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The Changing Broadcast Media Market in Germany

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The Changing Broadcast Media Market in Germany University of Montana ScholarWorks at University of Montana Graduate Student Theses, Dissertations, & Professional Papers Graduate School 1995 The changing broadcast media market in Germany Udo Fluck The University of Montana Follow this and additional works at: https://scholarworks.umt.edu/etd Let us know how access to this document benefits ou.y Recommended Citation Fluck, Udo, "The changing broadcast media market in Germany" (1995). Graduate Student Theses, Dissertations, & Professional Papers. 7973. https://scholarworks.umt.edu/etd/7973 This Thesis is brought to you for free and open access by the Graduate School at ScholarWorks at University of Montana. It has been accepted for inclusion in Graduate Student Theses, Dissertations, & Professional Papers by an authorized administrator of ScholarWorks at University of Montana. For more information, please contact [email protected]. Maureen and Mike MANSFIELD LIBRARY The University ofMONTANA Permission is granted by the author to reproduce this material in its entirety, provided that this material is used for scholarly purposes and is properly cited in published works and reports. ** Please check "Yes" or "No" and provide signature ** Yes, I grant permission ^ N o, I do not grant permission Author's Signature u <y Date /A V L A Any copying for commercial purposes or financial gain may be undertaken only with the author's explicit consent. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. THE CHANGING BROADCAST MEDIA MARKET IN GERMANY By Udo Fluck Bachelor of Arts in Radio / Television The University of Montana 1993 Presented in partial fulfillment of the requirements for the degree of Master of Interdisciplinary Studies The University of Montana 1995 Approved by // ... Dr. Nader H. Shooshtari Chairman, Graduate Committee Raymond C Murray Dean, Graduate School Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. UMI Number: EP38774 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these wilt be noted. Also, if material had to be removed, a note will indicate the deletion. UMI Dia»e^tion Publish^ UMI EP38774 Published by ProOuest LLC (2013). Copyright in the Dissertation held by the Author. Microform Edition © ProOuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code ProQuesf ProOuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 4 8 1 0 6 -1 3 4 6 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. 1' Fluck, Udo M I S. May 1995 Interdisciplinary Studies School of Business Administration School of Fine Arts The Changing Broadcast Media Market In Germany Director: Dr. Nader H. Shooshtari ^ ‘ ^ ^ . The continuous growth of privately owned and operated television stations drastically changed the broadcast media market in Germany during the last decade. Since the mid- 1980’s, the commercial television industry, consisting of privately owned and operated television stations, not only experienced tremendous growth in the number of emerging stations, but also in emerging financial power. As a result, the two govemmentally subsidized television networks A.R.D. and Z.D.F., founded in the early 1960’s, experienced significant losses in advertising revenue, market share and viewer interest. From 1960 until the mid-1980’s, the German television system constituted a monopoly financed by the German government. However, the monopoly status of A.R.D. and Z.D.F. ended in the mid-1980 s, when SAT. 1, envisioned as a business opportunity in the German broadcast industry, became the first commercial, privately owned and operated television station. The financial success of the new station not only opened the market to the competition, but also created a trend that changed the German broadcast industry forever. During recent years more and more viewers switched to the various private charmels from A.R.D. and Z.D.F. The main reason for the commercial station’s popularity is the diverse programming and the targeting of different audiences. Consequently, audience and market share of the private stations increased over the years, securing a stronger position for many private stations in Germany. This growth development made the privately owned and operated TV stations the main competitors to the public service broadcast networks in Germany. In 1995 the existing private market is still expanding their programming and operation facilities with high revenue earnings from advertising and new television channels. The once dominate public service rivals are downsizing many areas of their operations in order to reduce costs and stay in service. However, through the increase in programming and production prices it has become more difficult for A.R.D. and Z.D.F. to effectively compete with the financially stronger commercial television providers. The future of A.R.D. and Z.D.F. looks all but promising. ii Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ACKNOWLEDGMENTS I wish to thank the Chairman of the Graduate Committee, Dr. Nader H. Shooshtari for his help and direction in executing this paper. Furthermore, I would also like to thank Dr. Maureen Fleming from the School of Business and Mr. Bill Raoul from the Department of Drama / Dance for their advice and inspiration throughout the creative working process of this study. Ill Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. For my parents Werner and Margit Fiuck who have continuously supported me as an individual, as well as in my studies and who have taught me the importance of following my star in order to find the glorious harbor of lights. Thank you for being the best support system there is. Your love is my strength. IV Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. TABLE OF CONTENTS: PAGE: LIST OF TABLES........................................................................................................ vii LIST OF COLUMN CHARTS....................................................................................vii LIST OF PIE CHARTS................................................................................................ vii CHAPTER: Introduction........................................................................................... 02 The Purpose of the Paper .......................................................... 03 Contribution of the Paper..........................................................04 Research Methods ......................................................................04 Television stations selected in this study.............................. 05 Television stations eliminated from this study.................... 05 Definition of Terms................................................................... 06 H. History And Development Of The German Broadcast Market.................................................................08 The Broadcast History...............................................................09 The Formation of the Broadcast Policy....................................10 The Formation of Public Service Television Stations.............10 Legal Limitations and Restrictions...........................................12 Governmental Subsidies............................................................ 13 The Budget of the Z.D.F............................................................15 Z.D.F. Expanding into New Market Areas.............................. 17 Joined Broadcast and Production Projects of the Z.D.F 19 Z.D.F. Program Sales to other Private Competitors............... 21 Z.D.F. and TV Merchandising..................................................22 (cont.) Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. in . The Changes In The German Media Market..................................24 The Increase in Commercial TV Stations............................... 26 The Three Major Private TV Stations......................................27 The Expanding Fiber Optic Cable Market.............................. 30 The Expanding Satellite Market...............................................31 The Changes in the German Society........................................34 Foreign Influence from Outside Germany............................. 34 Foreign Influence Within Germany..........................................36 The Changes in the German Viewer........................................ 38 IV. The Programming Of Z.D.F. In Comparison To The Private Television Stations................................................... 40 Program Variety at any Cost.....................................................41 From Program Variety to Mainstream.....................................42 New Program Strategies............................................................43 V. Television Advertising Within The Dual Television System........................................................................48 The Purpose of Television Advertising.................................. 49 TV Advertising
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