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Bertelsmann SE & Co. KGaA Carl-Bertelsmann-Strasse 270 International D-33311 Gütersloh www.bertelsmann.de

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Television Shows Books International Magazines Digital Radio & Music Services

Good news, bad news. And Exciting shows, popular docu- From draft manuscript to Opening up growth markets: China, Spain, India, France: Success with new media: Clicking into the future: How a Tailor-made solutions the hard work that goes into mentaries and happy winners bestseller: The long road to Corporate Centers in China, G + J magazines also have a The young qeep team French radio station wins new for services and customers presenting it reputably and in over 20 countries  producing a successful book  Brazil and India  strong international presence  develops fresh ideas for listeners daily  worldwide  successfully  Without American Idol pop star Kelly Random House is the world’s biggest On the fringes of Bertelsmann’s global It’s common knowledge that, with titles mobile phones  Few media face such great challenges More than 63,000 employees in Every evening Peter Kloeppel, Ulrike Clarkson would probably still be the trade book publisher, based in New York. management meeting we interviewed like stern, Geo and Brigitte, Gruner+Jahr When Bertelsmann invests several as radio at this point. The days of long 40 countries are hard at work serving von der Groeben and their colleagues girl next door from Texas. And without The books of many international best- Annabelle Yu Long, Thomas Macken- is the home of fascinating magazines in millions of euros in a Cologne start-up, radio programs are gone, as are those business customers in many different face the cameras. Whether for political L‘amour est dans le pré many a French selling authors and Nobel Prize winners brock and Pankaj Makkar – the heads Germany. But what does the publishing it has good reasons for doing so. The of endlessly repeating loops of hits. But industries. But what goes into producing headlines, business updates, or the farmer would still be going to bed alone are published here – including The of the Corporate Centers in China, Brazil company have on the market in other young team of founders has made the what needs to be done differently today? a product and then shipping it to over latest sports scores, RTL Aktuell is the after mucking out the stables. This Power of Habit by Charles Duhigg. We and India – to discuss their interna- countries? We spoke to readers world- right move at the right time with the What opportunities does Web 2.0 offer? 180 countries? Who is involved in the channel’s foremost news show. We applies beyond France and America too, follow him and his editor on a book’s tional careers, their multifaceted roles wide about their favorite magazines idea of transferring gaming and friend The team of the French radio station Fun many different services behind this accompany the team and show how of course, as the most successful shows path from initial idea to market launch. and recognizing and tapping into the and discovered a surprising diversity of networks from the Internet to cell Radio knows what ideas will make them process? And how is it possible to coor- much hard work goes into creating a are one thing above all: worldwide audi- opportunity of growth markets, espe- titles – from an art magazine in India to phones. fit for the future – and are gaining new dinate such a huge logistics network? few minutes of TV news. ence favorites! cially in this age of new media. China’s most popular fashion title. listeners in the process. We also take A behind-the-scenes look at a company a look at BMG’s music rights manage- that tends to stay in the background ment business – a response to the rapid as a service provider. 22 changes in the music industry. 06 14 30 36 46 52 60

Thomas Rabe: ‘An interplay of continuity and change’  The CEO of Bertelsmann talks about new strategies, internationality and growth. 68

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To the point – RTL Aktuell The news with Peter Kloeppel and Ulrike von der Groeben: relevant and close to the people, expert and easily understood. 20 minutes that involve many hours of work for correspon- dents around the world and an editorial team of 15 in Cologne Text: Steffi Kammerer. Photos: Arne Weychardt

t’s 5:53 p.m. Editorial Director Gerhard Kohlenbach broods over the schedule, tallying up the seconds. A young colleague hands him a report: A model has died following a beauty treatment. He glances at it, shakes his head, then he asks those around him: “Should we say, ‘Merkel stays’ or ‘Merkel stayed’? ‘Stays.’” IAn ordinary yet exciting news day in the RTL Aktuell news- room in Cologne, with a little over 45 minutes to go before the show goes on air. The German Chancellor is visiting Athens today, awaited by protesters bearing Molotov cocktails. And in Roswell, New Mexico, the Austrian Felix Baumgartner is poised to break the sound barrier in a free-fall jump from an altitude of 39 km. For hours, it has been unclear whether he can make the attempt as the wind is unfavorable. For the program, this means a potential hole of about two minutes. An alternative to the live report is prepared – a visit to Barack Obama’s grandmother in Kenya. A

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on the left the incoming reports, in the middle anymore. At that point there has to be one per- his schedule, or running order. He quietly reads son in charge who says that a piece needs to be out the scripts to himself again and again. Every ten seconds longer or shorter. The next morning sentence has to sound good: “It’s a nerve-wrack- we can talk about everything – including wheth- News & Magazines  ing day today in Roswell, New Mexico.” He edits: er I made a mistake.” He has been Managing RTL Aktuell, RTL Punkt 12, RTL “It is a truly nerve-wracking day.” Editor since 2002 and also Editorial Director for Nachtjournal, VOX Nachrich- Peter Kloeppel arrives and calls out: “Es- five years, running a 15-strong editorial team. ten, news on n-tv. RTL Group’s ther’s on the Web.” He has posted the news of a They are all on an informal first-name basis. German television channels of- fer a variety of news programs, colleague’s early retirement on Facebook. One Some of them have worked together for many plus tabloid-style magazine has to take the time to give people their due. As years. Kohlenbach has been with RTL Televi- programs like Exklusiv, Explosiv always, he was in make-up by 5:40 p.m. A quick sion since 1994. When Peter Kloeppel’s 20th and Prominent! The broadcast center in the Deutz district of four minutes is all it takes to prepare his face for anniversary as anchorman of RTL Aktuell was Cologne is a state-of-the-art television. celebrated in spring 2012 there were not only building with high-tech digital Kohlenbach is also focused, but calm. “We official speeches, but also a very private party studios mounted on springs to never really start the show without still being where the editorial team treated their Chief Edi- protect them from vibrations. The building is equipped with short of reports,” he says. “6:30 to 6:45 p.m. tor to a rousing rendition of songs with rewritten emergency generators. is the most stressful time for me. Before that lyrics, accompanied by weatherman Christian nothing’s really in yet. Then everything starts Häckl on the piano. When Kloeppel went down happening at once. Half of the reports still need on bended knee in thanks and started a Mexican 2:00 p.m. some changes.” Even during the show, some- wave, many a tear was shed, says sports present- What are the latest news develop- thing changes a little virtually every time, he er Ulrike von der Groeben who has co-hosted ments? What’s happening in the says, but that is routine. “Of the team that are thousands of programs with him. world? And what are the results of the editorial team’s research there today, 80 percent were here during our When she is out and about in Cologne, people in the newsroom? Topics that will coverage of the Iraq war and 9/11. This puts often ask her to “Say hello to Mr. Kloeppel for be discussed at the conference at me at ease, too – everyone here knows what’s me,” or ask “Is he really as nice in real life?” 2:00 p.m. important and what needs to be done.” “Yes, he is,” she tells them. “He’s very well Kohlenbach is responsible for the balance of brought-up. And despite all his success he’s the program. “We usually manage it by consen- someone who’s not above saying thank you.” sus, but in the end I have to make the decisions. She has been married to her husband only a 10:30 a.m. “The show has From 5:30 p.m., we don’t discuss things much year longer than she has been sitting next to A The morning starts with research online and in numerous print media. The morning conference starts after this at 10:30. All the external edito- grown up. In some rial staff participate remotely ways it has become more political and As always, the editorial staff began plan- ning the news during the 10:30 a.m. conference call. Colleagues at the studios from Munich relevant” to Hamburg had proposed various items, and Peter Kloeppel, Chief Editor of RTL Television and the foreign desk offered reports on Syria and RTL Aktuell anchorman Pakistan. As every morning, Kohlenbach had Mediengruppe RTL already read six daily newspapers, ten online Deutschland news sites, and reviewed the headlines sent out Facts and Figures  by the newswires since midnight: “Otherwise I personal interests overlap in that regard.” Mediengruppe RTL Deutschland don’t feel I’m up to speed for the day.” The next conference is at 2:00 p.m., and includes the free-to-air TV channels RTL Television, VOX, His two chief editors arrive equally well pre- at this one the team more clearly defines the n-tv and RTL Nitro, holdings in pared: Peter Kloeppel, who also anchors “RTL program’s look, the length of the items, and RTL II, Super RTL and the three Aktuell,” reads the news online from 7:00 a.m.; the overall structure. Kohlenbach takes his cue digital channels RTL Crime, Michael Wulf, Managing Director of infoNet- partly from how long his colleagues talk about a Passion and RTL Living. work and Managing Chief Editor of RTL Aktuell, given item. Everyone is talking about Baumgart- has even installed a TV in his bathroom at home ner’s jump through the sound barrier, so he gets 2:45 p.m. so he doesn’t miss anything while shaving. 2 minutes 10 seconds. Rising electricity prices Information everywhere: in the “News is my hobby,” says Wulf, adding he can’t are given 1 minute 30 seconds. newsroom, news channels are imagine going a day without. “There’s no other The Editorial Director’s desk is next to the running on countless screens as presenters and editors meet way if you want to stay in the loop. Besides, I conference table in the open-plan office. He sits again to decide the main topics wouldn’t want it any other way; my work and facing three screens: on the right a live ticker, of the show

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Who’s who on the RTL Aktuell editorial team?  As chief editors, Peter Kloeppel and Michael Wulf (above, also Managing Director infoNetwork) are responsible for the content of RTL Aktuell and take the most important decisions. Kloeppel also anchors the eve- ning show alongside Ulrike von der Groeben. The editorial team in the newsroom researches the news content. Their immedi- ate boss is Editorial Director Gerhard Kohlenbach. Reporters and camera crews go out on In the newsroom, the first reports are A camera crew RTL Aktuell’s Anchorman Peter Kloeppel only needs location together. Foreign cor- 4:00 p.m. edited and audio is added 5:15 p.m. in Bonn quickly 6:25 p.m. about four minutes in makeup before going on air respondents report from around procures original the world. And the connect- sound bites for ing link between the editorial a report team and the technicians is the Managing Editor, who is responsible for the coordination of all processes. “News is my hobby. Kloeppel won the Adolf Grimme Award for Of course, the show has also evolved over the his coverage of September 11th, 2001. In 2007 past 20 years, says Kloeppel, “It has grown up. RTL Aktuell won the German Television Award In some ways more political, but definitely more My work and interests overlap” for best news program. For several years, the relevant, because we ask ourselves with each Michael Wulf, Managing Director of infoNetwork program has outperformed heute (ZDF) in the topic: Is this just an isolated incident or is it an total audience ratings, and they’ve always been issue that affects a lot of people?” The staff are the most-watched news show among younger also more experienced, he says; their journalis- audiences. With a total of nearly four million tic expertise has grown. viewers, RTL Aktuell is Germany’s second 6:04 p.m. Another 41 minutes before the pro- Kloeppel in the studio. Both are rarely ever sick, starts of major lawsuits are entered in the calen- most popular news program, even overtaking gram goes on air. On the screen, the news A and they’ve even run the New York Marathon dar. A special hotline takes calls with breaking Tagesschau (ARD) on some days. together. news that require a rapid response: Osama bin “The mix has to be right,” says Wulf. Domes- Since Fall 2010, the RTL Television’s news Laden has been killed. Or at 04:00 a.m.: Michael tic and foreign news, not only politics, but also programs have been produced in a broadcast Jackson has died. Just a few doors down is the coverage of services, medicine and sports. “We center that is second to none. The light-filled “newspool,” where all the footage is edited and deliberately try to stay close to the people, which building with a digitized high-tech studio is in audio is added, by several shifts of colleagues. is probably what sets us apart from Tagesschau. the Deutz district of Cologne, just behind the In the senior editors’ section, Peter Kloeppel We want to give the viewers news that plays railroad station. To minimize vibrations, the and Michael Wulf have offices next to each a role in their lives. We call that ‘news to use.’ RTL Anchorman Peter Kloeppel  side away from the tracks was chosen, and the other with a view of the Rhine. The two make Each item has something special about it.” Born in 1958, he studied agri- studios are mounted on metal springs. All risks a good team, occasionally even finishing each The two chief editors agree that a classic cultural science at Göttingen have been hedged against, and all systems are other’s sentences. They have worked together news item now initially reaches users via the In- from 1978 to 1983 and trained backed up with emergency generators. since 1990, when Wulf was Managing Editor and ternet or the radio. “We’re here to provide more at the Henri Nannen School of The “newsdesk,” the editorial control center Kloeppel was a New York correspondent. They in-depth coverage. TV news should provide Journalism in Hamburg. After that, he was an editor and later with close to 20 employees, coordinates all have produced RTL Aktuell together since 2004. added value, selecting stories from the flood of studio manager at RTL-plus in programs. This is where the central editorial Asked why neither of them ever went elsewhere, information and putting them in context.” To Bonn and RTL correspondent calendar and the list of reporters who have been Kloeppel says: “The workplace atmosphere. And gain orientation, the audience needs faces that in New York. Since 1992 he has been anchorman of RTL Aktuell deployed hangs on the wall alongside a large we have great freedom when it comes to the present the news, says Wulf. Pointing to Peter and since 2004 also Chief Edi- map of the world. This is also where longer- realization of topics.” The hierarchies are flat, Kloeppel, he says: “And he is a brand that view- tor of RTL Television. term forward planning takes place, where major he says. “If a suggestion is good, we go ahead ers have known for 20 years. When your brand is The jacket’s been straightened. The mike is working. The spotlights are on. events like the election, the Olympics, or the with it.” that good, you have to cultivate it.” 6:40 p.m. Kloeppel is already in the studio preparing to present the show

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Television at a glance

Multifaceted, 5,998...... million euros in revenue were generated by RTL Group international, popular in 2012. Operating EBIT (earnings before interest and taxes) amounted to 1,065 million euros in the same period. Shows, series, news, movies, sports, talk shows, magazines. RTL Group’s broadcasters are as multi- 6:50 p.m. 11,931 ... faceted as they are successful – and they are 20 minutes of primetime news is hard work. ... people around the world work for RTL Group. Many reports aren’t completed until after the established in ten countries, with offerings for all program has already begun. So when the red audiences and age groups, and a fast-growing “on air” light goes on, it doesn’t mean that presence on all digital platforms everything is done and dusted. The show is Most popular channel deliberately kept flexible to keep things as In 2012, RTL Television was the most popular channel up-to-date as possible among Germany’s younger viewers for the 20th consecutive Luxembourg-based RTL Group (“RTL” stands for Radio Television year. With an audience share of 15.9 percent among 14- to In reality the set is green, but viewers at home see a clear blue backdrop behind Peter Luxembourg) is Europe’s leading entertainment group with shares 6:45 p.m. Kloeppel and Ulrike von der Groeben as they present the nightly news 49-year-olds, the channel was a significant 4.6 percentage in 53 television channels and 28 radio stations in ten countries, as points ahead of the No. 2. In France, M6 was the only major well as in production companies around the world. Its TV opera- channel to increase its ratings last year. M6 is now No.3 tions include RTL Television in Germany, M6 in France and the RTL among the total audience. RTL Nederland’s four free-to- channels in the Netherlands, Belgium, Luxembourg, Croatia and air channels achieved a primetime market share of 32.3 “We try to be close to Hungary, as well as Antena 3 in Spain. The company also operates percent among viewers aged 20 to 49. RTL-TVI also remains India’s Big RTL Thrill channel as a joint venture and holds shares in by far the most popular channel in Belgium. the people” the National Media Group in Russia. RTL Group was formed in 2000 from the merger of CLT-UFA with Michael Wulf, Managing Director of infoNetwork the British company Pearson TV. The following year, Bertelsmann acquired a majority stake in RTL Group through a stock swap. RTL Group’s production arm, FremantleMedia, is one of the larg- items Gerhard Kohlenbach has approved are est international production companies outside the U.S. Each year, marked in green. There aren’t many yet – only FremantleMedia produces more than 9,100 hours of programming the start of the program is sorted. Kloeppel has for 62 countries (more on page 14 ff). taken off his jacket and is polishing his opening 7:30 p.m. lines. How was the show? Debriefing at the late conference. More:→ Kloeppel and editorial colleagues take a critical look at the 6:13 p.m. Not a sound is heard except the www.rtl-group.com recording printer and the clatter of fingers on keyboards. www.mediengruppe-rtl.de 6:18 p.m. “Baumgartner gets 1:42,” says www.rtl-journalistenschule.de Kohlenbach. “He’s starting at around 7:15 p.m., we won’t be able to show that live, but at least the balloon should already be pretty full in the Presenter Ulrike picture.” von der Groeben  Kloeppel and von der Groeben have to get A School for TV journalists Born in 1957 in Mönchenglad- going soon. They are not allowed to use the el- bit of lint off her sleeve. Her face can be seen on The RTL Journalistenschule in Cologne bach, the TV presenter studied evator in case it gets stuck. At the entrance to the one of the monitors. A dozen colleagues sit next has been training young TV talent since German language and literature, 2001. The 24-month training course to and in 1985/86 worked as an ground floor studio the red “on air” lamp is illu- door in the control room. In the next few min- intern at what would become minated. The presenter of the previous program utes the most common phrase heard here will become a television editor is carried out RTL Radio Luxembourg. She has just signed off. Changes are quickly made be: “Why isn’t the item here yet?” The anchors in various stages at the School and at then became a member of the to the set. The texts that were being edited until are connected to the director by a small ear internships in editorial offices within and editorial team on the RTL-plus outside RTL Group. breakfast magazine show just moments ago appear on the teleprompter. microphone. They both laugh. “Ten seconds,” Guten Morgen Deutschland Dozens of spotlights shine from the ceiling and shouts the floor manager. “Five.” (Good Morning Germany) and camera cranes are adjusted. The room is bright The next morning it starts all over again. A the presenter of Sportshop. green, but the TV viewers at home will only see new day with fresh news. Five days later, Felix Since January 1989 she has been an editor and presenter the usual studio background. Baumgartner is back on the news agenda. This on RTL Aktuell. Kloeppel and von der Groeben are hooked up time he will succeed in his record jump. 2 with microphones. 6:42 p.m. Groeben plucks a

ENGL_ERLEBEN_06-13_ RTL TV.indd 12 28.03.13 15:36 ENGL_ERLEBEN_06-13_ RTL TV.indd 13 28.03.13 15:37 14 Shows 15 Shows Where Dreams Come True Formats such as Idols or The Farmer Wants a Wife are successful around the world. Depending on the country, the names of these shows may be American Idol, Deutsch- land sucht den Superstar or L’amour est dans le pré, and they offer great enter- tainment and a lot of happy winners! Text: Tanja Breukelchen

or a long time, Kelly Clarkson was the girl next door with big dreams. Born in a small town in Texas, Kelly watched as her mother struggled to support her and her two older siblings – after her parents divorced when she was six. She very quickly understood the value of money – and the importance of a strong work ethic: “I’ve worked Fhard since I was seven years old: babysitting, tutoring, waitress- ing, baking pizza,” she said in an interview years later. Her talent for music was discovered at school, when teachers reportedly Kelly Clarkson overheard her singing in the corridors and encouraged her to join the choir. Kelly did, and her goal in life suddenly became clear: she wanted to become a singer! She was determined to make her dreams a reality, so after graduating from high school, Kelly produced a demo CD at her own expense and moved to Los Angeles with a friend. Her first steps as a performer seemed auspicious. Kelly received A

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The six finalists of the first season (second from right: Kelly Clarkson) of the hit show American Idol, which remains at the top in of the ratings charts

The Great Success American Idol started in 2002 and is, with an average 17.4 mil- lion viewers, currently the most successful entertainment series in the United States. In addition to Kelly Clarkson, many other participants have had national and international breakthroughs Kelly Clarkson started her “Stronger” world tour in 2012. And at the end of the year, her first best-of album was released,Greatest Hits – Chapter One on this talent show, including Carrie Underwood, Chris Daughtry, Jennifer Hudson, A friend convinced her Jordin Sparks, Clay Aiken and “I think I’ll always be entwined with Idol to participate in the first Adam Lambert. Over the past season of American Idol. ten years, more than 60 singles Good advice, because from American Idol participants because it was such a great experience Kelly Clarkson (center, have reached top spots on with Clay Aiken, left, and the Billboard Hot 100 in the U.S. Stars such as Paula Abdul, The Company for me. I’m proud of everything I achieved Ruben Studdard, right, the finalists of the sec- Jennifer Lopez, Steven Tyler and FremantleMedia is one of the ond season) won the final Mariah Carey have served on world’s largest and most suc- with Idol, and away from Idol also” round. It was the start of the judges’ panel. cessful creators, producers and Kelly Clarkson, winner of the first seasonseason ofof American Idol her international career distributors of television enter- tainment brands, from prime time entertainment shows, to drama, reality formats, game shows, TV movies, soap operas, small television roles and worked with the waitress, a promoter and an usher, for several she won the final round, becoming the first 2003, went double platinum after selling more and kids and family enter- songwriter Gerry Goffin for a short time. But months. ever American Idol – and signed a contract with than 2.1 million copies in the United States. The tainment programming. The company, a subsidiary of RTL then Goffin fell ill, and soon Kelly suffered yet Then came the turning point. In 2002, RCA Records. album has since sold over 4.5 million copies Group, has three main business another blow of fate. “It was the worst thing Kelly’s friend Jessica Hugghins convinced her For Kelly Clarkson, winning American Idol worldwide. areas – production, licensing that had ever happened to me. On the day we to audition for the TV show American Idol, meant the beginning of a spectacular interna- Great Britain, Australia, Canada... Kelly landed and distribution – and is also had moved all the stuff we had bought with our which was being produced for the first time. tional career. Her first hit single, Before Your on the charts in more and more countries around capitalizing on the digital world in many ways: by extending hard-earned money into our apartment, we The format, from Fremantle Media and 19 En- Love / A Moment Like This, rose from number the world, rising to superstardom. She had one successful program brands on- went out for a quick bite to eat. When we came tertainment, had been a huge hit in the UK, on 52 to number one on the Billboard Hot 100 in hit after another from her albums Breakaway line, by applying its distribution back, everything was ablaze.” A neighbor had the country’s leading commercial broadcaster October 2002, breaking the record for the big- (2004), My December (2007), All I Ever Wanted skills in a multi-platform world, and by creating original content left a cigarette burning. For Kelly, then 19, it was ITV during the winter months 2001 and 2002. gest leap to number one in a single week in the (2009) and Stronger (2011), winning a string of initiatives for new platforms like seemingly the end of her career dreams – at least From 10,000 candidates, Kelly emerged as one chart’s history. It went on to become the best- awards along the way, including two Grammys, YouTube and others. for the time being. Frustrated, she went back to of the top 30 and received a record number of selling single of the year in the United States three MTV Video Music Awards, twelve Billboard th Texas and worked various jobs, including as a votes in the second round. On September 4 , and her first album, Thankful, released in April Music Awards, and four American Music A

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“The fact that I have achieved so incredibly much is like a Cinderella A Decade of Success  story to me!” The talent show Deutschland sucht den Superstar (“DSDS”) Kelly Clarkson, the most successful American Idol winner started in Germany the same year as American Idol launched in the U.S. Dieter Bohlen has Awards, along with countless nominations. with an exciting judging panel featuring Randy been on the judges’ panel since the very beginning, first In the ten years since she was crowned Jackson, Mariah Carey, Nicky Minaj and Keith with Shona Fraser, Thomas Bug America’s first Idol, Kelly has sold more than 25 Urban. and Thomas M. Stein, and in million albums and 36 million singles worldwide After all these years, the show that launched L’amour est dans le pré: the current tenth season with according to Billboard, solidifying her place as her spectacular career is never far from Kelly’s In the French incarnation of Bill and Tom Kaulitz from Tokio the TV franchise The Farmer Hotel and Mateo from Culcha one of the best-selling solo performers of the mind. Speaking about American Idol in an Wants a Wife, dairy farmer Candela. DSDS scored phenom- decade. In 2012 she released her first great- interview years after her win, she said: “I think I’ll Thierry Olive ends up marrying enal ratings – for example, 7 est hits album Greatest Hits – Chapter One, always be entwined with Idol because it was such his beloved Annie. Presenter million watched the big DSDS dedicating the title track Catch My Breath to the a great experience for me. I’m proud of everything Karine Le Marchand (above) finale, in which Tobias Regner couldn’t attend the wedding, was crowned the Superstar family, friends and fans who have supported I achieved with Idol, and away from Idol also.” as she was busy filming new of 2006. The winners to date, her through her journey from Idol winner to It’s clear that through hard work, determi- episodes of the enormously by season, were: Alexander international superstar. nation, and incredible talent, Kelly has made popular show Klaws, Elli Erl, Tobias Regner, Mark Medlock, Thomas Godoj, Kelly’s turning point in life, American Idol, her dreams a reality. For Kelly Clarkson, the Daniel Schuhmacher, Mehrzad is still the most popular entertainment series in working-class girl from Texas, participating in Marashi, Pietro Lombardi and the United States and has now been shown in the show was a rags-to-riches story. “I used to Luca Hänni. over 190 countries, airing throughout all major have nothing. I was really poor,” Clarkson says territories around the world. During its eleventh today. “The fact that I have achieved so incred- season, in 2012, it reached an average of 17.4 ibly much is like a Cinderella story to me!” 2 L’amour est dans le pré million viewers and its twelfth series launched In 2012, the French version of The Farmer Wants A Wife topped its time slot every single week, except for the one night it aired against the Olympics. It was the highest rated entertainment show on M6 for the year, and one of its stars has now found happiness like many others before him on the show Text: Andrea Freund

t was one of the most important weddings of The Farmer Wants a Wife – or, as it is called the year 2012 in France, and Karine Le March- rather more romantically in France, L’amour and – of all people – was unable to attend. Le est dans le pré (loosely translated as “Love Is in IMarchand, host of the French version of The the Field”) – continues to score high ratings in Farmer Wants a Wife, had hoped to be a witness the country. About six million television viewers to the marriage of the good-natured dairy farmer watched the two-part retrospective of the sixth Thierry Olive, and Annie, a dental assistant from season, which was shown prior to the beginning Four of the winners: Alexander a Paris suburb, at a September wedding in Olive’s of the seventh edition. With every new season, Klaws, Mark Medlock, Thomas hometown in Normandy, after the two had met more French viewers tuned in. During the first Godoj and Luca Hänni (from on the show’s seventh hit season. It must have season in 2006, M6 rejoiced over its record 3.5 top to bottom) been the first time that the mayor of the small million viewers; by late summer 2012, the epi- village of Ver, which has just 350 inhabitants, had sode shown two days after Thierry and Annie’s to set up barriers in the street in order to keep wedding saw the number climb past 7 million. control over the crowd of about 8,000 curious An average 6.4 million viewers followed the High Ratings onlookers and a significant media presence, who amorous developments that took place among L’amour est dans le pré (“Love came to celebrate the couple’s union. And Karine the three women and eleven men from various Is in the Field”) is having a suc- Le Marchand? She had a very convincing reason rural areas and their suitors. L’amour est dans le cessful run on M6, RTL Group’s for only being able to congratulate them from pré repeatedly outperformed the public broad- flagship channel in France. More on this topic: afar: she was filming – preparing portraits of new caster France 2. Even the largest private French www.m6.fr/emission-l_ farmers for the next season, so that more of them broadcaster, TF1, decided to change around amour_est_dans_le_pre could find their own happiness over the next its Monday evening programming – all in vain. Kelly Clarkson sings the U.S. national anthem at the Super Bowl in Indianapolis summer. Only the coverage of the London Olympics A

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Shows at a glance

International Shows: Looking for Winners In many countries, these shows and series Happy loving couples: They send the show’s ratings sky-high. offer the best entertainment around. They represent Like married couple Thierry and Annie genres that are successful around the world (left), farmer Sylvain and Valerie (center) are also love-struck. Yoann and Emanu- but are also adapted to each country. What they elle (right) have even had a baby since have in common are their high viewer ratings they found each other. The rural dating and happy winners show is so popular in France that about six million viewers watched the two-part retrospective of the sixth season alone FremantleMedia As an innovative market pioneer, FremantleMedia, a subsidiary was more popular than the farmers’ primetime resulted from this highly popular television of RTL Group, develops, produces and markets outstand- courting activities. program. While not all the relationships formed ing entertainment brands and is among the most successful Gute Zeiten, schlechte Zeiten (“Good Times, Bad Times”) has been Perhaps, in these economically difficult onscreen have lasted, some participants have companies in the sector. It has subsidiaries in 24 countries and running on RTL since 1992 and is, with almost four million viewers rights worldwide, creating more than 9,100 hours of program- a day, Germany’s first and most successful daily soap opera. The times, post-modern France is fascinated by a found true love through the show, which gives 5,000th episode was broadcast in 2012 longing for a simpler life – and certainly by the them the opportunity to get to know people ming each year, rolling out more than 60 formats and almost search for happiness with that special some- they might never have otherwise met. This is 400 individual titles, such as Idols, Got Talent, The X Factor, one. The magazine L’Express even wondered certainly the case for Thierry, who comes from Gute Zeiten, schlechte Zeiten and many more. whether urbanites were in a sense “reconciling” the backwaters of northern France and laugh- More:→ with rural life, which is often much more dif- ingly calls himself a “country bumpkin.” He www.fremantlemedia.com RTL Group’s subsidiary ficult but is also more grounded. Three-quarters was filmed as he happily took the subway for FremantleMedia produces of France’s population now lives in cities, while the very first time in Paris, and his remarks have numerous shows, drama half of the country’s geographical area is still a cult following. He was the viewers’ favorite series, reality formats and devoted to the production of grain and milk even prior to his wedding to Annie. Similar Travelling formats soap operas – all over the world! products, wine and champagne. The show love stories abound worldwide and The Farmer The original formats for Idols and The Farmer Wants a Wife come touches people’s hearts, says Nicolas de Taver- Wants A Wife has gripped the imagination of from Great Britain. The Farmer Wants a Wife, for instance, pre- nost, CEO and Chairman of the Management people all around the globe. In the Netherlands, miered in England in 2001, and has aired in 29 countries to date Board of Groupe M6, plus it presents agriculture Boer Zoekt Vrouw (as the show is known locally) with titles like Boer zoekt vrouw (the Netherlands), L’amour est “in a positive light.” Beautiful images from all is watched by an incredible 35 percent of the dans le pré (France) or Ljubav na selu (Croatia). The same is true over the country are depicted in the show, from population and has been the country’s high- of DSDS. That show’s forerunner, the British talent show Pop Idol, Brittany in western France and Lorraine in the est rated entertainment program since 1995. a 2001 brainchild of Simon Fuller, was licensed worldwide and thus East of France, to Picardy in the north to the Including France, 29 countries have their own aired local versions in 46 territories so far. American Idol alone has been seen in over 190 countries. Love in the German Pyrénées-Atlantique region near the southern- local versions of the format and over 100 series Countryside: most stretch of the French Atlantic coast. So far, have aired internationally to date. In 2012 alone, The Hit Show Bauer most of the candidates have come from there farmers in Canada, Hungary and Latvia began sucht Frau  and from the Gironde region (which includes their own search for love as new local versions Serial success From an industrious Alpine the city of Bordeaux) just a little further to the of the show launched in their countries. With nearly four million viewers a day, Gute Zeiten, schlechte pasture farmer to a taciturn Westphalian grower to an north. The previous season also featured an And Thierry and Annie? After a romantic hon- Zeiten (Good Times, Bad Times), produced by FremantleMedia’s enterprising agriculturalist from olive-oil producer from the island of Corsica. All eymoon in Senegal, they returned to France and subsidiary Grundy UFA, is Germany’s first and most popular daily the flatlands of Frisia – ever in all, 71 poultry, cattle, goat and horse breeders, spent their first Christmas together as a married soap. Similarly successful FremantleMedia-produced series include since the first season ofBauer grape-growers, and dairy, grain and vegetable couple. Annie is now living on Thierry’s farm, and Forbidden Love, broadcast in Australia, Germany, Sweden and sucht Frau ran in October of Greece and elsewhere, and Neighbours – a viewer favorite in 2005, host Inka Bause has been famers aged 24 to 60 have searched for love on they hope to start a family very soon. L’Amour bringing in all types in order L’amour est dans le pré to date. Each of them est dans le pre enters its eighth season in France, Australia since 1986 and now an audience magnet in England, to help farmers of both sexes received letters from other singles before meet- with new farmers hoping to find romance, love New Zealand and many other countries. find true love on TV. Fluttering ing with eight of the potential candidates at a and a partner to share their lives. As Thierry says, hearts and happy endings – with up to 8 million viewers speed-dating session in Paris and then inviting of his marriage to Annie: “It is the best gift I’ve watching on TV. two of them to visit their rural home. So far 13 ever received”. 2 weddings, 37 relationships and 26 children have

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Virtuosos of the Word How a Random House bestseller is born: The Power of Habit by Charles Duhigg. The path from initial idea to post-publication Text: Katja Guttmann. Photos: Jürgen Frank

ut on Broadway police sirens wail, traffic roars, an endless stream of people rush about. But once you walk through the revolving glass doors, into the tranquil atmosphere of Random House’s world head- quarters, all of that falls away. In the high-ceilinged lobby, it is impossible not to notice what Omatters here: books. Hundreds of paperbacks and hardcovers – winners of Nobel and Pulitzer prizes, brand-new publications and first-edition classics – fill the shelves, all the way up to the ceiling. And every day, the many occupants of this building work hard to ensure that future Random House titles will one day take up places of honor on these same shelves. The eleventh-floor office of Andy Ward, an Executive Editor in the Random House Publishing Group division, is small, A

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er Ward would like to take a look at Duhigg’s “At the time, I really had no idea how impor- proposal. Although Ward was on vacation at his tant it was to choose the right editor. Andy just home just north of New York City, on the Hud- sounded like a nice guy,” says Duhigg about son River, he asked to see it immediately. his first phone call with Ward, which lasted Standing in his kitchen, as children romped just fifteen minutes. When making his decision around him, Ward began reading the proposal, he relied on Moyers, his agent, who described and knew right away that it was good. Really Random House to him as a great and respected good. home for authors: At Random House, he said, Duhigg, he thought, had a talent for narra- there are decision-makers with the financial tive storytelling and an ability to make complex resources to publish books properly and to find ideas relatable. Above and beyond this, many them the right audience; they are professionals potential readers would undoubtedly love to with real skills and experience – and, not to be Charles Duhigg, Author, know how to get rid of bad habits in their work overlooked, great enthusiasm. “I had no clue Brooklyn, New York  and personal lives. Ward jumped in. “Within a what that meant,” says Duhigg. “Today I know.” Charles Duhigg is originally from New Mexico, studied at day I had the okay and I got on the phone with Charles Duhigg has bright blue eyes and a Harvard and Yale, and has Scott and pre-empted it, that day, for Random thick black beard. He likes to laugh, and laughs worked as an investigative House. It all happened so quickly,” says Ward. often, especially at his editor‘s dry sense of hu- journalist for the New York If several publishing houses are interested in a mor. When the two of them sit at a conference Times since 2006. In 2009 he was a finalist for the Pulitzer future manuscript, it is usually put forward for room table and chat about Salman Rushdie’s Prize. The bestseller The Power auction and sold to the highest bidder; “pre- new memoir, Jennifer Egan’s Twitter novella, or of Habit is his first book. He is empting” a proposal avoids all that, taking it off their families’ Christmas vacation plans, it’s as married, has two children and lives in Brooklyn (New York). the market at a mutually agreed-upon price. By if nothing else exists around them. It’s clear at doing so, Random House was able to avoid a first glance that author and editor not only like bidding war. one another, but have become close friends A

“Back then I had no idea how important it was to choose the right editor” Author Charles Duhigg and his editor Andy Ward became friends while working on The Power of Habit Charles Duhigg, Author

but a floor-to-ceiling window keeps it from Charles Duhigg didn’t yet know any of this Random House Inc., New York  feeling cramped. On three shiny gray shelves about Ward when they spoke for the first time, The publishing group traces along one wall sit stacks of meticulously sorted in the fall of 2009. Duhigg, an award-winning its roots to the C. Bertelsmann manuscripts – the books on which he is cur- investigative business journalist for the New publishing house, founded in rently working. Each one is hand-labeled with York Times, wanted to write his first book. The 1835 in Gütersloh, Germany. the author’s name. “I have a huge amount of idea he was proposing, The Power of Habit, was Currently, Random House Inc. includes 200 independent pub- respect for the writing process, which is incred- to be an exploration of all the behaviors, good lishing houses in 15 countries. ibly hard,” says Ward with a serious glance over and bad, that we perform, every day, without In the U.S., Bertelsmann fully his frameless glasses. He speaks thoughtfully, thinking: Why do some people succeed with acquired paperback publisher Bantam Books in 1980, followed with concentration, occasionally displaying exercise routines, and thus manage to keep the by its purchase of the Double- an impish smile. But behind his smile is an weight off, while others don’t? Why are some day publishing house in 1986, unwavering belief in his authors. He is known companies so good at institutionalizing certain after which the U.S publishing for his keen judgment and inexhaustible energy behaviors, while others never repeat the same company was known as Bantam Doubleday Dell. In 1998 Bertels- when working on their manuscripts, and for process twice? Essentially, what are habits, and mann acquired the prestigious the obsessive attention to detail with which how do they work? Duhigg wrote an eighty-page The bestselling author and journalist publisher Random House, he drives projects forward. Inside the finished proposal, and, together with his agent, went Charles Duhigg in his office at theNew and combined it with Bantam York Times. He took a leave from his work Doubleday Dell. And thus the books he has edited, which are lined up next looking for a publisher. to write The Power of Habit new international publishing to his desktop computer, are glowing notes of Ward was spending the day with his two group Random House began. gratitude from their authors: Andy Ward is a daughters, when the respected literary agent virtuoso of words. Scott Moyers reached him. Moyers asked wheth-

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Andy Ward, Executive Editor at Random House, New York  Andy Ward began his career as an editor at Esquire and GQ magazines, rising to Executive Editor of the latter. He has been an editor at Random House since September 2009. He is married, has two children and lives in Dobbs Ferry (New York). Writing is not always a solitary activity – on the contrary, whenever Duhigg wrote a chapter at a sidewalk cafe (far left), it was never long until his next conversation with his edi- tor, Ward, during which they would Manuscripts, meticulously reformulate passages or discuss the sorted by author’s name, sit design for the book cover (above) on Andy Ward’s shelf waiting to be edited

Holding the reader’s attention for 300 pages, he best anecdotes and explanations,” says Duhigg. quickly learned, is very different from writing a Even when Duhigg himself, on the verge of “Andy forces you to relatively short newspaper or magazine article. exhaustion, would have been content with 85 “I think we worked on the first chapter for three percent perfection, that was not good enough months,” says Duhigg. “I had flown all over the for his editor. “Being friends helps a great deal,” connect all your ideas” country and conducted dozens of interviews, says Ward. Neither of them knows anymore how Charles Duhigg, Author and Andy had edited it four or five times over. many pages, in the end, were revised multiple And in the end, we killed it completely.” Duhigg times and then thrown away. “It was a lot,” says did, at the time, recognize the reasons the Ward. Duhigg remembers two big black garbage chapter had to be abandoned – the text was too bags sitting in his home office, filled with dis- personal, the subject not quite the right way to carded pages from various drafts. as well. “Charlie has a huge brain,” says Ward. open the book. He is grateful to Ward for letting Today, when Duhigg leafs through the pile “He is seemingly capable of everything.” “Andy him recognize this and decide for himself to of rejected drafts for the cover image of The is an incredible editor, but he’s also one of the remove it, for that’s how he learned to build Power of Habit, he has to laugh. One design, most decent human beings I’ve ever met,” says effective chapters that work. “Andy doesn’t lead with circles and squares, looked to him like an Duhigg. (“This book is as much his as mine,” through edict,” says Duhigg, describing the intelligence test for preschoolers. Another, with Duhigg wrote in the book’s acknowledgements.) collaboration. “That’s not his style. He starts a a circle of arrows, like a company report from It took two and half years, from that first conversation – and from this conversation come the 1980s. He is glad that Random House came phone call to the book’s publication in February new ideas and assumptions.” up with an extremely clever visual, a striking 2012, for The Power of Habit to become a best- “Editing is not a straightforward process. It’s red-and-yellow design in which a human figure seller. (In the world of book publishing, this is not just one round of notes and we’re done,” is breaking out from inside a stylized hamster considered fairly quick, for this type of editing- says Ward, who prefers to work the traditional wheel and making playful use of the wheel. For and-reporting-intensive project.) To speed way, with pencil and paper. Duhigg would him, it is simply the perfect metaphor for the things along, Duhigg took a year of leave from usually get the pages back covered with hand- book. Duhigg got the idea for this design during the Times, rented desk space near his Brooklyn written comments, edits, and suggestions. a trip to California, and the graphic artist Anton apartment, and spent every day researching, “Andy forces you to connect all your ideas. He Ioukhnovets implemented it to perfection. “I outlining, and writing. The hardest part, he forces you to use language that is as clear and as have to think about a present for him,” says Andy Ward in his Random House building office in New York, where he spends many hours a day says, was finding his rhythm in the beginning. crisp as possible, and he forces you to find the Duhigg. A editing manuscripts, several of which have become bestsellers

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blog, and took a more active role in his Face- book page and Twitter profile. And the result of all this: “We were able to not only document the word of mouth that was happening online, Books

but also gather valuable insights about who our at a glance readers are. It’s a good example of how quickly book marketing continues to evolve, and how we as a company are using these advantages more and more intensively,” says Greber. The world’s largest trade There were moments of nervousness, howev- er. “Shortly before our publication date on Feb- book publisher ruary 28, 2012, I became petrified that I would Celebrated authors, admired publishers, all genres, let down Andy, and I would let down Random bestsellers, major literary prizes and a huge foot- House, which had invested so much in me and print in the digital as well physical books market. this book,” says Duhigg. But he didn’t have to hold his breath for long. In its influential Sunday The Random House publishing group, with its world Magazine, the New York Times featured an headquarters in New York, is a book publisher of advance excerpt from the book as its cover story: many superlatives it was culled from the book’s most provocative section, in which Duhigg describes how the Tar- Among its authors are John Grisham, Stephen King, E L James, and get national retail chain is studying consumer James Patterson, as well as Stefan Heym, Ernst Jandl, Richard David A perfect team, always in habits in order to gain business advantages from Precht, and Walter Kempowski; they also include Barack Obama, Bill touch: Editor Andy Ward its female customers when they are pregnant. and author Charles Duhigg Clinton, Dan Brown, Dean Koontz and Nigella Lawson, as well as Right after the excerpt was published, Random made The Power of Habit Charlotte Link, Ian McEwan, Julia Navarro, Orhan Pamuk, Christopher into a bestseller, with House received dozens of media inquiries, and Paolini, and Elizabeth George. With 10,000 new books published 300,000 copies sold in the “Since editing the book took off. Duhigg spent much of the annually in 15 countries, in both print and electronic form as well U.S. alone next two months giving interviews, enabling as audiobooks, and with 400 million books sold per year, Random his book to debut at #4 on the bestseller list. In House is the world’s largest trade publishing group. this book, I think the U.S. alone, The Power of Habit so far has From Blanvalet to Manesse, from Goldmann to Random House, sold 300,000 copies in hardcover and e-book from Heyne to DVA – Random House’s German publishing group more about my editions, and it remained on the New York Times encompasses 45 imprints. Every month, they publish some 200 new national lists for thirty-one weeks. The success books, covering a broad spectrum with their titles: everything from story continues internationally, as the rights popular and intellectual entertainment to contemporary and clas- 252 titles ... own habits” have now been sold in 30 countries. sic literary works, children’s and young adult books, self-help and ... from the Random House publishing group were on the Andy Ward, Editor at Random House One of his book’s happiest side effects is that religious books, and a wide range of non-fiction. New York Times bestseller lists in 2012 alone. he himself profited so personally from his re- Verlagsgruppe Random House, headquartered in Munich, is a part search. Much to his wife’s delight, he lost several of Random House, the world’s leading trade publishing group. pounds because he consciously shed his bad 200 independent publishing houses ... habit of eating a chocolate cookie in the cafeteria ... comprise Random House in 15 countries, including every afternoon. For his break, he instead now distinguished imprints like Doubleday and Alfred A. Knopf More:→ chooses to chat a little with his colleagues before www.randomhouse.com (USA), Ebury and Transworld (Great Britain), Plaza & Janés going back to work. Ward also admits to being www.randomhouse.biz (Spain), Sudamericana (Argentina) and Goldmann While Duhigg and Ward were still polish- more conscious of forming better habits since ed- www.randomhouse.de (Germany). ing the final version of The Power of Habit, the iting the book. In the evening, for example, he lays Random House marketing and publicity jug- out his running clothes so they are the first thing gernaut was gathering steam. Months before the he sees the next morning. “The tip from the book E-books book was even finished, Sally Marvin and Maria really works!” Since then, he has been managing More than 47,000 e-books in English, German and Braeckel were busy stoking the curiosity of tra- to go for a run three times a week before catching Spanish are now available as Random House e-books. ditional media, reaching out to television, radio, the train to Grand Central Station, he says. newspapers, and magazines. “We were already And because Duhigg would also like to make very excited about the manuscript, we just had a good habit of his successful collaboration with More than 50 ... to find the right pitch for all the different reader- his editor, he has already sold his next book idea ... authors published by Random House have won the ships: business audience, parents, consumers to Random House; its working title is The Sci- Famous authors: Toni Nobel Prize, including Nobel Prize for Literature winners focused on lifestyle choices and nutrition,” ence of Productivity. As of yet, not a single word Morrison, José Sara- Doris Lessing, Mario Vargas Llosa, Orhan Pamuk and José mago, Orhan Pamuk and Saramago. says Braeckel. Erika Greber and her market- has been committed to paper. But Andy Ward Mario Vargas Llosa (from ing colleagues produced interactive content and Charles Duhigg have already been talking top to bottom) have all like animated videos and banner ads that they up a storm about the project in their favorite been awarded the Nobel Prize for Literature posted on YouTube and various social media Broadway coffee shop. 2 sites. Duhigg launched his own website and a

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China The World’s Markets in Their Sights Bertelsmann’s Corporate Centers in Asia and South America have a direct view of the world’s largest emerging markets. The aim is to close gaps, recognize new trends and take advantage of opportunities Interview: Steffi Kammerer. Photos: Arne Weychardt

Gütersloh nnabelle Yu Long, Thomas Mackenbrock and Pankaj Makkar are young, have impressive careers behind Brazil them, and big adventures ahead of them. As early as 2007, Long went to Beijing for Bertelsmann in order to run the China Corporate Center; in 2012, Thomas AMackenbrock and Pankaj Makkar also set out into the world – as heads of the Corporate Centers in Brazil and India.

EXPERIENCE: The three of you represent Bertelsmann in the world’s growth markets. How did you, as young managers, get into these excit- ing positions? Ms. Long and Mr. Makkar, you graduated from the Ber- telsmann Entrepreneurs Program; maybe we can start there?

India PANKAJ MAKKAR: When I was working on my master’s at Harvard, I looked at companies that were involved in the growth markets. I noticed that many Western employers did not pay much at- A

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though we already employed over 1,000 people Why has digital media changed the situation so “Most Chinese in China, the emphasis was on the book market, much? Can you explain that more concretely? people have heard and the activities were not as focused as they are today. I was with BDMI (the “Bertelsmann THOMAS MACKENBROCK: Each geography has its of Bertelsmann” Digital Media Investments” investment fund) in own set of regulations. But generally speaking, Annabelle Yu Long has run New York and so was intensively involved with digital media is often less restricted for foreign Bertelsmann’s Corporate Center in Beijing since September digital media. A project that we did together ownership than traditional media, especially of 2009 with McKinsey took me back to China, at first in markets like China or Brazil. We can invest just for short periods of time. Then, in 2007 relatively freely in Internet assets. And in fact, Corporate Center I took over the Corporate Center in Beijing, sometimes we can’t even invest as much as we Beijing, China  which we had opened the year before. want to… With 1.34 billion peo- ANNABELLE YU LONG: … because successful ple, China is the most Mr. Mackenbrock, what took you from Gütersloh companies grow so quickly that their owners or populous country on to São Paulo? founders just aren’t interested in selling. Earth. Already in 1992, Bertels- mann set up its first subsidiaries THOMAS MACKENBROCK: So you have to be more there. By now, all the Group’s units THOMAS MACKENBROCK: I came to Bertelsmann creative with regard to minority investments are active there: FremantleMedia in 2006 and worked on corporate development or possible partnerships. And when you look (RTL Group) brought TV shows like On their way to the top in Gütersloh. Prior to that I worked with McKin- at what Annabelle and Pankaj have achieved, it China’s Got Talent, X Factor, Hole Corporate Center Chief Executives (from left) Thomas Mackenbrock (Brazil), Pankaj Makkar (India) and Annabelle Yu Long (China) in the Wall or Take Me Out to the sey, in the telecommunications, media and high becomes clear that you need a number of dif- Chinese market. Random House tech area. In early 2011, I was in Brazil for a ferent instruments. We had to find new ways for sells international bestsellers project, and I fell in love with the country right Bertelsmann to be involved in these markets. there and sells translation rights to Chinese publishers. Gruner + Jahr, away. That fit well, because we had already PANKAJ MAKKAR: In India the situation is a little with its partner Boda, publishes “I am impressed by how set up Corporate Centers in China and India, different. It is certainly possible for foreign com- leading parenting, women’s, men’s yet there was still one gap: Latin America. At panies to own businesses there; Sony and News- and lifestyle magazines. And first glance, we thought that there were several corp have shown us that. But the fact is that Arvato, the largest Bertelsmann much freedom the employees unit in China, has a logistics net- barriers to entry: the dominance of local media there are a lot of companies active in traditional work that spans the country, and groups and the limitations for foreign owners media. We are getting into the market with partners with major international are granted in their work” did not seem very promising. But then when we manageable building-blocks and can continue and Chinese corporations. The BAI saw how successfully Annabelle was working in to expand from here on out. investment fund was founded in Annabelle Yu Long, China Corporate Center 2008 and has 20 holdings. China, how she went in new directions by part- THOMAS MACKENBROCK: That helps limit the risk. nering with other investors and addressing the digital media space, we began to rethink our ap- Can you give some examples? proach to Latin America as well. And it became tention to the specific local context; they simply ed the program. I had worked for a state-run TV clear that with a flexible investment approach THOMAS MACKENBROCK: In all three countries, we wanted to transfer what they knew from their station in China for many years, and when I was and a focus on new growth areas like education have a set of different approaches. One possibil- Corporate Centers  own countries. But at Bertelsmann I noticed studying at Stanford I thought I would become and digital media, a wide range of attractive op- ity is to invest in a local fund to acquire exper- In its bid to enter growth right away that our entrepreneurial approaches a banker or consultant with my MBA, as most portunities awaited us. tise, a network and co-investment possibilities. markets around the world, Ber- were very similar. Plus, the Bertelsmann En- of my fellow students did. And then I came ANNABELLE YU LONG: When I arrived in Beijing at There is limited risk, and it’s a great way to get telsmann is counting on people trepreneurs Program works in both directions. across Bertelsmann. During our first conversa- the time, the “big potential” was no more than a established, to build a foundation. Then we also who recognize trends, supervise On the one hand, you get insights into Bertels- tions, I was already impressed by how much working hypothesis for us. With the knowledge look for direct investments. This can result in projects and pursue entrepre- neurial goals. So in addition to mann’s experience and expertise in all the dif- freedom the employees are granted in their I had acquired at BDMI in New York, I was of very interesting portfolios. Let’s just look at what its headquarters in Gütersloh ferent regions of the world. On the other hand, work. This is my eighth year with the company, course very focused on digital media and was Annabelle has built up over the last years. The and its branches in Berlin and the company is also very open to seeing what and the opportunities, the responsibility you looking for opportunities in this area. And so spectrum of companies in her portfolio ranges Brussels, the company has Corporate Centers in New York, ideas the individual has, what local knowledge are given early on, the trust that is placed in you I started talking to more and more colleagues, from small startups to Chinese firms that are Beijing, New Delhi and São Paulo each person brings with him or her. as a young person, are truly wonderful. When I and the idea of starting a fund grew. That’s how listed on the New York Stock Exchange. (the latter two newly opened). ANNABELLE YU LONG: I agree with that, but I did started in New York in 2005, we didn’t yet have a BAI, Bertelsmann Asia Investments, was born PANKAJ MAKKAR: Above all, we need to be able not have as clear an idea as Pankaj when I start- clear strategy for the new growth markets. Even in 2008. to assess risks and try to minimize them as A

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“If we succeed in much as possible. Growth markets are always company, but also, in particular, as a family “Bertelsmann setting things up risky, especially for protagonists who are new business. That is very significant for our part- has set out on a to the market. Joint ventures with local partners ners in India, because their values and way of right, we can really are another tool. The partner brings the local thinking are similar. global journey” leave deep tracks expertise, is familiar with consumer behavior in THOMAS MACKENBROCK: In Brazil most of our Thomas Mackenbrock has run that country, and knows, for example, how TV partner companies are owned by families. They Bertelsmann’s Corporate Center in there” shows should be designed. We, Bertelsmann, speak the same language as Bertelsmann: long- São Paulo since January of 2012 Pankaj Makkar has run then deliver the content. That is exactly what we term orientation and strong corporate culture. Bertelsmann’s Corporate Center did in India with our RTL joint venture, the first It should also be noted that these families often in New Delhi since February Corporate Center of 2012 of its kind. Our adventure channel, Thrill, has have a European background. In some cases, São Paulo, Brazil  been on the air since November 2012. discussions involve partners whose grandfather or Brazil, with over 192 great-grandfather immigrated from Europe. This Corporate Center million inhabitants New Delhi, India  What role does the Internet play in your respec- emotional connection usually makes things easier. and an area of 8.5 tive countries? What specific opportunities does ANNABELLE YU LONG: In China things are some- million square kilometer, is the India, with over 1.2 world’s fifth-largest nation and billion inhabitants, is it offer? what different. In my country, people generally South America’s most populous the world’s second- have a high opinion of European countries. country. Bertelsmann had already most populous country and is THOMAS MACKENBROCK: Brazil is behind China That is especially true for Germany; quality and “We are now present been represented in South Ame- considered the world’s largest in terms of development, but right now the discipline are things we value highly. Most Chi- rica for quite some time prior to democracy. At the opening of the opening its own Corporate Center new Corporate Center in February Internet in Brazil is taking off at an incredible nese people have heard the name Bertelsmann; with our own offices in all there in June of 2012. Among 2012, Thomas Rabe, Bertelsmann pace. Nowadays, nearly half the population we are one of the first Western companies that the shows marketed there by Chairman and CEO, stated, “India has access to the Web, and the number is ris- entered the market here in the early nineties. FremantleMedia were hits like Idol is an important market for our and The Apprentice. The Random international growth. The country’s ing. Many companies are still in their infancy. the growth regions” House book publishing subsidiary demographic, economic and One interesting observation: Brazilians are How often do you three share information? How is represented in Argentina, Chile, Thomas Mackenbrock, Brazil Corporate Center technological development offers crazy about social media. In fact, Brazil has closely do you work together? Mexico, Colombia and Uruguay. a future-oriented company like just surpassed India in terms of Facebook user Three automotive magazine Bertelsmann many opportunities.” branches in Argentina, Mexico and All of Bertelsmann’s corporate numbers and now is second only to the United ANNABELLE YU LONG: We communicate con- Brazil as well as G y J Televisia in units were already present in States. It’s a very exciting time here. We are stantly. On the phone, via video conference, via Mexico belong to Gruner + Jahr. India prior to the opening: The right where China was five years ago, and the e-mail, or we meet in person. In South America, Arvato works in RTL Group started two TV stations next wave is building momentum. THOMAS MACKENBROCK: Thanks to various the areas of distribution services, there with a national partner; service centers and print. Overall, FremantleMedia is involved with PANKAJ MAKKAR: In India the situation is similar projects in which we have been involved, we Bertelsmann has about 3,000 em- hit shows like Indian Idol, X Factor, to that in Brazil. The Internet is booming. But three really know one another well. I worked ployees in South America. The goal and Got Talent; Random House it’s happening via mobile devices, not via com- with Pankaj three years ago in New York; I was PANKAJ MAKKAR: It starts with asking about for Gütersloh as well. After all, a lot more is is to build on that in the future, India has been publishing books as Thomas Rabe explained at the there since 2005. In 2011 Gruner puters. Cell phones are ten times as common in China with Annabelle in 2007. It’s really a employees: how many do you need? And then at stake than just establishing a Corporate official opening of the Center: “It is + Jahr took over a majority share as computers. From the consumer perspective, wonderful situation. Even though we are now all it moves to logistical challenges. And then to Center in a particular location. Bertelsmann important to be represented with a in the Indian magazine publisher this means new routes to information and en- in different regions of the world, we have a solid what types of projects make sense. What can has set out on a global journey. Links of central anchor. The new Corporate Maxposure. And Arvato India has tertainment. Even people living in villages can personal connection. you do to build up a brand as fast as possible? a chain are being joined together. We are Center will help us further develop been working in the Customer & our existing activities in this region Marketing Services unit as well as get connected now. It is a revolution that af- PANKAJ MAKKAR: Specifically, that means we all How much do we want to promise? That’s a now present with our own offices in all the and to build up new businesses – in e-commerce since 2003. All the fects the entire country. It’s a great time for us know we can pick up the phone anytime to say, tricky question – if you pledge too much, things growth regions. for example in the areas of educa- corporate units will expand their to be involved. If we succeed in setting things “This is what’s happening here. Do you see a can get difficult, but if the targets are too low, ANNABELLE YU LONG: And this development tion and digital media.” business in India significantly in the coming years. up right, we can really leave deep tracks here. similar development there? Do you know some- the brand won’t develop well. China really was is based on a trim, flexible strategy. It’s very one I could get in touch with?” And we visit each the test vehicle for all these questions, and An- efficient. We can move quickly. I think we What does the fact that Bertelsmann is a other’s countries, which is also very helpful. nabelle did an amazing job. When I started my are really well positioned. I don’t see any European or German company mean in your Center, I got a lot of help from Annabelle. I was other media company that is as well posi- countries? The Corporate Center in China opened in 2006, really lucky that she was able to come to India tioned for a globally based digital regional followed by the Centers in India, then Brazil, in for this purpose. strategy. 2 PANKAJ MAKKAR: I think that in India Bertels- 2012. How have you been able to benefit from one THOMAS MACKENBROCK: And then, it’s not just a mann is perceived not just as a big international another? learning process for us. It’s a whole new journey

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I read because ... Gruner + Jahr’s world of magazines is as diverse – and its topics and formats as varied – as the countries the magazines appear in. Why readers all over the world look forward to every issue of “their” magazine Text: Tanja Breukelchen. Photos: Bernd Jonkmanns

rance, India, China, the Netherlands, Spain... Gruner + Jahr is represented in over 30 countries with more than 500 media products. High-quality magazines for a wide readership and attractive target groups. Quality journal- ism, opulent visuals, topicality – Gruner + Jahr has a market-leading title in nearly every magazine segment. FAdd to that content for tablets, apps and high-reach websites. Worldwide. Topics range from news magazines to fashion and science, from travel to family life. Who reads what? And above all: how, where and why? We asked readers from all over the world about their favorite Gruner + Jahr magazines. 2 A

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“I’ve been reading BRIGITTE for a long, long time. I’ve Germany: bought quite a few other women’s magazines as well, BRIGITTE  From fashion and cosmetics to but the good thing about Brigitte is that it doesn’t cultural and social topics, and even psychology dossiers: The keep changing. It stays true to its style. You get good, women who read BRIGITTE have high standards. They not only practical fashion tips, great recipes, good stories and expect excellent entertainment and reliable information, but also

interesting travel articles” a high use value. Sophistication Gabriele Büttner (49), freelance online shop owner from Hamburg and excellent content are also the guiding values for BRIGITTE WOMAN, the popular title for women aged 40 and over. Publication: bi-weekly Circulation: 577,049

Germany: STERN  People are inundated with infor- mation these days. To find your way around, the last thing you need is more facts and figures. You want a magazine that filters, categorizes, and evaluates. STERN Gruner + Jahr  provides orientation because it In 1965, the publishers John offers context as well as content. Jahr and Dr. Gerd Bucerius Generous visuals, a modern, clear teamed up with the printer layout, topical social issues, the Richard Gruner to create the most important current events, Gruner + Jahr printing and pub- and a look at the human side of lishing house. In the late 1960s, the news. STERN takes a stand, Gruner sold his shares; Jahr and states a point of view and gets Bucerius each held 37.5 percent. involved. The publisher Reinhard Mohn Publication: bought a 25-percent stake. weekly By 1975, Mohn’s media group, Bertelsmann, had acquired 74.9 Circulation: 788,621 percent of the shares. Only one of the founders remained a shareholder – the Jahr publishing family. Gruner + Jahr strengthened its position by acquiring holdings and compa- nies in Germany and, from 1978 onwards, abroad.

“Sure, it’s impossible to be in the Netherlands: “The first thing I look know about everything and have QUEST  QUEST offers a fun way to learn more about nature, at in the new STERN something to say on it – but why technology, health, psychology and history. The magazine uses contemporary language and design is the last page, is not at least try? Since I started and presents exciting photos, elaborate illustrations and informative charts. Its concept is based on the ‘What’s XY up to these reading QUEST, I never cease to be international family of brands built around the popular days...’. Then I look at amazed at how much knowledge is science magazine FOCUS, which is the best-selling monthly title in Italy with an average circulation of the TV schedule. I like to read the insurance tips. Otherwise, packed into every issue” 425,000 copies. I always skim through it once, then begin to read – unless Noah Baars (26), political science student from Amsterdam Publication: monthly Gaby nicks it off me and I don’t get it back until just before Circulation: 181,698 the new issue is out” Darius Büttner (46), account manager from Hamburg A

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“Reading GEO means always learn- ”I travel all over the world, ing new things, discovering and and sometimes live in understanding the world around us. Europe – in Hamburg Whether it is major travel features and Rome. But when I’m or scientific news, everything is in China, I regularly buy made interesting and is fun to read. RAYLI FUSHI MEIRONG If you have children, I recommend simply because it sets GEOlino and GEOlino mini, even for trends, it’s young, and it very small explorers of the world” offers me fashions that Andor Busse (47), architect from Hamburg, with Johnny (8) are a perfect mix between the latest looks and Chi- nese tradition” Linda Chang (32), actress from Shanghai

China: RAYLI FUSHI MEIRONG  A unique blend of Western fash- ion trends and traditional Asian fashion: RAYLI FUSHI MEIRONG (“Fashion & Beauty”) is the leading high quality women’s magazine in China. Two glossy editions are available each month as a twin pack. With around 400 pages of wearable clothes, fashion and beauty products from renowned international brands, the very latest styles, accessories and trends as well as beauty and lifestyle topics, RAYLI FUSHI MEIRONG represents the lifestyle of young Chinese women aged from 20 to 30 years old.

Publication: Germany: monthly GEO  Circulation: 1,380,000 With serious journalism, brilliant visuals, authenticity, vision and connective thinking, GEO is a basic medium of the information society. France: It stands for conveying knowledge GALA  and values. With its journalistic In just ten years, GALA has be- principles – “a liking for the un- come the top people magazine in usual”; “a curiosity for what’s worth the women’s segment in France; a knowing”; “an awareness of the magazine that invites readers to endangered”; and “an open mind escape from everyday life and to about the future” – GEO is the most dream a little. Every week, GALA widely read monthly magazine sold offers insights into the world of on newsstands, and one of the most the rich and famous, and lots ”My job requires me to always stay well informed about political and influential media in Germany. The of reports on fashion, beauty economic issues, and I regularly read several newspapers and politi- GEO family offers specialist coverage and everything for a beautiful of specific themes with GEOlino, home. There are also exclusive cal magazines, so GALA is a wonderful balance for me: It is produced GEO Epoche, GEO kompakt, GEO interviews with celebrities from Saison, GEO Special, GEO Wissen film, music, politics, business, TV, to high standards, reputable and yet so colorful and glamorous that and GEO thema. sports, society and literature. you can easily submerge yourself into its world while still feeling you Publication: Publication: are being well informed – about subjects other than the ones I cover. monthly weekly Circulation: 285,417 Circulation: 283,968 That’s what makes reading GALA so relaxing for me”

WITH THE KIND SUPPORT OF THE LA BIOSTHÉTIQUE SALON IN PARIS IN SALON BIOSTHÉTIQUE LA THE OF SUPPORT KIND THE WITH Elisabeth Pinteau (41), political journalist at Reuters, shown here having her hair done A

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”Whether it’s an item about computers or wildlife, again and again I come across exciting and sur- prising topics in MUY INTERESANTE that stand out from the usual monotony of information. I learn a lot too – and I’ve already impressed many France: a party with my knowledge. I like the photos and NEON  India: layout: It’s a very modern magazine” Nearly ten years after the launch ANDPERSAND  of NEON in Germany, Gruner Centered around art, luxury and Marcos Martínez López (39), musician from Valencia + Jahr has launched a French lifestyle topics, ANDPERSAND edition of the successful lifestyle caters to people who enjoy and magazine. NEON offers emotional are interested in art, design, topicality and a broad variety culture and an exclusive lifestyle. of content including high-level The magazine presents news reports on social and political and updates on the latest trends topics, fashion trends, relation- in art, design, travel and fashion Spain: ships, career, travel and pop and makes recommendations for MUY INTERESANTE  culture, and is both entertaining interesting locations, restaurants MUY INTERESANTE conveys and informative. and events. ANDPERSAND also knowledge, interconnections, wins over its intellectual reader- background information, and the Publication: ship with up-to-date background latest developments and trends in monthly features on world events. an exciting, entertaining and un- Circulation: 75,000 derstandable way. As a result, the Publication: magazine has attracted a modern, bi-monthly open-minded and knowledge- Circulation: 60,000 thirsty readership on the Iberian Peninsula. MUY INTERESANTE also offers bimonthly special editions.

Publication: monthly Circulation: 170,138

”In the past 15 years India has taken first steps towards the world market. Whenever people become more prosperous, their interest in art and culture grows – as does investment in these areas. Many wealthy ”It’s great that we have NEON in Indians treat themselves to art. Yet there France now, too. One of us always are not a lot of magazines in India. That’s buys it. The articles have depth why it’s important to have a magazine like and show that topics from politics ANDPERSAND that provides reputable, ex- and business can also be told tensive information about the scene, about in a different way” artists and their exhibitions “ Anika Kleinebrecht (36) and Norman Noulez (23), Ashwani Bhanot (37), yoga teacher from New Delhi hairdressers from Paris A

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Spain: SER PADRES  SER PADRES accompanies a child’s development from its first Magazines years until puberty. The magazine at a glance serves young Spanish families by providing advice and answering questions on sexuality, pregnancy and giving birth, on infant care and childrearing, so that children Magazines worldwide can grow up in a happy environ- Gruner + Jahr stands for quality journalism, a wide ment. The supplement SER PADRES BEBÉ is devoted to the variety of subjects, and innovation youngest members of the family.

Publication: The printing and publishing house Gruner + Jahr is headquartered in monthly Hamburg and offers more than 500 media products in the form of Circulation: 106,984 magazines, websites and digital media formats and magazines in over 30 countries around the world. With titles such as Stern, Brigitte, Geo, Capital, Gala, Eltern, P.M. and Essen & Trinken the publishing house stands for expertise in all areas: news, business, science, services, fashion, and lifestyle. 11,585 employees across the world ensure this. Gruner + Jahr’s most important international holding is Prisma Média in Paris. Prisma Média is a wholly owned subsidiary of Gruner + Jahr and “I’ve read SER PADRES since my first pregnancy. As a new is the second-largest and most profitable magazine publisher in France. mother you are often uncertain and have doubts, so I found Gruner + Jahr also publishes magazines in China, India, Italy, the Nether- lands, Austria, Poland, Spain, the Adriatic countries and Mexico. all the expert and reader advice on topics such as breastfeed- In Germany, Gruner + Jahr owns a stake in Dresdner Druck- und ing and weaning very helpful. Today I’m more interested in the Verlagshaus (60%), Motor-Presse Stuttgart (59.9%), in SPIEGEL-Verlag Rudolf Augstein GmbH & Co. KG (25.25%) and the Hamburg School of long features, for example on ecological gardening” Journalism (Henri Nannen School, 95%). Esther Enjuto Castellanos (49), public administration worker, and Eusebio Llacer Llorca (50), English More:→ lecturer at the University of Valencia, with Ignacio (16), Gabriel (12) and Eusebio (10) www.guj.de

New strengths: Digital The transformation of journalistic content into the digital world is the key challenge facing G+J. In Germany alone the publishing house now offers more than 20 Internet services linked to its titles, such as www.brigitte.de and www.neon.de on. There are about 60 branded sites in Germany alone, and the brands maintain more than 150 social media presences. Users can view information and participate in commu- nities, as well as order books and calendars and other selected products directly from online shops, receive newsletters, and access a variety of databases. Gruner + Jahr’s online services are also available on Netherlands: mobile devices. VOGUE  ”Why are we reading VOGUE More:→ As one of the world’s foremost www.guj.de fashion magazines, Vogue is during a break from shop- aimed at discerning, fashion- orientated readers who appreciate ping? It inspires us, because quality and editorial expertise. hardly any other magazine Quality for tomorrow: Brimming with impressive Our own school of journalism photography, VOGUE presents is as close to the fashion topical reports and features on Quality journalism: For 34 years now, the Gruner + Jahr publishing culture and the fashion industry. world. You get the feeling house has run its own school of journalism, where 20 participants a G+J Uitgevers brings the legend- year are trained following a tough admissions procedure. The school These are just 20 ary fashion magazine to Dutch you’re sitting right by the provides a foundation of knowledge, research expertise and quality on examples of the more newsstands in cooperation with catwalk. Add a cappuccino which the publisher can build. than 500 different Condé Nast. media products that and it makes shopping even More:→ Gruner + Jahr pro- Publication: www.journalistenschule.de duces worldwide monthly more fun” Circulation: 60,000 Annika Tol (25) and Eva Mattern (28), online journalists from Amsterdam and The Hague

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“Like an uncle…“ A brilliant idea? A bold business venture? A start-up for the future? Young, innovative companies in the digital media field have a strong partner at their side in Bertelsmann Text: Anna Butterbrod. Photos: Sebastian Pfütze

lika from Brazil chats with Endstille from Germany. Allan1995 from Costa Rica plays a game of Tic Tac Toe with Sunny Girl in Hong Kong. Leventon from South Africa writes: “Hi, I’m new here. Looking forward to meeting you all!” The fact that these five people from the farthest- Eflung corners of the world interact with each other is due to two people from Cologne: Christian R. Schulte (40) and Cornelius Rost (37), who founded the online network qeep in 2006. Two years earlier, Facebook had revolutionized everyday life on the Internet, and they both anticipated that the mobile Internet would soon have an equally far-reaching effect. The two business economist friends added an application for their own amuse- ment – computer games. And with that a business idea was born: a mobile community where you can meet people and play games with them. A

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ing racy photos that members try to upload to are saved – possibly the most important lesson their profiles. The cleanup is necessary, or qeep for a start-up. would soon turn into an erotic portal. “In the Shortly after qeep launched, each new client beginning it was strange,” she says. “But now I was celebrated as a sensation and cheers echoed qeep, Cologne: don’t even notice that I’m looking at naked peo- through the loft. “Even if only one user per Facts and figures  ple.” At the next desk, product developer Guido day was online, we gave it our all,” says Guido When the two Managing Frohn (39) and Bjorn Fietz (32), a freelance Frohn and laughs, recalling the days when Directors Cornelius Rost and writer, are talking shop. Actually Fietz is a labor the network consisted almost entirely of qeep Christian R. Schulte founded and social rights lawyer, but writes screenplays employees. “We had to play and chat like mad qeep in 2006, they had nothing except an idea: transferring skill for qeep adventure games as a sideline. Just so that customers didn’t feel like they were in gaming and friend networks now they’re discussing the new “Area 8”, where an empty disco.” qeep thrives on diversity. “We from the Internet to cell phones. participants have to fight aliens in a destroyed are doomed to grow, as it were,” says founder After starting small, they now 2 city. “My job as a lawyer is very matter-of-fact; Cornelius Rost. And the qeep community is occupy a 330m office loft in the Kalk district of Cologne. as a writer I can be creative,” he says. “It’s a nice indeed growing: It now has 17 million mem- qeep currently has more than balance.” bers, and success has become the norm. Serene 17 million members. Rost and Most of the team are between 20 and 40 years calm prevails in the XXL office. All you can hear Schulte employ 18 people aged between 20 and 40 years who old, in other words close to the target 18 to 24 is the steady tap of computer keyboards – and have just as much fun with age group. Each employee receives a company a crunching sound: While Huu Ha Le (29) their work as the members cell phone. Many of them have three mobiles programs a new game on a screen, he nibbles do with computer games and on the table – for gaming, trying things out, and breakfast cereal from a porcelain bowl. Behind mobile networks. making private calls. Everything looks stylish the native Vietnamese is a poster of the sexy and clean, but it’s done on a budget. The large pop singer Shakira – a source of inspiration that gray plant tubs came from a Lufthansa clear- Huu is denied from his regular sitting position. Bertelsmann Digital ance sale; the desks and chairs were bought sec- Meanwhile, Bernd, who sits opposite him, has Media Investments ond-hand from other companies. Rather than an ideal view. Is he the secret Shakira fan who Bertelsmann Digital Media Invest- ments (BDMI) is a Luxembourg- have snacks delivered from expensive third-par- put the picture up? The programmer smiles and based venture capital fund ty suppliers, the team stock a shelf themselves says nothing. founded by Bertelsmann and and keep a running tab of what people have to One of the network’s most popular games is managed by an international pay. Wherever possible, unnecessary extra costs “Friend Zoo” in which your friends become team from the U.S. and Germany. A BDMI’s portfolio includes startups Pizza day: the directors and employees order from an Italian restaurant around the corner, which regularly runs Tuesday specials like the American Reading Com- pany, deal united, drama fever, LearnShip, Mojiva, trion, audible. com, Returbo and RegioHelden.

Schulte and Rost missed being their own boss. They had both already successfully “We are founded and sold businesses, but were working full-time for other companies when they came up with the idea of qeep in 2005: Schulte was doomed to grow, working at T-Mobile, Rost at Nintendo. “In large corporations, strategies and structure often eat as it were” up a lot of time, which results in momentum Cornelius Rost, Managing Director of qeep being lost,” says Schulte. “Being self-employed always appealed to us because good and bad decisions have a direct impact.” Rost was the first to quit his day job, and de- veloped qeep from a desk at a friend’s company. When Schulte followed suit, they moved into an office and finally, in 2007, into a 330m2 loft in a trendy office building in the Kalk district of ian restaurant around the corner has a special Cologne. It looks like one of the cool open-plan offer. Everyone eats together in the conference offices you see on American TV: The walls are room: Nina Lentzen (24), an intern with translu- painted mint green, bicycles are parked next to cent pink-purple glasses and a lip piercing, talks a pink beanbag, and photos are tacked up on a with Bernd Wahlen (33), a programmer, about The idea behind qeep is magnetic wall, including one of a city run that his weekend trips to Marrakech, Tallinn and simple: To use the service, all “team qeep” took part in. The smell of chicken Agadir. This isn’t what you’d imagine tech geeks you need is an Internet-ready being fried for lunch by one of the company’s 18 to be like... cell phone – download the free software onto the device, employees comes from the kitchen. The rest are qeep is in fact different in many ways: For set up a profile, and get ordering pizza as today is Tuesday and the Ital- instance, Nina’s job duties also include delet- started right away!

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came as a big relief to the start-up directors. “You can’t fund this kind of company yourself indefinitely. Especially not if you want to suc- ceed globally,” says Rost. To keep revenues on the rise, qeep must constantly come up with new incentives. First it was “Sound Attacks” - loud noises that you can send to friends, that their cell phone will play to them. Attacks range from a high-pitched “happy birthday” to rude bodily sounds. Since last year, members can earn “badges” if, for example, they upload photos three days in a row or log in ten days in a row. Christian R. Schulte: While Nina Lentzen checks the work done Managing Director  by a photo administrator from Bangladesh, she Christian R. Schulte studied Business Administration at the For qeep employees, the digital and computer scientist Michael Landen (31), Otto Beisheim School of Man- challenge lies primarily in their own seated next to her, cultivate good customer agement (WHU) in Vallendar, enjoyment of playing the games. EDHEC in Nice and Pennsylvania They invented almost all of the relations, patiently answering questions and State University. He built up the games offered solving problems. They often get thank-you technology company econia and emails, some with wedding photos of couples worked as a strategy consultant who have met through the network. “qeep is as well as Head of Strategy for more than a tool,” says Rost. “We want people the German subsidiary of DEXIA to feel virtually at home here. We make it cozy S.A. Most recently he served as a senior manager in T-Mobile’s money to the table, but also know-how and a for them.” This leads to very real friendships, strategy department. Schulte network that has opened quite a few doors for such as the one between Cornelius Rost and is married and the father of “We want people us,” says Schulte. Bertelsmann owns shares Irfan Khan Afridi, 33, a mechanic from Pakistan. 3-year-old twins. in qeep, so important steps are coordinated They bumped into each other online and have beforehand. “What’s special about Bertelsmann exchanged ideas on a regular basis since then. to feel virtually is that we were assigned a kind of ‘uncle’ who Recently, a package arrived at Rost’s desk from knows the industry well and helps us out when Irfan containing gifts and Pakistani trail mix - at home here“ we have questions.” Schulte and Rost presented the perfect comfort food for the next chapter in their concept to Bertelsmann at the end of 2006 the company’s history... 2 Cornelius Rost, qeep Managing Director and were given the nod three months later. This Digital at a glance

Discover opportunities Cornelius Rost: Managing Director  pets that you sell to other players. Each sale virtual gift to sell so well. “You can’t test mem- Believing in the future also means investing in Cornelius Rost studied Business increases the value of the animal. The network’s bers’ reactions in advance – we have to rely on new ideas and innovations. This is what Bertelsmann Digital Administration at the Beisheim currency is q-points. Customers can buy q- our gut instincts,” says Schulte. In the case of Media Investments (BDMI) puts into practice School of Management points (1,000 units cost $1) to use as stakes for the Infinity Diamond it was a good one - 1,122 (WHU) in Vallendar, the Ecole games. This is how qeep makes 80 percent of its users have bought one since its introduction Supérieure de Commerce de The BDMI investment Skimlinks, which shopping portal Mogujie expanded its Toulouse and the University of revenues. The remaining 20 percent comes from two years ago. “But you shouldn’t try to overdo helps website publishers to monetize leadership in the social e-commerce Western Australia. From 1999 advertising. qeep employees are particularly in things,” says Schulte. “Otherwise you can ruin their content, increased its revenues sector, increased its reach by 200 per- to 2001 he established the demand as pets because it’s as though you were things pretty quickly.” Internet communities amiro and by more than 80 percent and scored cent, and enabled transactions worth friends with Mark Zuckerberg himself. And that would be fatal, especially now that ciao as Founder and Marketing more than three billion page views in $30 million per month. Director. From 2002 to 2006 he Virtual gifts, which appear as small pictures things are going so well. Every month qeep December 2012 alone. Many of the was European Brand Manager at the top of the recipient’s profile, are also on adds another 500,000 new customers, and the More:→ at Nintendo for Game Boy Ad- Bertelsmann Digital Media Investments www.bdmifund.com vance and Nintendo DS. He is offer. A $5 diamond ring is the most sought- company will soon be turning a profit. It has fund’s holdings are on an expansion- married and has two daughters after. Several times a day the $100 Infinity only been able to keep going financially thanks ist course. One example: in 2012, the (aged 2 and 4). Diamond is also ordered. Neither of the two to its sponsors, one of which is Bertelsmann directors expected such a high-priced, purely Digital Media Investments. “They not only bring

ENGL_ERLEBEN_46-51_Digital.indd 50 28.03.13 16:58 ENGL_ERLEBEN_46-51_Digital.indd 51 28.03.13 13:24 52 Radio & Music 53 Radio Good vibes on the airwaves – Fun Radio The station with the “dance-floor sound” gives us a foretaste of what radio of tomorrow will be like: friendly and ever closer to listeners thanks to the new digital media and social networks Text: Olaf Tarmas. Photos: Odile Hain

onjour! It’s only six in the morning, but already the team at the Fun Radio Studio in Paris is wide awake and ready to get to work. Bruno and his six morning-show partners are gathered around the table and try – with a cheery group salute – to help their listeners shake off the last traces of sleepiness. Just to make sure the job Bis done, seconds later the station hits them with a chart-topping dance track. An upbeat style, music that you’d hear in the hottest clubs, and sharp presenters are the recipe to Fun Radio’s success; a recipe that goes down very well with young listeners in the 18- 34 age bracket. Since the station’s audience peaks in the morning, between 6 and 9 a.m., Bruno dans la radio (Bruno on the radio) is the most important program of the day. Waking up, having breakfast, commuting to work – Bruno and his team accompany their listeners through all these stages of the morning to get their day off to a good start. Fun Radio’s listeners are mobile and A

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tune into their station everywhere they go – on 7:00 a.m.: Twitter alert! radios, mobile phones, tablets and laptops. So ON AIR: Christina Guilloton presents Bruno & Co don’t just talk into the mike, but Twitter News on Bruno’s morning stay in contact with their audience on a range show – a review of tweets from Rihanna, Lady Gaga and other stars Fun Radio, Paris, of channels. While the music plays, presenters France  ONLINE: While Christina is on air engage with listeners on the Facebook page commenting on tweets from the Founded on 2 October 1987 in and the station’s Twitter account. The morn- stars, listeners can follow along on the south of France, Fun Radio the funradio.fr website where the was born during the golden ing’s highlights are streamed online on the pictures to match are posted online age of free radio. The station, Funradio.fr website, prompting listeners to which today is part of RTL’s react and comment. French radio family under “The digital media and Internet really the leadership of Christopher Baldelli, relies on a clever mix complement musical radio, because the new of music, friendly presenters, media and audio technology lets listeners have Web 2.0 communications and their radio with them at all times – and even proximity to listeners. In France, Fun Radio is aired on FM Radio. interact with the presenters,” explains Jérôme It is accessible throughout Fouqueray, Managing Director of Fun Radio, Europe via Astra 19.2° East and whose office is filled with sound, just like the “BRUNO worldwide via the Internet. studio. “It’s important that Fun Radio remain a For more information: trailblazer in this domain.” Twenty-one percent ON THE RADIO,” www.funradio.fr of listeners already receive Fun Radio in digital 6:00 a.m. – form on their computers, laptops or tablets – no other radio station in France can match this. 9:00 p.m. Moreover, Fun Radio was the country’s first Bruno Guillon is on the air station to hit a million followers on its Facebook page, which now has more than 1.4 million fans. Jérôme Fouqueray is more than a little proud of these results, especially since the competi- tion on the musical radio market has intensified 8:59 a.m.: considerably in the past few years. He feels the 7:35 a.m.: Lots of notes success of Fun Radio is due to clear positioning. Bruno, agent provocateur ON AIR: The studio phones haven’t stopped ringing. Fun ON AIR: Star Presenter Bruno Guillon “Fun Radio channels positive values: music and Radio is giving away concert tickets for Rihanna’s upcoming teases Justine Salmon, Presenter of the partying in a spirit of good humor and friend- tour! (above). Meanwhile, Julien consults the daily press to news headlines: “She’s gone and pinched prepare his Fake news (right) ship. The musical selection is equally clear: 50 a curtain from Versailles, and this morn- per cent dance, 50 per cent R ‘n’ B. We play ONLINE: Listeners can watch Rihanna’s latest video on the 7:43 a.m.: High-voltage tongue twister ing she’s wearing it as a scarf!” funradio.fr website and comment on the contest on Facebook tracks from the biggest stars of these musical ON AIR: On Elliot’s Challenge Presenter Elliot Chemlekh tests, ONLINE: While Justine reads the news in a somewhat unorthodox fashion, whether he can hold a 9V battery genres: Rihanna, David Guetta, Lady Gaga.” The and weather, Bruno engages with listen- on his tongue ers on Facebook. “I always respond to same goes outside the studio. Once a year, Fun ONLINE: Elliot’s wacky experiments are filmed and the videos are im- questions in person,” he says Radio organizes ‘Starfloor’, a concert event in mediately streamed to the funradio.fr website. During the show, Bruno Paris that attracts celebrities as well as the pub- “I always respond reads out comments posted on Facebook by listeners lic. Here, too, the digital network plays a major role: in France, Starfloor was one of the most to questions Jérôme Fouqueray, tweeted-about concerts of 2012. Managing Director of For the Managing Director, another key to Fun Radio  success lies in the proximity to, and contact in person” It was under the auspices of with, listeners – hence the importance of the Bruno Guillon, Presenter on Fun Radio Jérôme Fouqueray, in charge of the station since 2007, that interactive sequences in the morning sched- but there’s an even greater emphasis on direct put themselves at the service of the programs Fun Radio became one of ule. One of the most popular is Bruno paie vos contact and dialogue with listeners. The name of and the listeners”. The real star – and Jérôme the most popular music radio factures! (Bruno pays your bills!) Got an out-of- the program, ‘Open Antenna,’ sums up the ap- Fouqueray is well aware of this – is neither the stations among young people. Bruno Guillon, Presenter  Undoubtedly this is because control phone bill, need urgent repair work on through in the games, and the kidding around proach. The presenters talk to listeners about their music, nor the presenters, but the sum of the Born in 1971, Bruno always he places great importance on your car, or just want to take your girlfriend out are genuine, not artificial, and listeners pick up problems and worries. They get involved, and yet parts, in other words the whole program. wanted to become a radio pre- making the programs accessible for dinner? Get in touch with Bruno – he may be on that.” The same goes for La libre antenne de don’t get too serious. The main focus is usually on Accordingly, in between the main morning and senter. He worked for many years through new digital media. able to help you out. Karel (Karel’s Open Antenna), a very popular love life, relationship problems and issues around evening shows, the emphasis is mostly on music. at various radio stations and tele- Fouqueray considers Fun Radio vision companies. Since 2011 he a global brand. He has intro- But even the best of concepts can only work show that goes out during the week from 9 p.m. sexuality, with no holds barred on either side. So from 9 a.m. to 9 p.m. a series of DJs dominate has been presenting the morning duced it in Belgium, Slovakia if it is supported by charismatic presenters who to midnight. Even during this late time slot, Jérôme Fouqueray defines the role of the the airwaves. During this time, the programming program Bruno on the radio with and, more recently, in Spain. spread positive vibes in the studio and beyond. Fun Radio has a whole team of presenters in principal presenter with the same precision consists of mostly music with few interruptions. his long-term colleagues: Christina In addition, he was behind the Guilloton, Florian Gazan and Elliot development of the station’s “Bruno and the other presenters on the team place. The main presenter plays a director-style he uses to describe the musical programming Listeners mainly want to listen to talk shows in Chemlekh, even though, by his unique approach to music, with have known each other for a long time and are role, with each of the actors positioned around of Fun Radio: “I don’t want celebrity present- the morning and evening, when as many as seven own admission, he’s not really a its dance floor format. good friends,” explains Jérôme Fouqueray. the studio to make things as entertaining as pos- ers, with everything revolving around them, presenters can be in the studio at a time. 2 morning person… “The relaxed atmosphere, the wit that comes sible. The music line-up is similar to Bruno’s, but friendly and charismatic presenters who A

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“KAREL’S 9:46 p.m.: Wine tasting OPEN ANTENNA,” ON AIR: Presenter Jeff makes appreciative noises for the benefit of listeners while 9:00 p.m. – sampling the 2012 vintage of the Beaujolais nouveau according to the rules of the art of 12:00 a.m. wine tasting ONLINE: Presenter Sandra posts a link on Karel is on the air Facebook giving details of wine tasting courses offered by a school of oenology

11:59 p.m.: The night shift begins Karel, Sandra and the others are already in their jackets. As they present the final minutes of the phone-in show, DJ Dario (right) warms up at the decks. From midnight, he takes charge of the studio and heats up the airwaves for those who want to stay awake

9:52 p.m.: We’re back! “I love the ON AIR: The best moments of Karel’s Open Antenna are also filmed and streamed online – Jeff compares the great freedom Beaujolais to Red Bull… ONLINE: Listeners can visit the funradio.fr website to see the latest photos and videos, but also to catch up on any specials of engaging they might have missed over the last few weeks with listeners” Karel, Presenter on Fun Radio Karel, Presenter star of the phone-in show on Fun Radio  10:33 p.m.: Karel, problem solver Born in 1978, Karel knew from a very early age what he wanted 10:45 p.m.: to do later in life. From the age Boozy and bluesy of 16, he wanted to become ON AIR: Karel at your service a presenter....on a Fun Radio is the most popular segment phone-in show called “libre on Thursday evening. Karel gets antenne.” He started as an intern stuck into listener’s problems before becoming a presenter (above). Today: Nalia wants to and DJ for various Fun Radio negotiate with her parents over programs. By 2010, his childhood a piercing. How should she go dream had finally came true: about it? Karel was appointed lead pre- Tony, Co-Presenter of the senter of the phone-in show. program, asks his sound engineer Jérôme to step up to the mike. Fuelled by the Beaujolais, Mike sings some French hits that lis- teners are supposed to recognize ONLINE: Tony posts a picture of 10:17 p.m.: Mini tournament on Facebook Jérôme as a Beaujolais drinker, 11:08 p.m.: Relationship troubles in a Basque beret and a striped Sandra points out the evening’s hottest topic on the Facebook page: The question ON AIR: Producer Lilou attempts to manage the flood of calls hitting the sweater (left). 215 people ‘like’ of how Karel’s Open Antenna should celebrate its 300,000th Facebook fan prompted station towards the end of this show. When the presenter Karel comes on this. Tony replies to comments a flood of responses. In a matter of minutes, more than 350 ideas were posted, to discuss relationship problems from 11 p.m. on, the lines are saturated. from listeners from ‘Champagne for all the fans’ to ‘A 24-hour phone-in show’! 457 people ‘like’ this This evening the topic is morals and fleeting affairs, and apparently a lot of listeners want to put in their two cents’ worth... A

ENGL_ERLEBEN_52-59_Radio.indd 56 02.04.13 10:55 ENGL_ERLEBEN_52-59_Radio.indd 57 02.04.13 10:55 58 Radio & Music 59 Radio &

Music at a glance

A success – on air and beyond RTL Group has been writing the history of radio since the 1920s. In return, through the management of their royalties, many artists all over the world put their faith in another Bertelsmann subsidiary: BMG

After several restructurings, BMG Rights Manage- ment was founded in 2008 and is the only music It all started with RTL Group/Radio major born in the digital age. Radio Luxembourg ... RTL Group’s radio stations reach millions After more than 30 million albums sold, Bryan Scorpions The roots of RTL Group reach back to of listeners each day. The company’s Ferry clearly has no fear of financial hardship. But for They sang about the Winds of Change – and, with 1924, the year when radio enthusiast flagship radio station is RTL in France, many other artists, BMG’s rights management ser- more than 100 million records sold, are one of the François Anen started broadcasting and it also owns or has interests in sta- vices are essential, because these days hardly anyone most successful groups in music history regularly from his attic. This station tions in Germany (for example 104.6 RTL, can live off album sales alone. operated in 1925 under the name Antenne Bayern), Belgium (Bel RTL, Radio BMG Stars: However, artists no longer necessarily need a Association Radio Luxembourg and Contact), Spain (Onda Cero, Europa FM) David Garrett  traditional recording company: They can profitably Bryan Ferry then became the Compagnie Luxem- and Luxembourg (RTL Radio Lëtzebuerg). Not only can he play a produce music at home, market themselves via social BMG markets the ma- bourgeoise de Radiodiffusion (CLR). More:→ Stradivarius – in the fall of Songs of value - platforms and digitally distribute their songs directly. jority of Bryan Ferry’s www.rtl.fr • www.104.6rtl.de • www.belrtl.be 2012 he starred in the movie Using the most powerful transmitter in songs. The 67-year-old www.radio.rtl.lu Paganini – der Teufelsgeiger BMG Rights Management What has become more complicated, however, is the Europe, in 1933 CLR started to broadcast Briton has been in the www.bertelsmann-erleben.de/radio (Paganini – the Devil’s Fid- invoicing for these many sales channels. business more than a unique program in several languages dler). In 2009 David Garrett The music industry is changing. In the BMG eliminates the separation between music 40 years and has just using the same frequency. Radio Lux- signed a contract with BMG digital age of online streaming and down- publisher and record label that has been the norm, released a new jazz Rights Management. embourg soon became established BMG and offers comprehensive music rights management album load portals, you cannot earn money with as Europe’s leading commercial radio BMG owns the rights to over a million for the digital age. Not only does this give the artist live performances and merchandising station. In the 1950s the English service songs, making Bertelsmann’s music a higher percentage of revenue, but also, as Bryan only. BMG Rights Management represents on 208m medium wave, ‘Station of the rights business the global No.4 in Ferry stresses, “I’ve always liked to be hands-on Bruno Mars Stars,’ set the latest trends and became the industry – and the biggest rights the rights of countless international with every aspect of the release.” The BMG contract The Hawaiian R’n’B very popular. In 1957 a daily German- manager not tied to a label. With the stars, from Bruno Mars to ZZ Top. But ensures him this. singer (Grenade, Just the Way You Are), language program went on the air under purchase of the independent music what exactly does that mean? The music business of the 21st century is complex also relies on BMG the name Radio Luxemburg. It would publishers Chrysalis and Bug Music, and multilayered: Every time a song is played, royal- Text: Jan Drees Rights Management expand over the years and win over BMG acquired the rights to such time- ties flow. The whole world of media is permeated with to represent him as German audiences with star presenters less hits as Summer in the City and music. Even telephone ring tones can be purchased. a songwriter (credits include Cee Lo Green) including Camillo Felgen, Frank Elstner, What a Wonderful World. Artists such In fall 2012, the British musician Bryan Ferry joined When a CD or MP3 track is sold in the real or virtual Helga Guitton and Thomas Gottschalk. as Yusuf Islam (Cat Stevens), Bruno the new BMG. The Bertelsmann subsidiary will store, when music is played on the radio or artists The success of its internationally Mars, will.i.am and Kings of Leon all publish his next three albums, and Roxy Music’s perform live, royalties are generated. Music is also an Nena oriented radio programs enabled RTL count on BMG. frontman is also entrusting the administration of essential component of all movie and television films, Group to write an important chapter in 99 Luftballons and More:→ his existing catalog of songs to the music rights radio and TV commercials, video games, websites and at least 99 broadcasting history in Europe with its www.bmg.com management company. and online streaming services. No media format can other songs by the rock RTL brand. The idea is to exploit his catalog of music rights, do without it nowadays. Music rights are licensed to singer Nena are pub- alongside about a million other songs and recordings permit music to be used, and the artists involved are lished by BMG Rights Management, and her that BMG now administers. As the fourth-largest remunerated accordingly. BMG administers, exploits new albums released music publisher in the world, BMG ensures that the and actively shapes this process, keeps close relations under the BMG Masters songs are administered, exploited and popularized, with partners in the international advertising and film Model for example by licensing them for commercials, TV industry, and helps find the right song for a product series and video games. or a movie and licenses it directly. Gossip The music business in 2012 has little in common BMG handles this around the world. Gossip features the with the music business of 1972, the year the first Bryan Ferry’s first BMG album was released on 26 sublime singer Beth Roxy Music album was released with Bryan Ferry. November 2012. It’s called Jazz Age and is a tribute Ditto, who has caused plenty of gossip herself, And because so much has changed, companies in to the Roaring Twenties, a time when MP3, video most recently after Karl today’s music business must work very differently as games and online streaming services were not even Lagerfeld described well. Bertelsmann has been in the music business for visible – let alone audible – on the horizon. her as his fashion more than 50 years, since the founding of the Ariola inspiration label in 1959. More:→www.bmg.com

ENGL_ERLEBEN_52-59_Radio.indd 58 02.04.13 10:56 ENGL_ERLEBEN_52-59_Radio.indd 59 02.04.13 17:24 60 Services 61 Services A Six- Letter Word for Global Business: Arvato Originally founded as a printing company, the company now does business in a wide range of areas, and is constantly changing and evolving. As an integrated service provider Arvato provides its clients with bespoke solutions that help them successfully manage their customer relationships Text: Thomas Röbke. Photos: Enno Kapitza

n IT professional in Montreal wishes to deepen his knowledge of database administration. In Sao Paulo a computer course is starting. A web designer in Tokyo is designing a mobile app for smartphones. Angelika Diekmann is involved in all of it. Diekmann takes a dozen bright blue textbooks from the metal Ashelf and places them into a shipping box. The spry Arvato employ- ee looks at the packing note to make sure that the right books end up in the right box. “Sometimes I do think about where the A

ENGL_ERLEBEN_60-67_Arvato.indd 60 28.03.13 13:07 ENGL_ERLEBEN_60-67_Arvato.indd 61 28.03.13 13:07 62 Services 63

Dozens of Microsoft authors are constantly 1 writing new computer textbooks

The IT sector is constantly evolving – freelance writers around the world, such as Melanie Gass, Chris Givens, Neil Tucker, Margaret Teague, Ron Davis (clockwise from the left) and em- ployees from Microsoft’s headquarters in Redmond, WA supply the necessary training material. The text files are 2 converted into digital formats

The Arvato Conversion Team led by Christiane Krone and Martin Mühl creates digital versions from the originals that are not subject to a fixed page structure and are therefore suitable for e-books. Each of the 3 2,000 computer training courses can be printed as a book within 24 hours

books are going to be unpacked, who will read expert, this is an unthinkable number. Only some Korte: “This enables the user to change the font them, and what they are going to do with their of the authors work exclusively for Microsoft; size, underline text and paste notes – and decide “Print on Demand” is the “Printed books name of the process that new knowledge,” she says, smiling, and briefly there are also freelance writers – experts from whether these will remain private or to be visible Markus Weber and Carl glances at a label bearing a South African address all around the world. Some titles are so special- to others.” Arvato has also developed special Stewart (above) use to before filling the next box. “Especially when they are still the main ized that they sell only a few hundred copies software for e-readers: A program called skillpipe produce Arvato books Arvato  from each file at the Media are headed to faraway destinations. It would be worldwide per year, so they are produced using enables interactive, location-independent learn- Factory: individually, as 63,818 people work for Arvato nice to fly away with them sometimes.” You can a print-on-demand process at Arvato sites in ing and quick updates. Most people still learn in almost 40 countries. Some business, but ordered, each 100 to 900 examples: VVA – Arvato Media tell that she’s quite proud that this knowledge Herzebrock-Clarholz, Valencia (USA) and Singa- in the traditional way – collectively in the class- pages long. GmbH supplies books, CDs, for computer scientists all over the world passes pore. This means that when an order arrives, the room – but skillpipe’s potential is enormous. It magazines, games, paper, office through her hands. the trend is desired number of copies of the book is produced offers a range of convenient and useful features supplies and stationery to over 200 publishers. The fully For most people, the name Microsoft imme- on a special printer, bound and prepared for on virtually all major devices and systems, and automated high-bay warehouse diately brings to mind the world’s leading word clearly towards shipment –the order leaves the production hall now on mobile devices like tablets, too. in Gütersloh alone can accom- processing program “Word,” “Excel” spread- no later than 48 hours after the order is received. The world’s largest software manufacturer has modate 70 million individual sheets, and the “PowerPoint” program, which The main customers are Microsoft’s certi- a long tradition of relying on the expertise of the items in 60,000 pallet slots. Arvato is behind Lufthansa’s has become indispensible for presentations at e-books” fied training centers around the world: “They Gütersloh firm. For more than 14 years, Arvato companies and universities. Yet these are just the order the books at the last minute, that is, once has supplied training materials to Microsoft “Miles & More” program, Shell’s Paul Korte, Business Development Manager pan-European “Club Smart” three most popular programs among hundreds the number of participants is finalized. Then the certified training providers in Europe, the Middle customer loyalty program, and that the software giant from Redmond, Wash- books need to get to them as soon as possible,” East, Africa, Asia and the Pacific. Arvato handles also works for France’s leading providers of energy services. ington has developed. Programs that are often says Paul Korte, Business Development Manager everything from processing online orders to pro- Arvato produces the television known only to specialists are the ones that keep at Arvato. “At this point, printed books are still duction, finance, logistics and customer services. supplement “rtv,” invoices clicks computer systems around the world running. InterDev, and of course the wide field of servers. the main business, but the trend is clearly to- In January 2012 this partnership was expanded to on the ads next to the search results for a leading search Students and IT professionals at companies, In short, for almost everything you can do with a wards e-books.” 350 titles are currently available North and South America, taking the cooperation engine provider, and organizes educational establishments and institutions use computer, there is specialized software from Mi- in digital as well as print. The Conversion Team is global. logistics and customer com- textbooks to master the Microsoft programs, crosoft - and the corresponding official Microsoft working hard to increase this number. The contract also includes the construction munications for major mobile adapt them for their own purposes, and make courseware textbooks, which are produced and Arvato IT specialists on this team convert of a platform for digital textbooks in the e-Pub communications providers in Europe and Asia. optimal use of them. The programs include distributed by Arvato. the book files they receive from Microsoft in format, as well as the setup and management operating systems as well as developer software, The total range encompasses about 2,000 dif- the United States into an electronic format that of a “publishing community,” where registered such as Visual Basic, Visual Studio and Visual ferent titles. For someone who is not a computer doesn’t depend on any fixed page layout. Paul authors can post self-created content. A

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The newly printed books are Customers make payments from 4 packaged and addressed 5 186 countries, in 23 currencies

The staff at Arvato’s Finance Center handles the receipt of funds, Angelika Diekmann (above) and her colleagues in taking into account various methods of payment, bank charges Picking & Packing send the newly printed courseware and exchange rate fluctuations. textbooks all over the world. They forward as many as 2,000 packages a week to the transport company.

Arvato has also built a closed online shop at a speed of 60 meters per minute, consuming system for printed and electronic manuals, two or three 12-kilometer long rolls of paper per “Sometimes I do think about through which all orders are received. It is the day – each of which is enough to produce 42,000 only one of its kind in the world that lets users printed pages. The software allows for prioritizing choose between seven languages and make pay- individual print jobs, which is important for the where the books are going ments from 186 countries in 23 currencies. The 24-hour express service. prices depend on the strength of the country’s After a few minutes, individual pages of and who will read them” Courseware economy, so that in South Africa, for example, several books are neatly stacked at the end of the Angelika Diekmann, Media Factory Picking unit they are lower than in Germany. Another special printing line. Carl Stewart ticks off which books Some of the 2,000 courses in the Microsoft courseware series feature is that trainers aren’t limited to the are “done” on his list, places them in boxes and are so specialized that only a courses – they can compile their own individual drives them in a lift truck to Dominik Schmenk few hundred copies are ordered textbooks by combining chapters from different next door, who stands at a hot glue machine per year. That is why they are only printed when ordered, in books. and attaches the pages to their respective covers a print-on-demand process. In The print-on-demand orders arrive on Markus by hand, book by book. Schmenk’s shift began calmly and pushes a cart with ready-bound large numbers – which are produced in offset and this way, essential expertise is Weber’s computer. New order data is transferred at 06:30 a.m. with the printing of the delivery books to the cutting machine, which aligns all delivered on pallets. Each week, 1,500 to 2,000 made available in the shortest to the print server 24/7. “Every morning is excit- notes, which were picked up at 07:00 a.m. He the edges. Then each book passes through a kind packages of manuals begin their journey out into possible time. In the online shop, customized textbooks can ing,” says Weber, “because I don’t know how then printed out the colored book covers on a of oven where it is wrapped in protective foil. the world in this hall. also be compiled from various much there is to do until I run the program.” In special printer. As all standard courses have the Next, it travels through the warehouse contain- So while the transport services are now chapters of different titles. The the core working hours from 6:00 a.m. to 2:00 same blue motif on the front and differ only in ing the paper supplies for the next two to three responsible for delivering the course material skillpipe application makes all the content available in p.m, eight employees work to produce an average their numbers, he cannot allow his concentra- days, to Angelika Diekmann and her colleagues on time, the Arvato Finance Center staff works electronic form. 600 books a day, each 100 to 900 pages thick – tion to flag. Says Weber: “There is a course 6234 in the shipping department. They are in charge to ensure that the bills are paid – and above all, and with the hefty ones clearly dominating. The and a course 6324 - a brief lapse of attention, and of packing not only the output from the digital how they are paid, because different methods of paper webs run through the high-tech printer you’ve got a mistake.” Schmenk hears this, smiles printer, but also the books that are required in payment and the associated bank charges A

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Services at a glance

Service around the world From printing company to customer communications, financial services, digitization and trade, to global logistics company: Arvato is synonymous with “global business” and a range of services that is probably unique in its breadth

More than 63,000 people work for Arvato in nearly 40 countries – doing everything from creating printed material to data management, customer services, financial services and IT. The Arvato Systems data center is one of the most state-of-the-art and secure in Germany. 3,600 servers are housed on 5,000 square meters – the size of a soccer field – Phone support for customers Manuals reach the user either add to that 1,700 application and Web servers, 1,700 databases, and 6 around the world 7 online or in printed form 530 SAP systems. Storage capacity: 915 terabytes, plus 2.7 petabytes of storage capacity for backups. Arvato’s service centers are always willing to Students receive their textbooks in time for listen to the questions Microsoft customers have the start of the new seminar. An ever-increasing about the software giant’s products. The service share of these are e-books. The skillpipe 500,000 ... center staff provide quick and competent advice. application developed by Arvato allows students ... original recordings from nearly 100 years of music history are archived and to learn individually, even outside the group. digitized by Arvato for its customer Universal Music Group International (UMGI). Arvato is responsible for operating and maintaining UMGI’s entire central media archive.

100 million mobile phones … “When I power up the ... were delivered by Arvato to customers in China over the past three years. With nearly 60 locations across the country, which have a combined storage computer in the morning, I never area of over 65,000 square meters, the company’s own distribution network know what awaits me” covers almost every Chinese province. Markus Weber, Media Factory Manager Arvato generated revenues … ... of €4,449 million in 2012. The strategy of offering integrated service chains in all segments helped the company improve its market position in key growth markets and industries. Arvato won numerous major new clients must be taken into account as well as currency employee deals with eight to ten calls per hour and expanded its business with existing customers. The company saw strong fluctuations. Patrick Skaliks has to keep a vigi- on average - and documents them for Microsoft growth in China, where it further expanded its nationwide logistics network. lant eye on the international currency markets. in a special input mask, so that the software Business was expanded in India, while in South America developments Microsoft also entrusts its worldwide giant is kept up to date about the most common included the establishment of new service centers for major customers in the customer support to the Gütersloh-based customer requests in real-time. The call center telecommunications and Internet industries. service provider: The Microsoft courseware is in the Polish port city was a success story from Selected Arvato clients: one of five software programs handled by the the start, says Tepper, “because we were able Arvato service centers. The latest such cen- to recruit quadri-lingual staff here as well.” For ter was founded in 2007 in Szczecin, where example, in Szczecin an employee from Mozam- 47 employees answer customer inquiries in bique may right now be answering a Brazilian seven languages; nine of them specialize in the customer’s questions in Portuguese – manuals. “Typical questions are ‘What books while the customer is holding a textbook that are needed for which certificates,’ ‘I can’t find has been sent to Brazil by Angelika Diekmann in More:→ my access data’ or ‘I need help looking for Herzebrock-Clarholz. 2 www.arvato.de a particular title,’” says Karin Tepper. Each

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“We want to become more digital and more international” Thomas Rabe has been Chairman and CEO of Bertelsmann since January 2012. A conversation about continuity, change and Bertelsmann’s strategy Interview: Ulrich Lünstroth Thomas Rabe Chairman and CEO Bertelsmann r. Rabe, how can a company like Bertelsmann, with 100,000 employees and hundreds of business locations in Mmore than 50 countries, be concisely described? THOMAS RABE: I think that three aspects are particularly impor- tant: First, we are Europe’s largest media and services com- pany, with leading market positions in the TV, book, magazine, “Content selection services, and print sectors. Second, our business activities are based on a corporate culture that has developed over 175 years and was heavily influenced by Reinhard Mohn, the visionary has never been as entrepreneur, who was the founder of the modern Bertelsmann. And third, it’s important to know that Bertelsmann is currently diverse or readily undergoing a process of transformation from which it will emerge as a faster-growing, more digital, and more interna- tional company. available as it is today” You mentioned that Bertelsmann owns a number of very different Thomas Rabe, Chairman and CEO of Bertelsmann businesses. How did this portfolio evolve? A

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Dr. Thomas Rabe Chairman and CEO of Bertelsmann  “Without freedom, Thomas Rabe was born in 1965 in Luxembourg. The son of an no good ideas can EU official, he was raised in Brussels, where he graduated from the École Européenne arise. And without secondary school. Rabe speaks five languages, and until 1989 studied business administra- tion at RWTH Aachen and the good ideas, there is University of Cologne, then obtained a doctorate at Cologne in 1995. He went on to work no good content” at the European Commission’s Thomas Rabe, Chairman and CEO Directorate-General for Finan- of Bertelsmann cial Institutions and Corporate Law in Brussels, and joined the international law firm Forrester Norall & Sutton (now White & Case) in 1990. In 1991 he left to join the state privatization agency Treuhandanstalt in The history of Bertelsmann is an interplay format that works in Germany is not auto- are born not only within large corpora- focused too much on Europe, tradi- Creative content and quality services Berlin. From 1996 to 2000 Rabe of continuity and change. After World War matically going to be a success in France, tions, but also on YouTube, blogs, and tional media markets, and sometimes on will continue to be the core of our value worked at the listed company II, Reinhard Mohn used the success of the U.K., or China. Local management through self-publishing. What role do structurally declining businesses. Second, creation. We will invest as much as we Clearstream, where he was ap- pointed Chief Financial Officer the “Lesering” (Reading Circle) to lay the teams who best understand the realities media companies still play in the face of we see that our business environment can in their curation and production, and in 1998. He has worked for the foundations for Bertelsmann’s gradual of “their” markets and the needs of “their” these changes? is changing faster than ever, driven by campaign for the protection of intellectual Bertelsmann Group since 2000, expansion into many new lines of busi- customers, are therefore a key to the suc- I am positive that the media industry megatrends such as digitization, or the property. But above all, we want to create first as Chief Financial Officer ness – from books to music, magazines and cess of our business. will continue to play a big role in enter- growing global demand for education and a culture within the company that allows for RTL Group, Luxembourg (from 2003 also head of the television – in the decades that followed. So this is an aspect of the continuity you tainment and information. Thanks to outsourcing. We want to take advantage our colleagues to nurture this creative Corporate Center), and since Bertelsmann simultaneously began to offer mentioned just now? digitization, content selection has never of the opportunities that arise from this capital of Bertelsmann: by linking the January 2006 as CFO and Head many of its internal processes and services Strictly speaking, it’s literally a part of our been as diverse or readily available– and for us. resources of a global media and services of the Corporate Center at Bertelsmann AG in Gütersloh, to external customers – and that’s how our corporate culture. As early as the 1950s, competitive – as it is today. But let’s stick What would such a transformation look group with the benefits of creative and and Head of Bertelsmann Music service businesses developed, which are Reinhard Mohn thought about how a to the example of “Fifty Shades.” Its great like? entrepreneurial autonomy and freedom. Group until 2008. Rabe has now subsumed under Arvato. company should be set up to best deal success has underscored that to turn a First, it is a medium-term process – we’re Without freedom, no good ideas can arise. served as Chairman & CEO of And the group’s expansion abroad ...? with growth and increasing complexity. In good book into a bestseller requires expe- talking about a timeline of about five to And without good ideas, there is no good Bertelsmann SE & Co. KGaA since January 2012. ... was mainly associated with the expan- addition to leadership through partner- rienced editorial support, wide-ranging ten years. During this time we will focus content. sion into new lines of business. Reinhard ship, the delegation of responsibility was marketing expertise, extensive distribu- on four strategic thrusts: strengthen- As CEO do you ever have an opportunity to Mohn’s first international venture was in particularly important to him. This is why tion capabilities, unwavering financial ing our core, digital transformation, the engage with this content yourself? 1962 with Spain’s “Circulo de Lectores.” executives at Bertelsmann enjoy a high commitment, and many other skills and development of growth platforms, and Fortunately, yes! Because many of the The fact that we can draw on more than degree of entrepreneurial freedom. I’m resources. These functions continue to be regional growth in the emerging econo- musicians and authors who are under half a century of experience abroad is an firmly convinced that in an industry that essential for success in the digital age, and mies of China, India, and Brazil. We can contract at BMG and Random House, are immense advantage in the age of global- thrives on creativity and ideas, this is the no one can deliver them as masterfully as build on strong foundations, as we have among my favorites, like Coldplay, Kings ization. only way it can work. Incidentally, this a “classic” media company. access to premium content and services, of Leon, and Jonathan Franzen. 2 How so? principle applies to our authors, journal- Where do you see still the biggest chal- and therefore to a valuable commodity for The media business is a local business in ists, and artists, as well as our entrepre- lenges for your company? the digital world. many ways. Although there will always neurs. It is the basic precondition for a Our strategy is based on two main How will you ensure that this commodity be the occasional global bestseller – like diverse and pluralistic media offering. goals: First, we are working to improve doesn’t fall by the wayside during your the “Fifty Shades” trilogy in 2012 – a TV In the digital age, creativity and new ideas our growth profile. Until now, we have transformation?

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Every day … … 1.3 million people all over the world buy Random House books, audiobooks and Tradition and Future e-books. What are the roots of today’s global corporation? How many employees … 166 million customers in Germany worldwide work for what lines of business? What are their respective revenues? And how many people use the company’s products and services every day? alone come into contact with services provided by Arvato.

ertelsmann stands for more than – Gruner + Jahr, with over 500 maga- … an RTL Group TV or radio program is 175 years of entrepreneurship. zines and digital offerings in more than The roots of the global group 30 countries, date back to the year 1835, when – Arvato, an international provider switched on 145 million times. Carl Bertelsmann, a Gütersloh of integrated, bespoke service solutions Bprinter and bookbinder, founded C. along the entire value chain, and Bertelsmann Verlag. Five generations – Be Printers, which bundles the … readers in over 30 countries can choose later, Reinhard Mohn, who died in 2009, Group’s gravure activities in Germany, the brought his foresight and business prow- U.K. and Southern Europe, and the offset ess to turning it into a company that now printers in Southern Europe, the U.S. and among 500 different media offerings. ranks among the top international media Colombia. houses: with the 1958 founding of the Ariola music label, the 1969 participation So Bertelsmann comprises one of in Gruner + Jahr, the 1984 acquisition of a Europe’s largest magazine and news- stake in the TV station RTL, and the 1998 paper publishers as well as the world’s purchase of Random House. largest trade book publishing group. Doing business as Bertelsmann SE & Bertelsmann’s revenue sources are widely Co. KGaA, Bertelsmann is a leading in- diversified both in terms of geography and ternational media and services company business segments. They lie in the sale of with more than 100,000 employees, that Reinhard and Liz Mohn products and goods, advertising and ads, offers media content and operates pro- services, rights and licenses. The Group’s duction and services businesses in about geographic core source markets are West- 50 countries around the world. In the 2012 “We must find ern Europe – especially Germany, France, business year, the company generated Great Britain, Spain – and the United revenues of 16.1 billion euros and Group States. Each day, its products reach mil- More than 100,000 employees worldwide profit of 619 million euros. the courage lions of people of different ages and from Bertelsmann has five divisions: across all social strata. to define new The goal: to shape the future of media Revenues of 16.1 billion euros – RTL Group with 53 television channels and services, in more than 50 countries. and 28 radio stations in nine countries, goals!” Then as now – with entrepreneurial spirit and nearly 400 self-produced TV formats and creativity. 2 worldwide, Reinhard Mohn – Random House with 200 editorially independent book publishers in 15 coun- tries, and 10,000 new releases and 400 11,931 employees 5,712 employees 11,585 employees 63,818 employees 6,380 employees million books, audiobooks and e-books Revenues 6.00 billion* Revenues 2.14 billion Revenues 2.22 billion Revenues 4.45 billion Revenues 1.17 billion sold per year, *in euros in 2012

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Publishing credits More information

Publisher  You will find more glimpses of the multifaceted world of Bertelsmann Bertelsmann SE & Co. KGaA products and services on a variety of online offerings, including the Corporate Communications Bertelsmann website, the “Experience Bertelsmann!” app, the Annual Carl-Bertelsmann-Strasse 270 Report, and the “Create Your Own Career” career portal, as well as on D-33311 Gütersloh Facebook, Twitter and YouTube Responsible: Karin Schlautmann, Executive Vice President Corporate Communications

Project management  Ulrich Lünstroth

Editorial  Tanja Breukelchen (editing and coordination), Johanna Gerstner (translation), Thomas Röbke (editing, final editing), Sira Schmidt, Katja Steiner (English proofreading), Johannes Taubert (text editor), Lara Wagner (translation, English proofreading), Bertelsmann website Bertelsmann Annual Report  The Bertelsmann website offers a comprehen- The report provides a clear overview of the 2012 Art direction and design  sive and evocative presentation of the media financial year. In addition to the management, Dirk Bartos, group – its structures, divisions, products, and Bertelsmann presents a retrospective of the BartosKersten Printmediendesign, Hamburg services. The site is also a good destination year’s highlights from the various divisions and for those who want to learn about the latest the consolidated financial statements. Each History  Bertelsmann-related business transactions, division’s financial and assets position is also news, facts and figures. → shown. Tanja Breukelchen, Anna Butterbrod, Jan Drees, www.bertelsmann.de The report is available in printed form and Andrea Freund, Katja Guttmann, Steffi Kammerer, as a free app. → Thomas Röbke, Olaf Tarmas www.bertelsmann.de/Presse/ Geschäftsberichte.html Photographers  Jürgen Frank, Odile Hain, Bernd Jonkmanns, Enno Kapitza, Sebastian Pfütze, Arne Weychardt

Lithography  4mat media, Hamburg

Print  MohnMedia, Gütersloh

Experience Bertelsmann! Create Your Own Career An attractive, entertaining presentation of As a global media company with more than the full spectrum of Bertelsmann’s creative 100,000 employees, Bertelsmann is a top products and services. A colorful bouquet of employer in Germany and internationally. The Photo credits  reading samples, live radio streams, and videos “Create Your Own Career” portal features the Cover: RTL Aktuell, Getty, J. Frank, A. Weychardt, from the media group, along with portraits of latest job openings, events and news related B. Jonkmanns, S. Pfütze, O. Hain, E. Kapitza. Bertelsmann employees – available online to work and careers at Bertelsmann. → Page 4/5: RTL Aktuell, InterTopics, J. Frank, and as an app. → www.createyourowncareer.de A. Weychardt, B. Jonkmanns, S. Pfütze, O. Hain, www.bertelsmann-erleben.de E. Kapitza. Page 6, 12: RTL Aktuell. Page 14: Pic- ture Press. Page 16: InterTopics. Page 17: Corbis, Getty. Page 18/19: A-way, ddp, DeFodi.de, Gnoni- Press, Studio X, M6, Cecilie Rogue/M6. Page 20:  Marie Etchegoyen/M6, RTL/Stephan Pick. Page Social Networks 21: RTL. Page 29: Interfoto, ddp (2). Page 30: ddp, As a global player, Bertelsmann also has a presence on the social Face-to-face, Look, Getty, Laif, Michael Schwer- networks. Entertaining information about the Group can be found berger. Page 58: BMG, AP, mauritius-images, on Facebook and YouTube, for instance, while the Twitter channel Ullstein Bild, Sony Music, billa-cakes.blogspot.com. “bertelsmann_com” lets users stay abreast of the news with short Page 60: Fotolia (1). Page 62: Private (5). Page message updates. → 67: Fotolia (1). Page 68/69: Bertelsmann (6), www.facebook.com/Bertelsmann RTL (1). Page 70/71: FAZ/Daniel Pilar. Page 72: www.twitter.com/bertelsmann_com Bertelsmann Stiftung www.youtube.com/bertelsmann

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Radio & Music

Shows

Television

Magazines Books

Digital Services

Bertelsmann SE & Co. KGaA Carl-Bertelsmann-Strasse 270 International D-33311 Gütersloh

www.bertelsmann.de

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