Sector information Munich – A media metropolis - Munich's media industry 1 - Industry overview 2 - Print 2 - Press 4 - Broadcasting 5 - Film 6 - Gaming 8 - Music 9 - Marketing and market research 10 - Education and training 12 - Clusters and networks 14 - Congresses and trade fairs 16 - Who to contact on media issues 16 Munich's media industry Following on from a study of the cultural and creative industries in the Munich Metropolitan Region (EMM) published by the Office of Cultural Affairs in 2012, the findings of the second Data Report on the Cultural and Creative Industries were presented at the end of January 2016. The study explores the economic structures and trends that underpin the cultural and creative industries in the Munich metropolitan region. Once again, the findings of the 2016 data report exceeded the expectations of the initiators and pundits alike: A comparative view of the EU's regions shows that above-average growth in these industries has now projected the Munich Metropolitan Region into first place (source: Datenreport zur Kultur- und Kreativwirtschaft in der Landeshauptstadt München 2016). The cultural and creative industries break down into eleven segments: the music industry, books, the film industry, broadcasting, the press, advertising, the software/games industry, the art market, the visual arts, design and architecture (source: Datenreport zur Kultur- und Kreativwirtschaft in der Landeshauptstadt München 2016). Published by: City of Munich, Department of Labor and Economic Development Herzog-Wilhelm-Strasse 15, 80331 München, Germany, www.muenchen.de/arbeitundwirtschaft Responsible for contents: Ursula Grunert, Phone: +49 (0)89 233-2 25 22 Fax: +49 (0)89 233-989-2 20 70, [email protected] The majority of the segments investigated in the study of the cultural and creative industries are part of the media sector. A closer look at the music, books, films, broadcasting, press, advertising and software/games markets reveals high levels of employment, a large number of companies and impressive revenue in these segments: The core media sector – self-employed persons and companies that generate annual revenues of over EUR 17,500 – accounts for 58% of the companies, 76% of the gainfully employed individuals and 80% of total revenue in Munich's cultural and creative industries. Needless to say, the media industry and its various segments are of tremendous importance to the cultural and creative sector. The study's impressive figures attest to Munich's leading position – nationally and internationally as a creative and media hub (source: Datenreport zur Kultur- und Kreativwirtschaft in der Landeshauptstadt München 2016). Industry overview Print Germany's publishing houses and bookstores have for several years found themselves competing with new media. Revenue in the industry has remained stable in recent years, but the number of buyers is in constant decline. Whereas 29.6 million still bought at least one book each in 2016, this figure fell to 23.2 million in 2017. Although the remaining buyers purchased slightly more books on average in 2017 than in the previous year, German publishers and bookstores saw their revenue edge down year on year to EUR 9.13 billion. Although stationary bookstores' online business is growing, that was not enough to make up for the drop in sales at bricks-and-mortar outlets. New sales channels and new media are keeping publishers, booksellers and customers busy. The trend toward e-books, for example, continues unabated (source: Börsenverein des Deutschen Buchhandels). Munich is home to 1,300 companies on the book market which, together, generate revenue of around EUR 1.4 billion. Contrary to the nationwide trend, the book market in the Bavarian capital has experienced surprisingly positive development: Whereas employment figures in the German book market dwindled constantly, Munich saw socially insured jobs in this segment increase by 22% in the same Page 2 period. Approximately 5,200 people work in the book market – 71% of them for publishing houses and 17% in book retail. In terms of revenue, the national book market shrank by 7% in the period under review, while the Munich book market posted a gain of 15% (source: Datenreport zur Kultur- und Kreativwirtschaft in der Landeshauptstadt München 2016). Venerable household names such as C.H.Beck and Carl Hanser call Munich their home. In the guidebooks segment, publishers Gräfe und Unzer, BLV, Callwey and Hirmer lead the field nationwide. The educational publishing market is similarly well represented in Munich, with Hueber, Oldenbourg, Bayerischer Schulbuchverlag and Langenscheidt. Meanwhile, the process of consolidation is in full swing, driven by key player Random House, which has so far brought more than 40 brands – including Goldmann, Heyne and C. Bertelsmann – into its ever more expansive fold. Events • Bayerischer Buchpreis Prizes are awarded for the best new German books of the year in the fiction and non-fiction categories www.bayerischer-buchpreis.de/ • Book meets Film Under the aegis of the Munich Film Festival, this competition targets publishers with books that have the potential to be adapted for the big screen www.boersenverein-bayern.de/de/portal/Book_meets_Film/ • eBookCamp Platform for dialogue surrounding new formats, perspectives and risks in the book industry www.muenchen.ebookcamp.de/ • Literaturfest München International literature event held every year at the end of November/start of December. The Geschwister-Scholl Prize and the LiteraVision television prize are awarded www.literaturfest-muenchen.de/ Page 3 Press Munich is home to a number of large and successful newspapers and publishers. Süddeutsche Zeitung (print), for example, has a circulation of 453,000, a reach of 15.4 percent and once again posted record earnings in 2018. The “SZ”, as it is known, thus ranks as the country's top supraregional daily/weekly newspaper (source: Süddeutsche Zeitung). One of Germany's highest-circulation magazines likewise comes from Munich: ADAC Motorwelt is the individual medium with by far the most extensive reach in Europe (source: ADAC). Munich is one of several key locations for Burda Media, one of Germany's biggest media companies. Around 2,300 employees currently produce several magazines in Munich, where the Burda Style Group bundles media such as fashion and entertainment magazines, including Bunte, Instyle, Elle, Freundin or Harper’s Bazaar. Its print media have long since been mirrored on the web, including online communities (source: Hubert Burda Media). Munich is also home to Condé Nast Verlags GmbH, set up here as the parent company's German subsidiary in 1978. Vogue, Glamour, men's lifestyle magazine GQ, men's fashion magazine GQ Style and home and design periodical AD (Architectural Digest) are currently published on the banks of the Isar. In 2000, Condé Nast went a step further, launching the sibling company Condé Nast Digital Germany GmbH in Munich as well to handle editorial support and marketing for the magazine's website (source: Condé Nast Verlag GmbH). The rapid advance of digitization is posing a stiff challenge to the press in general. To combat dwindling advertising business, publishers are going on the offensive and committing to cross-media strategies. To this end, newspaper and magazine publishers have been enlarging up their digital footprint in recent years. Events • Bayerischer Printmedienpreis Awards presented in recognition of outstanding developments by publishers and print companies www.bayerischer-printpreis.de/ Page 4 Broadcasting Public and private broadcasting companies design, create and broadcast radio and TV programs comprising every conceivable audiovisual format. The unstoppable trend toward digitization is being implemented successfully in this context. Digital channels such as streaming services and video-on-demand services are becoming ever gaining in popularity among users. ¯ Radio Munich boasts a broad-based and very varied selection of radio programs. Numerous radio stations are headQuartered in the Bavarian capital, including Antenne Bayern, Bayerischer Rundfunk and an array of local broadcasters, such as Radio Gong, Charivari and Energy. Munich is also home to Institut für Rundfunktechnik GmbH (IRT), the research organization that serves public broadcasters in Germany, Austria and Switzerland. In 2017, Bayern 1 was voted the most popular radio station in Bavaria. According to the Media Analysis Workgroup (agma), an average of 912,000 people per hour listen to this Bayerischer Rundfunk (BR) program in Bavaria on working days. Antenne Bayern, the undisputed market leader for many years in the past, only managed 900,000 listeners in the year under review (source: agma). ¯ TV Almost the entire German free-to-air TV landscape – including Das Erste (BR) and ZDF (regional studio), ProSieben, Sat.1, kabel eins, RTL II, Das Vierte, Tele5, Eurosport, Sport1, 9Live and the home shopping channels HSE24 and HSE24 Extra – is based in and around Munich. This ultra-modern environment also attracts major international players: In Unterföhring, Turner Broadcasting System, part of Time Warner, operates film channel TNT Film, series channel TNT Serie featuring the comedy block [adult swim], children's channels Cartoon Network and Boomerang. Other companies only a few minutes away from the city center include Paramount Home Entertainment (Germany) GmbH, which is responsible for the marketing of film productions, satellite operator ASTRA Deutschland GmbH and Vodafone Kabel Deutschland,