958 to 1,917,152 in countries (including the United Kingdom, 2002. In 2002 the Flemish press accounted Germany, the Netherlands, the Scandinavian for 63.9 per cent, the French-language press countries) in which the newspaper and peri- for 36 per cent of total newspaper sales. odical press enjoyed more advertising The public has no tradition of taking out income than any of the other media. Since subscriptions to their newspapers. Only 1998, however, television has been receiving recently have the publishers’ more aggres- the larger part: 42.8 per cent, versus 36.6 per sive marketing strategies succeeded in rais- cent for the printed media. ing the number of subscribers: in 2002 sales Since the 1950s mergers have drastically at the newsagent’s accounted for 57.7 per reduced the number of newspaper titles. No cent and subscriptions for 42.5 per cent. fewer than twenty seven dailies disappeared Belgians are no great readers of newspapers: between 1950 and 2002. At the same time, 150 per 1,000 inhabitants (the Netherlands the oligopolistic market structure made it 310, Norway 600, Sweden and Finland 450), impossible to launch new titles. Indeed, but they do read more newspapers compared since World War II all new ventures in the with most Southern European countries (Italy sector have failed. 100, Greece 90 and Portugal 38). Market It is often said that the intensive mergers research shows that mainly young, adult, have weakened the plurality and the diver- urbanized, single men fail to read newspapers, sity of the press. This has been undeniably while young people in general appear to so when, as a result of the merger, editorial spend little time on newspapers. autonomy is entirely lost. However, when To increase circulation figures all publishers the merged newspaper succeeds in keeping have tried hard to make their papers more its own ideological line and editorial auto- attractive. On the basis of extensive readership nomy, and when the merger makes more research, they have attempted to meet the financial resources available for the editorial needs of a changing reading culture. All dailies output, the process of concentration can be have had their layout altered in the last five regarded as less negative. The Belgian news- years. Their new look now includes various paper industry offers examples both of columns and sections, inserts and supple- ‘negative’ and of ‘positive’ concentration. ments. Some dailies have increased their sales Leaving aside De Financieel Economische Tijd figures by going for tabloidization. Most news- and L’Echo, the two financial-economic papers, however, suffer from declining circula- dailies, as well as Grenz Echo, the small tion figures, while production costs continue regional German-language newspaper, the to rise. High distribution costs and rising newspaper industry is found to be controlled labour costs, in particular, have made news- by no more than three media groups in papers financially vulnerable and heavily Flanders and three groups in Wallonia. dependent on advertising revenue. As in the rest of Europe, newspapers are Press ownership in Flanders acutely dependent on advertising revenue: The three most important press enterprises in ‘healthy’ newspapers raise between 45 per Flanders are: VUM, De Persgroep and RUG. cent and 60 per cent of their income from VUM (Vlaamse Uitgevers Maatschappij) advertising. However, the numerous new is the market leader with one quality 18 3103-Ch-02.qxd 11/13/03 12:13 PM Page 19

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Antwerpen). Concentra is the dominant Table 2.1 Decline in the number of newspapers partner, with a participation of ¤15 million. and newspaper enterprises The only independent newspaper in 1950 1980 2002 Flanders that does not yet form part of a Flanders larger media group is De Financieel Titles 19 12 10 Economische Tijd, the financial-economic Enterprises 14 7 4 quality daily. Although it is financially Wallonia sound, with a circulation of approximately Titles 31 21 16 50,000, it is said to be looking for some form Enterprises 19 9 4 of co-operation with a Flemish or foreign Belgium press group. Titles 50 33 26 These press groups have the following Enterprises 33 16 8 newspaper market shares in Flanders: VUM 43.3 per cent; De Persgroep 28.1 per cent; RUG 23.4 per cent; FET 5.2 per cent. Most large newspaper groups are controlled by broadsheet (De Standaard) and three popular holding companies, with the exception of newspapers (Het Nieuwsblad, De Gentenaar De Persgroep and Concentra (RUG), whose and Het Volk). The publishing group majority shareholders are the Van Thillo employs about 300 full-time journalists and family and the Theelen family respectively. leans towards the Catholic socio-political ‘pillar’. The group has recently been said to Press ownership in Wallonia be on the verge of getting in the red as a In Wallonia Rossel is the newspaper market result of high costs and heavy investment leader, with its broadsheet Le Soir and its (including its purchase of the newspaper Het tabloids, La Meuse (Liège) and La Lanterne Volk in 1994, its participation in Mediabel, (Brussels). These are so-called ‘neutral’ news- the Belgian French-language press group, as papers: they do not lean towards any well as its investments in numerous digital specific political, social or religious ‘pillar’. activities). Its business plan includes a cut in In 1968 Rossel also gained control of La the number of journalists. Nouvelle Gazette, the liberal daily. Taking De Persgroep is the second largest group. advantage of family feuds within the It publishes the two mass-oriented news- company, the French media tycoon Robert papers: Het Laatste Nieuws and its Antwerp Hersant (Socpresse) succeeded in acquiring edition, De Nieuwe Gazet. Het Laatste Nieuws 40 per cent of Rossel. Until 1997 Rossel also is the tabloid with the largest readership in incorporated the loss-making socialist Flanders (circulation 265,000). dailies Le Peuple, Le Journal de Charleroi and In 1989 De Persgroep acquired De Morgen, La Wallonie, but when the readership kept the socialist-oriented newspaper that had declining (to under 7,500, the limit below gone bankrupt, for the nominal amount of which government support is withdrawn in BFr 1 (¤0.02). De Morgen itself was the result Wallonia) the three newspapers merged into of a merger of Vooruit and Volksgazet, two Le Matin but Rossel ended the collaboration. socialist party newspapers. Under the owner- In 1999 the Rossel group acquired a ship of De Persgroep De Morgen retained its 48 per cent share in La Voix du Nord, the editorial autonomy, and after recapturing a main French regional newspaper (Mediabel part of the market share it had before its dif- is also allied with La Voix du Nord, see ficulties, it is now creating a distinct profile below). of itself as a progressive quality newspaper. Société Anonyme d’Information et de In contrast to VUM, whose core business Productions Média (IPM) publishes the remains publishing newspapers, De Persgroep Catholic newspaper La Libre Belgique and the has successfully launched a range of popular liberal La Dernière Heure. The merger of these weekly magazines. It also owns 50 per cent of titles into one press group in 1973 did not VTM, the popular Flemish commercial tele- prevent them from losing market share, and vision station, and of Topradio, Mango and the original owners were replaced with a Q-Music, all of which are private radio new media holding company in which the stations. Le Hodey family has a major share. RUG (Regionale Uitgeversgroep) emerged Mediabel, the third most important Walloon as a joint venture of two mainly regional media group, took a 51 per cent participa- newspaper groups, Concentra (Het Belang tion in IPM in 1995. The main newspaper van Limburg) and De Vlijt (Gazet van published by Mediabel is Vers l’Avenir, a 19 3103-Ch-02.qxd 11/13/03 12:13 PM Page 20

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leading Catholic Walloon newspaper which of the socialist party’s historical prominence used to be owned by the diocese of Namur. in this part of Belgium. In recent years Vers l’Avenir has bought vir- Most newspaper groups have also devel- tually all regional Walloon Catholic dailies oped activities in the periodical press, commer- and now publishes one national edition cial radio and television. This has resulted in with different regional or local editions (Le conflicts of interests: De Persgroep, which Jour/Le Courrier, Le Courrier de l’Escaut, has a 50 per cent share in the major Flemish L’Avenir de Luxembourg). The majority share commercial television company (VTM), has Mediabel was holding in IPM apparently often been criticized for being too partial created a duopoly in Wallonia: Rossel versus towards this commercial station in its news- Mediabel/IPM. Mediabel, however, has papers and weekly magazines. Belgium, strengthened its position by entering into unlike the United Kingdom and Germany, an alliance with La Voix du Nord, the has no Sunday papers. French group that owns 49 per cent of Vers l’Avenir. An interesting detail in this context The periodical and magazine press is that in 1999 market leader Rossel also The periodical press is highly concentrated: acquired a share in La Voix du Nord, as a in each of the two communities it is domi- result of which both the Rossel group and nated by two periodical groups and one Mediabel/IPM are now allied with the newspaper group. The largest group is French Voix du Nord. Sanoma, the Finnish media giant that also When, in 2000, Mediabel wanted to took over VNU, the Dutch periodical con- readjust its bloc of shares with a view to cern, in 2001. Through Mediaxis, its Belgian reducing the diocese’s share to 25 per cent, branch, this group publishes all women’s it chose a new partner company, in which magazines as well as the majority of tele- Flemish VUM held over 50 per cent of the vision magazines in Belgium. Roularta, a shares. To IPM, and particularly to the Le periodical publisher, holds the monopoly of Hodey family, this transaction was unaccept- the news weeklies (Knack), after having able for various reasons, and they were ousted all competitors from the market. backed up by an arbitration committee. Roularta is also active in the lifestyle maga- Today Mediabel still participates in IPM. zine and family magazine sectors. It is clear that the six prominent media Next to these two leading magazine pub- groups make it virtually impossible for inde- lishing groups there are two smaller pub- pendent small newspapers to survive. FET, lishers, the Dutch Audax, which has taken the Flemish independent financial and busi- over the periodicals of Het Volk newspaper, ness quality paper, has made it known it is and a newcomer, Think Media, which looking for a partner. L’Echo, the Walloon focuses on men’s magazines. financial and business daily, is already allied Two newspaper publishing groups, De with Rossel (14.5 per cent), IPM (9 per cent) Persgroep and Rossel, are also active in the and Vers l’Avenir (4.5 per cent). Grenz Echo, weekly magazine market. De Persgroep, Belgium’s only German-language newspaper, whose titles include Dag Allemaal, the most has always found it hard to survive. In 1996 widely read television weekly in Flanders, Rossel acquired 50 per cent of Grenz Echo. takes up a particularly strong position next As in the rest of Europe, it has been the to Sanoma and Roularta. socialist newspaper press in particular that As in the newspaper sector, the market for has found it hard to cope with the condi- periodicals is saturated, and newcomers tions of the new media landscape. When the stand little chance of success. In 2001 three Flemish De Morgen, the daily with socialist newly launched weeklies disappeared after a leanings, found refuge with De Persgroep, it brief life. The television weeklies make up went through some troubled years, but it the largest segment of the periodical market. now appears to be holding its own as a left- Like the newspapers, the periodicals have to oriented quality paper. compete fiercely for advertising revenue In Wallonia the socialist newspaper press among themselves, because of the appeal of has failed to survive. After its departure from commercial television. Rossel and a short stay with Mediabel, Le Matin entered a joint venture with France Soir The electronic (audio-visual) media until it was finally forced to close in 2001, in spite of continuing government support. After the World War II public broadcasting This implies that Wallonia no longer has any was given a complete monopoly. Television progressive, left-oriented newspaper, in spite was introduced fairly late (1953) because

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television sets had to be compatible with parliament). It followed that it was the both the French 819 line system and the politically best placed rather than the best European 625 line standard. qualified individuals who tended to get In May 1960 a law was enacted creating appointed and promoted. Naturally, such a two broadcasting corporations: one for system inevitably made dynamic and creative Flanders (BRT) and one for the French- operation of the stations virtually impossible. speaking community (RTBF). In 1997 the Moreover, the public broadcaster received Belgisches Fernsehen und Rundfunk was only 50 per cent of the total proceeds from created for the German-speaking commu- the radio and television licence fees, and had nity. As these three broadcasting corpora- to make do with a rather low budget. The fact tions gradually gained more autonomy and that the public broadcaster’s annual govern- their own individual legal frameworks, we ment grant had to be agreed on by the shall discuss them separately. Flemish parliament placed the political The setting up of cable networks in 1960 parties in a position to put the public broad- turned out to be an important factor in the casting corporation under continuous audiovisual landscape. By the mid-1970s pressure. half of all households had been connected The malaise that pervaded the corporation to a cable network. Today Belgium is the helped create a favourable climate for intro- most densely cabled country in the world ducing a Flemish commercial television (98 per cent of all television households). At station. VTM (Vlaamse Televisie Maatsch- first the cable companies were confined to appij – Flemish Television Company) was distributing the national channels, but quite launched in 1989 with great success: the soon they started distributing the output of targeted audience share of 20 per cent was foreign television broadcasters as well. easily exceeded and in 1995 it rose as high as Among the latter, only the public service 44 per cent, while the public television broad- channels were at first allowed access to caster’s share dropped to 29 per cent. cable, but after some time selected commer- After the substantial loss of viewers and cial stations were admitted as well. unabated discontent, all the public broad- As a result the public has for many years caster’s top people were dismissed. A new been exposed to a plethora of national and manager (Bert De Graeve) was headhunted. foreign television channels; television He initiated fresh profiles for the two public households receive thirty to forty television television networks and laid off no fewer stations. This has made Belgium an interest- than sixty top staff. The general idea was to ing testing ground for investigating do away with politicized appointments and whether, and to what degree, a large and crippling bureaucracy. In 1997 the public varied supply of channels undermines view- broadcasting corporation was turned into a ers’ loyalty to their own national station. limited company governed by public law. Its In the 1980s there was a favourable name was changed to VRT (Vlaamse Radio climate for launching new commercial Televisie – Flemish Radio and Television), its stations. When the general monopoly of staff lost their civil servant status and its over- the public broadcasting corporations was all budget was augmented. Its new profile broken by the legalization of the numerous proved to be a success and the public tele- private radio stations that had been operat- vision broadcaster today has about the same ing illegally, the first commercial television share of Flemish viewers as VTM, the main stations were licensed in 1987 in Wallonia commercial station: approximately 32 per (RTL-TVI) and in 1989 in Flanders (VTM). cent for the VRT and 37 per cent for VTM. Initially, the government gave VTM a Television and radio in monopoly of commercial television and the Flemish community required newspaper and periodical publish- In the 1970s the public broadcasting corpo- ers to become the company’s majority ration increasingly became the target of shareholders (which was exactly the oppo- criticism: it was deemed to be too paternal- site of what is provided by any cross- istic, too little innovative, too bureaucratic, ownership law!). This legal construction, and above all too heavily politicized. Not with the monopoly and the obligatory only its board of directors and its manage- participation of Flemish publishers, was ment but also its high-level broadcasting rejected by the European Commission. staff were appointed according to political VNU, the Dutch magazine publisher, had criteria (which were themselves the reflec- taken a 44 per cent participation, but sold it tion of the political party representatives in to De Persgroep and Roularta, the two 21 3103-Ch-02.qxd 11/13/03 12:13 PM Page 22

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Belgian publishing groups that now hold other strongly: entertainment only and a lot 100 per cent of the shares in VTM. of American series and formats. In 1994 VTM’s monopoly position was In Flanders foreign-language programmes undermined by the controversial launch of are subtitled in Dutch. VT-4, a new commercial SBS-TV station. As As far as radio broadcasting is concerned VT-4 was officially based in London, as a UK the public corporation finds itself in a com- company it was in a position to circumvent fortable position. Until 2001, it held the VTM’s eighteen-year-old monopoly. VT-4 monopoly on nationwide radio broad- was a typical U-turn construction, as it was casting, with a total of five channels. The exclusively directed at Flanders, with Dutch- private radio channels in Flanders form no language programmes only. The Flemish real competition as they were prohibited cable companies were found willing to dis- from networking and from extending their tribute VT-4’s programmes through their transmission ranges beyond the local. In networks, in spite of the resistance put up by 2002 the authorities yielded to the growing the Minister in charge of media policy. pressure to grant nationwide licences to However, the station turned out to be only commercial radio stations. After competitive moderately successful (it never exceeded tendering nationwide radio licences were an 8 per cent audience share). Eventually it granted to two commercial stations. Q-Music officially became a Flemish station in 2002. (owned by the Flemish commercial television Whether this move will save VT-4 from channel VTM) and 4FM (owned by Think insolvency remains an open question. Media, publisher of periodicals). These, how- VTM’s answer to the threat posed by VT-4 ever, have found it hard to compete with the was to launch a second channel (K-2) even five successful public radio stations. before VT-4 had actually started broadcast- The public broadcaster has a strikingly ing. K-2 has a small audience share (about high share of the radio audience (84.2 per 7 per cent). cent). This success is the result of two Under pressure from the European factors. Until 2002 only the public broad- Commission, VTM’s monopoly was termi- casting corporation had access to frequen- nated in 1998. cies that allowed it to cover the whole of Meanwhile, a range of thematic television Flanders. This gave the corporation the edge channels have been launched: Vitaya over the numerous private radio stations, (lifestyle), TMF and JIM-TV (music), Kanaal Z which were confined to a strictly local trans- (business and ), Libert.com (travel) as mission range. Moreover, the public broad- well as some shopping channels. These caster’s five radio stations have been smartly appear to find it hard to attract sufficient tailored to exert a strong appeal to segmented advertising to survive. Indeed, the excessive audiences. Radio 1 is the general current fragmentation of the television market in affairs and service station; Radio 2 offers Flanders today leads to ruinous competition entertainment and is regionally oriented; among the stations. Klara is the culture station; Studio Brussel At the launch of VTM, and following its broadcasts light music for a young audience; huge success, the public television broad- Radio Donna is given over to pop music. caster was panic-stricken and responded by Q-Music (VTM) and 4FM (Think Media), the adopting an imitation strategy, i.e. by offering two private radio stations that received a more popular entertainment during prime nationwide licence in 2002, have fallen time. The programme profile of the second short of expectations and appear to be channel in particular was frequently altered, unable to challenge the strong VRT-radio until the corporation finally settled for two loyalty among the Flemish audience. different, fully fledged channels that are Public broadcasting is mainly funded with equal and complementary. The first channel public means. As in the United Kingdom and (TV-1) aims at as wide an audience as possi- in Sweden, public television is not allowed to ble with more popular programmes, while carry advertising, though sponsoring is the second channel (Canvas) is devoted to permitted. Public radio stations may have high-quality programmes for viewers who advertising revenue up to a ¤50 million want some sort of added value. limit. The government grant in 2002 was Several studies have shown that the prime- ¤206,197 million (comparable broadcasters time programming of TV-1 is very similar to in Norway or Finland, with about the same that of VTM. Also the profiles of K-2 (VTM’s number of inhabitants, enjoy higher bud- second channel) and of VT-4 resemble each gets). This government grant is laid down in

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a management contract at a fixed amount, it had 128,000 and 42,000 subscribers for its which is increased yearly by 4 per cent. analogue and its digital range respectively. Moreover, the VRT receives a supplementary subvention of ¤10 million that is earmarked Television and radio in the for the development of digital television. French-speaking community In 2002 the radio and television licence Like its Flemish counterpart the French- fee was abolished in Flanders. The broad- language public service broadcaster was casting corporation had been receiving only threatened by far-reaching politicization, 50 per cent of the total proceeds anyway, the deadening bureaucracy, and an endemic number of licence dodgers had been increas- shortage of financial means. As its annual ing, and the authorities wanted to make it grant was dependent on government clear that the funding of a public broadcast- approval, it was exposed to political pressure. ing corporation is part of a public service. The corporation was suffering from a deep VTM made a profit from the very start. In malaise. In October 1997 it was decided to 1997 its profits amounted to ¤15.6 million. restructure the corporation, to increase its Although in 1999/2000 profits declined autonomy, to guarantee a fixed annual gov- following the economic recession, the ernment grant, to reduce the number of staff company remains financially healthy. with the status of tenured civil servants, and Regional television. In Flanders regional tele- to hire staff on a temporary basis. vision started in 1992. The regional stations The 1997 decree turned the RTBF into an were meant to complement the national autonomous state enterprise, similar to the channels. Their distribution was limited to the VRT. Parallel with the VRT in Flanders, the respective regions, they had to offer mainly RTBF was run on a ‘management contract’ regional information, and their broadcasting (October 1997) with the government of the time was limited to 200 hours per year, French community. This contract regulated though non-stop repeats were allowed. The its funding and programming. The 1997 eleven regional stations have semi-public management contract was found to be ill status, they are funded with advertising as well defined, and it was replaced with a new one as with public means. They have been suc- in July 2001, which requires 75 per cent of cessful in attracting viewers, but advertisers all RTBF broadcasts to be produced in one of and local authorities have been less eager to the regional production centres, thereby finance them and, as a result, several of them indicating clearly that the RTBF attaches now find themselves in difficulties. TV greater importance to decentralization than Brussel, which receives sufficient funding does its Flemish counterpart. from the authorities, does not have these In contrast with Flanders, politicization financial problems. RUG and De Persgroep, continues, as the power of the RTBF’s heav- the newspaper groups, and Roularta, the mag- ily politicized board of directors has not azine publisher, participate in a number of been cut back. In 1997 Chr. Druitte, the regional stations. A recent change in the Director General, was appointed on the regional television decree allows the broad- basis of his political background. Because casting time to be extended, but it does not problems continued to affect the corpora- offer any prospects of government support. tion, he was replaced by J. P. Philippot, Pay-television. Pay-television has never got solely as a result of yet another political off the ground in Flanders. Via the cable net- intervention. works, Flemish viewers can already receive a The RTBF decree emphasizes the impor- wide range of free stations with a large film tance of producing programmes of its own, offering. The presence of numerous and easily reflecting the cultural heritage and identity of accessible video shops is thwarting the devel- the French-speaking community in Belgium. opment of any pay-per-view film channel. In As in Flanders, public television was faced 1985 Filmnet (Richmond – Rupert) was the with a commercial competitor in the late first pay-per-view film channel to be started 1980s. RTL-TVI was started up in 1987. It is up, but it never managed to reach break-even 66 per cent owned by the RTL group (a point. Canal Plus acquired Filmnet in combination of CLT, Bertelsmann and September 1996, and now offers an analogue Pearson) and 34 per cent by French- and a digital range with Canal Plus Televisie. language newspaper publishers. The alliance Although it possesses contracts for football with RTL, which was a powerful European rights Canal Plus Televisie still finds it hard to player, promised a rosy future for RTL-TVI, attract a viable number of subscribers. In 2001 but the new station found itself heavily

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challenged by TF-1, the French commercial however, RTL-TVI is obliged to allocate station, and by FR-2 and FR-3, the French one-third of its programming to French- public stations. It appeared that over 40 per language programmes. cent of Belgian French-speaking viewers The television landscape in the French- watched these French stations. Although speaking community is much more frag- RTL-TVI’s viewing figures were somewhat mented than in Flanders, where competition better (between 23 per cent and 26 per cent) from foreign stations is relatively feeble. than those of the RTBF, they fell short of In contrast with Flanders, where the five expectations. When, in 1989, the RTBF was public radio stations have held on to their given permission to carry advertising, some prime position, in Wallonia they have been degree of co-operation with RTL-TVI was heavily challenged by private stations, mainly established. This co-operation, however, did because the latter are allowed to set up net- not result in a strong increase in advertising works that effectively extend their transmis- revenue for the RTBF, which remained as sion ranges. The private radio stations were ‘poor’ as ever. The advertising revenue was legalized as early as 1981. Since 1985, when distributed as follows: 24 per cent for the they were given permission to carry advertis- RTBF and 76 per cent for RTL-TVI. In 1997 ing and to network, they have been develop- the collaboration between RTBF and RTL-TVI ing fast: Radio Contact (35 per cent RTL), came to an end, the RTBF running its own BE-RTL (RTL-TVI and Rossel), Nostalgie and advertising service, with a government- Fun are very popular and constitute serious imposed volume ceiling. It follows that, in competition for the five public radio channels. Belgium, a public television broadcaster car- As in Flanders, the public broadcaster has ries advertising in the French-speaking com- profiled its radio channels very sharply: La munity, but not in Flanders. Première is a general channel; Fréquence In 1995 RTL-TVI made an attempt at Wallonie broadcasts popular and regional further expanding its audience share by programmes; Musique 3 is the culture chan- launching RTL Club, a second channel, nel; 21 Radio is the youth channel; Bruxelles which broadcasts mainly films. Capitale offers popular programmes for a In more recent years new commercial slightly older audience. In recent years the thematic stations have been added: AB-3, public radio stations have become more suc- Canal Z, Event-tv, a shopping channel. cessful, but Radio Contact and BEL-RTL, the As a consequence of a strict economy drive two private radio networks, still cover 38 per and frequent labour unrest, including strikes, cent of the radio market. public television programming strategy has Regional television. Since 1972, when a pilot been the subject of numerous changes. In project for regional television was started by 1993 the difficulties culminated in the aboli- the government in Wallonia, twelve regional tion of Télé 21, the second channel. In March stations have been granted a licence. As in 1994 a new second channel, La Deux, was Flanders, their transmission ranges and started up. Like the VRT’s second channel broadcasting time were limited and their (Canvas), La Deux broadcasts cultural pro- programming had to include regional infor- grammes, targets minority audiences and mation and entertainment. Although, from covers events, including sport. March 1990 onwards, regional stations in The first channel, La Une, offers more gen- Wallonia have been allowed to carry adver- eral programmes and it competes directly tising, the authorities have made great efforts with RTL-TVI during prime time. The RTBF to support the regional stations financially: offers more and longer newscasts than RTL- the governmental decree provides for an TVI, and it invests heavily in producing its annual grant for operating costs, and the sta- own programmes, as it has always striven to tions receive half of ¤3.7 per cable subscriber promote its cultural identity throughout its per year. Also, local authorities have been programming. As we have indicated above, prepared to invest in regional television. the RTBF cherishes its decentralization Thus regional television maintains its semi- policy: it is run in regional, autonomous public status. Just as its Flemish counterpart production centres. in Brussels is supported by the Flemish RTL-TVI offers popular programmes, authorities, the French-speaking Brussels including a strikingly high number of regional station, Télé Bruxelles, is entirely American series and films. RTL Club targets funded by the French-speaking community. a younger audience with mainly American Pay television. Canal Plus Belgique, a sub- series and films. As a regulatory principle, sidiary of Canal Plus France, has been active

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in the French-speaking part of Belgium since Television and radio in the 1989. The RTBF owned 26 per cent of the German-speaking community shares, Canal Plus France 42 per cent and In 1977 the Belgischer Rundfunk und the rest were owned by Deficom, a company Fernsehen BRF was founded. This German- that consists of mainly Belgian enterprises. language public broadcasting corporation, In 2000 the RTBF and Deficom sold which has its head office in Eupen, broad- their shares to Canal Plus France for ¤20.6 casts radio programmes from 6.00 a.m. to million. 10.00 p.m. daily. After 10.00 p.m. it relays The government required Canal Plus RTBF radio broadcasts. Since 1993 it has also Belgique to invest ¤2 million annually in had a weekly current affairs television pro- French-language audio-visual productions. gramme. The BRF has been allowed to collab- In 1990 Canal Plus Belgique concluded a orate with private partners and it has plans to contract with the Royal Belgian Football offer a daily television newscast. Association, a move that undoubtedly con- Apart from its public broadcasting service, tributed to raising the number of subscribers German-speaking Belgium also boasts a to Canal Plus to some 190,000 and getting it dozen local radio stations that have the out of the red in 2000. same legal status as those in the French- Unlike in Flanders, in Wallonia the oblig- speaking community. atory radio and television licence fees have not been abolished. The proceeds from the The Internet and fees are divided equally between the public related on-line media broadcasters and other public services (mainly education). In 2001 the govern- Owing to the liberalization of the tele- ment direct grant to the RTBF amounted to communication sector, Belgacom, the leading ¤167,425 million. Belgian operator, has been faced with com- Financial difficulties are endemic in the petition both in its fixed and in its mobile RTBF: in 1996 it showed a deficit of ¤6.4 telephone services. million. To rectify this situation, a dracon- Its fixed telephone services were challenged ian financial reconstruction scheme was set by the Flemish cable networks. The latter up, under the name ‘Horizon 97’. Under this have been quick to convert their cable net- scheme, the government grant to the RTBF work into a switched network that is capable is rising by 6 per cent over a five-year of operating a telephone service. Telenet period (in contrast, the VRT’s government started in 1996. Belgacom’s mobile telephone grant is increasing by 4 per cent annually). service, Proximus (3,981,000 subscribers), has With the proceeds of the sale of its shares in two strong competitors: Mobistar (2,547,000 Canal Plus Belgique (¤20.6 million) to Canal subscribers) and KPN Orange, which changed Plus France, the RTBF wanted to pay off its its name to Base (1,000,000 subscribers). debts and invest in digital technology and The proceeds from the auctioning of educational progammes. In 2002 the RTBF UMTS licences fell short of expectations. still showed a ¤10 million deficit. The operators who were awarded a licence, Both public radio and public television are Proximus, Mobistar and Base (KPN), have allowed to broadcast advertising, but the postponed introducing their UMTS services. advertising revenue cannot exceed 25 per Belgacom and Telenet also compete cent of total RTBF income. The new man- fiercely in offering fast ISDN connections: agement contract imposes a five-minute Telenet’s Pandora and Belgacom’s ADSL advertisement-free period before and after system. Telenet tried to attract subscribers to children’s broadcasts on the public tele- its fast Internet service with low pricing, but vision broadcaster (as in Flanders), but not subsequently it quietly doubled its rates. In on commercial RTL-TVI! This is a paradox in 2002 the American-British group Callahan such a small country: in the French-speaking took a ¤940 million controlling interest in community commercial television has Telenet and the Flemish cable networks, but no five-minute rule, while in Flanders it in the same year the coalition asked for a does. delay in payment. As we have indicated, RTL-TVI finds it dif- While Belgacom has 5,060,000 subscribers ficult to compete with the French TF-1, to its fixed telephone network, Telenet had which also targets the Belgian advertising only 207,000 subscribers in 2001. This shows market. Since 2000 RTL-TVI has stopped that competing with the leading national making a loss. operator is far from easy. Thanks to its clever

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marketing strategy Telenet was able to attract allow repressive measures only if the freedom more users for its broadband service, Pandora, of speech is proved to have been abused. than Belgacom was able to for ADSL. It should As far as offences against the press code are also be observed that in Belgium broadband concerned, a special safeguard is provided in connections were implemented faster than Article 98 of the constitution, which states had been planned (from 54,652 lines in 1996 that such offences do not fall within the to 389,979 lines in 2000). competence of an ordinary criminal court, Approximately 50 per cent of all Belgians but must be referred to the Court of Assizes, own a mobile phone, and about the same the so-called ‘People’s Court’, where judge- percentage have a fixed telephone line. ment is passed by a jury. This procedure According to the National Institute of obviously protects journalists, as public Statistics (2000) 42 per cent of the popula- opinion is likely to side with the press. tion have access to a personal computer and Belgian legislation does contain a number 38 per cent make use of the Internet. Further of restrictions on the freedom of the press. expansion of the Internet is hampered These are derived from fundamental consti- by the fact that telephone services are rela- tutional rights, such as the individual’s right tively expensive. As in most European coun- to privacy and to protection against defama- tries, Internet users mainly use e-mail, tion. Further restrictions are based on the discussion lists, chat lines and data consulting. need to protect the public interest (national E-commerce and new e-zines have had less security, moral standards, the monarchy, etc). success and have faced financial problems. There is no legislation on media concen- All newspaper and weekly magazine tration or cross-ownership. As there is no publishers have developed digital activities. specific EU legislation concerning media Most of their services, which complement concentration either, the general regulations the printed versions of their publications, on the concentration of companies apply. are free. Newly created e-newspapers and To safeguard pluralism, the European e-magazines were not as successful as antici- Commission permits member states to pated, and came to a premature end. impose specific anti-trust regulation within Canal Plus offers a digital cable package: their national territories. In contrast to a its interactive services are transmitted number of other countries, Belgium has through a set-top box that is connected to made no use of this so far. When a concen- the cable network. tration appears to be in the making, Belgian The VRT started a digital television pilot legislation stipulates a duty to report to the project in 2002. To general amazement, the Competition Council. So far this council has management opted for terrestrial digital tele- never intervened. vision, even though the entire country is With a view to promoting pluralism in the densely cabled. Rather than make use of printed media, the Belgian government has cable, which is ideal for two-way exchange, always adhered to a system of indirect sup- they preferred to use telephone lines for their port (reduced postal and telephone rates, interactive services. Moreover, the set-top subsidized newsprint supply, zero VAT rate, boxes for terrestrial digital television are interest-free loans, etc). Following a political incompatible with those for digital television compromise in 1973 all newspapers started through the cable network. At the moment to receive financial support from the govern- 100 television households are involved in a ment in the form of direct grants. This gave pilot project. The results of this pilot project rise to a wave of criticism as it did not really will determine whether terrestrial digital dis- help insolvent newspapers. Subsequently tribution was the correct decision. the direct support system was made more selective, with more financial support for the insolvent papers, but the total amount that was allocated kept decreasing. Even- POLITICS, POLICY, tually the Flemish government decided to LAW AND REGULATION stop direct grants to the press altogether and replace them with governmental advertising, The press and financial support for journalist training and the development of digital activities. Belgium’s constitution guarantees complete The government of the French-speaking freedom of the press. Articles 14 and 18 pro- community still hands out direct financial hibit any form of preventive censorship and aid to the newspapers, but only as long as a

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paper’s sales figures remain above 7,500 The French-speaking community permits copies. Part of the funds derives from the all audio-visual media to carry advertising, proceeds from the sale of radio and tele- but it puts a ceiling on the public radio and vision advertising (¤2.48 million): 75 per television broadcaster’s advertising revenue. cent from RTBF advertising, 25 per cent In Flanders, public television is prohibited from RTL advertising. from showing advertising, though sponsor- ship is permitted. Flemish public radio is The electronic media allowed to have advertising revenue, but with a financial ceiling (¤50 million in 2002). The Flemish and French communities are European Union rules apply to audio- fully autonomous in constructing a regula- visual advertising in Belgium. Under these tory framework for their respective public rules the member states retain the right to be broadcasting corporations. It is practically more restrictive for their own national sta- impossible to give a complete and detailed tions. Flanders used this right when it survey of this legal framework, as it is con- imposed the rule that prohibits advertising stantly being reviewed. It must be noted, five minutes before and after children’s pro- however, that the Flemish government has grammes. The French-speaking community often taken measures that run counter to EU has adopted the restriction for public tele- regulations, e.g. when awarding a monopoly vision, from 2003 on, though not for com- to one single commercial broadcaster, mercial television. requiring newspaper and periodical publish- The advisory body for the media in ers to participate in that commercial station, Flanders is the Mediaraad (Media Council), trying to keep VT-4 off the cable network, etc. which advises the Minister for the media as Before they can apply for a licence, all well as the Flemish parliament. In the broadcasting companies need to be recognized French-speaking community the Conseil by a broadcasting commission: in Flanders by Supérieur de l’Audiovisuel is qualified to do the Vlaams Commissariaat voor de Media this, while, at the same time, it functions as (VCM), and in the French-speaking commu- a controlling body and decides on the allo- nity by the Conseil Supérieur de l’Audiovisuel cation of radio and television licences. In (CSA). It is the duty of these bodies to establish Flanders the latter is the responsibility of the whether the legislation is being observed and VCM (Vlaams Commissariaat voor de Media, to impose sanctions if necessary. the Flemish Broadcasting Commission).

STATISTICS

National population 10,000,000 Number of households 4,609,000 Overall cinema admissions 23,500,000

Print media Circulation of main daily newspapers, 2002. We use the English concepts: broadsheet, quality newspaper; tabloid, popular newspaper; broadloid, between the two (borrowed from B. Franklin) Group Circulation Copies sold Ideology Type

Flanders VUM (43%) 501,937 408,773 De Standaard 98,169 78,995 Catholic Broadsheet Het Nieuwsblad/De 266,069 217,960 Catholic/ Broadloid Gentenaar Catholic Het Volk 137,699 111,818 Catholic Tabloid De Persgroep (28.1%) 380,665 265,480 Het LaatsteNieuws/ 316,267 217,221 Liberal/ Tabloid De Nieuwe Gazet Liberal De Morgen 64,398 48,259 Progressive Broadsheet

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RUG (23.4%) 380,665 221,009 Gazet van Antwerpen 146,350 121,097 Catholic Broadloid Belang van Limburg 112,601 99,912 Catholic Broadloid FET (5.2%) Financieel 63,815 49,687 Independent Broadsheet Economische Tijd

Wallonia Rossel (51%) 346,042 279,481 Le Soir 164,581 133,502 Independent Broadsheet Sud Presse: 181,461 145,979 La Meuse Independent Tabloid La Lanterne Independent Tabloid La Nouvelle Gazette Liberal Broadloid Mediabel (41%) 304,324 224,504 IPM: La Libre Belgique 68,212 53,884 Catholic Broadsheet La Dernière Heure 98,237 70,507 Liberal Tabloid Editions Vers l’Avenir: 119,875 100,113 Vers l’Avenir Catholic Broadloid Le Jour/Le Courrier Catholic Broadloid Le Courrier de l’Escaut Catholic Broadloid Le Matin (closed 2001) (1.5%) 18,000 8,500 Socialist Broadloid L’Echo (4.7%) 34,476 26,296 Independent Broadsheet Grenz-Echo (1.8%) 12,342 10,082 Independent Broadloid Source: CIM. Total circulation, Belgian press, 1,917,152; 63.5 per cent Flemish press; 36.0 per cent French-language press; 0.5 per cent German-language press.

Broadcast Audience share of main television channels, 2000 (%) media Flanders Public VRT TV-1 23.4 TV-2/Canvas 8.2 Private VTM 30.1 KA-2 7.7 VT-4 7.8 French-speaking community, 2000 (%)

Public RTBF La Une 17.7 RTBF La deux 3.4 Private RTL-TVI 18.1 Club RTL 5.6 French TF-1 16.9 FR-2 10.1 FR-3 6.3 Source: CIM.

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Audience share of radio channels, 2000 (%) Flanders VRT Radio 1 7.7 Radio 2 32.3 Radio 3 1.5 Studio Brussel 7.5 Donna 35.2

Private Radio Contact 6.9 Top Radio 3.3 Radio Mango 1.7 Energy 0.3

French-speaking community RTBF Fréquence Wallonne 9.8 Radio 21 5.6 La Première 5.4 Bruxelles-Capitale 2.1 Musique 3 2.0

Private Contact Radio 18.8 Bel RTL 18.8 Nostalgie 8.9 NRJ/Energie 5.3 Fun 5.2 Contact 2 1.5 Source: Radio Metrie. Percentage of households reached by all forms of satellite, cable or terrestrial pay-television: 98 Percentage of households with: VCR 76 Satellite receiver 1 DVD 4.4

Electronic media (% of Internet users 38 Mobile phone subscribers 65 population

Advertising Newspapers 17.2 Spend (%) Magazines 13.6 Free papers 5.3 Television 43.2 Radio 10.4 Film 1.4 Outdoors 8.9

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REFERENCES De Bens, E. (1991) ‘Flanders in the spell of commercial television’, European Journal of Communication 6 (2): 235–45. Antoine, F. (1995) La Belgique. Les Télévisions du De Bens, E. (2001) De pers in België. Het verhaal van monde. Paris: Corlet-Télérama-Centre national de Belgische dagbladpers. Gisteren, vandaag en du cinéma-Procirep. morgen. Tielt: Lannoo. Antoine, F., d’Haenens, L., and Saeys, F. (2001) De Bens, E. and Ostbye, H. (1998) ‘The European ‘Belgium’ in L. d’Haenens and F. Saeys (eds) newspaper market: structural changes’, in Western Broadcasting at the Dawn of the Twenty- D. McQuail and K. Siune (eds) Media Policy: first Century. Berlin: Mouton De Gruyter. Convergence, Concentration and Commerce. Biltereyst, D. and Van Gompel, R. (1997) ‘Crisis London: Sage. and renewal of the fourth estate: on the post- De Bens, E. and De Smaele, H. (2001) ‘The inflow war development of the Flemish newspaper of American fiction television on European press’, Communications: the European Journal of broadcasting channels revisited’. European Communication Research 22 (3): 275–300. Journal of Communication 16: 51–76. Biltereyst, D., and Burgelman, J.C. (1995) Lentzen, E. (1996a) ‘La presse quotidienne fran- ‘Belgium’ in Bertelsmann Foundation and cophone’ CRISP 1515–16. European Institute for the Media (eds) Television Lentzen, E. (1996b) ‘La presse hebdomadaire fran- requires Responsibility II, International Studies. cophone’ CRISP 1519. Gütersloh: Bertelsmann. Verstraeten, H. (1980) Pers en macht: een dossier Burgelman, J. (1989) ‘Political parties and their over de geschreven pers in België. Leuven: Kritak. impact on public service in Belgium: elements Voorhoof, D. (1995) ‘Openbare Omroep’, Kluwer from a political-sociological approach’, Media Mediarecht 4 (35): 1–14. Culture and Society 2: 167–93.

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3: The Czech Republic ˆ JAN CULI′K

NATIONAL PROFILE emerged as figures of national importance. Equally remarkable was the work of the Czechoslovak media during the first week of The Czech Republic came into being in Soviet occupation, following the Warsaw January 1993, when Czechoslovakia, a Pact military invasion of 21 August 1968 federal state, split into two independent which put a stop to the Prague Spring. From countries, the Czech Republic and Slovakia, the early hours of the invasion the media as a result of irreconcilable differences went underground, defying the invading between the Czech and Slovak govern- forces, and provided a round-the-clock, ments. Czechoslovakia was founded in 1918 independent news service, calling for sensi- after the disintegration of Austria-Hungary ble, peaceful resistance and preventing at the end of the First World War. In the chaos and bloodshed. A network of regional inter-war period it was a plural democracy studios was quickly set up and the ‘Free with an advanced media infrastructure Czechoslovak Radio’ was never silenced by (Czechoslovak Radio began broadcasting in the invading armies. May 1923) and a vibrant, indigenous film In the 1970s and 1980s Czechoslovakia industry (due to a sophisticated system of suffered a revenge for the liberalising 1960s import duties, levied on foreign films, which and their culmination, the Prague Spring. financed local film production). The Soviet Union threw the country into a Between 1938 and 1939 Czechoslovakia harsh, neostalinist mode and instigated a succumbed to Nazi Germany and after a direct assault on the intelligentsia. The semi-democratic interregnum in 1945–8 it media system was purged of all reformists became a part of the totalitarian, communist and was turned into a machine which Soviet Bloc in February 1948. Approximately spouted emotional, ideological propaganda from the mid-1960s the communist regime whose intensity remained practically found itself on the defensive: reformers unchanged until the fall of communism in within the system initiated a sustained push 1989. Oppression in the 1970s and 1980s for freedom, using contemporary literature was much stronger than in the other Central and culture as an instrument of democrati- European communist countries. As a result, zation. This campaign for democratic journalism was practically destroyed as a reform culminated in the so-called Prague profession. It was particularly destructive Spring of 1968, a period of several months that journalists in this period were expected when Czechoslovakia enjoyed almost systematically to publish lies in support of absolute freedom of expression and engaged the occupying regime and that the popula- upon an intensive debate about the totali- tion knew that journalists were lying to tarian excesses of its immediate past and the them. alternatives for its political future. This was Under communism all the media were a remarkable period in the history of the state-owned. From 1990 onwards the state- Czech media: newspapers, radio and tele- owned newspapers came into private hands. vision provided professional and highly The privatization of newspapers was often sophisticated coverage of the issues under questionable. For many, the pattern used was debate. A number of leading broadcasters that of the Mladá fronta (Young Front) daily. 3103-Ch-03.qxd 11/13/03 3:35 PM Page 32

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The old state-owned newspaper was technically runs in December 2001 are given in closed down, so that there would be no legal brackets1): Mladá fronta Dnes (The Young continuity. A new paper was founded by pri- Front Today) (309,226), Právo (Our Rights) vate owners with a very similar name, Mladá (213,964) and Lidové noviny (The People´s fronta Dnes (Young Front Today) (later short- Paper) (88,835). Mladá fronta Dnes and Právo ened to MF Dnes, YF Today). Thus the new have gone through a questionable privatiza- private owners could take over the trade mark tion process (see above) and have developed of the old newspaper, its subscribers and its from state-owned dailies published in the share of the market without paying any com- communist era into privately owned news- pensation to the state. For instance, the for- papers. Lidové noviny was created by dissi-

mer Communist Party daily Rudé právo (Red dents as a photocopied monthly with a

ˆ Rights) became a privately owned, centre-leftˆ print run of 400 copies, two years before

newspaper Právo ([Our] Rights), Zemedelské the fall of communism. A newspaper called

noviny (Farmers’ Daily)ˆ became Zemské noviny Lidové noviny used to be a leading daily in (Country Daily),ˆ Vecerní Praha (Evening Prague) Czechoslovakia before the Second World became Vecerník Praha (Prague Evening Paper). War and several unsuccessful attempts have Most of these privatized newspapers were been made since 1989 to emulate the pre- eventually sold by the new Czech owners to war example. foreign media companies. Mladá fronta Dnes (MFD) is a middlebrow The destruction of the professional media daily with a centre-right orientation. It in the Czechoslovakia of the 1970s and 1980s caters for the intellectually undemanding cast a shadow over the development of the general reader, whom it addresses not only media in the 1990s. The most discredited with news and comment but also with communist propagandists had to leave but various advertising, marketing, regional and many rank-and-file journalists simply special interest supplements. The political switched sides. These individuals rarely found views of MFD are close to the views of the in themselves the courage to produce inde- centre-right Freedom Union party, a small pendent and critical writing because they political organization with considerable could at any time be accused of behaving influence on the media, especially those questionably in the past. Until approximately which are based in Prague. Právo is a centre- 1996–7 most of the media uncritically sup- left daily whose commentary and analysis ported the centre-right government of Václav tend to be of slightly higher quality than Klaus and various anti-communist cam- those of MFD. The political views of Právo paigns. Many young people without a politi- are close to the views of the ruling Social cal past and without journalistic experience Democratic Party. Právo also supports were taken on by the media in the 1990s: a indigenous capital against international typical journalist was usually much younger competition, for instance the chief executive than thirty. The lack of a continuous tradition of commercial Nova Television in his of professional and/or investigative journal- dispute with the US company Central ism meant that most of the journalistic out- European Media Enterprises (see below). put of the 1990s was timid, unenterprising, Some people refuse to read Právo because superficial and conventional. Most of the they associate it with its predecessor, the print media ended up in foreign hands, and Communist Party propaganda mouthpiece there was little funding of systematic, in- Rudé právo, from the years before 1989. After depth investigative journalism. Foreign news- the fall of communism, Lidové noviny was an paper owners were interested in quick profits attempt to create an authoritative intellec- and were not bound by the obligations of tual newspaper, along the lines of the public service journalistic work. London Times. This attempt has not been successful. After several radical changes of staff, direction and ownership, Lidové noviny STRUCTURE AND OWNERSHIP is now struggling to increase its readership by introducing tabloid themes while trying to retain its reputation as a newspaper read

The print media by the ‘cultural elite’. Lidové noviny is moderately ˆ centre-right. The newspaper press Hospodárské noviny (Economic Daily; There are three major ‘serious’ daily politi- December 2001 daily average print run cal newspapers (their average daily print 74,9682) specializes in economic and business

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issues; some critics accuse this newspaper of the Czech Republic. Deníky Bohemia have being a haven of inflexible, bureaucratic now in total the highest daily printrun of all practice, surviving from the communist the Czech newspapers. If the printruns of all past. Sport (59,254) is a daily newspaper their regional variations are added together, devoted to sporting events. The Czech Deníky Bohemia tops the league, with a daily Republic has two major nationwide tabloid printrun of 442,290 copies.3 However, some newspapers, Blesk (Flash; average daily print observers point out that these are local

run 320,913) and Super (132,946). Super sup- newspapers and probably do not strongly ports Václav Klaus´sˆ Civic Democratic Party influence the political views of the readers. and Vladimír Zelezný’s Nova Television. In January 2002 the regional newspapers With the exception of Právo, which is owned by Vltava Labe Press (PNP) attracted

owned by Borgis, and controlled by the in total the highest volume of advertising, newspaper’s editor-in-chief, a ˆ communist Kcs 104.3 million.4 Mladá fronta Dnes was in era Rudé právo journalist Zdenek Porybný, second place with Kcs 102 million. The the other daily newspapers are in foreign amounts of advertising, attracted by other hands. Mladá fronta Dnes and Lidové noviny daily newspapers in January 2002 are given

are owned by Rheinisch-Bergische Druckerei- in millions of Czech crowns in brackets after und Verlagsgesellschaft, a company based in their titles: Blesk (Kcs 32.8 ˆ million) Právo Düsseldorf. Blesk and Sport (as well as a num- (Kcs 23.3 million) Hospodárské noviny (Kcs ber of weekly publications) are owned by 23.2 million), Lidové noviny (Kcs 22.9 million), the Swiss publishing firm Ringier. (Its Czech Sport (Kcs 7.2 million), Super (Kcs 5.8 subsidiary is registered as the property of million). Since the turn of the century MFD Ringier-Springer, based in Amsterdam.) has increased its advertising income by

Super is owned by E-media, which is the more than 25 per cent, but the increase has property ˆ of the Austrian firm Epic Holding. not been steady; the movements in advertis- Hospodárské noviny is owned by Economia, ing income at other newspapers have been over which the German newspaper variable. Handelsblatt and the US daily Wall Street Journal jointly exercise majority ownership. The periodical and magazine press With the exception of some small varia- The most influential weekly news magazines tions, the printruns of the Czech national are possibly Týden (The Week) (published by newspapers have been in decline since 2000. the Swiss citizen Sebastian Pawlowski; The daily regional press is wholly owned 50,000 copies sold weekly), Respekt (a centre- by a single company, Vltava Labe Press right political weekly, close to the Freedom (PNP) which is the property of Pol-Print. Union political party, which is published Medien, a company based in Passau, by Prince Karl Schwarzenberg, a former Germany. The Vltava Labe Press (PNP) group Chancellor of President Václav Havel, has bought out all the Czech regional news- 30,000 copies), and the economic magazines papers, sacked most of the journalists and Ekonom (Economist) (28,000 copies), pub- replaced the papers with a centrally pro- lished by Economia, and its competitor Euro duced publication with local variations on (23,500 copies)¸ brought out by the Czech one or two pages only. Even in the two company Euronews.5 national newspapers it owns, Zemské noviny Reflex (one of the magazines published by and Slovo, several pages are almost identical. Ringier, 60,000 copies sold weekly) is on the This practice seems to have destroyed these borderline between a current affairs periodi- two national newspapers: the average daily cal and a ‘society’ glossy. The magazine printrun of Zemské noviny (Country market is otherwise dominated by tabloid

Newspaper) dropped from 342,000 copies in and lifestyle periodicals. The most widely∨ January 2000 to 39,000 in September 2001; circulated lifestyle magazine is Rytmus Zivota the daily printrun of Slovo (The Word) (Rhythm of Life), published by Europress decreased from 53,000 in January 2000 to (240,000 copies), the Sunday edition of the 8,400 copies in December 2001. tabloid Blesk, brought out by Ringier, sells Vltava Labe Press (PNP) controls Czech 206,000 copies; Mona Prague, owned by regional daily publishing through its net- VNU Magazine Group International, of

work of regional newspapers Deníky Bohemia Haarlem, in the Netherlands, publishes a (Bohemia Daily Newspapers). This company number of other widely read lifestyleˆ maga- has acquired all the remaining regional daily zines, such as Týdeník Kvety (Blossoms newspapers in Moravia, the eastern part of Weekly) (160,000 copies) and Story (135,000

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copies); similar tabloid glossies are also firms which are trying to compete against produced by Stratosféra, a company co- each other, often with a very limited range owned by the Dutch firm VNU Hearst Prague of titles and technological and professional of Haarlem. The most successful of these is back-up. After the fall of communism many Spy (132,000 copies).6 The most widely read bookshops were liquidated, but the situa- glossies feature celebrity gossip and soft porn, tion improved and there are some 800 per- including advice on readers sexual problems. manent specialist bookshops – more than

In January 2002 Týden acquired advertis- there were prior to the fall of communism. ing worth Kcs 4.1 million, Respekt Kcs 1.1ˆ Books are sold at approximately 2,000 million, Reflex Kcs 3.7 million, Týdeník Kvety places now. Kcs 6.4 million, and Spy Kcs 6.9 million.7 Prices are not fixed nationally as in France or Germany, but most booksellers respect the prices recommended by publishers. Book publishing However, books are often sold at remain- After the fall of communism in 1989 the dered prices, even quite soon after publica- book publishing market was liberalized. tion, due to publishers or distributors’s While there were some fifty state-owned financial problems, thus destabilizing the publishing houses in Czechoslovakia under market. Nové knihy (New Books) a nationwide the communist regime, there are more than weekly bibliographical list of newly pub- 2,700 registered book publishers in the lished titles, collapsed and no up-to-date Czech Republic alone. When censorship was comprehensive information is now avail- abolished a wave of hitherto banned publi- able. The Union of Czech Booksellers started cations flooded the market, but the public publishing the annual Books in Print in 1996. soon tired of them. The average printruns, There are no marketing analyses dealing which used to reach tens of thousands of with the functioning of the book market in copies under communism, stabilized at the Czech Republic. Booksellers are being about 3,000 copies. Currently, only some offered ever more titles and so they order 150 publishers bring out more than twenty ever fewer copies. They constantly look for titles annually. In 1999 1,270 publishers pro- more titles and rarely restock the older ones. duced at least one title. Some 200 publishing Only 5–7 per cent of booksellers use com- houses produce 80 per cent of the overall puter technology for distribution, sales and book production of the country. Five per ordering.8 cent VAT is levied on book production. It is estimated that some 12,500 book titles were brought out annually by the end The electronic (audio-visual) media of the 1990s. While the average printrun has been decreasing throughout the decade, the Television number of published titles has been increas- Czechoslovak state television began broad- ing. Approximately 90 per cent of all pub- casting on 1 May 1953, while its second pro- lished books are in Czech; English is the gramme went on the air in May 1970; from most frequently used foreign language. 1983 Czechoslovakia also broadcast on its Unusually, some 30 per cent of all published territory the first programme of Russian tele- books are fiction: this is due to the fact that vision for the occupying Soviet troops. After many works of literature were banned for the fall of communism, state-owned half a century and there is much catching Czechoslovak Television was turned into a up to be done: the proportion of fiction is public service system. From 1992 there was a slowly decreasing. Many fiction titles pub- federal, Czechoslovak channel and a Czech lished nowadays, belong to the category of and a Slovak television station. After the escapist, ‘romantic’, sentimental literature. division of Czechoslovakia in 1993, Czech Translations from thirty two languages Television retained two nationwide terres-

formed a third of all published books in trial∨ channels: the mainstream programme∨ 1999. Only 12.3 per cent of all published CT-1 and the cultural programme CT-2. books were textbooks. In 1993 the regulatory authority, the Throughout the 1990s there were serious Council for Radio and Television Broad- problems with book distribution. The state casting, awarded for free a television licence distribution system was broken up after the for a commercial, culturally oriented nation- fall of communism and was gradually wide terrestrial television station to a con- replaced by some seventy private distribution sortium of six Czech and Slovak individuals,

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headed by Vladimír Zelezný, and Ronald was a good technical manager and provided Lauder´s company, the Central European the television station with up-to-date tech- Development Corporation, which later nology. News and current affairs remained became Central European Media Enterprises relatively undeveloped in his era. After (CME). The new commercial television Mathé’s departure, several attempts have

station, Nova TV (the∨ Czech Independent been made, since 1998, to professionalise Television Station, CNTS) started broadcast- Czech Television, in particular its news and ing on 4 February 1994. From its inception, current affairs department, and to open up it dropped the cultural remit and went its finances to public scrutiny. (Czech televi- aggressively for down-market, tabloid sion is financed by a compulsory licence fee, broadcasting, including pornography. The amounting to some Kcs 5 billion annually, financial success of the station was phe- which is levied from all television viewers.) nomenal. According to estimates, in the first A fourth attempt at reform failed spectacu-

years of its existence it was watched by some larly in December 2000–January 2001, when

ˆ 70 per cent of Czech audiences. In the third the Council for Czech Television appointedˆ year of broadcasting, Nova TV recorded an a former BBC journalist, Jirí Hodac, as Czech operating profit of US $45 million on the Television’s chief executive. This appoint- basis of turnover of US $109 million. In 1995 ment resulted in an open rebellion by Czech a dividend of US $12 million was paid out Television employees, led by the news and by the television company.9 current affairs department, whose members, The American company CME, trying to fearing a professional audit, turned, in order strengthen its hold on the television station, to protect their position of unaccountabil-

bought∨ out the participation interest in ity, an internal labour dispute into a public

CNTS from the original Czech and Slovak political struggle.

ˆ

founders of the station, achieving 99 per In December 2000, on hearingˆ about the cent ownership. At the sameˆ time CME made appointment of Jirí Hodac, the rebels began it possible for Vladimír Zelezný to acquire a to transmit highly emotional broadcasts, hi-

60 per cent majority in CET-21, the licence jacking the output of the station for their holder, hoping that he would always ˆ repre- own ends. They aligned themselves with an sent CME´s interests. But from 1998 Zelezný opposition political party (the Freedom

began, in secret, to act against the interests Union) and used popular discontent with of CME, so in April 1999 he was sackedˆ from the government of the day to bring out the post of chief executive of CNTS. Zelezný some 80,000 people to demonstrate in the then found indigenous financial backers in streets of Prague against an alleged govern- the Czech Republic, and in August 1999 he ment attempt to stifle the independence of

switched∨ the American-backed Nova TV Czech Television. The new chief executive

(CNTS) off the air, replacing it with his own with BBC experience was deposed within a Nova TV Markˆ 2, funded by Czech money. matter of days and things reverted to the

CME sued Zelezný and the Czech Republic at status quo ante. The Council for Radio and the international chamber of commerceˆ in Television Broadcasting has characterized Amsterdam and the Czech side lost. Zelezný the Czech Television rebellion as ‘probably has to re-pay CME US $28 million and the the most serious crisis since the fall of com- Czech Republic has to pay CME US $500 mil- munism in 1989’10 and imposed the highest lion in damages. Information about who are possible fine, Kcs 2 million, on Czech the current owners of Nova TV is not avail- Television for the behaviour of its employees able: their identities are covered by a number during the Television rebellion. of front organizations. After the rebellion, parliament changed Although attempts have been made since the Czech Television Act, stipulating that the fall of communism to turn the former the selection process leading to the appoint- Czechoslovak Television, a communist pro- ment of a new Czech Television chief execu- paganda tool, into a public service station, tive must be transparent and fully open to these attempts have not been completely public scrutiny at all its stages. But in successful. Czech Television has remained a autumn 2001 a new Council for Czech large, untransparent, post-communist colos- Television appointed a new permanent chief sus of some 4,000 employees with its own executive in secret, in direct contradiction internal ethos. In 1993–8, Czech Television’s of the new law, thus opening itself to possi- chief executive, Ivo Mathé, continued to ble accusations that political pressure was at ∨ place emphasis on entertainment. Mathé work. The appointee, Jirí Balvín, was a

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∨ Czech Television insider, representing the CT-2 have stayed at about 8 per cent. The internal ethos of this unreconstructed, large viewing figures for the rest of the television post-communist institution. sector, i.e. for cable and satellite channels, do A number of well known Prague cultural not exceed 5 per cent.12 There are fifteen satel- figures supported the rebellion, fearing with lite television broadcasters, registered in the some justification that the opening up of the Czech Republic13 and ninty four cable televi- finances of Czech Television might compro- sion broadcasters.14 The three most influential mise the often informal subcontractors’ infra- cable consortia are headed by foreign compa- structure on which many film makers and nies: UPC Czech Holding, of the Netherlands, other cultural workers were financially depen- owned by United Pan-Europe Communi- dent. They were afraid that the role of Czech cations, the Netherlands; Intercable CZ – Vision Television as the only major surviving source Networks Tsjechie Holding, the Netherlands; of cultural subsidy for the support of the work and TES Media – Central Europe Cable of Prague artists and intellectuals might end. Holdings (ING Baring, USA). There is another commercial television broadcaster, TV Prima, which has developed Radio from a regional broadcaster and was tem- Czech Republic has a public service Czech porarily owned by the Czech Investment Radio, which is financed by a compulsorily and Postal Bank (IPB). This had succumbed levied licence fee. Czech Radio operates the ∨ to corruption and had to be renationalized following nationwide stations: Radiozurnál

by the Czech government. The true identity (on FM and AM), a mixture of news∨ and cur- of the owners of the station is not known, rent affairs and popular music, CRo-2 Prague

but in spring 2001 there arose problems (on FM ∨and AM), a programme for older between the bank which currently controls listeners CRo-3 Vltava∨ (on FM only), a cultural IPB and Domeana, the firm which repre- programme and CRo-6 RSE (on AM only) a sents the current owners of TV Prima. current affairs programme, formerly put out The Czech Internet daily Britské listy is by the Czech service of the American station suing the council for Radio and Television Radio Free Europe/Radio Liberty, which was Broadcasting in order to force it to reveal the hived off from the US broadcaster in 1994, real owners of Nova TV and Prima TV. The turned into a separate, privately owned council argues that the law prevents it from station and later incorporated into public revealing the identities of the true owners. service Czech Radio. Czech Radio also oper- More regulatory problems arose in the ates eight regional studios which contribute autumn of 2001 in connection with a some of their output to the nationwide regional televison station TV Galaxy, which stations and also run their own regional pro- broadcasts to Prague and Hradec Králové and gramming. There are only two commercial on satellite and cable. The television nationwide radio stations (Frekvence 1 and station, whose licence holder is Martin Radio Impuls) and more than sixty indepen- Kindernay, also transmits programming made dent regional stations, some of which broad- by a satellite and cable televison station, TV- cast to several regions or larger towns. These 3, owned by the Luxembourg-based company include the BBC (which broadcasts the out- European Media Ventures. The Luxembourg put of its Czech Service and some pro- company tried to seize Martin Kindernay’s grammes of the BBC World Service in licence and thereby to gain control over the English) and the French-owned radio station ∨ ∨ terrestrial broadcasting of TV Galaxy in the Evropa-2. CRo-1 Radiozurnál has a 12.2∨ per cities of Prague and Hradec Králové; the cent share of the listening public, CRo-2 Council for Radio and Televison Broadcasting Praha has 6.6 per cent, Radio Impuls has took steps to prevent this operation.11 13.4 per cent, Frekvence 1 has 9.5 per cent. The audience shares of all main Czech

television stations are relatively∨ stable, Film and video except that the popularity of CT-1 dropped Unlike Czech literature, which does not from 28 per cent in 1998 to 21 per cent in seem to have produced any major work 2001 and the viewing figures for TV Prima since the fall of communism, Czech cinema rose during the same period from 9 per cent seems to have quickly overcome the crisis of to 17.5 per cent. The viewing figures for the early 1990s and is now producing major Nova TV have remained around 50 per cent and important new work. In 1990–2 the over the past few years and the viewing government gradually abolished the state figures for the cultural public service channel monopoly of film making which had existed

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from 1945. In 1992 the government created Czechoslovakia/Czech Republic by lecturers a State Fund for the Support of Czech Film from technological universities. Since 1995 Making, which is controlled by the Culture it has been possible to use the Internet com- Ministry. Since 1994 the Czech Republic has mercially. In 1999, under considerable public been a member of the Council of Europe’s pressure, the Czech Telecom introduced Eurimage Fund for the support of film co- lower dial-up charges, which are still consid- production and distribution and of the ered too high and a barrier to wider access to Europe-wide institution Eureka Audiovisuel. the Internet.17 In 2000 the Eurimage programme supported Most government and civil service depart- the distrubution of twenty European feature ments have Internet pages. The Czech films in the Czech Republic to the tune of Register of Companies is freely accessible on Kcs 5 million.15 the net. The government has a programme While under communism thirty to forty fea- of introduction of the Internet in schools, ture films were made in Czechoslovakia annu- although its realization lags behind the ally, in the second half of the 1990s between countries of Western Europe. All major news- fifteen and twenty features were made in the papers in the Czech Republic have their Czech Republic, most of them with financial Internet pages. The broadcasting of public support by Czech public service television. service radio and a number of commercial According to some observers feature film mak- stations is available on the Internet. Czech ing in the Czech Republic would collapse with- public service television and commercial out the support of Czech Television. In 1990, Nova TV make their news and current affairs shortly after the fall of communism, 51.4 mil- programmes available on-line. A number of lion cinema tickets were sold; in 1995–2000, Czech Internet providers operate portals only some 9 million tickets were sold annually. which offer a basic news and information Systematic state support for film making is still service, as well as a search engine (www.sez- lacking, owing to unsolved legislative prob- nam.cz, www.atlas.cz, www.centrum.cz). lems. The Fund for the Support of Czech Film While the Internet versions of established Making provides grants for film makers to the newspapers have the strongest commercial tune of some Kcs 60–70 million annually. In impact, there are some Internet-only daily 2000 the Czech state supported various cine- publications (e.g. Britské listy, www.blisty.cz) matographic activities to the tune of Kcs 123 which attempt to do investigative journal- million; in 1999 it was Kcs 77 million.16 The ism and challenge the conventional inter- four most successful films in 2000 were pretation of events as presented by the Princezna ze mlejna (Princess from the Mill) domestic mainstream media. (Czech Republic, Bontonfilm) 481,000 tickets In December 2000, 14 per cent of Czech ∨ sold, Samotári (Loners) (Czech Republic, households had access to the Internet. In Cinemart) 442,000 tickets sold, Gladiator 2000 almost 80 per cent of the users of the (USA) 379,000 tickets sold and The Sixth Sense Internet in the Czech Republic were men. (USA) 332,000 tickets sold. Feature films are Women usually did not have access to their also released on video and on DVD: the video own computer and used the Internet once a distributors’ income reached Kcs 1 billion in week, while men used the Internet daily. By 2000: Kcs 390 million was income from hiring 2001 the number of women users had films out, Kcs 460 million was income from grown to 25 per cent. Students represent videocassette sales and Kcs 110 million was one-third of users. More than 50 per cent of income from DVD sales. Bonton Home Video users are under the age of twenty five. controlled 36 per cent of the video market in Eighty per cent of all users are under the age 2000; Warner Home Video controlled 26 per of thirty five. Many of the youngest users cent of the market. share a computer when accessing the Net; up to five young users often share the same The Internet and machine. People over the age of twenty five related on-line media usually have a computer of their own. Twenty six per cent of users are university- The first computer in Czechoslovakia, owned educated, 62 per cent of users have secondary

by∨ the Prague Technological University education. Most users of the Internet still (CVUT), was connected to the Internet in come from the information technology November 1991. Officially, Czechoslovakia sector. Most live in large towns or their was connected to the Internet in February vicinity. Sixty per cent of Czech Internet 1992. Initially the Internet was developed in users use the Net daily.

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POLITICS, POLICY, Broadcasting, the Council for Czech (public service) Television, the Council for Czech LAW AND REGULATION (public service) Radio and the Advertising Council. As can be seen from the above, The media system in the Czech Republic is especially from the recent history of Czech primarily regulated by the Press Act (No. Television and Nova Television, the regula- 46/2000 of the Collection of Laws, promul- tory institutions in the Czech Republic are gated in February 2001) and by the Act on weak and are often accused of political bias. Radio and Television Broadcasting (latest The future of the media in the Czech update in May 2001). It is also governed by Republic depends on the future develop- the Czech Bill of Fundamental Rights and ments in the political arena. At the moment, Freedoms (Act No. 23/1991 of the Collection the main political parties exercise influence of Laws, promulgated on 9 January 1991). over the main media outlets, especially the The Czech Syndicate of Journalists published principal television stations, through infor- a Journalists’ Code of Ethics on 18 June 1998. mal behind-the-scenes contacts with top According to the Czech Press Act, the pub- management. It seems unlikely that the situ- lisher of a periodical is responsible for the ation will change in the future: politicians in truthfulness of published information. the Czech Republic find it convenient to Individuals who consider themselves harmed have docile and emasculated media. Foreign by information published by a periodical or owners do not seem to interfere in politics in in the electronic media have a legal right to the Czech Republic, since most political demand the publication of their reply. The developments in the country are too Czech Press Act gives journalists the right to abstruse for outsiders and are locked in the protect their sources of information, unless ‘inaccessible’ Czech langage. Foreign media the sources are involved in a criminal act. owners seem to be keen to exploit the Czech Periodicals which are not properly registered market for profit, flooding it with lowbrow with the Culture Ministry may be fined. entertainment material. This influence of The main regulatory organs for the media the down-market international media sector are the Council for Radio and Television is likely to grow stronger in future.

STATISTICS

Population (2001) 10,294,822 Number of households as economic units (1991) 3,983,900

Overall movie admissions (2000) 8,719,000 Books published (titles, by 1999) approx. 12,500

Print media Circulation of main daily newspapers (December 2001)

Mladá fronta Dnes 309,226

Právo 213,964 Lidové novinyˆ 88,835 Hospodárské noviny 74,968

Tabloid newspapers Blesk 320,913 Super 132,646

Sporting daily Sport 59,254 Regional newspaper, produced centrally Deníky Bohemia 442,290

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Broadcast Audience share of main (50 per cent + national reach) terrestrial, cable and media satellite television channels (%)

Terrestrial

Public∨

C∨ T-1 20.6 CT-2 11.5

Private TV Nova: 45.6 Prima TV: (data from January–February 2002) 17.4

Main ∨cable television providers UPC CR Intercable CZ

Satellite∨ television providers HBO CR (film channel) EastBox Digital (eighteen thematic programmes)

Main radio channels, with audience reach and share (data from the second half of 2001) Public∨ serviceˆ Audience Share(%)

C∨ Ro-1 Radiozurnál 1,012,000 12.2

C∨ Ro-2 Praha: 456,000 6.6

C∨ Ro Brno:∨ ˆ 142,000 2.0 C∨ Ro Ceskéˆ Budejovice: 107,000 1.4

C∨ Ro Plzen: 68,000 0.8

C∨ Ro-3 Vltava: 67,000 0.7

C∨ Ro Hradec Králové: 62,000 0.9

C∨ Ro-6 RSE: 52,000 0.4

C∨ Ro-Regina 1: 39,000 0.4

C∨ Ro Ústí nad Labem: 36,000 0.4

C∨ Ro Olomouc: 28,000 0.3 CRo Ostrava: 28,000 0.4 Private Nationwide Radio Impuls 979,000 13.4 Frekvence-1 749,000 9.5

Regional/local

Radio Blaník 347,000 5.0 Country Radio 152,000 2.0

Kiss Hády 130,000 1.7 Radio Orionˆ 129,000 1.6

Radio Vysocina∨ 114,000 1.7 Radio Cas 108,000 1.4

Audience reach of all main forms of satellite, cable or terrestrial pay-television

Main cable television providers

∨ UPC CR: operates 372,000 sockets, reaches 700,000 households. Intercable CZ: operates 200,000 sockets, reaches 350,000 households. TES Media: operates 85,000 sockets.

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Main satellite television providers

EastBox Digital FTV Prima

CET 21∨

HBO∨ Ceská republika Ceská programová spolecnost

There are no terrestrial pay-television stations in the Czech Republic.

Percentage of households with video-cassette recorders, satellite receivers, DVDs, 2000.

Video 48 Satellite receivers 8.8 Cable television 25.4 DVD n.a.

Electronic No digital reception in the Czech Republic. media Households with access to the Internet, December 2000 14.0 Inhabitants with a mobile phone, end of 2001 68.9

Advertising Television 46 spend (%) Print 37 Radio 7 Street/billboards 7 Internet 1 Other 2

Ownership The largest daily newspaper publishers

∨ Blesk, Ringier CR Mladá frouta Dnes, Mafra Právo, Borgis Super, E-media Lidové noviny, Lidové noviny ∨ Hospodárské noviny, Economia

Mafra and Lidové noviny are owned by Rheinisch-Bergische Druckerei- und Verlaggesellschaft, Germany. E-media is owned by Epic Holding, Austria. Economia is controlled jointly by the Wall Street Journal and Handelsblatt.

The following major companies also publish magazines: ∨ ∨ ∨ Ringier CR: ABC mladých techniku° a prírodovedcu°, Blesk, Blesk magazín, ∨ Nedelní Blesk, Reflex, Týdeník Televize.

MAFRA (owned by Rheinisch-Bergische Druckerei- und Verlaggesellschaft, Germany): Magazín Dnes+TV, the Internet news portal iDnes, Mladá fronta Dnes.

∨ Axel Springer Praha: Auto Exclusive, F1 Racing, Playboy, Auto Tip, Autoprofi, Svet motoru°, Hokej, Popcorn.

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Bertelsmann Springer Cz: Technický týdeník, Doprava a silnice, Istav – Informace ve stavebnictví, ∨ ∨ ∨ Stavba, Mu°j du°m, Stavební prírucka, Stavebniny pro mu°j du°m, Mozaika, Katalog uzitkových vozidel, Trucker, Materiály pro stavbu, Katalog rodinných domu°. Truck Katalog – Katalog ∨ ∨ ∨ uzitkových vozidel, Doprava a cesty, Spotrebice pro domácnost, Koupelna a její vybavení, Okna, ∨ ∨ dvere, zimní zahrady, Vytápení, Podlahy, Panel Story.

Borgis: Magazín Du° m a bydlení, Magazín Právo, Právo, TV, Televizní týden: ˆ ˆ Burda Praha: Anna, Krízovky, Katka, Speciál Cinema, Autohit, Betynka, Byrda, Náš útulný byt, ∨ ∨ ∨ Nejlepší recepty, Naše krásná zahrada, Bydlíme s kvetinami, Svetzeny.

∨ Ceskoslovenský sport (owned by Ringier): Sport, Volno.

∨ E-media (owned by Epic Holding, Austria): Super, Super Magazín, Super nedele.

∨ Economia (controlled by the Wall Street Journal and Handelsblatt): Hospodárské noviny, Marketing ∨ & Media, Právní rádce, Moderní obec, Bankovnictví, Ekonom, Listy, Logistika, Modernírízení, ∨ Obchodní vestník, Odpady, Ovel, Stavitel, Technik, iHned.cz, mam.cz, Víkend HN.

Europress:∨ Bravo,∨ Bravo∨ Girl! Bydlení,∨ Chvilka pro tebe, Napsáno zivotem, Praktik, Rytmus Zivota, Tina, Zena a Zivot, Dívka, Cas na lásku. Lidové noviny (owned by Rheinisch-Bergische Druckerei- und Verlaggesellschaft, Germany): Lidové noviny, Pátek Lidových novin.

∨ Mona (owned by VNU Magazine Group International, Netherlands): Puls, Praktickázena, Ring, ∨ ∨ ∨ ∨ ∨ Story, Týdeník Kve ty, Vlasta, Beau Monde – Bájec ný svet, Prekvapení, Strecha nad hlavou, ∨ ∨ Kuchynepro labuzníky, Pu°dní byt, Nové byty a pozemky, Koupelka, Men’s Health, Postgraduální medicina, Sestra, Zdravotnické noviny, zdn.cz, Singmaking, Strategie, istrategie.cz.

∨ ∨ Vltava-Labe Press: Deníky Moravia, SD, Severoceské deníky Bohemia, Jihoceské Deníky Bohemia, ∨ ∨ ∨ ∨ ∨ Západoceské Deníky Bohemia, Vecerník Praha, Východoceské Deníky Bohemia, Stredoceské Deníky ∨ ∨ Bohemia, Slovácko, Naše Opavsko, Týden u nás, Vyškovské noviny, Breclavsko, Prostejovský týden, ∨ ∨ Nové Prerovsko, Hranický týden, Moravský sever, Slovácké noviny, Naše Valašsko, Novýzivot. The largest private radio stations: Frekvence-1. Largest owners: Europe Développement International, 63.8% Evropa 2, 25.5%. Radio Impuls. Owners: Ing. Ivan Bat’ka, 34%; Eurocast Rundfunk Beteiligungs 66%. The main commercial television broadcasters: ∨ CET-21/television Nova. Owners: PhDr. Vl. Zelezný, 11.8%; Vilja, 21.5%; Mgr P. Kršák, 16.6%; CEDC ∨ ∨ Management. Services, 1.4%; Ceská sporitelna, 0.2%; MEF Media, 24.0%; Edikon, 24.5%. FTV Premiéra, Prima television. Owners: Domeana, 29.3% (100% owned by GES Holding); GES Real Investment, 70.7%. ∨ The largest cable television providers UPC Ceská republika (UPC Czech Holding, Nizozemsko, owned by United Pan-Europe Communications, Nizozemsko). Owners: ICT, Los Angeles, 0.03%; UPC Czech Holding, 99.97%. Intercable CZ, Vision Networks Tsjechie Holding, Nizozemsko. Owner: Vision Networks Tsjechie Holding, 100%. TES Media, Central Europe Cable Holdings (ING Baring, USA). Owner: Central Europe Cable Holdings, 100%. Satellite TV providers EastBox Digital. Owner: New Media Investment, Švýcarsko, 100%. ∨ HBO Ceská republika. Owner: Ceska Holdings, USA 100%.

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NOTES Czech Culture ministry, , 2000, http://www. vyzkumInternetu.cz/zav_zprava/v_inter_C.pdf 1Source: ABC CR, the details published by M&M (Media &Marketing), www.mam.cz. REFERENCES 2ditto. 3 ditto. ∨ 4Source: A.C. Nielsen, the details published by Kroupa, Vladimír, and Smíd, Milan, “The M&M (Media &Marketing), www.mam.cz. Limitations of a Free Market: Czech Republic” 5Source: http://www.istrategie.cz/data/ov_nak_ pp. 61–110, in The Development of the per_tisk/casopisy/2001_07_01.htm Audiovisual Landscape in Central Europe since 6 1989, ULP/John Libbey Media, Luton, 1998. Source: ABC CR, the details published by M&M ∨ (Media &Marketing), www.mam.cz Smíd, Milan, Média, internet, Nova a já, (The 7Source: A.C. Nielsen, the details published by media, the internet, Nova TV and myself), ISV Publishers, Prague, 2000. M&M (Media &Marketing), www.mam.cz ∨ 8See the Internet pages of the Union of Czech Smíd, Milan, Kaplan, Frank, L. and Trager, Robert, Booksellers and the analysis by its Chairperson, Dr. ‘The Czech Republic’s Broadcasting Law: Provi- Jaroslav Císar, at http://www.sckn.cz/ckt/ index.html. sions, Problems and Expectations.’ http://www. 9 grady.uga.edu/coxcenter/MonoCzech2.htm. See the relevant quarterly and annual reports, ∨ submitted by CME to the US capital markets regu- Culík, Jan and Pecina, Tomás, V hlavních lator Securities and Exchange Commission, zprávách: Televize (On the Main News: http://www.sec.gov. Television), ISV Publishers, Prague, 2001. 10See the 2001 Annual Report of the Council for Culík, Jan, articles on the Czech media in Central Radio and Television Broadcasting, Section 3.2.1, Europe Review, see http://www.ce-review.org/ http://www.rrtv.cz/zprava2001/321.html authorarchieves/culik_archieve/culik_main.html, 11See the 2001 Annual Report of the Council for passim. Radio and Television Broadcasting, Section 3.2.4, Culík, Jan an entry on Czech Republic, in http://www.rrtv.cz/zprava2001/324.html . Censorship: World Encyclopedia, vol. 1., edited 12See the report (in Czech) at http://www.arbo- by Derek Jones, Fitzroy Dearborne Publishers, media.cz/uploads/updoc/odhady_vydaju_200108 London – Chicago, 2001, pp. 621–631. 30.pdf Quarterly and annual reports, submitted to the US 13See the 2001 Annual Report of the Council for Securities and Exchange Commission, see Radio and Television Broadcasting, Section 3.3, http://www.sec.gov. http://www.rrtv.cz/zprava2001/33.html . Reports of the Czech Council for Radio and Television 14See the 2001 Annual Report of the Council for Broadcasting, see http://www.rrtv.cz/ en/. Radio and Television Broadcasting, Section 3.4, Radio and Television Systems in Central and Eastern http://www.rrtv.cz/zprava2001/34.html . Europe, Council of Europe Publishing 1998. 15See the information of the Czech Culture Kaid, Lynda Lee, Television and Politics in Evolving Ministry (in Czech) http://www.mkcr.cz/?menu= Democracies, Nova Science Publishers Inc., 1999. 5&department=10 Osvaldová, Barbora, Zpravodajství v médiích 16Report on the current state of the Czech Cinemato- (News reporting in the media), Prague, graphy, 2000, the Czech Culture Ministry, Prague. Karolinum 2001. 17See the Report on Internet in the Czech Republic Jirák, Jan and Köpplová, Barbora, Média a spolec- (Výzkum Internetu) Network media service and the nost (Media and society), Prague, Portál, 2003.

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4: Denmark

FRANDS MORTENSEN

NATIONAL PROFILE with Social Democratic leadership ruled until 2001, when Venstre formed a centre- Denmark has a population of 5.3 million right government and its leader became spread over 43,069 km2. The country is as Prime Minister. flat as a pancake, and therefore easy to cable Denmark is a capitalist society with a large and cheap to provide with terrestrial broad- public sector, but the state has very limited casting. Urbanization is uneven, with 1.5 involvement in industrial production. The million living in the capital Copenhagen, standard of living is high, as is the distribu- 1.4 million in provincial towns with more tion of consumer goods. Most Danes think than 10,000 inhabitants, 1.2 million in Denmark is one of the leading examples of a towns with more than 1,000 and 1.2 million welfare state. Media policy is an issue for in the rural areas. The number of households debate in Danish society, but it has never is 2.44 million. Danish is the language spoken been close to becoming the main election by everybody except a limited number of issue. refugees and guest workers (immigrants make up 7 per cent of the population). Denmark is, compared with many other STRUCTURE AND OWNERSHIP countries, a relatively homogeneous society with respect to culture and values. Denmark has been a member of NATO The print media since 1949 and of the European Union since 1973, but there is an old tradition of cultural The newspaper press and political affiliation with the Nordic A close relationship between newspapers and countries, and Scandinavia is often consid- political parties existed as the press devel- ered as one unit (but it should not be in rela- oped over the last century, reaching a peak at tion to media markets). the time of the First World War when 150 The political system is a multi-party newspapers were published. But competition system with more than ten political parties and commercialization of the press began a standing at elections and eight to ten parties process of concentration. In 1945 there were elected to the parliament (Folketinget). No 123 newspapers, in 1982 forty seven, while in single party has a majority and the political 2002 the number was twenty nine. The cir- system has for decades made compromise culation was, in 1945, 1.7 million copies decisions. The government has nearly always (with 4 million Danes), in 1982 1.8 million been a coalition, and for the last thirty years copies (and 5.1 million Danes) and in 2002 always a minority one. The Social Demo- 1.4 million copies (and 5.3 million Danes). cratic Party has for more than half a century Despite an increase in population (and even been the largest party, but that came to an more so in the number of households, as end in 2001, when Venstre (a liberal party) one-third of Danes now live alone) the total overtook the Social Democrats. For ten years circulation has decreased, especially in the from 1983 Denmark had a centre government last fifteen years. Most of the closures took under the leadership of the Conservative place in the provinces, resulting in a mono- Party, then in 1993 a centre-left government poly for city newspapers. In the capital the 3103-Ch-04.qxd 11/13/03 12:15 PM Page 44

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number of papers decreased from thirteen Until the arrival of Orkla the owners of in 1945 to ten in 1982, and seven in 2002. the Danish press regarded themselves as Furthermore, newspapers are no longer affili- publishers, not as capitalists. The object was ated to political parties. After the closure of high circulation figures, not net profit. Orkla the last Social Democratic paper in 2001, it is demands 15 per cent return on invested commonly acknowledged that all Danish capital, a figure that no Danish paper has newspapers are to be found at the centre/right shown for the last twenty years. It is, how- of the political spectrum. The most left-wing ever, generally recognized that the financing paper (Ekstra Bladet) has a former Conser- of the press will increasingly have to rely on vative Minister of Justice as editor-in-chief! the more efficient use of existing resources. Only three Danish papers can be charac- The number of pages rose by thirteen in the terized as national papers, two of them are non-local broadsheet papers between 1985 tabloids (B.T. and Ekstra Bladet), while the and 2000 and by five in the local papers, but biggest one is the broadsheet Morgenavisen in 2001 the three biggest broadsheet papers Jyllands-Posten, which is not, like the reduced the number of pages and announced tabloids, published in Copenhagen, but in further reductions in both editorial pages the biggest town of the provinces, Århus. and special supplements. The rest of the papers published in the capi- The Danish press is dependent on adver- tal circulate mostly in Copenhagen, while tising to a varying degree. For the big broad- papers in the provinces also tend to circulate sheets and tabloids, 55 per cent of income in the town of publication. Only four have comes from newspaper sales, 42 per cent regional distribution. Besides the two from advertising, and only 3 per cent from tabloids and three special papers, all the other activities. The regional papers get 42 papers are broadsheets of the omnibus type per cent of their income from sales, 48 per (written for everyone on everything), with cent from advertising and 10 per cent from the provincial papers increasingly concen- other things, while the local provincial trating on local material. papers get 36 per cent from sales, 28 per cent Denmark has Sunday papers, which are from advertising and 35 per cent from other Sunday editions of the weekday papers, and activities, especially printing. Two different the circulation has been quite constant. trends have appeared in relation to press In 2001 there were ten Sunday papers with advertising. Denmark had a boom in the 1.3 million copies distributed. The figures for 1990s, and advertising expenditure grew 1982 were eleven titles and 1.2 million copies. 50 per cent between 1994 and 2000. In 2001 The biggest structural change in the last a recession started, and it has not stopped fifteen years has been the decline of the yet. Second, there has been some shifting in tabloids. Their circulation has halved since the placement of advertisements. Newspapers the break-up of the television monopoly in have seen their share of the total advertising 1988 and the start of satellite television in spend decline from 32 per cent to 29 per Danish in 1990. Since then, sex, violence cent, while electronic media increased their and royal gossip are no longer a monopoly share from 19 per cent to 21 per cent. But of the tabloids. The three biggest broad- not all print media suffered in this way. The sheets (so-called quality papers) have advertising spend in the free local weeklies together had quite a success, both in and free consumer magazines has increased absolute figures and relative to other papers. from 20 per cent to 23 per cent. The Danish press is entirely privately Readership patterns, however, show owned, mostly in the form of limited com- danger signals for the print media, and espe- panies, and often organized as foundations cially for newspapers. In the 1970s it was in order to prevent hostile take-overs. common knowledge that 90 per cent of Concentration of ownership was moderate Danes had read a weekday paper yesterday. In until the 1980s. Then Det berlingske Officin 2001 the figure was just below 75 per cent, started to buy some weak papers in the while in terms of age, 85 per cent of those provinces. In 2001 the company was taken over fifty years had read a paper yesterday, but over by the Norwegian industrial conglomerate only 65 per cent of those under thirty. Orkla. The latter now controls one-third of the total circulation of daily newspapers. Foreign ownership had not existed until The periodical and magazine press then, except the ownership by the Swedish The weekly magazine press has for twenty company, Bonnier, of the financial paper years been totally controlled by two Danish Børsen. media companies, Egmont (a third of the 44 3103-Ch-04.qxd 11/13/03 12:15 PM Page 45

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circulation) and Aller (two-thirds). The total Statsradiofonien see under ‘Radio’). The circulation was 1.7 million in 2001, a fall studios and management were based in from 2 million in 1982. Women’s maga- Copenhagen. In the 1970s DR established zines, only three in number, made up 14 per only one studio outside the capital, namely cent of the circulation in 2001, compared in Århus. DR produced all the Danish mat- with 21 per cent in 1982. The biggest group erial itself, except some popular drama, and is family magazines, with four titles and 45 bought about 50 per cent abroad, especially per cent of circulation in 1982 and 42 per from the United Kingdom and United States. cent in 2001. The one with the biggest Cable television started in the 1960s, when circulation is Familie Journalen, a very tradi- the Danes formed communal aerial installa- tional family magazine (1.2 million Danes tions and so gained access to broadcasting still live in rural areas). The gossip and tele- from Sweden, and from West and East vision magazines (with a lot of stuff on the Germany. By the beginning of the 1980s two- royal family) is the only growing group: four thirds of the population had access to foreign titles and 0.5 million copies in 1982 and 0.7 television, either by cable or, along the bor- million in 2001. The magazine press was a der, by terrestrial reception. A third of view- gold mine in the 1990s, although advertis- ing time was spent on foreign television. ing income (which contributes only 15 per Digitalization of television began in 1998 cent of the total income of weekly maga- in cable and satellite. In 2001 there were zines) stagnated. Of total advertising expen- 46,000 digital cable households and 150,000 diture, only 3 per cent goes to magazines. DTH households on two platforms: ViaSat, Readership figures show that 75 per cent owned by MTG, and Canal Digital, owned by read at least one weekly magazine in 1982; Telenor, but development is slow. Terrestrial in 2001 this figure grew to 80 per cent, digital television has been legislated for by despite the fall in total circulation! the parliament four times, but nothing has happened yet. The appearance of satellite television in Book publishing 1982, when EUTELSAT Council allowed In 1990 there were about 11,000 book titles Satellite Television (later bought by Rupert published and sales revenue was DKr 1.8 Murdoch and renamed Sky Television), was a billion. The figures grew slowly but steadily shock, also for Danish politicians. As part of to 14,500 titles and DKr 2.6 billion in 1999. a national cultural self-defence they decided Profit was low, about 4 per cent of turnover. to break up the monopoly of DR and create Three publishing groups became dominant a new national television station. It was in the 1990s with the Danish Gyldendahl named TV-2, started broadcasting in October group as the leading one, from both an eco- 1988 and had five purposes. nomic and a cultural point of view. The First, it should protect Danes from foreign other ones are Bonnier Forlagene (owned by cultural influence. Second, it should create Bonnier) and Egmont group (owned by competition regarding news broadcasting; Egmont). Together they have about 50 per DR had been accused of a left-wing report- cent of total turnover. In 1999 3,300 titles ing bias. Third, it should move outside the were translations, 70 per cent from English, capital, and accordingly the headquarters 13 per cent from Scandinavian languages, were located in Odense, and eight regional 7 per cent from German and 4 per cent from television stations were built. Fourth the French. The rest of the world together took heavy bureaucracy of DR should be avoided 5 per cent. Non-fiction dominates with by placing most of the programme produc- 11,000 titles in 1999, fiction 3,300. Also tion outside the station with independent published were about 2,000 titles for producers (following the model of Channel children and young people, a slow growth 4 in the United Kingdom). And finally from 1,200 in 1990. The old system of fixed advertising should be allowed (but only book prices was given up in 2001. between programmes, and no advertising for alcohol), but should not be the only The electronic (audio-visual) media income. TV-2, which like DR is an indepen- dent public institution with public service Television obligations, also draws on licence fee The broadcasting of television started on a income. In 1990 this constituted 36 per cent regular basis in 1953 as part of the radio of the total income, in 2000, 27 per cent. monopoly Statsradiofonien, later Danmarks DR and TV-2 are the only national terres- Radio, now DR. (On the establishment of trial television channels. In 1983 local 45 3103-Ch-04.qxd 11/13/03 12:15 PM Page 46

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channels were allowed, being transmitted success. TV-2, after only a year, was the most terrestrially and by cable, and thirty four frequently viewed channel in Denmark, and stations tried to survive. At the start there still is. Together with DR, TV-2 had more was no state support, and advertising was than two-thirds of all viewing time in 2001. allowed in 1988, so survival for the local But the public service channels have a stations was hard. They did not play any problem attracting younger viewers. Those significant role, apart from the local station between the ages of twelve and twenty years in Copenhagen, Kanal 2, until networking spend only 56 per cent of their viewing time was introduced in April 1997. Eleven of on the channels of DR and TV-2, those them then formed the network TvDanmark, between twenty one and thirty four 60 per controlled by SBS, a US company located in cent, and those over fifty five 76 per cent. Luxembourg. The finance available in the Danish televi- Satellite television in Danish started in sion system has developed tremendously. In 1990, when the MTG-owned Scandinavian 1990 it was DKr 2.1 billion; by 2000 it had channel ScanSat split into three national more than doubled to DKr 4.9 billion. channels and created TV-3 Danmark. The Licence fee income for television increased station was located in the United Kingdom, from DKr 1.3 billion in 1990 to 2.2 billion in on the grounds of UK advertising rules that 2000. However, in percentage terms this allowed programme breaks and advertising represented a reduction from 62 per cent to for alcohol. In 1995 MTG launched two 45 per cent of total income. Advertising channels, ZTV for youth and TV-6 for increased from DKr 0.6 million to DKr 1.8 women, but their success was limited, and in billion and pay-television grew from DKr 0.2 1996 they were united and renamed TV3+. billion in 1990 to Dkr 0.9 billion in 2000. TV-3 and TV3+ are based on advertising, but But even with this increase, there is not in the late 1990s they started to collect low enough money in the system for eight pay-television charges. Sport and US series national channels. and films dominate the programming. News broadcasting stopped in 1999. Radio In 1996 DR started a satellite channel, In 1926 the monopoly of radio broadcasting DR-2, a public service channel, which was given to Statsradiofonien, following the reaches only three-quarters of all house- model of the BBC in the United Kingdom. holds. Programming is very serious (nick- From the very beginning, it was to be name ‘Channel Clever’), financing is by financed by licence fees, and thus the cost of licence fee. TV-2 also has a satellite channel broadcasting should not burden the state which started in October 2000 named TV-2 budget as such. No commercials were allowed. Zulu, a youth channel, financed by advertis- Statsradiofonien (since 1964 Danmarks ing and the licence fee. And in January 2000 Radio, now DR) has the status of an inde- TvDanmark created a new satellite channel, pendent public institution, and therefore is TvDanmark 1, located in London, while the neither a private business nor part of the terrestrial network was renamed TvDanmark state apparatus. The responsibility for broad- 2. Programming is as for TV-3. casting matters has been placed with a vari- In March 1997 DR, TV-2 and the national ety of Ministers over the years. At present it telecom, TDC, started a sports pay channel belongs to the Ministry of Culture. in cable, but it closed in December, after The first AM radio channel, P-1, was in losses of more than DKr 200 million. 1951 joined by a second, P-2, both of them So since October 2000 Denmark has had national channels. The international fre- eight national TV channels and two pay-TV quency conference in Stockholm in 1961 film channels with Danish subtitles (TV assigned Denmark four national FM channels, 1000 and Canal+ Danmark), while there are and in 1963 DR started a third music channel, still only 5.3 million Danes. Foreign television as a counter-move to a very popular com- can be received in 80 per cent of the house- mercial Danish pirate radio channel, broad- holds, Three-quarters have access to at least casting from a ship in the Øresund and twenty four channels, but the Danes prefer closed down by the police in 1962. In the their national television. Eighty-eight per 1970s DR slowly developed regional radio cent of all viewing time is spent on the channels as part of the second channel. The Danish television stations. regional system was completed in 1982 DR and TV-2 are public service institutions when the ninth station opened. with an obligation to broadcast a diversity of The fourth channel was assigned to programmes, and they have been quite a Denmark in 1984 in connection with the 46 3103-Ch-04.qxd 11/13/03 12:15 PM Page 47

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international expansion of the FM band Before the channel reform of 2001 DR P-1 from 100 MHz to 108 MHz, but was not (culture, art, current affairs, news) had a 6 brought into service at once. This surplus per cent share; P-2 Music (a shared channel frequency became part of an intensified with P-4, broadcasting nights and weekends) debate in the 1980s and 1990s on how to had a share of 4 per cent; P-3 (the popular break the monopoly of DR in national and music channel) 23 per cent and P-4 (a regional radio broadcasting. regional channel shared with P-4) had a The problem played a central role in the share of 33 per cent. negotiations about the Media Agreement The answer from DR to the generation 2001–4, when a majority of the parties problem has been to build up a more aggres- decided to invite tenders for both a fourth sive strategy. P-3 and P-4 are now more dis- and a fifth nationwide radio channel, the tinctively both age and music-formatted – P-3 latter reaching only around 80 per cent of aiming primarily at thirteen to thirty and P-4 the population. The presupposed content of at twenty-five and over. Computer-aided the channels was described in a way that select systems for music have been developed made the fourth channel most attractive to along the same lines as for the commercial DR (classical and modern music, speech, local radio stations, only with more Danish news and current affairs), while the fifth music. In order to keep a public service profile channel was supposed to be purely and to serve the youth audience needs for commercial, but having an obligation to quality news, P-3 in 2001 launched formatted offer news – ‘comparable to the level of DR’. news during peak hours (noon to 6.00 p.m. Even though eight private companies took on weekdays). This has been a controversial part in the tender, the new Radio and initiative, offending the traditional advocates Television Board decided to allocate the of public service news as news for all citizens, fourth channel to DR. The channel was setting a common agenda. On the Web site launched during spring and summer 2001. you will find all DR channels streaming and Whether the fifth channel or even more in addition three music style formatted Web nationwide radio channels will be put up to channels for the young audience (twelve to an auction will depend on the revision of twenty): SKUM 1, SKUM 2 and SKUM 3. the Media Agreement, announced by the The commercial local radio sector is still new government to take place during 2002. not allowed to network except for short Local radio is organized in two layers. The news programmes and during night-time. first consists of a commercial layer of around Radio commercials have a share of the total 100 local radio stations. Here three major advertising market which is less than 2 per network company stations have developed cent, and a considerable number of the through proxies in spite of the legislation commercial stations are running on the against networks. A few independent local edge of bankruptcy or acting in a grey area stations dominate this group. The non- between information and commercials. commercial layer consists of approximately 120 stations, covering a wide range of com- Film and video munity interests, run by non-profit local In 1988, when the television monopoly was organizations and associations. The non- broken, there was already a process of con- commercial stations can apply for public centration occurring among Danish cinemas. subsidies from the Ministry of Culture for In nearly all the towns of the provinces, basic costs and financing of special pro- there was a cinema monopoly, if there was a gramme productions. The amount of this cinema at all. Fifty per cent of municipali- public fund is DKr 50 million per year. ties had no cinema in the 1980s. Only in DR, which since 2001 has had four channels, Copenhagen was there real competition had a high and stable share of the radio between two chains, Nordisk Film (now market during most of the 1990s, i.e. 80 per owned by Egmont, the biggest media com- cent in 1994. But in later years its market pany in Denmark), and Metronome (now share has declined, to 65 per cent in 2000. Sandrew Metronome). This situation has not Weekly reach among the young audience changed much; some twenty cinemas have during the same period has fallen to 31 per closed since then, and in 2001 there were 164 cent for the age group twelve to nineteen cinemas with 350 screens. There is only one years, and this indicates that DR has devel- national chain, Nordisk Film. Cinecity, a oped a serious generation problem. The German company which tried to build up a younger audience groups (twelve to forty national chain, collapsed and their cinemas years) seem to prefer local commercial radio. were put up for sale. 47 3103-Ch-04.qxd 11/13/03 12:15 PM Page 48

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The number of screened films has declined gender are also major factors, e.g. 41 per tremendously, from 1,216 in 1988 to 621 in cent of men access the Internet every day, 2000. Most of them (315) are American. Of compared with 30 per cent of women. the new releases (in total 192), 108 are from The most frequent use is reported to be the United States, seventeen are Danish and e-mailing – 39 per cent use the Internet fre- fifty one from other European countries. quently for that purpose, and the same goes Admissions in 1988 were nearly 10 million, for searching out specific information. Net and this figure is rather constant: in 2000, banking is used frequently by 25 per cent of 10.6 million. In terms of films watched, users. In 2001, 21 per cent of the population 7.5 million watched US films, 2 million had purchased goods or commodities on watched Danish productions, with just the Internet during the last year, most 1 million watching European and other films. frequently tickets for cinemas, concerts or The distributor market is dominated by theatres. four companies: Nordisk Film with 29 per The Internet as a medium for advertis- cent of titles, UIP with 26 per cent, Sandrew ing has not proved its efficacy compared Metronome with 18 per cent and Disney/ with the print and electronic media, but Buena Vista with 12 per cent. Their share of none the less there has been a rapid admissions is nearly the same. growth in advertising expenditure, from Gross box office including VAT was DKr DKr 85 million in 1999 to DKr 316 million 330 million in 1988; in 2000 it had gone up in 2000. to DKr 554 million. Of the top twenty feature Among the fifteen most popular Danish films, there were fourteen from the United Web sites are the Internet versions of three of States in 2000, and six from Denmark. the major daily newspapers. The two public The production of Danish film went up in service broadcasting companies – DR and TV- the late 1990s, encouraged by state subsi- 2 – are among the top ten, indicating the use dies. The Danish Film Institute, established in of the Internet as part of the ‘multiple plat- 1972, has a total budget of DKr 349 million, form strategy’ of the traditional media. with DKr 196 million used to subsidize Especially in youth programming, you will production and development, and DKr find examples of interactivity between audi- 44 million for distribution and marketing. ence and programmes, involving radio, tele- The number of feature films produced has vision, mobile phones (SMS), e-mail and gone up from approximately ten per year in chat, but most of the programme-related the 1980s to seventeen in 2000, while the material is additional information. A growing official target is 24 per year. number of radio and television programmes The Danish video market is the double of from the public service providers are stored the cinema market. In 1999 turnover was and accessible to the public for a period of DKr 1.1 billion, a figure that has been almost time after broadcasting. the same since 1996. Selling and rental take Broadband Internet has not been a success nearly 50 per cent each. Titles are the same yet. Nearly 90 per cent of households have a as in the cinemas, but with one-year delay. possibility to get ADSL, but only 152,000 had subscribed by the end of 2001. The price The Internet and related on-line media is also high: approximately DKr 10,000 for 2 Mbit/s per year. In 2001 every other household (54 per cent) had access to the Internet, compared with 1997, when the figure was as low as 8 per cent. Forty-seven per cent of families had a POLITICS, POLICY, personal computer in their home in 1997 – in 2001, 69 per cent. Of the entire popula- LAW AND REGULATION tion, 73 per cent had access to the Internet, either at home or at work. These figures No general principle guides overall media place Denmark among the top five of policy. The electronic media have been regu- Internet-literate nations. Behind these lated carefully and in detail, and a market figures will be found considerable demo- economy has only slowly been introduced. graphic differences regarding use. Students The print media on the other hand have had are the most frequent users of the Internet very limited regulation and by and large (96 per cent). Among people not included in have lived according to that logic. the work force only 23 per cent have access Until 1980 there was no explicit media to the Internet at home. Age, education and policy. Then the government established the 48 3103-Ch-04.qxd 11/13/03 12:15 PM Page 49

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Royal Media Commission with the assign- laws specify and set limitations on this free- ment to create a coherent national media dom, notably the press law, the penal code policy. This resulted in six reports in the and procedural law. The legal framework of mid-1980s, but in parliament there was no the press does not encompass monopoly majority to transform the recommendations regulation (as does the general EU system), into law. The same happened when a media but it does provide for a state subsidy committee was at work in the mid-1990s. So scheme. the media system remains a patchwork with The laws deal with editorial responsibility, no dominant principle, to the despair of the right of reply, the right to privacy, libel, every systematist. defamation, incitement to crime, and the The system has always been considered as right of journalists to protect their sources. a national one, and foreign players have In addition to the legal regulations the press been rare, for which reason Orklas’s take- has created a set of voluntary ethical rules over of Det berlingske Officin was a real which were incorporated in law in 1991. At shock. For years there was a tendency to this point the press law’s system of editorial ignore the media policy of the European responsibility was expanded to include Union, but that changed in the late 1990s. broadcasters. Until 2001 the electronic media system Unlike the other Nordic countries, was regulated directly by the Ministry of Denmark does not have a tradition of active Culture, and most decisions were open to political intervention in the newspaper busi- political debate. Now the situation has ness, as for instance through direct subsidy. changed. A new and totally independent The existing subsidy – exemption from VAT Radio and Television Board has been set up. and cheap postal rates – is difficult to evalu- The major tasks of the Board are to issue ate precisely. But in 2001 the value of the final permits to two new territorially based cheap postal rates was DKr 0.25 billion, analogue radio channels, and to the future while exemption from VAT was about DKr digital radio and television channels. In 0.75 billion. But although this form of sub- addition the board must carry out tasks pre- sidy helps the industry by enabling it to sell viously handled by the old ministerial com- its product relatively cheaply, it does noth- mittee on Local Radio and Television, the ing to change structural problems. On the Board for Radio and Television Commer- contrary, it supports the biggest papers most. cials, and the Satellite and Cable Board, Despite the fact that many newspapers are which have all been abolished. Apart from in crisis, it is not expected that the parlia- the above-mentioned tasks the Radio and ment will establish a system of direct sub- Television Board issues satellite and cable sidy. And newspaper owners and editors permits, handles cases of illegal advertising have consistently argued that direct subsidy and subsidies, hidden advertising, the super- would make the press dependent on the vision of advertising directed towards state in an unacceptable manner. children, and cases concerning the local radio and television area as second instance. The electronic media It also appears that the new Radio and Television Board will analyse and comment All national broadcasting is regulated by on the public service remit of DR and TV-2. the Broadcasting Act (Bekendtgørelse Another interesting, and more and more No. 701, 2001). In the same law the powerful, regulatory agency is the Danish community antenna network and other Competition Authority, which from 1998, types of cable networks are regulated, as well according to the competition law of the as satellite broadcasting. Included also are European Union, has started examining the rules on advertising and sponsorship. media system and made important decisions The general aims and scope of public on, for instance, sports rights and the domi- broadcasting (news, information, education, nant position of TV-2 in the electronic entertainment and art) are based on the main advertising market. objectives: quality, diversity and plurality. Fairness and impartiality are mentioned as The press objectives in relation to the transmission of information. Special consideration must be Freedom of the press goes back more than given to the Danish language and Danish 150 years, to the constitution of 1849. It culture, including the diversity of cultural gives everybody the right to impart infor- interests in Danish society as a whole. Also mation, and it prohibits censorship. Other the on-line activities, including Web services, 49 3103-Ch-04.qxd 11/13/03 12:15 PM Page 50

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of DR and TV-2 (http://www.dr.dk and broadcasting local programmes, are entitled http://tv2.dk) are made part of the public to a non-commercial licence and in most service obligations and as such subject to its municipalities several stations share a trans- rules (Broadcasting Act para. 6). mitter and one frequency, sharing the pro- Independent boards, appointed by the gramme hours. Local business companies, Ministry of Culture and the parliament, gov- including local newspapers, are allowed to be ern the public service broadcasting institu- part of the association. However, if a local tions. The Board of Governors for DR newspaper has a majority position it is consists of thirteen members, three required that the station serves as a forum for appointed by the Minister of Culture, a diverse local debate. A commercial licence including the chairman, eight by parliament can be issued to an association whose and two by and among the staff. The Board members represent a diversity of local busi- of Governors of TV-2 consists of twelve ness and cultural interests. In that case such a members. Eight of them, including the station will have a frequency of its own, an chairman, are appointed by the Minister. accepted prerequisite for commercial income. Two members are selected by the staff, and In 1997 networking was allowed for local two by the eight regional stations. As a television. However, the stations were whole the governors of the two boards must required to allow one hour for daily local have knowledge of the media, business man- news programming and three hours of so- agement and culture. Each of the eight called windows for non-commercial local regional TV-2 stations has a locally appointed television stations. One of the first acts of board, based on county and municipal rep- the new centre-right government was to resentatives and local associations. All abolish this requirement of commercial appointments are for four years. DR and TV- television stations (DKr 25 million per year). 2 each had its own Programme Advisory The Local Radio and Television Boards Board, with no real political influence, and furthermore have to monitor local pro- they were closed down in 2002. grammes in order to ensure that the regula- DR is financed exclusively by licence fees, tions concerning advertising, sponsorship TV-2 partly by advertising and licence fees. and sales of programme hours are not vio- Since 1990 the public service institutions lated. They have to prioritize among the have been given four-year budgets with an applications for programme support to the annual increase, recent years mainly follow- central fund and make sure that the funding ing the trend of prices and salaries. The is used as specified. In cases of disagreement licence fees are jointly collected by DR and between a station and the Local Radio and distributed by the Minister to the national Television Board, any decision can be broadcasters and – since 1997 – to other appealed to, to the central Radio and media, i.e. support of local radio and televi- Television Board, which makes the final sion programming (DKr 25 million, less decision. than 1 per cent of the total licence fee Major reform of this area has been on income – Dkr 3.2 billion in 2001). the agenda of the right-wing parties in The regulation of the first three radio recent years, allowing deregulation, i.e. channels of DR and the television channels increased access for commercial radio and of DR and TV-2 are handled by the Ministry television, both at a local and at a nation- of Culture. Other things, including the wide level. Included in that reform is fourth radio channel of DR, are under the the privatization of TV-2, leaving DR alone Radio and Television Board. as a public service institution, maybe even Parts of the regulation of local and com- with a reduced range of programming munity radio and television are decentral- possibilities, concentrated on ‘serious ized. Each municipality, or a group of programming’. neighbouring municipalities, has an obliga- The problem for the centre-right govern- tion to form a Local Radio and Television ment is that public service programming is Board, appointed by the town council. quite popular with viewers. TV-2 caters for Appointments are for four years. popular tastes, and among liberal and con- One of the major tasks of the local board is servative parties in the TV-2 regions there is to issue licences for local stations – local radio quite strong resistance to any plans to for a maximum of five years, local television ‘deregulate’ TV-2. for seven years. Only local associations, estab- The new government has not yet lished with the purpose of producing and announced its plans for a reform of the

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media policy, and it is uncertain what will The Internet and be proposed. Will Denmark have a true lib- related on-line media eral media policy reform or will the centre and right-wing parties still be closet Social As for the Internet-based media, there is no Democrats as they have been in media poli- specific policy. tics for the last twenty years?

STATISTICS

Figures are from 2001, unless otherwise indicated. National population 5,349,212 Number of households 2,444,000 Movie admissions (ticket sales) Overall admissions 11,920,000 Danish films 3,714,000

Books published, 1999 (titles) For adults 14,455 of which: Fiction 3,285 Non-fiction 11,170 For children and young people 1,916

Print media Circulation of main daily newspapers

National Morgenavisen Jyllands-Posten 179,243 Berlingske Tidende 147,849 Politiken 140,983 BT 128,660 Ekstra Bladet 127,853 Regional Jydske Vestkysten 87,123 Nordjyske Stiftstidende 81,693 Århus Stiftstidende 59,563

Broadcast Main terrestrial, cable and satellite television channels (with approximate audience share): media Distribution Reach(%) Audience share(%) Public TV-2 Terrestrial 99.7 35 DR 1 Terrestrial 99.8 28 DR 2 Satellite 78.1 3 TV 2 Zulu Satellite 65.3 2

Private TV-3 Satellite 70.9 8 TV-3+ Satellite 65.9 4 TvDanmark 2 Terrestrial 74.5 6 TvDanmark 1 Satellite 49.6 2

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Main radio channels, public and private, with approximate audience share, 2000 (%) Public P1 6 P2 4 P3 23 P4 33

Private Local radio/other radio 35

Percentage of households reached by all main forms of satellite, cable or terrestrial pay-television: Canal + Danmark 4.8 TV 1000 4.6

Percentage of households with video-cassette recorder, satellite receiver, DVD player: Video-cassette recorder 81.1 Satellite receiver 17.3 DVD player 7.2

Electronic Percentage of households with digital television reception, by whatever means: media Satellite 6.3 Cable 1.9 Total 8.2

Internet household penetration and use (%) Home 60 Work 53 Total 73

Mobile phone ownership and use Mobile GSM subscriptions, end 2001 3,935,797 Outgoing mobile traffic, July–December 2001 (minutes) 1,624,814,000 SMS sent, July–December 2001(number of messages) 730,912,000

Advertising Newspapers 30 spend, 2000 Magazines 3 (%) Television 16 Radio 2 Other 49

Ownership Main media companies, 2000 Turnover ¤ million Share of market Egmont 1,069 No holding in press/television Orkla Media 799 36% of daily newspapers DR 362 31.8% of television viewing TV-2/Danmark 203 36.3% of television viewing Politiken 199 18.7 % of daily newspapers Morgenavisen 146 13.6% of daily newspapers Jyllands-Posten

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REFERENCES Broadcasting, Film, Telecommunications and the Global Information Society in Europe. Ministry of culture home page: http://www.Kum.dk/ Carlsson, Ulla and Eva Harrie (eds.) Media Trends sw832.asp in Denmark, Finland, Iceland, Norway and Sweden. Goteborg: Noricom, 2001. Nikoltchev, Suzanne, Legal Guide to Audiovisual Media in Europe. Recent Legal Developments in

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5: Finland

MARINA ÖSTERLUND-KARINKANTA

NATIONAL PROFILE For centuries Finland was part of Sweden. For 100 years (1809–1917) it was part of Russia as an autonomous grand duchy Finland has 5.2 million people but it is sparsely under the Russian czar. Swedish remained populated. It has a total area of 338,145 km2 the administrative and cultural language and a population density of seventeen and the laws of the Swedish period remained persons per square-kilometres. Almost 70 per in force. Finnish became the majority lan- cent of its inhabitants live in cities. Vast areas guage of Finland, but it was not until the of the country are only thinly populated. 1860s that it was standardized (Alho, 1997) Finland has two official languages, Finnish and began to be used, when needed, in offi- and Swedish. The Swedish-speaking minority cial contexts. A legal statute gave both lan- amounts to 291,000 people, that is, 5.6 per guages equal status in 1902. Through a cent of the population. Most of them live in parliamentary reform in 1906 the unicam- the coastal areas of western and southern eral parliament was established as a parlia- Finland. Sámi is spoken by small groups, ment elected by universal suffrage. Finland mainly in Lapland. Foreign languages are was then the first country in the world spoken by 109,000 people as their mother to give women the right both to vote and language. Half-way between Finland and to stand for parliament. On 6 December Sweden are the autonomous Åland Islands 1917 Finland declared its independence. In with a population of 26,000, almost all 1918 there was a civil war, after which Swedish-speakers. Finland became a republic. The Constitu- The parliament is unicameral and its 200 tional Act of 1919 included a paragraph on seats are divided as follows (2002): the Social freedom of speech which gave everybody Democratic Party with fifty two, the Centre the right to publish printed or picture prod- Party with forty seven, the National ucts. It also affirmed Finnish and Swedish as Coalition Party with forty six, the Left Wing the official languages of Finland. This was Alliance with twenty, the Swedish People’s also stated in the new constitution which Party with eleven, the Green Party with came into force on 1 March 2000. On 1 eleven, the Christian Democrats with ten, January 1995 Finland joined the European the True Finns Party with one, the Alkio Union. Center Group with one and the Åland The economic recession at the beginning Islands with one seat. Of the 200 representa- of the 1990s hit Finland quite hard and led tives seventy four are women. to high unemployment. Even after the eco- The present government is an exception- nomic recovery and the resulting slow ally large coalition government (as was the decrease in unemployment, it was as high as previous one). The government includes 9.1 per cent in 2001. The effects of the reces- the Social Democratic Party (which holds sion were seen in the media, too, especially the Prime Minister’s post), the National within the newspaper sector and in media Coalition Party (conservatives), the Left advertising. In many ways Finland has been Wing Alliance and the Swedish People’s in the forefront of the new technologies Party. The Green Party left the government during the 1990s. One spectacular pheno- in May 2002. menon was its long-held leading position in 3103-Ch-05.qxd 11/13/03 12:15 PM Page 55

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world statistics both in the number of 14 per cent of the total newspaper circulation Internet hosts per thousand inhabitants and in Finland, and it is one of nine national in mobile phone penetration. Another was dailies. Besides the two evening tabloids and the great success of the electronics company some special interest (thematic) and politi- Nokia in becoming the world leader in cal newspapers, mostly non-dailies, the mobile communications. other newspapers are really more regional than national. The biggest Swedish- language newspaper, Hufvudstadsbladet, STRUCTURE AND OWNERSHIP founded in 1864, had a circulation of 53,000 in 2001. The newspaper business is the biggest media The three largest morning newspapers, sector, with over 70 per cent of media Helsingin Sanomat, Aamulehti (published by turnover. Relative to size of population, only the Alma Media Group) and Turun Sanomat Norway and Japan have a higher newspaper (published by the TS group), together make circulation. In the broadcasting sector, the up more than 20 per cent of the total circu- public service broadcaster YLE is strong, lation. The circulation figures of the main with a television audience share of 43 per newspapers are given in the statistics at the cent and a radio audience share of 56 per end of the chapter. Since 1980 the biggest cent. Ever since the advent of television, three have increased their market share Finland has also had a private television slightly, the evening tabloids have increased company, MTV, which is financed through their share quite substantially from 3.6 per advertising. cent, but the second newspapers’ share (i.e. newspapers in towns with at least two papers) has declined drastically. The print media The biggest newspaper publishers are the SanomaWSOY group and the Alma Media The newspaper press Group. They are now also the biggest media Finland’s first newspaper appeared on 15 companies in Finland. Both are listed on the January 1771, when the country was still Helsinki Stock Exchange and were formed part of Sweden. The oldest newspaper that through mergers, Alma Media on 1 April still appears is the Swedish-language news- 1998 and SanomaWSOY on 1 May 1999. In paper Åbo Underrättelser, established in 1824. 2000 SanomaWSOY published eleven news- In fact, twenty six of the present newspapers papers (six of which were dailies) with a were established in the nineteenth century. circulation of 813,000 copies, which was The biggest paper today is Helsingin Sanomat, 25 per cent of the total circulation. In the the first issue of which appeared in 1889. In same year Alma Media published twenty 1900 there were eighty five newspapers, in five newspapers (ten of which were dailies) 1930 176 and in 1960 199. In 1970 there with a circulation of 585,000 copies, which were 237 newspapers, in 1980 247, and a was 18 per cent of the total circulation. record figure was reached in 1990 with 252 Following its acquisition of the Dutch newspapers. In 2001 there were 199 news- VNU’s Consumer Information Group (CIG), papers, forty nine of which are dailies (four which was completed on 1 October 2001, to seven times a week) and fourteen are SanomaWSOY is now the largest media Swedish-language papers. group in the Nordic region with pro-forma The total circulation of newspapers was net sales in 2000 of ¤2.26 billion, and is slightly more than 4 million in 1991, but Europe’s fifth largest magazine publisher. the economic recession of the early 1990s The biggest owners are members of the resulted in a decline which continued until Erkko family, the original founder of the the late 1990s, although it evened out in the Sanoma Corporation. Aatos Erkko owns 29 end. The decline has finally ceased and per cent and other Erkko family members 19 circulation now stands at 3.2 million in per cent. Other major owners are insurance both 2000 and 2001. companies and cultural foundations, etc. The biggest newspaper, Helsingin Sanomat, According to a sample survey in 2000 by is published by Sanoma Corporation within the Finnish Newspapers Association (FNA) the SanomaWSOY group. It is by far the the income structure of newspapers was as most dominant newspaper in Finland. In follows: advertising 62 per cent, subscrip- fact, it is the biggest daily in the Nordic tions 32 per cent and sales of individual countries. Its circulation is 446,380, which is copies only 6 per cent.

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The economic recession of the early 1990s Kuvalehdet, circulation 257,121), ET-lehti hit the newspapers very hard when, on top (Sanoma Magazines), 7 päivää (Aller of the fall in circulation, media advertising Julkaisut) and Apu (A-lehdet). The biggest revenue started decreasing. It was not until comic magazine is Aku Ankka (Donald Duck, 1999 that it regained this revenue level. In with a circulation of 287,685, publisher 2001 newspapers had 56 per cent of the total Sanoma Magazines). The biggest customer media advertising. Likewise the total magazine is Pirkka, a retailers’ (Kesko group) revenue of newspapers and free papers fell in magazine for loyalty card customers in the 1990s and then started growing in 2000 Finland. Its circulation amounted to 1.4 (Sauri, 2001: 14–15). million in 2001 with ten issues annually, People usually read the dailies in the including a Swedish-language version. morning before going to work, and the Finns spend about forty two minutes a majority of newspapers are delivered to day reading magazines. The average Finn people’s homes based on annual subscrip- reads ten different magazines when calcu- tions. Finns spend about forty minutes a day lated as follows: if a person has read one of reading newspapers and read three news- the four issues of the magazine, the person is papers on average during a week. counted as a reader of that magazine.

The periodical and magazine press Book publishing In contrast with newspapers, the circulation The total number of book titles published in of consumer magazines showed an increas- Finland has grown during the last twenty years ing trend all through the 1990s. The circula- from 6,500 titles in 1980 to 13,200 titles in tion amounted to 5.4 million copies in 1990 1999 (Minkkinen, 2001). Of the total and to 6.2 million copies in 1999 (Sauri et al., number 84 per cent were non-fiction and 2000). In addition, the circulation of trade 16 per cent fiction. About 85 per cent of the and business magazines stood at 3.8 million titles published in Finland are domestic. In copies in 1999 and customer magazines at 1999, of the number of total titles published, 59 5.5 million copies. The circulation figures of per cent were domestic in Finnish, 4 per cent in these two latter groups have declined since Swedish, 19 per cent domestic in other langu- 1990. In economic terms this sector also ages and 17 per cent were translated books. coped with the recession of the early 1990s Some twenty years ago there were seven more easily than the newspapers. main publishers. Now, mostly through In contrast to what happens with news- mergers, there are four major publishers and papers, subscriptions form the main part of many small ones. The biggest, WSOY, is part the income of magazines even though the of the SanomaWSOY group, Otava is part of share fell from approximately 74 per cent in the Otava-Kuvalehdet group, and 1992 to 64 per cent in 2000. Single-copy was bought by the Swedish company sales account for 8 per cent and advertising Bonnier in 1996 (see statistics at end of accounts for 28 per cent of magazine chapter). The fourth major publisher is revenue (up from 16 per cent in 1992) (Sauri Gummerus Publishers. et al., 2001). There were 2,819 magazine titles in 2001 (magazines published at least four times a year) The electronic (audio-visual) media (Finnish Periodical Publishers’ Association). The biggest magazine publisher, Sanoma Television Magazines, is part of the SanomaWSOY Television began as a private project, TES- group. It publishes 270 magazines in ten TV. The public service company YLE began countries. The Otava-Kuvalehdet group was test transmissions in 1957 and regular trans- formed in 1998 and is the second largest mission on 1 January 1958. A second public publisher of magazines and books in television channel was established in 1964 Finland. The magazine publishing division, by YLE as it took over TES-TV. The private Yhtyneet Kuvalehdet, publishes thirty three television company, which is financed by consumer magazines in Finland and four in advertising and is nowadays known as MTV Estonia. Its subsidiary, Kynämies, publishes (MTV-3 Finland), had already been estab- thirty seven magazines. lished in 1957, originally to assist YLE. Until The biggest family and general magazines the end of 1992 it operated in windows on have a circulation of more than 200,000 and YLE’s television channels. In 1987 a third are weekly magazines: Seura (Yhtyneet television channel started. It was originally

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jointly owned by YLE (50 per cent), MTV Finland and, on the west coast, the two (35 per cent) and Nokia (15 per cent). It national public service channels of Sweden’s became MTV’s subsidiary in 1990 and was SVT are also retransmitted (two separate wholly owned by MTV in 1997. In 1993 all stations). commercial television operations moved to Until the mid-1990s television advertising the third channel, MTV-3 Finland received revenue increased nicely both in Fmk its own operating licence and the Act on millions and as a percentage of media adver- Yleisradio (the Finnish Broadcasting Company, tising as a whole. Even in the difficult years YLE) was passed. On 1 June 1997 a second of the economic recession in the early 1990s, private television channel, Channel Four television advertising grew, not taking infla- Finland, started. It is now owned by tion into account. In absolute terms, tele- SWelcom within the SanomaWSOY group vision advertising revenues declined in the (91 per cent) and the TS group (9 per cent). early 1990s. With the appearance of The four national terrestrial television Channel Four Finland, a restructuring of the channels together had a 94 per cent share of market came about. The advertising revenue television viewing in 2001. Cable television of MTV-3 Finland (including sponsorship, channels had 1 per cent and satellite chan- etc.) started decreasing, while the growth of nels 3 per cent of television viewing by the television advertising as a whole also slowed whole population. In cable television down. households, the cable television channels YLE’s public service remit is to provide full had a share of 3 per cent and the satellite service programming for all citizens on channels 7 per cent. National television is equal terms, and to discharge certain special thus quite strong. Some 42 per cent of all duties defined by law. This is reflected in the households are connected to cable tele- programme structure which covers different vision networks. The must-carry regulation programme types more evenly than that of covers all national free-to-air channels and the commercial companies. YLE has more all YLE’s services. The cable networks also factual and children’s programmes than the carry a substantial number of satellite chan- commercial companies. YLE shows educa- nels. In addition, about 11 per cent of all tion and culture, which is almost absent households enjoy satellite channels by from the commercial channels. They, on the means of the DTH and SMATV systems. other hand, carry more foreign fiction, Digital terrestrial transmissions were feature films and entertainment; it is quite launched on 27 August 2001, with three clear that Channel Four Finland does this multiplexes. Since three of the licensees more than the MTV-3 channel. dropped out, there are now (as of May 2002) In 2001 YLE’s television programming nine digital television channels on air, four amounted to 10,654 hours of which 9 per of which are simulcasts of the four analogue cent were by FST, YLE’s Swedish-language national channels. The new channels are division. Of YLE’s programme hours 57 per YLE-24 (news), YLE Teema (culture, educa- cent were domestic. YLE’s own new produc- tion, science), FST (Swedish-language pro- tion amounted to 41 per cent. gramming by YLE), Subtv (Alma Media’s In 2001 the television programming hours cable television channel with regional pro- of the MTV-3 channel amounted to 5,073 gramming obligations in the digital terres- hours. Of this amount 32 per cent was its trial operating licence), Urheilukanava own production, 24 per cent other domestic (sport, jointly owned by the commercial production and 44 per cent foreign produc- television companies) and Wellnet (lifestyle tion. The programme hours of Channel Four channel; so far only demos). At the end of Finland amounted to 3,900 hours, of which 2001 the network covered 72 per cent of the 24 per cent were domestic programming. population. Three new programme licences As regards the origin of foreign pro- will be granted in autumn 2002. grammes, there are also big differences In addition, there are three minor regional between the television companies. YLE is television operations over the air: television the company with the most varied imports. Tampere (commercial television covering Of YLE’s total programme hours in 2001 Finland’s third largest city) and När-TV and (the analogue channels) 9 per cent origi- KRS-TV, two non-commercial small-scale nated from the United States, 13 per cent Swedish-language stations on the west coast. from the United Kingdom, 6 per cent from Sweden’s television channel SVT Europa is the other Nordic countries, 10 per cent from retransmitted over the air in the south of other European countries and 5 per cent

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from other parts of the world. Of MTV-3 about seventy local radio operating licence programmes 29 per cent originated from the holders and about ten semi-national radio United States, and for Channel Four Finland networks or chains of local stations. Foreign the figure was as high as 50 per cent. companies are well represented as owners With the increasing number of television of the biggest networks: Kiss FM (SBS/ channels on air, the average daily time spent Luxembourg), Classic FM (GRW/UK), NRJ viewing grew slowly from ninety nine (NRJ/France) and SuomiPOP (Metromedia minutes in 1989 to 167 minutes in 2001. International, USA). YLE’s share of viewing has declined to 43 per The private stations brought about an cent while MTV-3 has a 39 per cent share, increase in radio listening as a whole from and Channel Four Finland has come to a an average of 122 minutes a day in 1985 to stop at a 12 per cent share. the record figure of 223 minutes in 1994. In Pay-television has not gained many sub- 2001 the average time spent listening was scribers in Finland. The total subscriber 208 minutes. YLE’s share of listening has figures have not been released, however. declined to 56 per cent. Among Swedish- speakers YLE’s share of listening totals 69 per Radio cent, with YLE’s Swedish-language channels Radio broadcasting began with trials by scoring 61 per cent. radio amateurs in 1921. Regular transmis- In contrast with the other media sectors, sions began in 1923, and in 1926 the the advertising revenue of private radio Finnish Broadcasting Company, YLE, was companies increased in 2001 by 6 per cent. established; at that time it was privately owned. In 1930 YLE became the sole broad- Film and video caster in Finland and in 1934 its shares were After a period of decline in gross box-office acquired by the state. For fifty years the revenues ending in 1987 with a bottom figure public service company YLE was the only of Fmk 136 million, the film business grew for radio broadcaster to be given an operating two years, stagnated in the early 1990s, again licence. 1985 was the first year that operat- started to climb and has been growing very ing licences were given to private companies well since 1995. The number of cinemas has for local radio operations. decreased from 312 in 1981 to 225 in 2001. At present, Finland has five national radio The number of screens is 343 and has been channels, one of which is the private Radio about the same for fifteen years. Most films Nova. It is owned by Alma Media (74 per are imported. The number of domestic film cent) and a company jointly owned by the releases has, in the main, varied between Swedish MTG Radio and the Norwegian P4 eight and thirteen for the last twenty years. Radio Hele Norge (26 per cent). YLE has three Finns do not go to the cinema very often, on national Finnish-language radio channels and average 1.4 times per person in 1999. one national full service Swedish-language Finnkino (owned by Rautakirja since channel (Radio Vega). In addition, YLE has a 1994, which has been a SanomaWSOY sub- fourth channel, a Swedish-language youth sidiary since 1999) is Finland’s biggest channel (Radio Extrem), with a network cinema-owner with fifteen cinemas offering coverage of 48 per cent of the population. sixty nine screens. In 2001 Finnkino’s YLE’s Radio Ylen Ykkönen broadcasts arts and turnover was ¤47.6 million. culture, Radiomafia popular culture and Finnkino is also one of the big video dis- Radio Suomi news and regional programmes tributors in Finland, the others being Buena (in windows). YLE also has a network in Vista, the Danish Egmont Entertainment and Lapland that broadcasts Sámi-language pro- the Norwegian-Swedish Sandrew Metronome. grammes. Digital Audio Broadcasting (DAB) Together they account for 80 per cent of the was introduced as an operative pilot project in video market (Sauri, 2001: 74–5). October 1998 and YLE now has three new Most videos are of American origin. After digital channels in Finnish, one regular addi- a long period when video rentals dominated tional service in Swedish and additional the market, the turnover of video rentals services occasionally. The network covers started decreasing in 1990 while sell- 50 per cent of the population. through videos increased in value and took Private radio operations have increased a definite lead in 1994. In 2001 sell-through over the years from, initially, local stations videos accounted for FmK 250 million and with local content to larger networks and video rentals for Fmk 143 million and the greater commercial orientation. There are video market declined owing to DVD records

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taking market share. The turnover of DVD been growing lately. Contrary to the situation records was Fmk 178 million in 2001. in many other countries there are no special The average daily video viewing is quite regulations limiting cross-ownership or con- low, only nine minutes per day. Most of it is centration of the media. This has not been viewing of recorded television programmes. seen as a problem and has not been the sub- ject of any big political debates or any com- The Internet and related on-line media mittee work initiated by the authorities. A trend towards concentration/convergence/ The first Internet service provider in Finland – vertical integration has occurred mainly EUnet Finland – was founded in 1993. Later the through the mergers forming the biggest telecom companies Sonera (a 53 per cent media companies, the SanomaWSOY group state-owned listed company) and Elisa and the Alma Media group. They now oper- Communications (previously the Helsinki ate in most of the media sectors. In addition, Telephone Company) grew quickly in this a trend to reuse media products on different field and became the biggest ISPs. Fast Internet platforms is evolving. connections are available. Cable modems are The SanomaWSOY group had a turnover supplied primarily by Helsinki Televisio (the of ¤1,730 million in 2001. It consists of cable television network in Helsinki, owned Sanoma Magazines (magazine publishing by the SanomaWSOY group). Of the network’s and distribution, movie distribution, inter- 219,000 households (2001), 19,000 have cable active services), SWelcom (television, broad- modems. ADSL connections are supplied by, band and cable television, mobile and inter alia, Elisa Communications and for Internet services, audiovisual production enterprises by KPNQwest, but the price to services), Sanoma (newspaper publishing households is relatively high. and printing, business information ser- Internet penetration by the end of 2001 vices), Rautakirja (kiosk operations, press was 36 per cent, while the penetration of distribution, bookstores, entertainment and personal computers was 51 per cent. The leisure, including cinema, e-business) and most popular sites are owned by Sonera, WSOY (publishing books, etc., printing, Microsoft and the Jippii group, followed by calendar operations). It has some minority the two broadcasting channel sites MTV-3 shares in radio companies, but no national and YLE, and the site of the largest news- radio involvement. paper, Helsingin Sanomat. Alma Media was formed on 1 April 1998 as According to information gathered at the a merger of the second biggest newspaper end of 2001, 2.1 million Finns (52 per cent) company in Finland, the Aamulehti group, used the Internet at least once a week and and the commercial television company MTV 2.5 million (62 per cent) had used the (MTV-3 Finland). Alma Media owns 23 per Internet during the previous three months. cent of Sweden’s TV-4. The other major owner, E-mail and the www services are the most the Swedish company Bonnier, owns 33 per popular applications; 58 per cent had used cent of Alma Media. Other major shareholders e-mail and 53 per cent the www services of Alma Media are insurance companies. during the previous three months (Gallup Alma Media’s turnover in 2001 was ¤478 Web). However, according to another study, million. It consists of the following divi- only 8 per cent had purchased goods for their sions: Alpress (regional newspapers, local own use through the Net. Most purchases and free papers), the Business Information were from domestic companies; the most Group, Broadcasting (television, cable tele- popular products were books and magazines vision, radio), Alma Media Interactive (R&D and music and videos (Statistics Finland). projects) and Alprint (printing services). Its activities are not as widespread as those of SanomaWSOY. Alma Media has only a POLITICS, POLICY, LAW minority share in magazine publishing and no book printing or cinema activities. AND REGULATION The third biggest newspaper publisher is the TS group. Its turnover was ¤276 million Media concentration and vertical in 2001, making it the fourth largest media integration company. The printing business forms the biggest part of the turnover. It is also One can say that, except for television, over- involved in radio and has a minority share all vertical and horizontal concentration has in television.

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The public service company YLE (the Communications Administration (625/2001), Finnish Broadcasting Company, Yleisradio), which came into effect on 1 September 2001. broadcasts national and regional full service A self-regulating Council for the Mass radio and television programming. It has no Media (Julkisen sanan neuvosto) was estab- interests in the press sector but seeks to make lished in 1968 for publishers and journalists its services available on different electronic in the field of mass communications. Its task platforms (the Internet, mobile phones, etc.). is to interpret good professional practice and Its subsidiary Digita owns the national radio defend freedom of speech and publication in and television transmission networks. In due newspapers, magazines, radio and television. course YLE will sell its shares to the current It regularly makes decisions on the basis of other shareholder, Télédiffusion de France complaints, and the decisions are published. (TDF), which now owns 49 per cent. A few years back, in 1996, YLE was the The press biggest media company in Finland. It is now the third biggest. Through mergers and take- The press is regulated through the Act on overs the newspaper media market has the Freedom of the Press (1/1919), under moved towards greater concentration. In which everybody has the right to publish radio the number of private stations has printed products. In spite of amendments increased ever since 1985, but during the over the years the Act is now considered to last few years an increasing number of be quite outdated. stations have been incorporated in chains The number of newspapers with ties to dominated by foreign ownership. political parties has decreased considerably. In 1966 half the newspapers were officially politically linked. In 1989 political newspa- Regulation pers formed only a fourth. At the beginning In regulation, too, there is a trend towards of 2001 there were only eighteen, including convergence. The regulator strives to make some that appeared only once a week the same framework of regulations suitably (Nordenstreng et al., 2001: 71). State subsi- applicable to different sectors. dies were introduced in 1967. Distribution On 19 April 2002 a government Bill was subsidies were introduced in 1982. During introduced by the Minister of Justice on the 1990s the subsidies decreased but have changes in the exercise of freedom of remained at Fmk 75 million (¤12.6 million) speech. It would bring the press, broad- since 1997. A press subsidy board (lehdistö- casting and even the on-line media within tukilautakunta) makes a proposal concerning the same framework with respect to respon- the granting of the selective subsidies (¤5 sibility and the use of freedom of speech. million) and the Ministry of Transport and The Council of State grants operating Communications presents it to the govern- licences for radio and television over the air, ment for decision. Subsidies to political with the exception of YLE, which operates newspapers (¤7.6 million) are given in pro- on the basis of the Act on Yleisradio. The portion to the number of each party’s seats Council of State also determines the tele- in parliament. vision (licence) fee. In June 2002 a number of changes to the The electronic media communications market legislation prepared by the Ministry of Transport and Communi- Television and radio. From 1 January 1994 cations were ratified. A government Bill intro- the Act on Yleisradio (the Finnish Broad- ducing new changes to the Communications casting Company, YLE) came into effect. Market Act is being prepared and it will also This act defines YLE’s public service remit implement the EU regulatory framework for and authorizes YLE to operate by right of all electronic communication. that law without an operating licence. The Finnish Communications Regulatory As of 1 January 1994 the television direc- Authority (FICORA) supervises compliance tive of the European Union also came into with the Act on Television and Radio Opera- force in Finland. Since 1995 Finland has tions, with the exception of the ethical prin- been a member of the European Union ciples of advertising, tele-shopping spots which, in the field of communications, has and the protection of children. These are resulted in legislative changes at a more supervised by the Consumer Ombudsman. rapid pace through the need to implement FICORA’s duties are regulated by the Act on EU directives.

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A revision of broadcasting legislation The self-governing Åland Islands have a came into effect on 1 January 1999 with the different broadcasting arrangement of their Act on Television and Radio Operations, the own. The Autonomy Act for Åland (1991) Act on the State Television and Radio Fund gave the Åland Islands the right to grant and Acts amending other relating Acts. This operating licences for broadcasting on the legislation replaced the Radio Equipment Åland Islands. The Provincial Act on broad- Act and the Cable Transmission Act. The casting on the Åland Islands was passed at (technical) Radio Act was replaced with a the end of 1993 and gave Åland the right to new Radio Act from 1 January 2002. levy its own licence fees. The public service The highest decision-making body of the broadcaster is Ålands Radio och TV. Three public service broadcaster YLE is the television channels are retransmitted: SVT-1 Administrative Council, elected by parlia- and SVT-2 from Sweden’s and Finland’s TV, ment. YLE is financed through the State which is a mix of YLE TV-1 and YLE TV-2 Television and Radio Fund, the assets of (mainly Swedish-language programming). which consist of television fees paid by households and operating licence fees paid Film and video Regarding films, the distri- by the commercial television companies. bution of films and videos used to be subject Increases in the television fee are proposed to censorship. This changed on 1 January by the Administrative Council of YLE and 2001 through a number of Acts. As of 1 decided upon by the Council of State (the January 2001 only films for minors (i.e. government). The latest increase came into under the age of eighteen) are censored. The effect on 1 July 2000 when the fee rose to television companies have also agreed on a ¤165.15. Compared with other Western joint national framework of self-regulation European countries it is not high. where programmes are divided into suitable Calculation of the operating licence fee is or unsuitable programmes for children defined in the Act on the State Television under sixteen. and Radio Fund and is tied to the turnover State subsidies are given to support of the commercial television companies. Of national film production. They increased YLE’s total revenue in 2001, ¤364.5 million, from only Fmk 21 million in 1989 to Fmk 83 per cent originated from television fees, 65 million in 1999 and up to Fmk 70 million 12 per cent from operating licence fees and in the state budget for 2002. Most of the 5 per cent from other revenues. YLE has no subsidies go to the Finnish Film Foundation advertising or sponsorship income. (Suomen Elokuvasäätiö) which allocates it Changes to the communications market to production. legislation came into effect on 1 July 2002 through which the regulations on telecom- The Internet and related on-line media munications, digital radio and television transmission networks were made uniform, The Penal Code regulations also apply to digital radio and television transmission Internet content and allow opportunities for networks were opened up for information the authorities to intervene where there are society services, digital programme and cases of criminal offences. However, the pre- digital network licences will be granted and sent legislation is not suitable for regulating the regulation of digital radio and television Internet content. The Bill introduced in transmission networks were moved to the February 2002 on the use of freedom of Telecommunications Market Act, renamed speech includes, as a new feature, regula- the Communications Market Act. tions on the responsibility for communica- Another change that came into effect was tion through on-line media. A new Act that the operating licence fee paid by the implementing the EU directive on e-commerce operating licence holders (television compa- came into effect on 1 July 2002. Proposals nies) was cut by 50 per cent. These fees are concerning self-regulation measures have paid to the State Television and Radio Fund, been on the agenda. Different aspects of the the aim of which is to finance the operations Internet are monitored by various of YLE. The aim is that there should be tele- Ministries. In the Ministry of Transport and vision fee increases every year from 2004 on. Communications this is done in the Unit for Until then the gap in YLE financing will be E-commerce and Data Security. FICORA covered by the income acquired when YLE supervises the use of the Finnish Internet sold 49 per cent of its subsidiary Digita to domain names and grants the domain TDF and by selling off the rest of the shares. names.

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STATISTICS

Population, 2001 5,194,901 Households1 approx. 2,380,000 Movie admissions, 20012 6,500,000 Books published, 1999 (titles) 13,000 Source: Minkkinen (2001: 6).

Print media Circulation of main daily newspapers, 20013 Helsingin Sanomat (national, seven days a week) 446,380 Ilta-Sanomat (national evening tabloid, six days a week) 218,829 Aamulehti (regional, seven days) 135,478 Iltalehti (national evening tabloid, six days) 134,777 Turun Sanomat (regional, seven days) 115,142 Maaseudun Tulevaisuus (national rural, three days) 89,197 Kauppalehti (national financial, five days) 85,292 Kaleva (regional, seven days) 83,151 Keskisuomalainen (regional, seven days) 77,135 Savon Sanomat (regional, seven days) 67,219

Broadcast Audience share of main terrestrial, cable and satellite television channels, 2001 (%)4 media Public YLE TV-1 22.8 YLE TV-2 20.5 Total 43.2 SVT Europa, SVT-1, SVT-2 1.2 (retransmission and over-spill of Swedish public service television) Private MTV-3 39.1 Channel Four Finland 11.6 Satellite channels 3.1 Cable channels 1.2 Other 0.5 Main radio channels: audience share , 2001 (%)5 Public YLE Radio Ylen Ykkönen 8 Radiomafia 6 Radio Suomi 41 FSR (YLE’s Swedish-language channels) 1 Total 56 Private 14 Kiss FM 6 NRJ 3

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SuomiPOP 2 Sävelradio 2 Other private stations 17 Total 44

Households with satellite, cable and terrestrial pay-television (%)6 Total penetration Pay-TV Satellite (DTH and SMATV) 13 approx. 4 Cable 42 approx. 2 Terrestrial 100 0 Households with a video-cassette recorder, satellite receiver or DVD player (%)7 VCR 78 DTH households 6 DVD player 9

Electronic Digital television households (any means)8 approx. 6 media Internet access (%)9 37 Internet use (once a week)10 2,100,000 Mobile phone (%)11 90 Number of mobile phone subscriptions per 100 inhabitants12 75

Advertising Newspapers 51.3 spend, 200113 Free papers 4.8 Magazines 17.4 Television 18.2 Radio 3.8 Internet 1.0 Cinema 0.2 Outdoor 3.3 Total (¤1,066 million) 100

Ownership Main media companies14

Turnover, % of total % of 2001 newspaper TV viewing, (¤million) circulation, 2000 200115 Sanoma group 1,730 25 11.6a Alma Media group 478 18 39.9 YLE (total revenue) 365 – 43.2 TS group 276 5 –a a The Sanoma Group owns 90.55% and the TS Group 9.45% of Channel Four Finland, whose share of television viewing is 11.6%.

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REFERENCES Finnish Newspapers Association (FNA): http:// www.sanomalehdet.fi Finnish Periodical Publishers’ Association: Alho, Olli (ed.) (1997) Finland: a Cultural Encyclo- http://www.aikakaus.fi pedia. Helsinki: Finnish Literature Society. Alma Media: http://www.almamedia.fi, annual Gallup Media (2002) Mainonnan maara Suomessa reports 2001. Helsinki: Suomen Gallup Media. Channel Four Finland: http://www.nelonen.fi Minkkinen, Virpi (2001) Books in the 1980s and MTV-3 Finland: http://www.mtv3.fi 1990s: the Publishing, Distribution and Reading of Sanoma: http://www.sanomawsoy.fi, annual reports Literature. Culture and the Media 2001: 3. Statistics Finland: http://www.stat.fi Helsinki: Statistics Finland. Suomen Gallup Media: http://www.mdc.fi Nordenstreng, K. Wiio, O. A., eds (2001) Suomen YLE: http://www.yle.fi/fbc, annual reports mediamaisema. Vantaa: WSOY. Sauri, Tuomo (2001) Mass Media in Finland: Structure and Economy. Culture and the Media Statistics sources 2001: 1. Helsinki: Statistics Finland. 1Households approximately 2,373,000 (2000). Sauri, T., Kohvakka, R. Minkkinen V., eds (2000) Source: Statistics Finland/Income Distribution Finnish Mass Media 2000. Culture and the Media Statistics. (Approximation 2001 made by the 2000: 1. Helsinki: Statistics Finland. author: 2,380,000). Soramaki, Martti (2001) ‘The arrangement of 2Source: Finnish Chamber of Films, www. public service broadcasting in Finland’, memo- filmikamari.fi. randum, 10 September. Brussels: Corporate 3Source: Web site of the Finnish Audit Bureau of Affairs, Yleisradio, the Finnish Broadcasting Circulation, www.levikintarkastus.fi. Company (YLE). 4Source: television-meter survey, Finnpanel – Osterlund-Karinkanta, Marina (2001) ‘Media YLE/Audience research. policy issues in Finland’, memorandum. 5Source: KRT (National Radio Survey covering Helsinki: EU and Media Unit, Yleisradio, the Finnish speakers aged nine and over). Finnish Broadcasting Company (YLE). 6Finnish Satellite Association SANT, Finnish Osterlund-Karinkanta, Marina (2002) ‘Medien in Cable Television Association, YLE. Finnland’ in Hans-Bredow-Institut für Medien- 7VCR, November 2001, Statistics Finland/ forschung (ed.) Internationales Handbuch Medien. Consumer Survey; DTH, Finnish Satellite Baden-Baden: Nomos. Association SANT; DVD, November 2001, Statistics Finland/Consumer Survey. 8 Internet references YLE. 9November 2001, Statistics Finland/Consumer Legislation: http://www.finlex.fi Survey. Legislation on radio and television in English at: 10Suomen Gallup Web. http://www.mintc.fi/www/sivut/english/tele/ 11November 2001, Statistics Finland/Consumer statutes/index.html Survey. Ministry of Education: http://www.minedu.fi 12August 2001, Ministry of Transport and Ministry of Justice: http://www.om.fi Communications, press release 17 September Ministry of Transport and Communications: 2001. http://www .mintc.fi 13Source: Suomen Gallup Media. Net advertising Council for Mass Media: http://www.jsn.fi revenue including classified advertising. Finnish Book Publishers’ Association: http://www. 14Suomen Lehdistö 6/01. FNA publication. skyry.net 15Television-meter survey, Finnpanel – YLE/ Finnish Film Foundation: http://www.ses.fi Audience research.

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6: France

JEAN-MARIE CHARON Translated by Denis Mcquail

NATIONAL PROFILE in the press by means of a very substantial system of aid, at the same time guaranteeing With 60 million inhabitants, France is a co-operative or collective structures, very centralized country, with the over- whether it concerns support for the AFP development of its capital Paris and of the (Agence France Presse) or the support given Paris region. This structure explains why to the distribution system. Audio-visual most media, apart from the local press, con- media for their part were under monopoly centrate their activities and their resources public control until the beginning of the in this region. A significant indicator of this, 1980s, with public service radio and tele- at the present time (2000) is that out of the vision2 comprising numerous stations and total of 31,900 French journalists, more chains, representing a considerable audi- than 60 per cent practise their profession in ence. The particular role of the state in the the Paris region (Devillard et al., 2001: 67). media is expressed in the existence of a France is also at a pivotal point between Minister charged with these matters, under the north and south of Europe, a fact that is the title of ‘communication’, currently expressed in the differences in reading linked with responsibility for ‘culture’. It is behaviour and in press structures according also manifested by a tendency to multiply to whether one is in the north-east of France, legislative texts. The most recent law con- where they are close to those of Germany or cerning audio-visual media dates from 2000, Switzerland, or south of the Loire, where while the printed press is governed by a law they are close to those prevailing in Italy or of 1986. Spain. Despite the fact that religious practice France has always been innovative in has notably declined, France was for long respect of the media. It was among the first essentially Catholic, torn apart by religious countries to see the birth of a periodical warfare until the seventeenth century, with publication, la Gazette, in 1631. The revolu- Protestantism at issue. Its Jewish commu- tion of 1798 offered for the first time the nity, today one of the most important in image of a country where several hundred Europe, is of long standing, although the newspapers were published. In 1832 Charles share of Islam is growing, now the third Louis Havas founded the first news agency. religion.1 This diversity is also witnessed In 1863 Moise Millaud was the first in in the existence of community media Europe to succeed in launching a popular (a Catholic daily, periodicals of different faiths, newspaper, very cheap (one sou), Le Petit radio and television stations representing Journal, sold by single copies. In 1865 this the principal religions). was printed on the first rotary press, The state has historically played a particu- invented by the engineer Marinoni. Broad- larly important role in economic, social, cul- cast radio made its appearance in the 1920s, tural and political matters. With respect to developing at first in the form of private the media, the first newspapers saw the light regional stations. The first demonstrations of day with the support and control of the of television took place on the eve of the state. The latter still plays an important role Second World War. Following the war, radio 3103-Ch-06.qxd 11/13/03 3:53 PM Page 66

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Table 6.1 Circulation of national quality and popular dailies over the long term (‘000) 1960 1975 1994 2000 Le Figaro 384 382 386 358 Le Monde 166 425 354 3,348 Libération – 17 169 160 Le Parisiena 756 310 423 485 France Soir 1,115 633 203 120b aThe figures for 2000 add together le Parisien and Aujourd’ hui, which is a national version produced by the Paris region title. bFigure not checked by the Diffusion Conseil, the body empowered to validate circulation.

and television stations, now principally to the daily press. The number of dailies has national in range, would be developed not changed much during the last decade, within the framework of a public monopoly with a total of eighty one titles, of which ten that lasted until the law of 1982, affirming are national dailies of political and general the principle of freedom of communication. information (amongst which are three quality The same year a plan was launched for the dailies – le Monde, le Figaro and Libération – development of cable television. In the and three dailies of opinion), ten specialist following year began the massive diffusion dailies (business, sport, etc.) and sixty one of Minitel, a small electronic on-line infor- local and regional dailies (the highest circu- mation terminal, under the control of the lation is achieved by one of these, Ouest Direction Générale des Télécommunication,3 France, with nearly 800,000 copies sold). which has since become France Télécom. This relative stability has been little dis- turbed by the arrival of the free dailies Metro and Vingt-Minutes in Paris, but also in STRUCTURE AND OWNERSHIP Marseilles, then Lyons, with the launch of Marseilles Plus. The landscape of the French media is charac- The daily press experienced a powerful terized by relative weakness in the daily movement towards concentration in the sector, even though, in contrast, magazines 1970s and 1980s, which still leaves its mark are numerous and generally prosperous. today. It was principally led by Robert Hersant Radio is much listened to and also very (Socpresse and France Antilles groups) and diverse, following liberalization in the 1980s. affected the regional press (with titles such as As for television, it has also achieved diversi- Paris Normandie, le Progrès de Lyon, le Dauphiné fication by way of cable (in a modest degree), Libéré, etc.) just as much as the national press satellite and (soon) by digital terrestrial (le Figaro, France Soir, l’Aurore), these subject to transmission. The most recent years have reorientation of strategy following the death been good, on the whole, both for book and of their founder. They have, moreover, experi- cinema. After an initial delay the diffusion of enced a reorganization of their capital, with the Internet is proceeding rapidly, even if the the entry of the aviation firm Dassault. On majority of French people still have no expe- the other hand, several regional groups rience of this medium. The economy of the expanded their portfolio of titles around a media taken together is suffering from the principal title (Sud-Ouest, la Dépêche du Midi, la relative weakness of the French advertising Voix du Nord, la Montagne). Finally, the market, which is insufficiently reactive to Hachette Filipacchi Médias group (HFM), a innovation, such that two-thirds of advertis- leader in the magazine publishing sector, suc- ing expenditure is directed towards media ceeded in acquiring the Provencal group, other than the press, radio and television. which became la Provence, in Marseilles, at the same time progressively adding other titles from the south-east region, principally Nice The print media Matin. International groups, aside from Pearson in the financial daily les Echos, are The newspaper press little represented in the daily French press, The written press achieves a turnover of ¤11 because of legal provisions that slow down or billion, of which nearly 40 per cent accrues block their entry.

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The daily press suffers from a fairly general in thirty countries. The weight of the leaders lack of profitability, apart from the case of does not hold back the great vitality of other the Echos and the sporting daily l’Equipe. groups, more national, of average size, often Several titles are chronically loss-making (the performing well in certain segments of the opinion dailies la Croix, l’Humanité and market, such as Bayard (press for young and Présent as well as the popular France Soir). old), Excelsior (), Marie This stems partly from production costs that Claire (women), Perdriel (news, business, remain excessive, partly from the often inad- etc.) (Charon, 1999). equate advertising resources, not to mention The profitability of the magazine publish- often stagnant or declining circulation. ing groups is often good (above 10 per cent The reading of daily newspapers is now at for groups such as Marie Claire or Excelsior), a rather low level. There is clear evidence of without being exceptional relative to global a tendency towards occasional reading, with or European groups in the same sector. We regular reading by no more than 36 per cent should note that there also, while still being of the population and non-reading (‘never competition vis-à-vis the audio-visual sector, read a daily’) settling at 27 per cent, with the ratio of advertising to sales income is particular reference to the younger age 40/60, which is lower than can be observed groups (up to forty five years of age) in neighbouring countries, notably Great (Donnat, 1998: 178). Consistent with this, Britain. the percentage of buyers of dailies is also The technical and professional press was rather low, with France having a rate of 149 for long the smallest sector, with two copies sold per 1,000 inhabitants. national groups operating in it, CEP (Havas)6 and Editions sociales. The second The magazine and periodical press was re-acquired during the 1990s by the In contrast to the daily press, the mass Dutch group Wolters Kluwer, while the first public magazine sector has a large audience, has been refounded within Vivendi since, according to a 2001 study, French Universal Publishing (VUP) and is in the people read an average of 6.9 titles. Women process of transfer. This is to say that at the are ahead in this, with an average of 7.3. moment this form of publishing is develop- Ninety-six per cent of French women are ing and increasing in professionalism, but it readers of magazines4. During the last finds itself essentially controlled by groups twenty years, overall circulation has with their headquarters outside France. increased by some 65 per cent5. The main sectors are the television press (weekly), the Book publishing age-related press (young and old) and, still After the relatively disappointing decade of growing, the category called ‘special inter- the 1990s for book publishing, the situation est’ which translates into a constant ten- has noticeably improved since 2000, with dency towards greater specialization in this significant increases in sales. On the other form of publishing (leisure, discovery, activi- hand, studies of reading behaviour7 show ties, hobbies, etc.). The vitality of this kind that when the book-buying public grows, of publishing is reflected in an exceptional the marginal category of ‘heavy readers’ figure for new start-ups each year (400 in the tends to decline, constituting a worrying year 2000 alone). development, notably affecting general Such dynamism cannot help but be trans- literature. In effect, although during the lated into a strong trend towards concentra- course of the last decade the number of tion, the parallel phenomenon to the people who have bought books has been constant appearance of newcomers, inde- maintained (exceeding about 62 per cent or pendent titles or small groups. This concen- 63 per cent), the share of those that have tration of the market is marked by the read at least twenty five books each year has position of the leader, the Hachette declined from 66 per cent to 58 per cent. Filipacchi Média group, followed by two The reversal affects all social categories, but European groups, Bertelsmann (by way of its is greatest for workers, artisans and heads of affiliate Prisma press) and Emap. The share enterprise (Donnat, 1998: 98). taken by German and British groups well As for publication structures, these are indicates the international dimension of dominated by a strong degree of concentra- this form of publication, with HFM realizing tion around two poles, Hachette8 on the one more than half its turnover outside France, hand and Vivendi Universal Publishing on one of its leading titles, Elle, being published the other. Both are to some degree engaged

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in international strategies.9 Hachette is very dozen networks,13 with a steady rate of active in the distribution, circulation and growth. It should also be noted that an offer sale of books (Relais H, Relay, etc.) in France10 of “digital terrestrial television” (TNT) is but also internationally. Within the two being gradually introduced, with thirty two groups, the experience of centralized admin- networks, for which the Conseil Supérieur istration and maximum synergy in relation de l’Audiovisual (CSA), the regulatory organ to the book pole has come to nothing, for audiovisual media, evaluated applicants emerging finally as a trend towards great in spring 2002. autonomy between their different sectors The creation of Canal + in 1984 consti- and types of book publishers. The weight of tuted the first appearance of pay and the two leaders of the sector has not held thematic television, since which date the back the rise of houses of medium weight, thematization of television has accelerated, essentially national, such as Gallimard or le with dozens of networks proposed for cable Seuil, exhibiting considerable vitality, with and satellite,14 amongst which news channels the constant arrival of newcomers. and those for children, sport, film and music, etc., continue to predominate.15 In 2001 pay-television attracted 10.78 million The electronic (audio-visual) media subscribers. Public television today comprises four Television analogue networks, of which three (France Television, with its turnover of ¤5.5 billion, 2, France 3 and France 5) are grouped in a remains dominated by the analogue form of common holding company,16 France transmission that offers seven networks on Télévision. The agreements signed between six channels, almost exclusively national. It France and Germany that have led to the was during the 1980s that the analogue offer creation of ARTE have resulted in this being was increased from three to six networks. a separate company, even though the French One of these networks, France 3, offers authorities had wished, since a vote on the national programming for most of its output law in December 2000, to integrate it into time, but also transmits “regional news” France Télévision. The holding company is programmes every day, thanks to a decen- also at the head of the thematic networks, tralized structure, mainly devoted to news.11 with participation in some of these (history, Two networks are transmitted on the fifth etc.). France Télévision was also one of the channel: France 5, with an educational original instigators of the bouquet satellite, remit, during the day, and ARTE (cultural, TPS. France Télévision should also to be at franco-German) during the evening and the head of eight channels, distributed from night. On the fourth channel Canal + is terrestrial digital television. For complete- transmitted, a thematic network (cinema ness, it should be noted that the overseas and sport), in return for subscription. Local territories and departments are served by a analogue channels occupy a totally marginal specific company, RFO, while in the inter- place, as a result of cable or production national arena France is a partner in TV-5, problems (Toulouse, Lyons, Alpes), but are which takes a number of its programmes experiencing a modest rebound, with autho- from the public service branch (including rizations given in Clermont-Ferrand and the television news of France 2). Bordeaux12 to affiliates of the regional press. Private television is dominated by large A number of holders of a community televi- industrial groups or international concerns: sion licence, connected with a social move- TF-1, the network leader, is controlled by the ment, hope that digital terrestrial television Bouygues group (BTP and local public utili- will provide a new opportunity for this form ties), which is the principal shareholder in of television. TPS, also the thematic networks, principally Alongside analogue television, there has LCI (the main continuous news channel). been a programme of development of cable M6, a generalist network which is develop- television since the end of 1982, which has ing a time-shift form of programming, is experienced difficulties of commercial develop- controlled by the RTL group (an affiliate of ment, resulting in a very modest degree of Bertelsmann), also Suez-Lyonnaise (which is subscription. Because of this, satellite distri- involved in cable by way of the Noos com- bution has been more or less inevitable, pany). Canal +, which also exploits the with two concurrent commercial offers – Canal Satellite package, belongs to the Canal Satellite and TPS – distributing several Vivendi Universal group. Its activities are

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extensively internationalized in Europe the third group of private radio stations, (Spain, Belgium, Italy, Poland). Other opera- although it has directed its internationalism tors are involved in thematic networks, towards several European countries. Today it amongst them Hachette (Lagardère), in has four national networks,20 each corre- Canal Satellite especially, also in production, sponding to a musical style, defined in AB (RTL-9, also a ‘mini-package’ proposed as terms of a target age group. an option in the offer of Canal Satellite). Several hundred radio associations are regularly given frequencies by the CSA, which Radio has the task of guaranteeing a substantial Radio is an important medium, in terms of share of wavebands to this form of radio- the size of its audience, the time spent phonic expression. A ‘Fund for Support of listening and the diversity of programming. Radiophonic Expression’, supplemented by Its turnover is increasing moderately, being a 1 per cent tax on radio and television of the order of ¤1 billion. The sector com- advertising receipts, contributes to the prises four large, distinct segments: three financing of radio associations. general national radio services (for long transmitted on long wave, but gradually Film and video going over to FM); national thematic net- French cinematographic production consti- works (music, information, cultural, reli- tutes a dynamic sector by comparison with gious and community affairs); private other European countries, since it represents independent radio; several hundred local a little more than ¤900 million. The sector radio associations. Since the second half of relating to cinema exhibition (620 enter- the 1990s thematic and local radio has over- prises) generates turnover of the order of taken the generalist national radio services. ¤700 million. Video production (more than Public radio is divided into three distinct 450 enterprises) has progressed very rapidly groups: the most important – Radio France – to more than ¤800 million. offers six main networks17 aimed at the met- The dynamism of the cinematographic ropolitan territory. The second is RFO, sector has been greatly stimulated by the which transmits radio and television pro- habit of cinemagoing, which has been grow- grammes to overseas departments and terri- ing even since 2001 with the introduction of tories. Finally, Radio France Internationale subscription tickets allowing more films to (RFI) transmits a continuous news channel be seen at a lower price. These cards have in French and in local languages to the been particularly effective in stimulating whole world (on short and medium wave, or cinemagoing among the young, who are in FM). The programming of Radio France any case the most frequent cinemagoers. taken as a whole has the lead position in the Research into cultural habits (Donnat, 1998: radio market, with a cumulative audience of 235–9) shows that half the French public the order of 28 per cent. Disposing of the (49 per cent) go to the cinema at least once ‘historic’ public generalist programme, with a year. Among these a little more than half France Inter, which has second place in go at least once every two months. Among respect of audience size, Radio France estab- the high attenders (more than twenty times lished a new continuous news programme, a year) are found especially those aged France Info, in 1987, which reaches a very twenty to twenty-four, the professional and significant audience. In 2001 Radio France intellectual occupations, students and reorganized its network of forty local stations, Parisians. In respect of video use, the 1990s under the label France Bleue, proposing were marked by a reversal of the relation instead a national programme refreshed by between renting and purchase. In 1989 14 per local content and by specific programmes cent rented cassettes and only 7 per cent and news produced by each station. bought them, while in 1997 the purchasers The private generalist radio stations, as accounted for 37 per cent, the renters 28 per well as a number of the thematic networks cent (Donnat, 1998: 149–52). with which they are associated, belong to two communication groups that are largely The Internet and 18 internationalized, being Lagardère and the related on-line media RTL group (Bertelsmann).19 Besides smaller operators (independents), we should note In respect of the Internet and on-line media, the case of the NRJ group, born with the France presents a paradoxical spectacle. On radio libres at the start of the 1980s, which is the one hand, the availability of personal

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computers and the level of access to the operators appeared to hesitate, renegotiating Internet is low in European terms, but on its schedules and tariffs with the regulatory the other hand, the number of applications body – the Agency for the Regulation of of new media (especially ordering, consult- Telecommunications (ART) – and the state. ing bank data, electronic directories, etc.) is For the content providers, the delays come very high and widespread in society, because as a respite and a chance to rationalize their of the level of diffusion of 1980s equipment, strategies, knowing that no one can depend namely the Minitel.21 The more this famil- on the emergence of an economic model iarized people with information searching which will deliver, as by a miracle, all the and transactions on-line, the more it acted unknowns of a medium based on a free as a brake on the acquisition of personal service without getting sufficient returns computers or of a modem. In understanding from advertising or related resources. the responsibility of Minitel for the slow growth of the Internet, it should also be recalled that the French public has always POLITICS, POLICY, shown itself to be conservative in relation to technological innovations, as in respect of LAW AND REGULATION television, first in relation to colour televi- sion, then the video-recorder, not to men- Officially, convergence holds a central place tion the telephone. In all these, France was in media policies. Since 1997 there has been much slower than its European neighbours. no let-up in the wish to make good the back- The deficit can be rapidly made up, bearing wardness of France in relation to the offer in mind that in 2000 a quarter of the popu- and use of services on the Internet or in rela- lation owned a personal computer and one tion to multimedia content. Spectacular in seven benefited from Internet access at initiatives have been launched to give a home. popular dimension to this campaign, such As for the operators, the large communi- as the ‘Internet Fair’ which is held each year cations groups, Lagardère (Hachette)22 and in early spring.25 Ministries are expected Vivendi Universal, considered playing a to develop information and services in rela- major role in providing access, alongside tion to this issue. Some of them, such as that AOL, before the latter merged with its rival of Education, have put significant resources Time Warner. Today these groups cannot into the equipment of educational establish- help but recognize the modesty of their ments and teaching provision. achievement in this activity, sometimes The Commissariat Général au Plan has accompanied by heavy losses, while France taken the initiative with studies reviewing Telécom presents itself as the main chal- future prospects centred on the theme of lenger to the large world operators, along convergence.26 It is still the case that policies with Wanadoo. From the point of view of and structures have remained largely sec- the offer of services, this looks, as every- toral, such as those relating to the written where, a little like the bursting of the ‘spec- press, the audiovisual, cinema or the ulative bubble’. Numerous providers have Internet. had to abandon their services.23 Amongst the large information providers, notably the The press media (written press: le Monde, Libération, les Echos, l’Equipe, etc.;24 television: TF-1, Canal The policies relating to the press have for plus, M6, France 2; radio: NRJ, RTL, Radio long concentrated on questions of the mod- France, etc.), the trend is now towards ernization of technology and the support for regrouping and rationalization of invest- the development of the general and political ments and of research into strategies for news and opinion press, with daily news- finding new recipes, such as subscription papers having priority. Concretely, this (Bayard Web). The phenomenon is all the orientation is manifested in the existence more clear since the losses are often consid- of a particular service attached to the office erable, while the advertising receipts do not of the Prime Minister and the Minister of follow. Culture and Communication, one of whose A new phase opens with the question of principal tasks is to deal with and realize the still slow development of the high-capacity support for the press. It is also demonstrated Internet, the commercialization of WAP, by the fact that, each year, parliament votes, which marks the opening of UMTS before in the state budget, a sum dedicated to which each of the large telecommunication ‘direct support’ for the press. The amount is 70 3103-Ch-06.qxd 11/13/03 3:53 PM Page 71

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far from negligible, at around ¤150 million. The Electronic media However, it is relatively modest compared with the ‘indirect support’ that is in the As for television, France has been character- form not of budgetary donations to news- ized by a propensity to modify its legal basis. papers, but of exemptions or reductions in Since 1982 and the law liberalizing audiovi- taxes (VAT, local tax, etc.) or postal tariffs. sual communication, there seems to have The global figure for such direct and indirect been almost a cycle of two or three reforms support comes to nearly ¤2 billion.27 of the law a decade. The most recent dates The priority in favour of the general and from 2000 and is particularly directed at political news press and especially daily encouraging the public audiovisual system newspapers does not prevent aid from bene- towards a more competitive and diversified fiting all forms of the press (especially VAT form in terms of both programming and dis- and the remission of local tax). On the other tribution. In concrete terms, a holding body hand, there have been gradual adjustments has been created for regrouping public tele- in the postal subsidy, with a policy called vision channels, with the post of chairper- ‘targeting’, that gives precedence to dailies son set for a period of five years. The new and to periodicals of general and political law has changed the arrangements under news.28 There is also a new form of support which the regulatory structure – the High for the portage of daily newspapers, similar Council for Audiovisual Media (CSA) was to the contribution given to financing the able to intervene in the face of a prolifera- Agence France Presse,29 of which the princi- tion of cable and satellite programmes. pal beneficiaries are also the informational Finally, it defines the framework that would and political titles. During the 1970s a sub- apply to digital terrestrial television and the sidy was introduced for ‘dailies with weak prerogatives of the CSA with regard to it. advertising income’, which benefitted only Since the law of November 1986 the state journals of opinion.30 Finally, in 1997, no longer intervenes directly in the main parliament decided on the creation of a new body of television, which is the private subsidy intended for the ‘modernization of sector and which is subject exclusively to the daily press’, paid for by a 1 per cent tax regulation by the CSA, established by the law on extra-media advertising receipts. of 1989.31 The CSA decides upon licences to Beyond these general orientations, the transmit (on the basis of candidate applica- state stands as a guarantor of pluralism, or at tions). It examines the obligations laid on least the limitation of concentration. operators. It grants frequencies. It holds In respect of pluralism, the state guaran- operators accountable for keeping to laws tees mutual or co-operative structures in and regulations as well as other commit- favour of press titles, with reference to the ments. Finally it is the CSA that discusses supply of newsprint, the distribution of and decides on the renewal of licences. information, by means of a French inter- Beyond these “structural” interventions, the national news agency. On these two last points CSA guarantees the monitoring of audio- the state is today confronted with the obso- visual media in such a way as to verify accor- lescence and inflexibility of structures dance with the diversity principle in respect which date respectively from the 1947 law of news; to protect “vulnerable audiences”, on press distribution and the 1957 law on especially children and young people, or to the statutes of the AFP. It is a question of limit violence. It has also instituted, along necessary, but delicate, reforms that will with operators, a designation of programmes need to be introduced during the decade. that enables the public to be warned about On the matter of concentration, the law of the degree of violence or their pornographic 1986 fixes a threshold of concentration of character. The CSA has a range of sanctions the press (less than 30 per cent of circulation at its disposal that go as far as provisional or for the same publisher, in the case of the even definitive revocation of the right to daily press). This legal text turns out to transmit (never yet applied). The authority be virtually inapplicable, for lack of an of the CSA, its docility in respect of the adequate jurisprudence. It does not seem, wishes of governments, or its understanding however, that the legislature is likely to pass in relation to the pressures of operators, any new law on this point. One option is to remain a matter of constant debate, some- wait for a possible European law, the other is thing that is doubtless connected with the to treat the press in the same way as any manner of appointment of its members by other economic sector and to submit it to the political authorities.32 This does not pre- the same competition requirements. vent, like it or not, the steady reinforcement 71 3103-Ch-06.qxd 11/13/03 3:53 PM Page 72

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of its legitimacy over the course of time. European Commission, but it would have Until, perhaps, a new law arrives to change been a question of doing so in the face of its composition or its powers. arguments concerning competition which In relation to the public sector, the state would be based on the mixed financing of adopts, by contrast, the role of shareholder the public networks. In respect of finance, or guardian, which is sometimes shared by the general tendency of the state is at one the CSA, leading to situations that can be and the same time opportunist and devious. rather paradoxical. Thus it approaches par- At times, it makes up financial shortages liament to vote funds for the public radio with subventions from the state budget, at and television networks, on a proposal made others it increases the level of the licence fee by the Minister of Culture and Communi- but less so than in neighbouring countries. It cation. The representatives of the state allows the level of advertising receipts to entrust the use of this budget to the admin- grow, to challenge the limits set by the law of istrative councils. On the other hand, it is 2000. This does not prevent top policy mak- the CSA that nominates the chairpersons of ers and government spokespersons from reg- the public bodies,33 assesses their observance ularly announcing that they would not be of their obligations, examines their balance opposed to the abolition of the licence fee. sheets and projections and publishes a report The main consequence of such persistence in on their performance in all these matters. lack of ambition and perspective is to be The direction given to audiovisual policy found in a level of audiovisual production for public broadcasting during the 1990s that suffers all round from lack of resources. evolved little, being marked by declarations The same ambiguities affect terrestrial of attachment to the public sector, without digital television. Public television is to have any corresponding clarification or updating eight of the thirty three channels, although of its mission and without providing the the financing is unclear, beyond an initial means to fulfil it. The state has instead shown budgetary allocation. a tendency to adapt to new situations by a policy of following the current trend. It has The Internet and thus pre-empted the fifth channel that related on-line media became free after the failure of a private net- work – France 5 – before installing Arte there At the legislative level, a major law on the during the evening, then an educational tele- information society announced in 2000 is vision programme, France 5. Rather than supposed to constitute an important step in having an ambitious policy for quality tele- a policy of encouragement and support for vision it has been more a matter of a general the Internet and on-line media. Initiatives drift, including public programming, towards were taken to encourage the diffusion of per- a commercial model, very much oriented to a sonal computers (VAT reductions, etc.) but mass public. Faced with the development of in reality they were limited to efforts on the satellite distribution, the state has pushed part of the public services. The law finally France Television to integrate one of the adopted in 2001 appears to be much less satellite packages, TPS, in the direction, para- innovatory and ambitious than expected. It doxically, of the currently most commercial bears on the freedom of encryption, the operators, TF-1 and M6. As with radio in electronic contract and responsibility (espe- 1987, the state has allowed Radio France to cially of the technical providers). It includes become a niche in the thematic networks, a number of European provisions and new with a programme of current news (France texts, especially relating to the rights of Info), just as it allowed this same public authors.34 organization to react to the quasi-exclusivity A “Forum for Rights on the Internet” was of the new networks for the youth public established on 31 May 2001 – a structure for (Fun, Skyrock, NRJ) by the creation of a youth dialogue and arbitration, styled an organ of theme programme, le Mouv’, in 1998. co-regulation – with reference to problems None of this has gone beyond a minimal- posed by the use of the primary contents ist definition of public service broadcasting: and services. It should help the adaptation to inform; to educate; to entertain. This of the law in the domains of activity covered comes from never having any policy initia- by the Internet. It is charged with making tive that could constitute a platform for a recommendations to public authorities and more ambitious and coherent policy. The also to Internet agencies and actors. state could have found itself faced with a In the absence of specific legislation the request to clarify these matters from the Internet has on several occasions been the 72 3103-Ch-06.qxd 11/13/03 3:53 PM Page 73

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object of passionate debates and of contro- Beyond this is another debate that has versial judicial decisions in the application recurred since the end of the 1980s with of French law. One example concerned the reference to the professional ethics of jour- application of the law relating to the dissem- nalism. Voices are regularly raised to ination of racist or ‘denial’ material (the so- demand a strengthening of the legal provi- called Loi Gayssot) on the Yahoo site, with sions, when they are invoked. Others support reference to the auctioning of Nazi artefacts. the intervention of some authority, whether The judge35 in effect ordered the American established by journalists, by the media (a provider to deny French users access to the press council) or by the public power (an site. This was accepted, although it has only ethical committee), or alternatively an relative efficacy and is liable to be contested extension of the powers of existing regula- in an international jurisdiction. tory authorities (like the CSA). Media professionals (journalists and editors) are Some major cross-cutting issues largely united in opposition to such a move. Others strive for voluntary and pro-active Several large topics that cut across the pre- measures such as the clarification of codes, ceding headings have been or will become a setting up mediators (ombudsmen) or devel- target of policy initiatives and debates. In oping arenas for public debate on public the first place come matters concerning rela- informational practices. More or less con- tions between news and the functioning of nected with this matter, it is of note that the the judicial system. The multiplication of ‘Education Nationale’ has in recent years ‘politico-financial’ scandals, extensively developed programmes that lead progres- ‘mediatized’, with the rise of so-called inves- sively towards the decoding of news and tigative journalism has led to the appear- better understanding of the media. ance in several statutes, relating to penal We should note, in conclusion, amongst procedure, of the phrase ‘respect for the pre- the novelties and the constants of policies sumption of innocence’, as well as provi- followed in relation to the media, those sions concerning media coverage of the measures in favour of ‘difference’ or ‘cul- justice system. If one of the provisions of tural diversity’, which lean towards adapting the 1993 law seemed to give comfort to the the rules of the market so as to prioritize the freedom of information (by recognizing the creation and expression of the national right to confidentiality of sources for jour- culture. Amongst these proposals are several nalists), on the other hand there are provi- relating to books, for instance the ‘unique sions that limit the possibilities for the book price’ designed to preserve a network media to publish and disseminate images.36 of bookshops sufficient to make a large The same debate opposing restriction of range of titles and genres of books commer- liberties and the protection of the person cially viable. The alternative is reducing could well start up again for television in prices and extensive promotion, by way of respect of audiences, children and young supermarket sales, leading to a narrowing persons. In fact it goes beyond the category down of supply to titles and genres that are of information and encompasses fictions, very attractive. In respect of television or shows, debates, games, even documentaries cinematic works and music, measures tend aimed at young people, but also the whole both towards national and European quotas offer of television in so far as it is accessible and towards support in the form of advance to a young audience. Some proposals go in financing (advance receipts, subsidies, the direction of adapting to television mea- etc.37). We must return to the vital question sures contained in the 1949 law (cf. Charon, of authors’ rights, with the part played 2002: 26–34), concerning the press and by the societies for the administration of publication and designed for the protection rights, that have re-emerged as a result of of youth, with the aid of a committee charged convergence and especially because of the with handling problems which might arise development of the Internet and on-line not only with programmes aimed at young media. In all these matters, we can clearly people, but also with adult programmes to discern a division between the fairly con- which young people have access. The debate sensual national preferences on the part of is just beginning, unless it is merely a rerun professionals and also public authorities on for the nth time of a more general debate the one hand and, on the other, the ideas between supporters of freedom and those cherished by the large international com- who put more weight on the protection of mercial media groups (including those with sensitive or vulnerable audiences. their headquarters in France) which incline 73 3103-Ch-06.qxd 11/13/03 3:53 PM Page 74

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heavily towards conceptions that are much 16Of which the capital is held by the state, with more Anglo-Saxon and globalist.38 mixed finance derived from licences, a budgetary contribution and advertising. 17France Inter, France Info, France Culture, France Musique, France Bleue Régions, le Mouv. NOTES 18Europe 1, Europe 2, RFM. 19RTL, RTL-2, Fun. 1Under the pressure of immigration from the 20NRJ, Chérie FM, Rire et Chansons, Nostalgie. Maghreb and Africa which has taken over as the 21A small terminal with a modem, screen and main feature of immigration into southern keyboard for accessing a videotext network, since Europe during the second half of the twentieth 1983, by way of the telephone. The leading appli- century. cation, which justified free distribution of this 2Public broadcasters comprise Radio France, apparatus to all telephone subscribers, was the Radio France Outre-mer, France Télévision and electronic directory which replaced the printed ARTE, whose budgets (partly from licence fees and directory in all households wishing it. partly from the state budget) are voted each year 22Lagardère group ceded Club-Internet in 2000 by the parliament. to Deutsche Telekom. 3At first freely available to all telephone sub- 23Canal Web once proposed several dozen scribers who gave up their annual printed tele- television networks on the Internet. phone directory in favour of an ‘electronic 24The written press has benefited from public directory’. support for multimedia investment, in the form 4AEPM study of the magazine audience, 2001. of returnable advances, in reality only partially 5Data from the Diffusion Conseil show growth returnable, for sums amounting to a little over between 1981 and 2001 from 1,294,000 to ¤2 million a year since 1998. 2,135,000 copies. 25This follows the lead of the very popular 6Of which the Editions du Moniteur, l’Usine ‘Music Fair’ created by the Ministry of Culture Nouvelle, the Test group (informatic press), etc. during the 1980s. 7Principally Les Pratiques culturelles de Français 26To be precise, entitled “The evolution of tasks carried out every seven years, the latest being in of state faced with technological changes in the 1997 (Donnat, 1998). media”. Their conclusions are contained in two 8The turnover of Hachette books in 2000 rose to reports, Dagnaud (2000) and (2000). ¤830 million. 27If the calculation is made at a VAT rate of 19.6 9For instance, VUP acquired the North per cent, bearing in mind that newspapers pay a American educational publisher Houghton tax of 2.1 per cent. Mifflin in 2001. 28It remains so even to globally favourable 10In fact this is a matter of the historical role of magazines that are sold by postal subscription, Hachette, whose activities began with book- whereas the sale of daily newspapers in France shops, then with the distribution of books and depends less on postal subscription than on sales later the press, a sector in which the group occu- at kiosks or home delivery. pied a monopoly position before the Second 29Under the form of state subscriptions repre- World War. senting something of the order of 40 per cent of 11The regional structures of France 3 are also the turnover of the agency, being a little more active in production, but this has notably than ¤90 million. decreased during recent years. 30Not wishing to define what was a daily of 12This relates to the Centre France-Montagne opinion, the legislature preferred to apply ‘techni- and Sud Ouest groups. cal’ criteria, assuming that the opinion press 13In 2000, 133 networks were available on cable receives little advertising (the threshold was fixed or satellite. at 20 per cent of turnover), has a low rate of 14Which does not prevent cable and satellite circulation (threshold fixed at 200,000 copies), from distributing generalist programmes such as with a price making it accessible to a large RTL-9, TMC or Paris Premiere, without counting number (less than ¤1.5). In practice, this identi- the large generalist European network. fied two national dailies, la Croix and l’Humanité, 15Thematic channels are more diverse than this, plus one regional, the Populaire du Centre. since one can find channels for history, discovery, 31The 1989 law in fact mainly reformed the weather, television series, cooking and comedy public audiovisual sector, with reference to the not to mention the showing of foreign channels precedent of the 1986 law. It established the High from Germany, Spain, Italy, North America and Council for the Audiovisual which replaced the Arab countries. National Commission for Communication and

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Freedoms (CNCL), which itself had taken over rise to a series of judgements on the part of the from the High Authority for the Audiovisual courts, leading to the enlargement of the classic Media, established by the law of 1982. At each of right of authorship on the Internet, which may in these legislative steps, the prerogatives of the due course weigh heavily on the conditions for structure of regulation are found, reaffirmed and retrieving information from the Net, the publish- made more precise, at the same time as develop- ers attempting to establish the notion of “collec- ing over the course of the years a form of juris- tive work” for journalistic work, believing prudence for these “administrative authorities”. themselves disadvantaged by comparison with 32Its nine members are appointed by the presi- their Anglo-Saxon colleagues in the matter of dents of the National Assembly and Senate, also by copyright. the President of the Republic. The president of the 35The Court of Final Appeal in Paris ordered CSA is nominated by the President of the Republic, Yahoo, in May 2001, to deny access to French amongst the three members that he appoints. Internet users of the relevant part of the site. 33This mode of appointment seems to have led 36Forbidding, for instance, the publication or to the very frequent, if not systematic, nomination diffusion of pictures of persons wearing handcuffs of presidents from the professional milieus or pictures deemed to be ‘degrading’ to the indivi- (France Télévision, Radio France), rather than duals concerned. from the ‘state commissions’ (Radio France 37In which the Centre National de la International). Cinématographie (CNC) plays an important role. 34The subject of numerous lawsuits between 38Exemplified by the polemical declarations of journalists and publishers, both in the written Jean-Marie Messier, president of Vivendi Universal, and in the audiovisual press, which have given concerning the “cultural clause”.

STATISTICS

Population 60,000,000 Number of households 24,430,000 Movie admissions, 2001 166,000,000 Books sold, 2001 405,000,000

Print media Circulation of main daily newspapers, 2000 L’Equipe 2,619,000 Le Monde 1,993,000 Le Parisien 1,716,000 Le Figaro 1,386,000 Libération 886,000 Les Echos 728,000 France Soir 587,000 La Tribune 531,000 La Croix 303,000 L’Humanité 291,000 Source: Circulation Council.

Circulation of main daily regional newspapers, 2000 Ouest France 767,000 Sud Ouest 336,000 Voix du Nord 320,000 Le Progrès 263,000 Le Dauphiné 255,000 La NRCO 247,000 Est Républicain 210,000 La Montagne 209,000

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La Dépêche 205,000 Les DNA 201,000 Source: Circulation Council.

Circulation of main magazines, 2000

TV magazine 4,489,000 Télé 7 jours 2,371,000 Télé Z 2,291,000 Télé loisirs 1,956,000 TV hebdo 1,826,000 Télé star 1,682,000 Femme Actuelle 1,538,000

Broadcast Audience share of main television channels, average, 2000 (%) media TF-1 33.4 France-2 22.1 France-3 16.8 M6 12.7 Canal plus 7.5 Cinquième/Arte 3.4 Average daily viewing time, 2001 209 minutes

Audience share of main radio channels, 2001 (%) Radio France 28 RTL-1 13.3 France Inter 9.0 Europe 8.7

Number of households reached by satellite, cable or terrestrial pay-television 10,780,000

Percentage of households with:

VCR 90 Satellite receiver (2,900,000) DVD player 14.1

Electronic Percentage of households with: media Internet access 14 Mobile phone ownership 63

Advertising Press 45.2 spend, 2000 Television 30.1 (%) Radio 7.1 Outdoor 11.6 Cinema 0.8

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REFERENCES Dagnaud, Monique (2002) The promotion of Cultural Diversity. Paris: Documention française. Devillard, V., et al. (2001) Les Journalistes français à Baptiste, Eric (2000) Convergence of Media and l’aube de l’an 2000: profils et parcours. Paris: Industrial Strategies. Paris: Documentation Panthéon Assas. française. Donnat, Olivier (1998) Les pratiques culturelles des Charon, Jean-Marie (1999) La Presse magazine. Français. Paris: Documentation française. Paris: Découverte. Charon, Jean-Marie (2002) La Presse des jeunes. Paris: Découverte.

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7: Germany

HANS J. KLEINSTEUBER

NATIONAL PROFILE a consequence, German history was always strongly shaped by non-German influences. Again, starting in the 1950s, foreigners Describing the national characteristics of moved in large numbers to Germany, most Germany is far from easy. Modern Germany of them as migrant labourers (‘guest work- was founded as a latecomer in Europe in ers’), others as political refugees or for eco- 1871 as the Deutsches Reich. But the territo- nomic reasons. About 10 per cent of the ries that make up today’s Germany look population are today what is called ‘foreign’, back at a long history of developing a meaning that they came from another common identity and a common culture, country and are not German citizens. Many based on historical events that were experi- others have been naturalized and are enced together and of course the German counted as Germans. In large metropolises language. But it is not just the national like Berlin or Hamburg up to a quarter of the language of the more than 80 million population are non-German. inhabitants of Germany, but a language The turbulent history of the part of which is also spoken in Austria and parts of Europe that is called Germany today was Switzerland. Altogether this constitutes a shaped by the existence of relatively small common language space – and therefore a states that only loosely co-operated in the media market – of about 100 million people. old German Empire under a weak Hapsburg The old Germany followed an expansion- crown that disappeared altogether in 1806. ist policy, initiated disastrous wars in Europe As a result, the country looks back at a very and lost them. So the borders of the German long tradition of extreme political and eco- Empire – that once included people of nomic decentralization. The political system Polish, French or Danish identity – were during times of democracy has always been changed and limited to the German-speaking federal and even today – after the capital core; modern Germany declared that all moved from tiny Bonn to the largest city, borders are final and maintains friendly rela- Berlin – there is no clear centre in the tions with its neighbours. As a consequence country. When the present Federal Republic there are very few historical minorities was founded in 1949, it was established out living inside the country’s borders, the of the individual Länder (the regional states) largest being Danes south of the Danish that already existed at that time. According border and Sorbes (Slavic-speaking people in to the constitution, they still have the final Eastern Germany). say on all matters of culture. The flexibility But modern Germany is not just a nation of the federal system was again demon- state today, it has changed into a multi- strated when the former communist regime cultural society. Located in the middle of of the centralistic German Democratic Europe, it historically offered a home to Republic (GDR) crumbled and finally dis- millions of people that came from neigh- appeared in 1989/90. The eastern territories bouring countries and settled down on established themselves as five new Länder German territory. Also, at times, parts of and joined the existing eleven Länder of the Germany were controlled by Austrian, Federation (East Berlin merged with West French, Danish, Swedish and other rulers. As Berlin). Both elements, the federal system 3103-Ch-07.qxd 11/13/03 3:52 PM Page 79

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and the consequences of (re)unification are his Kirch group, controlling a large share of very much reflected in the media system the commercial television market and being and give it some unique features. the sole provider of pay-television. Kirch’s Today Germany is home to about 82.1 empire fell apart and entered insolvency in million people who live in a territory of April 2002. Kirch also held a share in the 356,954 km2, the population density is Springer company, the largest publishing about 232 per km2, one of the highest in house in Europe, now under the controlling Europe. The number of households is about influence of Frieda Springer, the widow of 35 million. Relatively high incomes and eco- founder Axel Caesar Springer. nomic wealth ensure high expenditure on advertising and media consumption. The The print media figure for total advertising expenditure in ¤ 2000 was 33 billion, up 61 per cent from The newspaper press 1990, ¤23 billion of which went to the The general characteristics of the German media. Compared with other parts of press include these features: (1) a large num- Europe, Germany enjoys a comfortable ber of titles; (2) strong local papers, often as lifestyle but also shows signs of continuing a monopoly; (3) only a few national papers; stagnation. The rate of economic growth is (4) a large number of magazines. Over among the lowest on the continent. recent years the structure of the press has seen few changes. In the year 2001 the num- ber of ‘independent editorial units’ (mean- STRUCTURE AND ing full publishing entities that produce all parts of a paper) for daily newspapers was OWNERSHIP 136 (in 1954: 225); among these were 129 subscription newspapers and seven tabloids. The generally decentralized structure is It is very common to publish (sub)local reflected in many ways in the media. The versions of a paper, and thus the number of typical newspaper is a local product and different editions was much higher, the total public service broadcasting is based on being 1,584. This gives the impression that regional Länder organizations. On the other the press is highly diversified and centred hand, commercial media actors – print or around localities; in fact many papers are television – often consider Austria and part of chain businesses and most informa- German-speaking Switzerland as a legiti- tion is contributed by the national news mate part of their activities and provide agency, dpa (in Hamburg). Figures for their markets for magazines and television the size of the newspaper market were as programmes with content that is generated follows: 23.8 million newspapers per day, in Germany. Another aspect of decentraliza- 4.5 million on Sundays and 1.9 million tion is the fact that there is no clear media weekly newspapers (year 2000). The circula- centre in the country: news media tend to tion figures show that, among the dailies, centre around the political decision makers 16.4 million copies are reported as local or in Berlin, the news agency dpa (Deutsche regional papers; 1.7 million copies are Presse Agentur) and the weekly prestige national, most of them being sold by sub- press are located in Hamburg, public service scription. Another 5.7 million papers are broadcasting is present in many regional ‘sold on the street’, another word for the cities and commercial television has its tabloid press, often referred to in Germany centres in Munich and Cologne. This struc- as the ‘boulevard press’. The leading tabloid tural decentralization does not contradict paper is Bild-Zeitung with national distribu- another element, the relatively high con- tion by regionalized editions; other tabloids centration of ownership, as some of the have only local or regional significance. leading European media players are located As pointed out, national distribution of a in Germany. The largest media company in paper is the exception. Prominent among Europe, Bertelsmann, still has its headquar- the exceptions are the Frankfurter Allgemeine ters in the sleepy provincial town of Zeitung (FAZ, political position: moderate Gütersloh; today it controls the RTL group, conservative), the Süddeutsche Zeitung (moder- the most successful commercial television ately left), Frankfurter Rundschau (social venture in Europe, and enjoys a higher democrat) and Die Welt (definitely conserva- turnover in the US market than in Germany. tive). Some also count the much smaller Another powerful actor was Leo Kirch and tageszeitung (taz) as national, which started

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in 1979 as an ‘alternative’ paper and is position in the market for Sunday papers. owned as a co-operative venture by its readers Second position is taken by the regional pub- (and follows a somewhat ‘Green’ line). The lisher WAZ group with a share of 6 per cent; phenomenon Bild-Zeitung (i.e. picture paper) third place is occupied by the Stuttgarter deserves special mention in describing the Zeitung group with 5 per cent, followed by German press. This daily paper (on Sundays: the Cologne-based DuMont Schauberg with Bild am Sonntag) published by the Springer 4.4 per cent. The Bertelsmann company is still company has the extraordinarily high circu- weak in dailies and ranks eighth through lation of more than 4 million copies (in its majority-owned Gruner & Jahr subsidiary 2001: 4.4 million) per weekday. It uses a (2.8 per cent). Newspaper companies have tabloid format, follows questionable report- reacted to the reduction in earnings from adver- ing standards and traditionally shows a tising and the stagnation of sales by streamlin- strong right-wing orientation. ing internal operations. The Springer company, The daily newspaper industry had a for example, merged the newspaper offices of turnover of ¤10.8 billion in 2000, of which Die Welt and Berliner Morgenpost in Berlin. ¤6.9 billion came from advertisements. It The norm in the smaller newspaper still gets the largest share of all advertise- markets is one local monopoly paper, while ment money (28 per cent), but – as in other in the big cities a few competing newspapers countries – faces problems of decline. usually share the market. In Berlin, the new Seventy-eight per cent of the population capital of the country, the market is highly (age fourteen or over) regularly read a news- competitive, with seven subscription papers, paper; most readers are to be found in the whereas Hamburg, the second largest city, has forty to sixty-nine age group, with more only three subscription papers and suffers than 80 per cent active readers. Press reader- from the market dominance of Springer, ship is lower among young people aged which accounts for more than 80 per cent of twenty to twenty-nine, which reaches only all newspapers (subscription and tabloid sold). 66 per cent. Sales of newspapers are stagnat- ing, but definite differences between West The periodical and magazine press and East have to be recognized. The gener- All in all, 2,040 general magazines (with 124 ally depressed situation in east Germany is million copies) and 3,590 specialized maga- reflected in declining sales figures and serious zines (with 17 million copies) were pub- loss of advertisement revenue. The situation lished in 2000. About half the general is more stable in the west. magazines are sold by subscription (48 per It should be mentioned that the larger cent), the rest on the street (52 per cent). migrant communities in the country are About 10 per cent of all advertising money served by newspapers from their respective goes into general magazines and another countries that are printed in Germany (some- 5 per cent supports specialized periodicals. times edited in Germany as well). About one- Some of the weekly magazines have third of this population is Turkish-German, gained special prominence. The Hamburg and the leading Turkish paper Hürriyet sells weekly Der Spiegel, originally designed to more than 100,000 copies per issue. There are copy the American Time Magazine, for long two more Turkish papers and others from the enjoyed a virtual monopoly of the market former Yugoslavia, Greece and Spain. Turkish for political news. With its investigative satellite television is prominent as well, and style of journalism, it has made quite a there are debates as to whether the consump- number of scandals public and is reckoned tion of media content from one’s home the most influential political publication. country makes integration more difficult. During the last few years Focus (a Burda pub- The tiny ethnic minorities are served as well: lication) has challenged this position with a roughly 30,000 Danes read their paper, politically more conservative line and Flensborg Avis, radio and television offer pro- flashier design. The market for general inter- gramming in the Sorb language. est magazines is still quite active, Der Stern The German market for daily newspapers by Gruner & Jahr (controlled by Bertelsmann) shows definite signs of concentration. The being the most successful and best known, largest market share (23.6 per cent) goes to with a liberal and investigative format. the Axel Springer company, the largest pub- Quite influential as a ‘highbrow’ weekly is lishing house in Europe, with dailies like Die Zeit, a politically independent paper that Bild, Welt, Hamburger Abendblatt, Berliner still follows a newspaper format (now part of Morgenpost, etc. Springer also has a dominant the Holtzbrinck group).

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The magazine market shows a somewhat and production responsibility rested with different structure from that of newspapers. the state postal service, with strong political It is dominated by four large companies. The control, mainly by the Ministry of the biggest market share is held by the Bauer Interior. Programming was quite plural, company, a relatively unknown publisher though; one of the authors of radio plays that is mostly active in the ‘yellow’ segment was Bertolt Brecht (Nachtflug). The seizure of (in German: ‘rainbow magazines’). Its power by the Nazi regime on 30 January market share is 22.3 per cent with thirty 1933 brought an immediate change (on the six titles. The other three publishing houses same day) as the old directorate of the radio are Springer (twenty nine titles), Burda organization was forced to resign. Radio was (twenty four) and Gruner & Jahr (thirty immediately seized and became the central one), which is controlled by the Bertelsmann propaganda tool of the Third Reich. In 1945 conglomerate. Together they account for a what remained of the radio infrastructure market share of 58.6 per cent (2000). The fell into the hands of the Allied occupation rest of the market is distributed between forces, who built up a new radio network smaller actors, among whom Holtzbrinck is from scratch. another important actor. The radio system before 1945 was central- ized. Its structural development after 1945 Book publishing reflected the fact that Germany had been The book markets of the German-speaking divided into different occupation zones and countries of Europe are highly integrated, the occupation forces created regional meaning that books published in Austria or broadcasters (more or less) along Länder Switzerland are freely available on the borders that still exist today. The British German market and vice versa. Many of the forces established one unified organization, leading book publishers have been acquired the NWDR, that covered the north and west during the last decades by the large media of Germany. The NWDR reflected some of companies, for example Ullstein by Springer the centralism of the BBC. In the 1950s this and Rowohlt by Holtzbrinck. A special case organization was split by party rivalries into is Bertelsmann, which has bought up the NDR for the north (Lower Saxony, Hamburg largest book publisher in the world, Random and Schleswig-Holstein) while the WDR House in New York, and also controls took over in the west (North Rhine- dozens of German book publishers in many Westphalia). The Americans established different markets, including paperbacks regional, that is, Länder-wide, broadcasting (Goldmann, etc.), hard-cover (C. Bertelsmann, organizations, as in Hesse (HR) and Bavaria etc.) and academic books (Springer – not (BR) that are still in existence today. More related to the Springer company) and many broadcasters were added as a result of the others. unification process. The resulting structure In the year 2000 about 83,000 book titles makes up today’s public service system, were published in Germany (1990: 61,000), responsible for radio and television services. among them 63,000 as first editions. Twenty-five per cent of these are categorized Television as social science books and 16 per cent as Television transmission started in 1954 literature, language, fiction and poetry. with one TV channel. It was based on the About 10 per cent of the titles are published co-operation of all Länder -organizations as paperbacks. The annual turnover of the that established for the purpose the industry was DM 18.4 billion. According to Arbeitsgemeinschaft der Rundfunkanstalten studies, 59 per cent of the general popula- Deutschlands (ARD). The different ARD- tion pick up a book to read at least once a broadcasters share the responsibility for the month. A special feature of the German programmes among themselves according book market is a system of fixed prices to size (for example, the large west German (retail price maintenance), an age-old prin- WDR accounts for 21.3 per cent of program- ciple that is under increasing attack from ming, the small Radio Bremen for 2.5 per the European Union. cent), while some activities are provided centrally. The news of ARD Aktuell comes The electronic (audio-visual) media from Hamburg. An attempt by the federal government to Radio transmissions started in 1923. The introduce a second channel was stopped by only channel was financed by a monthly fee the Federal Constitutional Court in 1961 in

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a decision that has pointed the way to this (Pro-7, Vox, RTL-2, Kabel 1) as well as day. All national broadcasting activities were specialized channels for music (Viva 1 + 2), to take place at the level of the Länder rather sport (DSF), news (ntv, N-24), etc. Also in big than at federal level. Länder swiftly moved to cities (Berlin, Hamburg, Munich) and some prepare for a second channel. It started in regions (Franconia, Rhein-Neckar, Saarland, 1963 as Zweites Deutsches Fernsehen (ZDF), etc.) sub-regional and metropolitan tele- based on the common agreement of all vision was introduced. After a rather diversi- Länder to jointly establish a new public fied beginning in the television business service broadcaster independent from ARD most channels were bought up and merged with its centre in the city of Mainz. At the into two groups that are often called ‘sender same time the existing (ARD) broadcasters families’. One is part of the Kirch group, introduced regional third channels (NDR III, consisting of (among others) Sat-1, Pro-7 etc.), jointly called ARD-3. The first two and DSF, the other is the RTL family, con- channels offered a general programme, the trolled by Bertelsmann and including RTL, third channel started with a high content RTL-2, Vox and others. Only a few minor of regional and cultural programming. The channels remain independent, among them third programmes, some of them sub- Viva and ntv. regionalized at times, together with the Over 90 per cent of all households receive regional radio programmes, concentrate on television programmes via cable or satellite providing all regions of the country with a (2000: 91.4 per cent); less then 10 per cent is well developed service. In addition ARD-1 terrestrial. This puts Germany in a unique shows programming that is generated in dif- situation among Europe’s large countries, as ferent parts of the country, so that public a very large share of all households receive service broadcasting is a strong factor in sup- around thirty German-language programmes porting regional identities. ‘free’, that is, outside pay-television. Besides Already in the 1970s there were attempts this offering, some foreign channels are to break the public monopoly and introduce generally fed into the cable systems (and of commercial broadcasting. These actors, course are available via satellite) like CNN, mainly in the newspaper industry, actually MTV (both with German-language options). succeeded in 1984/5 when a dual system was This situation makes any attempt to start established. After some years of inactivity, pay-television quite complicated. Analogue the public broadcasters began to react to the pay-television was first introduced by the challenge and started to offer on the one Premiere company in 1991 (then jointly hand more entertainment content on their owned by Bertelsmann, Kirch and Canal general channels, on the other they estab- Plus). In 1996 Leo Kirch started his own pay lished a number of new specialized chan- venture (DF-1) with packaged digital televi- nels, among them a joint offering with sion. After several years of in-fighting Austria and Switzerland in the German- Bertelsmann sold out and Premiere plus DF-1 language region (3sat), a German–French were merged into the Kirch empire as cultural channel (ARTE), a documentary Premiere World, offering about thirty chan- channel (Phoenix), a children’s channel nels of the usual pay diet, mainly out of (Kika). Also the ARD-3 programmes are Kirch’s huge film library. Pay-television met being distributed via satellite and cable and an especially difficult market situation in therefore available in most households. This Germany, as a freely available multi-channel adds up to a situation where most Germans environment already existed. Also the Kirch have ten or more public service channels company used a set-top box (d-box) with a available. Deutsche Welle (DW-tv) is the proprietary architecture, forcing competitors foremost broadcaster in the country, again who wanted to join digital television to based on a public service format, financed work under Kirch’s supervision. Premiere by the federal budget and transmitting World never reached more than 2.4 million twenty four hours worldwide in three households (2001/2) and produced heavy languages. deficits, amounting to several billion euros. The first commercial competitors to the Rupert Murdoch’s News Corporation public broadcasters were RTL (originally acquired a share of 22 per cent in the deficit- transmitting from Luxembourg as RTLplus ridden company and carries an option to across the border) and Sat-1 (originally dis- take more. In April 2002 parts of Kirch’s tributed via satellite). During the following conglomerate company moved into insol- years new general channels were introduced vency, mainly because of the huge deficit in

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pay-televison. ARD and ZDF each offer a cable for several years, but was cut off for package of free digital television via Kirch´s lack of interest. After years of research and d-box, but the audience is minimal. The trial projects a new digital version of radio, public broadcasters joined ranks with RTL, called Digital Audio Broadcasting (DAB), the consumer electronics industry and was introduced in 1999 and most of the others to introduce the Multimedia Home country is covered by a network of DAB Platform (MHP) for future digital television, transmitters, partially paid for out of the and in 2001 even Kirch reluctantly sup- public broadcasting fee. But interest in DAB ported MHP. is minimal. For the last few years RTL has enjoyed the The public service monopoly in radio highest audience ratings, followed by ARD, existed until 1985 when the first commer- ZDF, Sat1 and Pro 7. Over this period the cial radio stations were licensed. As the combined ratings of the third channels licences are handed out by Länder-based (ARD-3) have slightly increased. In the year broadcasting authorities, the situation is 2000 television received about ¤4.7 billion diverse as quite different policies are pur- or 20 per cent of all advertising money. A sued. As a rule, the Länder of the south offer special aspect is that viewers of public tele- licences for local radio stations whereas in vision are much older than those of their the north regional networks are the rule. commercial competitors. The former The most populous Land, North Rhine- attempt to attract younger viewers but have Westphalia, decided to introduce a unique to do so with the existing programme two-columns model in which local commer- scheme as they are at present barred from cial broadcasters are legally required to offer introducing any new channels. Media con- some radio time to local non-commercial sumption between the east and west of the citizen groups. On the whole, commercial country still differs considerably: Germans broadcasting is rather diversified in terms of in the former GDR watch more television ownership, but the large media conglomer- and read fewer newspapers. They prefer ates are often involved and own shares in commercial to public television and have a the most popular stations, as do the local special liking for the regional third channels newspapers. The larger regional networks (ARD-3) that regularly show material from and the leading metropolitan stations tend the old GDR archives. to be profitable, whereas the small local stations often struggle for survival. Radio In the larger markets (like Berlin or As is to be expected, nearly all radio is Hamburg) quite a number of commercial either regional or local. Besides two nation- radio stations are active, the most successful ally distributed public service programmes usually following the leading format of (DeutschlandRadio), a remnant of the ‘adult contemporary’ or variations of this unification process, all other programmes (Deutsch-AC). Others offer less popular for- are limited to a regional or local range. The mats, but common to all is strictly commer- Länder organizations of the ARD also run the cial management, following the American regional radio networks, typically offering models. A commercial station, Klassik Radio five to six channels, including a popular (managed by the Bertelsmann company) format (‘adult contemporary’, usually with owns licences in a number of German cities. some commercial spots), one with classical The leading newspaper FAZ established a music, often one with news only, sometimes business news station in 2001 (first in a channel catering for older people (German Frankfurt, than extended to Munich and Schlager music) and/or for youngsters. In the elsewhere). About ¤732 million or 3 per cent more densly populated parts of Germany of all advertising money goes into radio sub-regional and to some extent local pro- (2000). gramming is offered. Local radio of the community type had a Radio is available on cable and to some difficult start in Germany. Media develop- extent on satellite (Astra Digital Radio), but ments usually take place in an atmosphere most of the reception is terrestrial, because of strong governmental influence and much of the actual consumption is in a attempts to establish pirate radio were heav- mobile environment (car radio, etc.). Radio ily prosecuted. Understanding of a non- programmes distributed by cable and satel- profit, community-based type of radio was lite are of little importance; digital radio as nearly non-existent, enjoyed little political Digital Satellite Radio (DSR) was offered via support and is still relatively underdeveloped.

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The first station of this type, Radio decentralized and a film-maker may have to Dreyeckland, is still active. It started in appeal to several institutions before enough the border region between France and financing is secured. Switzerland and can be seen as a German version of a French radio libre. In the year The Internet and related on-line media 2000 about fourty non-commercial stations were on the air, most of them in the south Concerning the Internet, the share of west Land of Baden-Württemberg (fourteen), Germans that use this new service is – in the south (Bavaria ten), in Hesse (seven) according to an ARD-Online study of and Lower Saxony (six). The city of 2001 – 38.8 per cent (figures for 2001), Hamburg has one such station, one (Freies including 48.3 per cent of all males and 30.1 Sendekombinat, FSK) is organized like a per cent of all females. The two main federation, offering radio time to different providers of online services are T-Online, a groups (politics, women, city quarters, uni- daughter company of Deutsche Telekom, versity). Besides these regular community and AOL-Online. All major media estab- stations, some are organized as public access lished online presentations of their respec- channels and offer service on a ‘first come, tive service; the most successful among the first served’ basis. broadcasters are: rtl.de (1.48 million hits in February 2002), sat1.de (800,000), sport1.de Film and video (510,000) and wdr.de (500,000) – WDR is The film and video industry of Germany is the public broadcaster of North-Rhine quite typical for Europe. All in all there are Westphalia. The public service broadcasters about 4,600 cinemas (2000) in Germany have invested heavily in online services and which account for about 10.6 seats per thou- all of them established portals that concen- sand inhabitants. The film market is heavily trate on news (tageschau.de), regional dominated by American productions. About matters and material to accompany their fifty (1998) to seventy five films (2000) that programmes. Their commercial competitors have been made in Germany make it into emphasize entertainment, games and inter- the cinemas each year. This accounts for a active chats. Also all major newspapers are market share for German-produced films of active in online services; some like that of between 16.7 (1997) and 9.4 (2000) per cent. the FAZ paper (faz.de) have started to charge Compared to this, American dominance is for extensive use. The central news agency, impressive. In the year 2000, 165 American dpa, does not offer its rich information films reached a market share of 81.8 per service to end users, instead it provides cent. Among all other countries, only online news that is presented by newspapers imports from Britain have any siginificance under their own names. So far the conse- (2000: 5.1 per cent). The video industry has quences for the traditional media are not shown some increase in turnover (1991: DM threatening; most endangered are the news- 1.641 billion, 2000: DM 1.827 billion). This papers that have already lost some of their is distributed between leasing videos (666 business in classified advertisements. million), video sales (828 million) and DVD sales (333 million) for the year 2000. Because of the long-lasting crisis in the film production industry, a system of cul- POLITICS, POLICY, LAW tural subsidies and economic stimuli on AND REGULATION several levels has been built up. The federal government introduced a small levy that has The press to be paid on every cinema ticket bought that goes into a pool for film support. Also, a Because of Germany’s catastrophic history, number of the Länder run their own scheme 1945 was a virtual ‘hour zero’, with the for support, mainly those that have a base in collapse of the Nazi dictatorship and its pro- film production (like NRW, Bavaria, Berlin, pagandist media system. First steps were Hamburg). Further public service broadcasters taken by the occupation authorities to intro- agreed to aid the industry by financing duce a new structure of (licensed) German selected film projects that in return are newspapers and magazines; virtually all shown on television after they have finished famous names stem from these years (except in the movie theatres. The system of subsi- Bild). Rather similarly, broadcasting started dies is – typically for Germany – rather under the control of the allies and was only

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gradually placed in German hands. This The markets for radio programming are regime ended in 1949 with the founding of regulated by the Länder, therefore national the Federal Republic, on the basis of the new radio is nearly non-existent. Basic Law as its constitution. Article 5 of the Public service broadcasting today is based constitution (Basic Law of 1949) says: on organizations, created by the Länder, of a very peculiar legal construction (called Everybody has the right to free expression Anstalt), with a Director General (Intendant) and publication of his opinion in word, writ- at the head. When several Länder co-operate, ing and picture and the right to obtain infor- they jointly sign an agreement that consti- mation without hindrance from sources tutes the legal basis; for example, NDR generally accessible. The freedom of the press (Norddeutscher Rundfunk) provides radio and of reporting by broadcasting and film is and television for four northern Länder, ZDF guaranteed. There must be no censorship. was jointly established by all sixteen Länder. (Article 5(1)) These broadcasting organizations are Besides these general guidelines that are financed mainly by a monthly fee, also part of the human rights section of the con- some advertising money is earned. At the stitution, not much reference to the media beginning of 2001 the combined fee for is to be found. Article 70 stipulates that law- radio and television was ¤16.15 per month. making for the press rests with the Länder, Control of the Anstalt is by a Broadcasting but the federal government may specify a Council (Rundfunkrat) that includes repre- common frame of regulation (article 75), sentatives of politics (members of parlia- which it never did. All Länder passed press ment and government) and ‘socially laws that contain similar regulations (about relevant groups’ to guarantee pluralism publishers’ information, journalists’ rights (Churches, chambers of commerce and and other matters), as such making sure that trade unions, sports, women, culture, the newspaper companies are treated equally environment, etc.). In fact the most power- everywhere. Besides these laws, a system of ful groups in this system are the two main self-regulation has emerged: a Press Council political parties (the Christian Democrats (Deutscher Presserat), that includes repre- and Social Democrats). They are usually sentatives of publishers and journalists, strong enough to decide among themselves handles complaints and makes reprimands about the appointment of leading personnel public. An Advertisement Council serves a in the organization. Often they apply a similar function. policy of ‘black and red’ proportional repre- A special regulation for the press was sentation, the party in government selects included in the Federal Cartel Law in 1976. the Intendant, the opposition party the Vice The critical definition of market dominance Intendant, and so on. was more strictly specified for the press Commercial broadcasting too is regulated than for other branches. But enforcement entirely by the Länder. Problems that concern of these rules was not hard-line, also the more than one state are addressed in an publishers have attempted to revoke the agreement, negotiated between all Länder legislation. (Rundfunkstaatsvertrag), that is regularly updated. The latest (the fifth) started at the The electronic media beginning of 2001. Licensing and the general monitoring of programmes are done by In the crucial year 1949 much of the broad- fifteen state media authorities (Landes- casting infrastructure had already been medienanstalten; Berlin and Brandenburg run established on a regional basis. The consti- a joint organization). Their responsibility tution reflects this fact by offering the also includes television programmes with Länder final responsibility over all questions national distribution; supervision is then of broadcasting, which is still the case today. done by one of the authorities. The Länder This position was upheld many times (some jointly established two more organizations to say: created) by the Federal Constitutional handle problems of concentration (KEK) and Court in leading decisions, the first one public service finances (KEF). Germany has dating back to 1961. This leads to a unique by far the most complex structure for broad- situation worldwide: public service broad- cast regulation in the world, not least because casting rests on Länder broadcasting laws, the authorities are too small to handle large while commercial broadcasting is regulated media conglomerates and a licensee may by state media authorities (fifteen altogether). change to another Land if it is not satisfied.

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Under the constitution, telecommunica- with interactive capacity is demanded by tions matters are the final responsibility of state actors, but limited by uncertainty the federal government. After abolishing the about the future of the cable networks. In Postal Ministry, a Regulatory Authority for general the penetration of the Internet is Telecommunications and Post (Regulier- below the northern part of Europe but above ungsbehörde für Telekommunikation und that of the south. Post) was established in 1998 that handles Starting about 1995, the federal govern- all matters of telephony, etc. The resulting ments of the then liberal-conservative spec- separation between broadcasting regulation trum (until 1998) and later the ‘red – green’ at the Länder level and telecommunications government (since 1998) were equally keen regulation at the federal level results in a to introduce what was mostly called the highly fragmented structure, which clearly ‘information society’, meaning a society in collides with the tendency towards conver- which information technologies and infor- gence and digitalization. Politicians are well mation jobs play a leading role. Plans were aware of the problem, but so far they have realized to have all schools wired, to intro- proved unable to change anything. The duce special support for research in infor- results are sometimes odd. To handle the mation and communication technologies new information and communication tech- and the study of informatics. State authori- nologies the federal government passed a ties promised to go ahead in introducing law in 1997 for new communication ser- e-government wherever possible and work vices, while all Länder joined together to on the introduction of e-voting. But none of agree a policy for media services on the this differed much from the plans of other Internet in the same year; some of the word- European countries and similar measures by ing of both documents was identical. the European Union. In general, opinion Because of the federal basis of West polls demonstrate that Germans are rela- Germany it was relatively easy to incorpo- tively sceptical about new technologies, and rate additional territories into the Federal interest in new media is low. Republic. This happened with the Saarland, In terms of technology policy heavy which returned from France in 1956. It emphasis was put on the EU project of intro- established the small SR organization with ducing digital radio, based on the technol- an emphasis on German–French border ogy of digital audio broadcasting (DAB). themes. The federal logic also made it easy Much of the development was done in to integrate the former German Democratic Germany and it was established as a regular Republic into the existing system. When it service in 1999. But sales of receivers are collapsed in 1989/90 the eastern state split minimal and DAB could well turn out to be up into five Länder. Each either established a total failure – at least for the immediate its own broadcasters (MDR, ORB) or joined future. Also Digital Video Broadcasting in its western organizations (NDR). terrestrial version (DVB-T) has been intro- duced in pilot projects, and plans are under The Internet and related on-line media way to introduce a regular service in the year 2002. Switching to DVB-T will not have It is certainly not easy to separate the new much impact, as most households receive media from traditional media, in fact in the television signal via cable or satellite. A many cases we find situations of transition general digital initative of the federal gov- and convergence. Generally speaking, in ernment seeks to end analogue television by most fields Germany is not a leader in the 2010 and analogue radio by 2015. It seems new media in Europe for a number of doubtful that these goals will be reached. reasons. Concerning the digitalization of Broadband networks for high-speed television it lags behind other countries like Internet and interactive television services Britain, mainly because of the critical situa- are seen as the ‘information highways’ of tion in pay-TV. The break-up of the Kirch the next generation. In Germany they are empire will probably mark another phase of still in their infancy. This has to do with the uncertainty. In the field of radio digitaliza- stagnation that has taken place with regard tion, Germany was keen to introduce DAB to the huge cable networks that reach more technology and invested several hundred than 60 per cent of all households and are million euros, but the take-up is minimal. still mostly under the control of Deutsche The introduction of broadband infrastructures Telekom. This telecoms company has been

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ordered by the European Union to sell its Typically for a transnational company, its cable networks, but has done so in only a scope is global; the capital is still German, few Länder. Most of the cable systems were though, controlled by the Mohn family and scheduled to go to John Malone’s Liberty company workers of Bertelsmann. company but the sale was stopped by the Other German media actors have devel- anti-cartel authority. So Deutsche Telekom is oped much less of a global perspective. Some still looking for an interested investor, but companies like Burda have at least moved the value of the network is going down. In some of their activities out of Europe, for the meantime Telekom is selling its own example running printing plants in North high-speed Internet service via DSL lines America. But most of the investment of (called T-DSL) and has provided more than larger actors is in neighbouring countries. 2 million households (2002) with the new Very much to the dislike of Austrians, much technology. This gives Telekom an advan- of the newspaper industry in that country is tage and makes it even more difficult to sell controlled by German companies, especially the remaining cable networks to anybody the WAZ group which owns the two largest who is prepared to risk money and establish newspapers. The WAZ group has, like other a hybrid network with broadband capacity publishing houses, also moved into Eastern for more television channels, video on European markets, bought up existing news- demand and telephony. Whereas Germany papers and issued new magazines that usu- was – among Europe’s large countries, at ally copy successful publications of the west. least – a front-runner in cabling in the On the other hand, most global compa- 1980s, the country has, with regard to nies are active one way or an other in the broadband networks, been in a state of stag- German market. CNN (AOL Time Warner) nation for a number of years. holds a share in the German news channel ntv, Disney in Super-RTL, Murdoch in Transnational and European aspects Premiere World. Some of the cable systems are controlled by non-German actors, satel- As was pointed out above, Bertelsmann is a lite television is controlled mostly by the classic transnational player which today Luxembourg Astra company (in which earns higher returns on the American than Deutsche Telekom is a shareholder). The on the German market. The company’s strat- financial troubles of the Kirch group in 2002 egy is to concentrate on content and it there- will certainly lead to some rearrangements fore has become the largest book publisher that could include more foreign investors: in the world (controlling Random House and Murdoch of News International. But, in many other publishers in different coun- general, non-German control of the media is tries). It is also active in the global music still weak. This reflects the fact that the business (BMG) and the strongest actor in market with its decentralized structure and European commercial television (RTL strong political involvement is difficult group). The Bertelsmann company tradition- for foreigners to cope with. But this will ally follows a decentralized structure of profit change, of course, with the further with- centres which implies that some of the top drawal of politics from the media and the management is located in the United States. Europeanization of media politics.

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STATISTICS

Population 82,100,000 Number of households 34,700,000 Movie admissions (ticket sales) 1999 149,000,000 1992 106,000,000 Books published, 2001 (new titles) 82,936

Print media National Bild-Zeitung, Hamburg (Springer) 4,396,000 Süddeutsche Zeitung, Munich 436,000 Frankfurter Allgemeine Zeitung, Frankfurt 408,000 Die Welt, Berlin (Springer) 255,000 Die Tageszeitung, Berlin 59,000 Regional Westdeutsche Allgemeine, Essen (WAZ group) 558,000 Freie Presse, Chemnitz (Stuttgarter Zeitung) 386,000 Rheinische Post, Düsseldorf 341,000 Mitteldeutsche Zeitung, Halle (duMont) 351,000 Hamburger Abendblatt, Hamburg (Springer) 288,000 Kölner Stadtanzeiger, Cologne (duMont) 276,000 Magdeburger Volksstimme, Magdeburg 263,000 BZ, Berlin (Springer) 259,000 Circulation of newspapers, 2001 Daily (per day) 28,400,000 Weekly (per week) 1,900,000 Magazines (per issue) 129,700,000 Market shares of major newspaper publishers, 2000 (%) Axel Springer 23.6 WAZ 6.0 Stuttgarter Zeitung 5.0 DuMont Schauberg 4.4 Süddeutscher Verlag 3.3 Frankfurter Allgemeine Zeitung (FAZ) 3.0 Ippen Group 2.9 Gruner & Jahr 2.8 Holtzbrinck 2.5 Madsack 2.4

Broadcast Audience share per television channel, 2001 (%). All are on cable and satellite; all public media service channels are also terrestrial, private commercial ones are sometimes terrestrial. 18:00-20:00 20:00-01:00 ARD-1 13.3 14.3 ZDF 16.2 13.5 ARD-3 15.9 14.4 SAT-1 10.6 10.0 RTL 14.8 15.7 Pro-7 6.1 8.3 Other 23.0 23.9

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Radio It is not possible to give figures on radio channels, as no national programming of significance exists. Percentage of households with: Satellite (2001) 56.3 Cable (2001) 33.2 Pay-television subscriptions (2001) 10.4 VCR (2001) 67.8 Satellite receiver (2001) 35.9 DVD player 8.0

Electronic Percentage of households with: media Digital television reception (2001) 5.1 Internet access, 2001: Internet users 24,800,000 Share of total (%) 38.8

Mobile phone subscription (2001) 56,240,000 Share of total (%) 69

Advertising Newspapers 22.9 spend, 2000 Magazines 25.6 Television 42.8 (%) Radio 6.0 Posters 2.7

Ownership Main media companies, 2001

Turnover (¤) Employees Bertelsmann (worldwide activities) 20,036,000,000 82,162 Gruner & Jahr (mostly owned by Bertelsmann) 3,042,000,000 12,964 Axel Springer 2,864,000,000 14,000 Georg von Holtzbrinck 2,365,000,000 12,500 Pro-7 Sat-1Media (formerly owned by Kirch group) 2,028,000,000 10,729 Westdeutsche Allgemeine (WAZ group) 2,000,000,000 n.a. Heinrich Bauer 1,655,000,000 5,742 RTL Television (mostly owned by Bertelsmann) 1,475,000,000 950 Hubert Burda 1,396,000,000 6,717

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REFERENCES Kleinsteuber, H.J. and Thomass Barbara (1999) ‘Germany: continuity of the Länder system and the rise of urban television’ in M. de Moragas Altendorfer, O. (2001) Das Mediensystem der Bun- Spá et al. (eds) Television on your Doorstep. desrepublik Deutschland. Wiesbaden: Westdeutscher Decentralization Experiences in the EU. Luton: Verlag. University of Luton Press.Media Perspektiven ARD, ed. (annual since 1969) ARD-Jahrbuch (ARD (annual) Daten zur Mediensituation in Yearbook). Cologne: ARD. Deutschland. Frankfurt: ARD. Bausch, H., ed. (1980) Rundfunk in Deutschland, Meyn, H. (1999) Massenmedien in der 5 vols. Munich. dtv. Bundesrepublik Deutschland. Berlin: Colloquium. BDZV, ed. (annual) Zeitungen (Yearbook of the Pürer, H. and Raabe J. (1994) Medien in Publisher’s Organization). Bonn: BDZV. Deutschland: Presse. Munich: Ölschläger. Deutscher Presserat (annual) Jahrbuch (Yearbook Schwarzkopf, D., ed. (1999) Rundfunkpolitik in of the Press Council). Konstanz: UVK. Deutschland. Wettbewerb und Öffentlichkeit (2 DLM Yearbook (biennial, since 1988) Jahrbuch vols). Munich: dtv. der Landesmedienanstalten (Yearbook of the Stuiber, H. (1998) Medien in Deutschland: Rundfunk Länder Supervisory Organizations). Munich: (2 vols). Constance: UVK Medien. Fischer. ZAW, ed. (annual) Werbung in Deutschland Hans-Bredow-Institut, ed. (biennial) Inter- (Yearbook of the German Advertisement nationales Handbuch für Hörfunk und Fernsehen. Association). Bonn: ZAW. Baden-Baden: Nomos. Hickethier, K. (1998) Geschichte des deutschen Periodicals: Media Perspektiven, Rundfunk und Fernsehens. Stuttgart: Metzler. Fernsehen, Publizistik, message. Humphreys, P.J. (1994) Media and Media Policy in West Germany: the Press and Broadcasting since 1945. London: Berg.

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8: Greece

STYLIANOS PAPATHANASSOPOULOS

NATIONAL PROFILE with a weak and atrophied civil society where the state has to take on additional Greece is a small European country, located politico-ideological functions (Mouzelis, on the southern part of the Balkan penin- 1980). This makes the system less self- sula in the south-eastern part of Europe. By regulatory than under developed capitalism the middle of the nineteenth century, such as exists in Britain or in the United Greece had just emerged from over four cen- States. Moreover, the lack of self-regulation turies of Ottoman rule. Thus for many is also noticeable at the level of politico- decades Greece was confronted with the ideological superstructure, because in a weak tasks involved in the process of nation civil society even the economically domi- building, which has had consequences in nant classes do not manage to form well terms of the formation of the over-extended organized and cohesive pressure groups. character of the state. Owing to the persistence of patronage poli- The total area of the country is 132,000 tics, even bourgeois parties and interest km2, while its population is of 11.5 million groups are articulated within the state inhabitants. Most of the population, about machinery in a clientist/personalistic manner 4 million, are concentrated in the wider (Charalambis, 1996; Mouzelis, 1995). This metropolitan area of the capital, Athens. has led the state to promote the interests of This extreme concentration is one of the particular types of capital rather than the side effects of the centralized character of interests of capital as a whole. A further con- the modern Greek state and the unplanned sequence of the lack of self-regulation and urbanization caused by the industrialization weak civil society has been to allow the state of the country since the 1960s. Unlike to intervene strongly in the politico- other European countries, almost all Greeks, ideological sphere. This is also seen in its about 98 per cent of the population, speak strict control over the broadcasting media. the same language, Greek, as a mother tongue, and share the same religion, Greek Orthodox. Regardless of this homogeneity, political STRUCTURE AND OWNERSHIP life in the past was dominated by a pro- found cleavage: modernists versus tradition- The mass media have been characterized by alists, left versus right, while the Church an excess of supply over demand since the has always played a role in influencing the foundation of the modern state. In effect, it attitudes of society. Furthermore, this situa- appears to be a kind of tradition in Greece, tion has largely arisen from the tensions in since there are more newspapers, more tele- society since the Second World War. These vision channels, more magazines and more tensions, combined with the absence of a radio stations than such a small market can strong civil society, have made the state an support (Papathanassopoulos, 1999). autonomous and dominant factor in Greek Looking at Greek media history, one observes society. The state is not only relatively various explosions in the sector. The last autonomous but also has an ‘over-extended’ ones took place in the mid-1980s and espe- character. This situation has been associated cially in the late 1980s with the deregulation 3103-Ch-08.qxd 11/13/03 12:17 PM Page 92

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and privatization of the broadcasting 90 per cent of the total media market in system. During the 1990s one chronologi- terms of audiences and advertising revenues. cally observes a first explosion in the mid- Dimosiographicos Organismos Lambraki is 1980s in the newspaper market. A second the publisher of the most popular daily one took place in the broadcasting sector in newspaper NEA and Sunday VIMA (it has the late 1980s owing to the deregulation of also a daily morning edition). It also owns a the state monopoly of broadcasting frequen- good number of magazines (lifestyle, family, cies, resulting in a plethora of private, economy, high-tech, etc), 11 per cent of national and local, television channels and Teletypos (owner of market leader Mega radio stations. There are, in 2002, 160 Channel), television production studios, as private television channels and 1,200 private well as interests in the Greek Internet radio stations. In the mid-1990s one also through its company DOL Digital, and in observed a new explosion in the magazine book publishing (Ellinika Gramata). sector, which resulted in a new proliferation Similarly, Pegasus Group (owned by the of magazines (from 400 to 900) (Papathanas- Bobolas family with interests in construc- sopoulos, 2001b). tion) has interests in the press (daily newspa- In addition, Greece has undergone com- pers Ethnos and Imerisia), magazines, and mercialization of the broadcasting sector, television (10 per cent of Teletypos, Mega adopting a market-led approach, resulting in Channel) and television production studios, more channels, more advertising, more pro- and in the Greek Internet (e-one.gr). gramme imports and more politics. As in Kathimerini (owned by the Alafouzos family other countries, publishers and other busi- with interests in shipping) owns the respected ness-oriented interests have entered the daily morning newspaper Kathimerini, and its broadcasting scene in large numbers. Since English-language edition, radio stations the mid-1990s one notes various efforts by (Medodia, Sky) and has interests in the Greek the state to regulate the sector (regarding Internet (e-go.gr) and printing. Tegopoulos radio and television licences, advertising A.E. (owned by Christos Tegopoulos) owns time, programme quotas, protection of the second most popular Greek daily minors and media ownership). Eleftherotypia and its Sunday edition as well Although developments in the media as 8 per cent of Teletypos (Mega Channel) sector may not entirely respond to the needs and a television production studio. Alpha of the industry, it has been surprisingly Group owns the analogue channel Alpha TV adaptable and flexible in the face of new and digital platform Alpha Digital as well as political developments. To understand this, radio stations (Alpha News, Alpha Sport, one must remember that the system has Polis). The Vardinogiannis family, with inter- worked under Western democratic rule for ests in shipping and oil refining, controls only twenty five years now, and it has had many Greek media through offshore compa- suddenly to face all the upheavals that other nies, including television (Star Channel, Western media systems have taken years to Teletypos), television production (Audiovisual), deal with (Papathanassopoulos, 1997a). magazines (Attikes Ekdoseis), etc. Labrakis, On the other hand, since 1989, the media Bobolas, Tegopoulos and Vardinogiannis sector has mostly been monopolized by busi- have also interests through Teletypos in the nessmen, shipowners, construction and pay-television and digital satellite television related interests. Regardless of the plethora of Multichoice Hellas/Nova. of media outlets, the media sector is domi- nated by a handful of companies, such as Dimosiographicos Organismos Lambraki, The print media Pegasus Group, Kathimerini, Tegopoulos A.E., Alpha Group, Altec High-tech Group, The newspaper press the Vardinogiannis family (see list of main Traditionally, the press used to watch all the media companies at end of chapter). Most of developments of political life and to play an them initially entered the press sector, and important role in the political scene. owing to the haphazard deregulation of the However, since the fall of the Dictatorship end of 1980s they have also entered smoothly (1974), the press has been going through a the radio and then the television sectors. process of modernization. The development These companies nowadays have an interest of advertising as one of its main sources not only in every aspect of the Greek media of revenue in the 1960s has worked as a sector, but they also control approximately catalyst concerning the newspapers’ political

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choices, and especially neutralized party monitoring agency Media Services (1988–2001). political partisanship. Additionally, the newspapers present two Moreover, the advent of new printing additional paradoxes (Papathanassopoulos, technologies in the 1980s (Leandros, 1992), 2001a). Firstly, while the average circulation the entry of entrepreneurs and businessmen of newspapers in Greece is falling, the same into the media sector, as well as strong com- cannot be said of the number of daily titles. petition from television, have changed the Though a number of established newspapers field since the 1980s (Psychogios, 1992; suspended or ceased publication in the Zaoussis and Stratos, 1992; Paraschos, 1995). 1990s, new titles, or old ones under new As a result, the content of the press has ownership, seem to spring up all the time. become more objective and the traditional Examining the annual data of the Associa- close association with particular parties or tion of Athens Daily Newspaper Owners, individuals has been superseded by a ten- one sees that in 1979 there were twelve dency to identify more with a political morning and afternoon dailies published in camp, right, left or centre. Partly this has Athens with an average daily combined arisen out of the need to attract a broader circulation of 713,000 copies. In 1989, the spectrum of readers to increase circulation best year for the dailies in the last twenty in a time of economic difficulties and partly years, there were twenty two titles with an it has reflected a drift within the political average daily combined circulation of community itself towards larger bloc parties. 1,128,589 copies. However, in 1999, with However, the political stance of the news- circulation declining by half to 500,893, the papers is always present, especially in periods number of papers increased only marginally characterized by a politically intense climate to twenty three. Secondly, since 1993, when and of course during elections (Komninou, the publishers saw that the sales of their 1996). newspapers were declining rapidly, all news- Regardless of the fact that the level of papers started offering gifts to their readers literacy in the population is high, newspaper ranging from books, cars, houses, etc. But, as readership is very low (sixty three out of relevant data reveal, the constant ‘priming’ 1,000 bought a daily paper in 2000). Since of printed media with ‘offers’ or gifts only the arrival of private television and radio temporarily halts the decline of circulation. and with the plethora of magazines, news- It seems that gifts and special offers have paper advertising and readership have come become a constituent part of newspaper under pressure. By 2001 there were about publication, resulting in a significant drop 280 local, regional and national daily news- in sales if the practice is abandoned. papers. However, the biggest twenty two nationally circulated daily titles in 2001 were located in Athens (Papathanassopoulos, The periodical and magazine press 2001a). The Greek market is a very rich market in Another characteristic is that there is a magazine titles, with more than 900 popular strong Sunday press, again mainly originat- and special interest titles. However, there are ing in Athens, since almost all dailies have about fifty consumer magazines – mostly their Sunday edition. Most of the Sunday monthlies – of real importance. While the papers offer a supplement or they increase circulation of the general interest weekly the number of pages in order to cater for the magazines has declined, the special interest interests of a wider readership. By and large, monthlies are gaining the upper hand. The due to the competition of the electronic television listings market has expanded as media, the Greek press has tried to cope well to reflect the increase in programming with the new conditions by redesigning its and now comprises nine titles. The highest- titles and/or publishing new ones. In 1989 circulation magazines are linked with tele- there were thirteen dailies with a total aver- vision game shows and offer cash prizes. age circulation of 1.27 million copies, while During the 1995–6 period, one witnessed a in 2001 there were twenty three titles with a new explosion of the magazine sector with total average daily circulation of 50,000 new titles entering the field. This growth was copies (Papathanassopoulos, 2001a). On the also reflected in their advertising revenue. other hand, the press share of advertising However, the magazine sector has entered a revenue has decreased, from 18 per cent in period of reshaping in terms of titles and 1988 to 15 per cent in 2002, according publishers in order to cope with the new and to the annual reports of the advertising highly competitive media environment.

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By and large, developments in the magazine of the growth in literature for children, in sector during the last five years are the history and in Greek and foreign literature following: first, the ‘old’ weekly information- (Leandros, 2000). oriented magazines have perished. Some While the sector’s growth rate is high, it is years ago this category represented the bulk still way down compared with percentage of magazine sales. This has also to do with increases in other EU countries. Yet compe- the entry in recent years of the Sunday tition is high among publishing houses, newspapers into the magazine market, which are more numerous in Greece than through supplements that may be consid- elsewhere in Europe. However, half the ered magazines in their own right. Second, publishers issue only ten titles annually. there has been an increase since 1992 in the Only 2 per cent publish more than 100 volume of specialized magazines, which books a year. In fact, book production have tried to attract the interest of younger remains unevenly distributed. The twelve readers. Thus one notes new titles in women’s most productive publishers between 1998 and men’s interest magazines, music, com- and 2000 produced 35 per cent of the publi- puter magazines, sports, business and finan- cations during that period, according to the cial magazines, motor car and motor cycle National Book Centre (www.book.culture.gr). magazines, technology, history, home fur- This shows that the book publishing sector nishing and decoration magazines, etc. is gradually becoming concentrated in fewer Third, television guide magazines still publishing houses, at least in relation to attract the highest sales in the magazine their publishing productivity. sector but whether the market can support According to the National Book Centre, new titles is questionable. Fourth, there has Greek publishing activity is typically labour- been an increase in ‘light entertainment’ intensive, without great capital investment, magazines which cover gossip regarding and heavily concentrated in the country’s celebrities and their personal lives. Fifth, in two larger cities: in 1996, 84 per cent of the the period 1995–9, there was a major country’s publishing companies were located increase in monthly general and specialist in Athens and 11 per cent in Thessaloniki. magazines, which combine the lifestyle of The unit price of books was fixed during the younger people with politics and societal winter of 1998. VAT on books amounts to issues. 4 per cent on the retail price and varies from In terms of sales, the television-guide 4 per cent to 18 per cent on production. It is magazines come first and are followed by estimated that the gross value of book sales, monthly women’s magazines, and monthly including considerable state subsidies, varies consumer and lifestyle magazines. However, from Dr 55 billion to Dr 60 billion (US$195 total sales in the magazine sector have million to US$215 million) per annum. increased. Consumer demand varies according to the category of books. Book publishing Book production has been steadily increas- ing since 1990. In fact more people are The electronic (audio-visual) media employed in the sector than ever before and the reading population appears to be more Television open to new ideas. The market increased Greek television and radio were born and considerably during the 1990s owing to established under dictatorships. Broad- unprecedented growth, which is still way casting was established, as in most European behind that in other EU countries (as a per- countries, as a state monopoly, and this centage of total expenditure, new titles, remained after the restoration of parliament etc.). Still, the Greek market has come a long in 1974. In fact, the state was the sole con- way from the stagnant state that existed troller of the broadcast media and govern- until the mid-1980s. In fact, there has been ment manipulation of state television news a general increase in book publishing in the output was common practice. last two decades. In 1970, 2,027 new titles The deregulation of broadcasting, as in were published; in 1994 the number had other European countries, represented more risen to 4,197. According to the specialist than the removal of certain rules and regu- magazine Ichneftis, the number of titles pub- lations. As in most countries, it was rather lished in 1996 was 5,058 and 6,804 in the outcome of the internationalization of 2000. The increase was mainly an outcome broadcasting in addition to pressure from

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domestic economic forces. As in most (ERT) has sharply declined in ratings and European countries, broadcasting deregula- advertising expenditure. As regards tele- tion commenced with the radio frequencies vision, ERT’s channels’ viewership has (in 1987) and then moved on to television declined to 10 per cent (ET-1 6 per cent and (1989). The entry of private television chan- NET 4 per cent ) in 2001, which resulted in nels was led by Mega Channel, owned by large advertising losses (ERT’s advertising Teletypos, a group of the most powerful market share in the first seven months of publishers in Greece (see above). It was 2001 was 4 per cent of total television adver- quickly followed by Antenna TV, owned by tising). In effect, all ERT’s three channels a shipowner and owner of Antenna Radio. have witnessed a steady erosion of market In effect, transmitters sprang up all over share since private commercial television Greece, most of them operating on a de was launched in late 1989. ERT had also facto but technically speaking illegal basis. accumulated debts of Dr 45 billion. However, However, imported television programmes by 1999 ERT managed to pay off the bulk of and domestic production have both soared, its debt. In fact the 1999 and 2000 budgets thanks to massive increases in television were the first ones that found ERT profitable advertising revenue. While the regulatory and in 2001, for the first time for a long structure has remained cloudy, the domi- period, ERT had no debts. nance of two of the private networks – Mega Moreover, many argue that ERT is too Channel and Antenna TV – has been clear bureaucratic and overstaffed. It has 3,500 from very early on. Challenges from other permanent staff, plus 1,500 occasional or private channels, including Alpha (previ- external employees/collaborators. For years ously Sky) TV and Star Channel, have made politicians had been unable to approve any some dent in Mega and Antenna’s audi- of the numerous plans for its salvation. ences. In the 1996/7 television season, for ERT’s problems stem from the public broad- the first time since deregulation, the cumu- caster’s one-time role as a mouthpiece of lative monthly shares of the two leading government propaganda. This led to the private television channels (Mega and erosion of its credibility in the eyes of the Antenna) did not exceed 45 per cent. In public and was in effect, the entry ticket for 2001 they attracted 44 per cent of the tele- private television and the total deregulation vision market while Alpha and Star attracted of the television sector. In effect, ERT had to 29 per cent. pay for the democratization and increased Mega, Antenna, Alpha and Star are pitched number of television channels, since it at a mass-market audience. Sitcoms, satire was unprepared to meet competition from shows, television games, soap operas, movies private broadcasters. and television films as well as tabloid-style Public broadcasting (after the 1987 law) news and informational programmes domi- consists of: nate their output. As the private channels’ entertainment-dominated schedules have waxed stronger there has been a parallel 1 Two national coverage channels decrease in educational and documentary (Elliniki Teleorasi 1 (ET-1) and NEA programmes. Elliniki Teleorasi (NET), previously Private television channels, though they ET-2) which are based in Athens. initially relied to a high degree on cheap 2 A third channel, ET-3. This is based in imports, swiftly built up the level of local Thessaloniki and has stronger cover- and in-house production. The share of age in northern Greece but also can Greek-originated production is now larger be seen in other parts of Greece. In than that of imports and is mostly trans- effect, it is the regional channel of mitted in prime time, while imported ERT and its profile emphasis is programmes dominate the rest of the broad- given to northern Greece, arts and casting time. culture. A major element in the broadcasting 3 Hellenic radio (ERA) which broad- scene is the decline in viewership of the casts four national radio channels public service broadcasting services. Few (ERA-1 to ERA-4) originates from other public broadcasters in Europe have Athens through seventeen relay suffered as badly from the introduction of stations. There is also a fifth channel, private television. The Greek public broad- the Voice of Greece, which is aimed at caster, Hellenic Broadcasting Corporation

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has formed a daughter company called Nea Greeks abroad and includes regional Syndromitiki Tileorasi (New Subscription programmes. ERA-1 is mainly the Television). However, most of ERT’s plans information radio station of the are on paper – its digital future has not yet public broadcaster, ERA-2 mostly materialized. entertainment, ERA-3 is a quality and While cable television is virtually non- classical music station and ERA- existent in Greece, pay-television has found 4/Sports is a sports and music radio a niche on analogue terrestrial television. station. Multichoice Hellas dominates pay-television. 4 It also publishes its weekly television/ It buys premium programming from sister radio listing magazine Radioteleorasis. company NetMed Hellas, which operates the channels FilmNet, K-TV and Supersport. These remain the first and only analogue pay-television services in the country. The However, since 2000 the public broadcaster monthly subscription fee for FilmNet is has implemented a long overdue reorganiza- Dr 7,500, for Supersport Dr 9,100 and for the tion and the results have started to appear, three pay channels Dr 11,200. although there is still a long way to go. ERT’s FilmNet was launched in October of 1994, management has aimed to turn a new page offering a diet of blockbuster movies and in the public broadcaster’s troubled history. live league soccer games. In 2001 it pulled in In October 1997 the first channel ET-1 290,000 subscribers. In 1996 the network became a general channel with more acquired the exclusive soccer rights to the emphasis on entertainment. The second Greek championship for the period 1997–2001 channel with the previous name ET-2 does at Dr 15 billion. In August 1996 NetMed not exist any longer. In fact, it has been Hellas launched two more pay-television relaunched under a new name, NET (Nea services, Supersport and K-TV, using a fre- Elliniki Teleorasi – New Hellenic Television) quency leased from the state broadcaster, and is mainly a round-the-clock information ERT. In summer 1998 Supersport won a new channel with news bulletins, information battle for the exclusive rights to televize the programmes, talk shows and documentaries. Greek Basketball League games from 1998 to It remains to be seen whether the ambitions 2002, offering an unprecedented Dr 11.6 of the ERT management will be realized. On billion for the rights for the first two years. the other hand, ERT has to reduce labour In 2001–2 NetMed Hellas dealt with indivi- costs by voluntary retirement of some of its dual basketball teams. In effect, by 2001 personnel. In effect, through a new law and Supersport dominated television sports a redundancy plan, ERT’s management aims games in the Greek market, since it had the to retire 1,062 of its personnel by 2002. exclusive rights to cover soccer and basket- In terms of financing, ERT appears to be in ball, the most popular games in Greece. better condition. All households have to pay Currently, the company is negotiating the Dr 12,000 to Dr 14,000 (¤39 to ¤42) per renewal of the contracts, while it has lost the annum for public broadcasting, which is most attractive soccer games to its competi- collected through domestic electricity bills. tor in digital television, Alpha Digital. In 1999 ERT collected Dr 62 billion through NetMed Hellas has signed exclusive rights the licence fee plus Dr 3.7 billion through with all major Hollywood studios to broad- television advertising and sponsorship. Its cast new releases to Greek subscribers. programming costs in 1997 were Dr 16 The Greeks have not paid much attention billion, while in 1998/9 this went up to Dr to satellite television, although the deregula- 27 billion. Moreover, labour costs accounted tion of the television system started with the for Dr 31 billion. retransmission of satellite channels via UHF ERT looks to the future with ambition. Its frequencies. But, at the beginning of the first aim is to re-attract viewers, but it also new century, digital satellite television has plans for the digital era. In effect, its seems to be the new ‘love affair’ of the Greek public image seems to be better nowadays television universe. In fact, since the begin- than some years ago. In the digital era ERT ning of 2000, there is already a digital satel- wants, in collaboration with other private lite platform (Nova), a second one (Alpha interests, to create a digital satellite plat- Digital) has started operation (October form. Under law 2644 of 1998 ERT already 2001), and a third (Interactive) holds an offi- holds a licence for a digital platform. ERT cial licence to broadcast. At the end of 2001

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two digital satellite platforms, Nova of stations dominate the radio sector (see statistics Multichoice Hellas and Alpha Digital are at end of chapter). Around 1,200 radio operating. In fact the story, if not the develop- stations broadcast regularly throughout ment, of Greek digital satellite television Greece; the most important ones are located started in March 1998, when Multichoice in Athens and have networking arrange- Hellas announced plans to go ahead with its ments with local stations. Generally, each of digital satellite project Nova, initiating Greece’s fifty two administrative regions has Greece into the digital age. two or three local commercial radio stations, However, the development of digital and with more in the largest cities. However, pay-television will depend on the right most of them are without an official licence moves of their players, such as the decision to broadcast. The government in 1997 to use compatible decoding technology. This invited radio stations which operate in the is because the Greek broadcasting market is Athens and Thessaloniki region to apply for a small and it would hardly sustain competing licence. In March 2001 the government digital platforms operating incompatible announced the twenty eight most desired decoding technologies. On the other hand, radio licences for the Attica region, causing regardless of the fact that the penetration of anger among those stations not granted a analogue pay-television is high – approxi- licence. The issue still remains open for seven mately 10 per cent due to Multichoice Hellas – more licences in the Attica regions, while a a major obstacle for the development of similar situation is expected when the new digital and pay-television is the plethora of licences are granted in the other major cities, free-to-air terrestrial channels. The average especially in Thessaloniki, which is the viewer has access to a large number of free second largest city in the country. television services, and is not used to a ‘pay- There are three categories of radio stations TV culture’. Moreover, viewers will have to in Greece: state-owned, municipal and buy new reception equipment and to pay a private. The vast majority are privately monthly subscription fee, when, owing to owned and of a local character (transmitting the austerity measures, their spending power via the FM frequencies). State-owned and remains low. Then, the satellite operators municipal radio stations exhibited a sharply have to offer to their prospective subscribers declining trend in audience figures and attractive television and interactive services advertising revenue. As regards the use of at a reasonable price. Greek people have radio, Greeks listen to the radio for approxi- proved that they are very attracted by new mately four hours daily, while those technologies. The high penetration of cellu- between the ages of twenty five and fifty lar phones is an indication. four are the most loyal to radio. The Nova platform belongs to Multichoice Hellas. The latter’s ownership status is made Film and video up of Myriad Development with a 40 per While the rise of Greek cinema in the post- cent stake, and Greece’s Teletypos (owner of war period is closely connected with the the private television station Mega Channel) establishment of the Finos Films production with 40 per cent. The Cypriot television company, which was launched in 1943, company LTV holds 18 per cent and Sun Greek cinema, after many years of decline, Spot Leisure 2 per cent. The second digital has shown a rise in the last few years. satellite platform, Alpha Digital, is a joint Cinemagoing was a regular feature until the venture of Mr Efstathios Tsotsoros (45 per advent of television. In effect, since the mid- cent), who is also the chairman of private 1970s, the film industry has suffered under station Alpha TV, Greek businessman George the impact of television and the commercial Kontominas (40 per cent) and the Onassis success of US films. In 1982 the Minister of Foundation (15 per cent). The chairman and Culture, Melina Mercouri, adopted a policy managing director of the new company is aimed at the promotion of Greek films, and Efstathios Tsotsoros and, so for, the company especially independent Greek producers, has invested ¤89.6 million. through the support of the Greek Film Centre, which that was inaugurated in 1970. By 2001 many Greek film makers had bene- Radio fited from the Centre’s co-production pro- As was noted above, the radio sector was gramme and funding. In effect, the Greek deregulated with the entry of municipal and Film Centre remains the primary producer private local stations. Nowadays, private of new films.

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Since 1999 some Greek films have been of the media. The problem is that most of the particularly popular, especially commercial regulations are either too strict or out of date productions such as Safe Sex (2000), a kalei- and are not easily implemented. For exam- doscopic comedy about Athenians’ amorous ple, Article 40 of law 1086 of 1988 allows the pursuits which topped the country’s ticket courts to scrutinize the finances of the press sales – the first time a Greek film has done so and broadcast companies, but no action in thirty years. However, US films dominate has been taken. Moreover, law 2328 of 1995 the box office. This is also due to the fact envisages television companies paying a fee that only a few new Greek films are pro- for the use of their frequency. Up to now, no duced each year (about twenty) and fewer free private channel has paid the state a have a commercial success. On the other drachma. Additionally, the laws of 1989 and hand, Safe Sex’s success demonstrates that 1995 (2328) speak about the allocation of cinemagoers are interested in Greek films terrestrial television licences. But no such that are fast-paced and scripted according to licences have been awarded yet. Well, not the grammar of television. exactly, since law 2644 of 1988 on pay- television and digital television in a clause The Internet and notes that those television companies which have applied for a terrestrial licence operate related on-line media legally until the licences are allocated! Greece has the lowest proportion of Internet Moreover, law 2325 does not allow publish- users in the European Union. According to the ers to own more than two daily political EU, the PC penetration rate in Greece was 11 newspapers – one morning and one evening per cent at the end of 2001, compared with an daily, published in Athens, Piraeus or EU average of 36 per cent. Not surprisingly, Thessaloniki – but again it depends. In Greece lags behind other European countries August 1998, with presidential decree 214, on a wide range of Internet indicators. In 2001, the government announced a regulation to according to a national survey conducted by oversee the ‘transparency of media owner- the V-PRC Institute (2001), 10 per cent of the ship’, and in 2002 the government voted a population were reported as having an regulation for the ‘basic shareholder’, mean- Internet connection. By comparison, the aver- ing that a person/company that has been age Internet connection rate throughout the involved in public works cannot own more European Union was 18 per cent in 2000. that 5 per cent of the shares of a media com- Moreover, the number of Web sites originating pany. Well, again, up to the time this chapter in Greece is roughly one-tenth the number of went to press, nothing had yet been done. German Web sites and one-fifteenth the These are a few examples of what I call a number of UK sites. The number of secure ‘policy of non-action’. The reason seems to servers is a rough indication of a country’s be simple: successive governments since e-commerce readiness. With only one-fifth the 1989, the year of television deregulation, number of secure servers per capita of the appear to continue playing an ‘on and off’ entire European Union, Greece remains rela- game with the television owners, who also tively unequipped for on-line transactions. have other interests in the Greek economy. Corporate use of the Internet also trails behind In fact, hopes of bringing order to the unreg- the rest of Europe. Only 32 per cent of all com- ulated broadcasting environment come and panies surveyed in Greece by the European go on a periodic basis. Hopes were raised in Union reported having Internet access by the July 1993, when the 1990–3 Conservative end of 1999, compared with an EU average of government announced its decisions. The 63 per cent. A smaller percentage of Greeks Socialist administration of the late Andreas report that they use banking on-line (17 per Papandreou (1993–6) in its first days cent) than citizens throughout the Union announced that it would re-examine the (25 per cent) (Eurobarometer, 2000). whole regulatory environment and the licences. But the licences were never awarded. Papandreou’s successor in the Socialist Party and in government, Kostas POLITICS, POLICY, Simitis, after winning the 1996 general elec- tion decided to ‘bring order’ to the alloca- LAW AND REGULATION tion of frequencies. According to a ‘map of the frequencies’, the government announced Greece has a rather strict, – to some, tight – it would grant six national television regulatory framework on almost all aspects licences, fifty eight regional licences and 98 3103-Ch-08.qxd 11/13/03 12:17 PM Page 99

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fifty three local licences to private channels. to examine the files of radio and television Up to the time of writing the official stations who had applied to get an official licences have yet to be awarded. The result is licence to broadcast. The proposed licences that market forces have created an over- for the radio stations in the Attica region crowded broadcasting environment – 160 provoked the anger of the excluded stations. national and local television broadcasters However, it is the Minister of the Press and operating alongside the state broadcaster the Mass Media who grants the licences to ERT’s three national television channels. private stations. The National Broadcasting Council (NBC) What is equally interesting about the was formed in 1989 to oversee the audio- history of broadcasting deregulation in visual sector and to act as a ‘buffer’ between Greece is the entry of publishers and other the government and the broadcasters. In entrepreneurs on to the broadcasting scene, effect, during its first administration the as in most cases in Europe. As we have already NBC remained inactive, if not virtually seen, the media sector is dominated by a absent from the broadcasting affairs of the handful of companies. Needless to say, most country. But one has to admit that the role of them have other interests in the wider of the NBC was only to advise the govern- business sector. This raises a question over the ment. On the other hand, the NBC during new media magnates’ motives. Some politi- its first administration (1990–3) produced cians, among them the Chairman of the three codes on the operating conditions of Hellenic Parliament and media analysts, are radio and television stations: one on adver- concerned about how easily and quickly the tising, the second on journalistic ethics and media sector could be concentrated in the the third on programming. During its hands of a few influential magnates. To a second administration, a new law was intro- certain extent, the new television environ- duced by the Socialists in 1993, whereby the ment gives the impression that it has largely NBC’s board members were reduced from copied the situation in the printed press and nineteen to nine. However, the nomination there is a clear indication that there are too procedure for the election of NBC board many stations for such a small market. members is a contentious issue. The rules In effect, all television stations face severe stipulate that four members should be financial problems – in fact most of the nominated by the party in power, four by media are in the red. This has made analysts the opposition parties and the chairman wonder about the real intentions of their by the president of the National Assembly, owners. It seems that Greece has entered a giving the government a controlling vote. In new era of ‘interplay’ between media owners its second administration (1993–7), the NBC and politicians. In this new game each party adopted a more active role on a number of tries to gain tactical advantages because broadcasting related issues. It imposed fines each needs the other. The entry of business- on national and local channels for various men and shipping owners and other busi- reasons. On national channels for some of ness interests on to the media scene is an their ‘reality’ and news programmes, and on important way in which these interests try the local channels because they failed to pay to influence public opinion and to exert copyright fees for broadcast programmes. In pressure in the political arena for their its third administration (1997–2001) it had business interests.

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STATISTICS

Population 11,500,000 Number of television households 3,710,000 Movie admissions, 2000 13,500,000 Books published, 2000 6,804

Print media Circulation of daily newspapers, 2001 Ta Nea 84,586 Eleftherotypia 79,296 Ethnos 53,644 To Vima 50,357 Kathimerini 40,431 Eleftheros Typos 36,948 Espresso 31,707 Apogeymatini 23,254

Broadcast Audience share of national terrestrial television channels in prime time slot, media 1 September 2000 – 31 August 2001 (%)

Private Mega Channel 22.1 Antenna TV 21.9 Alpha TV 15.3 Star channel 13.4 Alter 2.2 Tempo 2.2 Public ET-1 6.1 NET 4.2 ET-3 1.0 Source: AGB Hellas.

Audience share of main radio channels, December 2001 – January 2002

Private Sky 13.5 Antenna 12.4 Sfera 12.1 Melodia 11.2 Village 9.4 Supersport 9.0 Love 8.6 Flash 8.6 Ciao 7.5 Public ERA Sport 3.5 NET 2.1 ERA 1 Source: Alco.

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Electronic Percentage of households with: media Terrestrial television 98 Terrestrial pay-television 10 Satellite digital television 3 Cable Negligible VCR 47 Satellite receiver 4 DVD player 3

Percentage of households with:

Digital TV reception None Internet access 10 Mobile phone ownership 72

Advertising Television 43.50 spend, 2001 Magazines 35.03 (%) Newspapers 16.81 Radio 4.66

Ownership Main media companies and main activities Dimosiographicos Organismos Lambraki: Press (newspapers VIMA, NEA) Magazines (Eidikes Ekdoseis) Television (11% of Teletypos (Mega Channel) television production studio) Internet (DOL Digital, portal: in.gr) Printing, book publishing, travel, education Pegasus Group: Press (Ethnos, Imerisia) Magazines (Eikones) Television (10% of Teletypos (Mega Channel) television production studio) Internet (e-one.gr) Printing Kathimerini: Press (Kathimerini, Kathimerini English edition) Radio (Medodia, affiliation with Sky) Internet (25% of portal e-go.gr) Printing Tegopoulos A E: Press (Eleftherotypia) Television (8% of Teletypos (Mega Channel) television production studio) Printing Alpha: Television (Alpha TV and Alpha Digital) Radio (Alpha News, Alpha Sport, Polis). Altec (high-tech): Television (Alter) Information technology (Altec) Vardinogiannis family: According to the press this shipowning and oil refining family has interests in many Greek media through offshore companies in television (Star Channel, Teletypos-Mega Channel), television production (Audiovisual), magazines (Attikes Ekdoseis), etc.

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REFERENCES (eds) Greece prepares for the Twenty-first Century. Baltimore MD and London: Johns Hopkins Association of Athens Daily Newspapers Owners University Press. (1998) Circulation and Advertising Statistics. Papathanassopoulos, Stylianos (1997a) ‘The poli- Athens (in Greek). tics and the effects of the deregulation of Greek Charalambis, Dimitris (1996) ‘Irrational contents television’, European Journal of Communication of a formal rational system’ in Christos Lyrintzis, 12 (3): 351–68. Elias Nicolacopoulos and Dimitris Sotiropoulos Papathanassopoulos, Stylianos (1997b) The Power (eds) Society and Politics: Facets of the Third of Television. Athens: Kastaniotis (in Greek). Hellenic Democracy 1974–1994. Athens: Themelio Papathanassopoulos, Stylianos (1999) ‘The effects (in Greek). of media commercialization on journalism and Karakostas, Ioannis and Tsevas Athanassios (2000) politics in Greece’, Communication Review 3 (4): Media Regulation. Athens: Sakkoulas (in Greek). 379–402. Kolovos, Nicos (2000) Cinema: the Art of the Picture Papathanassopoulos, Stylianos (2000) Television Industry. Athens: Kastaniotis (in Greek). and its Audience. Athens: Kastaniotis (in Greek). Komninou, Maria (1996) ‘The role of the media in Papathanassopoulos, Stylianos (2001a) ‘The the Third Hellenic Republic’ in Christos decline of the Greek press’, Journalism Studies Lyrintzis, Elias Nicolacopoulos and Dimitris 2 (1): 109–23. Sotiropoulos (eds) Society and Politics: Facets of Papathanassopoulos, Stylianos (2001b) ‘Media the Third Hellenic Democracy 1974–1994. Athens: commercialization and journalism in Greece’, Themelio (in Greek). European Journal of Communication 16 (4): Leandros, Nicos (1992) The Mass Print Press in 505–21. Greece. Athens: Delfini (in Greek). Paraschos, Manolis (1995) ‘The Greek media face Leandros, Nicos (2000) The Political Economy of the the twenty-first century: will the Adam Smith Media: Industry Restructuring in the Era of complex replace the Oedipus complex?’ in Information Technology Revolution. Athens: Dimitris Konstas and Theofanis G. Stavrou (eds) Kastaniotis (in Greek). Greece prepares for the Twenty-first Century. Media Services (1998–2001) Annual Reports of Baltimore MD and London: Johns Hopkins Advertising Expenditure. Athens: Media Services University Press. (in Greek). Psychogios, Dimitrios, K. (1992) The Uncertain Mouzelis, Nicos (1980) ‘Capitalism and the Future of the Athenian Press. Athens: Diaulos (in development of the Greek state’, in Ray Scase Greek). (ed.) The State in Western Europe. London: V-PRC Institute (2001) The Profile of Greek Internet Croom Helm. Users. Athens: V-PRC (in Greek). Mouzelis, Nicos (1995) ‘Greece in the twenty-first Zaoussis, Alexis and Stratos, Konstantinos (1995) century: institutions and political culture’, in The Newspapers 1974–1992. Athens: Themelio Dimitris Constas and Theofanis, G. Stavrou (in Greek).

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9: Hungary

BÁLAZS KISS

NATIONAL PROFILE The media played an even more impor- tant role during the transitional period, since they made it possible for the new Hungary had a very lively press sector from democratic political forces to make them- the creation of the Austro-Hungarian monar- selves known to the public and journalists chy in 1867 until the First World War and wrote extensively about the Western ideas again in the inter-war period. The greatest and democratic institutions. This process, writers and poets wrote for the papers, which with the media, the journalists and the created an important tradition of journalism intelligentsia preparing both the public with a strong tendency to morality and with generally and the communist elite in particu- a close cultural integration of the political lar for the transition, concluded with the and journalist with literary elites. After the fairly benign political system change Second World War, and particularly with the between 1988 and 1990. communists coming to power in 1949, the This experience, with the media playing a press became very reduced because of three large part in making the political transition main reasons. The first was the liquidation of relatively simple, convinced politicians, par- the private press: only state-owned media ticularly the newcomers, that the media were permitted to exist. The second was should not be left alone, but should be kept heavy censorship, which mopped up opin- under control. That conviction has had its ions differing from those of the single party. consequences ever since and the media have The third reason was the preference given to certainly been the longest-standing unsettled literature, instead of journalism, in political question in Hungarian politics since 1990. education and propaganda. The first, rightist, majority (1990–4) consid- After 1956 the Kádár regime can be ered the whole sphere of the mass media claimed modern because it used the much overwhelmed by hostile socialist (ex- or post- quicker and more popular press as a channel communist) and liberal political forces, and of propaganda. It even had the press imitate every criticism by the journalists was felt to the public sphere by launching discussions confirm that suspicion. The government tried on public issues and problems. The period to counterbalance the leftist biases by buying also saw the birth of several special periodical and supporting rightist newspapers. That was titles for the different strata of Hungarian not very effective, the circulation of the pro- society; through them, the messages of the government newspapers lagged far behind regime were able to reach social groups in that of the other side. Thus the government different ways and forms. made much effort to dominate the electronic In sum, on the one hand the media were media, which were exclusively public until as under very thorough control in the state late as 1997. The socialist–liberal coalition socialist period, on the other, however, grad- government (1994–8) also tried to dominate ually they provided an opportunity to the the media. They had no problem with the reformist forces to publish their views, par- print media, since most of the former pro- ticularly in the latter years. Thus the media government press soon went bankrupt. reflected, though in a very careful and Conditions in the electronic media changed opaque way, the different trends and efforts quite quickly. For example, the new president in the political elite. of Hungarian Television fired more staff on 3103-Ch-09.qxd 11/13/03 12:17 PM Page 104

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his first day in office than the previous low. The Sunday papers are not too popular; presidents during the years before. The ten- the national and regional papers have six sions have also been eased remarkably in con- issues per week with thicker Saturday issues. sequence of the law on radio and television There are several free daily papers, most of passed at the end of 1995, and the conse- them published outside the capital. One of quent birth of the commercial media. In 1998 them is Metro, the Hungarian version of the the new rightist administration, which Scandinavian paper. It has a circulation of exhausted its mandate in April 2002, soon 327,000, which is not much less than the resumed the fight to counterbalance the circulation of all the national quality news- alleged leftist preponderance in the media. It papers. Its publication used to be concen- strengthened its position in the press by unit- trated on Budapest and the area around the ing two rightist newspapers, and that was capital, but since April 2001 it can be found where the government advertisements were in the county centres as well. published and where members of the govern- The share of tabloid titles in the daily news- ment preferred to give interviews, etc. Because paper market has been rising; in the first half of the popularity of the private electronic of 2002, two old titles (Mai Nap and Tözsdei media, public television and radio ceased to Kurir) re-entered the market after a long be so important politically. Anyway, the gov- pause. Another sign is that the leading ernment did its best to put them under pro- tabloid paper has caught up with the most government control: it put loyal persons into important quality one after years of competi- the posts of the media presidencies, who, in tion. Two of the other national quality papers turn, changed the editors of the news and are declining faster and have fallen behind political programmes and made it impossible most of the country dailies in circulation. for critical journalists to keep their jobs. Népszabadság is the leading quality paper, The present media situation is said to be with a circulation of about 211,000. The unacceptable by all of the main players in second most important daily is Magyar Hungarian politics. Both sides speak about Nemzet with a bit less than half the former. unbalanced media, but mean two different These two papers are clearly profiled politi- things: the right thinks that most of the cally. The former is close to the socialists, the whole sphere is still biased against conserva- latter to the conservatives. The two other tive values, while the other side complains national dailies are considered to be leftist. of the rightist and nationalist propaganda of The ownership of the newspapers is very the public media. Each of them would like concentrated. About half the circulation to change the law on the electronic media, belongs to the papers published by the but, since such legislation needs a two-thirds Ringier group. The company has half the majority in the parliament, the situation Népszabadság, it owns Magyar Hírlap, another does not seem likely to change at all soon. quality daily paper, Blikk, which is the tabloid with the highest circulation, and it also has Nemzeti Sport, the national sports newspaper. STRUCTURE AND OWNERSHIP Foreign companies own the larger part of the regional papers: Axel Springer, Westdeutsche Allgemeine Zeitung (WAZ), The print media Funk Verlag und Druckerei (FVD) and Associated Press (AP), that is, two German The newspaper press companies, an Austrian and a US company. There are thirty six daily newspapers if all Axel Springer is the strongest, with nine the paid-for ones are counted. The country county dailies. WAZ with five, then FVD has twelve national daily newspapers and with three, and AP with three follow it. twenty-four regional and smaller urban Sometimes it is almost impossible to know ones. As for the regional papers with consid- which foreign firms are behind certain erable circulation, there is a daily newspaper Hungarian publishing companies. Magyar in each of the nineteen counties except the Nemzet is published by AAB Marketing one around Budapest. Of the twelve Services, which is registered in Delaware. national daily titles, four are quality political Central European Media Investment with papers, three are economic ones, four are ‘Anglo-Saxon financial investors in the tabloids, and one is about sports. The greater background’ owns the new tabloid. part of the newspapers is published in the Népszabadság is the only national quality morning, most of the evening dailies are newspaper that makes a profit for the free, but the circulation of the latter is rather owners. The leading county papers are also 104 3103-Ch-09.qxd 11/13/03 12:17 PM Page 105

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profitable. For long, Magyar Nemzet has fairly stable, even growing, as is shown by survived only with huge support from the the fact that new titles have been launched. state. After the 2002 elections, its sales Although there are more than 100 publi- and subscription increased considerably. shers, as with the newspaper industry, owner- Although Magyar Hírlap is one of the worst- ship is concentrated in relatively few hands. selling titles, it has considerable revenue from advertising because its readership con- Book publishing sists of managers to a considerable extent. About 9,000 titles are published per year. Despite this, the newspaper shows a deficit. In 2001 the number of copies reached 35.7 The financial situation of Népszava, the million, which meant a 24 per cent decrease fourth national newspaper, is even less stable. from the previous year, mainly because of The prospects for newspapers are not very the decline of professional publications. Half rosy. The television companies increase their the titles are scientific and professional and share of the advertising market. The situa- approximately 25 per cent are fiction. About tion of the national papers is even worse one-third of the fiction is light reading. than the regional ones, because while the There are more than 100 publishing latter can keep their readers or not lose them houses, mostly very small ones with a too quickly, the former have to meet the couple of titles yearly. The big companies challenge of a shrinking readership, that is, publish some hundreds of titles and, for shrinking advertisement earnings. In 2001 example, one single publisher dominates the share of the terrestrial television chan- half the market in school books and text- nels in advertising spend was 57.5 per cent, books. Although the greater part of the that of the daily papers reached 14 per cent publishing houses deal with classical publi- only, the periodical press 13.5 per cent. shing only, some have established networks of bookshops and clubs as well to increase The periodical and magazine press sales. With Hungarian being a relatively As far as circulation is concerned, the free small language, translation is a very impor- Budapesti Piac shows the highest figures with tant activity, and all the outstanding foreign more than 800,000 copies. This title is an authors are published in Hungarian very advertising weekly with little information or quickly. The population traditionally buys Budapest news. Among the non-free titles many books; consequently the sphere has a with a large circulation, Story, a weekly fairly stable financial situation in spite of about the stars and celebrities, is first with the low state subsidies. 479,000 copies. Then come the three main television programme magazines with more than 970,000 in all. The main women’s The electronic (audio-visual) media weeklies reach circulations of between 300,000 and 360,000. Szabad Föld, a weekly Television mainly for the non-urban population, has a For geographical and other reasons, there are circulation of 200,000. None of the four terrestrial television frequencies. With political and economic titles reaches more one of them belonging to the military, three than 50,000 per week, except for the most can be distributed among the broadcasters. prestigious and influential – HVG – with One of them is used by the first channel of about 134,000. Szabad Föld and HVG are the the public television (m1), another one by closest to a typical general interest weekly the 2001 market leader TV-2, owned mainly but, in point of fact, there is no such weekly by the Scandinavian Broadcasting and the title in Hungary. third by RTL Klub, the Hungarian affiliate of The Hungarian version of Reader’s Digest the German RTL group. The latter two are has the highest circulation (235,000) among commercial companies. All three channels the monthly titles. The magazines for youth are of general interest. are mostly Hungarian versions of German Beyond m1, public television has two originals sometimes with the same title (for more channels (m2, Duna TV) which broad- example, Bravo, Bravo Girl), sometimes with cast via satellite. The latter is supposed to Hungarian ones (for example, 100 × Szép shape its programming, taking into account instead of Mädchen). They reach circulations Hungarians living outside Hungary. The first of about 70,000. Women’s and men’s maga- channel broadcasts programmes for domes- zines sell about the same amount (for exam- tic minorities and also religious pro- ple, less of Cosmopolitan and more of Playboy grammes, while the second replays several and FHM). The magazine market seems to be programmes of the first. The law compels 105 3103-Ch-09.qxd 11/13/03 12:17 PM Page 106

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cable companies to put the public television One can also find fifty regional and local programmes into their packages. Without terrestrial television broadcasting compa- that regulation, two of the three public nies. Antenna Mikro is the biggest of them channels could not be seen by most of the because it serves the surroundings of the Hungarian audience because only a few capital. Its package (twenty two channels households have a satellite receiver. plus HBO and a sports channel, for extra Although predominantly a public service fees) is rather small compared with that of organization, which raises revenue from a UPC, but its prices seem to be much more universal licensing system, public television acceptable to the audience, particularly is entitled to broadcast advertisements as since UPC raised its prices considerably at well, although they are supposed not to the beginning of 2002. break into programmes. Since these two At the beginning of December 2001, one sources of revenue have never been enough could watch twenty four television pro- for the company to survive, Hungarian grammes in the Hungarian language. Five Television has had to lean on massive state were free satellite programmes, the rest were subsidies, which has always inevitably led to broadcast via cable companies. Most of sometimes cruder, sometimes more refined, them were the dubbed or subtitled versions pro-government biases. of foreign channels: HBO, National Geogra- The other two terrestrial channels, phic Channel, Animal Planet, Discovery, launched in 1997, are commercial ones, that Eurosport, etc. It means that the cable chan- is to say, they raise revenue from advertise- nels are mostly specialised ones. ments. They are in fierce competition with One always finds the main German pro- each other, poaching media stars from each grammes (Sat-1, Pro-7) in the packages, other and even copying each other’s pro- usually also MTV Europe, the French TV-5, grammes. For long, prime time on both chan- the Italian RAI Uno and the Austrian ORF-1. nels was dominated by Latin American soap The broadcasters also offer programmes for operas but recently competition has forced children either in the original (Cartoon Net- them to launch original programmes and the work) or in Hungarian (Minimax, Nickelo- soap operas moved to the afternoon hours. deon). A Hungarian-language music channel After the first years of deficit, TV-2 realized (Viva+) has been launched. a profit in 2001, one year before it was As far as audience shares are concerned, expected. Its main rival, RTL Klub, was pro- public television has been losing viewers fitable one year earlier, in 2000. In the second ever since the private companies began to half of 2001, RTL Klub succeeded in getting broadcast in 1997. At the beginning of 2002 into the market leader position. m1, the terrestrial public channel, had a There are several cable companies but share of 11.2 percent, while RTL Klub, the their economic strength varies greatly. In market leader, had reached 33.3 per cent the middle of February 2002, more than and TV-2 30.5 per cent. Since 2000 the share half the 170 cable networks of the country of other channels has grown from 21.2 per cent belonged to three companies: UPC (thirty), to 25 per cent. Matáv (twenty one) and Fibernet (fourty eight). In Budapest, which has twenty three Radio districts, UPC gives service in thirteen of Five radio channels have national broadcast- them, Matáv in nine. UPC, an affiliate of the ing possibilities. Three of them belong to Dutch multinational corporation, has built public radio (Magyar Rádió); the other two up a large, perhaps too large, network of (Danubius and Sláger) are privately owned. optic cable and tries to bind customers to Two more companies, Juventus and Radio 1, itself. Matáv, the Hungarian telephone com- actually reach more than half the territory of pany with a large ownership share of Hungary, but via a network of radio Deutsche Telekom behind it, also makes stations; consequently they are in fierce great efforts to strengthen its market posi- competition with the former, causing much tion in the cable television business. There trouble to them in obtaining enough adver- are other companies as well, threatened by tising earnings. At the beginning of March these two. Since 2000, customers have raised 2002 twenty five regional radio channels a huge number of complaints against the were in operation, nine of them being the cable companies (90 per cent of the com- regional stations of public radio. The num- plaints are against UPC and Matáv) because ber of local radio stations reached sixty four, of the high prices and the frequent changes some of them belonging to the network of in the assortment of programmes offered. national or regional companies. 106 3103-Ch-09.qxd 11/13/03 12:17 PM Page 107

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Public radio has three channels, but the have been of American origin, less than 10 audience data are favourable for none of per cent of them are French, and there are them. Only the news magazine programmes fewer than ten works from the United of the first (Kossuth Rádió) have a high audi- Kingdom, Italy and Germany each. Hungary ence share, otherwise the public channels had produced about twenty films per year, are not widely listened to. This is true partic- but in 2001 the number reached thirty. ularly in the case of the third channel There is a special cinema network in (Bartók Rádió), which broadcasts classical Budapest of ten members. They are called music and literature programmes only: its art movie houses, because they show artistic share is always below 1 per cent. The second films of Hungarian and foreign origin. channel (Petöfi Rádió) tries to meet the chal- Although for years they have had a very lenge of the commercial music channels – stable audience of approximately 800,000 without much success. After years of more or moviegoers per year, they cannot survive less sane financial conditions, public radio without massive subsidies. was in deficit in 2001, because both advertis- The financial background of film produc- ing revenue and subscription income were tion is rather unstable, and that was one of far below the expected level and the sale of a the reasons why Hungarian films, which whole frequency as well as staff reduction used to be quite famous in the world, almost was not enough to turn the tide. disappeared from the film festivals during Most of the commercial radio stations the 1990s. Now that tendency has returned; broadcast pop music; there is no jazz radio the state and other sponsors have begun to station. One can tune into news radio subsidize film production substantially. In (Inforádió), which has an 8 per cent share in particular the state’s involvement has led to the region it reaches. Klubrádió, one of the much debate whether politically biased commercial channels, has modified its pro- films are to be made as a result. file and launched very serious programmes Public television used to be a remarkable on politics and social questions; some of the producer of films, but since it ran into finan- anchor persons came from public radio cial difficulties there are almost no films made and television. Pannon Rádió is considered by or for television companies. Parliament is to be extreme-rightist. It has an ownership working on a new film law that may fix the relationship with a radical right-wing party, share of the film subsidies in terms of GDP. and the National Radio and Television Commission claimed the situation to be ille- The Internet and gal. The commission has also punished the related on-line media channel because of its programmes’ anti- minority biases. A large group of Hungarian The level of development of the Internet and musicians tried to boycott the channel by related media is relatively low. According to forbidding the use of their songs in its the data for the end of 2001, only 17 per cent programmes. Rádió C, a special channel for of the population over fourteen had access Hungarian Gypsies, has been launched in to the Internet and 66 per cent of them spent the region of Budapest; several non-Roma more than five hours per month using that media celebrities help the channel as anchor media. The increase was outstanding, how- persons. The genre of talk radio is still ever, reaching 70 per cent for the year, by unfamiliar in Hungary. However, one can which time the same number of people had find some shorter programmes on different access to the Internet from home as from the channels that are reminiscent of talk radio. office. The use of the media was more inten- sive from home. Internet cafés are very pop- Film and video ular: in Budapest, one can find fifty of them In 2001, 173 films were shown in cinemas. with reasonable prices. The size of the audience and the income of In 2001, 77 per cent of primary and secon- the cinemas both grew considerably. Total dary schools had access to the World Wide cinema admissions reached 15.7 million, a Web, but the distribution was rather uneven; ten per cent rise since 1997. The audience for in Budapest the figure was 87 per cent, in Hungarian films grew even faster. While the other cities 91 per cent, while in the villages total box office income amounted to Ft 10 it was 65 per cent only. All secondary schools billion, which is 29 per cent higher than in had access, and one-third of schools had a the previous year, Hungarian films produced Web site of their own. All the universities had 35 per cent income growth. For years, two- both access and Web sites, and two-thirds of thirds of the films in cinema programmes them had built up an intranet as well. 107 3103-Ch-09.qxd 11/13/03 12:17 PM Page 108

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A special sphere is e-government. The than in most European countries; they pro- government of 1998–2002 invested large sums tect minorities and the children, and concern in the development of e-democracy, particu- certain religious and sexual questions. One larly in the local and central government may even say that they are less strict than portals and services. More and more local they should be. For example, public denial of government portals opened in the country, the Holocaust is not yet forbidden despite the with the help of which more and more frequency of attempts by different govern- services became accessible to citizens via the ments to pass a law on the issue. Net but so far the public administration has Several laws and decrees concern the used the possibility mostly for one-way sphere of the media. It means that there is information and not for communication. no comprehensive regulation for all the Another popular form of Internet use is the aspects of the field. The most important so-called Teleház system: local governments difference is between the press and the elec- establish and finance places where citizens tronic media. While the law on the press without access can communicate with the dates from 1986, that is, from the state administration via the Net. socialist period, the law on electronic media The data are much more favourable for is quite recent. Yet the former does not give business. The intensity of use is in direct pro- rise to many problems and debates, particu- portion to the size of the companies. Ninety larly because it was modified at the begin- seven per cent of firms with more than 300 ning of 1990, while the latter does. That employees have access to the Internet; only bifurcation is true concerning the regulatory 71 per cent of the small ones (with five to agencies too; the electronic media have a nine employees) have the same possibility. In separate commission and a complaints com- the same time, the growth in that respect was mission above that, while the courts handle also fairly steady in 2001 and managers were the press cases. planning to develop the companies. Business used the Web mainly for sales and much less The Press for internal purposes. The central govern- ment has been trying to communicate with The press is free in Hungary. Anyone is enti- business via the Internet. For example, all tled to launch a paper, no permission is public procurement is soon planned to be needed, the publisher is only supposed to carried out with the help of the Internet. register the paper or the periodical, and the All the main off-line media have launched registration can be rejected only on grounds their on-line portals or Web sites and new of criminality. on-line media have also appeared. In Press censorship is sometimes a topic February 2002 the two most visited Web of debate and the number of libel suits is services were Origo and Index with more growing. than 11 million page impressions each per The most questionable regulation is the week, with the next most popular having so-called principle of objective responsibil- only 2.5 million. The financial situation of ity. According to the principle, applied by on-line media is rather unstable. Index has the courts, journalists have total responsibil- been in deficit for long and waiting for ity for the truth value of their reports even if investors, just like other Internet companies. they just give an account of someone else’s Ringier and Vivendi, that is, companies views; if that someone else told an untruth from other spheres of media (press and tele- or something that proves to be untrue and phone respectively), seem to be interested in journalists put that untruth in the paper or buying, the latter planning to become the in the programme of an electronic media, Internet market leader. they may be condemned by the court, even if they did so in good faith. Further questionable cases occur in con- POLITICS, POLICY, nection with state secrets and privacy. There have been several suits where journalists were LAW AND REGULATION sentenced because they had published docu- ments containing state secrets. In other cases Political forces take freedom of the press as an the media allegedly infringed on the privacy abstract ideal for granted. One can say that or the dignity of certain persons, mostly the ideal is realized in the everyday life of the politicians or other public personalities. Hungarian media. There are some regulations There is one problem of free speech that is concerning content, but they are no stricter very delicate and seemingly insoluble for the 108 3103-Ch-09.qxd 11/13/03 12:17 PM Page 109

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legislation: so-called hate speech. The issue is Finally, given recent attacks, the journalists one of protection against publications and of the public media launched their own communications that attack the dignity of a organization (the Association of Hungarian social group. That is especially true of Journalists of the Electronic Media) in extreme rightist books that cast doubt on the February 2002. Holocaust and spread antisemitic propa- The April 2002 defeat of the previous ganda. So far legislation has proved unable to government has been considered to threaten reconcile the right to free speech and a free the survival of the rightist titles. In order to press with the protection of human dignity. protect them, the late Prime Minister called Although the regulations and the prob- with success on the voters of the right to lems of censorship concern not only the subscribe to those weeklies and to Magyar press but also the media in general, most of Nemzet, the rightist daily. the objectionable cases that reach the courts Since all the important political forces occur in the press, particularly in book pub- promise a law against hate speech and lishing, because there are two special bodies against Holocaust denial, we can presume concerned with regulation of the electronic that such legislation will begin soon, though media. the Hungarian Constitutional Court has After 1998, that is, since the previous always preferred freedom of speech against majority began to counterbalance the any kind of limitations. media, there have been two Bills, presented by the members of the majority party in par- The electronic media liament, on the right of response in the media. The first proposed that anyone feel- The Hungarian Broadcasting Act, that is, the ing harmed by an opinion published in a law on radio and television, was passed in newspaper or broadcast in a radio or televi- 1995 and has been in force since 1996. The sion programme should be given the right Act is one of the lengthiest pieces of media to respond (with equal prominence). The legislation in the world. Its size is closely law would concern not only facts but opini- related to all the doubts and fears the legis- ons. The Bill also proposed to establish a lators felt and with their endeavour to fund that would assign part of the profits of regulate every minuscule part of the sphere best-selling titles to the injured party. The and to create legal security. And yet the law Bill was rejected, but re-emerged in a nar- did not solve the problems of the media. In rower version in a second Bill concentrating fact, it has proved to make it possible for the on the right to respond. Parliament passed government to exert as much influence on the law, but the President of the Republic public radio and television as the previous presumed that it might be unconstitutional legal conditions did. and asked the Constitutional Court to The law created a dual system in the examine it. The court did raise certain argu- media landscape: the duality of the public ments against parts of the law. and private electronic media. The duality is Journalists have three main media associ- not very strict because the private media ations, the rest (for example, the Association may, and to a certain extent should, of the Hungarian University and College broadcast public programmes, while the Press, or the Association of Hungarian public media are entitled to broadcast Catholic Journalists, the trade union of that advertisements. sphere) work without too much publicity. The law also established the National Radio The first and oldest one (the Association of and Television Commission (NRTC), a body Hungarian Journalists) used to be the only to supervise the electronic media. The NRTC organization of journalism in the state has a Complaints Commission and it has to socialist period. Because of their reformist conduct the activities of the Broadcasting activity and the sudden privatization of the Fund, the third important establishment. press on the eve of the first free elections in The NRTC is responsible for ensuring free- 1990, the transition did not result in any dom of speech in the field and for the inde- change of staff in the media. Consequently pendence of broadcasters. It also has to carry the old association also survived and is still out anti-trust activities. The commission has the most important organization in its field. a monitoring service that helps the NRTC In 1992 rightist journalists felt obliged check: whether the media are following the to establish a new organization (the Com- regulations on programme content; whether munity of Hungarian Journalists) in order to the news and news magazines are balanced make room for conservative journalism. politically; whether the different companies 109 3103-Ch-09.qxd 11/13/03 12:17 PM Page 110

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give enough space to the Hungarian and influence over the public electronic media. European-made work in their programmes; Even the representatives of the European whether they exceed the quota of advertise- Union and international journalist organiza- ments; whether they follow the rules con- tions raised objections against the situation. cerning violent and sexual content; etc. In Again, both sides agreed that the law had to order to do that, during the 2002 election be amended, but since it needs a two-thirds campaign the commission monitored more majority there is no solution to the problem. than seventy radio and television program- The law created the Broadcasting Fund and mes and published the results daily in the case entitled the public media to have revenues of the larger broadcasters, weekly or monthly from different sources, but still their financial on the activities of the local channels. situation is generally very bad and public The Complaints Commission has to deal broadcasters are very much dependent on with cases where the media companies state subsidies. One of the reasons is that allegedly violate the rules concerning the although every citizen under sixty five with a content of the programmes. The Broad- television set is obliged to pay a licence fee, a casting Fund is to finance works that are not considerable part of the population evades profitable commercially but are important to the obligation. Moreover, the law compelled preserve certain values, to maintain the the second channel of Hungarian Television diversity of the programmes and to serve cer- to move to satellite and give its frequency to tain public goals. The sources of the fund are the new private media companies. Together various: licence fees, subscription fees, penal- with Duna Television, they broadcast via ties, and subsidies from the central budget. satellite, although only a very low percentage The law also changed the legal status of of the population has the facility to watch the public media. Accordingly, there are their programmes free, and not many people three public broadcasting companies: subscribe to the cable services. Consequently Hungarian Television, Duna Television and their income from advertising is rather low. Hungarian Radio. While the NRTC super- The political forces have agreed several times vises the public media as far as the content that the financial difficulties of the public of programmes is concerned, boards of media should be solved but nothing effective trustees supervise the three companies from has been done so far, perhaps because subsi- a financial point of view and they are enti- dies are considered to be a very useful way for tled to select the president of a given com- governments to keep the public media under pany. Each board has a presidium, at least control. eight members of which are elected by the In April 2002 a new, leftist government parliament in such a way that the number of came to power but its minimal majority will those elected by the parliamentary majority probably not be enough to avoid the new should equal the number of those elected by battles of the decade-long media war. In any the opposition. The rest of the members of case, the necessity of a two-thirds majority the boards are elected by social organizations. concerning media legislation will probably And that is the main problem with the block or at least slow down even the public media. The law does not make it clear European adjustment of the Broadcasting Act. which parties in parliament are to be The politicization of the private media is a regarded as belonging to the government side remarkable tendency in Hungary. Magyar and which to the opposition; there may be ATV has launched several political program- parties that give support to the government mes anchored by leftist and rightist journal- without having a representative in the ists. The extreme right has tried to establish a Cabinet. Another trap is that the law presup- network of press, radio, television and poses that each side is able to agree about its Internet-based media by giving space and own nominees, who will then be appointed time to the same journalists on Pannon Rádió by the parliament. But after 1998 the opposi- and on Szent László Televízió, as in the weekly tion proved unable to do that, consequently of the MIÉP, the radical right-wing party in the presidiums of the boards worked without parliament between 1998 and 2002. After its members sent by the opposition. defeat, the right is working to establish the The existence of the incomplete boards first Hungarian news television channel. and, previously, the events that led to their Journalists in the electronic media usually incompleteness caused extremely heated belong to the two main organizations, debates between the majority party and the mainly the older one. In February 2002 a opposition because under such conditions the new organization was established for jour- government had considerable uncontrolled nalists who work in the electronic media. Its 110 3103-Ch-09.qxd 11/13/03 12:17 PM Page 111

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profile is not quite clear yet, though the regulation in the sphere concerning the organizers referred to the old journalist asso- rules and norms and to give certification to ciation as too leftist, to the other journalist Web sites that meet these norms and community as too rightist, which suggests requirements. that the aim was to create a middle-of-the- The Internet is one of the few issues where road organization. It is remarkable, however, one can find agreement among the parties, that the founding persons are the presidents particularly if one takes these plans into and vice-presidents of the public media, that account. All political forces would like to is, figures of the right. develop the sphere considerably, but the actual goals are different: while the right is The Internet and planning to advance the central services, the related on-line media left would like to make it possible for citizens to buy computers and have access to the There is no comprehensive law on the Internet. Independently of the results of the Internet, and the political parties agree that 2002 elections, the parties promise to keep the laws already in force should be modified the existing government institutions of in order to meet the challenge of the new e-democracy and e-government, and the new technologies. Three important laws con- government has even established a separate cerning the field were passed by the parlia- Ministry of Informatics for supervising the ment: on telecommunications, on digital fields of telecommunications, informatics, signature, on electronic commerce. The research and development, etc. All the parties need is urgent to modify the law on copy- consider it important to develop the Hungarian right, for example. content of the Internet, to support such On 15 February 2001 the leading content initiatives and to urge the dissemination of providers established their own association. electronic literacy. All of them would widen The association was to be the form of self- government services on the Net.

STATISTICS

Population (1 February 2001) 10,195,513 Number of households (1 February 2001) 3,840,000

Movie admissions, 2001 15,700,000 Source: HVG. Books published, 2001 8,783

Print media Circulation of main newspapers, January–March 2002

National Political Népszabadság 211,000 Magyar Nemzet 96,000 Magyar Hírlap 50,000 Népszava 36,000 Sports Nemzeti Sport 107,000 Free Metro 327,000 Tabloid Blikk 248,000 Színes Mai Lap 114,000 Mai Nap n.a. Kurir n.a.

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Regional 24 Óra 23,000 Békés Megyei Hírlap 30,000 Délmagyarország 34,000 Délvilág 21,000 Észak-Magyarország 51,000 Fejér Megyei Hírlap 52,000 Hajdú Bihari Napló 52,000 Heves Megyei Hírlap 24,000 Kelet-Magyarország 59,000 Kisalföld 81,000 Napló 55,000 Petöfi Népe 44,000 Somogyi Hírlap 38,000 Tolnai Népújság 21,000 Új Dunántúli Napló 50,000 Új Néplap 29,000 Vas Népe 61,000 Zalai Hírlap 61,000 Source: MATESZ.

Broadcast Audience share of main terrestrial, cable and satellite television channels, media January–March 2002 (%) Terrestrial Public m1 11.2 Private RTL Klub 33.3 TV-2 30.5 Cable Public Duna TV less than 1 m2 less than 1 Satellite None Source: AGB Hungary. Audience share of main radio channels, February 2002 (%) Public Kossuth Rádió 20 Petöfi Rádió 15 Private Danubius Rádió 31 Sláger 23 Juventus 10 Source: Szonda Ipsos.

Percentage of households with all main forms of satellite, cable or terrestrial pay-television, October 2001 HBO 8.8 Sport1 5.7 Source: AGB Hungary.

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Percentage of households with:

VCR (2001) 38 DVD player (2001) 1 Source: Medián.

Satellite receiver (October 2001) 8 Source: AGB Hungary.

Electronic Percentage of households with: media Digital reception by any means n.a. Internet access, December 2001 Internet penetration in the population above age fourteen 17

Mobile phone Number of active subscribers, May 2002 5,695,410 Companies’ market shares (%) Westel Mobil 50.8 Pannon GSM 38.5 Vodafone 10.7 Source: Communications Authority.

Advertising Terrestrial television channels 57.5 spend, 2001 Daily newspapers 14.0 (%) Magazines 13.5 Cable television channels 2.0 Other 13.0 Source: Médiagnózis.

Ownership Main media companies and approximate size of their press and television holdings Daily press Ringier: Népszabadság (49.9 per cent), Magyar Hírlap, Blikk, Nemzeti Sport. Gruner & Jahr (Bertelsmann): Népszabadság (17 per cent). Nemzet (AAB Marketing Services): Magyar Nemzet. Axel Springer Magyarország: 24 Óra, Békés Megyei Hírlap, Heves Megyei Hírlap, Nógrád Megyei Hírlap, Petöfi Népe, Somogyi Hírlap, Tolnai Népújság, Új Dunántúli Napló, Új Néplap. Pannon Lapok Társasága (Westdeutsche Allgemeine Zeitung): Fejér Megyei Hírlap, Dunaújvárosi Hírlap, Vas Népe, Napló, Zala Hírlap. Inform Média (Funk Verlag & Druckerei): Észak-Magyarország, Kelet-Magyarország, Hajdú-Bihari Napló. Lapcom (Associated Press): Kisalföld, Délmagyarország, Délvilág.

Television Magyar RTL (in 1997) (CLT-UFA 49 per cent, Matáv 25 per cent, Pearson group 20 per cent, Raiffeisen group 6 per cent): RTL Klub. MTM-SBS Televízió (in 2002) (Scandinavian Broadcasting System Co. 81.5 per cent, MTM Kommunikációs 16 per cent, Tele-München 2.5 per cent): TV-2. Sources: Médiakönyv, 2000–1; Napi Gazdaság, 12 February 2002.

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REFERENCES Lánczi, Andras and O’Neil, Patrick (1997) ‘Pluralization and the politics of media change in Hungary’, in Patrick O’Neil (ed.) Post- Argeó, Éva (ed.) (1998) Jelentesék könyve, Budapest: communism and the Media in Eastern Europe, London: Új Mandátum. Frank Cass. Cseh, Gabriella and Sükösd, Miklós (1999) Médiajog Sparks, Colin with Reading, Anna (1998) Com- és médiapolitika Magyarországon I, Médiajog munism, Capitalism and the Mass Media, London: Budapest: Új Manátum Könyvkiadó. Sage. Csermely, Ákos (ed.) (2000/1) A média jövo′′ je, Sükösd, Miklós (1997/8) ‘Media and democratic Budapest: Média Hungária Kiadó. transition in Hungary’, Oxford International Review, Enyedi Nagy, Mihály et al. (eds.) (1988) winter, pp. 11–21. Médiakönyv (volume of papers, summaries and Varga, Domokos György (2001) Elso′′ kbo′′ l lesznek az data on the Hungarian media scene, annual elso′′ k I–II, Budapest: LKD. since 1998), Budapest: Enamiké.

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10: Ireland

WOLFGANG TRUETZSCHLER

NATIONAL PROFILE committed to maintaining welfare policies. All parties, and the great majority of the On the periphery of Europe, in area the population, are also committed to member- Republic of Ireland is 70,283 km2. With a ship of the European Union. The more left- population of 3,917,336 inhabitants (CSO, wing party, the Labour Party, usually 2002), it is the country with the second receives around 10–15 per cent of the vote. smallest population in the European Union. The 1997–2002 government, formed by The population is not evenly distributed, Fianna Fáil and the smaller Progressive more than half living in the eastern region. Democrats, was re-elected in June 2002. The high concentration in Dublin (29 per cent of the population live in the city and its environment) particularly contributes to STRUCTURE AND OWNERSHIP this regional imbalance. There are two offi- cial languages in the state, namely Irish and English, but English is the mother tongue of The print media the vast majority of the people. Only 2 per cent of the population live in the Gaeltacht, The newspaper press the native Irish-speaking areas situated The press consists of four national dailies mainly on the west coast. and two national evening newspapers, five Although Ireland has traditionally been seen national Sunday newspapers, around sixty- as a predominantly agricultural country, five regional and twelve local newspapers as continuing industrialization has changed well as approximately thirty-two mainly this. Continued (in Ireland’s history urban-based free (advertising-financed) unprecedented) economic growth in the newspapers (see statistics below). News- period 1995–2001 reduced the unemploy- papers other than the dailies tend to be pub- ment rate (until the mid-1990s traditionally lished on a weekly basis. Roughly 600,000 one of the highest in Europe) to around 4.5 national newspapers and 650,000 regional per cent of the labour force in 2001. Ireland’s newspapers are sold each day and week industrial development is that of dependent respectively. The figures above do not rather than indigenous industrialization. include newspapers published in Irish. Central to the state’s industrial strategy since Irish-language newspapers consist of two 1960 has been the attraction of export- weekly newspapers (Foinse and Lá) and a oriented foreign companies to invest in monthly newspaper on events in the Irish Ireland and of retaining the foreign compa- language (Saol). These newspapers are cir- nies by offering them the lowest corporation culated in the republic and in Northern tax in the European Union. Ireland and are subsidized (to the tune of The economic policies of the two major £120,000 in the case of Lá and £4,500 per parties, Fianna Fáil and Fine Gael, tend to be issue of Foinse) by Foras Na Gaeilge, the state centrist, with a commitment to economic body responsible for the promotion of the rectitude on the one hand, but also, Irish language throughout the whole island given Ireland’s large dependent population, of Ireland. 3103-Ch-10.qxd 11/13/03 12:18 PM Page 116

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Ireland’s booming economy has had a Ireland’s regional or provincial newspaper positive effect on its newspaper industry in market is expected to consolidate substantially that there has been a modest increase of in the next few years as smaller operators are around 2.2–2.5 per cent in newspaper sales targeted by larger ones. In July 2002 there are since 1999. The daily readership of news- four companies that own a sizeable section of papers has also increased in a similar manner. the regional newspaper market: Independent Most Irish newspapers are politically con- News & Media (twelve regional titles). Scottish servative and have a middle-class orienta- Radio Holdings (six regional titles), Examiner tion. British newspapers (especially the Publications (seven titles) and Leader Group tabloid ones) can be bought all over Ireland. (eight titles). Finally, most of the regional UK newspapers are cheaper in Ireland than newspapers in County Donegal are now Irish ones, as Ireland (unlike Britain) owned by the British Mirror Group. imposes value-added tax on the printing of To date there is some cross-ownership newspapers. In 2001 approximately 28 per between the print, the audiovisual and the cent of daily and over 34 per cent of Sunday on-line media in Ireland. The main newspapers sold in Ireland were British. instances of it are the shareholdings in seven Regarding concentration of the press, the local commercial radio stations by some biggest and only Irish ‘media concern’ is the local/regional newspapers (shareholdings firm Independent News & Media, a com- are no longer restricted to 25 per cent of the pany headed by Ireland’s ‘press baron’ shares as was the case until 2001/2) and the Dr Tony O’Reilly. Independent Newspapers involvement of Independent News & Media publishes the Irish Independent, the daily in Chorus, the second largest cable operator broadsheet with the highest sales figures in in Ireland. Scottish Radio Holdings owns the Ireland, two of the five national Sunday national commercial radio service Today newspapers, the national evening newspa- FM. The chairman of Independent News and per Evening Herald, approximately 20 per Media also chairs the Valentia consortium cent of the regional/local press and the Irish that bought, in 2001, the company Eircom, edition of the UK Daily Star. Dr Tony the privatized and former monopoly O’Reilly also owns newspapers in Australia, telecommunications operator. Eircom oper- New Zealand, South Africa and the United ates one of the largest on-line services in Kingdom (the Independent, the Independent Ireland, eircom.net. on Sunday and regional newspapers such as The booming economy and the healthy the Belfast Telegraph). state of the newspaper industry (increasing Independent Newspapers is the dominant profitability due to a higher advertising actor in the Irish newspaper industry in that spend in the period 1999–2001) seems to around 80 per cent of Irish newspapers sold have changed the traditional lack of interest in Ireland in 2001 were sold by companies in the Irish newspaper market by foreign fully or partially owned by Independent (British) investors. This signals a change Newspapers. This situation has been from the situation in which British newspa- reviewed by the Irish government and the pers simply increase the print run of their Irish Competition Authority on a few occa- papers for the Irish market to one where sions. The conclusion reached by these British newspaper publishers acquire Irish reviews has usually been that the newspaper newspapers – seeing that there are no explic- industry shows sufficient editorial diversity itly stated restrictions on foreign ownership not to warrant intervention in the news- of media services. Some British tabloid news- paper market. papers publish an Irish edition. This diversity is provided by Ireland’s Judging by the developments in changes main quality daily broadsheet The Irish of newspaper ownership in the period Times and to a lesser extent (lower circula- 2000–2, when most of the changes took tion figures) by the daily Irish Examiner and place, the sale of smaller but very profitable by the quality Sunday Business Post. The lat- newspapers is set to continue over the next ter two newspapers are part of the Examiner few years. In the region of forty regional Group owned by the Thomas Crosbie titles are still in local ownership and are Group, Ireland’s second largest media com- likely to be bought by bigger indigenous or pany. There is, arguably, less competition foreign (British) newspaper operators. in regional newspapers, as these tend The only newspaper that is currently in to have monopolies in their respective financial difficulties is The Irish Times, localities. Ireland’s main quality broadsheet. It was

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particularly badly hit by a slump in advertising sales are small (5 per cent of revenue in revenue subsequent to the events of 11 2000) but on the increase according to the September 2001, when the Irish economy PPAI (Cawley Nua, 2001). suddenly reverted temporarily to a static growth rate. This affected all Irish media Book publishing except the regional newspapers. By May Despite the fact that the Irish book publish- 2002 The Irish Times had undergone a ing industry has always been faced with over- number of cost cutting exercises such as whelming competition from UK publishers, streamlining its management, introducing there are about sixty serious book publishers, charges for its on-line services, reducing the as well as many others who publish titles on number of its foreign correspondents, etc. a once-off basis. In 2001 educational publish- ers are estimated to have turned over around The periodical and magazine press ¤40 million, while general publishers turned In the magazine sector, Irish titles continue over about ¤25 million. There are no figures to sell well despite the strong competition available for the total value of the Irish book from the United Kingdom. Many popular market, in particular. The retail market value UK titles such as Bella, Hello! and OK! sell for UK-published books was last estimated very well in Ireland, while many specialist in 1994 as being in the region of IR£58 publications from the United Kingdom have million (¤73 million) (Horvath Bastow the resources that make it difficult for simi- Charleton, 2000.) lar Irish titles to compete in a market of only There is a certain amount of state support 2.8 million adults. Because of the size of the for book publishing, the main instance market Irish magazines must rely more being the financial support given to indivi- heavily on advertising than their UK coun- dual authors, to literary organizations and terparts. In most women’s glossies, for to publishers by the Arts Council of Ireland example, the editorial/advertising ratio is (Arts Council of Ireland, 2001). In 2000 this 60:40. Unlike some of the big circulation UK financial support amounted to ¤1.65 million tabloid newspapers which add Irish content or 3.5 per cent of the total Arts Council for the Irish market, UK magazines do not budget. Other and smaller forms of state follow suit. support are primarily aimed at authors and Irish periodical and magazine publishers publishers of works in Irish. are organized in the Periodical Publishers’ Association of Ireland (PPAI). It has forty companies with around 140 of a total of 160 The electronic (audio-visual) media magazine titles in membership. Most com- panies are quite small, publishing only one Television or two titles. This would suggest that the Broadcasting has been dominated since the market will experience consolidation over 1920s by Ireland’s public service broadcaster the next two years as some magazines may Radio Telifís Éireann (RTÉ) and this is still find it difficult to survive without the finan- the situation in 2002 to the extent that RTÉ cial backing of a large publishing house such is a major player in Ireland’s broadcasting as Smurfit Communications, which is part scene. RTÉ operates two national television of the Jefferson Smurfit Group, one of services: RTÉ-1, a fairly typical public service Ireland’s largest companies with an annual channel with an emphasis on news and cur- turnover of ¤4,512 million in 2001. rent affairs programming and Network 2, a The most successful magazine, with channel that has tried to give itself a more 145,146 copies sold per issue in 2001, is the youthful image. Since October 1996 Ireland RTÉ Guide, the weekly guide to radio and has a third public service broadcasting chan- television published by the public service nel, the Irish-language Telefís na Gaeilge broadcaster RTÉ. The highest-selling monthly (TG-4). TG-4 operates under the statutory magazine in the country, with an audited and corporate aegis of RTÉ, but will be set up circulation of 33,529 per issue in the first six as a separate broadcasting authority accord- months of 2001, is VIP, Ireland’s answer to ing to the Broadcasting Act 2001. According the UK’s Hello! and OK! to TG-4’s Web site the channel broadcasts Magazines are financed by advertising over eleven hours per day, with an average (only 2 per cent of the annual advertising of six hours of Irish-language programmes. spend) and over-the-counter sales (73 per The creation of TG-4 was a cultural and cent of total revenue in 2000). Subscription language policy decision made by the previous

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Irish government in response to the demands Irish television homes are in ‘multi-channel’ of Irish-language speakers to increase the use areas, i.e., ones which can receive British tele- of Irish, Ireland’s official first language. vision signals either off-air or via cable or via Apart from the public service broadcaster MMDS (multipoint microwave distribution TG-4, the only indigenous competition to system). Cable television homes can receive RTÉ television is the private commercial the four Irish television channels, four television channel TV-3. Even though the British channels (Channel 5 is not available TV-3 consortium was awarded a licence to on most Irish cable television systems) and broadcast television as far back as 1988/9 it about twelve satellite television stations. commenced broadcasting only in September The Irish cable television industry is at the 1998. One explanation for this long delay end of a process of consolidation, which has lies in the fact that it is hard to imagine the left most cable and MMDS franchises in the financial viability of four national television hands of two companies, NTL and Chorus. channels in a country with a population of There are also a number of much smaller just over 3.9 million, most of whom can also operators with small single-franchise areas. receive British television, arguably the The US-owned NTL entered the Irish market world’s best. Thus in order to start up tele- in 1999 when it bought the company vision broadcasting TV-3 needed strong Cablelink, then owned by Eircom and RTÉ. financial backers from abroad. TV-3 received NTL operates, inter alia, cable television in such backing in 1997 when CanWest Global, the United Kingdom (including Northern the Canadian television company, took a 45 Ireland) and in Paris. NTL Ireland is the per cent stake in TV-3 – the maximum largest Irish cable television operator and its allowed under EU legislation. CanWest runs franchise area includes the east coast of television stations in Australia and New Ireland with about a third of the Irish popu- Zealand and is the world’s largest non-US lation. Chorus Communication is Ireland’s purchaser of Hollywood films. second largest cable operator. Fifty per cent The Canadian company also owns 29.9 of the shares in Chorus are owned by Princes per cent of Ulster Television (UTV), the Holdings which in turn is owned by British independent television company of Independent News & Media, publisher and Northern Ireland. UTV is the second most owner of Independent Newspapers. The popular television station (in terms of audi- remaining shares in Chorus are owned by ence figures) in the republic. In September the US company Liberty Media International, 2000 the British media group Granada which in turn is owned by the US telephone Media also took a 45 per cent stake in TV-3. giant AT&T. Granada Media is the dominant player in Aside from becoming subscribers to cable the British independent television sector in television, viewers in Ireland can also become that it effectively controls the United subscribers to the digital services of Sky Kingdom’s ITV network and produces 47 per Television at a fairly low cost for the installa- cent of the network’s output, including some tion of the aerial (satellite dish). Viewers of the most popular television programmes have to subscribe to Sky Digital for a mini- in the United Kingdom and Ireland, such as mum period of one year whereupon they the long-running soap opera Coronation receive free of charge the necessary digital Street. set-top box for their analogue television sets. The programming on TV-3 is very much In May 2002 there were 232,000 subscribers entertainment-led. TV-3 sees itself as an to Sky Digital. In August 2002 Sky Digital is entertainment network although under the the sole provider of digital satellite television Radio and Television Act 1988 it must services in Ireland. Subscribers to Sky Digital provide a ‘reasonable proportion of news have a choice of up to more than 100 broad- and current affairs programming’. Most of cast television channels as well as a choice of TV-3’s programming consists of US, UK or subscription channels and pay-per-view Australian series and films, and advertis- films. (The two cable operators have also ing, with a minimum of home-produced started providing digital television in small programmes. sections of their respective networks.) With 51 per cent of Irish households sub- scribing to cable television at the end of Radio 2000, Ireland had the fourth highest pene- RTÉ operates four national radio channels: tration of cable television in Western Radio 1 with traditional public service radio European countries. About 70 per cent of programming, 2 FM, a twenty four-hour

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music radio station, Raidio na Gaeltachta 1, the official listenership figures for radio with public service radio programming in show that Radio 1 has lost its position as the the Irish language, and Lyric FM, a twenty- most popular radio station in all parts of the four hour classical music and arts channel. country except Dublin. The Irish public service broadcaster is no A number of other Irish services available longer involved in the provision of local to Irish listeners and viewers do not usually radio subsequent to closing its only local figure in advertising statistics or in the usual radio station, in Cork, Ireland’s second audience statistics. These other services largest city, in 2000 due to its low audience include cable radio, local television and share in comparison with those of the unlicensed radio stations. There are no cable private radio station in Cork now owned by radio stations as such in Ireland, but the UTV. Since the enactment of the Radio and cable operators outlined below do relay Irish Television Act 1988 RTÉ is actually excluded and British national radio programmes. from the provision of local radio in Ireland Similarly there is no tradition of regional or with the sole exception of Cork. local television stations of any note. The In mid-2002 there are forty eight licensed only local television that does exist consists independent radio stations. These consist of local television channels run by the cable of one national independent commercial operators in different parts of the country. radio station, twenty four local commercial Unlicensed or pirate radio stations have stations, thirteen community/community always existed in Ireland since the start-up of interest stations and three special interest of radio broadcasting in Ireland. This was radio stations – the latter three are in particularly the case in the period 1960–88, Dublin. The remainder consist of hospital prior to the legalization of private local and college radio stations. Local radio usu- radio. But even in 2002 the listener/radio ally means a county radio station, i.e. the enthusiast will find, on any day of the year, ranges of these stations are limited to their fifty or sixty pirate radio stations operating respective county or town boundaries. in different parts of the republic. Pirate radio Community and community of interest sta- stations seem to be run by disenchanted tions are run in accordance with the IRTC licence applicants for legal radio stations 1997 Policy on Community Radio Broad- and others who are of the opinion that radio casting and they do not figure prominently in Ireland offers no real choice other than in usual audience figures nor are they of any popular music stations and only one or two great interest to advertisers. What are signifi- ‘proper’ radio stations, i.e. stations like RTÉ cant in terms of audiences and therefore of Radio 1, catering for all groups in society. interest to advertisers are the twenty four Furthermore the state does not seem to be local radio stations. too bothered to shut down the pirates unless The programming on independent com- their radio transmissions interfere with mercial radio stations tends to be quite those of the emergency services or those of similar: wall-to-wall music in some form or legal broadcasters. shape (Top 40 hits or easy listening ‘middle There is no digital audio broadcasting of the road’ music or country music) inter- available in Ireland in 2002, neither are spersed by advertising, jingles, talk or ‘prat- there any concrete plans to develop DAB tle’ by the disc jockeys and cheaply even though the RTÉ Web site states that produced current affairs programmes in RTÉ will start broadcasting digital radio. A order to comply with the legal requirement test transmission of digital radio took place that 20 per cent of broadcasting time must in Dublin in 1999 but no further develop- consist of news and current affairs pro- ments have taken place since then. It seems grammes. However, there are some excep- that RTÉ is more concerned with the devel- tions to the rule in that some of the more opment of digital television. There is no rurally based local radios do provide talk mention of digital radio in the Broadcasting programmes with information about the Act 2001 described below. locality for the local community. On most local radio stations there are very few pro- Film and video grammes in the Irish language. Even though The latest Eurostat cinema statistics show the programming on local radio cannot that in 1998 Ireland had sixty six cinema match the diversity and comprehensiveness sites with a total of 280 cinema screens of the programmes of Ireland’s main (Deiss, 2002). With 3.3 admissions per national public radio channel, RTÉ’s Radio capita Ireland has one of the highest per

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capita box office admissions in the European videos in 1997 amounted to ¤37 million, Union (surpassed only by Luxembourg and video rentals in the same year came to ¤77 Spain in 2000). The majority of cinemas are million. These figures are likely to have multiplexes owned by the major US film increased substantially in 2002 with the companies, as are the film distribution com- introduction of DVD players since 1997. No panies. The latter view the United Kingdom details are available on the share of indige- and Ireland as one market, which means it is nous productions in the video/DVD market. often very difficult for Irish films to be dis- tributed nationally unless these films are on The Internet and international cinema release. It follows that related on-line media the majority of films distributed and exhi- bited in Ireland are US ones. According to According to the Irish telecommunications Eurostat, 73 per cent of films shown in Irish regulator, the Office of the Director of cinemas in 1999 were US films, 6 per cent Telecommunications (ODTR) (ODTR, 2002), were of national origin and 25 per cent were Internet penetration has grown over the last of EU origin. five years and in June 2002 approximately Ireland has a number of support mecha- 34 per cent of Ireland’s population had nisms for the production, distribution and home Internet access via ordinary narrow- exhibition of indigenous films and tele- band phone lines and dial-up modems. vision productions (see IBEC, 2001). In 2000 Broadband access to the Internet tends to be these ranged from tax assistance for invest- limited to organizations such as large com- ment in film production to the tune of panies and third-level educational establish- ¤81.8 million, financial assistance by the ments with broadband access via leased Irish Film Board (¤4.5 million), by the Arts lines. ADSL was introduced only in the Council of Ireland (¤1.43 million) and com- second half of 2001 on a trial basis and with missioning of independent productions by a subsequent monthly charge of just under the public service broadcasters RTÉ (¤14.6 ¤110 it is too expensive for the majority of million) and TG4 (¤11.4 million). home users. However, this level of support does not The active Internet universe, i.e. the num- necessarily guarantee a successful Irish film ber of people who have Internet access at industry when compared with the US domi- home and who have used it during the nance in film production, as was witnessed month, stands at 16 per cent of the popula- in the period January to October 2001. tion. The average home user spent just During this period of time a record nine under four hours on-line in April 2002. films funded by the Irish Film Board resulted Internet penetration in business is substan- in box office returns of ¤2.8 million. This is tially higher than residential Internet pene- generally seen as the most successful year tration, with 98 per cent of Irish businesses ever for Irish film. This is minuscule in com- using the Internet on a regular basis. parison with returns to US distributors. A Internet access is provided primarily by rough calculation of the box office returns Ireland’s telephone companies Eircom and of the US distributors in Ireland for the ESAT (a company owned by British Telecom same period of time shows a turnover of since 2000/1). UTV also provides dial-up ¤66.4 million (calculated on the basis of Internet access, the first company to do so 13.27 million cinema attendances with an on an all-Ireland basis (i.e. Northern Ireland average ticket price of ¤5). and the republic). US dominance in film can also be seen in New Web-based media in Ireland encom- Ireland’s video and DVD industry, as a visit pass streaming audio over the Internet, to any retail or rental outlet with its displays which is provided by some of the legal radio of US films confirms. The visited outlet stations as well as by some private indivi- is probably one owned by Xtra-vision, duals. Web radio offers a way of broadcast- Ireland’s largest chain of video stores with ing which is untouched by regulation, and a over 50 per cent of all video shops. Xtra- few disgruntled applicants for a local radio vision is owned by the US company licence are now ‘broadcasting over the Net’. Blockbuster. The latest published Eurostat The period 1994–2001 saw many Irish figures (Deiss, 2001) show that Ireland has businesses, and government departments/ the second highest number of outlets rent- agencies, develop a Web presence enabling ing videos (29.8 per 100 000 inhabitants) in easier access to information by the citizen/ the European Union. The annual sales of customer. Online services by educational

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institutions tend to consist in the provision as well as the lack of restrictions on the of information rather than in the provision repatriation of profits. of online courses, although this is likely to Concerning Ireland’s media, the move change over the next few years judging by towards globalization has been imple- the developments in the United States. mented and facilitated by two main regula- Online access to government and parlia- tory agencies: the Office of the Director of mentary information is well established in Telecommunications Regulation (ODTR) Ireland, but online access to politicians and and the Broadcasting Commission of government officials is not so highly devel- Ireland (BCI). The ODTR was established in oped. The year 2001 in general saw an 1997 to oversee the deregulation of the Irish increase in the provision of state informa- telecommunications market that occurred tion for business and the public. in 1998. The ODTR not only regulates The only instance of Web television in telecommunications but is also responsible Ireland, whereby Internet content can be for overseeing the technical side of broad- accessed via an analogue television set using casting. The BCI was set up in 2001 and is a a set-top box, is that provided by the portal new super broadcasting authority to regu- of the Independent Newspaper Group. late Ireland’s private broadcasting services According to company information, Unison and to award the new digital content con- had just under 23,000 set-top box sub- tracts that will ultimately determine the scribers at the end of 2001. Portals where content of the digital television channels users can access a variety of different ser- not yet allocated to anybody. Ireland’s vices also exist. Of particular interest in the public service broadcasters are not regulated context of this chapter are the two portals of by the BCI although it is the stated aim the ‘traditional’ media companies: the Irish of the BCI to include the currently self- Times portal and the one of the public regulated RTÉ and TG-4 in its remit. service broadcaster RTÉ. Both these portals provide information that goes beyond their The press remit as a newspaper or a public service broadcaster. However, both portals have The press in Ireland, unlike the broadcast been loss-making since their inception. media, is not subject to specific legislation, i.e. to a specific press law. The right to free- dom of the press is derived from the express POLITICS, POLICY, right to freedom of expression as enshrined in the constitution. However, this right is LAW AND REGULATION subject to a number of restrictions arising out of considerations of public order and In early 2002 the US magazine Foreign Policy morality, the authority of the state, etc. It is ranked Ireland as the most globalized nation curtailed if it amounts to the publication or in the world in the year 2000, in a study of utterance of blasphemous, seditious or inde- sixty two advanced economies in the world. cent matter. This ranking is based on numerous indica- Furthermore, there are a large number of tors spanning information technology, statutes with implications for press freedom, political engagement in international orga- such as, for example the Defamation Act, nizations, international travel and tourism, the Official Secrets Act, the common law trade and economic integration (including concept of contempt of court, etc. (Boyle inward investment, capital flows and per- and McGonagle, 1988: 5–8). There is neither sonal communication). Some of these indi- a press council nor a specific right to reply cators are reflected in the development of incorporated in the various statutes that are the national media system as outlined in of relevance to the press. However, some this chapter: foreign investment in Irish newspapers have voluntarily appointed media companies, privatization of state ‘newspaper ombudspersons’ as a means of assets and a decrease in state subventions, investigating complaints by the readers and an advanced telecommunications infrastruc- of avoiding litigation which may result in ture for business and, most importantly, the the courts awarding high damages for libel. low (12.5 per cent on profits) corporation Monopoly formation in the press industry tax which attracted a substantial capital is subject to specific cartel legislation. This inflow by US companies in the information enables the Minister of Industry and Commerce technology and telecommunications sector, to refer to the (government-appointed)

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Competition Authority any changes in the IRTC to the Broadcasting Commission of control of newspapers of more than 30 per cent Ireland (BCI) and increases the duties and of the shares in the relevant newspaper. The functions of the BCI to include the drawing Minister then has the power to prohibit such a up of codes of broadcasting standards for all take-over or merger between newspapers. broadcasters in Ireland and to conduct The current policy issues of concern to the research to assess the needs of the commu- newspaper industry are ones for which the nity for broadcasting services. industry has been awaiting a government Thus the regulatory situation in mid-2002 response since 1996: changes in the libel is such that the BCI has been transformed laws in order to minimize the cost of court into the main regulatory authority for the awards and the implementation of a self content of broadcasting and has been given regulatory system for press complaints, the some powers concerning the operation of prevention of alleged below-cost selling by public service broadcasting that were part of UK newspapers, and a lowering of the value- the duties of the RTÉ Authority. It is therefore added tax of 12.5 per cent on newspapers. A not surprising that the BCI is endeavouring change in these three issues seems unlikely to become the sole regulator of the content of as of 2002. broadcasting in Ireland to include all the functions of the RTÉ authority in its remit. The electronic media Were the latter to happen it would be a worrying scenario for supporters of public The main applicable legislation for the elec- service broadcasting, as the BCI is a ‘light touch’ tronic media is the Broadcasting Act 2001. regulator in terms of ensuring the compliance The Act is a major piece of legislation and of broadcasters with the existing regulations. sets out the legal framework for broadcast- In 2002 the future role and financing of ing in Ireland – a framework that includes public service broadcasting in Ireland is in the operation of digital terrestrial television the hands of the Forum in Broadcasting (DTT). It also makes major changes in which was set up by the government in Ireland’s existing broadcasting legislation March in response to mounting losses by (von Trützschler, 2002), namely the Radio RTÉ (of ¤14 million in 2000 and ¤71 million and Television Act 1988 (for private broad- in 2001) and in order to examine the role of casters) and the Broadcasting Authority Acts broadcasting in Ireland, especially that of 1960–93 (for the public service broadcaster). RTÉ. The Forum has received submissions The Act envisages the setting up of a trans- from the majority of actors in Ireland’s mission company which is designated by the media, all of which are available on the Web Minister with responsibility for broadcasting site http://forumonbroadcasting.ie, giving a to transmit analogue and digital broadcast comprehensive overview of the actors and television services, including those of exist- interests in Irish broadcasting. The Forum ing television broadcasters, in accordance will submit its final report to government at with arrangements entered into with the the end of August 2002. multiplex company which is also established under the Act. As of mid-2002 no such com- The Internet and panies have been set up and therefore no related on-line media new digital television channels have started. All that has happened is that the three exist- A number of recent legal developments are ing television channels are available in digi- of relevance to on-line services: The first con- tal format on Sky Digital since April 2002. cerns changes in telecommunication laws Concerning public service broadcasting, and regulations. Most of these concern the the Act defines the public service character of pricing and licensing of telecommunica- public service broadcasting, establishes a tions services and they are detailed on the new and separate broadcasting authority website of the ODTR. Teilifis na Gaeilge with the same public Secondly, the Child Trafficking and service remit as that of RTÉ but with no clear Pornography Act 1998 is the result of the provision on the funding of this new author- European Union’s deliberations on illegal ity, and increases the amount of money that and harmful material on the Internet. The RTÉ has to spend on programmes commis- passing of this legislation was preceded by sioned from the independent production the publication of a very informative 1998 sector. Concerning private broadcasting report by the Working Party on Illegal and services the Act changes the name of the Harmful Use of the Internet. The purpose of

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the Act is to strengthen the legislative makes electronic signatures as legally binding protection of the sexual exploitation of as handwritten ones and may increase busi- children. It gives a detailed definition of ness over the Internet (e-business). child pornography and makes the posses- Finally the Copyright and Related Rights sion of pornographic images a crime. Act 2000 updates existing copyright law, A third new legislative measure is the incorporates EU directives and brings the Electronic Commerce Act 2000. This law law into the age of the Internet.

STATISTICS

National population, 2002 3,900,000 Number of households 1,270,000 Movie admissions, 2000 14,885,668 Source: Carlton Advertising. Number of book titles published, 1999 995 Source: Horvath Bastow Charleton.

Print media Circulation of national and regional newspapers, July–December 2001 Sunday newspapers Sunday Independent 311,260 Sunday World 305,019 Sunday Tribune 86,030 Sunday Business Post 50,949 Ireland on Sunday 53,265 Dailies Irish Independent 170,075 Irish Times 120,397 Star 104,944 Irish Examiner 65,274 Evening newspapers Evening Herald 103,838 Evening Echo 28,874 Regional newspapers (three with highest circulation) Kerryman 29,000 Connacht Tribune 30,216 Limerick Leader 26,659 Irish-language newspaper (highest circulation) Foinse 7,859 Sources: http://www.medialive.ie, http://www.abc.org.uk.

Broadcast Main cable television channels media Service Audience (%) Audience share +/- 2000/1 Public RTÉ-1 28.2 -2.0 N-2 8.9 -2.6 TG-4 1.8 +0.3 Privately owned TV-3 10.3 +3.6

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UK television channels UTV 15.4 +1.3 C-4 4.5 +0.7 (satellite) 3.4 -1.3 Sky News (satellite) 1.5 0 BBC-1 10 -0.5 BBC-2 4.8 -0.2 All other stations 9.2 +0.7 Source: Loughrey (2001).

Audience share of national and local radio (weekdays, national figures %)

Listened yesterday Audience share Public RTÉ Radio 1 30 27 RTE-2 FM 28 19 RTÉ Lyric FM 3 n.a. Private 3 Today FM 14 8 Any local stationa 55 Home local stations 50 38 Other local station 8 5 aMore detailed figures can be found on two Web sites: www.irtc.ie and www.medialive.ie. Source: JNLR/MRBI (2001). Percentage of households with: Pay-television (ODTR, 2002) 20 VCR 78 DVD player 10

Electronic Percentage of population with: media Digital television reception 20 Internet access (ODTR, 2002) 34 (Amarach, 2002) 38 Mobile phone (ODTR, 2002) 77

Advertising Press 42 spend, 2000 Television 19 (%) Radio 10 Cinema 1 Exterior advertising 7 Direct marketing 21 Source: von Trützschler (2002)

Ownership Main media companies: Independent News and Media publishes around 80 per cent of all newspapers in Ireland. The main provider of digital television is BSkyB.

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REFERENCES RTÉ (2002) Annual accounts 2001. Dublin: RTÉ. Von Trützschler, W. (2002) ‘Irland’, in Hans-Bredow- Institut, Internationales Medienhandbuch 2002–2003. Amarach (2002) Trendwatch Technology, Quarter 2. Hamburg: Nomos. Dublin: Amarach Consulting. Boyle, K. and McGonagle, M. (1988) Press Freedom Comprehensivee information on Ireland’s media and Libel. Dublin: National Newspapers of can be found on the following Irish Web sites Ireland. (links active in August 2002): JNLR (Joint National Listenership Research) (1996) Dublin: Market Research Bureau of www.nni.ie/ (National Newspapers of Ireland) Ireland. www.ireland.com (The Irish Times) Arts Council (2001) Annual report 2000. Dublin: www.unison.ie/ (Independent Newspapers portal) Arts Council. www.rte.ie (Radio Telefis Eireann) Cawley Nua (2002) Ireland World Magazine Trends www.publishingireland.com/ (portal for the book 2001/2002. Dublin: PPAI. publishing industry in Ireland) CSO (Central Statistics Office) (2002) Census 2002: www.icdg.come.to (Irish cable and digital guide) Preliminary Report. Dublin: Stationery Office. www.iftn.ie (Irish Film and Television Network) Deiss, R. (2001) Cinema Statistics. Eurostat Statistics www.filmboard.ie (Irish Film Board) in Focus: Industry, Trade and Services. Theme www.ppa.ie (Periodical Publishers’ Association of 4–3. Ireland) Deiss, R. (2002) Audiovisual Services. Eurostat www.irlgov.ie (Irish government) Statistics in Focus: Industry, Trade and Services. www.cso.ie (Central Statistics Office Ireland) Theme 4–4. www.forumonbroadcasting.ie (Forum on the Foreign Policy Magazine (2002) ‘Globalization’s last Future of Irish Broadcasting.) hurrah?’ January/February. www.artscouncil.ie/ (Arts Council of Ireland) Horvath Bastow Charleton (2000) Orosh Book www.irtc.ie (Broadcasting Commission of Ireland) Publishing Survey 2000. Dublin: Horvath Bastow www.odtr.ie (Irish telecoms regulator) Charleton. www.medialive.ie (site for Irish media data) IBEC (Irish Business and Employers ‘Confeder- www.tg4.ie (Irish-language television channel) ation)’ (2001) The Economic Impact of Film www.infosocomm.ie (Information Society Production in Ireland 2001. Dublin: IBEC. Commission) JNLR (Joint National Listenership Research) radiowaves.fm (comprehensive listing of licensed/ (2001) Dublin: Market Research Bureau of unlicensed radio) Ireland. www.broadcastireland.com/ (streaming video/audio) Loughrey, P. (2001) The Competitive TV Market- www.irelandlive.com/ (streaming audio) place in Ireland. Dublin: RTÉ. www.irelandlivetelevision.tv/ (streaming video) ODTR (2002) The Irish Communications Market www.asai.ie (Advertising Standards Authority of Quarterly Review, June. Dublin: ODTR. Ireland)

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11: Italy

GIANPIETRO MAZZOLENI

NATIONAL PROFILE Socialist Party (PSI). Such a long hegemony had major repercussions on the country’s economic (banks, finance and industries) Italy, with over 56 million residents, is one of and cultural sectors – and therefore on the the most populous countries in Europe. media. There also were some ill effects, Almost one-third of its population is concen- such as the lottizzazione, that is, the parti- trated in forty nine cities with more than tioning of power among all parties, opposi- 100,000 residents, four of which (Rome, tion included, over public resources and Milan, Turin and Naples) are metropolitan over state television (RAI), newspapers, areas and have more than 2 million residents. press agencies and, to a certain extent, also The structure of the population is charac- over commercial television channels. terized by a high percentage of middle-aged Following the collapse of the old political and elderly and the natural population establishment caused by judicial investiga- growth has been slowly but steadily declin- tions into corrupt political parties and lead- ing since the 1970s, although this trend ers, a new phase, called the ‘Second appears to have been reversed thanks to Republic’, started. A new electoral law in immigration. Various minorities can be 1993 introduced a mixed system (75 per found within the country’s borders, to a cent majoritarian, 25 per cent propor- total of less than half a million people: tional), with the expectation that the French in Valle d’Aosta, Germans in reduction in the number of parties would Trentino Alto Adige, Slovenians in Friuli make domestic politics more transparent Venezia Giulia and Albanians in Puglia. and government coalitions more stable. Such minorities are protected by the consti- This phase of renewal brought on to the tution and enjoy economic, administrative political scene players previously not related and educational privileges, such as special to the political system. The most relevant radio and television broadcasts and newspa- example was the electoral victory in 1994 of pers and schools in their own language. Silvio Berlusconi, a Milanese entrepreneur Geographically, Italy is surrounded in the and powerful media baron. His election, north by the Alps and in the centre and cheered by most as the inauguration of a south by the Mediterranean Sea. The moun- period of more concrete and effective politi- tainous character of large areas (one-third of cal action, soon revealed that the wide- domestic territory) and the long distances spread popular expectations of a ‘revolution’ (more than 1,700 km from Trieste to in the Italian political arena were illusory. Palermo) have had an impact on the develop- The centre-right Berlusconi government ment policies of the mass media in the resigned after only seven months because of country. conflicts among the partners in the govern- Politically, until 1992 (the year of the big ing coalition. A period of political ambiguity ‘Tangentopoli’ scandal), Italy was character- followed, until 1996, when a centre-left ized by the high instability of its coalition coalition, led by Romano Prodi, won the governments (about fifty in forty years), general elections. While Berlusconi came always led by the Christian Democratic under investigation for alleged corrupt prac- Party (DC) – often in alliance with the tices in his financial affairs (including 3103-CH-11.QXD 11/13/03 12:18 PM Page 127

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charges of corrupting judges), the centre-left copies that had been a constant pattern for government coalition did not prove to be decades. a stable alliance: after Prodi’s fall, three From 1970 to 1985. The Italian media went governments (D’Alema I, D’Alema II and through an “ordeal by fire”, as witnessed by Amato) managed to finish the five-year term rapid changes in technology, lifestyles and of the legislation. In 2001 Berlusconi, his political outlooks. The daily press especially judicial troubles notwithstanding, won the showed signs of awakening and was in fact elections by a large margin in both chambers. in the vanguard of the country’s political Italy’s economic system has been charac- and cultural evolution. The old dailies inau- terized for decades by extensive state inter- gurated a type of journalism more keen on vention and interference in all sectors. In monitoring social dynamics. Moreover, new the 1990s, however, a series of government and prestigious newspapers were established policies, most of which were prompted by (Il Giornale, La Repubblica). However, this EU directives, initiated gradual pull-out was also the period of financial difficulties from all sectors by means of the privatiza- for the whole press sector, which opened the tion of public estates and shares. In the field way for powerful interest groups to seize of the media and electronic communica- control of the major newspapers. The Press tions, the state no longer holds a radio and Law of 1981 attempted to rescue the ailing television monopoly; it was rescinded in the press and introduced legal barriers to the 1990 Broadcasting Act (law No. 223). The concentration of ownership in the hands of liberalization of telecommunications services industrial trusts. While the financial subsi- has also been completely enacted. A signifi- dies worked, helping the publishers to get cant exception is public broadcasting, which over the crisis, the anti-trust measures were is still contracted by the state to the unable to uphold the cherished pluralism: a publicly-owned RAI, in spite of referendums group of industrialists led by Fiat established and rulings of the Constitutional Court the RCS (Rizzoli-Corriere della Sera) trust, a asking for partial privatization. The postal giant with assets in all publishing areas service has been separated from direct (books, periodicals, dailies). ministerial management and transformed During the late 1980s the press sector did into a public SpA. well. The crisis experienced in the previous years had been fully overcome. The marriage between marketing and advertising and the STRUCTURE AND OWNERSHIP news industry became very strong. The expansion of advertising investments, thanks mostly to the revolution in the tele- The print media vision domain, drew a large amount of financial resources to the press as well, The newspaper press easing the process of transition to the new With regard to Italian press history, it is technologies and opening the way to sales possible to identify the following periods. promotion operations. By resorting to The decade 1945–54. This was a period of bingo, gadgets, prizes, folders, etc., in order rebirth and normalization for the entire to increase the entertainment value of the media system. The main dailies (Il Corriere news, the daily press circulation reached a della Sera, La Stampa, La Nazione, Il Resto del peak of 7 million copies in 1989. The sport- Carlino, Il Messaggero, Il Mattino) regained and ing dailies and the small, local newspapers consolidated their traditional leadership. were the ones that registered the highest The years from 1955 to 1979. These were growth rates. the years of a vast internal migration, of the In 1989–90 another major press concen- so-called “economic boom” and of the race tration took place: Slivio Berlusconi, the towards the affluent society. It was a stag- commercial television tycoon, and already nant period for the press with regard to owner of Il Giornale, a leading daily news- ownership patterns and circulation figures. paper, bought out Mondadori, Italy’s biggest The two most notable exceptions were the publishing house. launching of the progressive (and aggres- The 1990s. The ‘political revolution’ sive) news magazine L’Espresso, and of the which started in 1992 and led to the daily Il Giorno, both breaking new ground in dismissal of the old political class, also had the news-making domains. The daily circu- an impact in the press precincts. Italian lation remained stable around the 5 million journalism, traditionally subservient to the

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political parties, began to free itself from the local. Nevertheless, many local newspapers political logics and to take sides with the are also controlled by the main publishing prosecutors and with the country’s public trusts. For example L’Espresso group both opinion, infuriated with the old parties and publishes and has shares in sixteen daily leaders. During the 1994 political campaign local newspapers, with a combined circula- and the seven months in which Berlusconi tion of over 500,000 copies. was in power, the press distinguished itself In the past few years, the newspaper through its criticism of the Premier’s poli- market has been characterized by ups and cies. However, with the new victory in 2001, downs. Data by FIEG (Italian Association of a political realignment of the moderate press Newspaper Publishers) and referring to a seems to be taking place. From the industrial sample of sixty two highly representative and financial perspectives, the 1990–2000 newspapers in the national publishing scene decade appears to be fairly stagnant, regis- show that since 2000 there has been growth tering crises for a number of dailies, a in the average daily distribution (over 6 million decrease in circulation rates, diminished copies). This is partly due to the fact that a profits of the biggest papers, and a less lively substantial number of new sale points have marketing aggressiveness. been added to the existing ones, thanks to The current situation. According to the the experimental scheme provided for in Authority for Communications, in 2001 law No. 108/99, in order to liberalize sales there were 138 daily newspapers published through new channels of distribution. by 110 press enterprises. However, the most However, the traditionally strongest point of important dailies are owned and controlled sale remains the news-stand, accounting for by a few financial trusts (for details on circu- 86 per cent of copies sold in 2000. lation, refer to the statistics section). The pub- According to World Press Trends (WPT), lishing firm l’Espresso owns La Repubblica. compared with other European countries, The Hdp-RCS group, formerly RCS, owns the Italy still scores very low in the classification biggest-circulation national newspaper, the of number of copies sold per 1,000 inhabi- Corriere della Sera, and the most read sport tants: only 105 copies in 2000. daily, the Gazzetta dello Sport. The Fiat group Between 2001 and 2002 the newspaper owns La Stampa, and Monti-Riffeser (Poligrafici sector has been touched by a number of Editoriale) publishes Il Resto del Carlino – significant phenomena: Quotidiano Nazionale, La Nazione and Il Giorno. Finally, the Caltagirone group owns Il Messaggero and Il Mattino. In addition to these major groups there 1 The rapid and successful diffusion of are other minor companies, which are very the free press, with a daily circulation important in that they generate vital inter- of about 2 million copies. actions among the media, politics and eco- 2 The substantial increase in the price nomics. For example, “Democrats of the of daily newspapers in connection Left” party (ex-Italian Communist Party) no with the introduction of the euro longer retains the ownership of L’Unità (from ¤0.77 to ¤0.90). (today owned by Dalai Editore), but it is able 3 The crisis of advertising expenditure, to influence its editorial line. The due to the more general uncertainties Industrialists’ Association (Confindustria) of the global economic markets. As publishes Il Sole 24 Ore, the most widely 57 per cent of the newspapers’ total diffused financial newspaper. income comes from advertising ver- Italy does not have a tabloid market, sus 43 per cent from sales, the although there have been some attempts to decrease of 6.1 per cent in the adver- create such a market (e.g. L’occhio in 1981 tising money has worried the pub- and Telegiornale in 1995), mainly owing to lishers, who lobbied the government the fact that there exists a very well devel- to cut down VAT and to take other oped periodical popular press and also measures favourable to the press because of the tendency to consider daily industry. newspapers as products for the elites. Another important characteristic of the newspaper market is the significant presence The periodical and magazine press of a regional and local press: 90 per cent of According to the 2002 report of the the 138 daily newspapers are regional and Authority for Communications, overall

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there exist 4,134 magazines, most of which who claimed to have read “at least one are ‘out-market’, that is, circulated through book” in the last twelve months were about non-commercial channels (such as news- 21 million (38.8 per cent of the entire popu- letters, advertising sheets, religious and local lation). The monthly expenditure per capita publications with non-regular periodicity). (according to ISTAT estimates) was ¤4.19, Only 434 magazines deserve the definition distinctly lower than the European average of commercial enterprises. However, no and mainly clustered around novels (59.4 more than 150 have the lion’s share of the per cent) and cheap and paperback books domestic market. (57.4 per cent). The weekly press is made up of fifty one Since the 1990s the state of the book magazines (including supplements to daily market has been marked by five structural newspapers), with a total circulation of factors: almost 14.8 million copies. The most impor- tant are Gente, Oggi, Panorama, Donna Moderna, Grazie, Famiglia Cristiana, TV Sorrisi e Canzoni, L’Espresso, Il Mondo, Avveni- 1 A tendency for women to read more menti, Chi and Visto. than men. The monthly press scores the highest 2 An average reading propensity higher number of magazines: approximately 100, among young people. with a circulation of 12.3 million copies. The 3 Increasing readership among the most successful ones are L’Automobile, Airone, elderly, owing to the rising levels of Quattroruote Capital, Focus, PC Professionale, education. Casa Viva, Silhouette Donna and Max. 4 A territorial unbalance of readership between north and south: 46 per cent Book publishing and 30 per cent of the population, According to the 2001 report by the Italian respectively. Publishers’ Association (AIE) the book 5 A higher number of readers in metro- market, with its total revenue of approxi- politan areas (43.4 per cent) and in mately ¤3,460 million, is far from being towns with more than 50,000 resi- marginal compared with the other sectors of dents, with respect to the rural areas. the publishing industry. In 2000 52,288 books were published (including reprints), and the total sales were The electronic (audio-visual) media approximately 260 million copies. In the same year there existed 4,226 book publish- ing enterprises. Television The sector shows a low level of inter- Italy’s television service came into being in nationalization (few exchanges and strategies January 1954 when the public company RAI aimed at foreign markets) with the excep- officially inaugurated its first television tion of the major publishing groups channel, followed, in November 1961, by a (Mondadori, Rcs, De Agostini and Gruppo second one and, in 1979, by a third (this lat- San Paolo) and university press publishers (Il ter based on a network of regional centres of Mulino, Bulzoni, FrancoAngeli, Carocci). production and aimed to contrast the Bookshops are still the preferred sales numerous local commercial broadcasting channel, especially the independent ones, stations emerging in those years). compared with those belonging to chains The first private television stations (Feltrinelli, Mondadori, San Paolo, Fnac, popped up in the years 1974–8, following Demetra, Librerie del Centro, Messaggerie the partial (and unintended) deregulation of Libri). A new opening is the big department (cable) television, while the first channels store or the supermarket. broadcasting at a national level were estab- Books with electronic support (e.g. a CD- lished between 1981 and 1982. Never- ROM) enclosed are a popular novelty. theless, in 1984, because of financial Between 1997 and 1999 these products scored difficulties, two of those channels (Rete-4, a growth of 16.3 per cent (66.1 per cent of it owned by Mondadori and Italia 1, owned by only CD-ROM), and in the year 2000 the Rusconi, both press publishers) were bought gross income was about ¤330 million. up by Silvio Berlusconi, who had already set The number of book readers rose signifi- up a successful commercial television cantly from 1988 to 2000. In 2000 those network, Canale 5.

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In general the television broadcasting scene is characterized by the following features: Table 11.1 Structure of RAI programmes, 2000 Programme type % of total 1 The offering of terrestrial channels is quite rich and diversified: in most News 16.6 parts of the national territory it is Information and culture 25.8 possible to receive the thirteen Sports 7.2 national channels and between ten Film 10.3 and fifteen local stations. Television fiction 15.3 2 The duopolist structure of the tele- Children's 5.8 vision marketplace is quite solid: the Entertainment 9.1 two biggest groups (RAI and Mediaset) Other 9.9 share 90 per cent of the audience Total 100.0 and of the television advertising (Total hours) (24,655) resources (RAI: 32 per cent; Mediaset Source: Annuario RAI 2001. 58 per cent). 3 Over 50 per cent of the total advertis- ing expenditure destined to the media The three RAI channels (with 46 per cent sector is attracted by television. share of the total audience in June 2002) are: (1) Raiuno, the most popular and ‘familiar’ The scene is likely to change radically in network with a typically rich offering of 2006, when all national television networks news, entertainment and fiction, (2) Raidue, will have to convert by law from the a channel which attempts to gain the loyalty analogue system to a digital one, thus leav- especially of the young audiences with ad ing the terrestrial analogue frequencies to hoc transmissions, (3) Raitre, more keen to the local stations. Nevertheless, there are identify with the original ‘public service’ some reservations about the actual feasibil- mission of RAI, by offering culture, in-depth ity of such a conversion programme before information, regional programmes, etc. The 2006, given the organizational and techno- contents of the public company’s transmis- logical delays that the television system suf- sions have the structure shown in Table 11.1 fers from, not to mention the economic and Mediaset. The commercial broadcasting financial uncertainties of the audio-visual group is quoted on Milan’s stock exchange market on the global scale. but 48.3% of its shares are firmly controlled RAI. The RAI group represents the public by Fininvest, Berlusconi’s personal financial pole of broadcasting. The public service is holding. Through the same holding the contracted every three years by the state to Premier-media baron controls 50.3 per cent RAI. It is a publicly owned company, gov- of shares of the publishing house Mondadori, erned by a board appointed by the Speakers 99.9 per cent of football team AC Milan, 36.2 of the Chamber of Deputies and of the per cent of Mediolanum Bank and 100 per Senate. It enjoys the financial privilege of cent of Medusa film distribution. The 2000 getting its income from both the household revenue of Mediaset was ¤36 billion (all licence fee (50 per cent) and advertising figures from The Economist, 28 April 2001). (30 per cent). Sales of programmes and other Today the Mediaset group, with its three commercial activities account for the channels (Italia 1, Rete 4 and Canale 5, with remaining 20 per cent. Beside broadcasting, 41.6 per cent audience share in June 2002) through a number of subsidiary companies, and its satellite channels and other assets RAI undertakes a series of related activities: in the field is second only to the public publishing, records, advertising, programme company RAI. sales. It employs about 10,500 people, and The ‘generalist’ channels controlled by the transmits 27,077 hours of nationwide and Berlusconi’s trust, are: Canale 5, that repeats 6,822 hours of regional and minority tele- the main features of its public competitor vision broadcasts and a total of 53,130 hours Raiuno by offering a wide programme range of radio programmes (2000). of information, entertainment and fiction. RAI controls three television channels, Rete 4 has an audience where the elderly five free satellite channels and seven pay- and housewives are overrepresented. Finally, television channels, included in the D + Italia 1 is the ‘young’ channel, addressed to package (Tele +). children, teenagers and youngsters.

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survival, unable to seize more than 3.9 per Table 11.2 Structure of Mediaset cent audience share in June 2002. programmes, 2000 Beside the three major poles there exist a Programme type % of total number of other commercial networks News 11.6 which are actually syndications or associa- Information and culture 6.0 tions of local stations that maintain a fairly Sports 2.5 large autonomy in programme schedules, Film 18.9 advertising collection and financial struc- Television fiction 31.7 ture. The total number of small and Children's 6.2 medium-size independent, private, local Entertainment 18.3 television stations is about 1,000. Other 4.8 Digital television. Because of the massive Total 100.0 television programme supply by the public Total (hours) 21,808 and commercial broadcasters, Italian view- ers for about two decades (the 1980s and Source: Annuario RAI (2001). 1990s) did not show much interest in other channels of television content. The situa- tion started to change fairly rapidly in the The Mediaset channels aired a total of late 1990s and early 2000s. 21,808 hours of programmes in 2000. At present, digital television can be Table 11.2 shows the range of the whole viewed only via satellite. Two companies programme provision by the three commer- provide pay-television services via satellite: cial channels. Stream (controlled 50 per cent by Telecom Compared with the variety of the pro- Italia and 50 per cent by Murdoch’s News gramming of the public channels, the offer- Corp) with 800,000 subscribers in 2000 (and ing of the commercial ones appears quite losses of ¤390 million); Tele + (98 per cent inclined towards entertainment, and com- controlled by the French Canal Plus – Vivendi mercial television is perceived as such by the group and 2 per cent by RAI) with 1,800,000 viewers. In January 1991, however, the three subscribers (and losses of ¤215 million). commercial channels inaugurated a regular Both Stream and Tele + have suffered a seri- daily news service, thus presenting them- ous financial setback, much in line with sim- selves as well as key information outlets, in ilar crises of pay-television in other countries. competition with the previous news mono- In April 2001 the two companies merged, poly of public television. in an attempt to reduce the enormous losses. The third pole: La7. The birth in 2001 of the Nevertheless, in June 2002, following the third television pole in a media market notorious events regarding Vivendi, the place almost completely dominated by the Australian-American tycoon Rupert Murdoch ‘duopoly’ of RAI and Mediaset was very made a bid to buy 100 per cent of Tele +. After troubled and controversial. In the last few receiving the European Union’s green light years, the film producer Cecchi Gori, owner of for the acquisition he established a brand new the Italian channels of TeleMonteCarlo (TMC group named Sky Italia, born out of Tele + and TMC-2), because of serious financial and Stream. Telecom Italia still has a 19.9 per problems, sold TMC-2 to the MTV group and, cent share in the new group. Italy is one of in January 2001, TMC to Seat– Yellow Pages the few countries in the European Union in (controlled by Telecom Italia). Seat renamed which a single company has a monopoly of the old TMC network La7 and tried to set up a the entire pay-television market. channel that voiced the interests of all those – A picture of the situation that has devel- cultural, political and industrial – who did oped in recent times, before the crisis, has not, or would not, identify with the two been given by the Authority for Communi- opposed giants. However, whilst La7 was still cations in its 2002 report: being launched, the Pirelli industrial group, more interested in telecommunications than in the television sector, bought up Telecom 1 Pay-television has seized 13 per cent Italia. The original industrial plans (and ambi- of the total resources of the television tions) were eventually downsized and fewer sector. financial resources were pumped into the La7 2 It has also scored a significant venture by the new bosses of Telecom Italia. increase in the audience, mirrored in Consequently the ‘third pole’ is struggling for

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(3,092,000), founded by Confindustria (the a net loss of terrestrial television employers’ association), the first network in viewers of 380,000 in early 2001. Italy to offer news twenty four hours a day, 3 Households with satellite receivers dedicating most of its air time to financial range between 15 and 20 per cent. and economic issues. 4 Piracy reached 4 million illegal access cards. Film and video 5 There has been a proliferation of satellite channels, about 220 of them According to the last report by SIAE (the using the platform of either Stream or company that administers royalties), 2001 of Tele +. was a fairly positive year for Italian cinema. 6 Market research shows that the pay- Over 100 films were produced; there was television audience is 9.5 million to more investment, especially in European 10.5 million viewers. productions, through co-productions, which have partly replaced American imports, the number of which remains high. In 2001 188 Italian films were released, Radio twelve more than the previous year. Italian radio broadcasting service was created Overall, Italian cinema scored a positive in 1924, but it acquired its modern structure increase both for audience and for profits. In only in 1950, when the three national RAI fact, in 2001, 15 million tickets were sold for channels were set up. Italian films or co-productions, as against As happened in the television sector, the 13 million sold in 2000. 1970s were characterized by unplanned According to a 1999/2000 report by the deregulation, which tolerated the emer- research institute Cinetel, concerning the dis- gence of an enormous number of private, tribution of movie theatres, fifty eight new mostly local, stations (about 2,500), which screens have been inaugurated. Such growth attracted an increasingly high number of is to be attributed to the increase of multiplex listeners, especially among the young. facilities, which in 2001 amounted to forty At present the structure of the radio sector five structures. Multiplex cinemas, especially is similar to that of television. The public those owned by the major international cor- broadcasting company RAI controls three porations (Warner Village and UCI), attract national AM/FM channels (Radio 1, Radio 2 more than 25 million spectators, that is, 31.5 and Radio 3). On the whole, public service per cent of the total of cinema viewers. radio has a stable and dominant market The Italian cinema industry has always share of about 50 per cent, whilst the four- been an object of state attention. In 1958 teen major commercial networks account the government established the Ente for the other half of total listening. Autonomo di Gestione per il Cinema Radio 1, with 13,159,000 listeners per (National Board for Cinema). The main task week (June 2002), is the main national of the Board was to co-ordinate public radio. It is the most ‘generalist’ of all chan- investment in the field and to promote the nels, offering a wide programme range of diffusion of national productions both news, sport and culture. Radio 2 (average domestically and internationally. In 1993 listening 9,425,000) offers mainly entertain- the Board was converted into Ente Cinema ment and pop music and is addressed to a and in 1998 it became Cinecittà Holding. young audience. Radio 3 (4,379,000) broad- The latter owns Istituto Luce (an organiza- casts cultural updates, debates and mainly tion that deals with the production and dis- serious music. tribution of films and documentaries) and is Worth mentioning among the private a shareholder in Cinecittà Studios (allegedly networks are: Radio Montecarlo, launched the only cinematographic organization in as a foreign station in 1966, it broadcasts in Europe that holds all the technical and Italian, and accounts for 6,091,000 listeners professional instruments of film production, a week; Radio One-O-One, established in editing and special effects features). Milan in 1975 with 4,921,000 listeners; According to the data collected by Radio Deejay, established in Milan in 1982 Cinecittà Holding, there are in Italy 255 pro- and by far the most listened-to radio net- ducers, the most important of which is, per work (12,451,000); RDS (Radio Dimensione volume of films produced, Medusa Film (in Suono) (11,618,000), Radio Italia Network 2001–2 market leader with 21 per cent of (10,383,000) and RTL (10,019,000); Radio 24 the total), owned by the Premier, Silvio

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Berlusconi. The largest group is the Cecchi factor (those over fifty five show scant Gori group, followed by RAI Cinema. As for propensity to use the Net) and the ‘digital distribution, along with the Italian sub- divide’ that excludes large sections of lower sidiary companies of the big international and less educated classes. distributors (Warner Bros, Buena Vista, UIP), Medusa, Cecchi Gori and Rai & Studio Canal Distribution occupy leading positions. With regard to home video, according to POLITICS, POLICY, the 2001 report by Univideo (National LAW AND REGULATION Union of Audio-visual Publishing), since 1999 the market has registered an increase. As to video rentals, the report claims that in The press 2001 1.8 million VHS videos were rented Several laws and codes were enacted in the (almost 100,000 less than the preceding years following the end of the Second World year). Moreover, 200,000 DVDs were rented War relating to information conveyed by in 2001 (but the data cannot be compared the print media. with any previous finding). Among the most Of course, the constitution guarantees popular VHS titles, action films and thrillers “freedom of expression” to all citizens represent almost half the market, followed (article 21), but the legislation foresees a by comedies. series of conditions (and restrictions) to be met in order to exercise that freedom. Press The Internet and Law No. 47 of 1948 is the first legislative Act related on-line media regulating this complex matter. It has under- gone obvious and continuous updating. The In Italy, as in many other countries, data law provides basic norms dealing with the concerning the exact number of Internet journalists’ profession: it regulates the right users are less than reliable, owing to the to secrecy, safeguards moral standards, the customary tendency to overestimate this right to reply, defamation and libel, the phenomenon. Nevertheless, according to a penal responsibility of editors and reporters, study in 2001 by the research institute and the like. Eurisko, it seems appropriate to believe that The Press Law of 1981 (with updates in between 9 million and 11 million people use 1984 and 1987) contains more detailed leg- the Internet every day. The 2002 report of islation aimed at regulating the information the Authority for Communications hypoth- industry. It introduced a series of subsidies esizes about 18 million. Although the that helped Italy’s press out of financial and Internet is still not a means of communication structural crisis. Besides the subsidies the accessible to everyone, it is on the other law represented a true turning point both in hand true that its popularity has steadily policy and in the development of the entire grown since it first arrived in the country. sector. The most significant innovations it Thanks to Tiscali’s “free Internet access” inaugurated referred to: formula in 1999, the number of Internet users tripled and quadrupled in one year. Nevertheless, this growth does not corre- spond to an effective increase of use of the 1 Transparency in the ownership of Net. Eurisko confirms this tendency: 74 per publishing companies (ownership cent of those who own a computer have must be made public and owners Internet access, but only 45 per cent use it. may not be active outside the pub- Italy suffers from serious delays in financial lishing field). investments, in public and private policies, 2 The institution of the Guarantor (a and in technologies, delays that have ham- sort of high authority of publishing pered wider diffusion of the Internet and of with several enforcing powers and the several Web services. Recent governments supervising tasks). have introduced financial incentives for those 3 The National Press Register (all daily companies investing in this sector and estab- newspapers, periodicals, press agen- lished an Agency for the Informatization of cies and advertising selling companies Public Administration (AIPA). to the press must register in order to Among the causes of the limited diffusion operate). among the wider population is the age

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allowed those entrepreneurs who engaged 4 Transfers of shares (should be in the private radio and television busi- communicated to the Guarantor). nesses to find their way wide open, with no Concentration among the daily press regulatory limits whatsoever. It was in fact (the acquisition of newspapers lead- called the ‘broadcasting Wild West’ where ing to a dominant position in the the strongest could wipe out all the (finan- market is regulated by a series of cially and politically) weakest competitors. detailed norms). The Berlusconi empire took enormous 5 The establishment of co-operatives of advantage of this ‘a-regulation’. journalists (in case of cessation of As noted, the Italian tycoon succeeded in publication of a newspaper by the controlling the three major commercial tele- former owner). vision channels, in direct competition with 6 The cover price of newspapers (formerly the three channels of RAI. The ‘duopoly’ fixed by government, liberalized in guaranteed a sort of distorted ‘balance’ of January 1988). the broadcasting system but obstructed any plurality. The Mammì Law (No. 223/1990). After long Between the end of 1999 and the begin- disputes about a general reform of the elec- ning of 2001 significant legislation was tronic media system, finally the political passed, capable of modifying in the medium forces found a compromise. It was the term the existing equilibrium in the press Broadcasting Act of 1990 (the so called market. Law No. 108/1999, aimed to stimu- Mammì Law, from the name of the Minister late the ailing sales of press products, of Communications at the time), which was changed the traditionally rigid newspaper soon nicknamed the ‘photocopy law’ and distribution system, by allowing supermar- was blamed for legitimizing the existing kets, tobacconists, petrol stations, cafés duopoly of RAI-Fininvest. However, it and book shops to sell newspapers and brought some fixed points into the legisla- periodicals. tion, especially the prohibition of media An anti-piracy law (No. 248/2000) carry- cross-ownership: ing “new norms for the protection of copy- right” introduced innovative regulations regarding reproductions of books, music and video. 1 Broadcasting is no longer a state monopoly and private enterprises can apply for a licence to run The electronic media stations. 2 Private companies may broadcast After more than twenty years of dominance live, nationwide, by means of techni- of the public service, contracted through a cal link-ups. charter to RAI, but actually under the strict 3 The Guarantor of publishing is given control of government, in 1975 parliament authority also over broadcasting. passed a reform law (No. 103/1975) that, 4 Programmes may have advertise- besides placing RAI under the control of ment breaks, with a number of limi- parliament, permitted a very limited private tations, according to EU directive No. exercise in cable television. That was the 89/552. proverbial hole in the dam: the first private 5 Advertising should not exceed 15 per enterprises appealed to the Constitutional cent of the daily transmission time Court for broader acknowledgement of the and an hourly quota of 18 per cent. ‘right to publish’, also via broadcasting. The 6 Content and programme schedules court ruled in 1976 that private enterprises may not be influenced by sponsors. could broadcast – but only in limited geo- 7 A National Register of Broadcasting graphical areas, as the national frequencies Organizations was established. were assigned to the public service. With 8 Cross-ownership of media must meet that prononucement started the wild ‘dereg- the following conditions: ulation’ of the late 1970s and of the 1980s that triggered an explosion of commercial (a) Anyone controlling over 16 per broadcasting. The failure of governments cent of total daily newspaper and parties to work out for more than a circulation may not hold any decade pro-active, comprehensive regulations

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No. 2) and in favour of partial privatization licence to run a national of RAI (referendum No. 3). television network. After the fall of the first Berlusconi Cabinet, (b) Anyone controlling 8–16 per the succeeding governments of the centre left cent of the total daily circula- passed a series of more restrictive Bills. tion may hold only one The most significant piece of legislation licence. was Law No. 249/1997 (the so called (c) Anyone controlling less than 8 Maccanico Law after the name of the per cent of total daily circula- Minister of Communications of the Olive tion may hold two licences. Tree governing coalition). (d) Anyone with no shares in the The Maccanico Law (No. 249/1997) attem- daily newspaper publishing pted to harmonize Italian media policies with companies may hold up to the EU guidelines with regard to access, plu- three licences. rality and fair competition. It introduced new anti-concentration thresholds: no one can 9 Private licensees broadcasting nation- control more than 30 per cent of total televi- wide are obliged to transmit news sion market resources or more than 20 per bulletins. cent of total communication resources (i.e. 10 Forty per cent of annual transmis- press, radio and television). sion time has to be devoted to pro- It promoted a master plan of frequencies, grammes produced in Europe in the regulated the liberalization of telecommuni- first three years following the grant- cations and established the new Authority ing of the licence, 51 per cent in fol- for Communications. lowing years; no less than 50 per Before the Maccanico Law, the Guarantor cent of these have to be of Italian established in 1981 (for publishing) and in production. 1990 (for broadcasting), and the parliamen- 11 The household licence fee is main- tary board for RAI, introduced by the 1975 tained in favour of the public Reform Bill, were the two main control broadcasting company (RAI). bodies. The Guarantor was a single-person 12 A Board of Viewers was appointed as authority, with some control but little power a consultative body to the Guarantor. of enforcement. The parliamentary board is still a ‘political’ authority, made up of dozens of MPs of all parties, which has supervisory powers only over the activity of The Broadcasting Act of 1990 continued the public service company, RAI. to be a target of criticism, especially from the The 1997 law abolished the Guarantor left, which never accepted that Berlusconi and introduced the above-mentioned could control so large a part of the broadcast Authority for Communications, a collegial media. After a series of attempts by the body with a president (appointed by the opposition to introduce new, more binding government), a council of seven members norms into legislation, in 1994 the Consti- (elected by parliament) and two committees tutional Court ruled that one of the anti- (one for networks and infrastructures, one trust measures of the Mammì Law (article for services and products). 15, para. 4) was unconstitutional because it This Authority, whose control extends over allowed a single enterprise to own three the press, the broadcast media and the telecom- private networks. However, in 1994 Silvio munications sector, among other things: Berlusconi became Prime Minister and his political victory caused an even more exas- perated dispute on the need to adopt anti- trust measures. Also the three referendums 1 Keeps watch over the enforcement of promoted in spring 1995 by the opposition anti-trust requirements. to bypass the parliamentary stalemate and 2 Polices the relations between the net- to bring in some drastic anti-concentration works’ managers and the service measures missed the target. In fact, the providers (in order to avoid discrimi- majority of citizens voted against the pro- nation in access). posed prohibition on ownership of more 3 Sets the licence and transmission fees. than one television channel (referendum 4 Prescribes the technical standards for No. 1), against the ban on commercial the transmission systems. breaks in broadcast movies (referendum

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Most rules of the Mammì Law and of the the existing cross-ownership limits. As far as Maccanico Law are still enforced today. public broadcasting is concerned, the Bill However, with the return of Berlusconi to rules that in 2004 the publicly owned RAI power the political climate over the issue of will be partially privatized and its ownership a balanced and truly democratic media structure will take the form of a ‘public com- system has also returned to being heated pany’, controlled by the ‘golden share’ of and stormy. the Economics Ministry. The Berlusconi government plans to make several changes in the existing legislation, to partly privatize RAI and to loosen certain The Internet and limits on media cross-ownership. The oppo- related on-line media sition charges Berlusconi with attempting to dominate the entire media sector, being During the last few years the technological himself a media tycoon with personal (and evolution of the new media has opened the now also political) interests to defend. The question of whether and to what extent the recently passed Bill on ‘conflicts of interest’, new means of communication should be according to the opposition, is incapable of the target of regulation, much like the older guaranteeing any real separation of the media. However, the peculiar nature espe- interests of the Prime Minister. cially of the Internet media makes it hard In July 2002 a worried President of the for the legislatures of individual countries Republic solemnly summoned parliament to to address effectively the (mostly unpre- develop new comprehensive legislation to cedented) problems it raises. Italy is no safeguard plurality against any dominant exception. position in media ownership, to enhance Some regulations worked out in the years the centrality of the public service, to before the explosion of the Internet pheno- extend the ‘fair treatment’ (par condicio) reg- menon affect security aspects and areas of ulation to all (i.e. public and commercial) individual rights, such as privacy (a right pro- broadcast media. tected by law No. 675/1996). Law No. Following the President’s plea, in October 518/1992, harmonized to directive 91/250/ 2002 the government made public its EEC, concerns the legal protection of software reform plan. The draft plan introduces new and of the informatics systems. In 1999 such anti-concentration thresholds (20 per cent a protection measure was extended to data of total communication resources) but, banks (law No.169). Law No. 547/1993 modi- unlike the Maccanico Law of 1997, draws no fied and redefined the penal procedures with distinction between media and abolishes regard to informatics crimes.

STATISTICS

National population 56,300,000 Number of households 21,500,000 Cinema admissions (source: Mediasalles 2001) 100,000,000 Books published, 2000 (titles) (source: Associazione Italiana Editori) 52,288

Print media Circulation of main daily newspapers, average figures April 2001–March 2002 (source: Prima comunicazione) Print run Circulation Avvenire 140,521 93,820 Il Corriere della Sera 886,512 708,699 La Gazzetta dello Sport 563,670 411,369 Il Giornale 331,821 227,314 Il Giorno 123,427 81,754 Il Manifesto 95,835 37,742 Il Mattino 141,302 102,926 Il Messaggero 383,797 285,096

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La Nazione 184,884 147,880 La Repubblica 809,259 646,005 Il Secolo XIX 148,214 119,538 Il Sole24ore 513,596 416,179 La Stampa 554,821 413,030 L’Unità 139,077 72,540

Broadcast Audience share of main terrestrial television channels, July 2002 (%) media RAI (public) Raiuno 21.1 Raidue 13.8 Raitre 11.1 Mediaset (private) Canale 5 22.4 Rete 4 7.8 Italia 1 11.5 La 7 (private) 3.9 Source: Auditel.

Audience share of main radio channels, daily average, April/June 2002 Total radio audience 35,700,000 RAI (public) Radiouno 8,000,000 Radiodue 5,400,000 Radiotre 900,000 Private Radio 101 1,000,000 RMC Radio Montecarlo 2,200,000 Radio Capital 1,700,000 Radio Deejay 5,300,000 Radio Italia Network 2,200,000 Radio Maria 1,100,000 Radio Radicale 500,000 Radio 105 3,400,000 RDS Radio Dimensione Suono 4,200,000 Radio Italia 3,900,000 RTL 4,400,000 Radio 24 Il Sole24Ore 1,400,000 Radio Latte e Miele 2,100,000 Source: Prima communicazione.

Percentage of households reached by: satellite pay-television 14.6 Source: Federcomin, 2001.

Percentage of households with:

Video-cassette recorder 79.0 DVD 8.8 DVD-ROM 8.0 Satellite receiver 16.5 Source: Federcomin rapporto e-family 2002, referring to 2001.

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Electronic Percentage of households with: media Digital television reception Data not available Internet access (source: Federcomin, 2001) 25.5

Mobile phone contracts (79.4 % of population) 45,500,000 Source: Federcomin rapporto e-family 2002, referring to 2001.

Advertising Division of advertising expenditure, April 2002 (%) spend Total expenditure: ¤2,652,884 Television 58.2 Daily newspapers 21.9 Magazines 13.4 Radio 3.6 Posters 1.9 Cinema 1.0 Source: Nielsen//NetRatings.

USEFUL SOURCES Specialist magazines Prima comunicazione (monthly): www.italian.it/ Books primacomunicazione/ Media 2000 (monthly): web.tiscali.it/media2000/ Online magazine: www.ediland.it Castronovo, V. and Tranfaglia, N., eds (1994) La stampa italiana nell’età della TV 1975–1994. Rome and Bari: Laterza. Media Menduni, E. (2001) Il mondo della radio. Bologna: RAI: www.rai.it Il Mulino. Mediaset: www.rti.it Menuni, E. (2001) La televisione. Bologna: Il La 7: www.la7.it Mulino. Stream: www.stream.it Tele+: www.telepiu.it Reports L’Espresso: www.espresson line.it Caltagirone: www.caltagironeeditore.it Quinto rapporto IEM, Quinto rapporto sull’ RCS-Corriere della Sera: www.rcs.it Industria della Comunicazione in Italia: l’era Monti-Riffeser: www.monrif.net/eng/home.html Internet (2001) www.fondazionerosselli.it/IEM/ Mondadori Publishing Group: www.mondadori.it iem_rapporti.htm Telecom Italia: www.telecomitalia.it Associazione italiana editori (AIE): www.aie.it Federcomin: www.federcomin.it Audience research: www.audipress.it, www.audiradio. it, www.auditel.it, www.audinetsinottica.it ACKNOWLEDGEMENT

Policy bodies The author wishes to thank Valentina Cardo, Andrea Molle and Alessio Pruzzo for Ministry of Communications: www.comuni- their collaboration in composing this cazioni.it chapter. Authority for Communications: www.agcom.it Authority for Competition (Antitrust): www.agcm.it

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12: Luxembourg

MARIO HIRSCH

NATIONAL PROFILE press and the local dialect dominated the audio-visual media. Although tiny (approximately 440,000 In the audio-visual field the multiplication inhabitants) the Grand Duchy of Luxembourg of offerings came only recently. Up to 1991 is characterized by an extraordinary variety the country lived under a de facto monopoly of media, both audio-visual and press. Six enjoyed by CLT/RTL, the Luxembourg-based dailies and eight weekly magazines are pub- pioneer in commercial radio and television lished in the country alongside six radio programmes. The liberalization of the sector, programmes with a national coverage and introduced by a 1991 law, took into consid- four television channels targeted at the eration also the need to address the expecta- national audience. tions of Luxembourg’s multicultural society The diversity of the media landscape has to and to enrich the programming on offer. do with the fact that most of the press is inti- Since 2000 two dominant press groups mately linked with political parties. The press have emerged (Groupe Saint-Paul and is perceived as an expression of political Editpress). Together with CLT/RTL, which plurality and in order to guarantee its perma- still leads the field in the audio-visual sector nence, it benefits from a very generous despite the 1991 liberalization, they have system of direct and indirect public subsidies. taken the lead, thanks to their strong posi- The remarkable richness as far as the press is tion in the field of print media. Thanks to concerned is also related to the multicultural mergers and acquisitions they call the shots dimensions of Luxembourg’s society, which in most of the relevant sectors, including has, with a share of 37 per cent of foreign new media developments. The Groupe Saint- residents among its population (primarily Paul and CLT/RTL have been leaders in their Portuguese nationals, followed by Italians respective fields since the 1930s. They con- and Spaniards) plus more than 100,000 trol more than two-thirds of the readership commuters from the neighbouring regions of respectively of the audience of all the media. France, Belgium and Germany the highest As far as audio-visual media are concerned, a proportion of foreigners in the European qualification is, however, necessary. Foreign Union. Some 67 per cent of the active popu- programmes enjoy a high degree of popul- lation is made up of foreigners, either immi- arity in Luxembourg because for quite some grants or commuters. This is reflected in time local programmes were rudimentary the multilingual approach of the media. and limited to only a few hours a day. Typically, a Luxembourg newspaper carries stories written in any of the three official languages of the country (Lëtzebuergesch, STRUCTURE AND OWNERSHIP French, German). As of late, some monolin- gual publications (French, Portuguese) have appeared. Generally speaking the media take The Print media into account the fact that for obvious practi- cal reasons the predominant language of The newspaper press communication has become French, whereas Six dailies are published. The offering was in the past German used to prevail in the enlarged in autumn 2001 when two new 3103-Ch-12.qxd 11/13/03 12:19 PM Page 140

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titles, La Voix and , appeared, most important is that they have to employ written entirely in French and aimed at the at least five full-time journalists.) Two-thirds resident foreign community. All six dailies are calculated in relation to the number offer comprehensive coverage of inter- of pages. Circulation does not enter into national, national, local and sports events. consideration when the aid is calculated. In They are typically written in the three some cases public subsidies represent more official languages of the country, with the than 50 per cent of revenue. For the smaller exception of the two newcomers. Regional papers they exceed advertising revenue. In newspapers, which used to exist up to the the year 2000 advertising for all the media Second World War, have disappeared or amounted to ¤80,300,000. Of this ¤60 mil- been integrated into one or other national lion went to the daily press. paper. By far the largest publication is the with a daily circulation of The periodical and magazine press 80,000 copies, almost three times as much as The two largest press groups each publish all the other five titles together. The their own weekly magazines. They are has a daily circulation of 22,000, family oriented and they carry an extensive followed by the two newcomers La Voix and coverage of television and radio pro- Le Quotidien (estimated circulation of 4,000 grammes. Télécran (Groupe Saint-Paul) sells each), the Lëtzebuerger Journal (3,000) and about 38,000 copies a week, Revue (until the Zeitung vum Lëtzebuerger Vollek (1,000). 2000, when Editpress bought it, it was The six dailies belong to four publishing produced by an independent publisher) houses which each have their own printing some 25,000 copies. Editpress also publishes press. The Groupe Saint-Paul, which belongs a general-interest weekly in French, , to the Catholic Archbishop of Luxembourg with a circulation of 6,500. The influential and has close links with the dominant weekly d’Lëtzebuerger Land (some 7,000 political party, the Christian Social Party copies sold) plays an important role as an (CSV), publishes both the Luxemburger Wort opinion former, the more so in that it is the and La Voix. It holds a 16 per cent share in only truly independent Luxembourg publi- the Belgian press group Media@bel which cation. , another weekly with an controls the second largest Walloon press emphasis on politics (circulation around group. Editpress, with close links to the 3,000) has close links with the Green Party Socialist Party (LSAP) and the socialist trade (déi Lénk) and the associative movement. union movement, publishes Tageblatt and Le The weekly Luxembourg News (circulation Quotidien (the later is jointly owned by around 4,500), together with a monthly Editpress and the French regional press publication, Luxembourg Business (circula- group Le Républicain Lorrain, which used to tion approximately 3,000) is produced by produce a local Luxembourg edition prior to a publisher with close links to the business the advent of Le Quotidien). Editpress has a community. Both publications are in English. cross-ownership agreement with the French Each of the two dominant press groups also newspaper group Le Monde of 3 per cent. publishes a weekly in Portuguese. The two smaller papers Journal and Zeitung (Groupe Saint-Paul) leads the field with a are owned respectively by the Liberal Party circulation of 8,000. (Editpress) is (DP) and the Communist Party (KPL). estimated at 6,000 copies per week. The Groupe Saint-Paul is the only profitable satirical weekly Den Neie Feierkrop is without publishing group, thanks to the impressive any doubt the most widely read publication circulation of the Wort, which harvests in the country. It sells some 11,000 copies a about 80 per cent of the advertising revenue week and is published by a co-operative. devoted to dailies, followed by the Tageblatt Among the monthly publications Agéfi with a share of only 13 per cent. The group Luxembourg (circulation 7,000), in French, had a turnover of some ¤80 million in 2000, primarily covers the financial world. It including its printing activities. Editpress belongs to the Agéfi group, specializing in had a turnover of ¤37 million. Apart from financial and economic news in France and the Wort, all the other publications depend in Belgium. Paperjam is a monthly publica- for survival to a large extent on the generous tion dealing primarily with business and state press aid, which amounts in its various economic issues. It is published by a young components to more than ¤10 million. One- entrepreneur, Mike Koedinger (MKé) and its third of the aid is evenly distributed among circulation is around 7,000. Forum, another the papers that meet the requirements. (The monthly (circulation 1,500), published by a

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group of intellectuals, has a good reputation programme, Tango TV. It offers a twenty- for its in-depth analysis of politics, social four-hour service of the MTV type and it is issues and cultural matters. run by the mobile phone operator Tango, a subsidiary of the Swedish Kinnevik group. Book publishing Tango is also one of the three operators that On average some 400 books are published have been granted a UMTS licence in each year. Book publishing is heavily subsi- Luxembourg and it is eager to offer content dized by the Ministry of Culture in order to aimed at popularizing the new generation of compensate for the smallness of the market. mobile communications. The two other The publishing industry is largely in the remaining television programmes are fairly hands of the two dominant press groups. modest operations, limiting their presence on Editions Saint-Paul is the publishing arm of screen to one or two hours per week: Groupe Saint-Paul. In 2002 Editpress, which Nordliicht TV is a regional programme aimed has its own publishing house (Editions le at the north of the country and Uelzechtkanal Phare), bought the most important indepen- is a venture into television undertaken by a dent publishing house, Editions Phi. Some high school in the south. Television news for independent publishers like Editions local audiences remains the preserve of RTL. Promoculture, Editions Binsfeld and Editions A pay-television channel, Select TV, by an Schortgen exist. American businessman, Jeff Jackson, was on offer on cable networks for about a year. It ceased its operations at the beginning of The electronic (audio-visual) media 2002 because of a disappointing take-up level (less than 2,500 subscribers). A tele- Television vision licence has also been granted to a The liberalization of television came only public channel, Chamber TV, entirely recently when, in autumn 2001, the govern- devoted to live broadcasts of the public ment granted licences to four programmes. sessions of parliament and operated by the Up to then, television for local audiences Chambre des Députés. This programme was synonymous with RTL, more precisely started in early 2002. its local brand, RTL Télé Lëtzebuerg. Up to To complete the picture, mention has to be autumn 2001 RTL offered a minimal local made of the numerous programmes which television service (about one hour per day). make use of the flag of convenience facilities In view of the competition it stepped up its provided by Luxembourg. Altogether seven offering, proposing eight hours per day, programmes make use of terrestrial frequen- with many repeats and MTV-type program- cies granted by Luxembourg and seven more ming. RTL Télé Lëtzebuerg claims a cumu- are distributed only by satellite on the Astra lated average audience share of 33 per cent, system. Most of the time programmes of the which remains impressive considering the RTL group aimed at international audiences large number of channels on offer in this fall into these categories, but there are also heavily cabled country. Up to fifty pro- examples of other international groups such grammes are available to cabled audiences. as the French Groupe A/B or Canal Europe German programmes are traditionally very Audiovisuel which by making use of the very popular with Luxembourgers. RTL Television liberal Luxembourg legislation want to comes first, with 14 per cent, followed by circumvent the stricter legislation in the ARD (11 per cent), Pro-7 and ZDF (10 per countries they target. Although compatible cent), RTL-2 and Sat-1 (7 per cent). The dias- with the EU directive on Television without pora programmes of RTP, RAI and RTE are Frontiers, the practice provokes intense also very popular with the immigrant com- debate in the target countries. From time to munities. They are all carried on cable net- time the government has to bow to pressure works and they enjoy an audience estimated from abroad. Thus in July 2002 it withdrew at 7 per cent each. the licence granted to No Zap, a channel with Among the four licences granted in autumn a marked pornographic content. 2001 to cable companies, one ceased to exist Television has a modest share of only 10 per after only a few months, Kueb TV. The reason cent of total advertisement spending on the is that only sponsorship is authorized, not media. The explanation for this anomaly has advertisement financing. The government is to do with the fact that until recently only one committed to changing the rules. Only one of channel with limited scope aimed at domestic the newcomers is a dedicated commercial audiences was available, RTL Télé Lëtzebuerg.

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Moreover RTL had to observe a ceiling, in emergence of a small cinema industry. On order to protect the advertising revenue of the average some eight productions per year have press. Cable programmes were prevented from benefited from the tax break regime since its attracting advertising revenue. Both these introduction in 1992. restrictions are expected to be lifted. The Internet and Radio related on-line media Radio liberalization goes back to the 1991 law on electronic media, which abolished Internet and on-line services are underdevel- the de facto monopoly RTL had enjoyed oped despite the high rate of Internet since 1929. Some pirate radios had started connection (about 50 per cent of house- transmitting well before that date, including holds are connected). The more successful one established in neighbouring Belgium. ones are by-products of the core business of Ten years later, RTL Radio Lëtzebuerg still publishers, broadcasters and telecom com- leads the field, with a cumulated audience panies. Among the more innovative content share of 75 per cent, followed by Eldoradio providers is the young entrepreneur Mike with 14 per cent. Eldoradio, in which Koedinger, whose company MKé offers some RTL has a stake of 25 per cent, is a collec- of the most popular sites. No reliable figures tive endeavour launched by Editpress, are available about the level of use, and on- d’Lëtzebuerger Land and private investors. line advertisements are negligible. As is the Its programmes are aimed at young audi- case with television viewing, a reasonable ences. None of the other radios with nation- guess is that Luxembourgers prefer foreign wide coverage on offer achieves an audience offerings. An attempt to set up a Europe- of more than 7 per cent. Denneie Radio, the wide Internet portal in Luxembourg, Europe radio venture of Groupe Saint-Paul, which On-line, has already failed twice and the tries to imitate RTL with extensive news third attempt, launched in early 2002, is not coverage, has an estimated audience of 7 per looking more promising. Teletext has been cent, followed by Radio Latina (also partially offered since 1999 by RTL. Some 100,000 controlled by Groupe Saint-Paul), aimed at people consult it more or less regularly. the foreign communities in Luxembourg, with 6 per cent and Radio Ara, an initiative of the associative sector, with 5 per cent. The law prevents any single investor holding a POLITICS, POLICY, stake of more than 25 per cent, but the LAW AND REGULATION government has pledged to lift the restric- tion. Radio has a share of 15 per cent Luxembourg had and still has great ambitions of overall advertisement expenditures. In in the media and communications fields, addition there are some sixteen local radio despite some setbacks. SES Astra, the satellite stations which are banned from financing operator, which became a global company themselves through advertisements. and changed its name to SES Global following Finally, Luxembourg has had a public its merger with GE Americom in 2001 and its service radio since 1993, Radio socioculturelle, previous stakes in satellite operators in China, with national coverage and financed entirely Scandinavia and Latin America, has replaced by taxpayers’ money. Because of its highbrow RTL as the locomotive. It is precisely RTL programming it has a very limited audience which causes some worries and headaches for estimated at around 2 per cent. the authorities. The almost complete take- over by Bertelsmann in 2001 of the company Film and video that made Luxembourg’s fortunes in the Film production, although heavily subsidized audio-visual field for over seventy years, by the Ministry of Culture, is very modest. renamed RTL Group when the German media On average, about one film is being produced conglomerate took control, has raised some per year. The same goes for television pro- doubts about the future of the group in gramming material. Video has expanded con- Luxembourg. Bertelsmann held more than 90 siderably, thanks to the public Centre per cent of the shares by mid-2002. It is deter- national de l’audiovisuel, which thrives on its mined to achieve complete control, but is still important archives. A very generous tax break engaged in a bitter fight with minority share- scheme has led to Luxembourg involvement holders. Corporate headquarters, which for in international film production and to the the time being remain in Luxembourg, as well

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as local operations, may be affected by the forms of journalism. Typically, Luxembourg’s change in ownership of Europe’s largest newspapers rely heavily on material from audio-visual group. RTL Group, which for the press agencies, which makes for a certain uni- second time in a row has issued earnings formity in their reporting. A reform of the warnings, is in the red, primarily because of a 1976 law that introduced state aid to the press dramatic plunge in its advertisement revenue is being called for. in Germany, and it wants each of its opera- The legislative and regulatory framework tional units to become a profit centre in its remains fairly rudimentary for all the media. own right. The local Luxembourg pro- An outdated law that goes back to 1869 and grammes of RTL accumulate losses because of which is characterized by a repressive the ceiling imposed on both radio and televi- approach governs the press. A reform of that sion revenue from advertisement. The gov- law will soon be passed by parliament. A ernment has tried to compensate for this by Press Council, on which both editors and subsidizing some of the public service role journalists are represented on an equal foot- carried out by RTL radio and television. These ing, deals with matters such as press cards programmes are governed by a franchise (con- and complaints from the general public. It trat de concession) which has been extended to has no power to penalize journalistic behav- 2010 and which contains some public service iour contrary to the code of conduct of the obligations. Concern has been voiced about profession. It can only reprimand. The Press what will happen to these programmes when Council’s performance in this respect can be the franchise agreement comes to an end. For seen as a timid and kid-glove attempt at self- the time being the government has excluded regulation. Most complaints in press-related the possibility of taking over from RTL the matters end up in the ordinary courts, which local television channel. This reluctance can apply general principles of civil law, like civil be explained by the disappointingly poor per- responsibility (liability) and damages suits formance of public radio. Generally speaking, very much against journalists’ liking. most of the Luxembourg media do not rest on A 1991 law governs the electronic media, a sound economic basis. In fact, there are too which is in the process of being reformed. many media on offer for such a limited audi- This law introduced a measure of regulation ence and advertising market, which has not with the creation of two regulatory or super- grown in proportion to the multiplication of visory bodies. The Independent Broadcasting outlets. This is equally true of the radio scene Commission grants broadcasting licences and the press landscape. None of the many and monitors respect for the obligations radio stations is profitable and there is imposed on broadcasters. A National Pro- increasing pressure to let them benefit from gramme Council monitors radio and tele- some kind of public subsidy. As regards the vision programmes. But it acts only in an press, most daily and weekly titles survive advisory capacity, so it is limited to drawing only because they enjoy generous state aid. the attention of the authorities to violations Nine titles benefit from it and it is likely to be of the content provisions. The reform of the extended to the two new French-language 1991 law will merge these two bodies into dailies. The soundness of the system is called one, the Independent Regulatory Authority. into question, the more so in that the subsi- It also will replace the licensing procedure by dies achieve one of the original aim less and an authorization procedure, which in some less, i.e., to encourage quality reporting. The cases will consist of a simple notification fact that the system takes account of the or declaration. The ownership restrictions per- number of pages printed, independent of taining to radio will be abolished, just as will their content, has had perverse effects, among most of the restrictions regarding advertising them copy-paste as one of the predominant financing for both radio and television.

STATISTICS

National population 440,000 Number of households 172,000 Movie admissions (tickets sold) 1,500,000 Books published (titles) 408

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Print media Circulation of daily newspapers Lusemburger wort 79,000 Tageblatt 24,000 LaVoix 7,000 Le Quotidien 5,000 Lëtzebuerger Journal 3,000 Zeitung vum n.a Lëtzebuerger Vollek 1,500

Broadcast Audience share of television channels (%) media Private RTL Tele Lëtzebuerg 57 Tango TV 17 Audience share of radio channels (%) Private RTL Radio Lëtzebuerg 58 Eldoradio 17 Den Neie Radio 15 Radio Ara 7 Public Radio Socioculturelle 3 Percentage of households with: Cable 87 Satellite 27 Video-casette recorder, DVD, etc. 79

Electronic Percentage of households with digital reception devices 14 media Internet penetration Household equipment 63 Regular use 43 Mobile phone owners as % of the population 68

Advertising Press 70.0 spend (%) Radio 15.6 Television 9.9 Outdoor 3.3 Cinema 1.2

Ownership Main media companies RTL group (radion and television) approx. 54 Groupe Saint-Paul (press) approx. 70 Groupe Editpress (press): approx. 25 Number of book titles published: 408

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13: The Netherlands

KEES BRANTS

NATIONAL PROFILE unemployment of almost one million people on more or less permanent sick bene- The Netherlands are small and densely fit, the pressure on the extensive (and expen- populated – almost 16 million people sive) social security system increases. The inhabit 41 000 km2, or 475 per km2. The political system – a parliamentary democracy highest point is just over 300 m above and with a constitutional monarchy, four large the lowest a few metres below sea level. All and a number of small(er) parties with never parts are easy to reach by broadcasting or a clear majority for one party – has created a cabling and, being approximately 240 km permanent coalition government. long and 190 km wide at its broadest points, The recent history of press and broadcast- the country as a whole is very accessible (or ing is closely intertwined with that one vulnerable) to cross-border broadcasting word for which the Netherlands has been with (or without) satellites. To the south it renowned: ‘pillarization’, the remnants of shares borders with Belgium, whose north- which are still around. From the beginning ern half is Flemish (Dutch)- speaking, and to of the twentieth century till the mid-1960s the east and south-east with Germany. (and notably the first twenty years after the Though over-the-air broadcasts from both Second World War), Dutch society was a countries can be seen in a fair part of the prime example of ‘segmented pluralism’, country, with a cable density of more than with the whole social system and particu- 95 per cent more borders are crossed than larly political parties, social movements, just these two. There are two official lan- voluntary associations, educational and guages, Dutch and Friesian, the latter spoken communication systems organized verti- only in the province of Friesland, which has cally along the lines of religious and ideo- just over half a million inhabitants. Thirteen logical cleavages. The two religious ‘pillars’ – per cent of the population are of non-Dutch Calvinists and Catholics – included all social origin, mostly Turkish, Moroccan and from strata. The socialists incorporated only one Surinam, the former Dutch colony. class, while from a social-economic point of The Netherlands is one of the richer coun- view the liberal pillar was the mirror image tries of Europe, linked with Germany both of the socialist one. economically and communication-wise The press in those years had strong links (shipping and road transport). With a gross with political parties, both formally – the edi- national product of ¤401 billion (2000), a tor of the newspaper often being the party positive trade balance, a per capita income leader as well – and informally – political of ¤25,000 (2000), a private consumption of journalists getting their news from party ¤199 billion (2000) and a relatively low rate officials of the same ‘pillar’. About two- of unemployment (2002: 167,000, or 2.4 per thirds of the press had interlocking director- cent), the Netherlands counts as one of the ships with one of the four pillars, creating a more successful OECD stories. On the other fairly closed political communication hand, at the end of 2002 the economy was system in which the press functioned as the slowing down to zero growth, the rate of platform of the pillarized elite. Next to these inflation was double the average of 2.5 per was a politically more neutral press with, cent in the euro zone, and with a hidden however, a rather conservative undertone. 3103-Ch-13.qxd 11/13/03 12:19 PM Page 146

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The origin of Dutch broadcasting lies in the Democrats (CDA) and the VVD, they now 1920s, when there was a coming together of form a government propagating anti- radio amateurs and the telecommunication immigration policies and a new ‘climate’ in industry (Philips). But it was not long before which ethnic tolerance and a liberal attitude representatives of the pillars quickly moved are said to make way for a strict regulatory in. In 1930 the government made special and policy regime. Moreover, during its short rules for radio in which only broadcasting existence the LPF has been very critical of the corporations with strong ties to these ‘streams press and broadcasting; they were blamed for in society’ were allowed on the air: the VARA being co-responsible for the murder because for the socialists, the KRO for the Catholics, of their critical reporting, while the public the NCRV and the VPRO for the Protestants. broadcasting system was also blamed for The AVRO, originally borne out of commer- overspending. As it happens, the present cial interests, aspired to be a national broad- Media Minister (Secretary of State) comes casting corporation, but in reality it had from the LPF, and so does the Minister of strong links with the bourgeois-liberal sphere. Economic Affairs, who deals with telecoms. The last thirty to forty years can be The Prime Minister, Jan Pieter Balkenende, is described in three periods: internal competi- from CDA. tion, external competition, uncertainty. Towards the end of the 1960s the polarized structure changed with the loosening of reli- STRUCTURE AND OWNERSHIP gious and ideological ties: party, press and broadcasting systems were ‘depillarized’. The media in the Netherlands, as in most While political parties had to go in search of countries of Europe, are in a state of flux. the floating voter, press and broadcasting Economically there is increasing concentra- engaged in a struggle for as large a public as tion and competition between press and possible in a volatile media environment broadcasting and among the public and pri- where radio and television pirates, operating vate broadcasters; ownership of private tele- from the North Sea, introduced popular pro- vision and cable has become predominantly gramme formats which rocked the tenu- foreign; financially there is stagnation of ously balanced broadcasting system. With income; audience-wise, newspapers are con- the coming of commercial broadcasting in fronted with de-reading and the electronic 1989 a period of external competition media with fragmentation; technologically, started, with new and often foreign entrants digitalization and the Internet pose both in the media market. The original broadcast- challenges and threats. Given the state of the ing organizations were forced to co-operate, media landscape the Netherlands thus runs albeit hesitantly and uneasily, and ‘branded’ the risk of picturing a present that in the very themselves for the first time as, and taking near future may well look more like the past. pride in, a public broadcasting system in opposition to commercial enterprises that used audiences as numbers to attract adver- The print media tisers and make money. Since the elections of 2002, like the social The newspaper press and political system as a whole, the media The newspaper situation has been charac- system has entered a situation of uncertainty. terized by waves of mergers, especially at After eight years of coalition government the beginning of the 1970s and again in the with both Labour (PvdA) and Conservatives 1990s, and gradually disappearing titles. (VVD) in power, and a political culture based The socialist and Catholic pillars were hard- on consensus and collaboration, the dramatic est hit. Between 1948 and 2002 the number elections of 2002 resulted in a new and much of dailies with their own editor-in-chief fell more adversarial socio-political landscape, from sixty to thirty: seven national and the effects of which are as yet uncertain. Nine twenty three regional. The socialist Het Vrije days before the elections a populist politi- Volk, shortly after the war the largest news- cian, Pim Fortuyn, who according to the polls paper in the country, the Catholic De Tijd was about to upset the political balance, was and the communist De Waarheid disappeared murdered, creating national and very visible one after the other. Het Parool, which began emotions never before seen in the country. In as a socialist underground newspaper spite of his death, the party that bears his during the war, dropped its radical tone and name (LPF: Lijst Pim Fortuyn), gained 17 per is now barely surviving as an Amsterdam cent of the vote. Together with the Christian paper. De Volkskrant changed its Catholic 146 3103-Ch-13.qxd 11/13/03 12:19 PM Page 147

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label to successfully become the paper of time the smallest readership is to be found the leftish intellectuals. Trouw, Dutch among the immigrant population. Reformed, held its ground but its publisher Though two official languages are spoken merged with that of De Volkskrant and Het and there are more than half a million Turks Parool. The neutral papers, De Telegraaf and and Moroccans, all newspapers printed in the Algemeen Dagblad, grew in circulation Netherlands and focused on those living during this period, and the same can be said there are in Dutch. With the exception of of NRC Handelsblad, which resulted from a Spits and Metro they are all broadsheets and, merger in 1970 of two liberal-conservative from a comparative point of view, of a quality papers. The merger wave in the 1990s parti- nature; Telegraaf and Algemeen Dagblad, how- cularly hit the regional and local press. ever, with big headlines and lots of colour In these fifty years the number of inde- pictures, are often considered more mass pendent newspaper publishers declined market newspapers. Interlocking director- from eighty one to eight, but in practice ships with political parties, unions or three own some 90 per cent of the market. Churches have long since disappeared and The seven national newspapers – with the though they all have political sympathies exception of two peripheral and traditional showing in their comments and columns, Christian dailies, Reformatorisch Dagblad clear party political positions and certainly (circulation 60,000) and Nederlands Dagblad ‘coming out’ at election time are a thing of (33,000) – are in the hands of no more than the past. The characteristics of readers of two publishers: PCM, which with Algemeen Dutch newspapers is that they are slowly get- Dagblad (328,000), De Volkskrant (331,000), ting older, compared with television viewers NRC Handelsblad (270,000) and Trouw they are better-off and better educated, they (126,000) owns 54 per cent of that market, spend fifteen minutes per day reading the and De Telegraaf Holding, covering 40 per paper and generally subscribe to it. Only cent with the Netherlands’ largest newspaper Telegraaf and, to a lesser extent, Algemeen De Telegraaf (794,000). Since 1999 there are Dagblad have a readership that mirrors the two new free circulation dailies (handed out population better. Spits and Metro attract mostly at railway stations), which have a younger audience (school and higher edu- introduced the tabloid format (though not cation students, young commuters) that has so much the ‘tabloidized’ content since they triggered some hopeful comments and more are mostly based on press agency news): the wishful thinking from the publishers. Telegraaf-owned Spits (380,000) and Around 60 per cent of the turnover of Swedish-owned Metro (345,000). The latter is newspapers comes from advertising, and it is in fact the only example of foreign owner- here that we see a sharp decline. For the first ship in the newspaper press. time in years, the net expenditure on all The sharpest decline is to be found in the media dropped in 2001, to ¤5 billion. The regional press, where there are still around newspaper business, with more than 7 per forty titles, but usually they share editorial cent hardest hit, realised an advertising material as well as an editor-in-chief. income of ¤1.15 billion, 21 per cent of total Depending on the way one counts, there are advertising expenditure. Slowly falling circu- between twenty one and forty regional daily lation (1.2 per cent in 2000) and the attacks newspapers. Traditionally one of the strongest on the World Trade Center further acceler- publishers here, VNU chose to concentrate ated the decline. In that same year costs rose on the provision of information for the between 15 per cent and 20 per cent, leaving professional market and in 2000 sold most the newspaper publishers biting their nails. of its regional and local dailies to Wegener. With De Telegraaf Holding, Wegener now The periodical and magazine press dominates the regional market. In 2002 Relatively, the Dutch read many magazines: both of them also decided to scale down the 87 per cent say they do so regularly; women number of editorially independent titles, so more than men and those above fifty years that by that year the total number of old less than younger people. An estimated 1 regional/local newspapers had more than billion magazines are sold yearly, ranging in halved in half a century. The total circula- circulation from 3.5 million for the Dutch tion of all Dutch newspapers is 4.4 million, Automobile Association’s Kampioen to a few or a reach of 65 per 100 households; in 1998 hundred for highly specialized scientific this figure was still 69, so with a growing magazines. Very roughly, women prefer population we see a steady decline. The women’s magazines like Libelle (circulation: largest population growth and at the same 650,000) and Margriet (430,000) or gossip 147 3103-Ch-13.qxd 11/13/03 12:19 PM Page 148

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magazines like Prive (475,000), men read with scientific journals: Reed Elsevier, more special interest magazines in the motor- mostly for the medical publications, and ing or sport sector. Other high-circulation Wolters Kluwer in the legal sector. examples are the listings magazines of the broadcasting corporations (the largest being The electronic (audio-visual) media of Veronica Magazine: 1.1 million) and spon- sored magazines like AllerHande (2.1 million) Television of supermarket Albert Heijn. It was not until the end of the 1980s that the After selling off all its dailies and advent of private commercial television dras- freesheets in 1999, including the printing tically changed the still predominantly pil- presses, the Netherlands’ largest and oldest larized structure, but advertising had already magazine publisher, VNU, in 2001 sold all been an issue before, particularly shortly its magazines to the Finish media concern after the war, when financial and press inter- Sanomawsoy Corporation. For ¤1.25 billion ests had lobbied for advertising–financed 250 magazines in seven countries (VNU was media. One Cabinet had unsuccessfully pro- also market leader in Belgium, Hungary and posed a dual system based on the British the Czech Republic), with a total circulation model, in 1965 another Cabinet fell because of 375 million, changed hands. Sanoma of the broadcasting issue, and two years later Magazines is now the biggest publisher in a Catholic–socialist Cabinet produced a the Netherlands. The sale of the magazine Broadcasting Act which bore all the marks of division, and later its educational division (a a compromise. In 1969 the Act came into return of ¤195 million), enabled VNU to effect, opening up the system and introduc- purchase in 2001 for US$2.3 billion the ing co-operation and mixed financing. market research firm A. C. Nielsen, which is Blocks of advertisements (outside the actual operational in more than 100 countries. Two programme) were allowed, commercial years before, VNU had already bought broadcasting companies were not. A special Nielsen Media Research, as a first step on the non-profit foundation (STER) was set up to way to become a global supplier of market- handle advertising, the proceeds of which ing and media information. went proportionally to the broadcasting organizations and partly to compensate Book publishing newspapers for the loss of advertising In spite of a steady decline in the time people revenue due to the coming of STER. The Act spend reading books (to just over ten min- opened up the pillarized system to new utes per day at the end of the twentieth cen- licensees as long as they were aimed at ‘satis- tury), the book market shows a reasonably fying cultural, religious or spiritual needs felt stable picture in which only the debate about among the population’ and added to the retail price maintenance seems a hot and ‘pluriformity’ or diversity between the exist- recurrent issue. Sales in 2000 totalled around ing organizations. The allocation of broad- 32.5 million general (non-educational) casting time was based on the number of books sold and a turnover of ¤400 million. members the organization had and/or the Total sales that year earned the 500 book number of subscribers to their listings maga- publishers in the Netherlands an income of zine. A Dutch Broadcasting Foundation between ¤1 billion and ¤1.5 billion. (NOS) was set up to provide co-ordination Translated thrillers from successful authors and technical services, but also news and like John Grisham and the Harry Potter sport. The board of NOS had representatives books usually end up in the top ten, but espe- from the different broadcasting organiza- cially from the English-language world there is tions and government-appointed members, a solid import market of untranslated books including the chairman. fetching ¤360 million in 2000. The Dutch do The opening up of the system, though also read both English-language literature and intended to protect the existing order, scientific books. Most publications are (still) turned out to favour a concealed form of being sold via bookshops, with book clubs commercialization and also those newcom- and mail order business reaching 21 per ers opting more for entertainment than for cent. Sales via the Internet are increasing but culture, information and education, four ele- so far have not exceeded 2 per cent of total ments which, according to the Act, were sup- sales. Whereas we see a fairly rich diversity posed to characterize broadcasting in a in the ownership structure of publishers of ‘reasonable ratio’. First TROS, originating general books, the scientific book market is from a pirate television station, and later the dominated by the same two publishers as ex-pirate radio Veronica joined the club and 148 3103-Ch-13.qxd 11/13/03 12:19 PM Page 149

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grew explosively in audience and number of programmes. Nederland 3, home of VARA, members/subscribers. A high cable density VPRO and NPS, is the more highbrow, (around 80 per cent at the time), which cultural channel. Since the licence fee was allowed foreign programmes sometimes abolished in 2000, 75 per cent of the financ- with advertising aimed explicitly at a Dutch ing of public broadcasting comes from a audience, and a favourable political climate levy on income tax. To safeguard public paved the way for a further opening up of broadcasting’s independence from the the system. The Media Act of 1988 set a government of the day the budget is fixed deregulatory trend in motion that no longer by law at the 1998 level, with yearly index- could hold back commercial television. In ing. The budget for 2003 (not yet indexed) 1989 Luxembourg CLT/RTL, in combination was ¤617 million, but the new centre-right with the Dutch publisher VNU, started a government intends to cut the budget by Dutch-language channel. Within a year RTL- 5 per cent (¤26 million). Twenty-five per 4 attracted a quarter of the audience. In 1993 cent of public financing comes from adver- RTL-5 was launched and two years later five tising. Television advertising is still growing other stations took the step. A dual broad- (for television on the whole; STER estimated casting system was established in which the its income for 2002 at ¤214 million for traditional public channels saw their audi- television and radio) and now receives some ence share drop from complete monopoly in 14 per cent of total advertising expenditure. the 1980s to a mere minority now. Though the new government is unhappy The public broadcasters have a market with the bureaucratic structure of NOS, the share of 39 per cent, not least because they large board had already been trimmed in still have the rights to the Dutch and 1998, when it was replaced by a smaller European Cup football league. In 1989, before board of managers, comprising three RTL-4 entered the market, it was still 85 per independent members. cent. Eight member-based broadcasting Next to the public broadcasters, two organizations – the old pillars VARA, KRO, groups of foreign-owned stations dominate NCRV, VPRO and AVRO, a new evangelical the commercial system of eight channels: pillar EO, popular TROS and a new and Holland Media Group (HMG), fully owned small broadcaster aiming at a young audi- by Bertelsmann/CLT, which has 28 per cent ence, BNN – the non-member NOS (news, of the market with RTL-4, RTL-5 and Yorin, sports and national events) and NPS (mainly and the Swedish-American SBS group which, culture) and some twenty small (religious, with SBS-6, Net-5 and V-8, has a 19 per cent humanist, educational) non-member orga- share. With 38 per cent of the advertising nizations and regular political party and market HMG had a turnover of ¤303 million government information programmes share in 2001, whereas SBS had a turnover of the three national public channels Nederland ¤134 million that year. De Telegraaf holds a 1, 2 and 3. All have been given a five-year 30 per cent stake in SBS Holland, the only concession by the government (NOS for ten one in a very competitive market that makes years), to be renewed in 2005, and they will a profit. The Dutch music channel TMF, be audited as to their performance according bought in 2001 by American MTV, has a 0.5 to their programme obligations. The per cent market share. The volatility of the member-based broadcasters are expected to commercial market is shown by the zigzag provide pluriformity and quality in their course of the former pirate radio Veronica. programming and to cater for the whole of First, in 1995, it left the public ‘family’, the population as well as for minority which it had uneasily joined in the mid- groups. At least 35 per cent of their 1970s, to go commercial. Then in 2000 it programming must consist of information parted company with HMG, to be left with a and education, and at least 25 per cent commercially very successful programme should be devoted to culture (half of which guide but no television or radio programmes; should be for the arts). Moreover, at least Yorin took over its channel. But, after failing 50 per cent should be in the Dutch language. to take over the V-8 channel, at the end of Nederland 1, ‘home’ of AVRO, KRO and 2002 it started broadcasting again, teaming NCRV, is branded as a channel emphasizing up with Kindernet/Nickelodeon to share a morals and values, especially in drama and new cable channel. Whereas the public information. Nederland 2, with TROS, EO, broadcasters’ programming is predomi- BNN and NOS Sports, focuses more on nantly informational (54 per cent in 2000), family viewing, youth and sports pro- and 27 per cent entertainment (of which 41 grammes. It also houses Teleac educational per cent is Dutch) and 12 per cent education, 149 3103-Ch-13.qxd 11/13/03 12:19 PM Page 150

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the commercial channels show the reverse There are thirteen regional television sta- picture: 59 per cent entertainment (42 per tions, mostly of a public nature. Around 100 cent of it American), 26 per cent informa- local television stations show a mixture of tion, 2 per cent education. commercial and private. RTL-4, audience-wise the most successful of With all these channels available at a rela- the Dutch channels, has a more family and, tively cheap price, digital television is slow as they put it themselves, ‘feel good’ charac- in coming. The lack of standardization of ter; it is popular with housewives. RTL-5 aims the set-top box is not very helpful either. at adult males with films, news, reality televi- Only 107,000 households (16 per cent) have sion, sport and eroticism. During the day it is a subscription. An NOS pilot, which ended in called RTL-Z, offering financial (stock December 2002, was subsidized to the tune exchange) news. RTL-4 and RTL-5 are offi- of ¤1.1 million and reached some 60,000 cially Luxembourg channels, though they households. The digital terrestrial television focus fully on the Dutch audience. Yorin aims ‘bouquet’ Digitenne, a co-operation of at the ‘modern human being’ with films, public and commercial media partners, drama and reality television. It is the home of started in October 2002 with the HMG chan- Big Brother, the internationally successful nels in a few provinces. The pay-television format produced by Endemol. This entertain- channel Canal plus, which has offered a ment producer caters for a lot of shows and digital package since 2000, has never been drama on Dutch commercial television. Its very successful. In 2001 it had just over attempt to join the Holland Media Group at 300,000 subscribers, and at present its future the end of the 1990s was blocked by the is uncertain since its owner, loss-making European Union’s competition directorate for Vivendi, is planning to sell it. creating a too concentrated audio-visual market; Endemol is now owned by Spanish Radio Telefónica. SBS-6, like RTL-4, is more family- The Netherlands have five national public oriented. It introduced a more locally radio channels: Radio 1 (information), Radio inspired and also tabloid style of news. Net 5 2 (easy listening), 3-FM (pop/rock music), aims at the better-educated female audience, Radio 4 (classical music and jazz), and Radio with quality series and reality television. V-8 5 (culture, minorities – AM only). They have aims at teenagers in the early evening and a market share of 31.5 per cent (2001). Next with (action) films at the adult viewer. to these five channels there are thirteen Veronica, at the moment of writing, has yet public regional radio channels financed to set its format. through a provincial levy and advertising Not only commercial television (produc- (by law providing at least 50 per cent tion) is predominantly a foreign affair. With regional information, culture and entertain- the sale of Dutch cable company Casema to ment, which they have difficulty in reach- UPC in 2002, the Liberty daughter of US ing) and more than 300 public local radio media mogul Malone now has a market stations (local news, sport, culture, plus share of 58 per cent. That dominance is music and religious programming), that are strongly objected to by consumer organiza- allowed to carry advertising. Together they tions and the anti-trust authority NMa that attract some 16 per cent of the audience. has still to decide whether to accept it. With Not long after the introduction of private Belgium, the Netherlands have the highest television, several private radio stations cable density in the world: 98 per cent. The sprang up as well. There are around a dozen cable networks allow between thirty and national private radio stations, financed thirty five television channels for on average exclusively by advertising. Since radio adver- ¤10 per month (to which a few euros will be tising is not very popular (for the whole of added in 2003). Next to the three public radio just ¤200 million), the smaller com- service and eight commercial channels, most mercial radio stations come and go. Their networks have the public service channels total market share is around 43 per cent. The (according to a ‘must carry’ rule) of Belgium, most popular ones are Sky Radio (attracting Britain and Germany, plus RAI Uno, CNN, some 15 per cent of the listeners, owned by CNBC, BBC World, Eurosport, Euronews, Rupert Murdoch’s News Corporation, non-stop MTV, The Box, TRT, Discovery, National soft pop music), Radio 10 FM (golden oldies) Geographic, Cartoon Network, and one or and Radio 538 (Top 40, dance music). more regional and local channels, often with Because public regional and local radio has programmes in Moroccan or Turkish. In total advertising, there are only a few private local they cover 12 per cent of the audience market. stations. 150 3103-Ch-13.qxd 11/13/03 12:19 PM Page 151

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Originally commercial radio could be reason is the coming of the digital video disc reached via cable, but a number of terrestrial or DVD, which is catching on rapidly. In the frequencies have been allocated on a provi- middle of 2002 a DVD player was to be sional basis. At the end of 2002 there was found in every third household, an increase disagreement within the new government of 300 per cent in one year. Half these DVD over whether to auction these frequencies, players are installed in a computer. In 2001 the favoured option, or to sell them on the 8.3 million DVDs were rented and another basis of a so-called ‘beauty contest’, which 4.9 million sold; in 2002 Harry Potter and the Minister of Economic Affairs favours. Lord of the Rings were extremely popular. Philips’s version of the DVD, cd-i, which Film and video came on the market in the mid-1990s, has For a long time after the introduction of tele- clearly lost the battle. vision, cinema visits declined dramatically, reaching a low in 1992 with 13.7 million The Internet and related on-line media tickets sold. Since then there has been a clear recovery: 17 million in 1995, 19 million in The dot.com crisis has not passed the 1998, a dip in 1999, and 20.5 million in Netherlands by, as was shown in 2002 by 2000. In that year the government-sponsored the demise of the Internet backbone Production Fund, which also receives provider KPNQuest, the forced sale of the money from collaboration with the public Netherlands’ largest Web shop, Bertelsmann- broadcasters, (co-) financed forty three owned Bol.com, and a few years previously Dutch movies while the cinemas showed the downfall of provider Worldonline, thirty four (including co-productions) new shortly after its high-profile stock market Dutch films. That is 13 per cent of all the flotation. KPN’s bankruptcy was a drama, new releases shown in Dutch cinemas that particularly for Internet users, Worldonline year. The number of independent produc- more for its shareholders. Though the crisis tions have been favoured by tax measures is affecting businesses large and small, the making buying shares in films an almost Internet as a medium of retrieving, sending 100 per cent success story; in 2000 some and receiving all imaginable forms of infor- ¤200 million was thus attracted from indi- mation and communication has lost very vidual investors. little of its popularity. US films were and always are in the major- At present, approximately half the popu- ity, and the blockbusters especially are also lation have access to the World Wide Web at the most popular. The market share of home. A reliable figure is hard to give, American films in 1999 was 80 per cent, because it rises steadily and because the defi- while only 6 per cent of the audience visited nition of access (via the home or at work) is a Dutch movie. It is often said that part of not always clearly distinguished in surveys; this success is due to the near-monopoly of no one research shows the same percentage. four American film distributors in the According to a survey by the broadcasters’ Netherlands: Buena Vista International, audience research bureau, about one-fifth of Columbia TriStar Films, UIP and Warner the population go on-line for thirteen Bros. The export of Dutch films is marginal minutes every day (KLO/Nielsen, 2001). from an economic point of view. This figure is doubled among the young. The video recorder, which was introduced Being on-line affects other media use: the in the Netherlands in the 1970s, is today to average television viewing time, as well as be found in almost 90 per cent of house- time reading newspapers and books are said holds, and is used for playing rented or to be affected between 5 per cent (television) bought videos, for time-shifting television and 14 per cent (books). Though there has programmes or for own video productions; been an increase among female users, twice in 2000 22 per cent of Dutch households as many men are still to be found on the had a video camera. Video rental shops net. The group that has been rising fastest is became a normal sight in the 1980s, the senior citizens; in June 2000 10 per cent of total is now estimated at 1900. The hire the over-sixty five-year olds were on-line charge (on average ¤3 per copy) has fallen weekly, four times as many as in the first since 2000, though turnover is still rising: in quarter of 1999. There is still a social, age 2000 to ¤105 million with around 33 million and gender gap; not so much in penetration copies rented out. Video buying – in 2000 any more – PC (almost 70 per cent) and 11 million copies and a turnover of ¤115 Internet have become part of the household million – is stalling too. An important inventory – but in actual use. In spite of the 151 3103-Ch-13.qxd 11/13/03 12:19 PM Page 152

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high cable density, access to the Internet is distance, and there is a tendency to expect still mostly (two-thirds) sought via a tele- market forces and competition to strengthen phone modem. and guarantee diversity and plurality. On the After some search engines and starter other hand, there is a sense that communi- pages, omroep.nl, the home page of the cation freedom can be ‘enjoyed’ only with combined public broadcasters, scores high some form of government regulation: limit- among the more popular Web sites (27,000 ing the effects of a malfunctioning media hits per day in 2001). With 20,000 hits De market, enhancing access to and the diver- Telegraaf does best among the newspapers; sity and quality of the channels and the con- the Internet-only news portal nu.nl is a tent of communication. Media policy in the strong competitor. All national newspapers Netherlands, as in many liberal democracies, and almost all regional dailies are present on- has always steered between the Scylla of non- line. They are often reasonably interactive, interference and the Charybdis of control. with not only access to archives but also There are good and pressing reasons for a feedback via e-mail and discussion groups. In revitalization of this debate. The newspaper order not to ‘canabalize’ their ‘mother’, most press sees a rapidly declining number of newspaper sites are mere affiliates with titles and increasing concentration of hardly any regular updating or specific infor- ownership, triggering a debate about the mational extras. Television sites make better effect on the diversity of opinions voiced. use of the multimedia features of the Magazines, commercial television, film dis- Internet and also offer more hyperlinks. tribution and cable are predominantly in The broadcasters in particular have dis- the hands of foreign owners, not only rais- covered the commercial and ‘bonding’ ing the question whether money alone is opportunities of the Internet. The success of the driving force of the media industry, but the Internet applications of the Big Brother particularly what this might mean for the reality television show – on-line discussion ‘Dutchness’ of what some consider the bear- groups combined with voting via (paid) sms ers of cultural identity. Public broadcasting and other mobile telephone features – has is holding its ground vis-à-vis growing com- made it clear to commercial broadcasters mercial competition, but content and pro- that more money can be made out of the gramme policies seem more based on how to Internet and the telephone than from actual hold and attract viewers than on the programming. For the public broadcasters, Enlightenment-inspired cultural-pedagogic the Concession Act has enabled NOS to mission which, when it still had a mono- develop new Internet-related services. poly, was more or less its raison d’être. One Following McKinsey advice, NOS will proba- would thus expect anxious activity and a bly build up its explicit guide function (EPG) full agenda in the domain of media policy. and a strong portal. Internet activities are expected to grow to ¤45 million in 2004, but Actors the new centre-right government may well cut this part of the budget. Though there is growing convergence in the technology and economics of communi- cation, in the domain of policy making and POLITICS, POLICY, LAW regulation the integration of the traditional press, broadcasting and common carrier AND REGULATION policy models is only slowly materializing. The Minister of Economic Affairs deals with Regulating the media is and has always been liberalization and competition, and since controversial. As they are in most liberal 2002 he also has telecoms in his portfolio. democracies at the heart of the public sphere – The Secretary of State for the Media is informing on and controlling the powers involved in the more cultural and legal that be, from Church and aristocracy in the aspects of the media and stays away from old days to political and economic powers common carrier policy. As it happens both now – concern over their independence and are from the same party in the new centre- well-being has always been a political issue. right government, but for the rest there is On the one hand, freedom from government still a separation of powers. and economic interference is considered a Three independent bodies overview the prerequisite for the free expression of ideas actual implementation and upholding of laws and opinions and for the freedom of the and regulations with regard to communi- press. Thus government should keep its cation. The Media Authority (Commissariaat 152 3103-Ch-13.qxd 11/13/03 12:19 PM Page 153

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voor de Media) on the basis of the Media Act came to a media-specific anti-trust law, if ‘polices’ the public and commercial broad- only because successive governments argued casters and the cable owners at a national, it might violate the constitutionally guaran- regional and local level. The aim of the teed freedom of expression. In 1993 the authority is to enhance an independent and newspaper publishers agreed to a self-regula- pluriform media sector. In practice it allots tory code of conduct not to extend their air time, checks programmes for hidden ownership beyond a third of the total news- advertising and controls the finances of the paper market. So far, it has never happened, public broadcasting organizations. It has the but there was always doubt that this gentle- power to punish those stations that do not men’s agreement would not hold at the live up to the rules: in 2000 the Authority moment suprème when opportunity knocked. received ¤300,000 in fines, particularly for The new anti-trust law of 1998, which covers hidden ads and sponsoring, and mostly more than the media alone, made the code from the commercial broadcasters. obsolete. It prohibits price-fixing agree- The Nederlandse Mededingingsautoriteit ments, the misuse of positions of economic (NMa), the anti-trust authority, controls all power and business mergers without prior forms of competition, not only in the media notice. The NMa is to uphold the law. market. It has the authority to uphold merg- Specific cross-media ownership regulation ers which are considered detrimental to suffi- does not exist, but publishers are refused a cient competition in that market. The cable broadcast licence if the enterprise already company UPC’s buying of Casema, which controls 25 per cent of the daily newspaper resulted in a market control of more than 50 market, a rule which applies particularly to per cent, is a case which will be scrutinized local newspapers that in almost all cases by the NMa at the end of 2002. The appear in one-paper cities. Onafhankelijke Post en Telecommunicatie Rather than prohibiting, press policy is Autoriteit (Opta) deals with the post and based on the principle of enabling measures telecoms market. It assesses (sufficient) to support the existence and enhance the access to the cable networks which, accord- diversity of titles. Apart from a special VAT ing to the so-called Open Network Provision, rate for newspapers of 4 per cent, a special should allow other Internet providers to Press Fund has existed since 1974, which their networks, it registers providers in the gives specific financial support to newspapers postal and telecoms market, and enhances in trouble. A continuing debate thereby competition in the liberalized telecommuni- has been whether further concentration cations market. In 2005 Opta will merge under this system will not lead to support with NMa. The former would also like to for the loss-making parts of an otherwise merge with parts of the Media Authority, economically successful media business. A but as yet that seems politically unviable. more specific quality support measure, Journalist and advertising organizations based on the principal of individuality, is have their own self-regulatory authorities: the setting up of a fund for special journal- the Journalism Council (Raad voor de istic projects, which gives grants to individ- Journalistiek) which adjudicates (but cannot ual journalists for research journalism that fine) on complaints filed by the public and extends the twenty four-hour news cycle. by organizations, and the Advertising Council (Reclame Code Commissie) which The electronic media decides on complaints by the public on spe- cific ads. Libel cases (slander, discrimination) Where with the press the government is very can only be brought before a court of law. hesitant to interfere, it is different with broad- casting. Traditionally because of the scarcity The press of over-the-air channels, but also because of the assumed intrusiveness of the medium, The history of the battle for press freedom broadcasting knows a relatively regulated has made sure that the regulation of news- regime as to its organization and to the pluri- papers, more than of any other medium, is a formity and quality of its content. Some of light and distanced rein. The fears about con- the measures apply not only to public but tinuing concentration, and the effect it may also to private commercial broadcasting. have on the diversity and pluriformity of The licence fee was abolished in 2000 and their quantity and quality, have always been has been replaced by a levy on income tax at the centre of the debate on how far gov- yielding the same revenue but being less ernments should go. In this debate it never costly. The public service broadcasting 153 3103-Ch-13.qxd 11/13/03 12:19 PM Page 154

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organizations now receive a government cent should be cultural programmes, with subsidy, covering 75 per cent of their costs. half of them devoted to the arts; half must be By fixing the budget by law at the level of in Dutch, half must be European productions, 1998, broadcasting’s independence is said to half must be subtitled for the hard of hearing, be safeguarded, but the 2002 change of gov- and a quarter should be commissioned from ernment triggered a fierce debate. Coalition independent producers. Secondly, there are partner LPF, the party of the murdered Pim measures to protect specific groups in society. Fortuyn, proposed a cut in the budget while Feature films and other programme material several of its Ministers and members of par- that is unsuitable for children under the age liament have questioned the objectivity and of twelve or sixteen should not be scheduled quality of public news reporting of their before 8.00 p.m. or 10.00 p.m. respectively – a party. No specific measures have as yet been requirement applying to both public service taken, but references to political control in and commercial broadcasters (with the excep- the pillarized period or to the media prob- tion of RTL-4 and RTL-5, because as lems under Italy’s President and media Luxembourg channels they do not fall under mogul Berlusconi are regularly made. Dutch jurisdiction). Since 2001 there has been Diversity in the public system is enhanced a classification system for the kind of content by its openness. Potentially new public of films, television programmes and video service broadcasting organizations are in games. It is up to the producers to specifically principle allowed access, provided they have label these with a pictogram and an age sug- 60,000 members and that they and their gestion as to their level of violence, sex, bad programmes contribute to the representa- language and discrimination; parents can tion of different currents in Dutch society. then decide whether or not to allow their New associations have to demonstrate that children to watch or play. their presence would add to the diversity of Thirdly, the law prescribes that advertising programming. At the same time, recent should be broadcast only in short blocs in governments believe that the survival of ‘natural breaks’ and not during programmes public service broadcasting vis-à-vis com- (and certainly not during the news): a rule mercial competition is possible only if the which does not apply to commercial broad- existing corporations co-operate more and casters. What does apply to all is the rule in a way play down their own original pil- that advertising may not exceed 10 per cent larized ‘identity’. A concession of five years of the total programming, with a maximum should help that process, but could also of 20 per cent per hour at prime time. mean the end of the member-based and ide- Finally, there are support measures, financial ologically and religiously coloured Dutch incentives, to ensure and enhance a certain model. level of programme quality. Examples are a Other than with the press, broadcasting statutory fund for productions of outstand- knows several measures regulating its con- ing quality (¤14 million available annually) tent. Firstly, the Media Act explicates that and a joint production fund with Flemish public service broadcasting across the three television, the Dutch film sector and the channels should provide a ‘full programme’, a performing arts (¤9 million annually). variety of qualitative programme categories This summary of rules and regulations aimed at suiting the needs of society. At least may convey a different impression, but the 35 per cent should be devoted to information dominant policy rule is still one of govern- and education and should be fair and bal- ment keeping its distance and, as far as anced as to its political content; at least 25 per possible, letting the market do its work.

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STATISTICS (2002 unless otherwise indicated)

National population 15,900,000 Population density 475 per km2 Number of households 6,800,000 Movie tickets sold (2000) 20,500,000 Books (non-educational) sold (2000) 32,500,000

Print media Number of national daily newspapers 7 Number of (editorially independent) regional/local dailies 21 Circulation of daily newspapers 4,400,000 Coverage of dailies per 100 households 65 Circulation of main newspapers, 2002 De Telegraaf 780,000 Volkskrant 326,000 Algemeen Daglad 315,000 NRC Handelsblad 271,000 Trouw 125,000 Reformatisch Dagblad 60,000 Nederlands Dagblad 33,000

Broadcast Number of national television channels 3 media Public Private 8 Number of national radio channels 5 Public Private more than 10 Number of regional television channels (public) 13 Number of local television channels (mixed) 100 Number of regional/local radio channels 13/300 Public Private Few Average television viewing time per day(minutes) 166 Audience share on peak time television (%) Public Nederland 1 13.0 Nederland 2 17.0 Nederland 3 9.0 Private RTL-4 16.0 RTL-5 4.5 Yorin 7.0 SBS-6 11.0 V-8 3.0 Net 5 5.0 Audience share of radio 31.0 Public Private 53.0 Cable penetration 98 percentage of households with: VCR 89 Satellite receiver 8 DVD 34 Pay-television subscriptions 312,000

Electronic Internet users (% of total population), 2001 7.2 million (45%) media Mobile phone subscribers (% of over-twelve-year-olds) 6.8 million (50%)

Advertising Press 29.6 spend (%) Magazines 11.6 Television 45 Radio 7 Internet more than 1

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REFERENCES De Mediamarkt in Nederland en Vlaanderen (2002). The Hague: Biblion. Media Handboek 2002 (2002) Amsterdam: Adfo. Bakker, P. and Scholten, O. (1999) Communi- Van der Haak, K. and van Snippenburg, L. (2001) catiekaart van Nederland. Alphen and de Rijn: ‘The Netherlands’ in L. d’Haenens and F. Saeys Samson. (eds) Western Broadcasting at the Dawn of the Bardoel, J. and van Reenen, B. (2002) Twenty-first Century. Berlin and New York: ‘Neiderlanden’ in Hans Bredow Institute (ed.) Mouton de Gruyter. Internationales Handbuch Medien 2002–2003. Hamburg: Nomos.

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14: Norway

HELGE ØSTBYE

NATIONAL PROFILE Norway is among the richest countries in the world (GNP per capita). Nowadays 6 per Norway is a medium-size European country cent of employment is in the primary sector (325,000 km2, excluding the Arctic islands of and less than 20 per cent in the secondary Spitzbergen; larger than Italy, smaller than sector. Norway has a mixed economy where Spain) with a small population (4.5 million). private capitalism is combined with a few Seventy-five per cent of the population live in nationalized industries, and a lot of public conurbations with more than 2,000 inhabi- regulations in the economic sphere. Dis- tants. High mountains, deep fjords and valleys agreement on the proportion of public have divided the country into a lot of separate versus private spending is one of the major communities with a strong local identity. dimensions in politics. There is one old ethnic minority, the Sámi The largest political party, the Labour population, mainly in northern Norway. Sámi Party (Arbeiderpartiet), is a social democratic has been recognized as an official language in party of the Northern European type. Labour certain areas. Recent immigration has been was in government almost continuously relatively limited: 250,000 people living in from 1936 until 1965, most of the time with Norway were born in a foreign country. More a majority in the parliament. Since 1965 than half of these were born in Europe. Labour has been in and out of power several During the union with Denmark from 1400 times. There are three parties to the left of to 1814 Oslo became the cultural, political Labour, but only one of them, the Left and commercial centre. Nationalist opposi- Socialists (Sosialistisk Venstreparti), is repre- tion against the union with Sweden sented in the parliament. There are five (1814-1905) drew much of its strength from non-socialist parties. The Conservative Party the periphery. One lasting outcome of this (Høyre) is the largest. Important changes in periphery protest is two official languages: media structure took place after the forma- Bokmål (literary Norwegian), based on the tion of a Conservative minority government dialect of the upper class in Oslo and strongly after the election of 1981. The basis of the influenced by Danish, and Nynorsk (new government was broadened in 1983, when Norwegian), which is based on country the Christian People’s Party (Kristelig dialects from the western parts of Norway (see Folkeparti) and the Centre Party (Senterpartiet) Haugen, 1966). Bokmål is now used by 80–90 joined. The Christian People’s Party used to per cent of the population as their written lan- represent a fundamentalist, Lutheran type guage. Norwegians will usually understand of Christianity, but it has gradually changed spoken and written Swedish and Danish. into a more European type of Christian English is widely understood. For more than Democratic party. The Centre Party is an 150 years the literacy level has been very high. agrarian party. The Liberal party (Venstre) Protest from the periphery is still an has a glorious past, but is now struggling important political factor. In two referen- to gain representation in the parliament. dums (1972 and 1994) the people have voted The Progressive Party (Fremskrittspartiet) against membership of the European Union. represents right-wing politics: anti-taxation, Norwegian legislation is, however, to a large anti-bureaucracy and anti-immigration extent adjusted to European standards. protest, with substantial support among the 3103-Ch-14.qxd 11/13/03 12:20 PM Page 158

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population. Following the general election approximately 220, of which sixty five are in 2001 there is a minority non-socialist dailies (six or seven issues per week). There government, dependent on support from are two national popular papers, VG and the Progressive Party. Dagbladet. The national level also includes a handful of national ‘opinion’ newspapers and some weeklies, and accounts altogether for a quarter of the national circulation. STRUCTURE AND OWNERSHIP Four or five regional papers account for another sixth, and the local papers a little Political and cultural dependence on more than 50 per cent. Denmark until 1814 delayed the develop- Since World War II there have been several ment of Norwegian book printing and news- distinct trends in the newspaper structure: papers. The first newspapers emerged in the (1) monopolization of local newspaper mar- 1760s, the first daily paper in 1819. The con- kets; (2) the foundation of new newspapers stitution of 1814 abandoned advance cen- in places with no previous paper; (3) the sorship for the print media and granted the establishment of a national popular press population a certain degree of freedom of from 1965 onwards; (4) depoliticization, in expression. the sense that direct links between parties and newspapers have disappeared since the early 1970s; and (5) concentration of owner- The print media ship (Ottosen et al., 2002). In order to halt or slow down the local The newspaper press concentration in ownership, a system of During the period from 1860 to 1920 press subsidies was introduced in 1969. Most Norway developed a geographically and of the press and other print media are politically scattered newspaper system. Most organized in private stock companies. Some towns and cities used to have three or four newspapers and publishing houses have a papers, each representing one party. very limited number of stockholders. Today the Norwegian press has a strong Ownership of the press has traditionally position, compared with most other been local, and very few owners used to con- European countries. No other country has a trol more than one paper. This changed higher level of newspaper sales per capita during the 1980s, and there is now strong (approximately 600 daily copies per 1,000 concentration of ownership. There are three inhabitants) (de Bens and Østbye, 1998). In major groups in the newspaper business: contrast to most of the press in other devel- Schibsted, Orkla and A-pressen. oped countries, Norwegian newspapers have The largest newspaper owner is the not suffered a decline in their total circula- Schibsted group. In 1860 Amandus Schibsted tion. Until 1990 there was a general increase founded Aftenposten. During most of the in circulation. Since then, there have been twentieth century Aftenposten was the some ups and downs, but no systematic largest-selling newspaper in Norway, with downward trend. But the situation of the two editions a day (morning and afternoon). newspapers is unstable. The popular newspa- In 1966 the Schibsted group bought VG, then pers have lost some of their readers, perhaps a small evening paper with serious economic due to increased competition from other difficulties and a circulation of less than media (television, the Internet, etc.). For the 30,000. The new owners developed VG into rest of the press, the main threat comes from a modern tabloid, and had great success in changes in advertising volumes. Until the the market. VG’s circulation exceeded arrival of commercial television (gradually Aftenposten’s in 1981. The daily circulation from 1988), the advertising market mainly in 1994 was almost 390,000, which means consisted of newspapers and magazines. This that more than one in three Norwegians situation has changed, especially for national read this newspaper on an average day. The advertising. The newspapers have become Schibsted group also owns a minority of the more vulnerable to changes in the general shares in four of the largest regional news- economy. papers (Fædrelandsvennen, Bergens Tidende, One explanation of the position of the Stavanger Aftenblad and Adresseavisen) and a newspapers is that there are strong news- regional newspaper chain (Harstad Tidende). papers at three different geographical levels: If we include the regional newspapers, the national, regional and local (Gustafsson, group accounts for more than half the total 1996). The number of newspapers is Norwegian newspaper circulation and 158 3103-Ch-14.qxd 11/13/03 12:20 PM Page 159

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Aftenposten and VG alone account for almost and Aller, established Norwegian subsidiaries 40 per cent of the newsprint. and separate Norwegian editions of the A more recent development in the indus- magazines were distributed. In the 1930s and try structure is a chain of dominant local 1940s the general weeklies were very popu- newspapers with a non-socialist history. The lar, and the publishers also developed more formation of the chain started in the first specialized magazines, first for women, then half of the 1980s. The owner is Orkla, a for- for men. In the first post-war years, news mer mining company, now one of Norway’s magazines and cartoons were introduced. largest financial and manufacturing compa- One of the big successes was Hjemmet’s dis- nies (based on the production of chemicals tribution of publications from Walt Disney. and consumer goods). Orkla Media owns From the 1960s there has been a reduction in more than twenty newspapers with 11 per the number of publishers. The two Danish cent of the national circulation. companies and one Norwegian, Ernst G. Both Schibsted and Orkla have expanded in Mortensen, survived, while most others dis- other Nordic countries and in Eastern Europe. appeared. Ernst G. Mortensen was bought by Schibsted owns two of Sweden’s lagest papers, Orkla in the early 1980s. Aftonbladet and Svenska Dagbladet. In the In 1978 Aller established a new magazine autumn of 2000 Orkla bought Denmark’s with a new type of content, focusing almost largest newspaper group, Berlingske. exclusively on the private lives of famous A lot of the newspapers that had been people, mostly royals and people from the established by the labour movement sur- entertainment industry. This magazine vived the depoliticization of the press. They immediately became a great success, and is were owned mainly by local trade unions, now the best-selling publication on the but papers co-operated in taking some edito- Norwegian market, with a weekly sale of rial material from a separate news agency, in more than 400,000 copies. the advertising market and when purchasing In this entertainment-oriented market, new equipment. In 1992 thirty two out of there have been established many new mag- approximately thirty five previous labour azines. The traditional general weekly maga- newspapers merged into one holding com- zines used to sell between 300,000 and pany. During the first few years, the labour 400,000 copies around 1980, but sales have movement became the main shareholders, dropped considerably (only Hjemmet is now but gradually financial investors and media above 200,000). New, more specialized mag- companies have become major shareholders. azines have taken over. But the publishing Today, A-pressen controls between forty and houses have been able to maintain their fifty newspapers with almost 20 per cent of dominance. In 1992 Hjemmet and Ernst G. the national circulation. Mortensen merged, and the new company is Very few middle-ranking or large called Hjemmet-Mortensen. This meant that Norwegian newspapers are independent of two companies – the Aller group (Danish) the three major owners. Until the 1980s the and Hjemmet-Mortensen (50 per cent newspaper industry was territory for ideal- Egmont, 50 per cent Orkla) – completely ists with a message (political or ideological). dominate this sector. A major actor in this During the post-war period a lot of the new, specialized magazine market is the papers made a loss most years. Some news- Swedish multimedia company Bonnier. papers, however, made a substantial profit, but most of the surplus was reinvested in the Book publishing paper. Recent changes of ownership have The political ties between Denmark and led to an increased focus on profit in some Norway had been cut in 1814, but a com- parts of the industry. Newspapers have mon language tied Norway closely to become businesses. Denmark in all matters that were linked with literary culture. This cultural depen- The periodical and magazine press dence lasted until 1925 when the A distinct form of popular magazine Norwegian division of the Danish publish- emerged in the late nineteenth century, ing house Gyldendal (including the rights to weekly magazines with a general content key authors like Ibsen and Hamsun) was aimed at the whole family. Danish magazines bought by Norwegians and established as a were introduced on to the Norwegian Norwegian book publisher. market in these early days (at the time writ- Along with two well established publishing ten Danish and written Norwegian was iden- houses (Aschehoug and Cappelen) Gyldendal tical), and two Danish companies, Hjemmet became the leading book publisher. In 1961 159 3103-Ch-14.qxd 11/13/03 12:20 PM Page 160

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Aschehoug and Gyldendal started the first Norwegian territory. The main aim of the major book club in Norway. The Swedish broadcasting company for the next thirty publisher and multimedia giant Bonnier years was to extend the network to cover the bought Cappelen in 1987. The fourth largest whole country. World War II represented a book publishing house is Egmont (which is setback. Some transmitters were destroyed, also the owner of Hjemmet, the magazine and from 1941 only members of the Nazi publisher). One Swedish and one Danish party were allowed to keep their radio multimedia conglomerate own two of receivers. From 1945 the dissemination of Norway’s four largest publishing houses. radio was very fast, and the 1950s were the There is strong concentration of ownership golden age of radio. in book publishing. The larger publishing NRK’s monopoly from 1933 included the houses have expanded, partly by buying ‘transmission of pictures’, but Norway was up smaller publishers. Gyldendal and among the last countries in Europe to intro- Aschehoug compete in some areas, but they duce television. The official opening took also run a lot of joint operations (book clubs, place in 1960. Since 1981 the government one publishing house, book distribution, has licensed local radio and television sta- etc.). Together, they control approximately tions outside the NRK. From 1992 commer- 50 per cent of turnover in the book trade. In cial channels have competed with the NRK several contexts they are regarded as one for the national audience. group. The four largest publishing houses (or three, if Gyldendal and Aschehoug are seen Television as one group) completely dominate the book The broadcasting monopoly of NRK lasted for trade. In the late 1990s both Gyldendal and almost fifty years. 1981 was the year when a Aschehoug gained control over a lot of book- process of change started an extensive trans- shops, and the traditional separation of formation of the broadcasting system. At the ownership between book publishing and start of this process there existed only one bookselling is vanishing. radio channel (a second was under construc- The book trade is regarded as important tion and officially opened in 1984) and only for Norwegian culture. In two ways the state one television channel. The changes were has decided to support the industry. Since linked with a change in the political climate, 1965 books have been exempted from value- a Conservative minority government starting added tax (VAT). In the same year the the changes in 1981. From the start neither ‘Purchasing Programme for Contemporary community radio nor local television was Fiction’ was established. This means that a allowed to carry commercials, but no one certain number of copies of all new could come up with alternative forms of Norwegian fiction books (1,000 copies of financing, and the government came under books for adults and 1,550 copies of books pressure to allow advertising. for children and adolescents) are bought Licences for local television distributed via with government money and the books are cable were granted to six communities in distributed to libraries all over the country. 1981. In contrast to community radio, local In principle, all books above a certain liter- television has never become a success. ary quality qualify for this purchase. Terrestrial distribution was allowed in 1985 and advertising from 1992, but neither has The electronic (audio-visual) media been sufficient to provide a solid economic basis for this kind of service. In the late Norwegian newspapers reported clear recep- 1990s the whole system of licences for local tion of Dame Nellie Melba’s famous radio television was changed. Norway was divided concert from Chelmsford in 1920. But it was into twenty seven areas, each with one another five years before the first permanent operator. The local companies were allowed Norwegian radio station got started. Following to co-operate with a national satellite chan- a round of discussions, the government nel, TVNorge (see below). The satellite chan- chose a system where private companies nel is transmitted via terrestrial transmitters, were given licences for regional monopolies. and the local programmes are transmitted in There were strict and detailed guidelines for local windows in the national programme. the programmes. In 1933 this system was In 1981–2 some local community trans- replaced by a state-owned national public mitters were licensed to relay programmes service company: Norsk rikskringkasting, from satellites. From 1988 the regulations in the NRK. The Broadcasting Act of 1933 gave this field have been relaxed and cable net- NRK a monopoly of broadcasting from works now typically provide a list of around 160 3103-Ch-14.qxd 11/13/03 12:20 PM Page 161

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100 channels which subscribers can choose established a joint company. A third party in from. Almost 40 per cent of the population the preparations for digitalization has been are linked to cable networks. Two important Telenor, the old telecommunications mono- players have divided the cable network poly. Telenor has bought from NRK the market evenly: Telenor Avidi, which is a sub- physical infrastructure for terrestrial trans- sidiary of the old telecommunications mission, links, etc. In addition, Telenor has monopoly (Telenor), and the international been an important operator in the satellite operator UPC. market since the early 1980s. In recent years The introduction of international tele- Telenor has been accused of preparing to vision channels like Sky Channel created a establish itself as a broadcaster, with pro- lot of debate but these channels never got grammes in competition with NRK and TV-2. high audience ratings, except amongst schoolchildren. In 1988 the Swedish com- Radio pany Kinnevik launched a commercial pan- As noted above, in 1981 there was only Scandinavian channel distributed via one radio channel in Norway, another satellite. The channel was called TV-3. The opening in 1984. After 1981, in several Ministry of Culture tried to prevent TV-3 stages, the number of community radio from being distributed via cable networks, licences increased. From 1988 community but failed. Later TV-3 was divided into sepa- radio was made permanent and commer- rate channels for Denmark, Sweden and cials were allowed. This has led to the pro- Norway. In the same year two commercial fessionalization and commercialization of Norwegian channels were established. They local radio, and to a reduction in the num- too distributed their programmes via satel- ber of operators. Radio 1 is a chain of local lite. After a short competitive period, the radio stations in larger cities. The magazine two channels merged. TVNorge has survived publisher Aller and the American Clear since 1988 as the only satellite channel with Channel Communications jointly own the a Norwegian origin. Scandinavian Broad- Radio 1 chain. These two owners also casting System, which is American-owned, co-operate in preparations for a national has a 51 per cent stake in TVNorge. It is this network of digital radio. satellite channel which co-operates with In 1993 there was a total change in the local television stations. From the late national radio services. The NRK was allowed 1990s, TVNorge has an agreement with to open a third channel, and NRK’s radio twenty one out of the twenty six operators channels became more specialized: P-1 is the of local television. general channel with a broad range of pro- NRK’s monopoly of national television grammes, including regional programmes with terrestrial distribution ended with from seventeen districts. P-2 specializes in the establishment of TV-2 in 1992. Each of culture and in-depth news. P-3 (‘Petre’) has three companies with a strong position in young people as its targeted audience. In other media – Schibsted (newspapers, etc.), addition to the three channels from the NRK, A-pressen (newspapers) and the Danish a fourth channel, P-4, also started in the Egmont (magazines, etc.) – owns 33 per cent autumn of 1993. P-4 is a privately owned of the shares in TV-2. TV-2 owns 49 per cent commercial radio channel, which attracts of TVNorge. most of its audience in the age group NRK has experienced a reduction in its between twenty and forty. Most of the con- market share since the mid-1990s. TV-2 tent is music. quickly reached a market share of approxi- On average, Norwegians listen to radio mately 30 per cent, but has not been able to approximately two hours twenty minutes increase its share by more than one or two per day. NRK’s market share is close to 60 per percentage points since 1995. TVNorge and cent (with P-1 alone accounting for 40–5 per TV-3 have gradually increased their market cent of the total), P-4 25–30 per cent share, and they are both close to 10 per cent, and community radio 10–15 per cent (data with TVNorge one or two points ahead of from different sources, collected from the TV-3. Since 1995 NRK has dropped from 45 MedieNorge database). per cent to 40 per cent, despite the launch- ing of NRK-2 in 1996. NRK-1 is still larger than TV-2. Film and video Both NRK and TV-2 have for several years The first movies reached Norway less than planned a digital future. In this area the a year after the Lumière brothers’ first two companies co-operate, and they have showing of film in Paris in 1895. Only a few 161 3103-Ch-14.qxd 11/13/03 12:20 PM Page 162

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years later, the first moving pictures were use. There has been a steady increase in the produced in Norway. From 1913 new legisla- number of PC owners and Internet users. tion introduced advance censorship for Especially for the Internet, the autumn of movies. A second feature of the Cinema Act 1999 meant a breakthrough. On an average was that it authorized the municipal coun- day in the first months of 2002 more than cils to license cinemas in their area. This led one-third of the population (thirteen years to a system where the municipalities very of age or over) used the Internet, and almost often took over as owners of the cinemas. two-thirds had been online during the last The system of public ownership of cinemas month (data from Norsk Gallup, via still exists, and is unique to Norway. The MedieNorge). Of the different services on municipal cinemas produce 85–90 per cent the Internet, e-mail, file transfer, chat of the total ticket revenue, and until the year groups and games are examples of interper- 2000 this percentage has been increasing as sonal communication. The World Wide some small, private cinemas have been Web is a provider of mass communication. closed down. A trend towards privatization Very few major actors are able to make has started. Some of the major municipal a profit from their Internet activities. cinema companies (for example in Oslo and Advertising is still divided mostly between Bergen) have been transformed into joint- the print media and the traditional elec- stock companies with private owners. In tronic media. Shopping on the Internet has addition, some Scandinavian cine-chains so far not become a success, despite the level have established cinemas in Norway. of Internet use in the population. The Ministry of Culture subsidizes film pro- Norsk Gallup (Gallup WebMeasure) mea- duction. During the 1990s the number of sures the use of a majority of the major movies produced in Norway fluctuated commercial Norwegian Web sites. The news- between ten and twenty. The dominant pro- paper VG tops the ranking of the sites used, duction company was the state-subsidized measured by the number of individual visi- Norsk film. In recent years, private investment tors in one month (March 2002), with 1.7 has become more important in film produc- million users. All major newspapers and tion. In 2002 Norsk film was closed down and radio and television channels provide all production companies can now compete Internet news services. VG and the other for production support from the state. news providers are examples of information The municipal cinemas established an providers on the Net. Two other types of import and distribution agency for movies. sites are also high up on the list: search This agency has for a long time been the engines and information gateways. largest in Norway (at least with regard to the Ownership of the most frequently used number of imported movies), but its impor- Norwegian Web sites indicates that well tance has been slowly declining. Some established media owners dominate the new importing agencies are subsidiaries of the media Internet. Two actors are particularly large American production companies, important: Schibsted (the newspaper and others are owned by Scandinavian multi- TV-2 owner) and Telenor, the old telephone media companies (like Schibsted, Egmont monopoly. One of the major information and Bonnier). In general, the Norwegian sites, Nettavisen, started as an independent film and cinema industry has become more newspaper on the Net (no paper edition). oriented towards competition and profit. Nettavisen has been bought by Lycos, which The same commercial actors dominate the is owned by the Spanish Telefónica. Some video sector: Scandinavian firms (Egmont, other telephone companies also provide Sandrew Metronome, Svensk Filmindustri) popular Internet sites. import and distribute videos for hire and Schibsted and Telenor show one impor- sale in competition with a few international tant feature of the process of convergence. actors (like Buena Vista and CIC). All media – new and old – produce their messages in digital form. Only the final The Internet and stages in the production of newspapers, related on-line media books and magazines – and, for the time being, transmission of radio and television The development of the Internet in Norway via terrestrial networks – draw on tradi- is similar to the same process in other tional production and distribution meth- industrialized countries. The diffusion ods. But the information in digital form can process started in academic institutions, but be distributed through several different in 1996 the net was opened for commercial channels. 162 3103-Ch-14.qxd 11/13/03 12:20 PM Page 163

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One consequence of the convergence is Media politics in Norway is not a well that the production of media content can be integrated area, guided by overall princi- easily separated by putting together a ‘pack- ples. Most regulations have been ad hoc, age’, which can then be sold to the audi- dealing with topical issues. For a long time ence. And the ‘package’ can reach the different Ministries dealt with media ques- audience via different channels. The radio tions. From 1982 a new Ministry of Culture programme can reach the audience from ter- gradually became responsible for most restrial transmitters, via the Internet or via questions relating to the media. But the cable television. Telenor has a very strong convergence process has again divided the position in this last stage of this process. responsibility between the Ministry of Telenor controls several channels: transmit- Culture and the Ministry of Transport and ters; the telephone network, which is Communications. upgraded to ISDN and ADSL standards in order to provide high-speed Internet con- The press nections; and it owns one of the two nation- wide cable operators. Most media are regulated through specific legislation, like the Broadcasting Act or the Cinema and Video Act. There is no press law POLITICS, POLICY, or similar provision aiming specifically at regulating the print media. One of the few LAW AND REGULATION parts of the legislation that is specific to the press is a demand that a paper should have Two – partly conflicting – basic principles an editor who is responsible for the content. have been imperative for Norwegian media More general regulation protects state politics: on the one hand a desire to use the secrets, prohibits libel and the publication mass media to strengthen democracy, of some forms of racial discrimination, improve the dissemination of culture and pornography, etc. This legislation usually important information, and function as a limits the individual’s freedom of expression tool for extended freedom of expression. On when it threatens the integrity of other the other hand, the mass media are regularly people or the basic interests of the nation. seen as a threat to the stability of society by One important piece of legislation has been bringing unwanted messages. A system of in favour of the media: the Freedom of press subsidies is an indication of the first Information Act (Offentlighetsloven) was principle. Advance censorship of movies is adopted in 1970. It says that all documents an example of the second. The public in the administration are public unless service monopoly from 1933 to 1981 can be otherwise decided with reference to the law. put into both categories. And the exemptions from the general The trend towards more liberal free- principle are relatively few and specific. market economic politics from the late The state has left it to the press’s own 1970s reached Norway in the early 1980s. self-regulation to work out and enforce a This led to pressure to deal with the media professional code of practice for the news- in the same way as any industrial sector. But papers and the journalists. Organizations even in the last two decades of the twentieth representing most other news media have century, public service broadcasting and also signed this code of practice. press subsidies remained two important In the post-war period a lot of news- pillars of Norwegian media politics. In both papers were forced to close (see the para- these areas, a political right–left cleavage is graph about monopolization above). This clearly visible. For long the Labour Party, the threatened both political balance and local Left Socialists and the Centre Party sup- competition. In 1968 representatives of the ported the broadcasting monopoly, and industry turned to the government for sub- these parties have also defended press subsi- sidies. Labour and the Centre Parties dies. Both these policies have been under backed the proposition, while the attack from the Progressive Party and the Conservative Party opposed it. Newspapers Conservatives. were already exempt from VAT, and since Two new and general issues emerged 1969 a system of press subsidies has been in during the 1990s: an increase in questions operation. The most important form of related to freedom of expression and concern subsidy is called ‘production support’. about concentration of ownership. These will Production support is directed towards be discussed at the end of this section. papers with the weakest structural position 163 3103-Ch-14.qxd 11/13/03 12:20 PM Page 164

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in the market (the smallest papers and cent) and per twenty four-hour period (15 papers with a minority position in the local per cent). One problem with this legisla- market – No. 2 papers), but with set rules so tion is that it applies only to channels that there should be no fear of state inter- transmitted from Norway, and not to chan- ference with editorial policies. nels like TV-3, which are beamed at In total, the subsidies account for less than Norway but have their uplink abroad. This 3 per cent of the industry’s total income, way, there is uneven competition between and they have not been sufficient to prevent the almost unregulated TV-3 and the the monopolization of local markets, only strictly regulated conditions of TV-2 and to slow down the process. Since 1981 the TVNorge. Conservative Party has proposed a reduction NRK has to some extent been squeezed by in the subsidies or to abolish the whole developments in the broadcasting sector. system, but other parties have been in NRK’s raison d’être as a state-owned broadcast- favour of the press subsidies. The future of ing company financed by a licence fee lies in the press subsidies is a topical issue in media fulfilling public service obligations in a way politics in 2002. that satisfies a political majority in the parlia- ment. But the licence fee is under threat. If The electronic media the audience drops too low, it will be difficult to defend the licence fee. But if NRK, on the Radio and television are primarily regulated other hand, competes and provides the same according to the Broadcasting Act of 1992. mix of programmes as its commercially It gives NRK a permanent licence to broad- financed competitors, it is difficult to argue cast and specifies that everyone else who in favour of NRK’s special position. NRK’s plans to broadcast from Norwegian terri- attempt to handle this dilemma has been to tory must have a licence. The regulations change the scheduling and to establish a also include transmission via cable as long second television channel (NRK-2). The as the signals are aimed at a general public. schedule has become more repetitive from Norway is divided into 150 areas for local day to day and from week to week. Program- radio and twenty six regions for local tele- mes expected to have low audience rating are vision. For local radio, several licensees can not being transmitted during prime time operate in the same area, sharing one fre- (Syvertsen, 1997). Much attention is paid to quency or operating on different frequencies the schedule for Fridays and Saturdays, when (two or three in a handful of areas, six in NRK has a particularly strong position. NRK- Oslo). The Mass Media Authority issues 2 is used for some programmes that are licences on behalf of the Ministry of Culture. important in a public service perspective, but In addition to the NRK, only one company with low audience ratings. has been allotted a licence for national tele- A new director general of the NRK was vision. TV-2 got a ten-year licence which in appointed in 2001. He had previously been 2001 was extended until the end of 2009. A a member of parliament from the similar licence was issued for a private, com- Conservative Party. All his predecessors mercial, nationwide radio channel, P-4, in since the position was created in 1948 had 1992 (P-4 commenced its transmissions in had links with the Labour Party. 1993). A topical issue in 2002 is whether to continue with one commercial radio chan- The Internet and nel or issue a second, nationwide licence. related on-line media Until 1988 a coalition of the political left, including the Centre Party, blocked all There have been very few attempts to regu- attempts to open radio and television up to late the Internet-based media. General rules advertising. Then advertising was allowed regarding pornography, etc., apply to infor- on local radio, and from 1992 in all forms mation on the Web, but regulation is diffi- of broadcasting outside the NRK. The terms cult to enforce upon media with such an are, however, quite restrictive. There is a international orientation as the Web. There ban on advertising for several products, has been a lot of debate about what editorial including political and religious organiza- responsibility the owners of Internet sites tions. There is also a general ban on adver- have or should have. tising aimed at children and young people. Several governments, of different parties, Commercials shall, in general, not inter- have been criticized for not being able to rupt programmes, and there are limits to present plans for the future development of the amount of advertising per hour (20 per the Internet and Net-based services. The 164 3103-Ch-14.qxd 11/13/03 12:20 PM Page 165

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state controls two important actors in the (newspapers, radio and television) and that process of adapting to the new technology: it does not take into consideration multi- Telenor and the NRK. But the state has left it media concentration. to these two institutions to develop their Regarding freedom of expression, the own strategies, and has, neither with regard Norwegian constitution was adopted in to policy nor with regard to finance, 1814. Article 100, which covers freedom of been able to support or direct these two expression, has not been changed. There institutions. are two major problems with this article. First of all, the most specific parts cover New issues: concentration only the print media (not surprisingly, con- of ownership and freedom sidering that it was formulated in 1814, but of expression the interpretation of ‘freedom to print’ has been by the letter), and the general parts Previous sections of this chapter have shown can be undermined by ordinary the high level of concentration of ownership legislation. in the press and other print media. In radio In several cases newspapers have been and television the state-controlled NRK is a heavily fined for libel, etc., by the courts dominant actor, and concentration in the because some minor aspect of an article private sector is high. But more important, is has been incorrect. Some of these cases the high level of cross-ownership. Schibsted, have been brought to the European Court Egmont, the Norwegian state and a handful of Human Rights for breaching the of others are important actors in several European Convention on the Protection media (see statistics). of Human Rights and Fundamental Concentration of ownership in the media Freedoms. The European Court has over- has been regarded as a potential threat to turned several decisions of the Norwegian freedom of expression and democracy (St courts. meld. No. 32 1992–93). In 1997 the parlia- This is one of the reasons why the gov- ment passed the Media Ownership Act, ernment in 1996 appointed a Commission which regulates the acquisition of newspaper on Freedom of Expression. Three years of and broadcasting enterprises. From 1999 the work resulted in a document with a broad Norwegian Media Ownership Authority was discussion of the principles of freedom of established as an independent public body expression, and proposed amendments to supervising media ownership for the protec- Article 100 (NOU, 1999: 27). If this change tion of freedom of expression and media in the constitution is passed, the legislation pluralism. The Act has probably prevented will be more in line with international oblig- the Schibsted group from trying to take over ations. The proposed new Article 100 will be some of the regional newspapers, but other- more general and not linked with specific wise the Act and the Authority have not media. Access to public documents will be proved efficient in preventing the contin- granted under the constitution, and the ued concentration of ownership in the authorities of the state will have an obliga- media. The main problems with the legisla- tion ‘to create conditions enabling an open tion are that it covers only a few media and informed public debate’.

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STATISTICS

Population, 1998 4,445,000 Number of households, 1998 2,050,000 Movie admissions, 2000 11,586,000 Books published (source: National Library) First editions 3,948 Translations 1,588 Total 4,784 Main daily newspapers, 2000

Print media Newspaper Location Type Circulation Major ownera VG (Verdens Gang) Oslo Popular, national 375,983 Schibsted Aftenposten Oslo Regional/national 276,429 Schibsted Aftenposten Aften Oslo Local/regional 175,783 Schibsted Dagbladet Oslo Popular, national 192,555 (Orkla) Dagens Næringsliv Oslo Financial, national 71,364

Bergens Tidende Bergen Regional 91,956 (Schibsted, Orkla) Adresseavisen Trondheim Regional 88,885 (Schibsted, Orkla) Stavanger Aftenblad Stavanger Regional 73,221 (Schibsted) Fædrelandsvennen Kristiansand Regional 46,185 Orkla Drammens Tidende Drammen Local/regional 46,70 Orkla aIndicates major owner with less than 50% of the shares.

Broadcast Main television channels, 2000

media Type of Penetration Market Channel content Distributiona Financingb (%) share (%) Owner

NRK-1 General (PSB) T Lic. 98 38 NRK (Public) NRK-2 Supplement T Lic. 78 3 NRK (Public) (PSB) TV-2 General T Com. 95 32 Schibsted, Orkla, A- pressen TVNorge General T Com. 83 10 SBS, TV-2 TV3 Entertainment T/C/S Com. 58 8 Kinnevik 26 local Local news C/S Com. n.a. n.a. Orkla, etc. A-pressen, etc. (TV Norge) SVT1 General C/S Lic. 43 n.a. SVT + 2 (Swedish) (Swedish, public) TV-4 General C/S Com. 35 n.a. Kinnevik (Swedish) Eurosport Sports C/S Com./Sub. 44 n.a. CNN News C/S Com./Sub. 41 n.a. Discovery Documentary C/S Com./Sub. 38 n.a. MTV Music C/S Com./Sub. 37 n.a. a T Terrestrial; C Cable; S Satellite. b Lic. Licence fee; Com. Commercials; Sub. Subscription fee n.a. Figures not available. Source: Carlsson and Harrie (2001).

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Terrestrial radio channels, 2000 Channel Financing Market share(%) Owner NRK P-1 Licence feea 47 NRK (Public) NRK P-2 Licence feea 4 NRK (Public) NRK PeTre Licence feea 8 NRK (Public) P-4 Commercials 28 Kinnevik + others 274 local Commercials + 12 Aller, Orkla, radio stations private subsidies Schibsted + others Channels with satellite, cable or Internet distribution are also available, but do not play an important role. a There is no licence fee for radio. NRK’s radio channels are financed by the television licence fee. Percentage of households (2000) reached by: Satellite 21 Cable 39 Terrestrial pay-television 0 Percentage of households (2000) with: VCR 79 Satellite receiver 21 DVD player n.a.

Electronic Percentage of households with: Digital television reception. No exact data available, but probably most cable television sub- media scribers and families with their own satellite antenna are equipped for digital reception (2002) Access to personal computer (2000) 71 Mobile phones, 2001 (Source: Norwegian PTT Authority) 83

Advertising Newspapers 40.4 spend, 2001 Magazines 13.5 Television 38.8 (%) Radio 4.2 Cinemas 1.1 Billboards 2.0 Source: MedieNorge, from Nielsen.

Ownership Main media companies: Owner Country Newspapers Magazines Book Radio TV Film/video Internet

Schibsted Norway ++ + + ++ ++ ++ Norwegian Norway state: +++ ++ Telenor ++ ++ + + NRKNorway ++ ++ + A-pressen Norway ++ ++ + + OrklaSweden +++++ Bonnier Denmark ++ ++ ++ Egmont Denmark ++ ++ Aller Norway ++ Aschehoug Norway ++ Gyldendal Sweden ++ + Kinnevik (MTG) + Important actor. ++Very important actor (among the largest). Source: based partly on Roppen (2000) and Østbye (2000).

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REFERENCES NOU (1999) Ytringsfrihed bdr finde Sted (report of the Government Commission on Freedom of Expression). Oslo: NOU. Bens, Els de and Østbye, Helge (1998) ‘Changes in Ottosen, Rune, Rössland, Lars Arve and Östbye, the European newspaper market’ in Denis Helge (2002) Norsk pressehistorie. Oslo: Samlaget. McQuail and Karen Siune (eds) Media Policy: Roppen, Johann (2000) ‘Medieeigarskap’ in Nina Convergence, Concentration and Commerce. London: Bjdmstad and Dag Grdnnestad (eds) MedieNorge Sage. 1999. Bergen: Fagbokforlaget. Carlsson, Ulla, and Harrie, Eva, eds (2001) Media St meld. nr 32 (1992–93) Media i tida (White Paper Trends 2001 in Denmark, Finland, Iceland, Norway on the media). and Sweden. Göteborg: Nordicom. Syvertsen, Trine (1997) Den store TV-krigen: Norsk all- Gustafsson, Karl Erik (1996) Dagspressen i Norden: mennfjernsyn 1988–1996. Bergen: Fagbokforlaget. struktur och ekonomi. Lund: Studentlitteratur. Østbye, Helge (2000) Om eierforhold i norske media. Haugen, Einar (1966) Language Conflict and Bergen: Department of Media Studies, University Language Planning. Cambridge MA: Harvard of Bergen. University Press.

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15: Poland

KAROL JAKUBOWICZ

NATIONAL PROFILE cable television and terrestrial television (for overviews of this process see, e.g., Filas, 1995; Poland is a country of nearly 39 million Jarowiecki, 1996; Chorazki, 1999). people (some 12.5 million households) The state has almost completely with- undergoing rapid systemic transformation drawn from the media. It retains ownership after the collapse of communism. As a of Ruch, a press distribution agency, and a largely ethnically homogeneous nation, controlling interest in the Polish Press Poland has been spared the ethnic conflicts Agency, pending their complete privatiza- and war that have affected post-communist tion. Meanwhile government control over transformation in so many other countries. them has not provoked significant com- Regarded as one of the more successful cases plaints about their use for political ends. of transformation, and as an EU candidate country in a stage of far-reaching alignment with the Community acquis, it shares all the STRUCTURE AND OWNERSHIP features of post-communism (Schöpflin, 1995) with a relatively advanced case of mimetic development. It has revived and The print media reinstated, or copied and transplanted, the political, legal and organizational frame- The newspaper press works of democracy and the market eco- Changes in the number of newspapers and nomy. It now has to wait for them to take periodicals published since 1989 tell an inter- root, and for the social, cultural and axiologi- esting story. The number of newspapers grew cal frameworks that give meaning to those from fifty three in 1989 to eighty in 1992, institutions and ensure their proper func- only to fall to forty nine in 1999. Meanwhile tioning to emerge in full – a process certain the number of weeklies grew from 239 in to take a long time. Nevertheless, it is one of 1989 to 418 in 1999; that of fortnightlies a relatively small number of post-communist from 130 to 276, that of monthlies from 678 countries where economic reform has led to to 1,849, and that of bi-monthlies and quar- the development of a functioning market terlies from 748 to 1,450 in the same period economy (World Bank, 2002). (Central Statistical Office, 2001). The number Since 1989 the Polish media have under- of sub-local newspapers has grown from gone a stormy process of change. The old about 100 in 1988 to as many as 1,800 in centralized media system has been disman- 2000. These include newspapers directed at tled, the print media have been privatized inhabitants of one city quarter, one town, one and a broadcasting system has been intro- county, one parish or one local association duced, composed, legally speaking, of public, (OBP, n.d.). commercial and civic sectors. Change was What was originally a politically inspired mostly politically driven to begin with, and publishing boom (every new party and since then has increasingly been market- organization wanted its own newspaper) driven. That was assisted by large-scale foreign was soon brought down to size by the investment, especially in the print media, market, which killed off virtually all party 3103-Ch-15.qxd 11/13/03 12:21 PM Page 170

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newspapers, responded to demand for (i.e. 47.6 per cent of the total) were owned previously underdeveloped types of news- wholly or partly by foreign interests. Among papers (regional, local and specialized ones) the fifty four regional and local newspapers, and showed clearly how few national gen- twenty were brought out by foreign-owned eral-interest dailies can survive fierce compe- publishers: Polskapresse, of Germany (eleven tition. The number of such dailies fell from titles, many with local and sub-local editions) twelve to six, of which only three really and Orkla Media Polen (Norway) with nine count: the liberal Gazeta Wyborcza, the titles (and a majority shareholder in right-of-centre Rzeczpospolita and the tabloid Rzeczpospolita). Both have continued buying Super Express. There are also the Catholic. up local and sub-local newspapers. daily Nasz Dziennik, the conservative Zycie Probably the largest media conglomerate, and the social-democrat Trybuna. Other operating across both print and electronic national dailies are tailored to specialized media, is Agora (13 per cent of its stock is markets, dealing with the economy and held by Cox Enterprises, an American com- business (Puls Biznesu or Prawo i Gospodarka), pany), the publisher of Gazeta Wyborcza, the legal issues (Gazeta Prawna) or sport (Przeglad leading Polish daily, with its twelve thematic sportowy or Tempo). supplements and nineteen local sections. Between 1991 and 2000 sales of dailies fell Agora publishes thirteen magazines, owns by one-third, compared with 1988, while the three printing plants, owns or has interests in newspapers themselves grew from an average twenty four local radio stations around the of six to eight pages in 1989 to between sixty country and in an outdoor advertising com- and eighty. Local editions and supplements pany, and operates an on-line version of of both national and regional dailies have Gazeta Wyborcza, as well as an Internet portal. been developing, and Gazeta Wyborcza with Among other Polish publishers of impor- its eighteen local supplements (practically tance, mention must be made of Infor (which full-fledged newspapers in their own right) is brings out over forty magazines with legal the dominant force in the market. and business information for entrepreneurs); In 2001 there were are about twenty pub- Prószyn′ski i Spótka (publisher of a variety of lishers of daily newspapers in Poland. The periodicals), Wydawnictwo Sigma-Not (some top publishing company had a 24.5 per cent forty titles on construction, electronics, market share, the three top companies (Agora, power engineering, metallurgy, etc.), Murator Polskapresse, controlled by Neue Passauer (a number of magazines dealing with hous- Presse of Germany, and Orkla Media, a ing and the construction industry). Norwegian company) accounted for 63 per Similar media concentration processes are cent, and the top five for 82 per cent. unfolding also at the regional level. For exam- Little systematic research on media con- ple, Gtos Wielkopolski Oficyna Wydawnicza, centration is published in Poland. According the publisher of Gtos Wielkopolski, the leading to Andersen, there were twenty five cases of daily in Poznan′, western Poland, has shares in mergers and acquisitions in Polish broad- three radio stations and in a cable television casting in 2000 (compared with 383 in system, owns a national monthly magazine, Europe as a whole). The seventeen cases has an Internet company, and in addition whose value was revealed added up to owns a private university. ¤363.1 million, compared with ¤85.2 billion for the 154 European mergers and acquisi- Advertising tions of known value. In 2000 advertising spending amounted to Among ninety leading publishing houses US$ 1.5 billion to US$ 1.9 billion. The adver- analysed in late 1998, forty one were con- tising market is atypical in that television, trolled wholly or partly by foreign owners and not the press, is the main advertising (of these, fifteen had exclusively foreign medium. The 1990s have seen an explosion owners). Foreign investors involved in those of advertising, fuelled by the country’s fast ninety publishing houses come from Germany economic growth. According to Zenith (eight companies), Switzerland (four), Media, advertising spending grew by 60 per Holland (three companies), the United cent in 1996, compared with the year States (two), Italy (two), Norway (one) and before, 52 per cent in 1997, 51 per cent in France (three companies with shares in one 1998, 26 per cent in 1999 and 11.3 per cent publishing house). in 2000. In recent years, recession has had a In 1998, among the forty two publishers dampening effect on advertising, leading to of regional and local newspapers, twenty sizeable lay-offs in many media organizations,

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but there is no doubt as to the market’s pride of place in this market as the most ability to sustain a wide range of media. influential publications of their kind (in With per capita spending on advertising of August 2002 Wprost claimed sales of 2.6 US$ 45 per annum (in 2000), the advertising million, equalling 8.7 per cent of the market market still has a long way to go, given that for weeklies, with Polityka reportedly the figure then stood at US$ 279 in the accounting for 6.4 per cent and Newsweek United Kingdom, and at $ 492 in the United for 6.1 per cent). The former two, both long State. Nevertheless, given the fact that established, have had to be dramatically multinational companies are at the top of redesigned (in Polityka’s case from a broad- the table of advertising spending in Poland sheet into a full-colour, richly illustrated and that international advertising agencies magazine) to keep pace with the changing (Leo Burnett, McCann-Erickson, Ogilvy & demands of their readers. Mather, Hager, Saatchi & Saatchi, J. Walter Western, especially German, publishers Thompson/Parintex, Publicis, Lowe Lintas have launched a great number and variety GGK, etc.) are all operating in Poland, it is of periodicals in two waves: first, beginning well integrated with the global market. in 1994, weeklies for women, entertain- Tumultuous change in the press market ment/gossip magazines and new television was accompanied by equally significant guides dominated the press market. Then, changes in readership patterns. First, there in 1998–2000, publishers identified and was a time of re-evaluation of old titles as a targeted new market segments and niches. great many new ones appeared on the Many advice magazines (Olivia) or people market. Gazeta Wyborcza (Election Newspaper), magazines (Viva!), or exclusive, lifestyle launched by Solidarity in advance of the magazines addressed to women (Cosmopolitan) first quasi-free election in June 1989, and men (CKM) were successfully launched became a symbol of the new era and took at that time. Also lifestyle magazines the market by storm. Many of the old dailies addressed to men began to appear. At the went out of business. same time there was a turn towards popular The second half of 1994 marked the begin- science periodicals (e.g. Cogito, Focus or ning of a three-year period when powerful National Geographic). Computer, games and German publishers launched a great number Internet magazines, as well as automobile of popular periodicals. The public enjoyed magazines (e.g. Auto S´wiat) also found many this new offer, as ‘readership’ changed into readers. ‘viewership’ of richly illustrated glossy peri- The fourteen biggest magazine publishers odicals. In 1998–2000 publishers identified (Prószynski i Spólka and Agora are the major and targeted new market segments and Polish companies among them) publish niches. Only two dailies survived in each of over 100 titles which are most read, and the regional press markets, whereas a few with a total aggregate circulation of 30 years earlier three to five of them were pub- million copies. Many of these magazines are lished. Thus what had been uncritical enjoy- Polish versions of Western European or ment of new titles now turned into highly American magazines (e.g. Reader’s Digest or competitive selection, especially in terms of Tina). the decrease in the volume of sales. Among the most popular magazines are Occasional, irregular readership, especially those, published by German publishers, of dailies, was the prevailing pattern. In the addressed to girls and women. The variety of first half of 2001 the sales of all national, magazine types is even greater among fort- regional and local dailies saw a sharp drop. nightlies and monthlies. Besides magazines The same is true of the magazine market, for women and girls (such as ‘lifestyle’), though some popular women’s weeklies, there are hobby magazines (computer, DIY, lifestyle magazines and opinion weeklies interior design, motor, garden, cooking, held their own. Also magazines devoted to etc.), children’s and youth magazines (com- spectacular television events or shows (e.g. puter games, cartoons, etc.), magazines for Big Brother) were very successful. men (erotica), and Catholic magazines either opinion or social-religious, e.g. Niedziela and Gos´c´ Niedzielny. The periodical and magazine press A number of national and ethnic minori- Three opinion weeklies, Polityka and Wprost ties (including German, Jewish, Lithuanian, and Newsweek (whose Polish edition was Ukrainian, Belarussian, Tartar and other successfully launched in August 2001), take groups) have their own periodicals.

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Book publishing include a cable system, two television In 2001 over 19,000 book titles were stations in Latvia and Lithuania, a pension published in 74.4 million copies. Of those, fund, a bank and e-commerce ventures. 508 titles were published for the first time TVN broadcasts a sub-national television (61.1 million copies). channel under the same name, TVN-7 (pre- viously RTL-7, owned by the RTL group) – a satellite-to-cable movie channel – and TVN- The electronic (audio-visual) media 24, a satellite-to-cable news channel. TVN is the centrepiece of ITI Holdings, a budding Television Luxembourg-based media empire also involv- Practically all households have a television ing two production companies (Endemol set. Some 50 per cent of households can Neovision and ITI Film Studio), a string of receive satellite television (18 per cent via a multiplex cinemas, two Internet portals and satellite dish and the rest via cable tele- a software company, in addition to non- vision). A total of around 400 different satel- media interests. lite channels are available via cable. This Another established television player in includes all the international channels avail- Poland is Canal plus Polska, an encrypted able in Europe. Some fifty of these channels pay-television film and sports channel. It is are in the Polish language or have Polish also the majority owner of Nowa Cyfra Plus, voice-over translation (this includes a digital satellite platform. It provides a wide Eurosport, Planete, Animal Planet, Discovery, variety of satellite channels and some inter- Travel, National Geographic, Fox Kids, active services and has 700,000 subscribers. Hallmark, TCM; soon to come is MTV The market shares of public television and Polska, a Polish-language version of MTV). the national and subnational commercial Thirty one per cent of households have a channels are shown below. VCR, while some twenty one per cent have a Mention must also be made of TV Plus, a video player. 4 per cent of households now Catholic television channel with limited have a DVD player. Some 4 per cent of house- geographical reach. Its programming is pro- holds have digital television sets. Using these vided by Telewizja Familijna (Family and set-top boxes, 4 per cent of households Television), a production company created receive the Cyfra + digital satellite platform, with investments from a number of state and 2 per cent the Polsat 2 Cyfrowy platform. companies. It is perennially short of cash The two satellite pay-television channels and has had to cut costs by eliminating (Canal plus and HBO) available in Poland much of its line-up of in-house news and are received in 3 per cent of households. current affairs programming. Polish Television (TVP), a public service The year 2002 saw considerable activity organization, broadcasts three generalist on the television scene, with a number national channels: TVP-1, TVP-2 and TVP-3 of new satellite services for the Polish audi- (with regional opt-outs for the twelve regional ence coming on stream. In addition, a number stations forming part of TVP); a satellite chan- of international channels (Discovery, Euro- nel (TV Polonia) addressed to Poles resident sport, MTV, etc.) added a Polish-language abroad, but also available to the Polish audi- version for the Polish market. ence, e.g. by means of cable television. Some 4.5 million households are on cable. Terrestrial free-to-air commercial tele- Both public radio and television are vision is controlled by two main players: financed by licence fees and advertising. POLSAT (wholly owned by Zygmunt Solorz, Polish Television accounted in 2001 for a Polish businessman) and TVN (part of some 46 per cent of the total television ITI Holdings, 33 per cent owned by SBS advertising spend; Polish Radio and the Broadcasting). regional public service radio companies for a POLSAT broadcasts a national channel combined total of 12.1 per cent of the radio under the same name and indirectly con- spend. The strong position of TVP (in terms trols TV-4, a sub-national channel. It also of both audience and advertising market supplies programming to the eight local share) is one of the media policy issues television stations operating in Poland and under constant debate. sells their advertising time. POLSAT operates Polish Television derives over 60 per cent a digital satellite platform (POLSAT 2 of its funding from advertising revenue, Cyfrowy) with a number of thematic chan- with unavoidable consequences for its nels, which has some 300,000 subscribers. programme offer, seen by many as too POLSAT’s other holdings and interests commercialized and entertainment-oriented. 172 3103-Ch-15.qxd 11/13/03 12:21 PM Page 173

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Table 15.1 The two most prominent programme types of the major television broadcasters (%) TVP-1 TVP-2 TVN POLSAT TV-4 TV Plus Films and Films and Films and Films and Films and Films and series 36 series 38 series 42 series 49 series 47 series 54 Current News 10 Entertainment Light music Entertainment Current affairs affairs 16 28 17 21 9 Source: annual report of the National Broadcasting Council for 2001.

Polish Radio is more public service-oriented, Another category is formed by ‘supra- but as a result is much less successful in pre- regional stations’, available mainly in big serving its position in the market and its towns: Radio WAWA, 33 per cent owned by share of the audience. Eurocast of Germany, a generalist channel; Table 15.1 shows the two programme Radiostacja (49 per cent-owned by Eurozet, genres were most prominent in the air time of owner of Radio Zet), a niche station for particular public and commercial television young people; Tok FM, a news-and-talk sta- stations. This is taken as evidence of excessive tion owned by a number of Polish and commercialization of public television’s pro- foreign companies. gramming. To get a fuller picture, let us note There are also two networks of music- that among other major genres, news takes oriented stations: ESKA (twenty local stations up 8 per cent and 10 per cent of air time broadcasting different programme services, respectively on TVP-1 and TVP-2, current mostly in big towns, formed under the auspices affairs 16 per cent and 7 per cent, documen- of the multimedia holding company ZPR), and tary films 8 per cent and 8 per cent, enter- Agora (seventeen local stations mostly broad- tainment 5 per cent and 9 per cent, education casting music, owned or co-owned by Agora. and practical advice 6 per cent and 2 per cent, Twenty four radio stations established by sport 5 per cent and 4 per cent, religion 2 per the dioceses and archdioceses of the Roman cent and under 1 per cent, advertising and Catholic Church form a network using the teleshopping 7 per cent and 5 per cent. services of Plus, a production company partly owned by the Church, which provides Radio news, current affairs and other program- Polish Radio, the national public service ming, accounting for between 40 per cent radio broadcaster, broadcasts four national and 80 per cent of air time in the program- channels and an External Service, composed ming of particular stations. of national services in different languages. Apart from that, there are also some There are in addition seventeen regional twenty other local Catholic stations, three public service radio companies. radio stations of other denominations, and Poland’s active and highly competitive seven stations operated by universities. commercial broadcasting sector includes The audience share of the main national two nationwide stations: Radio Zet in Warsaw, and supra-regional stations in the first half owned by the Eurozet company (49 per of 2002 is shown in the ‘statistics’ section. cent-owned by French companies), and RMF FM in Kraków, fully Polish-owned. Film and video Facing strong competition from other After 1989, film production was assisted commercial radio stations, Radio Zet and by the State Committee of Polish Cinemato- RMF FM are reorienting their profiles from graphy which, acting through specialized generalist to music and entertainment, agencies, provided co-financing for the pre- reducing news, current affairs and other pro- production, production, distribution and gramme types. promotion of selected films. Polish Televi- Radio Maryja, a Catholic network run by sion and Canal plus Polska also invested the Redemptorist Fathers, is an important heavily in film production. Other television social and political force. It devotes up to broadcasters were under an obligation to do 50 per cent of air time to strictly religious the same. The film studios (grouping direc- programming, some 15 per cent to news and tors, script writers, and other film makers) current affairs. have to support themselves from whatever 173 3103-Ch-15.qxd 11/13/03 12:21 PM Page 174

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funding they can obtain for their films, and If one looks a little closer, it is clear that the profits they bring. There are in addition four forces are shaping the media system and independent film producers. its regulatory framework: politics (as befits a In recent years, state funding for film pro- partitocratic country where civil society is duction has dried up, the committee has been weak and public life has been ‘colonized’ by dissolved, and recession has eaten into the political parties: Grabowska, 2001; Hausner profits of television stations (which have and Marody, 2000), the market, technology therefore reduced their investment in film and international integration. making). Polish cinema has accordingly been The main thrust of media policy has been experiencing serious difficulties. Film studios political and, to some extent, cultural. sought financing from banks, but except for a Technological and economic factors have few blockbusters have not been able to return not been given a great deal of attention. a profit on the investment, so banks have been Even though Poland is adopting EU policies wary of further involvement. Poland produces (e.g. ‘e-Europe’) oriented towards developing around twenty feature films a year. Foreign, the knowledge-based society, policy – over- especially American, films account for over 90 shadowed by party-political interests and per cent of films shown in cinemas. In 2001 lingering public definitions of the media as cinema admissions equalled 27.6 million. primarily political institutions – is only Multiplex cinemas are becoming popular. beginning to become aware of the practical implications of convergence and the inter- The Internet and dependence of the Internet and the media, and the need to encompass them both related on-line media within the ambit of policy making. Twenty three per cent of households have a Politics mainly impacts on the operation personal computer. Twenty one per cent of of public media. Commercial media are on Poles have access to the Internet. Among the whole free to adjust to the vicissitudes of them, 39 per cent access the Internet at home, the market, though some aspects of policy 31 per cent at school or a university, 23 per making affecting them may also be politi- cent at work, 7 per cent in an Internet café, cally driven. However, at least at the 5 per cent at their friends’ homes (Expert- national level, they are already powerful Monitor, www:http://www.expert. wroc.pl/ enough to influence policy and, in most monit-rap.php3). Some 6.5 million Poles (17 cases, resist encroachments on their free- per cent) are regarded as regular Internet users. dom. This is not to deny the fact that many Among some 500 ISPs and data transmis- media have close ties with politicians of one sion companies, pride of place is taken by persuasion or another. TP, former monopoly telecoms operator, Media politicization is not only a top- now 47.5 per cent owned by a consortium down but also a bottom-up process. Many involving France Télécom. publishers and journalists consider it their The two most popular Polish horizontal civic duty to be involved in the process of portals were launched in the mid-1990s: reshaping the country and determining its Wirtualna Polska in 1995 and Onet in 1996. future, also by supporting political ideas and According to April 2002 figures, three organizations of their choice. leading Polish portals (Onet, Wirtualna Market competition is now the decisive Polska and Interia.pl) attract more than factor in determining prospects for the sur- 75 per cent of all visits. vival and development of particular commer- cial media outlets. Media concentration processes are in full swing, promoted in part POLITICS, POLICY, by the growing involvement of foreign capi- tal in the Polish media – giving practical LAW AND REGULATION effect to their globalization. The market has taken over also in this sense that media users Poland’s 1997 constitution guarantees free- with their remotes opt for Big Brother, or Who dom of speech in language similar to that of wants to be a millionaire? instead of other, Article 10 of the European Convention on more ambitious content. Of some 200 private Human Rights, as well as freedom of the radio stations, only a handful offer special press and the other media and the right of programme formats. All the others have had access to public information. Poland is to reorient their programming to the rather recognized as a country of free speech and undifferentiated tastes of the mass audience. free media. As noted above, only two quality national 174 3103-Ch-15.qxd 11/13/03 12:21 PM Page 175

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daily newspapers and three opinion weeklies The press are successful. The audience is able to impose its tastes and interests on the media, and this The 1984 Press Law was amended in 1989 and has created special difficulties for the public 1990, lifting all constraints on the press and media, which cannot afford to ignore the introducing a simple registration system for popular taste yet are always being accused of new titles. Also in 1990 censorship was for- neglecting their cultural mission. mally banned. The 2001 Access to Public Technology is promoting a process of con- Information Act is another element of the reg- vergence, though not a great deal of money is ulatory framework, though it has been criti- yet to be made by offering convergent services. cized for accepting that other laws (e.g. on the Finally, the EU accession process and protection of state secrets) may take precedence membership of other international organi- over the principle of access to information. zations have had a strong impact on the reg- The main advantage of the press law in ulatory framework. force is that it does not constrain the media, The Polish version of ‘media wars’ pits i.e. mainly the media owners, in any way. At ‘political society’ against civil society and the same time, it is silent on such issues as media interests. ‘Political society’ has few concentration of ownership, lack of trans- administrative means of controlling the parency of ownership, journalists’ working media (even public service media are virtu- conditions and abuses of journalistic freedom. ally impervious to direct administrative There have been several attempts to draft influence by the government of the day), a new press law. One which would have and the political culture (though as yet introduced a regulatory body for the print crude) is mature enough not to permit out- media and introduced many other con- rageous use of the law or other means to cow straints on press freedom, was rejected by the media. So, even though civil society is parliament on its first reading in 1999. still weak and resigned to politicization of A major row broke out when the social demo- the media, the ‘war’ takes relatively civilized cratic government (dominated by a commu- forms. There should, however, be no illusion nist-successor party), in proposing amendments as to the intention of political elites to con- to the Broadcasting Act in 2001, sought to curb trol the public media and influence private excessive cross-media ownership by means of a ones, especially at the local level. draft provision banning the ownership of a There is growing, though as yet far from national radio or television channel by a sufficient, awareness of the economic impor- ‘national newspaper’. That was widely seen as a tance of the media, especially convergent politically inspired move, intended to prevent media, so this factor is not strong enough to Gazeta Wyborcza, the largest daily newspaper of influence media policy. liberal orientation and Solidarity background, There are no limits on foreign investment from branching out into national terrestrial in the print media or ownership of cable television. Some months later, following a television systems, but the Broadcasting Act massive media campaign against the proposal, imposes a cap of 33 per cent (to be elimi- an embattled government climbed down and nated when Poland joins the European changed the proposed provision so that it Union) on foreign participation in broadcast would ban ownership of a national television media outlets. Foreign investors try to keep channel by the publisher of any newspaper or out of political battles for control of the newspapers with a 30 per cent market share media when they can, and generally play (Gazeta Wyborcza has a share of 17 per cent). safe. For example, local newspapers owned Selective use of public funds to subsidize, by foreign publishers are said to be much or place public advertising in, ‘friendly’ more cautious in criticizing local power media is another issue of concern. elites than are independent Polish-owned The Polish print media system has been newspapers (Sawkowski, 2002). described as a ‘pluralistic system of party- oriented newspapers’, with particular daily The main regulatory agencies newspapers committed to promoting a set of political interests or views (Burnetko, There is only one media regulatory agency, 1995). Most major national general-interest the National Broadcasting Council (NBC). dailies have a clear political identity and The Telecommunications and Post Regulatory support one or other political grouping. Office is responsible for frequency manage- The Press Law envisages the existence of a ment and in this capacity is involved in Press Council, but since it is to be appointed by licensing procedures. the Prime Minister, no head of government has 175 3103-Ch-15.qxd 11/13/03 12:21 PM Page 176

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used this power since 1989 in the knowledge terms (every two years one-third of them are that such a council would have no credibility. replaced), so no parliamentary majority can The print and broadcast media formed a decisively influence the composition of the ‘Conference of Polish Media’ in 1995, as a whole council. The members cannot be dis- self-regulatory body. Because of political missed. divisions and conflicts of interest, it has not The NBC has extensive powers: to issue been able to play a role of importance. The secondary regulation envisaged in the conference has appointed a Media Ethics Broadcasting Act, license commercial broad- Council to pronounce itself on what it sees casters and allocate frequencies in co-operation as breaches of journalistic ethics. The coun- with telecommunications authorities, super- cil has no teeth and little authority. vise public and commercial broadcasters, The main journalistic organizations are: etc. The National Broadcasting Council the Polish Journalists’ Association (SDP), the issues secondary regulations when autho- Journalists’ Association of the Republic of rized to do so by the Broadcasting Act, Poland (these two associations have their where many detailed issues are decided own codes of conduct and seek to enforce within the general framework created by the them), the Catholic Association of statute. Together with the licences to broad- Journalists, the Syndicate of Polish Journa- cast issued to commercial broadcasters, they lists, the Union of Journalists, the Union of affect the content of programming. Television and Radio Journalists, the The main principles of regulation have European Club of Journalists, the Local Press been demonopolization and transformation Association, the Polish Local Press Associa- of the state-controlled broadcasting organiza- tion and the Polish chapter of the Associa- tion into a strong public service broadcasting tion of European Journalists. system, capable of surviving in a competitive The major media owners’ organizations are: market. Another goal has been protection of the Polish Chamber of Press Publishers and the national audio-visual market. the Association of the Local Press Publishers. With time, regulation has had to respond Polish Chamber of Press Publishers (estab- to new challenges. At the time of writing, lished in March 1996) represents its parliament is working on amendments to members vis-à-vis the authorities and pro- the Broadcasting Act, devoted in part to vides legal assistance to them. The Press regulating digital terrestrial broadcasting, as Circulation Audit Union aims to provide reli- well as to completing the job of harmoniz- able and verifiable information about the ing it with the European Union’s ‘Television print runs and sales of newspapers and perio- without Frontiers’ directive, and aligning it dicals, serving both publishers and advertis- with the Union’s ‘Telecoms Package 2003’. ers. A Centre for Monitoring Press Freedom, The Broadcasting Act describes the pro- maintained by the Polish Journalists’ gramme obligations of public service broad- Association, seeks to expose all curbs on casters in general terms, but it is proposed media freedom and access to information, that a ‘programme licence’ (to be granted by also providing legal advice to journalists. NBC) be introduced for them as an account- ability mechanism, providing both a detail- The electronic media ed list of obligations and a set of criteria for assessing performance. Amendments to the Broadcasting is regulated by the 1992 Broadcasting Act are also to improve licence Broadcasting Act which introduced the dual fee collection (Polish Television receives less system of public and commercial broadcasting than 60 per cent of the expected licence fee (in 2001 another category was added, that of revenue). ‘civic broadcasters’ for non-commercial At the same time, commercial broadcasters private stations serving worthy, mainly are, as in many other countries, exerting religious, causes) and created the regulatory pressure on successive governments to authority, the National Broadcasting ‘create a more level playing field’ – e.g. by Council (NBC). reducing the proportion of air time it can The NBC is composed of nine members: devote to advertising (at present there are no four are appointed by the lower chamber of differences in this respect between public parliament, two by the upper chamber and and commercial broadcasters, except for the three by the President of the country. The fact that public broadcasters may insert council’s chairperson is elected by the advertising only between and not during members themselves. Members have staggered programme items). The original plan to

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create strong and independent public of all members is intensely political and their service broadcasting may be in danger of composition is lopsided in favour of left-of- redefinition as governments seek an accom- centre parties. Thus public service broadcasters modation with private media. are not seen as impartial; rather as a mouth- The legal status of public service broadcast- piece for one side of the political divide. ers is that of ‘one-person joint stock compa- Commercial broadcasters are free to nies of the State Treasury’. The state owns all choose their allies and usually try to main- the shares in these companies and is repre- tain good relations with whoever is in power. sented at their general meetings of share- The following self-regulatory organiza- holders by the Minister of the State Treasury. tions should be mentioned: the Convenion Despite their formal status as state compa- of Local Commercial Radio Stations, the nies, public service broadcasters are not really Association of Independent Film and controlled by either parliament or govern- Television Producers and the National ment. The general meeting of shareholders Industrial Chamber of Cable Communi- (i.e. the Minister of the State Treasury) is cations. All lobby on behalf of their legally prohibited from affecting the content members’ interests. of programming. Also, it appoints only one It can be expected that as Poland enters out of nine members of the supervisory the European Union, the main thrust of its boards of public radio and television; the broadcasting and general communications remaining eight are appointed by the broad- policy will begin to reflect the Union’s pre- casting regulatory body. dominantly economic and technological This system of PSB governance (with approach to broadcasting, probably (for six-year staggered terms for NBC members, quite some time yet) with an admixture of three-year terms for the supervisory councils political ‘media wars’. of public broadcasters and four-year terms for their boards of management), in which supervisory board members cannot be dis- The Internet and missed, was designed to ensure political related on-line media balance in the membership of the NBC and the governing bodies of public broadcasters The Internet as such is unregulated. There is, and to prevent undue political influence on however, a growing body of legislation con- them. However, owing to the ‘colonization’ cerning e-commerce and other business of public life by political parties, and to the aspects of the Internet, e.g. concerning elec- vagaries of electoral results, the appointment tronic signatures.

STATISTICS

Population 39,000,000 Number of households 12,500,000 Cinema admissions annually 27,600,000 Book published (titles) 19,000

Print media Average sales of national and regional dailies in the first half of 2002 National Gazeta Wyborcza 443,596 Rzeczpospolita 189,563 Super Express 315,161 Trybuna. 39,385 Zycie 33,016 Regional Gazeta Pomorska 102,530 Dziennik Zachodni 92,119 Dziennik Battycki 81,919 Dziennik Polski 68,210 Express Ilustrowany 66,183 Dziennik tódzki 57,588

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′ Trybuna Slaska 56,073 Gtos Wielkopolski 55,831 Gazeta Lubuska 53,179 Gazeta Poznan′ska 47,637 Source: Press 6 (77), 2002.

Broadcast Market share of main national and subnational television stations (%) media Public television TVP-1 26.1 TVP-2 20.6 TVP-3 3.9 Commercial television Polsat 18.9 TVN 14.1 TV-4 3.8 Canal Plus 3.0 TVN-7a 1.5 aTVN-7 has been on the air in its present form since March 2002. Source: TNS OBOP. Audience share of main national and supra-regional radio stations (%) Polish Radio channels Programme I PR (generalist) 16.2 Programme III PR (for young people) 5.0 Programme II PR (high-brow) 0.5 Radio Bis (educational) 0.1 Commercial channels RMF FM 22.8 Radio Zet 18.1 Radio Maryja 3.5 Radio WAWa 1.5 Radiostacja 0.5 Radio Tok FM 0.3 Source: Radio Track 2002 survey conducted by SMG/KRC Poland Media. Percentage reached by cable (4.5 million) 36 Percentage of households with:Video-cassette recorder 52 Satellite receiver 6 DVD player 4 Digital television reception n.a. Internet use 21 Mobile phone 36

Advertising Television 65.10 spend, June Newspapers 19.75 2002 (%) Periodicals 13.00 Radio 6.56 Outdoor 5.17 Cinemas 0.34 Source: Expert-Monitor, http://www.expert.wroc.pl/monit-rap.php3.

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ACKNOWLEDGEMENTS Filas, Ryszard (1999) ‘Dziesiec′ lat przemian mediów masowych w Polsce 1989–1999’, Zeszyty Prasoznawcze, 42 (1–2): 30–58. The author wishes to acknowledge the assis- Filas, Ryszard (2001) ‘Aktywnos′c′ czytelnicza tance of Mr Wojciech Siesicki in preparing Polaków przelomu wieku’, Zeszyty Prasoznawcze, this chapter. He has also relied on the report pp. 3–4. Media in Poland: an Overview prepared by the Hausner, Jerzy and Marody, Mirostawa (2000) Press Research Centre of the Jagiellonian ‘Miekki kraj’, Polityka 50, 5 December, pp. 24–5. University in Kraków (OBP, n.d.) for some of Jarowiecki, J. (1996) ‘Przeksztatcenia prasy polskiej the information included here. w latach 1989–1995’ in A. Slomkowska et al. (eds.) Transformacja mediów 1989–1995. Warsaw: Uniwersytet Warszawski, Dom Wydawniczy REFERENCES Elipsa. Linz, J.J. and Stepan A. (1996) Problems of Burnetko, K. (1995) ‘Media a wybory: egzamin, Democratic Transition and Consolidation: Southern jednak, zaliczony. Z Walerym Pisarkiem roz- Europe, South America, and post-Communist mawia K. Burnetko’. Tygodnik Powszechny, 50, Europe. Baltimore OH and London: Johns 10 December, p. 36. Hopkins University Press. Central Statistical Office (2001) Statistical Yearbook OBP (n.d.) Media in Poland: an Overview. Craków: of the Republic of Poland 1989–2000. Warsaw. Os´rodek Bada´n′ Prasoznawczych. http://www. Chorazki. W. (1999) ‘Polskie media lokalne i obp.pl/Transformation1.htm. sublokalne 1989–1999’, Zeszyty Prasoznawcze, Sawkowski, Pawet (2002) ‘Czwarta wtadza powia- 42 (1–2): 59–82. towa’, Newsweek Polska, 30 June, pp. 94–5. Grabowska, Mirostawa (2001) ‘Partie polityczne Schöpflin, G. (1995) ‘Post-communism: a profile’, jako dzialajacy aktorzy. Partyjne organizacje – Javnost/The Public 2 (1): 63:74. programy – elity’ in Mirostawa Grabowska and World Bank (2002) Transition: the First Ten Years. Tadeusz Szawiel (eds) Budowanie demokracji. Analysis and Lessons for Eastern Europe and the Warsaw: Wydawnictwo Naukowe PWN. Former Soviet Union. Washington DC: World Filas, Ryszard (1995) ‘Panorama czytelnictwa Bank. prasy 1989–1994’. in A. Stomkowska (ed.) Pieciolecie transformacji mediów 1989–1994. Warsaw: Uniwersytet Warszawski, Dom Wydawniczy Elipsa.

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16: Portugal

MANUEL PINTO AND HELENA SOUSA

NATIONAL PROFILE income from it. Freguesias are all too small to have any significant power and even municí- pios – with the exception of those corre- Portugal is one of the oldest countries in the sponding to big cities such as Lisbon and world. It has been an independent country Oporto – have to struggle to put their views since the first half of the twelth century. across. Although the 1976 constitution Located in the Iberian peninsula (south-west envisaged the creation of administrative of Europe), Portugal covers 92,028 km2. regions, further legislation to implement the Most of its population (10.4 million) live on constitutional provisions has never been the Atlantic coast, mainly between the two introduced, which partly explains the non- most important urban centres: Lisbon (the existence of regional television in Portugal. capital) and Oporto, in the north. According Portugal has close political and cultural links to the 2001 census, 3 million people are with its former colonies and territories younger than twenty four and 1.7 million such as East Timor, Macau, Brazil, Angola, are older than sixty five. In 2001 the unem- Mozambique, Guinea-Bissau, Cape Verde ployment rate was 4.1per cent, and the gross and Sãs Tomé and Príncipe. domestic product amounted to ¤122,900,6 The development of the media has obvi- million. ously had a close relationship with the Portuguese is the official language of the country’s political history. When Oliveira country and the entire population speaks Salazar came to power in the late 1920s he Portuguese. In the north-east there is a small was faced with an outspoken and relatively community (around 7,000 people) speaking diversified press. During the first Republic Portuguese and Mirandês, a romanic lan- (1910–26) the press managed to gain free- guage recently recognized by the state. In dom from the constraints imposed by the Portugal there are, however, non-Portuguese- monarchy (Tengarrinha, 1989; Sousa, 1996). speakers, namely foreigners and immigrants, As the authoritarian regime became consoli- but the media and the state have not paid dated, in the mid-1930s, press censorship particular attention to their linguistic speci- was installed. Showing no interest in own- ficities as the country is perceived as homo- ing newspapers, the Salazar regime concen- geneous in terms of language. trated on controlling their content. The In addition to the European continental control of media content, which expanded territory, the country has two autonomous to the electronic media, had a significant regions: the Azores and the Madeira islands impact on the political, social and cultural which have their own political institutions development of the country. (regional parliaments and regional govern- The long-standing authoritarian regime ments). In administrative terms, Portugal is was overthrown in 1974 and Portugal divided into municípios (which can be com- became a semi-presidential parliamentary pared to councils) and freguesias (very small democracy. After a highly unstable decade, councils). These two forms of local govern- the Portuguese democracy started consoli- ment are almost totally dependent on dating. In 1986 the country joined the central government as they get most of their European Economic Community and a 3103-Ch-16.qxd 11/13/03 12:21 PM Page 181

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centre-right government, led by Cavaco communicate official attitudes’ (Seaton and Silva, remained in power from 1985 until Pimlott, 1983: 94–5). Restrained in content, 1995. The socialists assumed power after the with poor distribution facilities and reader- legislative elections of October 1995 and ship, there was a steady decline in the stayed in government until 2002, when a regional press: ‘from 210 papers in 1926, to centre-right coalition (Social Democrats and 170 in 1933, 80 in 1944, and to a mere 17 by Popular Party) was elected. Since the mid- 1963’ (Seaton and Pimlott, 1983: 94); a 1980s structural reforms have been intro- national press was virtually non-existent. duced in almost all policy areas, including Most city newspapers were family businesses the media. Despite these reforms, the state whilst in towns and villages papers were apparatus is still perceived as inefficient and mainly controlled by the Catholic Church. non-accountable to citizens. The press was generally underfunded, with very low or non-existent profits. After the 1974 revolution, major changes STRUCTURE AND OWNERSHIP were introduced in the press. The 1975 Press Law guaranteed that the freedom of the Despite the liberalization and privatization press will be exercised without subordina- of the Portuguese media market in the late tion to any form of censorship (Article 4). 1980s and in the 1990s, the national media Similarly, the 1976 constitution suggested market is small, compared with most EU that the pluralist view of the media was countries. The most important domestic clearly successful. It stated that the freedom group is Portugal Telecom, with no less than of the press was guaranteed and that no 70 per cent of the media and communications group was allowed to exercise censorship or market in 1999. In 2000 Portugal Telecom obstruct journalist creativity (Article 39). acquired 58 per cent of the second most Nevertheless, these legal instruments do not important multimedia group, Lusomundo. mean that the press became free after the Portugal Telecom was already the biggest revolution. Indeed, during the so-called telecommunications operator, having the 1974–5 revolutionary period the press, most important Internet service provider which was still in private hands, was ‘trans- and the main cable television network. Still, ferred’ to public ownership. Three days after with Lusomundo, Portugal Telecom controls the leftist coup of 15 March 1975 important two of the most significant daily newspapers sectors of the economy such as banking and (Diário de Notícias and Jornal de Notícias), and insurance were nationalized. Because many relevant interests in the cinema and press leading newspapers were owned by strong distribution. In 2000 the Portuguese media economic groups and banks, they became market was worth ¤349 million, represent- state property. The nationalization of the ing 7.8 per cent of the gross national press was never explained as a political product (Obercom, 2002). option. ‘It was presented as an indirect con- sequence of the nationalisation of the bank- ing sector’ (Mesquita et al., 1994: 368). But The print media behind this option was clearly the will to control what was left of government’s direct The newspaper press influence. Significantly, the nationalization The 1933 constitution, although guarantee- process was not reversed with the removal ing – in principle – freedom of the press, of the communist Prime Minister, Vasco opened up the possibility of institutionaliz- Gonçalves, in November 1975. ing censorship when it stated that ‘special Indeed, after this revolutionary period the laws will regulate the exercise of press free- nationalized press played a central role, as dom … in order to avoid distortion of public newspapers did not lose their readership and opinion in its social function’. This ‘special did not face any serious competition from law’ was soon passed, establishing that pub- the private sector until 1990 when Público lications ‘about political and social issues daily newspaper was set up, becoming in a will be under pre-censorship’ (Carvalho, short period of time a standard for quality. 1973: 55–6). The tight control over content The privatization of leading national news- had a negative impact in the quality and papers took place in the late 1980s and early quantity of newspapers. ‘The main function 1990s due to Cavaco Silva’s media reforms. of the press under the dictatorship was not Currently, the press sector can be charac- to inspire, enlighten or convince but to terized in the following manner:

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1 There are six generalist daily news- scope of the multimedia groups. papers, six weekly generalist newspa- These groups have been more at ease pers and news magazines and with the expansion of titles because hundreds of local and regional news- they have been able to develop group papers. More than 600 benefit from synergies. state distribution subsidies. 7 The local and regional press is still 2 The so-called quality press comprises very weak. There are no more than two daily newspapers (Público and twenty daily regional newspapers Diário de Notícias), a weekly news- selling more than a few thousand paper (Expresso) and a news magazine copies. Apart from these titles, there (Visão). The Diário de Notícias long- are hundreds of very small local standing position as the most presti- newspapers. In 1999, 660 benefited gious national newspaper was from state distribution subsidies. challenged by Públics. Unlike the Diário de Notícias, which is more than a century old, Expresso was estab- lished right before the 1974 revolu- Despite the diversity of titles, formats and tion, and it has consolidated its content, the generalist press occupies a very position over the decades since. Visão humble position in terms of circulation. It was set up in 1993, and despite initial occupies the second last position in the difficulties, it has recently expanded European Union in terms of circulation its market thanks to an aggressive figures per 1,000 inhabitants: sixty four copies marketing strategy and a strong com- (WAN, 1999). According to Eurobarometer, mitment to the subscription market. only one person in every four older than 3 In the popular newspaper market, the fifteen reads newspapers on a daily basis; two most important daily titles are 30 per cent never do. The relatively small size Jornal de Notícias and Correio da of the market makes periodicals an expensive Manhã. Jornal de Notícias is more than commodity but the high level of illiteracy a century old, based in Oporto. must also be considered when attempting to Correio da Manhã is based in Lisbon explain these figures. and was set up in 1979. 4 Over the last few years, a new phe- Book publishing nomenon has appeared in the press: There are a great many book publishers. In the establishment of several free 1999, 1,290 companies and/or individuals weekly newspapers. Most of these were involved in the publication of at least titles, launched in heavily populated one book. However, the main publishing areas, are local editions of Jornal da association, representing 70 per cent of the Região, owned by the multimedia book market, has only 186 associates. In group Impresa and by the Belgian 1999, 7,235 new titles were published, 14 group Roularta. These local editions per cent more than in the previous year. print 50,000–70,000 copies. Contrary Translations represent 45 per cent of books to what has happened in other published. European countries, the introduction and development of free papers in The electronic (audio-visual) media Portugal was not a controversial issue. 5 In the specialist press, there has been Radio a proliferation of titles, particularly in The evolution of the electronic media in the four areas: women’s magazines, sport first stages of Salazarism was slow and (there are three daily newspapers), limited in scope. Amateur radio broadcasts television guides and society, and the started thriving in the capital in the mid- business press. 1920s. After these early beginnings, local 6 Most periodicals belong to multi- and neighbourhood stations emerged in media groups, Impresa, Lusomundo, Lisbon and, soon afterwards, in Oporto, as Media Capital, Cofina, Impala, well as some minor regional stations which among others. Few titles have been were permitted to continue their operations set up over recent years outside the during the Salazar regime. The first relevant political intervention by the Salazar regime

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in the electronic media was the creation of Like Rádio Renascença, RDP was set up in the government station Emissora Nacional the 1930s. It is a public service broadcasting (EN) (now called Radiodifusão Portuguesa, station and it is financed by licence fee. RDP RDP). Emission Nacional resulted from the operates five channels: Antena 1 (general- incorporation of almost all existing private ist), Antena 2 (culture and classic music), stations and began transmitting regular Antena 3 (targeting young people), RDP broadcasts from Lisbon on short and Internacional (a satellite radio channel for medium wave on 1 August 1935. Never- Portuguese communities abroad) and RDP theless, owing to the country’s overall África (a satellite radio channel for African underdevelopment, ‘it was not until 1955 countries whose official language is that some 80 per cent of the population Portuguese). The third national station is were technically capable of listening to Rádio Comercial, which was privatized in radio broadcasts, and not until the second 1993 and now belongs to the Media Capital half of the 1960s that the country came any- group. It operates two channels: Rádio where near full nationwide coverage’ Comercial (targeting young people) and (Optenhögel, 1986: 240). Rádio Nacional (Portuguese music only). Recognizing the importance of radio, the At regional level there are two stations: Catholic Church – with a traditional Rádio Nostalgia (mainly music from the involvement in the regional press – also set 1950s to the 1970s) and TSF. TSF started up its own station, Rádio Renascença (RR), broadcasting in 1988 and was later bought which started broadcasting in 1937. The by the Lusomundo group. This station has early days of radio stations were difficult had an enormous impact on radio journal- because, up to the 1950s, advertising was ism, as it has introduced a new, highly not allowed, which caused enormous finan- dynamic model based on live political dis- cial hardship to most private radios (EN was cussions, features, documentaries and financed by the licence fee). Rádio frequent news bulletins. Renascença and Emissora Nacional were If there are few national and regional clearly the most significant radio sta- radio stations, the same is not true at local tions1 whose importance grew not only level. There are more than 300 radio sta- under Salazism and Marcelism but after the tions, mostly concentrated along the coast- 1974 revolution as well. The so-called radio line (like the population). The lack of oligopoly was challenged only in the 1980s advertising revenue and the difficulty of with the explosion of illegal radio stations finding other sources of financing led the and with the subsequent allocation of fre- socialist government to develop a frame- quencies to local and regional stations. work of subsidies for local radio. Radio went through a profound transfor- mation after the revolution. As mentioned, Television the radio oligopoly (RR and RDP) was not If Salazar did not object to the development dismantled. In spite of deep crisis during the of radio broadcasting, the same did not revolutionary period, this model survived apply to television. Unlike Salazar, his until the boom in illegal radio stations and dauphin, Marcello Caetano, was interested in with the subsequent allocation of frequen- cinema and television and got actively cies to local and regional stations in the involved in the setting up of Rádiotelevisão late 1980s. Portuguesa (RTP). Marcello believed that At present there are three national radio ‘the survival of the regime depended on its stations: Rádio Renascença, Radiodifusão ability to modernize itself and television was Portuguesa and Rádio Comercial. Rádio perceived as a necessary condition for it’ Renascença, owned by the Catholic Church, (Gonçalves, 1992). So, overcoming internal is still the audience leader. Renascença oper- resistance, in 1953 a more liberal faction of ates three national channels: Rádio the regime created a study group to look Renascença (generalist), RFM (generalist) into the introduction of television. The and Mega FM (targeting young people). Grupo de Estudos de Televisão, operating Rádio Renascença also has a network of within the confines of public radio station regional transmitters which broadcast (EN), completed its report, A televisão em autonomous programming at certain peri- Portugal, the following year. Whilst this ods of the day. Overall, Rádio Renascença group developed its studies, in January 1955 channels have 40 per cent of the total radio Marcello – by then Secretary of State of the audience (Obercom, 2002). Presidency – appointed a commission which

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largely agreed with the EN study group’s undertaken since the 1974–5 revolutionary recommendation that television should be period. The radio sector had already been under one company of mixed ownership liberalized but the impact of this policy mea- (see e.g. TV Guia, 17 April 1982; RTP, 1992). sure was far greater. The public service oper- On 15 December 1955 the government ator, RTP, lost its monopoly and in a very constituted Rádiotelevisão Portuguesa (RTP), short period of time lost its audience leader- granting the company the exclusive conces- ship. SIC’s success coincided with RTP’s sion for television broadcasting. The govern- financial and managerial deterioration. ment issued this exclusive licence for twenty Deprived of the licence fee, with low audi- years, with provision for extending it by ences, and uncertain about its future, RTP consecutive periods of ten years, and an entered into an acute crisis. At the time option for the government to purchase the of writing the newly elected centre-right corporation after its first ten years in opera- government is considering the closure of tion. The RTP’s statute was drawn up per- RTP and the setting up of a new public sonally by Marcello Caetano. service company with a single generalist RTP’s shares were divided into three blocs, national channel. held by the government, Portuguese com- The two private national channels – mercial radio stations, banks and other pri- notwithstanding financial difficulties – vate companies. It was to be financed managed to establish themselves. In 1995 mainly by licence fee and advertising SIC overtook RTP in terms of audiences revenue. Its technical operations were to be owing to an exclusivity contract with the regulated by the PTT while its in-house Brazilian Globo. From then on, Globo would management was to rest with a board of sell telenovelas only to SIC and with this directors partially appointed by the govern- trump card SIC maintained almost 50 per ment. RTP initiated experimental broadcasts cent of the total television audience from on 4 September 1956 but regular program- 1996 to 2000. From the beginning TVI had ming would begin on 7 March 1957. During relatively small audiences but in 2000/1 the first fifteen years, RTP managed only one important changes did occur: with aggres- national channel. This situation changed in sive scheduling of Big Brother, TVI moved to 1968 when a second national channel, RTP-2, first place in audience share. In 2002 SIC was introduced. Regular television broad- fought back, and currently the two private casts were initiated in the autonomous channels are in equilibrium. region of Madeira in August 1972 and in the Cable television has developed strongly. autonomous region of the Azores in August According to the National Authority for 1975. Communications (Anacom) by the begin- The 1976 constitution stated that no tele- ning of 2002, 62 per cent of Portuguese vision channel could be privately owned. homes had access to cable, though only Therefore, in the following decade no seri- 23 per cent had subscribed to cable services. ous attempts were made to alter the broad- In 1995 a mere 9 per cent of households had casting status quo. Politicians concentrated access to cable television and 1 per cent sub- on the reorganization of the radio sector, scribed to it. The fast implementation of whose expansion had been chaotic. When cable television is certainly related to the 300 local and regional radio frequencies increase in the number of thematic channels were finally allocated in the late 1980s, and pay-per-view services. political interest moved to private televi- The launching of terrestrial digital tele- sion. Following a highly intricate political vision is under way. A fifteen-year licence process, on 6 February 1992 the Cabinet has already been allocated to a consortium made public the allocation of two commer- that includes RTP and SIC among other cial channels: SIC, led by the former Prime entities. This consortium is expected to start Minister, Francisco Pinto Balsemão, got the operating by 2003. third national channels, and TVI, having close links with the Catholic Church, was allocated the fourth channel. From 1993 POLITICS, POLICY, LAW onwards, the television broadcasting sce- nario included two national public service AND REGULATION channels and two private national channels. The opening up of television to commercial The most comprehensive changes in interests was the most important media policy communications policy and regulation,

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since the 1974–5 revolutionary period, were Political parties in general and the opposi- undertaken by the social democrats during tion in particular (inside and outside the the period of absolute majority rule from parliament context) as well as the President 1987 to 1995 (Sousa, 1999b, 2000). The of the Republic tended to pay particular economy was booming and media liberaliza- attention to the government’s intervention tion was perceived as inevitable. The pro- in the media. This does not necessarily business approach of Cavaco Silva’s mean that these actors determined major government favoured the privatization of decisions, but they created an awareness and the state media. As we have shown, news- visibility of media issues, which had no par- papers which had been nationalized during allel in other policy sectors. The opposition the revolutionary period returned to private and the President of the Republic, Mário hands. The radio sector was liberalized and Soares, frequently put forward their views one state radio station was privatized. The on media policy and media (essentially television public service operator, RTP, lost public) performance. During Guterres’s its monopoly as two national television governments the President, Jorge Sampaio, companies were allowed to operate commer- and the (fragmented) opposition made a cial channels. The socialist government thus more discreet intervention in the sector. inherited a highly reformed but poorly regu- Within the institutional framework, the lated media system, and no structural com- Alta Autoridade para a Comunicação Social munications policies were either announced (AACS) was another relevant actor – at least or introduced. Up to 2002, when a centre- in legal terms. AACS was first envisaged in right government returned to power, the the 1989 version of the constitution and its socialists merely attempted to strengthen objectives were (and still are), inter alia, to regulatory bodies and introduced minor guarantee the freedom of the press, to have changes in several legal instruments. a say in the attribution of television chan- nels to private initiative2 and in the selec- Actors and interests tion of public media editors. Despite its constitutional status, the High Authority The structural changes which took place was perceived as being dominated by the during the Cavaco Silva majority govern- government of the day and as a weak regu- ments and the regulatory/legal adjustments latory body. Of its twelve members, one implemented by the socialists were certainly was a magistrate, five were members of par- related to the main actors and interests liament, the government itself designated involved in this policy area. When three members and the other elements analysing Portuguese media actors, Sousa were so-called representatives of public (1996) identified the state/government as opinion. The composition of AACS alone the most relevant, not only regulating but would prevent it from operating as an inde- also owning and controlling the political pendent entity. During the first Guterres content of public media. During Cavaco mandate, changes were introduced in the Silva’s mandates the media were under the composition of the AACS in order to guar- tutelage of the Secretaria de Estado da antee that it would operate more indepen- Presidência do Conselho de Ministros. dently. The High Authority Law (No. 43/98 Although Marques Mendes chaired this of 6 August) reinforced its power and secretaria, the Prime Minister personally reduced the number of government- handled the most important portfolios, such appointed members. as the opening up of television to private Apart from the state actors, Sousa (1996) operators. Marques Mendes dealt with highlighted the role of two non-state actors: ‘politically safe’ issues such as violence on the Catholic Church and the Balsemão television and RTP’s broadcasts to the media group. The opening up of the televi- Portuguese emigrant communities and to sion broadcasting sub-sector to private oper- the Portuguese-speaking African nations. ators was the most relevant media decision Though the socialists contributed to the during Cavaco Silva’s mandates, and these development of a more open policy net- two actors successfully lobbied to determine work, the state has not lost its centrality in the outcome that best suited their interests. the policy-making arena. Private actors in The Catholic Church and the Balsemão the electronic media largely depended on group were granted the two available the state to keep their licences and to national television licences in what turned expand their interests. out to be an extremely controversial process.

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The Catholic Church is a powerful actor in Cabinet and the Secretário de Estado for the a number of policy areas and it has a long media, Arons de Carvalho, continued to be history of involvement in the media (own- nuclear figures in both decision making and ing hundreds of local/regional papers and non decision-making. Contrary to what dozens of radio stations, including the took place during the Cavaco Silva period, highly successful national network Rádio highly sensitive topics such as public service Renascença). The acquisition of a television television broadcasting were not dealt with. channel had been a long-standing wish. Willing to demarcate themselves from Recognizing that other media groups were Cavaco Silva’s centralist rule, Guterres’s gov- gaining social influence and considering a ernments set up or promoted the develop- national television channel of strategic ment of entities whose main task was to importance to the expansion of Christian assist policy making and/or to study the values, the Church developed its arguments media sector so politicians could decide with and has positioned itself as a ‘natural’ holder a better understanding of the alternatives. of a television licence. However, being more Amongst other examples, we would men- concerned with its influence on society than tion the Comissão de Reflexão para o Estudo with the economic aspects of such a ven- da Televisão (Commission on the Future of ture, the Church soon realized that it had Television), the Comissão inter-ministerial not the financial means to keep the channel para propor acções nos sectores do cinema, (TVI). TVI is now in the hands of the Media audio-visual e telecomunicações (Inter- Capital group. ministerial Commission to propose Measures The Controjornal group, whose figure- in the Cinema, Audio-visual and Tele- head was (and still is) the former Prime communications Sectors), the Instituto da Minister, Pinto Balsemão, had started with Comunicação Social (Media Institute), the the successful weekly Expresso and had been Conselho de Opinião da RTP (Advisory Council consolidating its position in the media of the Public Service Broadcaster, RTP), the market. In addition to Expresso, it owned at Instituto do Cinema, Audio-visual e Multi- the time a daily newspaper (Capital), several media (Audio-visual and Multimedia Insti- specialist magazines and also had a solid tute), and the Observatório da Comunicação position in the printing industry. The cre- (Communications Observatory). ation of a national television channel (SIC) The Instituto da Comunicação de Portugal was the most important development in (ICP), the telecommunications regulator, Balsemão’s media strategy. started operating in 1989 but owing to Though Lusomundo media group did not technological convergence has assumed a perceive itself as a potential candidate in the new role during Guterres’s mandates. The bid for television channels, it certainly was Instituto da Comunicação Social and the another powerful actor in the media arena Instituto da Comunicação de Portugal under the social democrat governments. (ICP), renamed Anacom (Communications Lusomundo started with film distribution Authority), were put to work together in and later expanded into exhibitions and real order to develop common strategies for the estate. It had a dominant position in the cin- converging telecommunications and audio- ema distribution and exhibition sub-sectors. visual sectors. During the allocation of regional radio sta- The emerging regulatory/advisory entities tions, in the late 1980s, Lusomundo success- contributed to the public’s perception that fully bidded for the northern Portugal policy making was more open to consulta- frequency (now absorbed by TSF Rádio tion and debate. However, it should not be Jornal, where Lusomundo got a solid posi- assumed that these new media policy actors tion from March 1993 onwards). The pri- had a real impact on the development and vatization of the two most important daily implementation of policies. Indeed, it might newspapers, Jornal de Notícias and Diário de eventually be argued that the increasing Notícias, took place in circumstances number of policy actors and their compet- favourable to Lusomundo, which seized the ing views might have contributed to non- opportunity to buy them both. decision making due to what can be called a During Guterres’s mandates (1995–2002) zero-sum game. the above-mentioned actors remained active The previously mentioned multi media (though significant internal changes did groups have not disappeared but there were occur), and the government did not lose its changes in their power structure. It could be central position. The Prime Minister’s argued that under the socialists’ rule the

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Catholic Church lost some ground. Its most and the Journalists’ Statute were altered. The important acquisition, TVI, went into debt new Press Law (No. 2/99 of 13 January) owing to the lack of advertising revenue and intended to expand pluralism and indepen- in 1997 SOCI media group and the dence among media companies and to rein- Scandinavian Broadcasting System bought force journalists’ rights. The freedom of the it. In November 1998 the Media Capital press, free access to the market and the group bought the company, and is now its impossibility of any form of censorship are current owner. Apart from losing TVI, its basic principles of this legal tool. most important asset, the Catholic Church also saw state subsidies to its numerous (but The electronic media economically fragile) local newspapers reduced, owing to a policy measure taken In the broadcasting arena, a new television during the second Guterres government. Act was also passed (law 31-A/98 of 14 July). Although all television companies went The new television Act introduced changes through serious financial difficulties, the in access to television activity. For the first Balsemão group managed to expand its busi- time, the possibility of creating local, ness. The Impresa holding managed to regional and thematic channels was cement its position in the television market enshrined in law. Until law 31-A/98 was with a generalist terrestrial channel (SIC) approved, the television broadcasting and three thematic cable channels (SIC system already included a number of chan- Notícias, SIC Gold and SIC Radical). In the nels: two public national channels (RTP-1 press, it has acquired the news magazine and RTP-2), two private national channels Visão and it has reinforced its magazine offer (SIC and TVI), two public regional channels in segments such as business, society and (RTP-Açores and RTP-Madeira), and two tourism. public international channels (RTP África Apart from the traditional media groups, and RTP Internacional). Cable television newcomers have joined the policy network. and satellite television reception were also The biggest telecommunications operator, well established realities but companies Portugal Telecom, has entered the television were not allowed to produce their own pro- distribution business, with TV Cabo, but it grammes. Only third-party transmissions also became a multimedia group in 2000, were legally possible. when it bought the Lusomundo group. The The new television law opened up possi- group does not have a terrestrial generalist bilities in terms of cable channels and ter- channel but it is very strong in cinema dis- restrial television channels soon entered this tribution, the press, and owns the highly market. SIC, for example, has associated influential radio network, TSF. In addition, itself with the Brazilian network TV Globo two other multimedia groups (Media Capital and the biggest national cable operator, TV and Cofina) gained relevance in the media Cabo, in order to develop the Premium TV sphere. Media Capital made important project. Premium TV has been offering two investments in the radio sector and con- codified movie channels (Telecine 1 and trolled the national television channel TVI. Telecine 2) since June 1998. RTP in February Recently this group has expanded into on- 1998 signed a contract with TV Cabo, and line services, cable television and television with a company with multiple interests in production. Cofina is an extremely recent sports, Olivedesportos. This consortium has group with a strong position in the news- operated, since September 1998, a codified papers and magazines markets. sports channel, Sport TV. Having put forward the main actors and The proliferation of television channels interests in this arena, we will now briefly does not necessarily mean that the financial mention the principal legislative tools and situation of broadcasting companies has recent regulatory developments in the press, improved during the Guterres government. electronic media and Internet-based media. In fact, television stations had important financial losses over recent years. The adver- The press tising market is small and, apart from SIC, terrestrial broadcasting companies have had As stated in the 1995 government pro- highly unstable management mainly due to gramme, independence in the media public the lack of advertising revenue and debt accu- sector and journalists’ rights were high on mulation. When the broadcasting market was the agenda. Therefore, both the Press Law opened up to private initiative, in 1992, the

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Cavaco Silva government abolished the issues which are relevant to on-line material television licence fee and sold RTP’s transmis- and on-line services and these might be used sion network to Portugal Telecom. These to prosecute ‘on-line’ crimes such as injury, political decisions, which were not reversed defamation, among others. by latter governments, put RTP in a difficult As we have already mentioned, changes in economic situation and transformed a so- the media regulatory body, the High Authority called public service broadcaster into an ordi- for the Media, were introduced as well. nary commercial television company, i.e. RTP Indeed, this entity was perceived as highly had to fight for audiences to achieve a mean- politicized and its influence was very limited. ingful slice of the adverting cake. The socialist government altered its composi- In the radio broadcasting sphere, the social- tion and widened its powers. According to law ist government has also revised an important No. 43/98 of 6 August, the High Authority for legal tool: the Radio Law. Law No. 2/97 of 18 the Media has a very important set of respon- January sets out the basis of the overall sibilities: it should guarantee freedom of Portuguese radio system and makes it com- expression and access to information, it pulsory for local radio stations to produce should ensure objectivity and impartiality in their own content (most were simply broad- media content, it should guarantee that the casting national radio stations’ feed). The media act independently of the political Guterres governments have also for the first power, it should ensure that radio and televi- time expanded the press incentives to local sion channels comply with the law, it should radio, subsidizing technological moderni- protect the public interest, etc. zation, providing institutional advertising, Despite its wide range of responsibilities and reducing telecommunications costs (due and despite its formal independence from the to an agreement with Portugal Telecom). government of the day, the High Authority for the Media has not yet found the human The Internet and related and financial resources to become a respected on-line media independent regulator. The media regulator is perceived as a weak body, unable to make In the information society arena, some rele- the operators comply with the law. In order to vant measures have effectively been taken. circumvent this difficulty, the High Authority In 1997 the government published the has itself promoted self-regulatory protocols Information Society Green Paper, an attempt to try to get the media to comply with the to develop and implement policies within the legislation. For example, on 18 September ‘information society’ framework. In the after- 2001 all television operators signed an agree- math of this Green Paper, a number of politi- ment to respect human dignity in television cal measures were implemented. The National programming. In the first clause of the agree- Science, Technology and Society Network was ment, the operators state that they will obey set up. This scientific network plans to bring the Television Law (No. 31-A/98 of 14 July), together national researchers and to stimulate namely its twenty-first article regarding the and consolidate R&D. In a move very similar limits on programming freedom. Other to the one being developed in Britain, the clauses confirm the intention of television Ministério da Ciência e da Tecnologia (Science operators to comply with the legislation in Ministry) made an effort to introduce the terms of bad language, violence and sex. This Internet into every school in the country agreement, which does not go any further (from the fifth to the twelth grade), universi- than the existing television law, clearly ties, libraries and research centres. ‘Computers demonstrates that television operators have for all’ was another project. The ‘Computers not complied with the legislation and that for all’ project has the objective of increasing the regulatory body does not have the means the number and use of Internet-connected to fulfil its job. computers at home. Other small-scale initia- tives, such as the creation of tele-work centres, were also on the agenda. Specific legislation for on-line services and NOTES content has not yet been developed but this is not to say that no legal means exist to 1In addition to RR and EN, there were a few punish crimes committed on electronic ser- local radio stations and Rádio Club Português, a vices. Indeed, the constitution, the penal radio station owned by the Botelho Moniz family, law and the civil law envisage a number of a traditional ally of Salazar and Marcello.

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2The AACS was not able to put forward its view constitution, the High Authority decided for on the allocation of television channels to private 'technical equality' and no candidacy was operators. But, as its opinion was required by the excluded.

STATISTICS

National population 10,400,000 Population density 112.5 per km2 Percentage with higher education degree 10.6 Source: 2001 census, INE.

Print media Number of daily national newspapers 6 Number of daily regional newspapers 20 Circulation per 1,000 inhabitants 64 Percentage over fifteen years old who read newspapers 25

Circulation of periodicals, January–September 2000 Maria (popular women’s magazine) 322,000 Nova Gente (society magazine) 185,000 Selecções Reader’s Digest 178,000 Expresso (weekly quality paper) 138,000 Jornal de Notícias (popular daily) 108,000 Source: AIND.

Broadcast Radio and television media Number of national radio channels 8 Number of regional radio channels 2 Number of local radio channels approx. 300

Number of national television channels 4

Percentage of households with: Access to cable television, 1995 9 Access to cable television, 2002 62 Subscription to cable television, 1995 1 Subscription to cable television, 2002 23 Source: Anacom, 2002.

Electronic Percentage of households with: media Personal computer, 1997 25.8 Personal computer, 2002 (first quarter) 40.2 Access to the Internet from home, 1997 2.2 Access to the Internet from home, 2002 (first quarter) 23.3 Source: Marktest 2002.

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REFERENCES Politics in Western Europe. Frankfurt: Campus Verlag. Pinto, Manuel, et al. (2000) A Comunicação e os Anacom (2002) Redes de distribuição por cabo (first media em Portugal, Comunicação e Sociedade quarter 2002), www.anacom.pt. series. Braga: Instituto de Ciências Sociais da APEL (n.d.) Estatisticas da edição de livros relativas Universidade do Minho. ao ano de 1999, http://www.apel.pt/livro/estatis- Pissarreira, Agostinho, ed. (1999) Os media em ticas/estatisticas.html Portugal. Lisbon: ICS. Assembleia da República (1987) Programa do XI RTP, Departamento de Relações Externas (1992) Governo Constitucional, Apresentação e Debate, RTP: 35 anos de experiencia. Lisbon: TV Guia. AR-Divisão de Edições, Lisbon. Seaton, Jean and Pimlott, Ben (1983) ‘The Assembleia da República (1992) Programa do XII Portuguese media in transition’ in Kenneth Governo Constitucional, Apresentação e Debate, Maxwell (ed.) The Press and the Rebirth of Iberian AR-Divisão de Edições, Lisbon. Democracy, Westport CT: Greenwood Press. Assembleia da República (1995) Programa do XIII Sousa, Helena (1996) ‘Communications Policy in Governo Constitucional, Apresentação e Debate, Portugal and its Links with the European AR-Divisão de Edições, Lisbon. Union’, Ph.D. dissertation. London: School of Cádima, F. R., ed. (2000) Anuário da comunicação. Social Sciences, City University. Lisbon: Obercom. Sousa, Helena (1999a) ‘Portugal’ in Legal Guide to Carvalho, Arons (1973) A censura e as leis de Audio-visual Media in Europe. Strasbourg: imprensa, Lisbon, Seara Nova. European Audio-visual Observatory, Council of Eurobarometer (2002) Europeans’ Participation in Europe. Cultural Activities. Brussels: Eurostat. Sousa, Helena (1999b) ‘The Liberalisation of the Gonçalves, Maria Augusta (1992) ‘35 anos de tele- Media and Communications in Portugal’, paper visão em Portugal: um Percurso de dependência’ delivered at the conference ‘Portugal and the in catalogue Televisão na Europa dos Doze. Millennium’, London, 21 May. Madrid: Madrid, Capital of Culture. Sousa, Helena (2000) ‘Políticas da comunicação: Mesquita, Mario, et al. (1994) ‘Os meios de comu- reformas e continuidades’ in Manuel Pinto et al. nicação social’ in António Reis (ed.) Portugal: (eds) A comunicação e os media em Portugal, vinte anos de democracia. Lisbon: Circulo de Comunicação e Sociedade series. Braga: Instituto Leitores. de Ciências Sociais da Universidade do Minho. Obercom (2002) ‘O Sector da comunicação em Tengarrinha, José Manuel (1989) História da Portugal’, Newsletter, January. Imprensa Periódica em Portugal, 2nd edn. Lisbon: Optenhögel, U. (1986) ‘Portugal’ in H.J. Caminho. Kleinsteuber et al. (eds) Electronic Media and

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17: Russia

ELENA VARTANOVA

NATIONAL PROFILE appointed by the President to control the execution of federal laws on the territory of the Russian Federation. The territory of the Russian Federation is the The Russian language is the official state largest of any nation in the world (17 million language but many ethnic groups populat- km2). It is unevenly populated by nearly ing the country speak nearly seventy other 146,100,000 people. The majority of the languages. Russians make the largest group population are concentrated in several areas (81.5 per cent), other big ethnic groups are around industrial centres in the European Tatars (3.8 per cent), Ukrainians (3 per cent), part of Russia, but regions of Siberia and Far Chuvashs (1.2 per cent), Bashkirs (0.9 per East are populated sparsely. Russia has bor- cent), Byelorussians (0.8 per cent), ders with fourteen countries in Europe and Moldavans (0.7 per cent) and others (8.1 Asia. Among neighbouring countries there per cent). The major religion is Russian are former Soviet republics, China (in the Orthodox, but Muslim, Buddhist and Jewish south-east and south, length of the border are also dominant for some ethnic groups. 3,645 km). Russia’s border with Finland Russia’s economic situation remains poor (north-west, 1,313 km) is also the border despite its rich natural resources (oil, natural with the European Union. gas, coal, etc.). There are serious obstacles of Russia has several time zones with the climate, terrain and distance which hinder maximum time difference between them of exploitation of natural resources. Traditional eight hours. The geographical profile of the economic disintegration of regions arising country is a crucial factor for the media from the country’s big territory and the infrastructure, heavily affecting both the strong autonomy of local authorities also distribution of print media and transmission prevents economic progress, and many of broadcast signal. Consequently, national Russian political leaders before and after the television and radio channels are transmit- Socialist Revolution (1917) made strong ted mostly via satellites, but there also exists efforts to consolidate various regional mar- a developed system of terrestrial transmis- kets into one economy. sion located mostly in the European part of Russia is a parliamentary democracy. The Russia. Satellite earth stations provide access bicameral Federal Assembly consists of the to the Intelsat, Intersputnik, Eutelsat, Federation Council with members Inmarsat, and Orbita systems. appointed for each of eighty nine federal Russia is a federal republic, comprising administrative units and the State Duma, eighty nine federal administrative units consisting of 450 members elected every (sub’ekt federatzii) subordinate to the central four years by proportional representation government. They include twenty one from party lists (50 per cent) and from republics, six regions (krai), forty nine provinces single-member constituencies (50 per cent). (oblast), ten autonomous districts (avtonom- Political parties are numerous (more than nyi okrug), one autonomous area (avtonomnyi 150 registered with the Ministry of Justice) raion) and two cities. Since May 2000 Russia but only some of them obtain strong posi- also has been divided into seven federal tions among the Russian electorate, in parti- regions (okrug) headed by plenipotentiaries cular the left-wing Communist Party and 3103-Ch-17.qxd 11/13/03 12:22 PM Page 192

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agrarians, centrist ‘United Russia’, right-wing STRUCTURE AND OWNERSHIP Union of Right-wing Forces (SPS), ‘Yabloko’ and the nationalist Liberal Democratic Party. The dominant structure of the Soviet media Historically, Russia played an important was a pyramid hierarchy which subordi- role in European and even world politics. In nated all levels of print and broadcast media 1917 power was seized by the communists, to the central media. This pyramid was con- and the Soviet Union was established in trolled and owned by the Communist Party 1922. It played an important role in defeat- and the state, thus safeguarding the political ing the Hitler coalition in World War II and and economic functioning of Soviet society. after that it became the new centre of power The media played an important role in pro- in the post-war world. After Stalin’s death moting communist ideas among the popula- there was an attempt at ideological ‘thaw’ tion. High political involvement of the which resulted in rapid, but uneven, Soviet media was achieved under Lenin’s modernization of industry and science, guidelines, defining a newspaper as ‘a col- especially in the military sectors. The lective propagandist, collective agitator and planned Soviet economy stagnated in the collective organizer’. It was built into the following decades until M. Gorbachev intro- foundations of the media system. To ensure duced glasnost and perestroika in an attempt political accuracy media content was super- to reform the Soviet system, but he failed vised by representatives of Glavlit, the and in December 1991 the Soviet Union was special agency of the Soviet censorship. This split into fifteen independent states. Since also led to the emergence of an informal then, Russia has been struggling to build a system of self-censorship and professional democratic political system and a market norms which still affects the activity of economy to replace the political and eco- Russian media professionals. After the nomic control of the socialist period. demise of the Soviet Union, Russian media The first print newspaper Vedomosty was set experienced a radical change in structures, up in 1703 by a reformist tsar, Peter the ownership, modes of operation and profes- Great. The development of the press was sional values. strictly controlled by the political elite. Catherine the Great issued a magazine in which she promoted high moral values The print media among educated Russians. After the French Revolution, however, she suppressed most The newspaper press publications, and her son, Pavel I, introduced As a result of post-Soviet transformations, advance censorship. In the nineteenth cen- newspapers have lost their central position tury Russian journalism developed unevenly. in the media system, but they still play an The existence of censorship hindered the important role in regional and local markets. progress of the press. Until the reform of About 80 per cent of Russians read at least 1865, literary magazines predominated, and one newspaper every day. The number of private newspapers circulated only in St titles increased significantly from 4,863 in Petersburg and Moscow. The foundations of 1991 to 5,758 in 2000. However, total news- the regional structure of the newspaper paper circulation radically dropped from market were laid down in the 1850s and 1860s 160.2 million in 1990 to 108.8 million in but the system mostly included official 2000 (a decrease of 32 per cent). The clearest regional newspapers subordinate to gover- shift within the newspaper system con- nors’ offices. Only in 1880 did the number of cerned the correlation between national, newspapers come to outnumber magazines. regional and local dailies. In 1990 the share Early in the twentieth century, after the first of nationally distributed newspapers in the Russian revolution, numerous political par- national circulation was equal to 67 per ties and their newspapers began to operate cent, but it fell to 36 per cent in 2000 despite legally. Press freedom was legally introduced the fact that the total number of national in April 1917, in the course of the bourgeois newspapers increased 7.7 times during this revolution. In the Soviet period the media period. The average circulation of a national were used instrumentally to promote the newspaper diminished as well, from 2.58 dominant communist ideology, therefore million in 1990 to 118,000 in 2000 (Pecht’ their political role was extremely important RF in 2000). though different from the role of media in Russia’s vast territory and multi-layered the market democracies. administrative system are the main reasons

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for the existence of various newspaper types. the weekend editions of Komsomolskaya Two basic characteristics, namely area of dis- pravda (circulation in CIS 2.8 million) and tribution and periodicity, play an important Trud (1.58 million) and of quality analytical role in defining the type of a newspaper. news magazines such as Itogy (85,000), Expert Newspapers published in Moscow are con- (75,000), and Kommersant Vlast’ (73,500) for sidered national because of their national educated and well-paid readers. There are also distribution and national news coverage. numerous indications of existing gaps Accordingly, regional dailies cover events between mass circulation and quality news- within large administrative and economic papers in the regional and national markets. areas (oblast or krai) which coincide with Many former national dailies still have a their distribution zones. Newspapers of reputation as serious analytical media, but lower levels (city or district) have a narrow their influence is in reality marginal. With community focus. National data indicate circulation no higher than 100,000 copies, that the Russian newspaper system is com- quality dailies like Kommersant Daily (86,000) prised of national (5.8 per cent of all news- or Nezavisimaja Gazeta (50,000) cannot com- papers), republic (4.8 per cent), regional pete with local tabloids or nationally distrib- (15.2 per cent), city (29.3 per cent), rural dis- uted mass circulation dailies outside Moscow. trict (24.9 per cent), lower-level (lower than Russian newspapers and print media have city or district, e.g. factory, enterprise, etc., two basic sources of revenue: advertising 16.3 per cent) and other (mostly free non- and circulation sales. However, the shares of daily sheets, 3.7 per cent) newspapers. At the two vary considerably, since retail prices the national level, newspapers are distri- for newspaper copies are too low to cover buted by subscription; the role of retail production costs. After the financial crisis of distribution is essential only in big cities. August 1998 the Russian advertising market Regional newspapers have managed to get was almost ruined. In 1999 the total rid of pressures from Moscow newspapers and decrease in media advertising revenues was do not take them seriously as rivals for local 57 per cent compared with the year 1998. audiences. Understanding these realities, the The press suffered from advertising cuts less most profitable and innovative Moscow than did other media (40 per cent). dailies developed new modes of expansion However, in 2000 advertising revenue to local markets. Moskovsky Komsomolets started to rise and in 2001 expenditure on (1,400,000), Komsomolskaya Pravda (daily cir- advertising reached US$ 1.73 million. The culation in CIS 756,000), Izvestiya (234,500) volume of newspaper advertising was equal have started to produce regional inserts and to US$ 310 million (29 per cent growth com- established joint distribution systems with pared with the previous year). Nevertheless, regional leaders. While many Moscow dailies the advertising market share of Russian promote themselves as national, their distrib- newspapers – 18 per cent – is lower than the ution is restricted to the capital area and to share of television (28 per cent). some industrial centres of central Russia. The Taking into account the limited size of the largest share of readers of nationally distrib- commercial advertising market, the uneven uted Moscow dailies (40.2 per cent) outside the and complicated state of the national econ- capital is represented by state and municipal omy as well as the low purchasing capacity officials, political activists, high and middle- of Russians it is important to point to other level managers, intellectuals and students sources of income less traditional in condi- (Resnyanskaya and Fomicheva, 1999: 97). tions of a market economy. They are: Newspaper markets in many regional cen- tres are characterized by competition between regional newspapers themselves and between regional and national dailies. At the regional 1 A considerable amount of hidden level, competition occurs between former advertising which poses serious Soviet dailies, still owned and controlled by moral problems for media profession- local authorities, and private newspapers set als and negatively affects the reliabil- up in post-Soviet years. However, in many ity of the Russian press and media in families the reading of a regional/local daily is general. often supplemented by the reading of a 2 Political advertising, especially impor- national weekly. This is true both of mass tant to the regional and local press circulation newspapers targeted for wider during local election campaigns. audiences like Argumenty i Facty (3 million),

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largest print media companies (Vartanova, 3 In-house subsidies from profitable 2001: 134). A unique media proprietor non-media affiliates such as resource nowadays is the Russian state. State agencies or financial sectors, industrial or completely or partly control 300 national, service enterprises. regional and local television companies and 4 State and municipal subsidies. 2,140 print media (15 per cent of all print 5 Hidden or informal financial support media titles). The central government holds to regional and local newspapers by a 100 per cent stake in Rossiiskaya gazeta, the the executive power. ITAR-TASS news agency, the VGTRK broad- casting company and a number of related businesses.

In the 1990s the free press including both advertising sheets and free dailies demon- The periodical and magazine press strated progress in competition for advertis- The rise of weeklies has become a response ing money and audience attention with to various problems of the post-Soviet traditional newspapers. Mass circulation period, but mostly to the problem of costly advertising papers offer job vacancies, and late distribution which negatively second-hand cars, apartments, and therefore affected the position of dailies. Russian they have come to reach about 40 per cent weekly newspapers are reminiscent of of adults. The Moscow underground daily Britain’s mass circulation tabloids not only Metro (500,000) has captured the second in format and large circulation but also in biggest share – 4.5 per cent – of the Moscow content and style of writing. Argumenti i daily market. Facty (AiF, circulation about 3 million) is not Compared with other countries, the only the most popular but also one of the degree of concentration in the newspaper most economically viable media outlets. It market may seem rather low. However, there has created a variety of thematic offsprings are not enough reliable statistics to illustrate on health, gardening, leisure and family the trend. Until now no substantial studies issues. Newspapers of the ‘AiF family’ built to measure the level of concentration have up their success by including regional inserts been conducted at the national level. to better satisfy readers’ interest in national However, there is evidence of increasing and regional information, but also to stimu- concentration in the newspaper industry. In late regional distribution and advertising the 1990s four Moscow-based newspaper revenue. Other popular weeklies like Mir companies seized the leading positions in novostei (850,000) or Megapolis-Ekspress the national market by creating diversified (500,000) try to pursue the same strategy but companies with ownership in different with much more scandalous stories and less media. Prof-Media, a media branch under success in national distribution. the financial umbrella of the largest oil com- The market for popular magazines is devel- pany, LukOil, acquired more than forty oping by filling up various thematic niches. newspapers and magazines in Moscow and Illustrated television guides, a relatively new other cities, television channels in Rostov, type of weekly magazine, triumphed as the Norilsk, several radio stations, numerous most popular publications. The rivalry Internet sites, a business news agency. The between 7 dnei (1 million plus), Antenna total circulation of print media outlets pub- (487,000), TV park (298,000) and Tsvetnoi tele- lished by the company has already passed 50 vizor (162,000) is fierce, but still newcomers million. The company’s share of the print appear, making the situation truly competi- media retail market – nearly 20 per cent – is tive. The unmistakably most successful target also among the top indicators. The Speed- audience in Russia are women, and Liza Info Company, specializing in publishing (90,000), a weekly with a mixture of practical sensational tabloid weeklies and magazines, advice for working females, cookbook sum- is regarded as the second largest print media maries and fashion patterns, is the most pop- company in terms of the gross circulation of ular among magazines. Glossy magazines its outlets (over 8 million). The Argumenty i represent a comparatively small but vigorous Fakty newspaper holding company (forty sector of the magazine industry. The impor- two periodicals with total circulation 6.4 tance of the Western experience was crucial million) and the Redaktsiya gazety MK share to their success. The German company holding company (69 periodicals with a Burda (23 per cent of the magazine retail), total circulation 2.35 million) are the next the Dutch-owned company Independent

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Media (nearly 5 per cent of retail) have the most powerful medium, with 94 per adapted to the Russian market a set of well cent of Russians watching television every known international periodicals like Burda day. The average time spent watching tele- moden, Playboy, Good Housekeeping, Harper’s vision is nearly three and a half hours a Bazaar and Cosmopolitan. In 2000 the day. Ninety-nine per cent of Russian growth of advertising revenue in the Russian households have at least one television set magazine industry was 43 per cent, the and half of all households have two or second indicator within the media industry more; about two-thirds have colour sets, after television. but 45 per cent still possess black-and- white sets. The number of television sets Book publishing per thousand people is 421, and compared Russian book publishing lived through a with other post-socialist countries of crisis period in the 1990s. The state has Eastern and Central Europe this is close to almost withdrawn from the industry, and the average. many state-owned publishing houses have All basic systems of television transmis- almost lost their position in the market. At sion, including air, satellite, cable and the moment they produce no more than 18 Internet, exist in Russia but they are very per cent of all titles and about 15 per cent of unevenly spread across the territory. the total book production. Thus the com- Major national television channels are petitive structure of the Russian book pub- transmitted from the Ostankino tower in lishing industry leaves space for numerous Moscow through terrestrial networks to small and medium-size companies specializ- cities in the European part and are also ing in textbooks, encyclopedias, technical sent out via satellite to regions in Siberia and business books. On the other hand, as a and the Far East. Regional and local sta- result of growing concentration private pub- tions mostly broadcast their programmes lishers like the Vagrius, Drofa and Olma- on the air. Press gained leading positions in the market According to the data provided by the by promoting post-Soviet best-sellers about Ministry of Press and Broadcasting, the total the Russian ‘mafia’ and criminality. number of broadcast licences issued in 2002 V. Dotsenko’s detective stories about ‘Furious’ was 1,276 for television broadcasting and paved the way for mass circulation low- 1,002 for radio broadcasting. However, the quality novels by adapting commercialized figures are approximate, as they do not indi- Western formats and promotion patterns to cate the number of operating stations. The Russian realities. A female policy analyst, a core of the national television market is hero of A. Malinina’s criminal novels, comprised of nine channels available to became popular because of her non-heroic more than 50 per cent of the population. but independent individuality, thus secur- They include: ing the highest book sales in post-Soviet Russia at the level of 26 million copies. The top positions in national retail lists are traditionally occupied by Russian and 1 Three all-national federal channels, foreign classic novels, but there is a growing though of different ownership: tendency towards ‘entertainization’ result- Obshestvennoye Rossiiskoye Tele- ing in the increasing production of mostly videnie (ORT, Public Russian domestic ‘light’ science fiction, fantasy, Television) with a mixed structure of women’s novels and detective stories. The state and private shareholders, the variety of titles, flexibility in response to state Rossiiskoye Televidenie (RTR, demand, diversity of formats ranging from Russian Television), and the private illustrated hard-cover art albums to pocket- NTV. size paperbacks have become the main 2 Four federal television networks: TVS, features of Russian book publishing broadcasting on the frequency previ- (Alekseyeva, 2000: 121). ously given to TV-6 and being its suc- cessor, Ren-TV, CTC and TNT. The electronic (audio-visual) media 3 Two regional channels with national distribution: the state-owned and financed Kultura (Culture) and the Television Moscow municipal TVC (TV Centre). In recent years Russian television has taken the central place in the media system. It is 195 3103-Ch-17.qxd 11/13/03 12:22 PM Page 196

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Historically, the dual state–Communist Russians. NTV is available to nearly 75 per Party dominance remained the most signifi- cent of the population. Three other channels cant feature distinguishing the Soviet tele- transmitted from Moscow have also secured vision model from the two major models, firm positions at the federal level: TVS is e.g. the US privately owned commercial and received by almost 60 per cent of all Western European public service models. Russians, TVC by 39 per cent and Kultura by The concept of public service broadcasting 36 per cent. However, technical availability as a possible form of television industry was and the popularity of channels essentially never considered publicly until the year differ: 41 per cent of Russians prefer ORT to 2000, since state control of television was other channels. It is followed by NTV (25 per and still is used to safeguard existing politi- cent), RTR (13 per cent) and commercial net- cal elites. works (altogether, 11 per cent). It is notable The state remains the main actor in the that 6 per cent of the audience has no consis- television business. By controlling the hold- tently voiced preference. ing company VGTRK it has control over two The Moscow-based private television compa- nationally distributed television channels – nies Ren-TV, STS and TNT have also attained RTR and Kultura, the radio channel Radio national penetration but at lower rates. They Rossiyi – and partly over the radio news operate as commercial networks, forming channel Mayak, in which it owns more than alliances with regional and local stations tar- 50 per cent of the shares. VGTRK also geted at joint programming and advertising includes a network of sixty eight state- policies. This results in the complete predomi- controlled regional television stations and nance of Moscow channels in national and in 100 centres for the transmission of television many cases also in regional broadcasting. In and radio signals. In 2001 the structure of the terms of programming, the competition for company was transformed and the transmis- viewers among major channels is especially sion centres were separated into an indepen- intense among evening news and current affairs dent company. In 2000, VGTRK employed programmes and political reviews on Sunday more than 4,000 people. In 2001–2 the com- evenings. The growing popularity of entertain- pany started experiments with digital televi- ment genres, cultural and non-political pro- sion but the lack of financial resourses makes grammes compared with political ones in the this activity really marginal. early days of glasnost has brought to light both Despite control over programming poli- the rebirth of old Soviet attitudes towards tele- cies and the appointment of top manage- vision as a home art and aesthetic medium ment, the state cannot completely finance and the revelation of the global trend towards the activities of RTR and ORT (it provides television infotainment. subsidies to both channels and 30 per cent Not surprisingly, the development of of the operating costs of RTR), and they have regional television has grown into a kind of to attract advertising. Their strong position indicator of the economic situation in the in the advertising market is obvious and the regions. The most advanced and wealthy unfair competition is heavily criticized by parts of the country are characterized by the privately owned channels, but for now state- highest numbers of private television chan- controlled television dominates the national nels. Out of all eighty nine regions, territo- airwaves. More than 50 per cent of viewing ries and republics of the Russian Federation, time is provided by ORT and RTR; 70 per only twelve economically underdeveloped cent of television advertising revenue is regions do not have any non-state television received by them as well. In the budget channels. In the most developed fifteen structure of modern Russian television, regions, including Moscow and St Petersburg, advertising and sponsorship provide the the number of television programmes ranges largest revenue source. between a maximum of fifty eight in the National channels operate as television capital and fifty seven in the Krasnodar networks, although three all-national region to approximately fifteen in the Tver, brands, ORT, RTR and NTV, operate as net- Vladimir and Novosibirsk regions and works only in technical terms. The national Bashkortostan. The overall number of chan- status of the three is secured by their techni- nels available in these regions ranges from cal availability. Practically all Russians twenty to seventy two (Freedom of Speech receive two national channels: ORT is avail- Audit, 2000). able to 98 per cent of the whole population, The new realities of the commercial televi- and RTR is received by 95 per cent of sion market have proved the interdependence

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of programming policy and the tastes of systems operated on a semi-legal base and viewers. The preferences of Russians are sim- offered a variety of previously unknown ilar, in general, to those of the television genres, chiefly pirated American movies, audience in many European countries. For entertainment, music and pornographic an average Russian, television is one of the programmes. Even in a rudimentary form major ways of spending leisure time. In the new cable systems caused serious problems course of time this tendency is gaining in for the major television channels mostly in influence, reflecting a different perception terms of audience attitudes. Cable networks of television by politicians, those in power, were the first to pave the way for more indi- and the audience. Sociological surveys show vidualized patterns of viewing and to pro- that Russians tend to watch more feature mote video as an alternative to national films, entertainment, family, cultural, edu- television. cational, children’s and sports programmes. Cable television was seriously affected by The shift away from politics towards ‘enter- the crisis of August 1998, but in subsequent tainization’ is obvious (Rantanen, 2002). years the interest of private operators grew A particularly entertaining role of Russian significantly. In sum, the state and munici- television is illustrated by the fact that an pal authorities have issued 258 licenses for average citizen traditionally watches a lot cable television networks, eighteen for satel- of feature films on television. In recent lite transmission and twenty for combined years domestic movies have outnumbered air and cable operations, but statistics show American ones. Popular Soviet films, mostly that there are 3,000 relatively large cable comedies and melodramas, make up a kind companies operating and delivering pro- of ‘Golden Top Thirty’, each broadcast by grammes to nearly 12 million households. national channels fifteen to twenty times in The choice of programmes remains fairly the last five years. The top managers of the limited, but the lack of specific regulation leading television channels even claim that and uncertain financial basis (viewers not they try to co-ordinate schedules for broad- ready to subscribe and advertisers sceptical casting these ‘best-showers’. Consequently, of cable networks’ competitiveness) have an the key resource that helps national channels impact on the state of the industry. to keep friendly relations with the audience is The development of satellite television in made up of popular Soviet movies and new Russia is very slow compared with most Russian low-budget serials which are increas- European states. The two leading compa- ingly challenging content imported from the nies, NTV Plus and Kosmos-TV, could attract United States and Latin America. an audience only in Moscow and several big In relation to the principles of public cities. Their programming offers do not vary service broadcasting, the Russian situation much and include Russian-language pro- remains truly controversial. Commercial grammes and the most popular inter- interests challenged the national television, national channels like CNN, BBC World, consequently advertising and entertaining Euronews, Discovery, Cartoon Channel, etc. genres (talk and quiz shows, soap operas, seri- als, reality shows) dominate all programme Radio schedules, commercial and state channels Today, radio enjoys more popularity than alike. The only channel which carries non- ever before. In 1999, 82 per cent of Russians commercial programmes (high culture, elitist listened to radio because, in their view, it films, quality documentaries, classical music) meets the requirements of the audience is the state-run Kultura. By including better than television. 76.9 per cent of Euronews news shows in its programming Russians are satisfied by radio programmes schedule (2000) Kultura came close to the while only 65 per cent hold a similar opin- idea of public service in television. ion about television. Terrestrial television will undoubtedly Commercial-format radio based on pop enjoy a central position in the media system music and advertisements began to make its for the foreseeable future, but the role of appearance in the major cities in 1990. cable and satellite alternatives is also Evropa plyus created the first radio network expected to increase. The cable sector began with a clear commercial focus on serving the to develop in 1989–1990 on the basis of the music tastes of its well defined target audi- particular technical infrastructure of the late ence based on definite parameters such as Soviet period, when collective cable systems age, income and education level. Ekho were installed in apartment blocks. Cable Moskvy integrated the programming and

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polemic experience of Soviet political radio, 1995. In these years many cinemas were Western news criteria and music formats. transformed into night clubs, discos, or closed The present structure of the radio industry down. By the end of the 1990s in some big involves a mixture of state and private chan- cities, including Moscow, there emerged signs nels. The state channel Radio Rossiyi, of revival. After the renovation of some received by 66 per cent of the population, cinemas, moviegoing is becoming a fashion- and Mayak (55 per cent) retain their posi- able way of spending free time. The most tion as the major national channels with the modern cinemas are operated by two Russian largest reach. Their almost universal techni- rental networks – Imperia Kino and Karo- cal accessibility is the main reason for their Premier. Foreign films are imported mostly popularity. In many cities access is provided from Hollywood companies, but the French through the still existent connections of Unifrance is also an active foreign player in home radio receivers with radio cable net- the Russian movie market, which is supposed works created in the Soviet era. Another to become the largest in Europe. reason to legitimize the predominance of In 1991 the Russian state was almost a state-controlled radio channels is their infor- monopolist in the film market, but in 1996 mal fulfilment of public service obligations. domestic films almost disappeared from cin- Radio Rossiyi has drama and classical music emas (8 per cent market share), and the as visible components of its programming share increased only slightly in 2000 (20 per policy and Mayak is well known for its infor- cent). The enormous popularity of Western, mation and news programmes, which especially American, movie formats did not undoubtedly remain the most diverse in the last long and in the late 1990s Russians national radio landscape. began to express nostalgia for domestic In the radio sector a significant role is films. Currently, thanks to increasing state played by commercial networks. The success support, the production of Russian films is of the Russkoye radio network formed of growing in terms of both quality and audi- 257 local stations is ensured mostly by ence demand. The most appreciated by the music programming based upon Russian public and critics at home have been Brother pop and light music. The network has risen II by A. Balabanov, Burnt by the Sun (the to third national radio channel (45 per cent Oscar winner in 1996) and The Barber of reach) and Evropa plyus has become the Siberia by N. Mikhalkov, The Delicate Age by fourth (43 per cent). In big cities commercial S. Soloviev and Moloch by A. Sokurov. music radio stations have succeeded because of increased professionalism in developing The Internet and formats and establishing relations with both related on-line media advertisers and listeners. Other stations gained popularity among specific audiences, The Russian-language sector of the Internet, positioning themselves as sources of special- Runet, has become the clearest indicator of ist programmes like women’s interest the latest media changes. Technically it (Nadezhda), drivers’ radio (Avtoradio) or existed in the Soviet Union as an academic religious channels (Radonezh). The general computer network with a very limited increase in the number of commercial radio access. Use of the Internet increased greatly stations has been accompanied by growth in between 1993 and 1997, when the number the advertising money channelled to radio. of users doubled each year. Now the maxi- Today almost 21 per cent of local advertising mum number of users stands close to 12.8 goes to local radio stations. million (8.8 per cent of population). The progress of the Internet initially took place Film in big cities, especially in Moscow, but in The film industry survived the problems of recent years the inequality of geographical post-Soviet transition. Cinemagoing was one regions has been steadily decreasing. Now of the most popular leisure activities in the residents of Moscow and St Petersburg repre- Soviet Union. The average citizen went to sent less than 20 per cent of Russian users. the cinema twenty times a year. By the end of The share of female users stands close to the 1980s the popularity of cinemas began to almost 40 per cent. However, users are mostly decline but the real crisis occurred in the early educated, better-paid urban male residents 1990s when state financing of the industry (aged twenty to thirty-five), including state came almost to an end. Domestic production officials, politicians, businessmen, journal- dropped from 178 films in 1992 to forty six in ists, students and schoolchildren.

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The Russian media have made up the core associations of the media industry and of the Runet. Several popular newspapers unions of journalists. The main regulatory like the Nezavisimaya Gazeta began to agency in the field is the Ministry of Press, explore the Internet as early as 1994. The Broadcasting and Mass Communications. Its first on-line media projects were started by main tasks are to issue licences for broad- postmodernist literary writers who launched casting and for some printing activities, to the Russkii Zhurnal. At the time of writing register media outlets and to distribute a there are about fifty television companies, number of subsidies. The number of indus- sixty radio sites, thirty three Internet news try and professional associations is growing; agencies and almost 1,200 newspapers, of among them the most influential are the which 70 per cent represent the Internet Guild of Publishers, Russian Book Printing versions of paper publications (defined as Union, National Association of Broad- ‘clones’ and ‘hybrids’) and the rest are casters, Association of Advertisers, Russian Internet-only papers (‘originals’). The most Association of Advertising Agencies, Union popular on-line sources are RBK.ru, of Journalists and Media Soyuz. Gazeta.ru, List.ru, Lenta.ru and Polit.ru. After the disintegration of the Soviet They have no analogues in the traditional Union in 1991, media policy experienced a media and, owing to constant updating of radical change, and new strategic goals and information, objectivity and non-political ways to accomplish them had to be identi- involvement successfully compete with ana- fied. However, Russian legislators had to logue media. Today the Runet contains begin by setting up the basic legal condi- almost infinite content resources in the tions for the media to operate in the new Russian language and the languages of other political and economic conditions. About ethnic groups. thirty federal statutes for the mass media The active role of the Internet news field were adopted by the Duma in media in the parliamentary (1999) and 1991–2000, thus creating a sound and oper- presidential (2000) elections was especially ational but slightly controversial basis for important for the media. Several sites run the mass media. by the state-supported Fond Effectivnoi The new Russian media legislation has politiki played a propagandistic role in the inherited the basic values of the Soviet Law creation of public images of leading politi- on Press and other Media (1990), the most cians. Through the Internet political significant achievement of the glasnost image makers appealed directly to those media policy initiated by M. Gorbachev. It forming public opinion, mostly journalists guaranteed freedom of speech, freedom of and intellectuals. The Internet served as a expression and abolished censorship com- mediator between the political powers and pletely. The law also introduced private this important but limited part of Russian ownership in the media and declared edi- society. Citing from on-line sites made tors’ and journalists’ independence from available by the traditional media during media owners. the election campaigns guaranteed the The law lasted until the fall of the Soviet enormous popularity of the Net. On Union and was replaced by the Law of the the other hand, the political use of the Russian Federation on the Mass Media Internet led to very critical attitudes on which came into force on 27 December the part of users. Today, many Russians 1991 (Nordenstreng et al., 2001: 218–50). consider information from the Internet During the 1990s the media had a definite rather unreliable. Of all Russian users, slant towards a personal approach by politi- 36 per cent do trust Internet information, cians and state executives which had its his- while 35 per cent do not trust anything on torical roots in the instrumental use of the the Net. media by Russian decision makers. The key feature of the media situation in the 1990s was the great personal influence of B. Yeltsin, the first President of the Russian POLITICS, POLICY, Federation. In many cases he supported a media policy tolerant of the creation of LAW AND REGULATION media offshoots by political and financial ‘oligarchs’. This was exactly the case of The central actors in media policy are media concentration in 1994–8 when large the state Duma, government bodies, media empires owned by B. Berezovsky

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(through the Logovaz or Ob’edinenniy The second stage of media policy Bank companies), V. Gousinsky (Media- (1994–5) is mainly associated with the pri- Most) and V. Potanin (Oneksim) emerged vatization of the economy that also under the umbrella of privatized industrial involved denationalization of the first or new financial companies. The ‘oligarchs’ channel of the national television. It struggle for political influence, new prop- showed the growing tolerance by the state erty and financial advantage was supported of concentration of the media in the hands by the activity of their media outlets. of ‘oligarchs’. The media politics of the Yeltsin’s re-election in 1996 became a kind third stage (1995–6) was entirely deter- of a reward from the ‘oligarchs’, whose mined by the necessity to ensure the re-elec- media effectively manipulated public opin- tion of Yeltsin. State legislative activity, in ion during the election campaign in condi- particular, included the adoption of the tions of Yeltsin’s dramatically low approval presidential decree on the full-time licence rating. for the national Channel 4 to NTV in viola- Aside from personal interventions, the tion of existing procedures. However, at this development of media policy in post-Soviet period two statutes on economic support Russia also became a multi-faceted societal for the press came into force. Although sub- process which gradually combined the sidies were not enough to cope with the cri- results of the constructive and destructive sis, the attention paid to the economic activity of legislators, politicians, state offi- problems of the print media was notewor- cials and media professionals, and an emerg- thy. The fourth stage of media policy ing, but still weak, civil society. In relation to (1996–9) was characterized by safeguarding the immediate tasks of the political elite, the the status quo in media policy. The princi- construction of media regulation might be pal role of the executive in media regulation divided into four distinct stages (Richter, and the dominance of state-run media 2001: 116–26). became the main features of the The first stage (1990–3) was characterized situation. President Yeltsin viewed himself by Yeltsin’s fight to free the media from the as the guarantor of constitutional rights, control of the Soviet Communist Party and including certainly freedom of speech. central authorities. This was especially true Besides, the personal involvement of state of the last Soviet years when Yeltsin strongly officials remained essential. This was espe- opposed Gorbachev. Two laws mentioned cially true of the non-transparent system of above, the revolutionary Soviet Law on the issuing broadcasting licences at the federal Press and other Mass Media and the Russian and regional levels and of the distribution Law on the Mass Media, became of predom- of state and municipal subsidies among inant importance for all media. Since then, loyal newspapers. however, no detailed specific regulation of Lobbying by business was the factor individual media has been elaborated. In behind the adoption of, or hindrances to, a particular, Russia still lacks laws to regulate number of Bills (the Law on Advertising, Law issues regarding access to information and on the Dissemination of Products of a Sexual broadcasting. Character). Lobbying of government bodies After the foundations of media activity was also a factor behind some statutes were laid down, documents to regulate (the Law on Information, Informatization some particular issues were adopted. and the Protection of Information, on They were the 1993 Copyright Statute Communications). At the regional and local and Decree on Minimum Standard of levels this was proved by the existence of Requirements for Television and Radio specific local regulation used by federal and Broadcasting (March 1993). In the new con- local authorities together with corporate stitution of 1993 (Article 29) among other business to exert fierce informal pressure basic rights and freedoms guarantees of free on local media, especially during election speech and a free press were provided as campaigns. well. Yeltsin’s personal approach to instru- There is clear evidence that the fifth stage mentally use the ‘free media’ was revealed began after the parliamentary (1999) and in his decision to set up the Judicial presidential (2000) elections by strengthen- Chamber on Informational Disputes ing the role of government bodies and (December 1993, abolished in June 2000). Presidential Administration (PA) in media

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policy. On the one hand, numerous official national development, the Concept of statements were made about the eventual Building the Information Society in Russia withdrawal of the state from the media (1999) and the Doctrine of Information industry and closing the Ministry for Press, Security of the Russian Federation (2000). Two Broadcasting and Mass Communications. profound federal programmes to develop This should secure fair competition and pro- ICT and the Internet were approved by the vide equal conditions for all companies in government in 2001. They are ‘Electronic the media market. On the other hand, the Russia in the Years 2002–2010’ and ‘The government and PA are intensifying their Development of the Unified Information efforts to determine policy for the media and Educational Space in 2001–2005’. The more efficiently. They have already inspired documents reflect a new understanding of a number of draft laws (on the Internet, on the key role of info-communications and restrictions on foreign ownership of the the Internet in developing civil society, pro- media, a new version of the media law) moting a power–citizen dialogue and aimed to increase the role of state decision increasing the effectiveness of education. making under the flagship of protecting the Self-regulation exists in the form of the ‘national interests’. code of practice adopted by the Union of The dichotomy between étatism and the Journalists and the codes of professional market-driven economy is undoubtedly a associations (National Association of Broad- distinct feature of Russian media policy. casters, Russian Association of Advertising Examples are numerous. Journalists’ and Agencies) or the informal professional civil society organizations emphasize the requirements of media companies (NTV, importance of public service broadcasting, Interfax news agency). Although basic prin- but they have to reckon with the commer- ciples formally correspond to general princi- cial interests of corporations and advertisers ples, the relevance of self-regulation in who aggressively protect their presence in Russian conditions is very low. The eco- national television. Lack of state financial nomic difficulties of the media industry are support became the reason for successful the main reasons for the general decline in lobbying for the new integrated taxation for standards and the acceptance of concealed the print media conducted by media indus- advertising as an addition to the low salaries try associations (since 2002). While finan- of journalists. cially viable enterprises have obviously Media policy trends are contradictory. On benefited, small and medium-size media the one hand, they are directed towards companies are facing new financial risks. In strengthening market-based principles in the relation to this, the attempt to create a pow- economics of the media, with the eventual erful media lobby of media associations is removal of the state from the media business. considered to be an important stage in However, it is hard to believe that fair com- Russian media policy. petition and transparency would be realized In two media sectors, film and the under conditions of growing commercializa- Internet, state interference is accepted more tion and concentration of the media positively. In the film industry the govern- business. Increased attempts to form a pow- ment has introduced (2001) tax exemptions erful media lobby are another reason to be for investment in film production with the sceptical. aim of increasing the number of domestic On the other hand, the state has to films and to foster the construction of a become a more active actor in future media new film studio in Sochi with the most policy. Under present conditions some state advanced equipment to eventually produce interventions such as support for satellite twenty to thirty films a year to replace all and digital television, safeguarding media the southern studios lost after the collapse diversity, encouraging domestic film pro- of the Soviet Union. In the area of ICT and duction, providing universal public access to the Internet political documents are numer- the Internet are demanded by society. ous, including the Concept of State However, any interference in the activity of Information Policy (1998), a document which media companies, manipulation of news was the first to introduce the building of the flows or media content is viewed as an information society as a major goal of infringement of basic human rights.

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STATISTICS

National population 146,100,000 Number of households 45,300,000 Cinema admissions n.a Books published (titles) 67,000

Print media Circulation of main national daily newspapers Komsomolets 1,400,000 Komsomolskaya Pravda 756,000 Izvestiya 234,000 Kommersant Daily 86,000 Nezavisimaya Gazeta 50,000 Metro 500,000

Broadcast Audience share of main national television channels (%) media ORT (state) 41 RTR (state) 13 NTV (private) 25 Audience share of main national radio channels (%) Radio Rossiyi (state) 40 Mayak (state) 28 Russkoye Radio (private) 26 Europa Plus (private) 21 Percentage of households reached by satellite television, cable or pay-television 20 Percentage of households with: Video-cassette recorder 25 Satellite receiver n.a. DVD n.a.

Electronic Digital television reception n.a. media Internet use 9 Mobile phone ownership n.a.

Advertising Television 28 spend, 2001 Press 18 Radio n.a. Other n.a.

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REFERENCES Resnyanskaya, L. and Fomicheva, I. (1999) Gazeta dlya vsei Rossii (Newspaper for the Whole Alekseyeva, M. (2000) ‘Knigoizdaniye Rossii na Russia). Moscow: IKAR. rubezhe vekov’ (Russian book publishing in the Richter, A. (2001) ‘Media regulation: foundation threshold of centuries) in Y. Zassoursky and E. laid for free speech’ in K. Nordenstreng, Vartanova (eds) Ot knigi do interneta (From print E. Vartanova and Y. Zassoursky (eds) Russian books to the Internet). Moscow: Moscow Media Challenge. Helsinki: Kikimora. University Press. Sredstva massovoi informatsii Rossii (1997) Analiz, Dialog (2002) ‘Industriya rossiiskich sredstv tendentsii, prognozy. massovoi informatsii’ (The Russian mass media UNESCO (2000) Statistical yearbook, 2000. Paris: industry), draft report, Russian–American Media Unesco. Enterpreneurship Dialogue. http://www.smi. Vartanova, E. (2001) ‘Post-Soviet media model in rusmedia.ru/industrial. Russia: diversity of structures, variety of Freedom of Speech Audit (2000). pressures’ in Yassen N. Zassoursky and Elena Nordenstreng, K., Vartanova, E. and Zassoursky, Vartanova (eds) Media for the Open Society. Y., eds (2001) Russian Media Challenge. Helsinki: West–East and North–South Interface. Moscow: Kikimora. Faculty of Journalism/Ikar. Pecht’ Rossiyiskoi Federtsii v 2000 godu (The press of Yevstafiev, V. (2002) ‘Reklamnyi rynok v 2001 the Russian Federation in 2000) (2001) godu’ (The advertising market in 2001), Vestnik Moscow: Rossiyiskaya knizhnaya palata. Moskovskogo Universiteta, series Zhournalistika, Rantanen, T. (2002) The Global and the National: 3: 74–6. Media and Communication in post-Communist Russia. Lanham MD: Rowman & Littlefield.

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18: Slovakia

ANDREJ ŠKOLKAY

NATIONAL PROFILE of listening to foreign broadcasts, especially Czech- and Slovak-language programmes transmitted by the Voice of America, Radio Slovakia became a fully independent state Free Europe (RFE) and the BBC. Importantly, on 1 January 1993, but its economic and the number of listeners to Western radio cultural development was different from broadcast stations significantly increased in other regions of the states it was part of the 1980s, i.e. during the growing internal, during the twentieth century. Consequently, although mostly less visible, crisis of com- the print media and – to a lesser degree – munism in Czechoslovakia (see Názory 2 (2) broadcast media have reflected this differ- 1991: 32). By contrast, in June 1989 the ence. It was also partly due to a different unofficial opposition press (samizdat) was language and partly due to different issues. read regularly only by 1 per cent of the pop- Radio broadcasting has played a very impor- ulation, while 8 per cent read this press very tant role in politics and in cultural life occasionally (Krejcí,‹ 1991). This tradition in Slovakia, argues historian Ivan Kamenec had some important impact on the role of (2001). Táborský (1961: 551) believes that radio broadcasting in the first crucial years radio listening was always more widespread of the transformation of society. Although in Czechoslovakia than in other countries Slovakia has become effectively a typical of Eastern Europe, and there has been a television media culture country by the steady and substantial rise in the ownership 1990s, it has sustained higher programme of radio receivers in the post-war years. quality and higher political independence of Johnson (1995: 223) argued that during the public radio to this today. reform movement in Czechoslovakia in For historical reasons there is a large 9.7 1968 people voted for democracy by listen- per cent ethnic Hungarian population in ing to the radio newscast in the evening, a Slovakia. These Hungarian-speaking citizens newscast they viewed as independent. primarily rely on Hungarian and secondarily Television’s impact was smaller, since on Slovak-Hungarian media or Slovak lan- only about half of households had it, and guage media. they were unevenly distributed across the Because of the hilly terrain terrestrial country. There seems to be agreement that broadcasting costs about the same as in the during the communist era radio broadcast- geographically twice as large Czech Republic. ing was a major source of independent news This fact certainly contributes to the finan- from abroad. Thus Brown and Wightman cial weakness of both public service broad- (1979: 185) argue that when censorship casters, but especially television, which by within Czechoslovakia itself withered away law has to cover the whole territory. in 1968, only 17 per cent of Czechoslovak There is widespread corruption in the respondents listened to foreign broadcasts. Slovak media. It is not clear whether some This contrasts with 47 per cent in June 1967 editors are first of all businessmen or indeed and 56 per cent in March 1969. Similarly, guarding some ethical rules. It is not Köpplová et al. (1993: 203) argue that in unusual to find adversials, i.e. articles pre- sharp contrast to the established custom sented as journalism but in fact mixing, at towards the press was the widespread habit best, journalism with advertisements. This is 3103-Ch-18.qxd 11/13/03 12:22 PM Page 205

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related to lack of professional management trend from the late 1990s was facilitated by and the sometimes questionable indepen- a trend from the early 1990s, when for polit- dence of the media. It is particularly prob- ical reasons many of the older generation of lematic outside the capital, Bratislava, where media professionals were forced to leave it is difficult to find a job. There are two their jobs, especially in television. For these dominant television companies, one private reasons, but also because of the boom in the (TV Markíza) and one public (STV, with two media market, there are a large number of channels, STV-1 and STV-2). There is one young journalists in the media. Ironically, dominant radio station which belongs to many of these journalists have no university the public Slovak Radio, SRo (with five education, including a few of the best ones. major channels, plus foreign broadcast and There is no potential new market of on-line broadcast), followed at some dis- readers for the daily press. Not even young tance by three nationally important private people read newspapers as relatively often as radio stations. In some regions regional they did in the past. The weeklies benefit radio stations are more important than from daily newspapers’ reporting and the these national private radio stations. There tendency among readers to get some sum- are three important daily newspapers out of mary information once a week. Often, a total of less than twenty daily newspapers, weekly newspapers take tips from daily including regional daily papers. There is a papers or only put together daily reporting relatively important daily and weekly of dailies in the past few days and add some regional press. The first private radio – Fun photographs. Radio – started broadcasting on 10 June In an effort to decrease costs, some news- 1990, without proper legal regulation at the papers have already established their own time. There were twenty five private radio printing plants. Although foreign owners stations broadcasting including foreign affil- seem to be more balanced in the level of iations during 2001, but one radio station politicization of their media, these owners ceased broadcasting in early 2001. There is are not immune to attempts to co-operate one state-sponsored wire agency, TA SR, and with politicians nor, at a minimum, do they one private agency, SITA (established on 15 forget to take into account the possible January 1997). impact of criticism of the political parties in The specific feature of Slovak media is low power on their business activities. transparency of ownership, especially of the press. An oddity is that although after long deliberations there is a voluntary system of verifying the circulation of print media, nei- STRUCTURE AND OWNERSHIP ther clients nor customers are really inter- ested in the data. There are three reasons for The print media this phenomenon. First, not all print media are included in the process. Secondly, some While there were 326 registered titles of believe that some competitors still do not print media in 1989, the registered number behave fairly, but sell part of the print run to of periodicals was 1,465, with an overall cir- some quasi-buyers. Thirdly, when there is a culation of 487 million copies in 2000. period of collection of statistical data, some However, some media exist only for a short publishers increase their print runs. time. The most used second language in The government has no clear media policy. newspaper publishing was Hungarian. There This applies both to the daily press (for exam- was one daily newspaper (Új Szó), five week- ple, there are no subsidies) and to the public lies, and ten other newspapers published in electronic media, especially television. the Hungarian language. In addition, there The daily press, and some smaller radio were six weeklies published bilingually in stations, often serve as free-of-charge train- Slovak and Hungarian, and ten additional ing centres for larger media. Once young newspapers published less often but in both journalists get enough experience, those the Slovak and Hungarian languages (Vybrané who are best and brightest move into the ukazovatele, 2000: 21). electronic media, especially television. In addition, a significant number of journalists The newspaper press moved to jobs in press departments after the Following the UNESCO definition, there 1998 parliamentary elections and to PR were 451 newspapers with a circulation of agencies throughout the last decade. This 281.5 million copies in 2000. The number of

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newspapers decreased by eighteen, and their of some pages of major daily newspapers circulation decreased by 35,500 copies in (Nový èas, Pravda, Sme) and some less popu- comparison with the previous year (Vybrané lar newspapers (Práca, Hospodárske noviny). ukazovatele, 2000: 7). Of the 451 newspapers, The print media, especially the daily press, sixteen were published five to seven times a owing to its smaller circulation and smaller week, 100 were published once or twice a market, is very little resistant to pressure week, and the rest were published less from advertising agencies for special rates. frequently. These newspapers had a total cir- Many print media suffered heavy losses culation of over 205 million copies. In practice when the major distributor of the press col- (not following the UNESCO categorization), lapsed in late 1998 and early 1999. This dis- there were less than twenty dailies in 2002. tributor collapsed when the main printing Of these, half were national dailies (includ- plant connected with the distributor ing one advertising daily), six were regional diverted the money collected for pro- and three were local dailies (including governmental media to dubious operations. evening papers). The chain of regional daily But perhaps more important is that the cur- newspapers shares substantial parts of its rent distributors (especially the major one, content with national daily Sme. PONS, owned by the Slovak Post) are not The specific feature of the daily press is that motivated to sell – they do not suffer losses if domestic owners often do not own the media they do not sell, because they take their profit exclusively for making a profit from publish- from distribution, not from selling. For exam- ing, but tend to use the press as a tool for ple, PONS suggested in early 2002 an increase their occasional unfair lobbying. This is a in prices for distribution of 15–20 per cent. result of the high politicization of Slovak Under normal circumstances, the major daily society during the previous era (up to 1998). newspapers at least do make a profit. The trend seems to have changed to a ‘nor- The older generation of readers usually do mal’, or at least more standard situation, with not trust the media. Older readers are used the clear exception of TV Markíza and affili- to reading ‘between the lines’. Almost 45 per ated media, like the daily Národná obroda. cent of the population does not read the Most print media lack a transparent owner- daily press regularly. The most popular daily ∨ ship structure. Another specific feature of newspaper, Nový cas (New Times), is a the daily press is that in its professional tabloid. It was read by around one-fifth of development it follows examples found in the population and about one-third of all the Czech Republic and Austria. This pheno- readers of the daily press in the years menon could be observed in layout as well 1996–2001. However, there was a significant as in content (style of writing), especially in decline in the circulation of this newspaper the late 1990s. In two cases, Slovak owners in 2001 due to citizens’ satiation with scan- hired Czech editors in order to improve the dals and negative news as well as the quality of their media (the daily Pravda and increasing cost of the press and the financial news television channel TA3). weakness of the population. Citizens do The German publishing house Gruner & still widely read this newspaper – there were

Jahr owns the∨ most popular daily news- 23.5 per cent reporting ‘read yesterday’ in paper, Nový Cas. The daily Pravda is owned March 2002. Many copies circulated among ∨ by the Slovak concern Harvardská investicná friends. This market leader was followed by ∨ spolocnost’ (Harvard Investment Fund). The the daily Pravda (8.6 per cent), Sme (8 per daily Sme is majority owned by the German cent), Šport (7.5 per cent) and the Hungarian- Verlagsgruppe Passau. This group owns the language Uj Szó (4.3 per cent). The daily largest regional daily press network in Pravda is a former Communist Party paper, Slovakia. The Verlagsgruppe Passau pub- now without a clear ideology but represent- lishes in company with Petit Press three ing the business and political interests of the dailies (Sme, Új Szó and Rol’nícke noviny) and owners. The daily Sme is more oriented three weeklies (Domino fórum, Vasárnap, The towards the right of the political spectrum. Slovak Spectator) and a number of regional Then there are dailies with a national but papers. Half of Petit Press shares are owned low circulation like Národná obroda (4.2 per by the Slovak VMV company. The daily cent), Hospodárke noviny (3.2 per cent), Práca Hospodárske noviny is published by the (2.9 per cent), Nový‹ den (2.7 per cent) and US-German Dow Jones/Handelsblatt group. some regional dailies with about the same The year 2001 was significant, with readership in their regions. These included changes in layout and/or full-colour printing some less popular national dailies such as

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Korzár/Východoslovenské noviny (Šrámek, with the Ringier publishing house operating 2000: 36). Regional dailies were read by 9.7 per in Slovakia. Gruner & Jahr would get a cent of all citizens in early 2002 (Sme, 28 51 per cent share of Ringier’s media in February 2002, p. 2). The daily Nový den∨ sup- Slovakia. This merger would create the ports the strongest political party in Slovakia – biggest media publishing house in Slovakia. the Movement for a Democratic Slovakia. The Swiss Ringier published five out of There is a general declining trend of circu- fifteen of the most popular magazines in

lation and readership of the daily press in Slovakia (most∨ of them were published Slovakia. There is no tabloid daily press (like before 1989): Zivot, Eurotelevízia, Telemagazín, Das Bild in Germany or Blesk in the Czech Rodina and Eva. Tele-programme magazines Republic). Eurotelevízia and Telemagazín together shared 41 per cent of the market in its segment. The periodical and magazine press The most important Slovak publishers are ∨ The number of magazines was over a thou- Spolocnos’ 7 Plus (it publishes weekly Plus 7 sand with a total circulation of 205.7 million dní and four monthlies) and Perex (which copies in 2000. This means that there was an publishes the daily Pravda and the weekly increase by 193 titles and 13.9 million Moment). TV Komplet, Profit and Lišiak were copies in contrast to the previous year. The bought in early 2002 by the A-ha public highest circulation was among the advertis- company. ing magazines (47 million copies), the lowest circulation was among the magazines of political parties (41,000 copies) (Vybrané The electronic (audio-visual) media ukazovatele, 2000: 7). There were 134 week- lies published in 2000. Of these, forty four Television were national, seventy nine regional and There were 98.9 per cent of households with eleven local weeklies. television sets in 2001. There were five The most read weeklies were Plus 7 dní national terrestrial or cable channels broad- (19 per cent readership in late 2001 and over casting from the territory of Slovakia in

200,000∨ circulation), Markíza (19 per cent), 2002: STV-1, STV-2, Markíza, JOJ and the Zivot (14 per cent readership and 127,000), news cable channel TA-3. Territorial coverage Eurotelevízia (11 per cent and 150,000) and of the main terrestrial television stations Slovenka (10 per cent). Plus 7 dní is a weekly of at the end of 2001 was as follows: STV-1

the Time variety, but with less∨ international covered between 97.3 per cent and 99 per cent, politics and more scandal. Zivot is a family STV-2 covered between 89.4 per cent and weekly but covering almost everything. 95.1 per cent, Markíza covered between Slovenka is a weekly for women. These week- 63.5 per cent and 79 per cent of the national lies were followed by the weeklies TV kom- territory (and 94 per cent of citizens) and plet and Moment (7 per cent and 5 per cent cable and terrestrial television Global (since respectively, 115,000 and 50,000 circula- March 2002 JOJ) with an estimated territorial tion). The weekly Markíza was established by coverage of 30 per cent but an estimated TV Markíza. Markíza focuses on domestic 65–70 per cent coverage in March 2002 and international celebrities. Eurotelevízia is (market share 1.41 per cent in October 2001). mainly a television programme weekly. TA-3 broadcast via the cable network (and Moment is a more serious family weekly, planned to broadcast also via digital satel- with a declining circulation in 2001. lite) with about 35 per cent coverage, 12–14 Vasárnap is a Hungarian-language weekly. per cent daily audience but only 0.86 per Among the most popular monthlies are cent market share in September–October the family-oriented Rodina (70,000), those 2001 (STV, 2001: 2; Stratégie, October 2001:

for women∨ (Dorka, Eva, 50,000; Emma, 90,000; 74). TA-3 replaced TV Luna, which broadcast Zenský magazín, 85,000), leisure interest for less than two years by way of the cable ∨ (Minikrízovky, Lišiak, 50,000; Tabu), hobby networks. JOJ TV increased its coverage in and health (Zdravie, Záhradkár, 85,000) and early 2002 to become about equal with TV Reader’s Digest Výber (50,000). Markíza. It is expected that JOJ TV will in The German publishing house Gruner & two years’ create serious competition for TV Jahr launched the weekly Cas‹ (similar to the Markíza. German weekly Focus, with a circulation of TV Nova was received by 40 per cent about 50,000) in May 2001. In late 2001 and of households but in March 2002 it was early 2002 Gruner & Jahr planned a merger withdrawn from cable networks, officially

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because of copyright issues, but in practice New JOJ TV is owned by Czech entre- ‹ because the new JOJ TV replaced it effec- preneurs from Ceská produkcní‹ invest, tively. Currently JOJ TV broadcasts old pro- which is owned by MEF Holding. The news grammes from TV Nova archives. The Czech television channel TA-3 has been majority- TV Nova played an important role in the owned by a British company, Millenium Slovak television market until early 2002. Its Electronics, since early 2002. market share in October 2001 was 9.6 per Slovakia is probably the only country in cent. TV Nova can still be received in parts Europe without live broadcasting of football of western Slovakia terrestrially. matches in the national football league. The The Czech public CT-1‹ was accessible by public television argues that the fees are 46 per cent of the population and its second too high, while its private competitor TV channel CT-2‹ by 32 per cent of households Markíza believes that the quality of the (with about 4 per cent market share game is too low. Ironically, football was the together), while 28 per cent of households most popular sport in 1999 among the male in Slovakia had access to other Czech televi- population and the second most popular sion stations. Other Czech television sta- sport in general (Stratégie, June 2001: 17). tions were present in the Slovak cable There are very few programmes (for exam- network, including the Prima television ple, in contrast to Poland and Russia, with channel (3.27 per cent market share) and much bigger markets) with subtitles in TV-3 (0.78 per cent market share) (Šrámek, Slovakia, and there is virtually no television 2000: 31). There was discussion as to movie with voice-over. But the trend is whether this is in line with international towards an increasing number of television copyright. movies with subtitles. There were 10,777 There are also Hungarian television sta- hours broadcast by both public television tions which can be received terrestrially in channels and 470,477 hours by all other southern parts of Slovakia. These channels television stations (mainly by regional and are watched by ethnic Hungarians in local television) in 2001. STV broadcast 71 Slovakia as mentioned above. A specific fea- per cent in-house programmes, including 48 ture of the Slovak electronic media market is per cent of repeats. This partly explains the the news television channel TA-3, which has low popularity of STV-1, only 32 per cent of been broadcasting since September 2001. viewers in mid-2001. But this was also the The STV-1 market share in October 2001 first year when there was no decline in the was 21.3 per cent, while STV-2 had a market audience of STV. share of only 3.7 per cent at the same time About 93 per cent of citizens watch broad- (STV, 2001: 28). Among the most popular cast television. TV Markíza dominates the programmes at the end of 2001 was news, market, followed by STV-1. The daily audi- followed by two sports programmes. There is ence of TV Markíza was 35 per cent in no great need to discuss the situation in the October 1996, passed 50 per cent between public Slovak Television. It is enough to April and December 1997, reached almost quote its director-general, Milan Materák. In 67 per cent in November 1999 and was his words, there are no rules in STV, there is 62.2 per cent in March 2000. STV-1 followed a crisis of creativity, a bad enterprise culture a reverse pattern: from 52 per cent in March and a lot of incompetent people (Sme, 17 1996 to as low as 35.4 per cent in December January 2002: 5). 1997 and back to 40.3 per cent in March Public television is financed by fees, state 2000. The third television channel, TV subsidies, advertisements and by its own Nova, attracted daily between 11.5 per cent limited business activities (like selling video- and 18.4 per cent of viewers in the period cassettes of its programmes). Owing to rising from March 1996 to March 2000, with costs and fixed fees (these are not increased 18.4 per cent of the daily audience in March regularly), as well as non-transparent man- 2000. STV-2 followed the general pattern of agement, there is a permanent financial STV-1, with a decrease in daily audience crisis in the public television service. from 25 per cent in March 1996 to 11.3 per TV Markíza is majority-owned by Slovak cent in March 2000. STV-2 data were thus owners and the minority owner (49 per cent) close to the daily audience data of CT-1 in of the service organization for TV Markíza is Slovakia, with 7.2 per cent of the daily audi- CME. CME also obtained a 34 per cent share ence in March 2000 (Šrámek, 2000: 32). in the licence organization of TV Markíza, The market share at the turn of 2001/2 for including control rights, in early 2002. major television stations is in the statistics

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section; for STV-2 it was 3.6–4.7 per cent, for and Development, the European Union via TV Global 1.3–1.7 sper cent, for TA-3 (0.9 per one of its foundations and three Slovak busi- cent and for others 16.9–18.1 per cent. The nessmen. It is a radio for drivers. new JOJ TV (which replaced TV Global) audi- All important private radio stations are ence was 8 per cent in March 2002. The data wholly or majority-owned by Slovak own- cited here are from two different research ers, with the exception of foreign stations organizations, and are based on various also broadcasting from Slovakia, like the methodologies. There was some discussion BBC and RFE. SRo broadcast 44,345 hours in early 2002 of introducing people-metres (including 25,061 hours of music) while for monitoring the popularity of television other radio stations broadcast 196,530 hours stations. Smaller stations in particular argued in 2001. News and current affairs created that the current system of measuring popu- about one-fifth of all programmes. There larity favours bigger stations. was rapid expansion in private radio broad- casting between 1999 and 2000. Radio About 80 per cent of citizens listen to radio There are four types of radio stations: broadcasting. The most recent audience national (public radio – Rádio Slovensko, figures of the most popular radio stations Rádio Devín, Rádio Rock FM), multi- (‘listened yesterday’) can be seen in the regional (seven), regional (nine plus two statistics section. These major radio stations public) and local stations (seven). There are followed by the private Fun Rádio with were twenty-four private radio stations 12.8 per cent, Rádio Twist with 11 per cent broadcasting in late 2001, including AWR and the public Rádio Regina with 10.5 per Europe broadcast from abroad, RFE/RL and cent. Among the most popular radio stations the BBC World Service. The public radio one can find Rádio Východ (6.2 per cent), covered the whole territory on medium Rádio Hviezda FM (5.4 per cent), Rádio wave, and 82 per cent of territory by FM. Expres (5.5 per cent) and Rádio Patria (4.6 per The public Slovak Radio runs six channels. cent). The ‘most often listened to’ stations There are three national channels and three are Rádio Slovensko (36.1 per cent), Rádio more specific ones: regional Rádio Regina, Rock FM (9.8 per cent), Rádio Okey (7.5 per for minorities Rádio Patria and the inter- cent), Fun Rádio (7.4 per cent) and Rádio national broadcaster Radio Slovakia Twist (5.6 per cent). Among foreign radio sta- International. In addition, there is broad- tions the most important ones are the casting via the Internet, called Radio Net. Hungarian stations Danubius Radio (3.8 per Rádio Slovensko has universal program- cent), Slágerradio (3.4 per cent) and Kossuth ming, broadcast on medium wave and FM. Radio (2.5 per cent) (www.slovakradio.sk). Rádio Devín specializes in high-quality educational and classical music radio, Film and video broadcast on FM. Rádio Rock FM is a com- Two evening full-length feature movies were mercially oriented public radio channel produced in 2001, and three in 2000 as well focused on the young generation. as in 1999. Altogether eighty three various The most popular radio stations in early short and evening movies were produced in 2001 were: Rádio Slovensko (27.2 per cent 2000, including three in co-production with ‘listened yesterday’), Rádio Rock FM (11.7 per foreign companies. It was expected that the cent), Rádio Okey (9.4 per cent), Fun Rádio number of new evening movies would be as (9.4 per cent), Rádio Twist (6.0 per cent), many as five in 2002. There were 135 movie Rádio Regina (5 per cent), Rádio Východ (4.4 premiers in movie theatres in 2000. Of these, per cent), Kiks (3.9 per cent) and N Rádio 60.7 per cent came from the United States (3.2 per cent) (AISA Slovensko). and 10.4 per cent from the Czech Republic, In 2000 the commercially most successful followed by France and the United Kingdom. radio stations were multi-regional and Only four movies were dubbed into the Slovak national stations: Rádio Twist, Fun Rádio, language and sixty three movies had Slovak Rádio Slovensko and Rádio Rock FM subtitles. The number of movie theatres (www.radia.sk). decreased by fifty six in 2000 to 279 and the The majority of small private broadcasters number of visitors by 384,000 to 2,646,000. face financial problems. The clear exception The movie theatres organized 57,214 show- so far is Rádio Express, which started to ings. There were 250 video rental places broadcast on 1 January 2001. Its shareholders in Slovakia in 2000 (Vybrané ukazovatele, are the European Bank for Reconstruction 2000: 7,19).

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The Internet and service media have their own supervising related on-line media councils, also elected by the parliament.

There were sixty four Internet service The press providers in 1999 compared with forty nine in 1998. The most popular Internet providers In March 1990 parliament passed a Press law in late 2001 were Slovak Telecom (majority (No. 445). Some journalists do not know owner Deutsche Telekom) with a 30.7 per that such a law even exists, others complain cent market share, followed by Nextra that it does not sufficiently protect journal- (Norwegian) and Kiwwi, owned by Globaltel. ists. The President – and especially in the Kiwwi provides free Internet access. past sometimes other politicians – sued Additional companies are Euroweb, owned by some very critical journalists under the the Dutch KPN, and Slovanet, owned by US libel/defamation laws. The 1990 law regu- Advent International. Two agencies claimed lates distribution and tries to curb the sale of that overall Internet penetration is Slovakia in pornographic material. There are no other mid-2001 was around 18–19 per cent and per- special principles of regulation except those haps as many as 25 per cent of citizens regu- mentioned above. larly used the Internet in 2001 (see also the The state does not support press diversity statistics section). Probably 23–30 per cent of by way of any specific policy. This is related citizens used the Internet at least once in their to VAT, distribution network functioning or life (Bella and Durkovic, 2001: 674). Access to ∨ ∨ up-to date press legislation as well as press the Internet in Slovakia is amongst the most plurality (which exists due to a still not con- expensive of all OECD countries in purchas- solidated market). ing power parity. This development led to Similar to what happens in the domain of protests by users (sending e-mails) and by the the electronic media, politicians try to estab- government in early 2002. As a consequence, lish close links with the news professionals. the Prime Minister met representatives of There has been a Press Council since March Slovak Telecom. The result was an initiative 2002. A code of ethics has existed since 1990 called eSlovensko. This project should make but is morally binding only upon members of the Internet accessible to more people at the Syndicate of Slovak Journalists. Some of lower rates. the best journalists are not members of this The first on-line daily ‘newspaper’ started professional body, which for some time also on 9 September 1999. It was a free electronic acted as a trade union organization. Some newspaper and survived for only about one important media, including STV and the daily year. In 2001 another Internet daily started Pravda, in 2000–1 adopted their own code of but this time it is not daily for universal ethics/professional conduct. This is certainly a readership but for business and economy sign of professionalization of the media. news (www.fini.sk). It is expected that the new government will pass a comprehensive new media law in 2002–6. POLITICS, POLICY, LAW AND REGULATION The electronic media Since summer 1992 there has been a state- The government has no clear media policy. established supervisory body for the elec- The main actors in policy matters are: the tronic media, now called the Council on Council for Broadcasting and Retrans- Broadcasting and Retransmission. In princi- mission, the Association of Independent ple, Slovak media legislation was harmonized Radio and Television Stations, the Slovak with the EU electronic media legislation in Syndicate of Journalists (2,645 members in 2000. There are about five major media laws 2000) and the Slovak Association of (each has on average been changed about five Journalists (500 members). Both private and times in the last ten years) and up to fifteen public electronic media are regulated by the laws relating directly or indirectly to broad- Council on Broadcasting and Retrans- casting, plus amendments. mission. This council awards and takes away There is no need for a licence for the licences, checks the diversity and indepen- retransmission of programmes unchanged, a dence of broadcasts as well as ethical and provider needs only to register. Radio licences legal standards. In addition, both public are valid for eight years, while television

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licences are valid for twelve years. It is possible The major problem is that the law does to extend a licence for one additional term not give the council enough enforcement without repeating the procedures. powers. Subsequent measures have intro- Advertising is allowed for 3 per cent of duced further limits on the supervisory tasks daily broadcasting in public media (and up to of the council. Until early 1999 the govern- 10 per cent including tele-shopping). Private ment was not really interested in media radio stations can broadcast 20 per cent of reform or at least it was not a priority. advertisements and private television sta- However, some MPs often initiated changes tions 15 per cent of their air time (plus an in media laws. Sometimes the changes were additional 5 per cent for tele-shopping). It motivated or at least influenced by the busi- is possible to advertise alcohol only after ness interests of big media owners. New Bills 10.00 p.m. (with the exception of beer, which relating to changes in the laws on broad- has no restriction). It is not permissible to casting, public television and radio, as well advertise tobacco products, but till 2006 it is as on advertising, and the so-called new possible to broadcast sports programmes comprehensive big media law (in two ver- with sponsoring by tobacco trade marks. sions) were submitted to the parliament in Further conditions are set by the Council the years 2000–1. Only two of these laws, on Broadcasting and Retransmission. For regarding advertising and broadcasting, example, broadcasters are obliged to respect were passed. In early 2001 the government the usual conditions such as avoiding vul- submitted some Bills relating to the public garity and discrimination. Changes in media but there was insufficient consensus broadcasting structure must be reported to on the form that regulation and reform the council within fifteen days. There is a should take. To summarize, there is still no right of reply for citizens and state authori- coherent media policy in Slovakia. ties, among others, if information published is incorrect. The time limit is two months. On radio, Slovak music should form at least The Internet and 10 per cent of all music broadcast. An inter- related on-line media esting requirement is that top managers and programme directors must have no criminal There is no special legislation. There are no record. In the case of television broadcast- special principles of regulation other than ing, 90 per cent of employees must be those relating to other media. Politicians Slovak citizens. Any planned changes in have started using the Internet for on-line ownership structure must be reported to the discussions with citizens in recent years. council in advance. The Slovak language is Parts of these discussions sometimes appear compulsory in broadcasting, while the in the print media. There is a plan on the Czech language is allowed in programmes part of Slovak Telecom and the government that overall do not exceed 20 per cent of the to increase the diffusion of the Internet but station’s total broadcasting time. no details are available.

STATISTICS

Population 5,379,455 Number of households 1,832,484 Overall movie admissions, 2001 2,850,000 Books published (titles) 7,200

Print media Circulation of main daily newspapers, 2003 National Nový Cas‹ 148,000 Šport 70,000 Pravda 78,000 Sme 70,000 Regional: six daily newspapers together print only 33,000 copies.

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Broadcast Audience share of main television channels, 2003 (%) media Public STV-1 approx. 17–20 STV-2 4–5 Private TV Markíza approx. 38–44 JOJ TV 10–11 TV Nova (withdrawn from cable networks in 2002) approx. 5–6

Audience share of main radio channels (%) Public Slovak Radio (Rádio Slovensko) approx. 48 Rádio Rock FM approx. 21 Three other major public channels Private Rádio Okey approx. 13 Fun Rádio Rádio Twist Rádio Východ (regional)

Percentage of households reached by all main forms of satellite, cable or terrestrial pay-television Percentage of households with cable television, early 2002 43.5 Percentage of households with satellite dish 30.5 Percentage of households with: Video cassette recorder 2000/1 52

Electronic Digital television reception n.a. media Personal computer, late 2001 22 Internet access at home, late 2001 11 Mobile phone, early 2002 45

Advertising Television 46.6 spend, 2001 Press 34.8 Radio 10.4 Other 8.2

Sources Interviews with Milan Stanislav, deputy editor-in-chief, Pravda, 15 January 2002; Vladimír Miškovský, editor-in-chief, Práca, 29 January 2002; Anna Sámelová, editor, news department, Radio Twist, 31 January 2002; Tatiana Veselá, editor-in-chief, weekly Moment, 15 February 2002; Tom Nicholson, editor-in-chief, The Slovak Spectator, 15 March 2002.

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∨ REFERENCES Krejcí, Oskar (1991) ‘Preco to prasklo?’ Pravda na nedel’u, 25 January, p. 5. ∨ ∨ Lamplova, Zuzana M. (2002) ‘Pomoc, pravo a Bella, Tomas and Durkovic, Marian (2001) vol’ný pohyb’, Sme, 17 January, p. 9. ‘Internet’, in Miroslav Kollar and Grigorij Smatlak, Martin (2001) ‘Medialna problematika Meseznikov (eds) Slovensko 2001. Suhrnna sprava na Slovensku sa spaja s kompromismi’, Otazky o stave spolocnosti. Bratislava: IVO. zurnalistiky 44 (3–4): 146–54. Brown, Archie and Wightman, Gordon (1979) Šrámek, Ludovit (2000) ‘Publikum medii na ‘Czechoslovakia: revival and retreat’ in Archie Slovensku v roku 2000’ in Denisa Vlkova, Lucia Brown and Jack Gray (eds) Political Culture and Petranska and Anna Chynoradska (eds) Adresar Political Change in Communist States, (2nd edn). medii Slovenskej republiky. Bratislava: MIC. London and Basingstoke: Macmillan. STV (2001) Tyzdenny ohlas divakov v 42 tyzdni. Hapak, Pavel (2002) ‘Prognozy naplnene – je tu Bratislava: STV, odbor medialneho vyskumu a rast!’ Strategie 2: 21–3. informacif. Havros, Richard (2002) ‘Tlak na telekomunikacie Táborský, Edward (1961) Communism in Czecho- pre cenu Internetu rastie’, Sme, Supplement slovakia 1948–1960. Princeton NJ: Princeton Pocítac, 17 January p. 1. University Press. Havros, Richard (2002) ‘Omyly Slovenskych Vybrané ukazovatele za kulturu v SR (2000) Bratislava: telekomunikacif’, Sme, 31 January, p. 19. Statistical Office of the Slovak Republic. Johnson, Owen V. (1995) ‘Mass Media and the Yearbook of Transport, Posts and Telecommunications Velvet Revolution’, in Jeremy D. Popkin (ed.) (2000) Bratislava: Statistical Office of the Slovak Media and Revolution: Comparative Perspectives. Republic. Lexington KY: University of Kentucky Press. Sprava o stave vysielania v Slovenskej republike a o Kamenec, Ivan (2001) ‘Fenomen rozhlasu v cinnosti Rady pre vysielanie a retransmisiu za modernych (slovenskych) dejinach’ in Prispevky k rok 2001. Bratislava: Ndrodna rada Slovenskej dejinam rozhlasu 6. Bratislava: Slovensky rozhlas. republiky II. volebne obdobie, tlac c. 1347, Köpplová, Barbora, Jirák, Jan and Kaplan, Frank, L., March 2002. (1993) ‘Major trends in the Czech mass media www.slovakradio.sk/radioinet/index5/index5_pri after November 1989’ in Al Hester and Kristina eskurn.html. White, (eds) Creating a Free Press in Eastern www.eb.sk/spravy/mon.ltc?ID=58. Europe. Athens GA: James M. Cox Jr Center for europa.eu.int/comm/public_opinion/. International Mass Communication Training and Research.

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VIDA ZEI

NATIONAL PROFILE women. Twelve per cent of all Slovenes between the ages of twenty five and sixty four have a higher education; in 1998 The Republic of Slovenia is one of the Slovenia had a ratio of thirty students per youngest and smallest European countries. thousand inhabitants. Before its independence in 1991, Slovenia According to the 1991 census, 88 per cent was one of the republics of the Socialist of the people consider themselves Slovenes. Federal Republic of Yugoslavia. Today, Italians, Hungarians, and recently also Romanies Slovenia is a multi-party parliamentary (according to a new law) are considered democracy, the 176th member of the United indigenous ethnic minorities with rights pro- Nations, and a full member of various tected by the constitution. The members of European institutions. Official governmen- ‘other’ nations are Croats (2.7 per cent), Serbs tal representations of Slovenia’s position in (2.4 per cent), and Muslims (1.4 per cent). A the world stress two ideas: Slovenia’s majority of Slovene citizens are Roman European historical tradition, geographical Catholics, other religious preferences include position, and close economic ties with the Orthodox (2 per cent), Islam (1.5 per cent), West, and its political and ideological dis- and Protestant (1 per cent). For 88 per cent of tance from its former position as a Balkan the citizens the mother tongue is Slovene, state. while the languages of indigenous ethnic Slovenia is small in terms of its territory minorities – Italians (0.2 per cent), Hungarians (20,273 km2) and its population (1,966,000, (0.5 per cent) and Romanies (0.1 per cent) – according to the 1991 census). Demographi- were spoken by fewer people than the lan- cally, Slovenia represents an ageing country guages of immigrants. with a slow-growing, ethnically fairly homo- The use of the Slovene language has been geneous population. The main reasons are historically the most important part of the the two world wars, in which Slovenes suf- national and cultural identity. In 2000 fered great losses, and emigration. The latter the government established an Office of the was strongest in the decades before the Slovene Language, following an earlier, First World War, when people left mostly for informal ‘Language Court’ and the example economic reasons to overseas destinations, of Scandinavian countries – anticipating and between both world wars, when they language problems with the expected entry moved mainly to Western Europe. The of Slovenia into the European Union. The process of ageing would be even faster had Office has linking, harmonizing, advisory Slovenia’s population not been rejuvenated and promotional roles in the planning and by immigration between 1971 and 1981, implementation of active linguistic policies. when mostly young and economically Slovenia’s legislation takes into account also active individuals from other Yugoslav the specific needs of Italian and Hungarian republics settled in Slovenia’s urban and ethnic communities in ethnically mixed industrial areas. regions. In Slovene Istria, for instance, Koper/ Slovenia’s active working population Capodistria radio and television stations today includes 49.5 per cent of the total play a special role in the development of the population, including nearly half of all Italian ethnic community, while members 3103-Ch-19.qxd 11/13/03 12:23 PM Page 215

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of the Hungarian ethnic minority may view change in 1990, the period of transition was and listen to Hungarian programming from marked by a number of paradoxes in the a Lendava station. Efforts directed at provid- media sphere, similar to those in other ing the Romany ethnic community with countries of Central and Eastern Europe. media services are only in their initial stage. Because of their importance before and About 300,000 Slovenes live outside during the political changes of the late Slovenia’s borders as ethnic minorities in 1980s, the media became a significant politi- Italy, Austria, and Hungary, or as emigrants cal issue regarding questions of privatization overseas and in other EU countries. They and freedom. Today the restructuring of the represent an important part of Slovene media, and of national public broadcasting media production, with their press and radio in particular, shows that the new political and television programming in Slovene. elites, the ruling coalitions as well as the Their communication activities depend opposition parties are trying to use the largely on legislatures in the host countries media as a source of power and generator of and ever diminishing financial support from funds. Thus the change from socially owned Slovenia. to privately held media involved a fusing of The beginnings of the Slovene media are political and economic controls, in which linked with the specificity of Slovene politi- advertising revenue plays an important role; cal history and the cultural history of media in 2001 it represented total revenue of ¤120 developments in Europe. Publishing began million. with the first two Slovene books, the Catechismus and Abecedarium, published by Primoz‹ Trubar in 1550, followed by fifty six books published by Slovene Protestants STRUCTURE AND OWNERSHIP between 1550 and 1599. The first modern Slovene publisher was L. Schwentner, who produced about 200 books of Slovene litera- The print media ture, poetry, and educational content between 1898 and 1938. The newspaper press The first Slovene periodical was the Slovene During the 1990s the print media was Calender, published for a general readership strongly affected by political changes. In in 1557. Anti-reformation activities slowed 1994 a new Mass Media Act institutionalized down the development of a Slovene press the privatization and liberalization of the until 1797, when the first Slovene news- print media market and, as a consequence, paper, Lublanske novice, became a centre of revealed the monopolization and commer- the Enlightenment movement. cialization of the media. The new govern- Radio Ljubljana was the second radio ment expected that former socially owned station that started to operate in the print media enterprises would be invaded by Kingdom of Yugoslavia in 1928, and kept its European and US corporations. Instead, a name until 1991, when it became part of small number of local owners with stakes in Radiotelevizija Slovenia. numerous affiliated companies took control Regular television programming in of the majority of the media market (Hrvatin Slovenia started in 1958 as part of the and Milosavljevic′, 2001: 7). Privatization led Yugoslav Radiodifusion, but shared time to increasing dependence on advertising with studios in Zagreb and Belgrade, the lat- revenue. The largest advertisers in the print ter providing the centralized evening news media are foreign companies, such as Procter & programme. In 1966 colour television pro- Gamble, Henkel, and Renault, and, among gramming operated experimentally to the Slovene advertisers, mobile phone oper- become a regular feature in 1974 (PAL ators Mobitel and Si.mobil. system). In 1968 Television Ljubljana intro- Today there are about 1,500 print media duced a central Slovene-language evening published in Slovenia, with about 6 million news programme. circulation. They include 205 newspapers, Prior to the 1990s, the media were socially among them five major dailies with a com- owned and largely subordinated to party bined circulation of about 356,000 copies, and state authorities. Their primary role was more than fifty weeklies and regional papers the spread of general information and with a circulation of about 1.6 million knowledge and contributions to political copies, thirty four fortnightly newspapers, and cultural education. After the political and about 300 monthlies.

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All major daily newspapers (except agencies, owned to a large extent by Slovenske novice and Finance) originated in employees and various state investment the previous political system; they were pri- funds. The other dailies, Slovenske novice and vatized through internal buy-outs and inter- Dnevnik, are published in Ljubljana; the first, nal distributions of shares. After 1990 three established in 1991, with the highest circu- new dailies, Slovenec, Republika, and Jutranjik, lation in Slovenia (85,312 copies) because of filled the press vacuum on the political its tabloid content, has a readership that is right, but they failed after a short time owing fairly evenly spread across generations, gen- to lack of start-up capital to keep them afloat der, region, and income groups. Its share of through the first few years when even the advertising revenue is 23.2 per cent. most successful media operate at a loss. Today Dnevnik, established in 1951, is a lighter, the four largest media companies (Delo, general information daily with a circulation Dnevnik, Vecer,‹ and Slovenske novice) con- of about 80,000 copies and a readership in trol more than 90 per cent of the daily news- and around Ljubljana. Its advertising share paper market. In contrast to the experience in is 29.3 per cent. Finance, since 1992 the first other East and Central European countries, Slovene business newspaper, turned from a the proportion of foreign capital in the daily weekly to a daily in 2001. Because of its press is insignificant. aggressive editorial policy it is considered a The largest national daily is Delo, a serious newspaper on the rise, receiving 4.6 per cent general circulation newspaper in Ljubljana, of advertising revenue. Finance is an excep- that was established in 1959. Its slogan, tion among Slovene newspapers in terms of since 1990, is ‘The right to know’. The aver- its foreign ownership: age circulation is 93,369, 60 per cent of (Bonnier) owns 75 per cent. which is sold through subscriptions by regu- lar readers from industrial urban areas The periodical and magazine press (Ljubljana, Kranj, and Postojna) between the Among the bigger regional newspapers is ages of twenty and seventy five; over 60 Primorske novice, Koper, published three per cent completed higher education and times a week, with a circulation of 27,000 belong to the highest income categories. copies and 60 per cent subscriptions. Its Delo’s share of advertising revenue amounts advertising revenue is about 10 per cent of to 48.8 per cent of all dailies. In terms of all periodicals. The two biggest political ownership, the share of internal owners – in weeklies, with different political background the 1990s originally 60 per cent – fell by and readership, are Mladina and Mag. half, while the shares of external owners Slovene magazines cover various interests, increased, especially through the concentra- ranging from current affairs, the economy tion of capital by one owner, Krekova and finance to home, family and children, druzba.‹ The latter represents mainly ‘conser- men’s and women’s issues, culinary topics, vative’ (Christian Democrat) capital which religion, and sport, among others. Seventeen controls 37 per cent of Delo stock. Interest magazines are connected with Delo, the two among foreign investors (Maxwell, Great biggest have 15 per cent of the market and Britain; OVB, Germany; WAZ, Germany) was all of them control more than 50 per cent of rebuffed by Delo management, which the magazine market. Ten new computer expressed interest in co-operation on the prin- magazines have appeared on the market ciple of equality (Hrvatin and Milosavljevic′, since the 1990s, but those addressing per- 2001: 24). sonal relationships, fashion and women’s A similar daily, Vecer‹ , has been published topics are most numerous. The oldest one, in Maribor since 1945. It has an average cir- Naša z‹ ena, has changed radically since 1941 culation of 67,500 copies. About 70 per cent and its early days of militant agitation (its of Vecer‹ is sold through subscriptions in the average circulation is 67,000 copies and its Štajerska, Prekmurje, and Koroška regions, readership share is 8.3 per cent). Readers are but the newspaper is gaining popularity in highly educated high-income women of all the rest of the country because of its pro- generations, even though its new editorial nounced critical and objective editorial policy is now much closer to Jana, the most policy. Its share of advertising revenue popular women’s magazine since 1972. among dailies is 23.2 per cent. In contrast to Jana’s readership share is 14 per cent, and its Delo, Vecer‹ focuses on establishing business advertising revenue reaches nearly 10 per links with local media in the region, includ- cent of all periodicals. Readers of Jana are ing local radio stations and advertising women of all generations mainly with

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medium education in the upper middle publishes. Drz∨ avna zaloz∨ ba Slovenije also income bracket of society. The newer owns 26.4 per cent of Dnevnik and is slowly women’s weekly magazine, Lady, appeared moving into broadcasting properties. Most on the market in 1990; its logo, ‘The tabloid of the larger, now privatized publishing with the highest circulation in Slovenia’, houses (the biggest, Mladinska knjiga, pub- reflects the appeal to lower middle-class lishes about 400 books a year) are owned by women. It prints, on average, 75,000 copies. internal shareholders, by DZS, and by various investment funds. Book publishing Book publishing also takes place among Book publishing contributes enormously to Slovenes abroad, as in Italy (Trieste and the sense of Slovene national identity. In the Gorizia), Austria (Koroška), Germany twentieth century book publishing developed (Munich), Argentina (Buenos Aires), and the as in the rest of Europe. After the Second United States (Cleveland). For many decades World War the publication of original Slovene their publishing activities have been over- literature in socialist Yugoslavia was highly looked; today they are a recognized part of subsidized but under the control of Agitprop. Slovenia’s cultural history and are present In the 1950s self-management allowed more on the book market. freedom. The Publishing Law of 1978 attached special social importance to publish- ing and included the right to subsidization; The electronic (audio-visual) media nevertheless, financial support diminished in the 1980s. At the end of the decade there were Television some twenty publishing houses actively There are more than forty television organi- involved in publishing over 2,000 titles a year, zations in Slovenia, according to the participating in international co-productions, Broadcasting Council of the Republic of appearing at international book fairs, and Slovenia. The national public service broad- raising the quality of printing and book illus- casting company, Radiotelevizija Slovenija, tration. Slovene publishers also developed the consists of Radio Slovenia, Television production of music records and cassettes. Slovenia, RTV Koper-Capodistria, RTV Maribor, After 1990 a host of new small private Transmitters, and of three organizational publishers arrived at the scene, but their units of radio, television and music produc- number quickly diminished. In 1995 there tion. Its operation is monitored by the were still about fifty book publishers. The Council of Radio and Television Slovenia. Publishing Law of 1978 is a dead letter and Another body, the Broadcasting Council of book publishing is regulated like any other the Republic of Slovenia, is an independent economic activity. However, some original regulatory agency of the broadcasting indus- works in Slovene still receive subsidies that try. It was established in 1994 to monitor all in 2001 amounted to about ¤1.5 million the broadcasting channels. and helped 215 books appear on the market. Radiotelevizija Slovenija operates three Of 3,917 books published in 2000, a little national television programmes (SLO-1, over 900 titles were translations. Slovenia SLO-2, TV Koper-Capodistria) alongside represents a small publishing market; print three national commercial programmes, runs are rarely large (3,000 copies represent which reach more than 80 per cent of the a bestseller!), and books are made even more population (Kanal A, Pop TV, TV-3). The expensive by the newly introduced 8.5 per development of a cable network, run by cent (value added) tax. Nevertheless, in over 100 cable operators, has set off an 2000 one-third of all published titles were increase in local commercial television pro- original Slovene works. Less than two grammes. In addition, there are nine local decades ago, Slovenia was the European public (non-profit) television programmes record holder for the number of new titles reaching smaller audiences. A public tele- published per capita; today people obtain vision programme for the Italian ethnic books mainly from libraries: around 15 million minority, Television Koper-Capodistria, books are lent annually. operates as part of Radiotelevizija Slovenija The major Slovene owner in the publish- but is independent in terms of the manage- ing industry is Drz∨ avna zaloz∨ ba Slovenije ment of programme policies and in directly (DZS), previously a publishing house that influencing the appointment of programme turned into a commercial company which directors. Television Koper-Capodistria began sells and buys more than it actually operating in 1971 with target audiences in

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Slovenia and Croatia; it broadcasts more and resulted in insufficient funding for good than eleven hours per day. programmes or for in-house quality produc- Television viewers in Slovenia have access tions, even though the Mass Media Act of to about 360 hours of programmes each day. 1994 prescribed a very low programming Since 1997 the first and second public service quota for them, i.e. one-tenth of broadcast national television programmes may be seen time. Pop TV, which was initially only a over the Hot Bird 3 satellite and, since 1995, ‘trade mark’ of a programme producer over the Internet. The reception of foreign (ProPlus, a company owned by a US corpo- television programmes offers a variety of ration, CME) introduced a network system choices. Viewers may choose from about ten in 1995 and became the first large foreign English-language programmes (e.g. BBC investment in Slovene media (US capital was World, BBC Prime, CNN, Sky, or the represented to the public as a loan), thus Discovery Channel), a host of German- becoming the first serious competitor of language programmes (such as 3-SAT or ORF), public television. Pop TV featured popular the European ARTE, the Italian RAI, the films and television hits from the United Spanish TVE, the French TV-5, and various States, Great Britain and other European programmes produced by television studios countries, without any information pro- in the former Yugoslav federation, featuring grammes, except for the evening news. The Croat, Serbian, Montenegrin, Albanian, Americanization of Pop TV (which has since Bosnian and Macedonian languages. merged with Kanal A) is confirmed by sur- Until the mid-1990s Radiotelevizija veys which show that cheap US imports Slovenia had practically no competition, but often constitute up to 79 per cent of the dramatically lost a large share of viewers broadcast content, narrowing it culturally (except in entertainment and sports pro- while reducing costs by reducing if not elim- grammes) as a result of the introduction of inating in-house productions (Hrvatin and commercial television, cable, and the Milosavljevic´, 2001: 60). Advertising rev- Internet. As a result, Radiotelevizija Slovenia enues of ProPlus (marketer of Pop TV and changed, and became more commercial; it Kanal A) in 2001 are close to 60 per cent of expanded entertainment, reduced informa- television advertising expenditure. Never- tion, commentary, documentary, and in- theless, none of the national commercial house drama programmes, introduced more television organizations operates profitably, US films, and even started to insert commer- according to official reports of the cials into the longer popular programmes. It Broadcasting Council (Gerl, 2001: 36). also introduced television shopping, devel- TV-3, the third Slovene commercial sta- oped its presence on the Internet, and tion with a national audience, started on started to broadcast by satellite. In 1998 it Christmas Eve 1995 and continues with pro- produced about 13,000 hours of program- gramming for children, youth, the family, ming; more than half the imported pro- and the Catholic community. It is owned by grammes were of European origin. the Catholic radio, Ognjišce,‹ the diocese of Radiotelevizija Slovenia is largely financed Maribor, the diocese of Koper, Mohorjeva from subscription fees and, to a smaller Druzba‹ (a predominantly religious book degree, from advertising. In the 1990s its publisher), and the Economic Forum of the advertising revenue increased, but is limited Christian Democratic Party. by law. In addition to a programming crisis of public television during the 1990s there Radio were constant serious financial problems The radio scene consists of eighty nine radio and monitoring by a politically divided programmes with a total transmission of Broadcasting Council. Consequently, it was 71,500 minutes of programming per day. once again transformed into a vehicle for Thirty eight programmes are commercial, promoting political interests. Currently, the twenty six local, regional and non-profit, situation has improved financially because while fifteen programmes target Slovenes of access to electricity customers: inhabi- abroad; there are also two student stations, tants of Slovenia who pay for electricity also and eight public service programmes oper- pay for a television licence! ated by Radiotelevizija Slovenia, including Commercial television programmes, like two for ethnic minorities. Radio Koper/ Kanal A, that started to operate in 1991 Capodistria transmits programmes in Italian – specifically, had similar problems at the time: beginning with a few hours in 1945 and the initial starting capital was only modest ending with a fourteen-hour daily service

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today. The Hungarian ethnic community supervisory board whose members are receives its radio and television programmes appointed by the government. Co-productions from studios in Lendava. help finance new Slovene films, and In 2000 public Radio Slovenia produced national television plays one of the key roles 23,321 hours of programmes. Advertising despite its own financial problems. reached up to 2.5 per cent of programming Since the 1970s, when 10 million tickets time. The three main channels (Program A, were sold in Slovene cinemas, audiences have Val 202, Program ARS) offer four main pro- been decreasing. Also, Slovene film distribu- gramme types: information (about 23 per tors, by choosing to rely on Hollywood cent), music (26 per cent classical, 32 per blockbusters, are victims of commercial tele- cent popular, 0.4 per cent folk–national), the vision stations, which increasingly broadcast arts (4 per cent drama, literary programmes), more films. A low point in attendance was in and entertainment (about 9 per cent sport, 1992 with only 1.5 million tickets sold, contact, talk shows, and humour). Some of increasing to nearly 3 million before drop- the most popular programmes on public ping in 1999 to less than 2 million. radio are very old, including the radio drama According to a 2001 Mediana survey, less programme or Slovenes around the world and than 6 per cent of the population may be Good night, children, which have been broad- considered regular moviegoers. Research is cast at the same time and on the same day needed to detect changes with the opening of for decades, some since 1936! multiplex cinemas in Ljubljana and Maribor, Local radio programmes broadcast in 1999 although there are indications that movie totalled 412,618 hours, divided among theatres in urban centres have had much music (over 50 per cent), information (about better attendance all along. In Ljubljana the 14 per cent), and entertainment (6 per cent), Cultural Centre Cankarjev dom and Slovene while less than 1 per cent were artistic Cinemateque are the focal point of Art Fest, and educational programmes. Advertising the Short Film and Documentary Video amounted to about 29,000 hours. While Festival, and other promotions of quality interest in new radio stations is increasing, films of mostly European origin. according to the Broadcasting Council, the Some changes may also be due to the suc- local radio market in urban areas is satu- cess of Slovene cinematography. About 140 rated, which gives rise to sales and mergers. feature films and a few hundred documen- However, the Telecommunications and taries and short films have been produced so Broadcasting Agency of the Republic of far. Between 1995 and 2000 the Film Fund Slovenia still offers new frequencies to of the Republic of Slovenia subsidized the potential broadcasters. production of thirty feature films and fifty six short film projects. Films by a new gen- Film and video eration of film directors (Igor Šterk, Janez The film industry in the former Yugoslavia Burger, Vito Taufer, Jan Cvitkoviè) have was nationalized and film production highly been received very favourably at home, subsidized by the state. Slovenia had its own where they have rejuvenated the movie film production company, Triglav film, later audience, and abroad, where reactions from Viba film, a monopoly. With financial sup- international film festival juries have been port from the Republic Film Fund and ‘help’ very encouraging. For example, at the fifty- with script selection, Viba film produced eighth Venice Film Festival in 2001, the ninty two feature films (sixty one original Slovene film Kruh in mleko (Bread and Milk), Slovene, thirty one co-productions). written and directed by Jan Cvitkoviè, The Film Fund Act of 1994 re-created the received the Lion of the Future award. Film Fund of the Republic of Slovenia, abol- ished the monopoly of film production and The Internet and related set out to create the right conditions for on-line media feature film, video and short film produc- tion, stimulate script writing, promote The use of computer technologies and the Slovene films abroad, organize Slovene film Internet is on the rise in Slovenia. Internet festivals, and support student film produc- users are between fifteen and twenty four tion at the Academy of Film in Ljubljana. years old (35 per cent), have higher and/or The fund has limited financial resources and university education (about 24 per cent), subsidizes feature films on the basis of and belong to the highest income groups public tenders. The fund is supervised by a (37 per cent). Forty six per cent of Internet

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users are women. The number of personal Information Law in 1973. Amended in computers in 2000 per 100 inhabitants was 1985 – even though the media were, at least 27.3 (in 1998: 21.2, in 1999: 25.3) and there indirectly, owned and controlled by the were 1,089 hosts per 100,000 inhabitants state and did not operate as autonomous (1,029 in 1998, 1,159 in 1999). economic entities – the law explicitly Acquisition of general information through mentioned ‘freedom of information’ and the Internet is pervasive (close to 70 per ‘the right to be informed’. The foundation of cent), followed by entertainment and e-mail Slovenia’s current legislation remains an (both close to 60 per cent). About 15 per cent ongoing political and economic reform; it is of Internet users engage in e-banking (7 per a process since 1990 that aims to develop cent in 1999), and about 10 per cent use compatibility with standards prevailing in e-shopping (0 per cent in 1999). About 25 per the European Union. cent have access to the Internet at home and The first step in this process was the Mass about 20 per cent at work. Elementary and Media Law of 1994, and the specific Act on secondary schools are not yet well equipped Radio-Television Slovenia, setting forth spe- with computers; there are only about five cific rules regulating media ownership, pro- computers per 100 pupils. Nevertheless, prac- hibiting mergers and cross-ownership, as tically all of them have access to the Internet well as multiple ownership of the media and about 80 per cent through ISDN. Half of (print, news service, or broadcasting). The elementary schools and nearly all secondary Mass Media Act of 1994 was expected to schools have their own home pages. affirm democracy and a plurality of media, The regular use of computers is also on the and secure legal and financial conditions for rise commercially. In 2000 small companies media freedom. But the law provided an with five to fifty employees were the fastest to opportunity for a dangerous concentration embrace the new technology; more then half of capital, cross-ownership, and the kind of of them use computers regularly (there are media privatization that allowed the media 5.6 computers per ten employees). While 88 to avoid public accountability. The law per cent have access to the Internet, close to proved to be deficient and did not allow for 50 per cent have their own Web site, and enough supervision of the non-transparent 78 per cent have an ISDN line. Medium-size concentration of media ownership and of companies (51–250 employees) and large enter- numerous violations of the law – for which prises (over 250 employees) show smaller num- there were no sanctions. For instance, the bers. About one-third are regular computer largest commercial television producer, ProPlus users (less than three computers per ten (owned by CME) was able to by-pass the law employees), but they have close to 100 per cent by establishing a production company access to the Internet. More than 60 per cent of which was registered not as a broadcaster the larger companies have their own Web sites. but as a producer, and contracted three local Regarding media use, it is important to television stations to broadcast its programme realize that more than a quarter of Internet (Pop TV) exclusively. customers use it for reading the news. All A new Mass Media Law (running to 168 dailies, and many other periodicals, have on- articles), passed in 2001, has been strongly line versions with advertising. Most of them criticized. Regarding ownership, the law lim- limit access to their archives, however. Delo its concentration by prescribing that a pub- has a special, shortened version, Delofax, lisher of a general information-providing which can be accessed only with Acrobat daily newspaper (including any natural or Reader. It serves about 400 to 600 daily read- legal person, or a group of associated ers, has no advertising, an extensive archive, persons who have more than a 20 per cent can be downloaded and used for clipping; share in the capital or property of that pub- about 300 copies are sent by e-mail daily to lisher, or more than 20 per cent of manage- readers around the world. ment or voting rights) may not be an owner or co-founder or broadcaster of a radio or television programme, and may not engage POLITICS, POLICY, LAW in radio and television activities. The same restriction applies to a radio or television AND REGULATION broadcaster, who may not become a pub- lisher of a general information-providing During the time of Yugoslavia, Slovenia was daily newspaper. Any acquisition of an one of the first republics to adopt a Public ownership share of more than 20 per cent,

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or management or voting rights, is subject because licence fees alone cannot finance to prior approval by the Ministry of Culture – new Slovene audio-visual productions. which approves or rejects according to its The Public Service Broadcasting Act of assessment of the media (advertising) 1994 has been amended several times market. This task is practically impossible to regarding fees, naming editors-in-chief, and achieve unless transparency of media owner- similar, and a new Telecommunications Law ship is achieved first. With the political was passed in 2001 that established a changes of the 1990s regulatory mechanisms Telecommunications and Broadcasting Agency were abandoned, but the independence of of the Republic of Slovenia which continues media owners from the state and politics the activities of the former Telecommuni- was not secured, because political parties cations Administration. Among its most have considerable shares in investment important duties is the allocation of radio funds that own the media, especially the frequencies. press. To ensure the development of information The second part of the new Media Law technologies and the promotion of an infor- specifically deals with radio and television mation society, the government created a programmes and defines local, regional, Ministry of the Information Society in 2001. student, non-profit programmes, and pro- Its priorities are, among others, to enable grammes of special importance for Slovene inhabitants of Slovenia to have equal (or culture and that could be financially sup- free) access to information technologies and ported by the state budget. The program- services, to promote a knowledge-based ming of non-profit radio and television economy and e-business in the private and should consist of at least 30 per cent of their public sectors and in public administration. own daily news, culture, arts and educa- Its regulatory tasks include monitoring and tional programming. The Media Law also proposing legislation, implementing regula- prescribes new ratios of in-house, local, tion of the infrastructure for e-business, har- Slovene and European production and states monizing Slovenia’s legislation pertaining to that all television programmes (public and this sector, and preventing Internet misuse, commercial) must broadcast each day at although Internet-related media are not least 20 per cent of their own production – mentioned. Slovenia also adopted the at least one hour during prime time Convention on Cyber-crime, among other (between 18.00 and 22.00 hours) – and at international conventions that regulate this least 30 per cent of their own production is area, but not much work has been done prescribed for radio programmes. In addi- regarding use of the Internet. The latter is tion, radio programmes must ensure that at regulated indirectly by several related laws, least 10 per cent of daily music programmes among them the Electronic Business and is of Slovene origin; for television, the law Signature Law and the Consumer Protection prescribes at least 2 per cent of Slovene Law. There are no laws regulating pornogra- audio-visual material per year and suggests phy or spamming, however, and Internet- that television companies should strive to related media are only partly covered by the increase Slovene audio-visual material to new Media Law of 2001. This creates confu- 5 per cent a year (which is considered a con- sion, since, for instance, Delofax, the Internet siderable share). daily version of Delo, could be registered as a The new Media Law also regulates com- new medium, and not as an on-line paper. mercial television advertising. Programmes The media in Slovenia are to a large extent shorter than thirty minutes should not be directly (in the case of public radio and tele- interrupted by commercials, longer ones vision) or indirectly (licensing, political only once every forty five minutes. Public advertising, and other ‘soft influences’ and television must not interrupt longer pro- pressures on programme directors) under grammes at all, and advertising should not state control, since political parties continue exceed 15 per cent of daily broadcasting to be strongly involved in the choice of edi- time; during prime time advertising should tor and the programme policies of both not exceed nine minutes per hour. Slovene press and broadcasting, while the integra- public television retains practically the same tion of the media and political elites is rights for advertising as commercial pro- evident in the continuing mobility between grammes, except for prime-time limits, journalism and politics.

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STATISTICS

National population, 1991 1,965,986 Number of households, 1991 640,195

Overall movie admissions, 1999: Cinemas 85 Seats 24,529 Performances 33,138 Tickets sold 1,965,000

Number of book titles published Year Total Original works Translations 1985 2,328 2,119 209 1990 1,853 1,272 581 1995 3,194 2,219 975 1997 3,647 2,484 1,163 1999 3,976 2,926 1,050 2000 3,917 2,985 932

Sources: Statistical Yearbook 2001, Mediana 2001, Marketing Magazin MM.

Print media Circulation of main newspapers, 2000 (%) Dailies Slovenske novice 18.2 Delo 13.2 Vecer‹ 12.0 Dnevnik 8.8 Finance 2.0

Weeklies Nedeljski dnevnik 28.3 Slovenski delnicar‹ 28.1 Vikend magazin 25.9

Broadcast Main television channels media Audience share of public service national television (%) SLO-1 42.6 SLO-2 12.4 TV Koper-Capodistria 2.3

Audience share of commercial national television (%) Kanal A 23.8 Pop TV 57.2 TV-3 n.a.

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Audience share of main radio channels, public and private (%) Public service Program A 13.9 Val 202 15.5 Program Ars 3.1 Radio Koper-Modri Val 3.5 Radio Maribor – MM1 5.2 ∨ Slovenski turisticniRadio 3.7

Commercial Radio Maribor 5.2 Radio City 4.2 Radio Hit 4.5 Murski Val 2.9

Percentage of households with: Television 97 Video-cassette recorder, satellite receiver, DVD player 57

Electronic Percentage of households with: media Digital television reception, by whatever means n.a. Personal computer 46 Internet access 21 Number of personal computers per 100 inhabitants 27.3 Mobile phone 75

Advertising Dailies 29.3 spend (%) Other print media 17.0 Television 35.1 Radio 8.7 Posters 9.9

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REFERENCES Mediana (2001) Raziskava medijev v Sloveniji. Ljubljana: Inštitut za raziskovanje medijev. ∨ Gerl, Matjaz (2001) Radijski in TV programi v European Commission (1998) The Development of Sloveniji. Ljubljana: Svet za Republike Slovenije. the Audiovisual Landscape in Central Europe since Statistical Yearbook of the Republic of Slovenia (2001) 1989. Luton: University of Luton Press/John ∨ Ljubljana: Statisticni urad Republike Slovenije. Libbey Media. ∨ Uradni list (2001) ‘Zakon o medijih’ (Media law), Hrvatin, Sandra B. and Milosavljevic, Marko No. 35, (May): 4017–42. (2001) Media Policy in Slovenia in the 1990s: www.gov.si. Regulation, Privatisation, Concentration and www.ris.org. Commercialisation of the Media. Ljubljana: Peace Institute/Mediawatch. Jancic, J. (2002) ‘Recesijo obcutijo tudi slovenski mediji’ (Recession hits Slovenian media too), Marketing Magazine 22 (1): 14–17.

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ROSARIO DE MATEO

NATIONAL PROFILE languages in their respective regions. In 1986 Spain entered the European Union (EU) and Spain covers an area of 507,782 km2 and has been obliged to restructure its legislation has a population of 41,116,000 inhabitants. in economic affairs, adapting it to the Union. The population density is seventy nine The new situation in Europe has made it easier inhabitants per square kilometer. However, for foreign capital to enter most branches of its distribution is very uneven: in the coastal production, including communications. regions the density is 100 inhabitants per square kilometer, whereas in the interior of the peninsula it is only twenty five. The STRUCTURE AND OWNERSHIP metropolitan areas Madrid and Barcelona are the main nuclei of population with about 4.5 million and 3 million inhabitants The print media respectively. Economic activity is focused on Madrid, Catalonia, the Basque Country and The newspaper press Valencia. However, the region with the There are about 140 daily newspapers. Only highest income per person is the Balearic three of them are national newspapers of Isles. This is due to tourism. general information (El Pais, ABC and El Following the dictator Franco’s death in Mundo), two are national daily sports news- 1975, the transitional period to democracy papers (Marca, As) and three are national started, and old and new values coexisted daily business newspapers (Expansión, Cinco for a time. This gave way to the formation of Dias and La Gaceta de los Negocios). Most of the present mass media structures. With the the 140 daily newspapers are published in constitution of 1978 Spain became a parlia- Spanish. Only six of them are in Catalan mentary monarchy. A regime was estab- and one in Basque, and a few more are bilin- lished which recognizes the existence of gual, Catalan/Spanish, Galician/Spanish and diferent regions and cultural particularities. Basque/Spanish. Newspapers printed in Seventeen autonomous regions (Comuni- Catalan receive economic help from the dades Autónomas, CCAA) were set up, each government of Catalonia, in order to miti- having its own parliamentary and govern- gate their economic difficulties. The circula- mental system. The state administration is tion rate of these newspapers is about distributed between the central and the eighteen copies per thousand inhabitants. regional governments. The regional govern- The three daily newspapers with the high- ments handle issues concerning culture, est circulation are the national newspapers health, urbanism, security, etc., with some but in most Autonomous Communities they variations. Defence and foreign policy are are exceeded in sales by the main regional the prerogative of the central government. newspapers. Among these newspapers we The constitution acknowledges the linguis- find the next two daily newspapers with the tic plurality of Spain. Spanish (or Castilian) is highest circulation, El Periódico and La the official language of the whole country. Vanguardia in Catalonia. We find too El Catalan, Basque and Galician are official Correo and El Diario Vasco (Basque Country)

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and La Voz de Galicia (Galicia), among penetration over the whole population are as others. In 1999 and 2000 the total circula- follows: Navarra (60.2 per cent), Cantabria tion of the five most important newspapers (58.6 per cent), País Vasco (58.4 per cent), went down, increasing a little in 2001. In Asturias (51.5 per cent), Baleares (49.2 per 2002 two titles (El Pais and El Mundo) also cent), La Rioja (40.5 per cent), Aragón (40.4 increased their circulation a little. El Pais is per cent), Castilla–León y Cataluña (39.5 per the daily newspaper with the highest circu- cent each), Canarias (39.2 per cent), Galicia lation (436,302 copies) and with the biggest (37.6 per cent), Canarias (32.4 per cent), readership (1.6 million). That represents Madrid (32.3 per cent), Murcia (30.0 per only 4.2 per cent of the total Spanish popu- cent), Extremadura (28.5 per cent), Andalucía lation. ABC and El Mundo have a circulation (27.4 per cent) and Castilla–La Mancha of almost 292,000 and 302,000 copies respec- (19.6 per cent). tively, and El Periódico and La Vanguardia The concentration of circulation of daily more than 184,000 and 191,000 copies newspapers fits (for 90 per cent at least) into respectively. In comparison with other the following twelve groups: countries, these daily newspapers have a very low rate of penetration. However, they are daily newspapers of reference and they shape public opinion. 1 Prisa, with three national daily In 2000 the total circulation of sporting newspapers, one of general infor- daily newspapers decreased in relation to mation, El Pais, one of sporting 1999 and stood at 787,204 copies, with a information, As, and one of busi- small increase since. Marca had the highest ness information, Cinco Dias, and national circulation and its audience was 6.5 four provincial daily newspapers. per cent of the total population. As, the 2 Recoletos, with two national daily second most important daily sports newspa- newspapers, one of sport informa- per, is published in Madrid, as is Marca and tion and with the higher circula- had an audience of 1.8 per cent of the total tion of the newspapers, Marca, and population. Mundo Deportivo and Sport are one other of business information, published in Barcelona and have an audience Expansión. of 1.3 per cent and 1.1 per cent of the total 3 Correo, with eleven regional and population, respectively. In 2000 the total provincial daily newspapers. circulation of daily business newspapers was a 4 Zeta, with ten regional and provin- little more than 100,000 copies and increased cial daily newspapers. Between a little from 1999. Expansion, Cinco Dias, La them, one of sport information, Gaceta de los Negocios had the following circu- Sport, and one of general informa- lations: 62,925, 28,287 and 13,753 copies, tion, El Periódico de Catalunya are respectively. These are rather low figures. very important, having dual lan- The median rate of circulation of Spanish guage editions, one in Spanish and daily papers is 30,000 copies per day and only one in Catalan. thirty newspapers have a higher rate. The 6 Prensa Española, with one daily circulation rate of daily newspapers is among newspaper of general information, the lowest in Europe but it has been growing ABC, and eight regional and provin- slowly in recent years. In 1987 the rate was cial daily newspapers. seventy nine copies per thousand inhabi- 7 Godó, with a regional daily news- tants, while in 2000 it had grown to 107 paper, La Vanguardia, and other copies per thousand inhabitants. In the last sport information daily newspaper, few years these rates have stabilized. The rate Mundo Deportivo. is lower, however, if we consider only general 8 Unedisa, with nine regional and information daily newspapers and disregard provincial newspapers, one of sports and economic dailies. In this case the them, El Mundo. circulation rate went from sixty nine copies 9 Prensa Ibérica, with thirteen regional per thousand inhabitants, in 1987, to ninety and provincial daily newspapers. copies in 2000. In the northern regions the 10 Voz, with two regional newspapers. rate is higher – in Catalonia about 115 copies 11 Joly, with four. per thousand. In 2000 total circulation and 12 Serra, with three, and La Region, total audience were higher in the northern with two. region. Per Autonomous Region, the rates of

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Since 1 January 2002 there have been only In recent years, the revenue from direct eleven because the Correo and Prensa sales has been going down. In 1999 it repre- Española groups have combined. sented 49 per cent of total revenue while in To be more precise in describing this 2000 it was only 43 per cent. In the same model of small firms and 140 low-circulation years, advertising contributed 51 per cent daily newspapers, it should be added that in and 57 per cent, respectively, to the total several cases the daily newspapers are ver- income of the daily newspapers. From sions of one master edition because many January to September 2001 total advertising daily newspapers are owned by the press or investment in the media went down about multimedia groups. The ten daily news- 7 per cent by comparison with 2000. In the papers with the highest circulation have same period the revenue from advertising in nearly 45 per cent of total circulation. daily newspapers went down by about 10 There is a trend towards concentration of per cent. The economic outlook for daily ownership and production. A mere twenty nwspapers is not very promising among 140 daily newspapers control nearly A little less than two-thirds of the total 70 per cent of the total circulation of the population do not habitually read daily newspapers and almost two-thirds of these newspapers. In 2000 the rate of reading was newspapers are owned by daily press groups 36.3 per cent of the total population, a little or multimedia groups. Foreign capital has above 1999. The majority of readers are: found it much more difficult to enter the men; living in cities of more of 10,000 inhab- Spanish daily press. There are only two itants; of upper, upper middle and middle foreign groups represented in the daily news- social class; on average forty years old; and in paper press: the British group Pearson, with employment. In recent years the total circu- the majority of the capital of the Spanish lation of the Sunday supplements of the group Recoletos, and the Italian group national daily newspapers has decreased. Rizzoli, with a majority of the capital of the However, that of the supplements of some Spanish group Unedisa. These groups have regional daily newspapers has increased, for formalized their presence in newspapers by instance, El Semanal, El Semanal TV and, acquiring part of the capital of newspaper since 1998, Mujer de Hoy. These three supple- publishing companies. None has created its ments are published by Taller Editores, the own newspaper. The expansion of the majority of whose capital is owned by the Spanish press groups into foreign markets is Correo group. In 2000 the audience for these not very significant. Only the Prisa group supplements was 11.6 per cent, 7.6 per cent owns part of the capital of foreign publishing and 6.2 per cent of the total population, companies, for instance, Publico (Portugal) respectively. and La Prensa (México). Prisa also has an In general, in 2000, the circulation of daily agreement to exchange information products newspapers had stabilized and the circulation with Le Monde (France), La Reppublica (Italia) of some of them had decreased. In the near and The Independent (United Kingdom). future it seems that newspaper circulation is The financing of daily newspapers comes going to decrease further. This is due to the from subscriptions, from direct selling existence of the free daily press published, for copies and from advertising. Subscription the moment, in Madrid and in Barcelona by revenue is not very important except in a Indice Multiprensa and Metro Internacional. very few cases of daily newspapers of general This means new competition for advertising information like La Vanguardia, with about revenue. For instance, Metro Internacional 27 per cent of its total revenue from this has plans to distribute in Madrid and source, La Voz de Galicia, with 18.4 per cent, Barcelona 450,000 copies of its free daily and nearly twenty five other low-circulation newspapers and covers more than the tradi- dailies, with about 25 per cent of their total tional daily newspapers. In 2001 investment revenue derived from subscriptions. As a in advertising and the readership of the media source of revenue it has been in continuous went down, owing to the global economic cri- decline for the last two decades. As for the sis. So there are two reasons to say that the remaining daily newspapers, including the daily newspapers have a poor future outlook. national newspapers (ABC, 8.2 per cent of its revenue from subscriptions, El Mundo, with The periodical and magazine press 5.6 per cent, and El Pais, with 1.9 per cent) In the broad field of the non-daily press, the sources of revenue are almost exclu- Spain has an enormous quantity of periodicals. sively direct sales of copies and advertising. Some 7,000 are produced by about 1,000

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publishing companies of the non-daily amount of foreign investment. Among them press, most of them having a small circula- are the following companies: Hachette– tion. Only about 100 titles count as impor- Filipachi, Edipress, Heres, Gruner & Jahr, tant, with only a few exceeding 500,000 Axel Springer. The Spanish company pub- copies. Unlike the newspapers, most maga- lishing the yellow weekly journal Hola has zines have a national reach. This fact makes invested in Great Britain and in France. it easier for them to survive. In Catalonia The readers of the non-daily press (the there is a local Catalan-language press. In majority of them reading Prensa del corazón) 2000 the total audience of the periodical are predominantly: women; living in cities and magazine press was 53.6 per cent of the of over 10,000 inhabitants; middle-class; total population, much the same as in 1999. and averaging thirty eight years old. The The audience is clearly lower than it was audience in different Autonomous Commu- between 1988 and 1997. The weeklies have a nities is as follows: Galicia (42.4 per cent); larger readership than the other periodicals Castilla–La Mancha (44.9 per cent); Andalucía but the monthly market has been increas- (48.7 per cent); Extremadura (50.2 per cent); ing. The audiences for general information Cataluña (60.7 per cent); Asturias (61.1 per weeklies are a little more than 6 per cent of cent); Baleares (65.7 per cent) and Cantabria the total population. The most important of (67.2 per cent). them is Interviú with a circulation, in 2000, of 158,690 copies and its audience was 2.7 Book publishing per cent. The circulation of the rest is less There are nearly 2,000 private book publish- than 50,000 copies and the audience less ing houses. About 25 per cent belong to the than 0.5 per cent. main groups. The process of concentration The yellow weekly press (Prensa del and transnationalization began in the 1970s. Corazón) has the highest circulation and audi- The most important Spanish group, Planeta, ence (70 per cent) of non-daily press. In 2000 is going to be a multimedia group. It has busi- the most important journals by their circula- ness in Latin America and several agreements tion and audience were the following: Pronto with other companies, the most important (circulaton 981,223 copies and 10.3 per cent with Agostini. There are some Spanish com- of audience); Hola (circulation 573,914 copies panies belonging to media groups such as and 6.6 per cent of audience); Lecturas (circu- Prisa, Correo or Prensa Española. There are lation 301,212 copies and 4.4 per cent of audi- many foreign groups in this industry and the ence); Semana (circulation 243,310 copies and most important are Bertelsmann, Havas 4.3 per cent of audience). The rest are under (Vivendi), Hachette (Lagardère), Pearson and the 4 per cent audience level. Mondadori. All these groups have bought Television weeklies have about 10 per cent Spanish companies. of the total audience. The most important Book production in terms of ISBNs has are: Teleprograma (circulation 185,992 copies increased since 1997, numbering 67,106 titles and 2 per cent of audience); Telenovela and in 2001. In 2000, 93 per cent of the books Supertele (circulation 1 million copies and published were in Spanish languages (more 15 per cent of audience, each). then 80 per cent in Spanish, 12 per cent in The most important monthly journals Catalan, 2 per cent in Galician, 2 per cent in and their audiences are the following: Canal Basque and the rest in other languages), 3.9 Plus (8.9 per cent), Canal Satélite Digital (5.3 per cent in foreign languages and 3.1 per cent per cent), Muy Interesante (5.1 per cent), Quo were multilingual. The median print run is (3.3 per cent) and El Mueble (3 per cent). At about 4,000 copies. Book sales in the Spanish the level between 2 per cent and 2.8 per cent market in 1999 were worth about ¤2,500 mil- of audience there are six journals; between lion. Exports were worth about ¤400 million. 1 per cent and 1.9 per cent of audience there In 2001, as always, readership is low, at only are thirteen; the rest are under 1 per cent of 58 per cent of population and with only 36 the audience. per cent reading books often. The non-daily press has two sources of revenue: the direct sale of copies and adver- tising. In 2000 the revenue from advertising The electronic (audio-visual) media was ¤619 million, increasing 9 per cent by comparison with 1999. Television The majority of publishing companies of There are two national public television chan- the non-daily press have an important nels, Televisión Española, in the RTVE

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corporation. There are ten regional public television channels belonging to regional radio Viaplus/Altadis (18 per cent); and television corporations: TV-3 and Canal Euoproducciones (9 per cent); TF-1, 33, in Catalonia; ETB-2 and RTB-1, in the SIC and Sauzal Intereconomía, 7 per Basque Country; TVG, in Galicia; Telemadrid, cent each; others 3 per cent. in Madrid; Canal Sur and Canal 2 AND, in 8 Veo TV: Unidesa (26 per cent); Andalucía; Canal 9 and Noticies 9/PUNT 2, in Recoletos (25 per cent); Iberdrola (20 Pais Valenciano; and TVA, in Aragón. per cent); J. Abelló (15 per cent); The private television companies have, others 14 per cent: among others, as their main shareholders In March 2002 both platforms signed Spanish and foreign communication groups. an agreement, which the government The shareholders of private television com- will approve before 20 December, panies are as follows. to become a single digital satellite platform.

1 Antena 3 TV: Telefónica (48 per cent); Santander Central Hispano Bank (29 In each Autonomous Community the law per cent); RTL (16 per cent). At the permits two cable operators: one for same tima RTL is participated in by Telefónica and another for Retevisión or Pearson (22 per cent), Bertelsmann Cable Europe. Cable is not much developed (37 per cent), GBL (30 per cent), and in Spain. In 1999 there were 741 local ter- others (7 per cent). restrial television stations with distribution 2 Telecinco: Berlusconi (40 per cent), on cable television. There are numerous dif- Kirch (25 per cent) and the Correo ferent types of ownership, management and and Planeta groups, 10 per cent each. technological balance. Their future is not 3 Canal Plus Sogecable (pay-television): clear, especially with the coming of digital Canal Plus Francia and Prisa, 20 per television. cent each; Group March (13 per Public and private television companies cent); Bilbao Vizcaya Argentaria bank base their income on advertising. There are (5 per cent); Caja Madrid and no television licence fees. However, public Eventos, 4 per cent each; and 5 per broadcasting corporations can receive funds cent on the stock exchange. from the state and Autonomous 4 Canal Satélite Digital, a digital satel- Communities if they do not receive enough lite platform: SogecableGroup Prisa income from advertising to finance them- (82 per cent); Warner Brothers (10 per selves. From 1982 to 1992 TVE did not cent); Antena 3 TV and Proarda, 5 per receive any state funding because of its high cent each. advertising revenue. Since 1993 RTVE has 5 Via Digital, the other digital satellite received public funds. In 1999 the total platform: Telefónica (16 per cent), income from advertising was ¤2,072 million SMM (16 per cent), Televisa (10 per and in 2000 it was ¤2,275 million. The major- cent), Direct TV (7 per cent) and the ity of this income (85 per cent) went to TVE, rest of the capital is owned by Telecinco and Antena 3 TV. Two per cent Mediapark, Recoletos and the was for Canal Plus because it is pay-television, autonomous public television chan- with 887,000 suscribers in 2000. The rest nels TVG, Canal 9 and Telemadrid. went to autonomous television stations 6 Quiero TV, digital terrestrial televi- (40 per cent of it to TV-3 and Canal 33) and sion: Retevisión (48 per cent); other television stations, including local Mediapark and Sofiscable, 15 per cent television. each; regional Cajas de Ahorros (10 In 2001 the total television audience was per cent); Carlton Com (8 per cent); near 90 per cent of the total population. The and Ivercatalunya cable (4 per cent). median consumption in 2000 was 222 min- There are two companies that will utes per day. operate with new terrestrial digital Television programming is highly depen- open channels and their capital dent on advertising, forcing public and pri- involves the following companies: vate enterprises to choose programmes likely 7 Net TV: Prensa Española (25 per to attract a large audience: light entertain- cent); Pantalla Digital (25 per cent); ment (talk shows, variety, etc.), films, series and sport, mainly football. Rarely do cultural

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programmes get shown, and never in prime Union Radio (SER plus Antena 3 Radio) of time, except on the two public television the Prisa group 40 per cent, COPE 25 per channels, La 2, national, and Canal 33, cent, Onda Cero of the Telefónica group 17 regional. Among the other television chan- per cent. Thirteen per cent went to other pri- nels there is no great difference between the vate radio and the rest to autonomous radio. public and the private programming poli- In 2000 the national average of listeners cies. The only exception is pay-television, was about 53 per cent and the average of which does not rely on advertising and consumption time was ninety five minutes a broadcasts basically films, sport and other day. Radio listeners are: predominantly thematic content. The reduction in the men; more in cities of over 10,000 inhabi- number of films shown in prime time on tants; of all social classes; with an average open television channels has been compen- age of forty two; and in employment. sated for by Spanish-produced series. Of the A near majority of programmes are pro- films shown on television, public and pri- duced by the radio channels themselves. But vate, about 60 per cent were from the United some production companies exist with close States and only about 22 per cent were ties to radio channels. For instance, the Spanish. The entry of Warner Brothers in the media group Zeta and the radio channel social capital of Canal Satélite Digital of Ona Catalana have created the Radio Sports Sogecable, owned by Prisa group, has rein- Catalunya company to produce sports infor- forced the position of this group in the mation for this radio channel and other control of audio-visual content. This group audio-visual media of the group. also has agreements with Walt Disney/ In 1999 the Autonomous Communities Buenavista, Paramount, Columbia Tristar awarded licences for FM radio. This is a very and Polygram, among others. concentrated sector, so it is difficult for inde- Telefónica has also enlarged its produc- pendent radio to work. The total audience tion of content, buying 25 per cent of for radio is decreasing, perhaps because of Mediapark and Endemol. Via Digital and music listening on the Internet. Antena 3-TV have agreements with Filmax, Twentieth Century Fox and Movierecord Film and video Cine. In 2000 there were about 1,305 exhibition cinemas and 3,505 screens. 292 Spanish Radio films and 1,464 foreign films were exhibited There is a public national network of Radio (see statistics section). Nacional de España in the RTVE corpora- tion. Some regional radio stations are owned The Internet and by regional radio and television corpora- related on-line media tions. In 1998 there were 621 public local radio stations owned by town councils There are still very few media companies dis- (radios municipales). The majority of private tributing only by the Internet, because the radio channels are owned by Spanish media majority of them have as an information groups, because there is almost no inter- source the same content as the traditional nationalization. SER and Antena 3 Radio media. Almost all newspapers, radio and belong to the Prisa group. Onda Cero television stations are also on the Internet. belongs to the Telefónica group and trans- This is not the case with magazines. mits national digital radio too. COPE is 74 Almost all the media groups have created per cent owned by the Catholic Church, but new companies to develop their Internet the Prensa Española and Correo groups have business. An example is Prisacom, of the 5 per cent of the social capital each. In the Prisa group, but there are not enough statis- development of digital radio there are or tics available to allow an analysis of the on- will be the following media groups: line media separate from the traditional Telefónica, Prisa, Unidesa, Recoletos, Planeta, media. The mass media have reached their Correo, Retevision, among others. own definition of the Internet role on the National public radio has no advertising basis of their own traditional trademark. income, only regional and local radio (radios They want to secure a share of possible municipales). Private radio bases its income future business. More and more, television, on advertising. In 1999 the total income of radio and newspapers distributed by the advertising was ¤466 million, and in 2000, Internet offer complementary services like it was ¤502 million. It was divided as follows: chats, forums, etc.

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Some local and regional newspapers have electricity); foreign media groups; regional been created for distribution solely by the or local companies; and audio-visual Internet, such as Estrella Digital, El confiden- programme producers. cial.com, Madridiario (all in Madrid) and Regulation and public policy have driven Vilaweb in Barcelona, which, in 2000, had the creation and the development of the pri- 425,000 visits. There are also some radio sta- vate commercial communication groups, tions distributing only on the Internet, like both for the industrial benefits of competiti- World Wide Radio and El Mundo Radio. ion groups and for political reasons. For Some media groups set up services to dis- instance, the socialist party (PSOE) during tribute by the Internet, for instance Unedisa its period in power (1982–96) favoured the and Recoletos, which created expansión y growth of the Prisa group in several ways. empleo.com, or group Telefónica, which Among other things, by awarding licences uses Terra to give services through its own for FM radio; or allowing the merger (con- media. centration) between the two important In February–March 2001 users of the radio companies (SER and Antena 3 Radio); Internet numbered 6.9 million. From these, or by awarding a licence for private tele- 1.97 million were consumers of electronic vision (Canal Plus). In 1996 the conservative newspapers, 803,000 of magazines, and party (Partido Popular) came to power. 613,000 of radio. The number of visits, Indirectly, it promoted the establishment of according to the media, were the following: a new communications group led by 11 million for general information newspa- Telefónica. At the same time this company pers; 3.3 million for sports newspapers; was in the process of being privatized. 187,000 for business newspapers; 13.4 mil- Owing to the varied regulation of the tele- lion for monthly magazines; 10 million for vision industry, it is difficult to get a picture weekly magazines; 18 million for radio; and of the whole. We can say that two general 31.3 million for television. In March 2001 trends already apparent in 1997 are still the media having most visits were: El Mundo under way. One is privatization and liberal- (5 million); El Pais Digital (4.5 million); ization. There are other interrelated media Marca (1.5 million); the weekly magazine trends: cabling, digitalization (and hence, Hola.com (4.5 million) and Plus.es (0.9 from both, channel proliferation, concen- mllion). tration of ownership and of media activities In 2000 the profile of the Internet audi- and convergence of telecommunications, ence was: more men (63 per cent); living in cable and broadcasting). The liberalization cities; middle-class (37.1 per cent); upper of broadcasting and the concession by the middle-class (27.6 per cent) or upper-class state of licences for digital radio and tele- (24.1 per cent); lower middle-class (9.8 per vision have closely followed the liberaliza- cent) and working-class 1.5 per cent. The tion of telecommunications. In 2000 the average age was 30.4 years and they are in state allocated the licences for third-generation employment. In 2000 the total advertising mobile telephony and for cordless tele- revenue for the Internet was ¤53 million, phones, and completed the liberalization of two and a half times above that for 1999. the television distribution channels. The media on-line are at the beginning of The convergence of telecommunications, their development. In the long term it can broadcasting and the rest of the mass media be expected that the media will provide has been expected to occur along with more services by the Internet, with lower entrepreneurial convergence. The latter technical but higher marketing costs, and by increased when new concessions were creating pay services. awarded for running a business in the mass media or in telecommunications services. Some of the shareholders of the groups that POLITICS, POLICY, LAW obtained licences for telecommunications are also in the audio-visual and other mass- AND REGULATION media businesses. On the one hand, the mass media groups like Prisa, Unedisa and In defining policy we refer to different actors Recoletos entered the telecommunications and their interests. These include: the market through the cordless telephone busi- national government; the regional govern- ness. On the other hand, the companies ments; the large communication groups; coming from the telecommunications financial groups; basic service groups (e.g. market, like Telefónica and Retevisión,

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entered the cable television market, the new mass media but it advises on interconnection digital television market and the mobile rates, on cable, and on the use of the air- telephone market. With France Télécom, waves. In general CMT has to oversee all these two companies will carry the signal of aspects of (broadcast) transmissions. There is terrestrial digital television. no national authority of the audio-visual. The conventional private television com- Only in Catalonia is there an Audio-visual panies that are members of the Union of Council of Catalonia (CAC). Open Commercial Televisions (UTECA), Royal Decree 991, of 1998, established the have demonstrated their interest in being in Council on Sports Broadcasting and it deter- the business of carrying the terrestrial digital mines every year those sports events of television signal, whether by agreement national interest which have to be broadcast with the existing network operators, or by on open television. There are national and creating their own network. The electrical regional parliamentary commissions for the companies, like Endesa, Unión Fenosa and control of public television and radio. In Iberdrola, have investments in cable televi- Catalonia there is a self-regulation agency – sion and in the new telephone licences. the Information Council – that is dependent Also, banks, savings banks and other invest- on the journalists’ association (Colegio de ment companies have invested in audio- Periodistas de Cataluña). In addition to the visual and telecommunications companies. initiative of journalists, some communica- It is also necessary to consider the conver- tions companies have editiorial statutes, gence between the content of the media and which apply generally to questions of jour- the telecommunications business. This nalistic ethics. opens the way for the content industry to move into other services distributed through Press policy radio, television and the Internet. The first consequence of this behaviour is the change With reference to the legal framework, the in size of the competitor companies. On press in Spain is not controlled by any spe- increasing the capacity of transmission, tele- cific legislation since the promulgation of phone traffic (like the distribution of electri- the 1978 constitution. Formerly, the law of cal energy) becomes a raw material and its 1966 was an impediment to the normal price decreases. Then the infrastructure development of press activities. The activity companies, like Telefónica, Iberdrola or of the press is now free, subject only to leg- Endesa, seek to enter new business services islation protecting honour and individual that allow them to increase their profit mar- privacy, the new penal code, approved by gin. That is why they have invested in the parliament in November 1995 and the con- production and distribution of broadcasting stitution. Therefore, there are no limitations content and services. on the ownership or the financing of publi- Arising from the need to enlarge its scale cations. The participation of the press com- of operations in a globalized and very com- panies in radio, television and Internet is petitive market, the group Santillana merged allowed. with the Santillana group; Telefónica created In 1986 the entry of foreign capital into a new company at the end of the 1990s, the Spanish press was liberalized, so as to Telefónica Media, in order to control its busi- adapt Spanish legislation to the regulations ness in the Spanish and Latin American mass of the European Union. Since then many media (in 2001 it reorganized the company press groups have started activities in Spain, and promoted Admira to be the top com- most of them in the field of the non-daily pany of the holding). From 1 January 2002 press, like Bertelsmann, Hachette, Bauer, the Correo group and Prensa Española Springer, VNU. Other groups were estab- became one company. Prisa and Telefónica lished in Spain earlier, by taking advantage are now listed on the stock exchange. of some loopholes in the law, like Gruner & For the future, nobody knows what the Jahr. response of consumers will be in the face of From 1988 onwards there has been no an increasing supply of existing or new con- help from the state, directly or indirectly, to tent and services arising from these types of the press (only a reduction in postal and convergence. telecommunications rates). The govern- There are some regulatory agencies. The ments of some Autonomous Communities Commission on the Telecommunications with their own language (Catalonia, the Market (CMT) does not work directly on the Basque Country) give economic help to the

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press (magazines and newspapers) to make previous television regulation, which was up for the difficulties of sustaining a press chaotic and partial. In television, the 1980 with a language other than Spanish. statute established the Radio Televisión In order to overcome the economic conse- Española (RTVE) monopoly. Under the con- quences of low circulation and increasing trol of parliament, RTVE developed the state costs, especially of paper, and low advertis- jurisdiction in television, and also managed ing investment in 2001, newspapers created the public radio channels (Radio Nacional a number of parallel strategies in the 1980s de España, RNE). In 1983 the passing of the and 1990s, still continuing. Some of the ‘third channel law’ allowed the Autonomous national newspapers publish special editions Communities to create a television channel in some Autonomous Communities (for for their geographical area in addition to the instance, El Pais), in order to increase their two RTVE channels and under the same sales regionally. Another strategy is to estab- charter as RTVE. The regional parliaments lish new press groups, publishing regional were in control and could use the Third newspapers in some Autonomous Commu- Channel broadcasting network of RTVE. nities, sharing news with other Commu- Retevision had the monopoly to broadcast nities (Grupo Z, which publishes El Periódico until 1999; it was a public institution now de Cataluña, La Voz de Asturias, El Periódico de privatized. Extremadura and El Periódico de Aragón; A law passed in 1988 allowed private com- Prensa Ibérica, with newspapers bought panies to run three national channels. from the state in 1984; Comecosa, set up by Foreign participation was limited to 25 per the Correo group and regional newspapers). cent. The same limit applied to Spanish Finally, by concentrating ownership, as the newspaper publishing companies. In 1999 Correo group and the Prensa Española group this law was changed to permit, among did in 2002. other things, an enlargement of the limits of For the first time, in 2001, a collective participation in social capital on the part of industrial agreement was signed between the television companies (49 per cent), for unions of journalists and publishers of foreign as well as for Spanish companies. newspapers (Aede). The companies are also permitted to go to As in recent years, the main non-daily the stock exchange. press publishing companies continue with At the end of 1992 a law was passed in the same strategy. They launch or close order to regulate television by satellite. In some magazines to cover market niches, spite of initial opposition by the private com- but, in fact, they launch magazines for a panies, in July 1994 the ‘Television without short time in segments occupied by other Frontiers’ law was passed, bringing Spanish magazines or by the same non-daily press legislation into line with EU Directive publishing company. Thus they try to elim- 89/552. After more than two years of debate inate competition. a law regulating satellite and cable telecom- munications was passed in December 1995 The electronic media: and the technical directions for the execu- television and radio policy tion of this law were approved in February 1996. The law defines cable communications After Franco’s death in 1975, in the radio as a public service and satellite communica- sector public and private ownership and tions as not a public service. The law on ter- management coexisted, and freedom of restrial local television was approved in 1995 information was introduced in 1977. and permits two television channels in every However, all legal structures and the organi- place. Licences are awarded for existing local zation of radio were maintained until 1987. television but they do not enlarge the In October 1956 the first official television phenomenon. Law No. 66 of 1997 approved broadcasting began. In 1965 the second offi- terrestrial digital radio and television. The cial television channel was launched. In the royal decree of 1998 approved the national 1980s and in the 1990s there was an impor- technical plan for terrestrial digital television. tant change in the legal regulation of tele- Royal Decree 1462 of 1999 established the vision, radio and the other electronic media. right of the consumer to have information Its effects continue today. about the content of programmes. Law No. Television reached adulthood in 1980, 22 of 1999 was passed bringing Spanish when the Radio and Television Statute was legislation into line with the European promulgated. This statute superseded the directive on ‘Television without Frontiers’.

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In 1987 the Telecommunications It could have adverse effects in the audio- Regulation Law (LOT) was passed. Radio visual industry in the future if there arose broadcasting is considered a public service, an economic crisis and less advertising with state control of operating licences. In investment. 1989 a technical plan for FM radio was The whole legislation liberalized and approved. The latest technical plan for FM established the requisites for the awards and radio was approved in 1998. The Auto- has had an effect on the structure of the nomous Communities can issue licences to mass media. The trend of the legislation has operate on the FM band. After twelve years been to eliminate the limits on private activ- without any regulation, in April 1991 a law ity (for instance, satellite is not a public was passed allowing municipalities to broad- service; companies are able to have 49 per cast local radio financed by their own cent of the social capital in the television budgets and local advertising. Royal Decree business; to award licences for digital radio 1287 of 1999 (the technical national plan for and television, the legislation regards it as digital terrestrial radio) was passed for positive if companies have financial capa- national radio. Regional and local digital ter- city, experience of the industry and large restrial radio are not yet regulated. On size). Increasingly, there are fewer limits on 4 October 2002 the government modified media concentration. the law on private television companies of From the incorporation of the EU direc- 1998. It will be included in the General tive into Spanish legislation comes the Budget Law (Ley de Acompañamiento de los requirement for television companies to Presupuestas Generales) of 2003. It will ease invest 5 per cent of their revenue in the limits on participation by television independent production. But there is no companies in the social capital (100 per cent) definition of what are the independent of foreign as well as of Spanish companies. audio-visual production companies. As a At the end of 2000 the government com- result, television companies both buy audio- pleted the award of national digital radio visual products from these companies or buy licences. They went to two communication their social capital, which makes them less groups: Correo and Godó. At the beginning independent. Content regulation applies to of the next year, the government awarded advertising content and its duration and ten more licences. The process of awarding also regulates content for reasons of the pro- the licences for regional digital radio is tection of childhood, minorities, etc. open because the government has awarded In 2001 the Promotion of Cinema and only the licences for the Autonomous Audio-visual Law was passed. This concerns Community of Madrid. national subsidies for production, distribu- However, the development of digital radio tion, promotion and the preservation of the could be slow and some studies say that it audio-visual heritage through the Cinema will take at least five years for digital radio to and Audio-visual Institute. The Autonomous change the radio map, because of the fol- Communities also have programmes to help lowing circumstances: the high price of the the audio-visual industry. radio receivers; the lack of experience of In coming years, the Spanish audio-visual dealers; and the competitive development of scenario will change. There will be more the mass media, especially by Internet. operators competing for a slow-growing and In 2000 the government extended its allo- more fragmented audience. Some specialists cation to the three private national terres- say that the business of the open television trial television networks. The government networks will decrease. As with the audio- gave them two years for the transition to ter- visual map, the programme production restrial digital television and awarded two industry will face up not only to growth but open national television channels operating also to the problem of entering the market with digital technology. The government without losing its personality and without took this decision because of the pressure becoming just one appendix of the audio- from the communication groups. They want visual operators. to complete their audio-visual mass media Reduced advertising investment in 2001 structure as quickly as possible. and the creation of channel networks Because of that urgency, digital television between local television and communica- licences have been allocated without defin- tions groups, without a legal framework, ing the role of national and regional public could influence the future audio-visual television or the means of financing them. scenario.

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Policy for the Internet and flat rate for Internet connections. Since related on-line media November 2000 it has been possible to choose metropolitan call telephone opera- The role of the state is mainly confined to tors (until that date only Telefónica con- regulatory and tariff questions. The govern- trolled these calls). The rate system for ment has begun programmes to encourage consumer telephones and access to the an expansion of Internet use. The law of Internet was brought in. In March 2000 a 1999 is concerned with the certification of regulation was passed to allocate domain electronic signatures. Royal Decree 7 of 2000 names under codigo.es. That opens the door concerning urgent measures in the telecom- to the private companies. There is a project munications field established a programme of law concerning the information society of telephone tariffs designed to introduce a and electronic commerce, affecting content.

STATISTICS

National population 41,116,800 Number of households 12,100,000 Movie admissions (ticket sales), 2001 135,400,000 Books published, 2001 67,000

Print media Circulation of main national dailies, 2001 El Pais 436,302 El Mundo 302,122 ABC 291,950 Marca (sport) 403,049 As (sport) 158,780 Expansion (finance) 62,925 Cinco Dias (finance) 28,287

Regional dailies La Vanguardia 191,673 El Periodico de Cataluna 184,251 El Correo Espanol/El Pueblo Vasco 132,113 La Voz de Galicia 107,850 Source: OJD.

Broadcast Audience share of television channels, 2001 (%) media TVE-1 (national and public) 29.7 La 2 (national and public) 5.3 Public regional television 17.4 Telecino 21.2 Antena 3 19.5 Canal Plus 2.8 Soure: EGM-AIMC.

Audience share of radio channels, 2001 (%) (Conventional)

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Ser 34.3 Onda Cero 19.9 RNE-1 (public) 14.4 COPE 12.8 Catalunya Radio (public, regional) 4.4 Canal Sur (public, regional) 2.2 Music – ‘formula radio’ Cadena 40 25.1 Cadena Dial 17.7 Other musical 22 Source: EGM-AIMC. Number of households with: Cable or pay-television (2000) 3,570,000 Percentage with: Video-cassette recorder (2001) 71.0 Satellite television (2001) 11.4

Electronic Number of households with digital television 2,300,000 media Number of Internet users (2001) 7,390,000 Personal computer ownership, 2001 (%) 33.3

Mobile phone ownership, 2001 (%) 71

Advertising Newspapers 35.0 spend (%) Magazines 10.0 Television 42.6 Radio 7.4 Other 5.0

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21: Sweden

OLOF HULTÉN

NATIONAL PROFILE coalition governments and minority Social Democratic ones. Sweden was severely Sweden is the third largest country in affected by the banking crisis of the early Western Europe, after France and Spain, cov- 1990s. During the mid-1990s big cuts had to ering a land area of 449,964 km2, with a be made in state, regional and local public population of about 9 million people. There budgets to achieve a better balance in public are only three very big cities, the capital finances. This affected welfare services, as Stockholm being the biggest, with 1.3 million well as increasing the rate of unemploy- inhabitants, including suburbs. The major- ment. After a period of low inflation, foreign ity of the population live in smaller towns trade surpluses (aided by a decrease in the and cities. exchange value of the krona) and shrinking During the last thirty years Sweden has unemployment, households enjoyed an experienced fairly substantial immigration, increase in private spending power in the first from neighbouring Finland, then from early years of the new millennium. south-eastern Europe, the Middle East and Swedish industry is particularly concen- former Yugoslavia. Today 11 per cent of the trated in a relatively few large and mostly population are first-generation immigrants, internationally oriented corporations, many and in the capital region 17.3 per cent. of which have also passed into the hands of Sweden is mostly known for its extensive foreign owners. There has been a growth of welfare system, financed by high taxes. Big high-tech and research-based enterprises, in changes in Swedish economic life and biotechnology and IT. Especially in the industry have, since the 1990s, put the mobile phone infrastructure and software welfare system under pressure. There is still industry, Sweden has attracted venture capi- broad support among the population for tal. On the whole, Sweden is one of the most such things as the public health system, day export-dependent economies in the world. care centres for children and unemployment insurance. In other areas, a mixture of public and private solutions has been intro- duced, most notably perhaps with school STRUCTURE AND OWNERSHIP vouchers, outsourcing of community ser- vices and the state retirement plan (which A special dimension of Swedish cultural since the year 2000 funnels the regulated affairs during a good part of the twentieth percentage of wage earners’ income to the century is worth mentioning here: there was fund(s) chosen by each individual). A num- a predominantly negative attitude towards ber of state-owned services have been the effects of commercialism and its influence opened to private competition, such as rail- in the cultural sphere, including broadcast- way transport, telecommunications and the ing. Newspaper owners were not shy of sup- postal service. porting this idea and attitude, as did public After a long period of strong Social Demo- broadcasters themselves. Public service broad- cratic governments, general elections since casting is still (2002) not allowed to sell adver- 1976 brought in a mixture of non-socialist tising but must rely almost exclusively on the

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mandatory licence fee every household with a newspapers grew at the expense of secondary television set has to pay. titles. In 1971 a state press support system Since Sweden entered into the European was introduced after many years of political Union (1 January 1995), domestic media debate, which helped a number of news- markets have been directly affected by EU papers to survive. Consumption of newspaper regulations. Market logic prevails. Demands copies peaked in 1980, with 580 copies on public budgets clash with political ambi- per 1,000 inhabitants. Twenty years later, tions to preserve viable national cultural however, it had dropped by about 20 per industries. Concentration of ownership and cent (to 475). Sweden, none the less, is still market dominance of a limited number of among the top newspaper-reading countries commercial actors are perceived as a threat in the world. to healthy competition and to the opening Swedish newspapers used to be affiliated up of markets for new media entrepreneurs. to a political party, but today that relation- There are some significant structural ship is much looser, most newspapers pre- trends which affect the Swedish media land- ferring to call themselves ‘independent’. The scape, but there is also a considerable degree Social Democratic press has been reduced in of stability, both in supply and in demand. recent years, and newspapers with an inde- Newspapers still enjoy a strong and presti- pendent liberal orientation dominate. The gious position in the market and in the daily daily press still has a prominent and signifi- media consumption pattern. Private broad- cant political and cultural position. Thanks cast media are growing in economic impor- to a strong local presence and loyal readers tance, but the public broadcasting media are the press manages to keep a large share of still attracting good shares of the audiences’ total media advertising revenue. viewing and listening time. Internet use has Some newspaper owners have nevertheless expanded rapidly in recent years, mainly been active in building local private radio thanks to high household penetration. The stations, introduced in 1993. Publishers were Internet has quickly achieved a level of daily not allowed to own radio stations, but many use on a par with many established media. managed to invest anyway. The Bonnier Broadband infrastructures (high-speed group, the leading newspaper owner in multimedia two-way connections) by cable Sweden, quickly established control of one and fibreoptic networks are beginning their national network, Mix Megapol. household diffusion, but expansion will be There is no regulation against cross- moderate until subscribers are offered a wide ownership between newspapers and other range of services. media, locally or nationally, in Sweden. In the capital, Stockholm, the for example owns three daily newspapers (of six), The print media two radio stations (of ten) as well as being the dominant owner of the national TV-4 The newspaper press network and its local channel in Stockholm. The first modern newspaper in Sweden, The newspaper press consists of four Aftonbladet, was launched in 1830 by a traditional categories: metropolitan morn- wealthy nobleman, Lars Johan Hierta, who ing papers, afternoon tabloids, provincial wanted to promote free trade and voting morning dailies and smaller complementary rights. The first mass-market newspaper, papers, appearing once or a few times per , was started in 1864. This week. The biggest individual newspapers newspaper is today the leading morning belong to the first of these categories, the newspaper in the country, while Aftonbladet metropolitan morning press (see statistics at has become the dominant afternoon tabloid end of chapter), the national circulation of paper, as well as having the single biggest which has, however, been reduced in order circulation. to reduce costs. The most prestigious news- The number of newspaper titles reached paper is Dagens Nyheter in Stockholm. its peak in 1920, then numbering some 240 Svenska Dagbladet, also a morning Stockholm independent titles. While the number of paper, has struggled to survive and has so far different newspapers has since decreased (in succeeded, after repeated capital infusions 2000 there were 160, many of which from different owners as well as annual state belonged to the same owners) particularly press subsidies. between 1945–60, the total number of The government expressed its disapproval copies printed continued to grow. Dominant when Dagens Nyheter proposed to take over

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its rival and the Bonnier group withdrew. in the capital region. Provincial newspapers Instead, Norway’s biggest newspaper pub- also have a higher proportion of regular lisher Schibsted bought Svenska Dagbladet. readers and less competition from other Schibsted has suffered big losses as well. At media. Many local papers might have low the beginning of 2002 the new owners were, levels of circulation, but they are often very however, cautiously optimistic about the profitable operations. Some publishers are in future of the paper, as circulation had the process of building regional chains, by started to rise again in its core market, acquiring titles in neighbouring towns. Stockholm. Some co-operate by jointly owning printing Free morning papers have become an plants and by creating other forms of joint important phenomenon in metropolitan ventures such as in advertising, sales and newspaper markets. Launched in 1995 in marketing. Syndication of features and news Stockholm, Metro quickly grew to become has narrowed the quality gap between the second biggest newspaper there, as well provincial papers and metropolitan papers as reaching profitability. Metro has local with bigger resources. Investments in local editions in Götsborg and Malmö as well, which radio and the Internet are made in order to in total yield a daily circulation of Metro in protect advertising revenue and make use of Sweden of 380,000 copies. The owner is the cross-promotion. MTG Group of Sweden. It is today an inter- The fourth category of newspapers, with national media company, growing out of low frequency of publication (once or twice one single satellite television channel, TV-3, a week), make up about a third of the total launched by MTG’s parent, Kinnevik. Metro number of newspaper titles, thus adding to is today published in a growing number of the pluralism of the press, perhaps mostly in cities in Europe and the Americas (twenty theory. Circulation is low and few of them two editions in fourteen countries in April would survive without annual press subsi- 2002). Metro created a model for other free dies from the state. newspapers owned by competing publishers. In total, as an industry, newspapers had In the second category, afternoon tabloids one of their economically best years ever in have been hit by a decrease in readership 2000. The total volume of advertising had and sales. Young people do not read them as been bigger ten years earlier, but publishers frequently as before. There are four titles in had become more cost-efficient and profit- this category, three of which have been oriented during the 1990s. While critics of bought by Bonnier. Bonnier established the press lament the loss of publishers’ ide- in 1944, which grew to be the alism and their profit orientation, other biggest daily in Sweden and the Nordic observers defend the new market ethos of region, with a peak circulation of 580,000 publishers as their best bet for survival in a copies in 1986. Today, Aftonbladet is the future with more competition from old and biggest in this category. It pioneered new media. Internet publishing and www.aftonbladet.se Sweden will, no doubt, have problems is today the most frequently used Web site in maintaining the present number of in Sweden. The previous owner, the Swedish independent newspapers. Swedes are avid National Organization of Labour Unions newspaper readers, however. Consumption (LO) sold Aftonbladet to Schibsted in 1996. studies reveal newspaper readership in the The new conservative owner pledged to population at a stable thirty minutes per retain the ideological orientation of the day. Fewer readers, however, might sub- editorial section. scribe or buy single copies, and a continued The third category, provincial daily news- slow decline in total circulation is to be papers, is the most stable of the four press expected. Free newspapers, like Metro, have groups, least affected by structural changes increased reading and recruited new readers so far. Most of these newspapers enjoy among urban commuters rather than monopoly status. Only in three locations in diverted them from competitors. So far, the Sweden, outside Stockholm, is there direct consequences of Internet use have not hit competition between rivals of similar size. readership levels or frequency. The most common type of competition is Most readers take out a subscription and between a dominant primary paper and a expect to find their newspaper in the mail- weak secondary one. box early in the morning. Publishers have Advertising revenues are less volatile for organized their own distribution carrier ser- local newspapers compared with newspapers vices, covering a big part of the country,

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supplemented by the postal service in some expression and pluralism. Among commercially non-urban areas. Hence, distribution is a published titles of consumer interest, the major cost item. A specific part of state press largest circulation figures are found in support is earmarked for newspapers deliver- motoring, sailing, sport, gardening and ing copies from other publishers. other hobbies. Professional and organiza- There is a trend toward more concentra- tional journals remain prolific and they tion in the press industry. The biggest pub- are less concentrated in the hands of a few lishing group is Bonnier, owned by the dominant publishing houses. family of the same name (see statistics at The level of internationalization is grow- end of chapter). Bonnier have gradually ing in the market for commercial magazines. expanded their newspaper interests outside Swedish publishers launch their titles in the capital and outside Sweden. Successive other countries, and Nordic and other Labour governments have struggled with foreign companies introduce their products the powerful position of Bonnier in the on to the Swedish market. Successful titles media industries, but in late 2001 (once can travel as ‘concepts’ and benefit from again) gave up the idea of legislation on well known international trade marks. On media concentration. Media legislation is a the Swedish market, Elle from France has complicated political matter, and a constitu- been introduced by Hachette, Cosmopolitan tional matter as well, requiring very broad was launched by the Dutch publisher TTG parliamentary agreement. Norwegian Schib- under licence from the American Hearst sted is now the second biggest newspaper Corporation, and National Geographic owner in Sweden in terms of circulation. It is appears in a Swedish edition. As trade marks, one of the few foreign owners of newspa- journals and magazines support and cross- pers. The six biggest press publishers promote television channels, video produc- accounted for 60 per cent of total turnover. tions and Web sites with the same names, and vice versa. The periodical and magazine press The Bonnier group is an important Weeklies and monthlies are an important publisher in the market for specialist maga- form of mass media in Sweden. There are a zines, especially lifestyle and interior decora- large number of them, more than 3,000 tion. The Danish Allers and Egmont, French titles are registered, reading is increasing for Hachette and IDG of the United States are the sector as a whole, and advertising rev- among the most important foreign publish- enues expand. There are several sub-sectors ers in the Swedish periodical market. The of periodicals, such as traditional women’s biggest circulation among all subscribed weeklies, monthly magazines for numerous weeklies is the family-oriented magazine leisure time activities, professional and trade ICA-Kuriren with 340,000 copies. The high- journals and non-commercial periodicals for est circulation among women’s weeklies is national membership organizations. 250,000 for Allers. The biggest computer Traditionally, family and women’s week- magazine is Computer World with 105,000 lies had large numbers of copies in circula- copies. Illustrerad Vetenskap (Popular Science) tion. However, first television, later daily has a circulation of 145,000 copies. newspapers, have taken a big toll. Swedish So far, the Internet does not seem to have women work outside the home as frequently diminished the role and function of printed as men, more and more in professional magazines. On the contrary, many Web fields. Total circulation in this category has operations also publish printed magazines, gone down, and all titles have been sold to because people like to read printed maga- publishers in other Scandinavian countries. zines with excellent picture and text produc- Another genre of publications which has tion values. Print copies are user-friendly and been affected negatively by other media are the physical product can be socially exhib- comic books. They are predominantly read ited in ways that do not apply to Web sites. by youngsters, who today have access to numerous television channels, computer Book publishing games and the Internet. Total circulation The volume of printed book titles published halved during the 1990s. in Sweden had in 2000 fallen back to the Some hundreds of non-commercial titles level of the mid-1980s. Most of the decrease on science, technology, the economy is accounted for by non-fiction books, and culture are published thanks to special which seemingly more and more frequently state support, aimed at promoting freedom of find their home exclusively on the Internet.

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However, the number of fiction titles has satellite channels. Public service television fallen during the 1990s, while books for was established in 1957 with one channel; children show a stable level. In total, 10,976 in 1969 a second channel was added. Private book titles were published in 2000, of which competition was introduced in 1988, when 10 per cent were fiction and 10 per cent the first commercial Swedish-language books for children. channel, TV-3, launched in London. It was Structurally, book publishing is under- carried by satellite and cable. A domestic going profound changes. There is concen- private channel, TV-4, was allowed to start tration of ownership by the four biggest terrestrial broadcasts in 1992. TV-4 has companies on the one hand and a number enjoyed a legally protected monopoly on the of small publishers on the other, with sale of advertising on terrestrial television, in almost none of the traditional medium-size exchange for serving the whole country with companies left in the middle. Book clubs are news, information and entertainment. important channels of distribution for the Today, there are three general entertain- bigger publishers, while traditional book- ment commercial channels (two by satellite sellers are the most important channel for and one terrestrial) accounting for 45 per small publishers. Public libraries are impor- cent of all viewing in Sweden, there are two tant for both categories. Outlets such as national public service television channels department stores are a significant sales with an audience share of 42 per cent, and channel (a quarter of total book sales in all other channels (most of them satellite- 2000) for mass-appeal titles, ever since the delivered subscription channels) divide the system of fixed and regulated prices was remaining 13 per cent share of viewing abandoned in 1970. The Internet accounted between them. There are two rival pay- for about 10 per cent of book sales in 2000. television platforms (bouquet of services), The state supports the publishing of books Swedish-owned Viasat and Norwegian- as well as authors and readers. Publishers owned Canal Digital, offering a few pre- can apply for direct production support for mium channels in addition to a number of individual titles, at present about 750 titles thematic channels, most of them interna- per year. Buyers of books enjoy a reduced tional services adapted to Swedish audi- level of sales tax on books, the same level as ences, with translations (subtitles). Some of newspapers and cultural products. Authors these thematic channels offer windows with get remunerated when their books are bor- domestic programmes. rowed at public libraries. Local governments Competition between public service are obliged to provide free public libraries. broadcasting and private channels is a mix- Public libraries are important: they make, on ture of different trends, and to a large degree average, ten loans per Swede a year. similar to what happens in other European Reading books remains a stable activity. countries. There is division of labour between Women read more than men, younger people them: private channels offer much more more than older people and those with American fiction and movies, more Swedish higher education more than others. There are soap operas and docu-drama, and tabloid no signs of competition from the Internet to format information. Public service channels the reading of printed books. Major publish- keep their traditional broad output, with a ers have launched electronic books, so far, high proportion of news and information however, without much success. Few e-books and more expensive Swedish drama and fic- are sold. However, sales of printed paperbacks tion. Public channels broadcast about 75 per have doubled since the mid-1990s. User- cent domestic content, TV-4 about 50 per friendliness and low price are the most likely cent domestic, while the two biggest satel- reasons. The book publishers’ association and lite channels, TV-3 and Kanal 5, show 80 per the writers’ guild have not yet been able to cent foreign content, mostly from the agree on electronic copyright. United States. While there is competition for viewers there is no competition for advertising, since SVT is financed by licence The electronic (audio-visual) media fees and very limited sponsorship revenue (in sport). Television Viewing trends show a steady growth for The television market consists of three private channels since the early 1990s, with separate sectors: national public broadcasting, a greater loss among young adults for the domestic commercial channels and foreign public channels. Still, fifteen years after the

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introduction of satellite and cable services, broadcasters, commercial operators and three out of ten viewers are content with manufacturers to create an open and seam- having access to only the three national less environment. As it stands in 2002, digi- terrestrial analogue channels. Introduction tal television offers viewers services of too of more channels in digital terrestrial broad- little extra value, at higher cost than ana- casts in 1999 has not changed this pattern. logue television. In 2000 advertising sales grew bigger than The conclusion in 2002 is that viewers the total revenue of public television for the must be offered more free channels and first time. As private channels have enjoyed less expensive decoders in order to convert higher income, they have invested more in to digital. Broadcasters are eager for a short domestic content and their competitive conversion period, in order to be able to strength has grown. Pay-television operators turn off all analogue transmissions. This have so far not been in a position to invest will save money as well as offer new oppor- in domestic programmes, until now mostly tunities to develop new kinds of interactive in sport (domestic football and ice hockey). services. Public service broadcaster SVT Cable television accounts for about half of therefore, at the end of 2001, called for a all households, about a quarter receive new strategy: giving one free digital con- directly from satellite and the remainder verter (a simple digital box capable only of receive only terrestrial signals. There is a receiving broadcast signals) to all house- slow increase in multi-channel reception, holds who pay the television licence fee. that is, in access to satellite and cable. SVT proposed that households should be Swedish households are on average not fond given a choice of transmission platform, of paying high monthly fees for their tele- and thus given a voucher to cover the cost vision channels. of a standard converter for digital recep- Since 1999 a bigger but still limited ter- tion for cable, satellite and terrestrial. restrial output is offered by digital transmis- Successful conversion could make it possi- sions in Sweden. Four digital frequencies ble to shut off analogue transmissions carry about twenty channels, in a mixture around 2005, rather than some ten to of subscription and free-to-air channels. fifteen years later. Sweden was the second country in Europe, after the United Kingdom, to introduce dig- Radio ital terrestrial broadcasts. In early 2002 only Until 1985 there was only public service a few per cent of households had chosen radio, with three national channels and this service. Digital satellite transmissions twenty five regional stations sharing a were in more demand, 10 per cent. Digital fourth nationwide network. A first break cable accounted for as many as the terres- with the public service monopoly came trial service. In total, digital decoders were when very local, non-profit public access available to about 15 per cent of the audi- radio was introduced in 1979 and made per- ence. Broadband is a fourth infrastructure to manent in 1985 to accommodate a growing bring television to the home in the future. demand from religious, political and various So far, it is limited to bringing high-speed other social groups for air-time. Frequencies Internet access to households demanding were allocated in accordance with requests better and faster surfing. In 2002 some for transmission time, and different organi- broadband operators were introducing zations had to share broadcast hours. Some television channels and limited on-demand of these so-called neighbourhood stations services. formed the nucleus of private commercial On the whole, the introduction of digital radio, introduced ten years later. Since 1993 television has not been a success. So far, public access radio has been allowed to sell digital services are synonymous with sub- advertising. scription to pay-television. Operators of such The number of broadcasting licences services have converted their customers to reached a peak during the late 1980s. By digital reception by supplying them with 2000 it has fallen by half (to 1,200), sharing subsidized decoders. The further diffusion of 175 transmitters around the country. The digital receivers in households is held back composition of organizations has changed by decoders which are too expensive and by slightly over time. At the beginning, politi- a market too fragmented by different stan- cal groups accounted for almost a third of all dards and operating systems. What is needed licences; these have now diminished to 10 is a combined effort by the government, per cent. Ethnic groups have increased

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instead and accounted for 20 per cent in 1998, and several music services are being 2000. The largest number of licensees are planned. In 2002 the government decided related to Churches and spiritual move- to reduce funding for DAB transmissions, to ments (25 per cent). the biggest cities only. The government and In 1993 private commercial radio was private stations were until then unable to introduced. About eighty FM frequencies agree on the regulation of commercial DAB were auctioned off by the government to the operations, deemed necessary to make digi- highest bidders, and will be renewed after tal radio succeed in the market. New ten years. According to the law, each licensed attempts are being made to resolve the station is an autonomous local business, impasse. Private broadcasters have asked for serving its listeners with a certain amount of new forms of digital advertising to be locally originated broadcasts, and to encour- permitted before they will commit resources age plurality, newspaper proprietors may not to DAB. own local radio stations. Quickly, however, the new stations were consolidated into five Film and video networks, leaving very few independent Film production and cinemas were greatly stations. Newspapers are prominent owners affected by television in the 1950s. The in many cases. NRJ, the big French radio number of cinemas decreased and the company, operates the biggest network, with number of cinemagoers in 2001 was 20 per twenty one stations; the Bonnier group owns cent of what it was fifty years earlier. The a network of fourteen stations. Little local number of new foreign and new domestic news or information is provided (with a few films shown in Swedish cinemas has, how- exceptions), as the law accepts the playing of ever, remained stable since the 1990s. recorded music at night as station-originated Cinemas are still very important for the cir- broadcasting. culation of movies on television and video. Parliament changed the law in 2001 to The biggest change during the 1990s in bring it more in line with reality, and also in Swedish cinemas has been the shrinking order to strengthen the rules about local number of foreign films exhibited. The origination. Some ten new FM licences are reason is an expanding home video market to be allocated, selected on content and more television channels. promises in exchange for lower annual fees Production of domestic films is supported to the government. All commercial licences by a fee on every cinema ticket sold, every will expire in 2008. rental cassette released as well as a manda- Public service radio is operated by Sveriges tory budget allocation from the terrestrial Radio (SR), broadcasting on four national national television companies SVT and TV- FM networks and a number of local and 4. Of the 223 movies which premiered in regional stations, and Utbildningsradion cinemas in 2000, thirty eight were domestic (UR), a designated educational broadcaster, or domestic–foreign co-productions (17 per transmitting on FM-4. The national FM net- cent), 54 per cent were from the United works serve different audiences, FM-1 being States and 23 per cent were from Western the only exclusive news and information Europe. Between 25 per cent and 30 per cent station. FM-4 has the biggest audience of tickets sold are for Swedish films. On share of all radio stations in Sweden, with a average, Swedes go to the cinema twice a mixture of music and regional news and year. information. Youth-oriented FM-3 lost Home video recorders are available to three-quarters of its audience share to pri- 88 per cent of all individuals, DVD players vate stations. Public service radio has a to 16 per cent. The use of video recorders is stable and dominant market share of about divided fairly evenly between recording and 65 per cent. Private stations account for a subsequent replaying of television pro- third of total listening and neighbourhood grammes and pre-recorded cassettes. The stations 2 per cent. number of pre-recorded DVDs sold is Digital radio (DAB) was started in Sweden increasing fast; they outnumber rental in 1995 by SR, but it has failed to grow an DVDs ten to one. Of VHS cassettes released, audience because DAB receivers are too almost half are rented. The US share of VHS expensive. SR invested significant resources content is roughly the same as the origin of to develop digital services, reaching 90 per cinema films, a little more than 50 per cent, cent of the population. A new Finnish- while DVD content is still predominantly speaking DAB service was introduced in US (73 per cent in 2000).

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The average daily use of video is increasing spent on the Net in private homes is declining slowly, mainly due to higher sales of cassettes as people with more ‘ordinary’ needs and and DVDs and more frequent use among the time budgets become users. older generation. Most avid users are still When asked where they find the time for younger teenagers, especially boys. Internet use, Swedes say they do it most often at weekends and in the evenings. The Internet and related Often the Internet and other media are used on-line media simultaneously. Of the media, radio and television seem to yield more time to The Internet has spread quickly to Swedish Internet use than other media, at least in the homes, since a new law in 1997 allowed minds of survey respondents. Asked about employers to lease home computers to their how different communication-related behav- employees on favourable tax terms. In 2002 iours are affected by Internet, the most computers were found in more than 75 per frequent answer found in one study was in cent of all private homes, Internet connection replacing the use of the telephone. in 62 per cent. Using the Net is an established Newspapers have so far not been hurt. regular, and daily, activity among a growing People prefer to read the printed papers. number of Swedes of all ages. Only among News on the Web is a supplement for those those above sixty years of age does the rate fall most interested. Radio on the Internet has to a (still) much lower level. About 90 per cent been predicted a bright future, but so far few of Internet homes use a dial-up service, but listeners spend time on the growing number fast Internet connection is found in a growing of Net-based radio stations. Maybe the num- number of homes via cable television as well ber will increase as uninterrupted, always-on as via dedicated broadband services. Demand broadband connections are more common is high for fast Internet connections, but it is in Swedish homes. Ericsson, the telecom held back by high monthly fees. company, decided in 2001 not to introduce The Internet is an area where established its wireless Internet radio receiver H100 on media companies are competing most visibly the market because of lack of demand. with new players, such as national and inter- national telecom operators and specialized portal operators, national and international companies. Internet users are, however, reluc- POLITICS, POLICY, LAW tant to pay for their use, beyond the connec- AND REGULATION tion. For a few years, advertising revenue seemed to be the solution but it is clear that Media legislation in Sweden builds on a long user fees must be part of the future financing tradition, in which the oldest part stems from of Internet services. Some specialized Web 1766. That year the first law on freedom of services introduced use fees in 2002. The information was introduced. Since then, citi- dominant financial newspaper has made a zens’ right of access to public documents is regular print subscription a requirement for guaranteed. Freedom of expression and free- use of its Web service. The biggest portal in dom of information are embedded in the terms of unique users is Msn.se with a Swedish constitution, which gives a stronger monthly reach of 50 per cent (October 2001). protection than common law. All mass media The biggest Web site, operated by the news- covered by the constitution enjoy privileges paper Aftonbladet, attracted 35 per cent of all such as no censorship (the only exception is surfers in one month. publicly exhibited films, which require clear- Private use of the Internet is dominated by ance by the State Film Board), protection of e-mail, searching for special information, journalists’ sources and the use of a special banking, news and games. There is a great legal procedure in court cases concerning difference in Internet use according to age: freedom of expression. Those affected by games and chat among young people, news media coverage, individuals, authorities and and banking among middle-aged people. E- private companies, on the other hand, dis- mail is important among all. There is a trend cover that it is difficult to obtain redress. among Internet users to use fewer sites and services over time. The Internet is finding its The Press role among other established media and channels for personal communication in the Sweden experienced a sharp decline in pattern of daily activities. The average time newspapers after the Second World War, and

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in the 1970s support measures were intro- the role of public service broadcasting needs duced for weak newspapers facing dominant to be clearly defined. Such a remit is also rivals, in order to protect plurality in the required by EU regulation. press. Direct support for individual news- The present public service charter expires papers is still in place, on very specific con- at the end of 2005. In preparation for the ditions, support which is of declining next one, a parliamentary committee will importance to the press as a whole but is still review the need for and resources for public critical to a number of individual publishers. service beyond 2006. Although there is still A general support for distribution encour- broad political support for the basic ideas of ages local co-operation between competing national public service, it is not universal papers. The Labour government tried for and there are a number of issues that need many years to propose a law against exces- to be determined. For example, the tradi- sive ownership concentration in the press, tional licence fees collected from house- but it failed. The constitution gives the press holds owning a television set might not be a strong protection. viable source of financing if viewers are watching television via other terminals or The electronic media on demand. Another issue is to define the scope of operations (the width of the remit). Only broadcast media, using public air- Sweden joined the European Union in waves, are subject to public policy limita- 1995 and all national laws had to be harmo- tions: a licence is needed in accordance with nized with the European Union body of law. the Broadcasting Act. There are two kinds of Media regulation is now dominated by the licences: the government approves national same agenda as in the European Union as a terrestrial broadcasting (public service radio whole. In certain areas, however, Sweden’s and television and TV-4), while local radio policy for domestic broadcasters still has a (commercial and public access) is licensed by somewhat different character. One example the Swedish Radio and Television Authority is that public service broadcasters do not (RTVV). In exchange for the broadcast carry any advertising at all and all commer- licence, terrestrial broadcasters are subject to cial activities on the Internet are banned control by the RTVV and by the Broadcasting under their current agreement with the Complaints Commission (as far as content government. Domestic terrestrial TV-4 has a regulation is concerned). Satellite broadcast- lower limit on advertising volume (10 per ing as well as cable and other wired services cent) than satellite broadcasters are allowed to the general public require no licence. by the European Union (15 per cent). There are limits on the amount of adverti- sing that can be carried by licensed broad- The Internet-based media casters and how adverts are inserted in the schedules. Public service broadcasting must The political priority in media and communi- not sell advertising but SVT may use sponsor cations of the present government and parlia- money on certain live sports events. All ment is to make Sweden an advanced IT viewers and listeners can submit personal economy. Broadband access to new digital complaints to the Broadcasting Complaints services in every home is clearly an important Commission. The content rules to be fol- goal. Broadband access is making progress at lowed by public broadcasters and TV-4, pri- a moderately low pace, and the government marily regarding news and information, are is accused of not allocating enough public specified in their licence charter with the money to investment in infrastructure and to government. stimulate new services. EU regulation on free Public service broadcasting is a matter of competition between different technologies special political procedure and etiquette. The and operators as well as strict interpretation Swedish parliament and governments in of rules on state support force the Swedish power have, since the mid-1950s, respected government to act cautiously. the integrity and autonomy of programmes As part of the general IT vision, parlia- and editorial practices on public service ment approved building a digital terrestrial channels. Gradually, public broadcasters television (DTT) network, which was have achieved greater freedom of operation opened in April 1999. This has caused con- in many areas, while in other respects more troversy. The political opposition sees no detailed conditions have been introduced. need of it, since satellite and cable already That is a consequence of market competition: offer the whole population more than the

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terrestrial infrastructure does. The economics from the household perspective. Swedish of digital television are not proven, and the television viewers, apart from those already need for state support of DTT was not part of subscribers to analogue pay-television, have the plan. Parliament is expected to review been slow to invest in any form of digital the DTT policy no later than early 2003 and reception, while they have accepted the cost also to decide on a date for switching off of computers and Internet use at home. So analogue transmissions. Policy on digital far, there is little demand for advanced inter- radio, DAB, might be headed for parliamen- activity via television, at least at today’s cost. tary review around the same time. One apparent ‘problem’, of course, with Conversion to digital services, dtt as well both FM and PAL (today’s analogue tech- as DAB, much heralded by EU and member nologies) is that they are good and trusted states alike, seems to be judged differently by the audiences.

STATISTICS

National population 8,900,000 Number of households 4,200,000 Number of households with television 4,000,000 Movie admissions, 2000 17,000,000 Books published Total number of titles, all categories 11,000 of which fiction, children, non-fiction (commercially available non-fiction titles (excluding education), published by members of the Swedish Publishers’ Association) 3,600 (All figures are from MedieSverige 2001/2, Nordicom, 2002, unless otherwise noted)

Print media Circulation of main daily newspapers (Tidningstatistik, March 2002) Aftonbladet (tabloid, national) 411,000 Dagens Nyheter (morning, Stockholm) 368,000 Expressen (tabloid, national) 245,000 Göteborgs-Posten (morning, Göteborg) 258,000 Svenska Dagbladet (morning, Stockholm) 176,000 Sydsvenska Dagbladet (morning, Malmö) 141,000 Dagens Industri (financial, national) 125,000

Broadcast Electronic media (SVT, January 2002) (%) media Main television channels Market penetration Audience share, 2001 Public service SVT-1 and SVT-2 99.8 41.9 National terrestrial TV-4 99.8 27.5 Satellite/cable TV-3 64.0 11.3 Satellite/cable/terrestrial digital Kanal 5 58.0 6.5 Eurosport 52.0 1.6 Audience share of main radio channels (%) Public radio – SR national networks P-1 8 P-2 1

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P-3 11 P-4 45 Public service – SR International P-6 (international) 6 P-7 (Finnish-language, also DAB) 7 All public service radio 65 Source: SVT, January 2002 Private radio networks NRJ 9 RIX FM 9 Mix Megapol 7 Fria Media 6 Local public access (180 transmitters) 2 Percentage of households with: Satellite 22 Cable 46 Pay-television subscriptions (2001) 16 Video-cassette recorder (2001) 79 Satellite receiver (2001) 22 DVD player 12 Source: MMS, Basundersökning (2001: 2)

Electronic Percentage of households with: media Digital television reception (2001) 12 Internet connection (2002) 52 Internet daily use in the home (2002) 32 Mobile phone (2001) 80

Advertising Shares of media advertising revenues (%) spend, 2001 Newspapers 54 Magazines 14.9 Television 23.2 Radio 3.2 Cinema 0.5 Outdoor 4.0 Source: Institutet för Mediestatistik, IRM, 2002.

Ownership Revenue (SEK million) Share of circulation (%) Daily press: Bonnier 10,700 27.3 Schibsted 3,700 14.6 SVT (public) 3,600 41.9* MTG 2,400 8.8 Egmont 1,900 † *Share of television audience. †Not in press publishing.

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REFERENCES Hultén, Olof (1995b) ‘Diversity or conformity? Television programming in competitive situa- tions’, Nordicom Review 1:000–00. Carlsson, Ulla and Harrie, Eva, eds (2001) Media Hultén, Olof and Grondahl, Aulis (2001) Trends 2001 in Denmark, Finland, Iceland, Norway ‘Offentlicher Rundfunk and Internet in den and Sweden. Göteborg: Nordicom. nordischen Ländern’, Media Perspektiven 7: Edin, Anna (1998) ‘The well-organized competi- 358–68. tion: on the development of internal competi- Kleberg, Madeleine (1996) ‘The history of Swedish tion in Swedish television monopoly’, Nordicom television: three stages’ in Ib Bondebjerg and Review 1. Francesco Bono (eds) Television in Scandinavia: Ewertsson, Lena (2001) The Triumph of Technology History, Politics and Aesthetics. Luton: John over Politics: Reconstructing Television Systems – Libbey Media. the Example of Sweden. Linköping: Department Swedish Radio and Television Authority (2001) of Technology and Social Change, University of Developments in the Media Field. Stockholm: Linköping. Swedish Radio and Television Authority. Hultén, Olof (1984) Mass Media and State Support Weibull, Lennart (1994) ‘Sweden’ in Jeremy in Sweden. 2nd edn. Stockholm: Swedish Institute. Mitchell and Jay G. Blumer (eds) Television and Hultén, Olof (1995a) ‘Sweden: broadcasting and the Viewer Interest: Explorations in the Responsive- the social project’ in Marc Raboy (ed.) Public ness of European Broadcasters. Luton: John Broadcasting for the Twenty-first Century. Acamedia Libbey Media. Monograph 17. Luton: University of Luton Press/John Libbey Media.

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22: Switzerland

WERNER A. MEIER

NATIONAL PROFILE Centre, SVP, Liberal Democratic Party, FDP, and Christian Democratic Party, CVP) have Switzerland is a small, landlocked country shared 60–5 per cent of the voters among in the heart of Europe. Neighbours of them, while the left-wing (socialist and Switzerland are Germany, Austria, Liechten- green) parties have got support from 25–30 stein, Italy, and France. Switzerland has a per cent of the voters. strategic location as a crossroads of Europe. Switzerland consists of twenty six cantons In 1291 the three states Uri, Schwyz and or states. Each canton consists of a number of Unterwalden united against the surround- districts. Each district consists of a number of ing aggressors, the Habsburgs from Austria. municipalities. There are 2,929 municipali- In 1648 Switzerland became an indepen- ties. The duties of the municipalities include dent nation and in 1812 the Swiss e.g. local services, electricity, water, fire Federation declared its neutrality. After get- brigade, police, local roads, schools, and taxes. ting its final boundaries in 1848, the Swiss The parliament consists of two houses, Federation changed from a union of states the Ständerat (‘small chamber’) and the to a confederation. Nationalrat (‘large chamber’). Two represen- One key feature of Switzerland is its tatives of each canton, regardless of its size, cultural diversity. There are as many as four form the Ständerat with forty six members. different official languages – German, spoken The Nationalrat has 200 members who by 64 per cent of the population, French come from all cantons in proportion to the (19 per cent), Italian (8 per cent) and size of the population of each canton. The Romansh (less than 1 per cent) – which more Bundesrat (‘federal council’) is the highest or less define four different mentalities. The executive authority and consists of seven remaining 8 per cent consist of other langu- members, elected by the federal assembly. ages, mainly among foreign inhabitants. The president of the Bundesrat, called the The Swiss political system is highly differ- Bundespräsident, changes every year. Each of entiated and therefore especially complex. It the seven Bundesräte heads a department: functions as a direct democracy on three the Department of Transport, Energy and different levels: the confederation, the Communications is responsible for electronic regional provinces (twenty six cantons) and media policies. the local communities. This system is the Switzerland is one of the last remaining result of Switzerland’s socio-cultural and European countries without EU member- socio-political diversity and creates not only ship. However, in May 2000 the Swiss various opportunities for political articula- people accepted the bilateral contracts with tion but also a variety of tensions among the European Union but the currency interest groups on these three levels. remains the Swiss franc. In March 2002 The party scene is exceptionally stable. voters barely accepted a popular initiative For more than fifty years the centre/right- which proposed Switzerland should become wing parties (Democratic Union of the a member of the United Nations.

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STRUCTURE AND OWNERSHIP (particularistic) and centralist forces, ever since the Swiss Broadcasting Corporation The political opinion press developed in the (SBC) was founded in 1931. The fear of nineteenth century. In the struggle between uncontrolled political influence and the the absolutist state and the bourgeoisie the resistance of the more influential publishers daily press contributed a great deal to estab- delayed the introduction of television until lish a modern Swiss federal state. the late 1950s. The SBC did not go on air After an enduring petit bourgeois phase until 1958 with its programmes on a regular eighteen party-oriented dailies with an basis. Radio and television were ‘public admittedly small circulation were founded. service monopolies’ from 1931 to 1983. They did that against the establishment and This proved to be a type of institutionali- with the guarantee of freedom of the press zation which served the interests not only of (Article 45 of the federal constitution of the political system but also of the printed 12 September 1848). press. While advertising has always been for- The Neue Zürcher Zeitung, founded in 1780, bidden on radio and has been permitted on for example, sold only 4,000 copies per day. television in a restricted manner only since After this prime of a liberal and conservative 1964, the revenue of the press was not jeop- political opinion press, the general news- ardized by the electronic media. The institu- papers (General-Anzeiger) appeared. Established tionalization of a public monopoly – by foreigners and mostly neutral or only financed mainly by licence fees – prevented loosely tied to parties, they could position economic competition between the print themselves on the market as profit-making and electronic media and brought about a newspapers (Anzeigeblätter) (examples: Tribune financially healthy private and a viable de Genève, Tribune de Lausanne, Tages-Anzeiger). public system. At the beginning of the twentieth century Pressure from pirate radio stations on the around 120 dailies appeared, most of them one hand, from the bourgeois parties and on a rather local and politically narrow the advertising industry on the other, and the market which gave the particularistic forces general trend towards demonopolized broad- of Switzerland additional weight. casting in Western Europe forced the federal The social changes of the 1960s led to a government in 1982 to issue provisional first wave of concentration, decimating licences to thirty six private local radio sta- primarily the partisan press which operated tions in all parts of Switzerland. Furthermore, in small areas and – on the other hand – acceptance of the constitutional Article 55(b) fostering larger forum newspapers. The in 1984 by the citizens provided the basis for second wave of concentration started in the the Federal Law on Radio and Television mid-1980s and can be seen as a result of a (RTVG), which became effective in 1992. recessive economic situation and extrusive These decisions opened up the broadcasting competition. It was responsible for an system to new private enterprises. A new era improving position of the leading regional began for the Swiss media system as well as papers – a trend that is still continuing: for Swiss media policy. fewer titles from publishing houses with decreasing independence produce an increasing level of circulation. The print media The development of the Swiss broadcast- ing system goes back to 1911, when the first The newspaper press licences for radio reception were issued, and The federal constitution which became effec- to 1921, when the first public radio station tive on 1 January 2000 contains three legal began transmissions. Local corporations in regulations with regard to media. Article 16 the bigger cities ran the first radio stations in stipulates the freedom of opinion and infor- the 1920s. Yet there was increasing demand mation; Article 17 expresses the freedom of for better co-ordination, to secure access the media, and Article 93 regulates radio and rights for social minorities to the common television. Explicitly, Article 16 allows any- good of a scarce radio spectrum and to guar- one to build, express and spread her or his antee sufficient output of non-partisan and own opinion. Article 17 prohibits censorship culturally responsible programmes for all and ensures the entrepreneurial freedom of segments of the population. One of the main the press, radio and television. structural tensions in the Swiss broadcasting Article 93, which regulates radio and tele- system is the struggle between federalist vision, explicitly calls for the protection of

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the printed press. There is, however, no legal The leading publishing house in the obligation on the press to fulfil any public French-speaking region is Groupe Edipresse, service. Newspapers are private enterprises which controls two-thirds of the newspaper and depend on market mechanisms and on circulation with the four large dailies Vingt- the rights of freedom of commerce and quatre heures (88,467), La Tribune de Genève trade. Yet they are expected to be more than (77,420), Le Matin (65,121) and Le Temps just businesses. Swiss media policy thus (53,526). typifies the democratic paradox of auton- The leading daily newspapers in the omy and obligations that characterizes the Italian-speaking part of the country are mass media. The conflicting goals of the Corriere del Ticino (39,567), La Regione Ticino economy, the state apparatus and civil (32,556) and Giornale del Popolo (27,348). society lead to diffuse expectations concern- Advertising provides 60–80 per cent of ing the public and social obligations of subscription newspaper revenue. In the last private enterprises. few years the indirect financing of news- Ownership and financing of the newspaper papers by advertising has grown. Therefore press. In Switzerland all daily newspapers the profitability of newspaper production with a circulation over 100,000 are owned by depends more and more on the viability of multimedia companies. Ringier, the largest the main advertisers and the state of the publishing company, owns the tabloid Blick economy. (309,444) and the tabloid Sunday edition Structure and organization. Variety of Sonntagsblick (336,336), the leading Sunday choice cannot be measured by the number newspaper. The second largest publishing of different titles alone, but rather by the company – on the basis of turnover – is independence of the publishing house as Tamedia, the owner of the leading quality well as by journalistic performance. The newspaper Tages-Anzeiger with a circulation large publishing houses – all of them owned of 250,000 copies. Tamedia publishes also the and controlled by Swiss capital and manage- Sonntags Zeitung, a Sunday paper with a cir- ment – enjoy an increasing share of the culation of 221,100. In addition it has a minor- market. The five most important news- ity share (49 per cent) in the leading papers with a daily circulation over 100,000 newspaper in Berne, the Berner Zeitung are read by almost as many people as the (162,202), owned by the publishing com- 235 smallest newspapers with a circulation pany Espace Media Groupe. Both Ringier and of up to 25,000. More and more small and Tamedia are located in Zurich and are finan- medium-size newspapers have been forced cially controlled by one family each. The out of the market or have been taken over third salient media company is AG für die by large publishing companies. In 1995 the Neue Zürcher Zeitung, which publishes the number of dailies amounted to 102, but the Neue Zürcher Zeitung (170,113) and controls number of fully staffed newspapers fell the St Galler Tagblatt (110,502), Der Bund in from sixty seven to fifty two between 1990 Berne (68,212) and – as 49 per cent minority and 1993 alone and in 2002 only forty shareholder – Neue Luzerner Zeitung fully staffed daily newspapers remained. (133,820). Other important multimedia com- Furthermore, hardly any new dailies are panies with daily newspapers in the German- being launched. After the tabloid Blick was speaking part of Switzerland are BaZ-Gruppe established in 1959, it took more than with the Basler Zeitung (109,095), AZ-Gruppe thirty years for a new daily to appear on the with the Aargauer Zeitung (117,215) and saturated market: the quality paper Le Gasser Media with Südostschweiz (138,993). Nouveau Quotidien, which was relaunched as Since March 2002 there has been a third Le Temps in 2000. Sunday paper, NZZ am Sonntag, on the In conclusion: all common forms of press market. In addition to the Sunday papers, concentration – publisher concentration five weekly newspapers are in fierce compe- (a declining number of publishing houses), tition for readers and advertisers’ money: journalistic concentration (a declining Weltwoche (84,000), which changed its classi- number of fully staffed papers) and concen- cal newspaper format to that of a news tration of circulation can be observed in magazine in May 2002, Cash (68,088), Switzerland. The trend seems to be heading Finanz und Wirtschaft (50,397), towards a two-tier newspaper landscape. HandelsZeitung (35,571) and Wochenzeitung Only a few high circulation papers will serve (15,000), an undogmatic left-wing paper the economic centres and the conurbations; without commercial advertising. meanwhile many small newspapers have to

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fill the gaps, taking advantage of narrow medium: the state, private commercial owners local advertising and readership markets. or even foreign companies. There were also reservations about the ‘seductive’ and The periodical and magazine press ‘desensitizing’ effects of the visual medium Two consumer magazines are on the top of and fears about the loss of Swiss identity the magazine list. K-Tipp (337,486) and Der through mass consumption at the lowest Beobachter (335,226), both fortnightly, common denominator. There was also con- devoted to consumer protection and practical cern about being swamped by foreign pro- advice, etc. In addition there are more consumer- paganda as a result of the anticipated exchange oriented magazines: Saldo (161,277), the of programmes. health magazines Puls-Tipp (139,409) and Because of the supposedly persuasive Gesundheits-Sprechstunde (78,416). effects of television, the Federal Council was Ringier, the market leader of the magazine anxious to bring the new medium under its press, also publishes the weekly magazines own control from the start, as it had done Schweizer Illustrierte (254,657) and L’Illustré with radio. For that reason the national (84,290), as well as Tele (223,739) and Glücks- government’s policy was to introduce tele- post (170,128). Tamedia is the publisher of vision very carefully and sparingly. Its insti- Facts (103,363), the leading news magazine, of tutions were to be set up in the traditions of Schweizer Familie (155,724) and of Annabelle the cultural media of books, newspapers and (100,015), a monthly women’s magazine. radio, and based on the British model (the BBC). The Federal Council therefore decided to set up first of all an experimental opera- Book publishing tion. To this end it awarded a licence to the Switzerland has no homogeneous book Swiss Broadcasting Corporation (SBC or SRG) market, since it consists of three different in February 1952 for a three-year period, independent markets of the corresponding which was later extended to the end of 1957 markets from abroad of the same language. to give enough time for a constitution for Switzerland has 500 publishing houses with radio and television. a total of around 11,000 books getting on In spite of the absence of a constitutional the market yearly. Most of them are small basis the Federal Council awarded the SRG a publishing houses fighting for survival. definitive licence for television, so that on With the exception of Diogenes, none of the 1 January 1958 it could officially go into Swiss publishing houses plays any role operation. Since the SRG intended to meet abroad. The sales of all house reaches almost part of its costs through advertising, the SFr1 billion yearly. About half of the books newspaper publishers offered to make avail- are exported (SFr 225 million) and four out able an annual subsidy of SFr 2 million if the of five books sold in Switzerland come from television institution would in exchange abroad (SFr 650 million), which makes a relinquish the broadcasting of advertise- negative balance of trade. ments. On 1 February 1965 the first com- In 2001 Switzerland could count about mercials flickered across the screen. A 600 bookstores. The biggest one – Orell maximum of twelve minutes per working Füssli in Zurich – has yearly sales of SFr 92 day was permitted for advertising. million. The publishing houses of German Contrary to pessimistic expectations, the books set the prices for the books compul- number of new subscribers grew rapidly, and sory, while books from France and Italy are in 1968, after only ten years of official oper- not bound officially to any prices. ation, the figure of 1 million licence payers Two-thirds of Swiss adults spend time on could be celebrated. The strong growth of reading regularly. On average this amounts the SRG in the 1960s and 1970s demanded to ten to fifteen minutes daily only. various consequential changes in the organizational structure which, however, were often in conflict with federal aspira- The electronic (audio-visual) media tions, and therefore subjected the SRG to almost permanent debate about reform. At Television all events, the SRG had to adapt to increased Development patterns. After World War II the political control, because the federal govern- introduction of television began with a ment was inclined to give more weight in debate on who should operate, be responsi- the future to complaints and involvement. ble for and cover the cost of this expensive The SRG nevertheless came under increasing

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pressure, also, from competition. It was enterprise. It consists of four regional primarily the trend towards the liberaliza- associations, each representing the federal tion of broadcasting in large areas of Europe element of the parent organization. All and the increase in the reception of chan- central and regional councils and commit- nels from abroad thanks to the new trans- tees have the – sometimes difficult – task of mission technology (satellite, cable) which ensuring that the public interest is safeguarded were responsible for this. All the legal and in the programme production process. They illegal moves towards the liberalization of also have to represent the concerns of the the broadcasting sector finally ended in a professionals towards the public. As represen- decision of the Federal Council, via a new tative of civil society, of the public and the regulation, to permit non-cable commercial professional institutions, the audience coun- broadcasting financed through advertising. cils in particular, are constantly occupied Consequently the national government with finding compromises for the different launched the regulation on local experimen- interests of all actors. tal broadcasting (RVO) on 7 June 1982, and The Swiss Broadcasting Corporation holds allocated licences for a five-year experimen- two charters from the Swiss Federal Council: tal period to thirty six – mostly commercial – the SRG SSR charter to produce radio and local radio and seven local television projects. television programming for Switzerland and This produced a transition from a national the SRI charter to produce information pro- monopoly operation to a dual system, gramming for broadcast outside Switzerland. which scarcely tampered with existing struc- The charter defines the statuary framework tures. The situation of public and private of the SBC in greater detail, and lays down broadcasting operating alongside and against the number of radio and television stations each other finally achieved a basis in consti- that the SBC may operate in each language tutional law in 1984. region and a programming mandate, which Structural and organizational patterns. In the SBC must fulfil across all radio and tele- 1992 Switzerland introduced at a legislative vision schedules: level the dual broadcasting system. In prac- tice, however, public broadcast service has never ceased to dominate the electronic media landscape. In March 1999 the public 1 SBC has to promote understanding, broadcast service Schweizerische Radio- und cohesion, and exchange between the Fernsehgesellschaft (SRG) changed its name different parts of the country. to SRG SSR idée Suisse and indicated there- 2 SBC has to consider the non-Swiss with its future effort to be dedicated to the population and to support contact public and to foster as a public institution with Swiss residents abroad. social and cultural integration. 3 SBC has to promote Switzerland’s In 1993, to be well prepared for the international profile and foster increasing national and international com- understanding of its concerns. petition, SRG SSR idée Suisse undertook a 4 SBC has to collaborate with the Swiss further structural reform. Under the motto film industry and to commission ‘From institution to enterprise’, manage- work from the audio-visual sector. ment committees were reduced in size, audi- 5 SBC is not allowed to sell advertising ence representation was reorganized and the air time on radio stations but may divisions were given greater operational flexi- promote its own programmes on bility. As an enterprise SRG SSR idée Suisse SRG SSR’s stations and channels. now moves towards shareholding and forms a business grouping in the sense of a holding company. SRG SSR idée Suisse is still a non- profit-making enterprise, though, and com- The seven operational departments of SRG mercial gains are channelled back into the SSR idée Suisse broadcast eighteen radio sta- public service. tions and seven television channels in SRG SSR idée Suisse is a company under various languages. They do so under the private law and an association of societies terms of the RTVG and the existing licence but not a state institution. Such associations of 18 November 1992. of societies still exist and form now a parent To improve its social cohesion and econo- organization of SRG SSR idée Suisse, serving mic productivity the SRG SSR has formu- as a bridge between civil society and the lated a medium-term business plan for

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operating departments and subsidiaries, stations receive such adjustment payments, which emphasizes its ‘Swissness’, its leading which can form up to a third of their annual position in television, its diversity, its fair incomes. competition and last but not least its credo, Ownership patterns. Also in television that it ‘needs money to make programmes SRG SSR continues to enjoy its preferential and not programmes to make money’. position thanks to its statutorily guaranteed Financing the public service. The financing existence, even though internal competition of the Swiss Broadcasting Corporation comes has greatly increased at the linguistic- from various sources. It is primarily financed regional/national level. The market deregu- through the licence fee and advertising. lation by the Swiss Federal Council together Every household with a radio and/or tele- with its policy on licensing since the mid- vision set is obliged by law to pay licence 1990s sparked off a battle for survival. With fees. In 2001 the SRG SSR received some SFr TV-3 and RTL/Pro 7 entering the market in 1.06 billion through the licence fee (71 per autumn 1999 the competition for scarce cent of its income), while advertising resources has become even tougher and had (television only) and sponsorship (radio and notably implications. Demand in the Swiss television) brought in SFr 332 million television commercial market for new chan- (20 per cent). SFr 100 million or 9 per cent nels was less flexible than the optimistic of its income derives from other sources, business plans presumed. The Swiss ‘pro- such as the sale of programming. The gramme windows’ in RTL/Pro 7 in early Federal Council sets the level of the fee as 2000, the channel Tele 24 as well as TV-3 low as possible and does not index it, not had to withdraw at the end of 2001 owing to least for political reasons. Private households sustained losses which reached around SFr will have a licence fee increase of 4.1 per 100 million all told. cent in February 2003, paying SFr 165 for Besides the SRG SSR channels, some com- radio reception and SFr 275 for television mercial providers still operate on a small reception per year. scale: Teleclub, which has had a licence as a The SRG allocates its funds internally in pay-television channel since 1984 and pro- accordance with a financial equalization vides some 85,000 households in German programme between the different sized lan- Switzerland with films; Star TV for film pro- guage regions. In order that the French- and motion; Swizz as a music channel with spe- Italian-speaking parts of the country can cial emphasis on the Swiss musical scene, produce and receive a similar number of Sat1 Schweiz, a programme and advertising programmes to the dominant German- window from Germany and Presse-TV, a speaking Switzerland, they receive a dispro- Swiss window channel on SF DRS-2, pro- portionate amount of the total financial vided by some leading publishing houses resources. While German Switzerland contri- (Ringier, NZZ group, Basler Media Group). butes some 71 per cent of licence fee Most of the private television providers income, it receives only 45 per cent of avail- operate at local/regional level. The annual able resources. An equitable basic provision budgets come to ¤2–8 million and the daily of programmes for all the linguistic cultures programme output – mainly news maga- could not be achieved without this volun- zines and talk shows – amounts to two tary financial adjustment. hours. Some of the country’s leading media Not only the SRG SSR gets revenues from enterprises have significant shares in indivi- licence fees but also some commercial pro- dual stations. However, it is still uncertain gramme providers. Because of the small size whether there is enough advertising money of the markets the income of the commer- to keep the new stations alive. There are cial operators is modest overall, but there are no Swiss enterprises operating television very wide variables according to the size and channels at an international level. In tele- economic value of their respective trans- vision only the SRG is active as a programme mission areas. For this reason, according to producer for the satellite channels 3-sat, TV- the RTVG article, local and regional operators 5 Europe, TV-5 Canada and RaiSat. The SRG may receive a contribution from the licence acts as a programme supplier for Eurosport, fee (‘fee splitting’) if there are ‘no adequate arte, Euronews and CNN. financing prospects available’ in their area, Programming patterns. Undoubtedly the and in so far as ‘there is a particular public starting point for the development of pro- interest in their programmes’. Currently gramme policies is the charge and mission around two-thirds of all commercial radio of SRG SSR. However, it is confronted with

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some structural handicaps which have to be three in order to better withstand the taken into account: the small, distinctively intense competition. Moreover, the more segmented Swiss market, steeply rising pro- popular programmes like ‘films and tele- gramme production costs in certain areas, vision drama’ and current affairs were mighty competitors from neighbouring extended at the expense of more highbrow countries and lately from emerging local programmes (see the example of SF DRS-1 in television stations, limited financial and cre- the Statistics section). ative resources. Under such – partly new – Foreign media availability and audience circumstances the SRG SSR is developing patterns. Geographically determined factors programme policies which can be described such as poor television reception in many under the headline ‘helvetization, adapta- regions have accelerated the installation of tion, commercialization’: Swiss issues are cable systems since the early 1960s. By 2002 focused, collaboration with major public more than 80 per cent of all households service broadcasters in Europe is reinforced were either equipped with satellite receivers and new technologies will be used, and or linked to a broadband cable network. fourthly the SSR tries to be competitive in Since most of the cable systems are privately the transnational broadcasting markets with owned they show a strong interest in gear- a more mass-audience-oriented programme ing the system to the consumer’s preference schedule. In general, the SRG SSR – accord- with an array of appealing foreign television ing to its latest charter – operates along channels. These cable and satellite house- entrepreneurial lines in order to optimize holds receive around forty television chan- performance and enhance its position in a nels in the German language. The high competitive environment. Success is mea- availability of foreign channels has a dis- sured in terms of audience ratings, market tinct effect on the total viewing time and share and the reputation and viability of its the audience share. programming. In television the competition is primarily The SRG broadcasts three television between the SRG SSR and foreign (private) channels, one each in German (SF DRS), broadcasters. The national broadcaster had French (TSR) and Italian (TSI), as well as reg- to take losses in viewing figures particularly ular contributions in Romansch within the in the 1980s, but from the beginning of the overall programme of SF DRS. Alongside the 1990s has been able to maintain its market main channels a second, complementary share – especially at prime time. channel has been provided since September During prime time from 6.00 p.m. to 1997 in each of the main linguistic regions 11.00 p.m., SF DRS-1 and SF DRS-2 achieved (SF-2/TSR-2/TS-2). These additional theme a market share of 41 per cent in 2001, followed channels, concentrating on sport and films, by RTL, ARD, Pro 7 and ZDF by far. Daily are aimed primarily at a young audience, or television viewing in the German-speaking endeavour to take account of the concerns part of Switzerland, at 139 minutes per day, of minorities. ranks low in national and international In 2001 SRG SSR broadcast for a total of comparisons (all television statistics: Monday 45,308 hours (excluding Textvision, Euro- to Sunday). news, weather maps and advertising): the Acceptance of the public television broad- category of ‘films and television drama’ was casting programmes in the French-speaking in the lead with a 26 per cent share, fol- part of Switzerland is similar. The market lowed by current affairs (19 per cent), infor- share of the public service in prime time mation (15 per cent), sport (13 per cent), amounts to 40 per cent, followed by TF-1 culture and education (10 per cent), with 16 per cent, M-6 with 9 per cent, F-2 8 children’s programmes (9 per cent) and per cent and F-3 with 7 per cent (all French). entertainment (5 per cent). The shares of the Daily viewing time amounts to a total of 164 remaining categories do not exceed 2 per minutes, i.e. twenty five minutes more than cent, i.e. music (2 per cent), religion (0.6 per in the German-speaking part of Switzerland. cent) and theatre (0.2 per cent). In the Italian-speaking part of Switzerland The constant growth in air time and chan- the SRG SSR channels (TSI-1 and TSI-2) have nels has led to a considerable increase in a market share of 40 per cent at prime time, repeats, because of the stringent financial followed by Canale 5 with 14 per cent, Rai 1 situation and owing to specific growth. with 11 per cent, Italia 1 with 7 per cent From 1991 to 2001 the SRG SSR increased and Rai 2 with 6 per cent (all Italian). In both its television services by a factor of southern Switzerland the television set is

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used 169 minutes per adult per day in lifted on 20 March 1945 the Schweizerischer average – five minutes longer even than in Rundspruchdienst, SR (the Government the French-speaking part. Swiss Broadcasting Service) and the ‘Abteilung Presse und Rundfunk, APF (the Army’s Radio Department of Press and Broadcasting) Structural and organizational patterns. The determined the programming of the Swiss official start of Swiss radio was in 1922. In Broadcasting Company, which, thanks to it that year the town of Lausanne gave permis- being a quasi-state institution, could be con- sion for the building of a public transmission trolled far more directly than the press. facility. Even this pioneer station required a After the Second World War the environ- licence from the national government ment of radio was radically changed as (Federal Council), which that same year had the PTT carried out the first experimental created the legal basis, with the coming into television broadcasts in 1947. force of the Federal Act on the Telegraph and Currently the SRG broadcasts three radio Telephone Service (TVG), by which to con- programmes in each of the three main lan- trol the building and maintenance of radio guages of the country and about twelve stations. The rapid introduction of the TVG hours daily on FM in Romansh as well. Each was influenced by the national strike of 1918 of the three respective target channels con- and the brief occupation of radio stations by tains each a ‘majority programme’, a ‘culture workers’ and soldiers’ councils in Germany. programme’ and an ‘accompanying pro- To be able to intervene in similar situations gramme’ for a younger, urban audience. in Switzerland, the national government In 1983–84, in the first phase of commercial gave the sole right in the TVG to the Supreme radio, around thirty licensed radio broad- Telegraph Directorate (later the PTT) to casters went on the air, providing pro- erect and maintain radio installations grammes and services for their relatively (Landessender). small local audiences in all three linguistic Four further radio companies were regions. At the end of the century, around established in Zurich, Geneva, Berne and forty commercial local/regional stations Basle by 1926. They were soon engaged in were in operation. violent controversy over the distribution of Ownership patterns. The strengthening of the licence fee. Thus on 24 February 1931 competition has become an increasingly the Schweizerische Rundspruchgesellschaft centralized matter with the constant (SRG, Swiss Broadcasting Company) was increase in the number of competitors both formed. This development brought little at home and abroad. Unlike television, com- pleasure to the mighty press associations, petition for radio audiences is primarily which nevertheless succeeded in influencing between Swiss operators. The situation the competition conditions of the new regarding the ownership of private stations medium in their favour. The publishers has changed considerably since the start of managed not only to restrict news pro- the dual system. At the beginning most grammes to two broadcasts per day, but also newspaper publishers took a sceptical atti- to ban advertising, which is still the situa- tude towards the development of local tion for SRG Radio today. radio, but they have since participated After a federal start, the Federal Council increasingly in the stations and now control strengthened its influence upon the SRG the majority of them. Thus in German from the middle of the 1930s. Based on the Switzerland the SRG’s market share for its revised licence of 1936 it determined for the radio channels dropped between 1984 and first time the majority on the Central Board 2001 from 72 per cent to 63 per cent, while and took for itself the power to select the the Swiss private radio stations over the central Chairman and the Director General. same period were able to show an increase Centralization gained added impetus from from 18 per cent to 28 per cent. the growing threat on the international In Suisse romande the relationships are scene. From 1938 the Federal Council made somewhat different inasmuch as foreign radio a key instrument of psychological radio stations have been able to maintain national defence and of national cultural their considerable market share and reach. propaganda. At the start of the war the SRG The private stations in Svizzera italiana were was finally released from its licence and able to develop only a little. There they have placed under the control of the government only a 5 per cent market share, while the and the army. Until this regulation was foreign stations have 15 per cent and the

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SRG SSR channels clearly dominate the of SFr 235 million. The market leader – way market with 80 per cent. ahead of others – is Kitag, which owns thirty Programming patterns. Regarding pro- eight screens and generates 2.3 million gramme categories, in 2001 SRG SSR gave 71 admissions, or more than 20 per cent of all per cent of all air time (some 120,000 hours admissions in the German-speaking market, per year) to music, 11 per cent to news and mainly by showing blockbusters from current affairs, 11 per cent to entertainment Hollywood. through the spoken word and almost 6 per The Swiss government subsidizes the cent to culture through the spoken word. national film industry in order to foster a In 2001 the most popular radio channel, certain diversity of supply. In the year 2002 SR DRS-1, broadcasted 60 per cent light the government was ready to spend some music, 15 per cent e-music and 14 per cent SFr 30 million: 48 per cent for the support of current news. Almost 7 per cent goes to production, 13 per cent for the support of culture through the spoken word. the film culture (festivals, etc.), 12 per cent Audience patterns. With the introduction for European collaboration (e.g. Eurimages, of dual broadcasting in Switzerland as in European co-production), 10 per cent for other German-speaking countries, the con- education and further development, 8 per sumption pattern of the Swiss population cent for the promotion of movies at home has gradually changed. The once unchal- and abroad, 5 per cent for film archives and lenged market leader, the SRG, has been 3 per cent for awards. compelled to cede some of its market share to private competition. The Internet and related In 1984, in the first phase of commercial radio in Switzerland, around thirty licensed on-line media radio broadcasters went on the air, provid- Supply patterns. Five years ago, around 10 per ing programmes and services for their rela- cent of Swiss, aged fourteen years and older tively small local audiences in all three had access to and used the Internet at least linguistic regions. At the end of the century once a week. Based on representative Swiss around forty five commercial and some surveys in 2001, 59 per cent of all persons non-commercial stations were in operation. have a personal computer at home and The market share of local radio rose to 35 Internet use increased to 37 per cent of the per cent (German-speaking), 19 per cent population. Still, education and sex seem to (French-speaking) and 11 per cent (Italian- be relevant factors. Only 28 per cent of all speaking). Foreign stations are losing females – in comparison with 48 per cent of ground while the SRG SSR channels are still males – use the Internet on a fairly regularly market leaders. basis. The typical Swiss user of the Internet is well educated, affluent, young and male. Film and video These obvious ‘digital divides’ do not seem In 2001 the Swiss motion picture industry to became smaller but rather larger. produced only fifteen fiction films with Moreover, besides gaps in access, additional theatrical releases. Twenty seven old and gaps in content-related use of the Internet new titles were distributed, in comparison can be observed (see Bonfadelli, 2002). The with 110 American and ninety European greater the educational background a person movies. With 467,000 admissions the share has, the more she or he uses the Internet in of the market was almost 3 per cent, well a quite instrumental way. People with less below the very promising 5 per cent of 2000. education, on the other hand, seem to use Although the market share of Hollywood the Internet almost exclusively for entertain- movies decreased from 76 per cent to 66 per ment purposes. cent, Swiss films were hardly able to benefit from the increased readiness of the public to go to the movies and to watch other than American movies. Beside American (66 per POLITICS, POLICY, LAW cent) and European (30 per cent) movies, AND REGULATION only 4 per cent of production came from continents other than North America or The electronic media Europe. The total admissions of 17.1 million are spread across 334 cinemas with 108,025 Current legislation and regulatory instruments. seats and generated gross box office takings Until 1984 all federal decisions were based

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upon the Federal Act on the Telegraph and commercial providers and tighten up the Telephone Service (TVG) of 1922. Conditioned activities of the SRG SSR. by its defeat in two referendums (1957 and The Federal Council has shown a liberal 1976), it was not until 1984 that the Federal attitude towards licence applicants, it has Council was able to have an article in the also indicated that it no longer sees itself as constitution for radio and television (55b) having responsibility for the financial sur- agreed by the people. This article – which was vival of operators, although the Federal taken into the new federal constitution on Council has declared that it is still willing 1 January 2000 as Article 93 – remains virtu- to subsidize commercial channels so long as ally unchanged and reads as follows: they are ready to make a contribution to the service public. Future trends. Switzerland basically faces 1 Legislation on radio and television the same problems as every other ‘informa- and on other forms of public tion society’ or ‘media society’. The role of telecommunication transmission of public service broadcasting in a digital programmes and information is a media environment continues to elude federal government matter. clarity; its strong mission of integrating state 2 Radio and television should make a and cultural policy is coming into ever contribution to education and greater conflict with the demands of business cultural development, to the free and the practical competitive situation of expression of opinion, and to enter- radio and television. This is why the SRG SSR tainment. They must take the is endeavouring to interpret and translate its country’s particular characteristics legal contract from a more business-based and the needs of the cantons into perspective and tries to ‘reconcile’ the consideration, present events factu- market and its public service mission. ally and reflect the full diversity of Structural disadvantages in the form of views. inadequate market size, dependence on pro- 3 The independence of radio and tele- grammes from abroad, scarcity of resources vision from state influence and their (capital, know-how, creativity, talent, ability, autonomy in creating their pro- etc.) can also produce ‘solutions’, which grammes are guaranteed. do not necessarily need to be a matter of 4 Attention should be paid to the posi- low performance, even though many pro- tion and the responsibilities of other grammes have to be regarded as ‘cheap tele- media, particularly the press. vision’ and as ‘provincial television’. The 5 Complaints may be made to an inde- pragmatic, rather than ideological, mainte- pendent complaints body. nance of a viable public service sector provides society with a diversity of pro- gramming which continues to be appreci- ated by the majority of the population. Limited resources have also led to new Main principles of regulation. The compe- forms of collaboration, which may in the tences for the allocation of licences are also long term prove superior to competition. subject to statutory regulation. The line of Thus Presse TV, produced by the publishers, first competence is with the Federal Council, broadcasts its programmes at the weekends with, since 1992, the administrative support exclusively on the public service channel SF of the Federal Office for Communication DRS-2. (Bakom). This competence allows the The RTVG of 1991 is being revised by the Federal Council a comparatively great Federal Council and the Federal Assembly. amount of flexibility in implementing the However, the amending legislation will not constitutional provisions and radio and tele- come into effect until 2004. The principal vision legislation. The Federal Council and aims of the revised RTVG are to increase the responsible Department for the Environ- the financial viability of commercial ment, Transport, Energy and Communi- providers (deregulation and liberalization) cation (UVEK), currently working on a as well as to strengthen the public service revision of the radio and television law, is providers through regulation or regulated willing to liberalize the procedures for the self-regulation.

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STATISTICS

National population 7,300,000 Number of households 3,067,000 Books published (titles) approx. 11,000

Print media Circulation of leading dailies in German-speaking Switzerland Blick (Zürich) 309,444 Tagesanzeiger (Zürich) 250,000 Neue Zürcher Zeitung (Zürich) 170,113 Berner Zeitung (Berne) 162,202 Südostschweiz (Chur) 138,993 Neue Luzerner Zeitung (Lucerne) 133,820 Aargauer Zeitung (Aarau) 117,215 St. Galler Tagblatt (St Gall) 110,502 Basler Zeitung (Basle) 109,095

Circulation of leading dailies in French-speaking Switzerland Vingt-quatre Heures (Lausanne) 88,467 La Tribune de Genève (Geneva) 77,420 Le Matin (Lausanne) 65,121 Le Temps (Genèva) 53,526

Circulation of leading dailies in Italian-speaking Switzerland Corriere del Ticino (Lugano) 39,567 La Regione Ticino (Bellinzona) 32,556 Giornale del Popolo (Lugano) 27,348 Sunday press Sonntagsblick 336,336 Sonntagszeitung 221,100 NZZ am Sonntag 150,000 Financial and business press Cash 68,088 Finanz und Wirtschaft 50,397 HandelsZeitung 35,571 Weekly press Facts 103,363 Weltwoche 90,000 Wochenzeitung 15,000 General and special interest magazines Schweizer Illustrierte 254,657 L’Illustré 84,290 Tele 223,739 Glückspost 170,128 Schweizer Familie 155,724 Annabelle 100,015 K-Tipp 337,486 Der Beobachter 335,226

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Saldo 161,277 Puls-Tipp 139,409 Gesundheits-Sprechstunde 78,416

Broadcast Television channels media SRG SSR channels: (SF DRS, TSR) and Italian (TSI), (SF2/TSR2/TS/2). Commercial (national) channels: Star TV, Presse-TV, Teleclub, SWlZZ, Sat1 Schweiz, plus around twenty regional television channels. Audience share of television channels, 2001 (%) Market share German-language French-language Italian-language SRG SSR42 40 40 Prime time SF DRS-1 35 TSR-1 32 TSI-1 32 SF DRS-2 6 TSR-2 5 TSI-2 5 All commercial Swiss channels 9 0 1 All foreign channels 50 59 59 Market leaders RTL 7 TF-1 16 Canale 5 14 ARD 6 M6 9 Rai1 11 Pro 7 5 F2 8 Italia 1 7 ZDF 4 F3 7 Rai 2 6 Daily use by person (minutes) 139 164 169

Audience share of radio channels, 2001 (%) Market share German-language French-language Italian-language SRG SSR channels (24 hours) 63 58 80 National commercial stations 28 25 5 Foreign stations 10 17 15

Electronic Internet use, 2001 (% of population) 57 media Source: Wemf.

Advertising Newspapers 53 spend, 2001 Magazines 18 (%) Television 13 Billboards 13 Radio 3

Ownership Turnover Media group (SFr million) Work force PubliGroupe (Lausanne) 2,612 3,674 SRG SSR (Berne) 1,549 5,454 Ringier (Zürich) 1,063 6,079 Tamedia (Zürich) 756 1,982 Edipresse (Lausanne) 715 3,800 NZZ (Zürich) 513 2,078 Basler Medien (Basel) 512 – Publisuisse (Berne) 299 89 Espace Media (Berne) 260 600 AZ Medien (Baden/Aarau) 201 745 Source: Handelszeitung, June 2002.

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REFERENCES der schweizerischen Verhältnisse’, in Hanns Abele, Hermann Fünfgeld and Antonio Riva (eds) Werte und Wert des öffentlich-rechtlichen Bonfadelli, Heinz (2002) ‘Die Medien in der Rundfunks in der digitalen Zukunft. FAR-Tagung Informationsgesellschaft’, in M. Huber et al., 2000. Potsdam: Verlag für Berlin-Brandenburg. Informationsgesellschaft Schweiz. Standortbestim- SRG SSR, ed. (2001) Gesamtstrategie der SRG SSR mung und Perspektiven. Neuchâtel: Bundesamt idée suisse 2001–2006. Berne. für Statistik. SRG SSR, ed. (2002) Geschäftsbericht 2001. Berne. Bundesamt für Kommunikation, Entwurf des neuen Schanne, Michael (2001) Bericht über den Radio- und Fernsehgesetzes, http://www.bakom.ch/ gesellschaftlichen Nutzen der SRG SSR idée suisse. de/aktuell/revision_rtvg/index.html Bern: SRG. Dumermuth, Martin (2001) ‘Medienregulierung und öffentlicher Rundfunk. Unter Berücksichtigung

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JEREMY TUNSTALL

NATIONAL PROFILE 1990, when one of Margaret Thatcher’s last exercises of prime ministerial power (like In the United Kingdom, geography and some medieval monarch) was to award population distribution, as well as language, Rupert Murdoch an effective monopoly of all favour a highly centralized communi- British satellite television. The setting up in cations system. In 2002 the United Kingdom 1955 of ITV as a second television channel had a population of 59 million living in established a pattern of gradualism and 24 million households. By European stan- media policy consensus which lasted for the dards there is a negligible labour force engaged next three decades, until the mid-1980s. in farming. The population is 90 per cent Gradualist policy ensured intervals of a urbanized and concentrated between decade or more between new national tele- London and Manchester. At least 95 per cent vision channels. BBC television began in of the population speak English as a first 1936 and relaunched in 1946; over the next language. Among other first languages are half-century, new conventional television Urdu and Welsh. channels appeared in 1955 (ITV), 1964 The United Kingdom’s increasingly cen- (BBC-2), 1982 (Channel 4) and 1997 tralized system of government changed (Channel 5). direction after 1997, with Scotland (followed This duopolistic, public service, consen- by Wales and Northern Ireland) leading a sual system was slowly, and adroitly, modi- federalizing trend. In media terms, also, fied between 1955 and 1982 to introduce Scotland is the United Kingdom’s most another BBC channel and a second advertising- distinctive region. financed channel. BBC-2, launched in 1964, fitted very neatly into the duopoly and resulted in a roughly 40–10–50 audience split, between BBC-1, BBC-2, and ITV. When Channel 4 was added to this system STRUCTURE AND OWNERSHIP in 1982, considerable ingenuity was required in order to maintain both public Gradualism – slow change, continuous evo- service and financial duopoly. This was lution and policy consensus – characterized achieved, however, by giving Channel 4 a the media until the 1980s. This slow- strong ‘minority’ mission and by sheltering change, gradualist tradition was in sharp its advertising sales under the wing of contrast to what occurred in most other the ITV monopoly of television advertising. West European countries in the same For several years after 1982, Channel 4’s century. audience remained small, enabling ITV’s In media policy Britain was a tortoise. In big advertising revenue to be more than British media history there were very few maintained. key dates or key events. A key date for tele- A central element of the history of media vision was 1955; the launch of a new ITV developments between 1979 and 1990 channel, entirely financed by advertising, cencerns Thatcher media problems and marked the birth of Britain’s BBC and ITV Thatcher–Murdoch solutions. Margaret television duopoly. Another key date was Thatcher won three general elections (1979,

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1983 and 1987) and was in power for nearly and ITV/Channel 4. The policy was against eleven years. Radical policies were, of excessive trade union power and in favour course, pursued across a very broad range; of ‘independent production’ (on the exist- media policy attracted only a small propor- ing Channel 4 model). In particular the tion of the Prime Minister’s policy attention. Broadcasting Act 1990 targeted the ITV During each of her three administrations, channel and its effective monopoly of all when Mrs Thatcher did turn her attention to television advertising. communications and media issues, the But, in addition to this public Conser- experience was often frustrating. Her poli- vative policy, there was the private Thatcher cies took effect only slowly and often pro- policy, which in late 1990 handed a mono- duced outcomes different from those poly of direct satellite broadcasting to intended. Mrs Thatcher (in this field as in Murdoch. This latter occurred in late 1990, others) tended to pursue one official shortly after the official Broadcasting Act Conservative policy line while privately she became law and also just before Margaret was trying to push a more radical policy. In Thatcher was removed as Prime Minister by this field a problem was that many of her the Conservative Party. In the summer of Conservative politicians were torn between 1990 Britain had two rival direct-to-home free-market conservatism and cultural conser- satellite television offerings. One was the vatism; they wanted more competition, but ‘official’ system, BSB, licensed by the official they also wanted to preserve the BBC and regulator and offering expensive program- public service broadcasting. ming with expensive technology. The other The third Thatcher administration (1987–90) was Murdoch’s Sky system, using a saw the publication of a moderately radical Luxembourg-regulated Astra satellite and 1988 Broadcasting White Paper. 1988 also offering cheap programming and cheap saw the launch of a heavily regulated direct technology. Both BSB and Sky were losing satellite broadcasting operation, British money at an alarming rate and by October Satellite Broadcasting (BSB), which moved 1990 their plans to merge were being com- slowly. Consequently in 1989 (after ten pleted. Margaret Thatcher was informed of years of Thatcher as Prime Minister) formal these plans during a visit by Rupert media policy had not greatly altered the Murdoch (29 October 1990). She evidently media scene. did not object, even though the merged However, there had been some radical BSkyB was radically at odds with her current changes, associated in particular with ‘official’ policy of the Broadcasting Act Rupert Murdoch. There was a de facto policy 1990. of allowing exemptions to the normal anti- The old commercial channel of ITV was monopoly provisions in the case of most the main victim of these combined 1990 proposed newspaper take-overs. Margaret public and private Thatcher policies. But Thatcher took further the existing tendency Thatcher’s public and private decisions – not to transform a press anti-monopoly policy only in broadcasting, but also in the press – into a newspaper preservation policy. The combined to alter the entire UK media leading – but not the sole – beneficiary was system. These continued changes were Rupert Murdoch. The most notorious single never articulated in any government docu- case of this occurred in 1981, when ment or Thatcher pronouncement. Murdoch’s British company News Inter- While competition and deregulation were national was allowed to purchase The Times also the official policy for the press, and the Sunday Times from the Thomson Thatcher policies in practice favoured con- company. Margaret Thatcher’s admiration centration. The Murdoch share of UK for Murdoch increased in 1986 when he national newspaper circulation is sometimes moved his two daily and two Sunday exaggerated; if one combines national national papers to a massive new plant at dailies and national Sundays, the Murdoch Wapping in east London. The clash over the share of national newspaper sales per week move to a high-technology plant marked was 24.7 per cent in 1975, 32.0 per cent in the defeat of the previously powerful print- 1985 and 34.5 per cent in 2002. ing unions. But it was the combination of major press In late 1990 the moderately deregulatory and television ownership which was so Broadcasting Act was completing its legis- contrary to British tradition, contrary to lative passage. The main target of this official Thatcher competition rhetoric, and contrary policy was the ‘comfortable duopoly’ of BBC to the Thatcher 1990 Broadcasting Act. As a

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consequence of the 1990 decisions, Murdoch decade earlier which had consumed eight became not only the biggest owner of papers per week. Less than one-third of national newspapers, but the chief owner of national daily sales are subscribed for home the sole direct satellite television platform delivery; many readers are ‘promiscuous’ (as and also the dominant supplier of premium the industry says) and buy different dailies content to cable television across Britain. on different weekdays. The British press supposedly engages in ‘self-regulation’ via the Press Complaints The Print media Commission. The PCC is largely ineffectual, not least because it mainly represents the The newspaper press interests and inclinations of newspaper Between 1975 and 2002 national daily news- editors and owners. Probably most British papers roughly doubled their number of politicians would support strong privacy legis- pages, while sales fell from 14 million to 13 lation. But no incumbent Prime Minister is million. This can be seen as either a near willing to risk the inevitably ferocious press doubling of sales or as a modest decline. The resistance which would result. The weakness main newspaper decline has been in local and frailty of the Press Complaints Commis- dailies. But in 2001 the United Kingdom had sion mirrors (and results from) the strength regional paid-for sales of 42 million copies a and political muscle of the press. week; there was also a 30 million circulation of free local weekly papers; and a 5 million The periodical and magazine press weekly circulation of free daily and Sunday About half the top fifty consumer periodicals papers. are foreign-owned; a full one-third are IPC Market leadership is especially rewarding magazines, now all owned by AOL Time in the newspaper business. The (Murdoch) Warner. German publishers own several Sunday Times, as the market leader in its others. Britain publishes over 5,000 business sector, can charge premium advertising rates and professional magazines but the biggest of per thousand readers. Some single issues of these publishers (and a big on-line publisher), this paper generate more than £3 million of Reed-Elsevier, is half Netherlands-owned. gross revenue and over £1 million in profit. There has been increased polarization between down-market tabloid newspapers Book publishing financed by sales revenue and up-market Britain is a significant book publisher and broadsheet newspapers funded mainly by Pearson is the biggest educational book pub- advertising. It has been the mid-market lisher in the United States. But Britain’s huge newspapers (such as the Daily Express) which annual book output, of over 110,000 new have suffered the biggest sales losses since titles annually, reflects a closely integrated the 1950s. Competitive marketing expendi- US–UK book business, with many titles pub- ture reached new extremes in the early lished simultaneously in both London and 1990s and led to aggressive price cutting New York. The majority of the larger ‘British’ during 1994–5. The price cutting was initi- book publishers are now American-owned. ated by News International’s Sun and The Times (down from £0.45 to £0.20). Selective price cutting has continued and has The electronic (audio-visual) media extended into numerous ‘special offers’ and ‘bulk sales’. Television The national press in the 1990s became As a result mainly of the 1990 decisions, more national, with few full-time staff journa- British television grew steadily more com- lists located outside London. All national petitive through the 1990s. Cable and satel- dailies now use several printing centres. lite channels acquired about another 1.5 per Despite the polarization between more cent of UK television audience each year. In national national and more local local news- seeking to contain the steady competitive papers, the total circulation of paid-for and growth, the conventional channels became free newspapers remained at around 170 more commercial. The two leading channels million copies per week in 1975, 1995 and (ITV and BBC-1) together still had just over 2002. By 2002 each household was consum- half the total audience in 2001 but both had ing about seven newspapers per week, become overwhelmingly commercial and against the (slightly larger) household of a competitive. The second tier of conventional

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channels (BBC-2, Channel 4 and, from the money was paid out to star on-screen 1997, Channel 5) were also much more performers. Differentials between the commercially aggressive than either BBC-2 high-paid and low-paid increased dramati- or Channel 4 had been in the 1980s, and cally. The trade press (Broadcast) began to attracted 24 per cent of viewers. By 2001 a publish an annual ‘Rich List’. Ever larger third tier of cable and satellite channels proportions of programming were produced existed. Each of the seven most successful by small independent companies, which cable and satellite channels (including Sky lacked any professional security; most such One, UK Gold, Sky Sports 1, Carlton companies had little chance of retaining the Network, Nickelodeon, BBC Choice and Sky foreign rights in their own productions. The Premier) averaged about a 1 per cent share story of British digital television is told later of total UK television viewing. A fourth tier in the chapter. of another eleven channels each had at least Regarding local television, the main a 0.3 per cent share of the television market. providers have been the regional ITV com- These included Living, UK Style, Sky Sports 2, panies. Some provide several different half- Sky Moviemax, Disney Channel, Discovery, hour daily news shows in one region. These E4, Granada Plus, S4C Wales, Sky News and local offerings each average some 350 hours the Sci-fiction Channel. There are over 150 per year, with a total of 10,000 local ITV other television channels, each with an audi- hours. The BBC does some 5,000 television ence share of, at most, 0.2 per cent. hours in Scotland, Wales and Northern The entire UK satellite and cable industry is Ireland and in its three English regions. foreign and US-controlled. The principal Meanwhile Channel 4 in Wales transmits shareholder (and the management operator) another 1,650 hours of Welsh-language pro- of BSkyB has been the (Murdoch) News gramming to a core audience of about International company. The two remaining 150,000 Welsh-speaking people, mainly in UK cable companies of the early 2000s were central inland Wales. This annual output of (US-controlled) and NTL (US-man- over 16,000 hours of non-national televi- aged with major French and other foreign sion is seen by audiences most of which investment). Not surprisingly the bulk of all number between 30,000 and 300,000 programming available on satellite and on people; it is an important example of ‘public cable was American movies, American series service’ in British television. and scores of entire American niche channels. ITV and BBC-1 entertainment program- Radio ming in general – especially the early evening In radio a compromise, or division of labour, and now four-days-a-week super-British has been arrived at by which the BBC spe- soap operas – dominated the UK ratings to cializes in national radio and has the cream an even greater degree than had the soaps in of the national FM frequencies. Meanwhile, previous decades. Typically three early although there are three national commer- evening soaps (EastEnders, Coronation Street, cial channels, only one (Classic FM) is on Emmerdale) achieved about twelve of the top FM. The main local radio provision comes fifteen television ratings each week. On from 254 local commercial radio stations. these major channels US imports were Four groups have become dominant in scheduled only at lower audience times. But commercial radio: Capital, GWR, EMAP and BBC-2 and Channels 4 and 5 carried more Scottish Radio. These, along with six other US programming, including currently fash- groups, owned nearly all UK commercial ionable US comedies seen as part of the radio. In audience terms, BBC radio held a channel’s ‘brand image’. Channel 5 (with 6 53 per cent share and commercial radio per cent of the television audience in 45 per cent (see statistics section below). 2001–2) shows hundreds of Hollywood films (both theatrical and television) each year. The lower a channel’s total audience, Film and video the more American programming it carried. Britain has a film industry which concen- British television in the 1990s became trates on two types of output. First more commercial in several other ways. Hollywood makes a few big budget ‘movies’ There were more advertising minutes, more in Britain each year, often based on British commercial sponsorship of programming books (including children’s books) and using and more promotional plugging of the mainly British personnel; secondly there are channel’s offerings. A larger proportion of low-budget British ‘films’, which often

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depend on television finance (Channel 4 business people from non-media fields. Sir and BBC). Overall Britain is a film importer, John Biggam, just appointed as ITC chair- owing not least to BSkyB’s heavy use of man in 1996, told a Broadcast journalist Hollywood product on its movie channels. (6 December 1996) that his television viewing was restricted to news and documentaries: The Internet and related ‘After that I fall asleep’. on-line media Politicians also often have no previous media knowledge or experience before being All of the major newspaper groups and the put in charge of national media policy. Tessa main television channels, especially the BBC, Jowell was appointed Secretary of State for are active competitors in the Internet busi- Culture, Media and Sport in 1999. Her pro- ness. The proportion of UK homes with fessional and political background was in Internet access has increased rapidly, from 29 social work and health; she had had no pre- per cent at the end of 2000 to 45 per cent at vious involvement in culture, the media or the end of 2001. The BBC’s Internet site, sport. Unfortunately this somewhat ama- www.bbc.co.uk, claimed to be ‘Europe’s lead- teurish approach is found also among the ing content site’ (combined with the BBC civil servants and some of the politicians World Service), had 614 million page impres- on the relevant House of Commons select sions in the month of March 2002. committee.

The press POLITICS, POLICY, LAW National newspapers dominate the UK AND REGULATION media policy agenda. Eight separate compa- nies own nationally distributed daily news- Both before and since 1990 the United papers; these newspapers have enormous Kingdom’s media successes have mostly political power and they dominate not only been in sectors where there was little or no the making of (or lack of) newspaper policy government policy involvement. The but also the making of broadcasting policy. United Kingdom was successful in advertis- This is not new. John Reith, who ran the BBC ing, in music (although less so than before during 1922–38, was always acutely anxious 1990) and in news agencies (Reuters). Video about possible newspaper displeasure. games were the main UK video export suc- Newspaper power over media policy has, cess (while the United Kingdom became a however, increased for two very simple big net importer of television program- reasons. Firstly, communications and media ming). The United Kingdom was also a policy has become much more salient since European leader in the introduction of DVD the end of broadcasting and telecommunica- (as it had been with VHS video equipment) tions monopoly. These policy areas are now and the Internet. much more commercially driven, more inter- But in media sectors where government national and more political. Secondly, the policy was active the story was mostly of fail- newspaper press in recent decades has ure. Britain became more dependent on the become less deferential, more aggressive, United States and also achieved little in more tabloid, and more active in pursuing its Europe. The United Kingdom has failed to own political and commercial agendas. generate an adequately professional group of British politicians go in fear of the press for media regulators and policy specialists. In very good reason; when the national press 1982–3, when this writer began to seek out smells political blood, it can and does behave UK media regulators and civil servants, there in a merciless manner. All politicians have was much enthusiasm for, but almost no seen other politicians’ careers destroyed by knowledge of, what the United States did. the newspapers. Incumbent Prime Ministers Senior people in London knew nothing about (especially since the press-assisted political the FCC and had not heard of the MPAA (the demise of Mrs Thatcher in 1990) have been Hollywood exporters) or John Malone especially sensitive to potential press displea- (already the Denver-based King of Cable). sure. Tony Blair from 1997 onwards, for Two decades later, regulator knowledge of US example, allowed anti-Europe newspapers to media policy had improved, but not enough. veto UK membership of the euro currency. The Independent Television Commission Of the eight national daily ownerships, (ITC) was always chaired by educators or Rupert Murdoch was the most salient.

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Murdoch had career-long experience of The electronic media ‘persuading’ anxious politicians. His UK properties included both The Times and The Broadcasting Acts of 1990 and 1996 Sunday Times and the two most Rottweiler have allowed the big to get somewhat tabloids (the daily Sun and Sunday News of bigger. The 1996 Act covered 194 pages, and the World). But three other ownerships were both the 1990 and 1996 Acts included much collectively probably even more politically detail. But both Acts largely ignored the BBC potent than Murdoch. These were the Daily (which is separately covered under a legisla- Mail mid-market group, the Hollinger/Daily tive oddity, a ‘royal charter’). Both Acts also Telegraph group (controlled by Canadian- largely (but not entirely) ignored the born Conrad Black) and the Trinity Mirror Murdoch Sky operations. In 1990 this was group (Daily Mirror and a big slice of non- because the Sky take-over of BSB had not yet national newspapers). (quite) happened. By 1996 BSkyB was sub- Under British conditions, the Prime ject only to super-light regulation from both Minister often intervenes in media policy, Luxembourg and London. Mrs Thatcher’s and much of this intervention takes the legal exemption developed into exemption form of face-to-face meetings between Prime for BSkyB from most regulation. Minister and press owner (meetings to There was some gradual regulatory creep which the Culture and Media Minister is from 1990 until 2002–3. Some of the main often not invited). If all four of the leading 1990 and 1996 Acts’ main provisions were newspaper groups want something, they as follows: will probably get it. All the other leading press groups supported Murdoch in the 1980s, especially in his anti-union struggles. When three of the four groups opposed UK 1 The Independent Television Commis- euro entry in the 1990s, they also prevailed. sion in 1991 took over regulation of The four lesser newspaper groups are also television (from the IBA) and also the not insignificant makers of media policy, regulation of cable and satellite. Radio and all by 2002 had their own wider media went to a separate Radio Authority. properties. The Daily Express ownership, 2 Previous to 1990 the single ITV in addition to owning the tabloid Daily channel was operated in fourteen Star, was financially dependent on a large areas by seventeen separate compa- collection of pornographic magazines. The nies. This fragmented structure was Independent was part of a much bigger media allowed to merge into three main group, controlled by the Dublin-based Tony companies and then into just two O’Reilly (a former CEO of the Heinz food (Granada and Carlton). company). The Financial Times was part of 3 Newspaper groups with less than 20 the Pearson media company. Even The per cent of national daily sales (and Guardian had substantial other print and thus not News International or commercial radio properties. Because news- Trinity Mirror) could now own televi- paper editors now behave in a more entre- sion companies. preneurial manner, they oversee and 4 Provincial newspaper groups were influence the news reporting of ‘our media encouraged to merge, which eventu- correspondent’. Consequently no national ally led to three main combines: daily can convincingly claim neutrality or Trinity-Mirror, Northcliffe/Daily Mail objectivity in its reporting of media business and Newsquest (later Gannett). Local and policy issues. newspapers were also encouraged to The Internet has further increased news- buy into local radio and television. paper involvement (and hence bias) in 5 Each commercial radio group was in media business policy. As noted above, all 1996 allowed to control up to 15 per the major newspaper groups and the main cent of all radio advertising. As noted television channels (and especially the BBC) above, this allowed four groups to are active competitors in the Internet busi- become dominant. These four plus ness. This media business involvement and another six groups owned nearly all commercial interest combine unhappily of UK commercial radio. with the continuing inexperience and weak- 6 Channel 4 was, in 1990, relieved of its ness of media regulators and government requirement to share advertising profits policy making.

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Companies controlled by Rupert Murdoch with ITV. Channel 4 subsequently and (Canadian-born) Conrad Black had over increased its share of television 60 per cent of UK up-market daily news- advertising. paper sales (The Times and Daily Telegraph), 7 Channel 5 was eventually launched which they used ruthlessly to support their in 1997. When Pearson later with- Anglo-American interests and to oppose drew from the consortium, Channel 5 British involvement in Europe. The US- was majority-controlled by the based Gannett newspaper giant also entered German Bertelsmann and its associ- the UK market in 1999 and became the ate companies. second largest owner of British regional newspapers, with some 14 per cent of non- national newspaper circulation. Recent governments have continued to pro- The BBC remains Britain’s only real media claim the need to maintain ‘Britain as a world leader – and this leadership is in the world media power’; but these same govern- diminished field of ‘public service broadcast- ments have also continued to exhibit a weak ing’. In the late 1990s and early 2000s the grasp of new technologies and commercial BBC did well, because its licence fee income realities in general, and of the media in the was assured and inflation-proofed (until United States in particular. The question to 2006). The BBC (unlike ITV) seemed quite be asked is, is Britain a world media power or well suited to the multi-channel era. The a US media dependency? BBC in 2001–2 had two conventional tele- British media companies own few media vision networks, four new niche BBC networks properties in continental Europe, although (such as BBC Choice and BBC News 24) and the magazine publisher EMAP is strong in six ‘UK’ networks (such as UK Gold and UK France. There is more French and German Horizon) jointly owned with Flextech. The ownership in Britain than the other way BBC had yet other partnerships (especially around. French investors have been signifi- with Discovery); and BBC On-line also was cant both in British cable and in BSkyB. The vigorously developed. Including its five German Bertelsmann-CLT-UFA has a con- national radio networks, the BBC had some trolling interest in the UK’s Channel 5. twenty separate television, on-line and radio Most UK international media activity, national services; multiple cross-promotion however, involves the United States. between these twenty services could be Britain’s main world media presence is in aggressively pursued, not least because BBC news (Reuters, Financial Times, The Econo- output was not already cluttered up with mist and the BBC). The WPP advertising commercial advertising. group owns three of the largest US agencies Digital television attracted the usual (J. Walter Thompson, Ogilvy & Mather, British vague, warm feelings about exciting Young & Rubicam). Vodafone also claims to new technologies. Since BSkyB and cable be (with partners) the world’s largest mobile were both heading for digital, the Labour phone operator. But all these activities (big government was attracted by the third in the world and big inside the United option of DTT – digital terrestrial television. States) could come under US ownership in For a relatively modest extra household the future. expenditure, DTT made possible reception As noted above, in three media areas – of about thirty basic and premium television film, periodicals and books – the British channels with a regular television set (and industry follows an almost Canadian pattern without a dish antenna). This might appeal of being significantly incorporated into the to consumers as a slightly cheaper way of US industry. Furthermore, the UK satellite getting twenty-plus (but not 100-plus) extra and cable industry is foreign and US- channels. It appealed to the government as controlled, and their programming is domi- a ‘platform’ which could deliver the BBC’s nated by American movies and series. In traditional channels and thus eventually commercial radio, by 2002 Clear Channel, free up the analogue spectrum for other uses the largest owner of American radio (and government income). stations, was already a significant force in But digital terrestrial television, launched outdoor advertising and in the music busi- in late 1998, lurched into financial disaster ness in Britain. in 2001–2. DTT failed to navigate around the In the printed press North American classic television start-up problems of unreli- influences were also extremely strong. able new technology, costly programming,

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few customers and little revenue. By early 2002 the DTT offering (originally ON-Digital, 3 BSkyB’s digital satellite service was later ITV Digital) was running third in a now in nearly 6 million homes. It three-horse race. As so often with UK govern- offered some 150 television channels ment media initiatives, responsibility and (including fifteen movie channels, policy planning were hopelessly split, frag- five sports, nine children’s). Sky mented and lacking in commercial and offered ‘interactive’ alternatives (for technological realism. example, within major sports tourna- The Independent Television Commission ments) and choices of start times. (ITC) once again made a disastrous key deci- Sky’s service offered much of the sion and demonstrated its traditional lack of same range as contemporary US high- commercial, technological and American capacity systems, offering seven insight. In the late 1990s it was the ITC Discovery channels and seven sepa- which meekly accepted Brussels advice that rate MTV and VH1 Viacom channels. BSkyB should withdraw from its early (one- Compared with both cable and DTT, third) involvement in the digital terrestrial Sky offered more choices, better relia- enterprise. This insistence was self-defeating, bility and more efficient home service because a digital terrestrial offering solely visits. Consequently it had a remark- from ITV had no answer to a probable ably low ‘churn’ rate. Murdoch all-out BSkyB Blitzkrieg attack. In seeking to persuade their existing satellite analogue customers to switch to digital, After the collapse of ITV Digital in April BSkyB (after some hesitation) made a big 2002, the responsibility for relaunching a investment in an offer – a free set-top box – digital terrestrial service was awarded to a which customers could scarcely refuse. BBC-led consortium. Fifteen months after the digital terrestrial A new Communications Bill was brought launch, ITV Digital (as it became) in January forward in 2002. The main provision of this 2000 had 550,000 subscribers, whereas Communications Act was to merge the ITC BSkyB had 2 million digital satellite house- commercial television (and cable/satellite) holds. ITV Digital did struggle on for regulator with the telecommunications another two years, before collapsing into regulator (OFTEL); the new grand regulator, bankruptcy in April 2002; at this point of OFCOM (Office of Communications) was collapse, the three services were as follows: also to swallow three other regulators – the Broadcasting Standards Commission, the Radio Authority and the Radio Communi- 1 The terrestrial service, ITV Digital, was cations Agency (the spectrum allocator). in about 1 million homes with a basic The broad thrust of the 2002–3 policy was tier of twelve channels and a total of to take further the regulatory loosening of thirty two channels, including pre- 1990 and 1996. The political thrust of the mium film and sports channels. Both Blair government was both to protect the the transmitter system and the set-top BBC (to satisfy Labour Party and educated boxes were inadequate; television elite fears) and also to calm Murdoch/News pictures were unreliable and the ‘churn’ International/BSkyB anxieties. Cross-media rate (de-subscribing) was high. ownership rules would be relaxed suffi- 2 Digital cable was available from ciently to allow Murdoch/News International Telewest and NTL and was in 2 million to (perhaps) buy Channel 5, but not suffi- homes. Telewest offered a basic tier of ciently to buy ITV. Commercial television nineteen channels and a total (includ- and radio could now be owned by US or any ing pay-per-view) of ninety five chan- other foreign companies. ‘Spectrum trading’ nels; this included much of Sky’s sport would also be allowed. and film offerings. Both Telewest and The 2002 Bill outlined a complex structure NTL were thus beholden to Sky; both for OFCOM’s ‘lighter’ regulatory regime. also obtained more revenue from their There would still be quite different levels of telephone, than from their cable tele- regulation. The conventional commercial vision, services. Both developed a television channels (ITV, Channel 4, ‘triple play’ of television, telephone, Channel 5) would be the most severely held and Internet/e-mail. to their remaining public service elements. The BBC would be left mainly to its traditional

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BBC Governors’ regime, with some OFCOM expenditure. These three will be fierce oversight. Satellite and cable would con- competitors both against each other and tinue to be largely unregulated. Newspapers against the subscription and licence-financed would continue to be almost completely players. Their increased competitive drive unregulated. for advertising revenue will be a major con- Although the draft Communications Bill tribution to an overall more commercially (and accompanying papers) ran to 500 competitive system. pages, much of this focused on telecommu- The BBC’s audience share by 2008 could nications regulation issues. On the bigger, be between 30 per cent and 35 per cent. The and longer-term, media issues the three BBC also will fight fiercely, although the familiar weaknesses were still present: naive conventional BBC-1 and BBC-2 will proba- technological assumptions (such as ana- bly continue to account for nine-tenths of logue switch-off by 2006–10); lack of under- the BBC’s television audience share. standing of, or interest in, the future Effectively the 2002–3 decisions con- strategies of major US media players; lack of firmed new definitions of ‘public service’ interest in major commercial trends and and of the hierarchical ‘brow levels’ of revenue sources. British broadcasting. The new definition is The various media policy decisions of as follows: 2002 were widely seen as further assisting recent success at the BBC and BSkyB while further penalizing conventional advertising- funded television – ITV and Channels 4 and 1 Lowbrow/mass audience: BBC-1, ITV, 5. The loose alliance between the BBC and Channel 5, Sky One and most of BSkyB became especially noticeable in the the scores of themed satellite/cable reallocation of the digital terrestrial plat- offerings. form; DTT was to be BBC-led with the BBC 2 Middlebrow/youth audience: BBC-2, providing the biggest batch of channels Channel 4 and a few basic (and pay) (nine out of twenty four). BSkyB was also a satellite/cable themed channels. winner here, because it was in partnership 3 Surviving public service: digital terres- with the BBC but was not contributing any trial in general and the BBC (and of its (Sky’s) more popular channels. The ‘UK’) digital channels in particular. conventional commercial channels were the losers (their main DTT presence consisting merely of their main conventional chan- nels). Clearly the digital terrestrial platform Some other surviving public service ele- was not going to have much of an impact on ments will be found (such as the main future overall competition. evening news) on BBC-1. But a public/ Regarding the future, it might be reason- educational/serious factual service will ably argued that, towards 2008–10, the tele- mainly be found on the BBC digital channels vision audience will be split into three and on a very few highbrow pay channels. roughly equal segments. Probably each of This will loosely parallel the US pattern of the three (BBC, satellite and cable, and PBS and a few up-market commercial cable ITV/Channel 4/Channel 5) will have an channels. audience share of about 30–5 per cent. The new (and supposedly more commer- Satellite and cable had such a rapid growth cially minded) BBC is in fact highly risk- in audience share before and after the year averse and will remain so. The BBC’s idea of 2000 that their combined share by 2008 a big risk is a new digital channel costing is unlikely to be below 30 per cent. Both £50 million; the BBC cannot behave like cable and BSkyB will grow substantially, BSkyB, which invested some £2 billion in although both will focus on improving switching to digital and giving away set-top revenue and not just boosting subscriber boxes. BBC television will focus on main- numbers. taining the early 2000s pattern, by which While ITV and Channels 4 and 5 were the British programming dominated the clear losers in the early 2000s, this does not evening peak hours on BBC-1 and BBC-2. mean that they will shrivel away. On the ITV, Channel 4 and Channel 5 will do the contrary, they will certainly ‘fight back’ very same. But this British peak-time program- aggressively indeed and they will continue to ming will become more expensive to pro- be funded by large (and growing) advertising duce as increased competition drives up the

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price of popular talent. (The BBC will, of to add more than 1 per cent on 2 per cent to course, endlessly repeat its more expensive the BBC’s total television audience share. programming on its small digital channels). Nearly all the BBC’s total audience share will In late 2002 the BBC was awarded (by the still be achieved by BBC-1 and BBC-2, which dying ITC) the lead role in a relaunched will still be accused of ‘commercialism’ digital terrestrial television service, now funded by the licence fee. renamed Freeview; it’s ‘free’ when you buy a The BBC will certainly survive beyond the cheap (£100) new set-top box. Freeview’s year 2010. But both the BBC and British tele- thirty channels avoid entertainment, fiction vision will have absorbed additional doses of and sport, but instead focus on twenty four- American material and influences. With so hour news channels, culture and history, much cash going into peak-time British pro- new BBC children’s channels and several of gramming, there will be an irresistible urge to Sky’s less popular offerings (BSkyB and put yet more cheap US material into ‘fringe’ Crown Castle are partners with the BBC). time (early evening and late night) and into Freeview’s lead offering is some ten BBC and daytime. Also by 2009–10 the BBC will be ask- ‘UK’ channels; this helps to solve the BBC’s ing, yet again, whether it can survive solely problem of making its new digital channels on a licence fee which represents a still dwin- more widely available. People who want dling share of total broadcast expenditure. more news and factual channels will accept It is also highly probable that American this cheap and non-commercial offer, but ownership will have spread from satellite the national reach is less than 100 per cent and cable into one or more of ITV and of the United Kingdom. Freeview is unlikely Channels 4 and 5.

STATISTICS

National population, 2002 59,000,000 Number of households 24,000,000 Overall movie admissions 1999 139,000,000 2001 156,000,000 Books published, 2000 (new titles) 116,415

Print media Sales of national daily newspapers, February 1997 2002 Sun 3,929,000 3,440,000 Mirror/Record 3,097,000 2,714,000 Daily Star 755,000 744,000 Total down-market 7,781,000 6,898,000 Daily Mail 2,156,000 2,403,000 Daily Express 1,234,000 924,000 Total mid-market 3,390,000 3,327,000 Times 768,000 714,000 Daily Telegraph 1,120,000 1,001,000 Guardian 400,000 400,000 Independent 258,000 225,000 Financial Times 306,000 488,000 Total up-market 2,852,000 2,828,000 Overall total 14,204,000 13,053,000

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Circulation of larger regional daily newspapers, July–December 2001 (daily sale) London Evening Standard (p.m.) 402,223 West Midlands Express and Star (p.m.) 172,476 Manchester Evening News (p.m.) 164,237 Liverpool Echo (p.m.) 146,656 Birmingham Evening Mail (p.m.) 121,159

Broadcast Audience share of television channels (%) media 2001 2002 (first half) BBC-1 26.9 26.2 BBC-2 11.1 11.2 ITV 26.8 24.6 Channel 4 10.0 9.8 Channel 5 5.7 6.4 Other (Cable, Satellite, RTE) 19.7 21.7 Audience share of main radio channels, January–March 2002 (%) BBC Radio 1 8.4 BBC Radio 2 15.7 BBC Radio 3 1.2 BBC Radio 4 11.4 BBC Radio 5 4.5 BBC Local/regional 11.4 Total BBC 52.6 National commercial (three) 7.7 Local commercial (254) 37.7 Total commercial 45.4 Other listening 1.9 Overall total 100 Source: Rajar. Percentage of households (April 2002) with: Satellite television (BSkyB) 25 Terrestrial digital television 4.2 Cable television 15.4 Digital television by any means 37 Percentage of households with: 2000 (late) 2001 video-cassette recorder 87 82 DVD player 17 Satellite receiver 17 24

Electronic Percentage of homes with: media Internet access November 2000 29 November 2001 45 Mobile telephones By May 2001 70% of homes had at least one mobile telephone.

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Advertising National newspapers 12.5 spend, 2001 Regional newspapers 17.1 Consumer magazines 4.7 Business and professional magazines 7.3 Directories 5.8 Press production costs 4.0 Total press 51.5 Television 25.1 Direct mail 13.5 Outdoor and transport 4.8 Radio 3.3 Cinema 1.0 Internet 1.0 Total 100.0

Total expenditure at current prices £16.55 billion At constant (1995 = 100) prices 129.2 Source: Advertising Association.

Ownership Largest media companies, 2001–2 (%) Share of national Share of total daily press Share of regional television audience circulation press circulation time

News International and BSkyB (Murdoch) 34.5 — 6.1a Trinity Mirror 19.0 25 — Daily Mail 19.0 21 — BBC — — 39 aArguably this figure is too high because News Corp owned only 36.3% of BSkyB.

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