Case Study: German Public Service Broadcasting and Online Activity
Total Page:16
File Type:pdf, Size:1020Kb
REFERENCE SERIES NO. 13 MAPPING DIGITAL MEDIA: CASE STUDY: GERMAN PUBLIC SERVICE BROADCASTING AND ONLINE ACTIVITY By Johannes Weberling June 2011 Case Study: German Public Service Broadcasting and Online Activity WRITTEN BY Johannes Weberling1 Few countries support public service broadcasting more enthusiastically than Germany, where the public service broadcasters (PSBs) are seen as more informal, modern and entertaining than before, without having lost their reputation for quality. Th e combined budgets of all the PSBs far exceed the combined advertising revenue of private broadcasters. Yet the PSBs face a demographic threat. Around half of their viewers are over 65 years old, while only 5 percent are under 30. If the PSBs are to safeguard their future, they must attract younger audiences. Th is means developing services online. At the same time, following private-sector complaints, the European Commission decided the license fee was distorting competition. Th e PSBs responded with a public value test to assess new services. Debate in this context has centred on two crucial questions: whether or not internet portals and online products fall within the remit of public service broadcasting, and whether PSBs should be allowed to compete for advertising with private media. In this paper, Johannes Weberling explains the German search for an equitable balance between public and private media interests online, in the light of European Union concerns over state aid. (Th is paper partners the Mapping Digital Media country report on Germany.) 1. Attorney-at-Law in Berlin and Head of the Study and Research Centre on Media Law at Europa-Universität Viadrina Frankfurt (Oder). Th e author thanks his assistants Eva-Maria Weberling and Malte Nieschalk for their useful support in preparing this article. Mapping Digital Media Th e values that underpin good journalism, the need of citizens for reliable and abundant information, and the importance of such information for a healthy society and a robust democracy: these are perennial, and provide compass-bearings for anyone trying to make sense of current changes across the media landscape. Th e standards in the profession are in the process of being set. Most of the eff ects on journalism imposed by new technology are shaped in the most developed societies, but these changes are equally infl uencing the media in less developed societies. Th e Media Program of the Open Society Foundations has seen how changes and continuity aff ect the media in diff erent places, redefi ning the way they can operate sustainably while staying true to values of pluralism and diversity, transparency and accountability, editorial independence, freedom of expression and information, public service, and high professional standards. Th e Mapping Digital Media project, which examines these changes in-depth, aims to build bridges between researchers and policy-makers, activists, academics and standard-setters across the world. Th e project assesses, in the light of these values, the global opportunities and risks that are created for media by the following developments: the switchover from analog broadcasting to digital broadcasting growth of new media platforms as sources of news convergence of traditional broadcasting with telecommunications. As part of this endeavor, the Open Society Media Program has commissioned introductory papers on a range of issues, topics, policies and technologies that are important for understanding these processes. Each paper in the Reference Series is authored by a recognised expert, academic or experienced activist, and is written with as little jargon as the subject permits. OPEN SOCIETY MEDIA PROGRAM 2011 3 Th e reference series accompanies reports into the impact of digitization in 60 countries across the world. Produced by local researchers and partner organizations in each country, these reports examine how these changes aff ect the core democratic service that any media system should provide – news about political, economic and social aff airs. Cumulatively, these reports will provide a much-needed resource on the democratic role of digital media. Th e Mapping Digital Media project builds policy capacity in countries where this is less developed, encouraging stakeholders to participate and infl uence change. At the same time, this research creates a knowledge base, laying foundations for advocacy work, building capacity and enhancing debate. Th e Mapping Digital Media is a project of the Open Society Media Program, in collaboration with the Open Society Information Program. MAPPING DIGITAL MEDIA EDITORS Marius Dragomir and Mark Thompson (Open Society Media Program). EDITORIAL COMMISSION Yuen-Ying Chan, Christian S. Nissen, Dusˇan Reljic´, Russell Southwood, Michael Starks, Damian Tambini. The Editorial Commission is an advisory body. Its members are not responsible for the information or assessments contained in the Mapping Digital Media texts. OPEN SOCIETY MEDIA PROGRAM TEAM Meijinder Kaur, program assistant; Morris Lipson, senior legal advisor; Miguel Castro, special projects manager; and Gordana Jankovic, director OPEN SOCIETY INFORMATION PROGRAM TEAM Vera Franz, senior program manager; Darius Cuplinskas, director Th e views expressed in this publication do not represent, or necessarily refl ect, the views of the Open Society Foundations. 4 MAPPING DIGITAL MEDIA GERMAN PUBLIC SERVICE BROADCASTING AND ONLINE ACTIVITY Contents I. Newspapers Lose Readers, PSBs Seek Young Viewers ................................................................ 6 II. Who Pays for Online Expansion? .............................................................................................. 7 III. Background: the Dual Broadcasting System .............................................................................. 8 IV. Federal Constitutional Court vs. European Commission ........................................................... 10 V. Th e European Dimension ........................................................................................................ 12 VI. Th e 12th Interstate Treaty on Broadcasting and Telemedia ....................................................... 14 VII. Assessing Public Value .............................................................................................................. 16 VIII. Th e “Th ree-Step Test”................................................................................................................ 18 IX. Th e Eff ects of the Interstate Treaty on Broadcasting and Telemedia ........................................... 19 OPEN SOCIETY MEDIA PROGRAM 2011 5 I. Newspapers Lose Readers, PSBs Seek Young Viewers What are German public service broadcasters (PSBs) allowed to do on the internet? Over the last couple of years, this issue has been a focal point of discussion between the public and private broadcasters as well as among print media publishers. Th e debate reached a climax in 2008, leading to the adoption of the 12th Interstate Broadcasting Treaty (Rundfunkstaatsvertrag, RStV). Th e topic re-emerged in the middle of 2010 when the PSBs presented the results of the Public Value Test of their online off ers, and it remains highly topical. Th e German public service broadcasters (PSBs) are trying to attract young audiences, because surveys show that 50 percent of their viewers are over 65 years of age, and only 5 percent are younger than 30 years.2 Newspaper publishers, meanwhile, face shrinking circulations and diminishing advertising revenues. In 2010, only 22.72 million copies of daily newspapers were sold, down from 28.53 million copies in 2000.3 Less than a half, or 45.1 percent of 14 to 19 year-olds read a daily newspaper in 2009, which marks a decrease of 11 percent compared to 2003 (56 percent).4 In just one decade, from 1998 to 2008, the number of daily newspapers declined from 398 to 375.5 Th e advertising revenues of the daily newspapers fell to 3.69 billion in 2009, a loss of 15.5 percent compared to 2008.6 In the hope of mitigating this development and preserving their market position, print media publishers have invested heavily in online products. But print media still have to compete with the public service broadcasters in the advertising market. 2. Volker Lilienthal, “Integration als Programmauftrag”, Aus Politik und Zeitgeschichte, 9–10/2009, p. 12. 3. Horst Röper, “Zeitungen 2010: Rangverschiebung unter den größten Verlagen”, Media Perspektiven 5/2010, statistic 1, p. 219. 4. “Schaubild 1”, Zeitungen 2009, BDZV e.V (Editor), Berlin 2009, p. 129. 5. See http://www.kek-online.de/Inhalte/tazei_daten_zeitungsmarkt.pdf. 6. Horst Röper, “Zeitungen 2010: Rangverschiebung unter den größten Verlagen”, Media Perspektiven 5/2010, p. 218. 6 MAPPING DIGITAL MEDIA GERMAN PUBLIC SERVICE BROADCASTING AND ONLINE ACTIVITY II. Who Pays for Online Expansion? Th e PSBs are fi nanced independently, via license fees,7 so they do not depend only on advertising revenues and are less vulnerable to economic crises. Th e combined budget of all the PSBs in 2010 was €7.5 billion,8 fi nanced via the fee, which is set at €17.98 a month (since 1 January 2009). Private print media companies and broadcasters have to fi ll their budgets themselves, from advertising revenue, without public funds. Th e combined advertising revenue for private broadcasters came to about €3.9 billion in 2007, and for the daily, weekly and Sunday newspapers to €4.63 billion in 2008.9 Th e private/commercial broadcasters believe this situation is unacceptable, as it puts them in a disadvantageous