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Media Baltics THE BALTIC CENTER FOR INVESTIGATIVE JOURNALISM THE BALTIC CENTER FOR INVESTIGATIVE JOURNALISM THE BALTIC CENTER FOR INVESTIGATIVE JOURNALISM BALTIC MEDIA HEALTH CHECK 2017–2018 How media organisations across the Baltics are embracing the digital age AIJA KRŪTAINE INGA SPRIŅĢE DŽINA DONAUSKAITĖ MARJU HIMMA-KADAKAS Baltic Media Health Check 2017–2018 Baltic Media Health Check is a journalistic study that analyses trends, finances and issues of importance in the Baltic media markets. This publication has been created by the Baltic Center for Investigative Journalism Re: Baltica in collaboration with Anne-Marie and Gustaf Ander Centre for Media Studies at the Stockholm School of Economics in Riga Editorial team Authors: Aija Krūtaine, Inga Spriņģe, Džina Donauskaitė, Marju Himma-Kadakas, Elga Sīle Editors: Aija Krūtaine, Sanita Jemberga Copy editing: Tim Brogden Graphic design: Dace Eglīte Cover photo: LETA Special thanks to Anders Alexandersson, Sabīne Sīle-Eglīte, Renata Mackeviciene, Margo Veskimägi, Oskars Rumpēters, Ģirts Ķēbers Data sources: Kantar Emor, Kantar TNS Latvia, Kantar TNS Lithuania, Lursoft, Creditreform, The e-Business Register of the Estonian Centre of Registers and Information Systems, Creditreform Lithuania To re-publish all or part of this work, written permission must be obtained in advance © Anne-Marie and Gustaf Ander Centre for Media Studies at the Stockholm School of Economics in Riga © The Baltic Center for Investigative Journalism Re:Baltica Riga/Tallinn/Vilnius, November 2018 EMOR THE BALTIC CENTER FOR INVESTIGATIVE JOURNALISM THE BALTIC CENTER FOR INVESTIGATIVE JOURNALISM THE BALTIC CENTER FOR INVESTIGATIVE JOURNALISM Baltic Media Health Check 2017–2018 CONTENTS Foreword from the Editor ......................................................................................................................................................................................... 2 May You Live in Interesting Times Breakdown of trends in the most popular media outlets and their owners’ financial indicators in 2017 ......................... 3 It Really Happened Media events to remember from 2017-2018 in Estonia, Latvia and Lithuania ............................................................................... 12 All Media Baltics: The Baltflix of the Future Interview with Pierre Danon, executive chairman of All Media Baltics .............................................................................................. 15 Eesti Meedia: Distinguishing Digital Shows the Way Interview with Sven Nuutmann, CEO and chairman of the management board at Eesti Meedia ������������������������ 20 Ekspress Grupp: The One-Click Springboard Interview with Andre Veskimeister, chairman of the supervisory board of Ekspress Grupp, and the media group’s majority shareholder, Hans Luik ....................................................................................................................................... 25 The Love-Hate Relationship Analysis of the impact of global publishers on the Baltic media markets ............................................................................................ 31 What Do Digital-Born Media Invest In? We asked, most popular Baltic news websites answered .............................................................................................................................. 34 Hunting for Change The story of Nanook, a multimedia journalism startup that focuses on documentary projects about social issues ................................................................................................................................................................................................................. 35 TOP 5 Newspapers In the Baltics and their financial indicators ......................................................................................................................................................... 37 TOP 5 Magazines In the Baltics and their financial indicators ............................................................................................................................................................ 41 TOP 5 Online News Websites In the Baltics and their financial indicators ......................................................................................................................................................... 45 TOP 5 Radio Stations In the Baltics and their financial indicators ......................................................................................................................................................... 48 TOP 5 TV Channels In the Baltics and their financial indicators ......................................................................................................................................................... 51 1 Baltic Media Health Check 2017–2018 FOREWORD FROM THE EDITOR By Aija Krūtaine fter a few relatively stable years, the media ious players in the Baltic media market are addressing market in the Baltics seems to be headed this challenge. The new digital environment is decep- for interesting times. Our latest report tive; while shining a light on the path to a wider audi- shows that more than half of the most ence, it lures loyal readers and viewers ever further away Apopular media saw their audiences shrink in 2017. It from mainstream news into disparate groups and echo is becoming harder for media owners to grow sales, chambers. It offers a lot of data points, but does it really and the size of the Baltic advertising market is still elucidate what the audience wants? And does the media below its 2008 level. not have a greater responsibility than simply satisfying the guilty pleasures of its readers and viewers? It’s not just about the numbers. Social media has taken away the media’s monopoly over information distri- As our interviews with various media executives show, bution and anyone can be a publisher these days. This the process of adapting is well under way. Larger media change has facilitated a decrease in news quality and an groups are in a better position to innovate, and they epidemic of disinformation which is eroding trust in have continued to consolidate in order to streamline the media. Many academics and professionals consider operations and strengthen capabilities. Journalistic that the prevalence of disinformation will drive the startups are also finding their way. The media, both need (and demand) for quality journalism that meets large and small, are engaging more with the audience to professional standards and ethics; however, this assumes tap into their hearts and minds and create products that that journalists and the media they work for can con- satisfy their needs. In any case, technology is knocking tinue to reach their audience. on the door and calling on journalism and the media to reinvent themselves; and there are positive signs that That’s why this year we have focused on how the var- they will. ■ 2 Baltic Media Health Check 2017–2018 MAY YOU LIVE IN INTERESTING TIMES Which were the most popular media outlets in 2017 and how are their owners doing financially? By Aija Krūtaine In 2017: levels from ten years ago. ■ The 75 most popular media outlets in the Baltic coun- tries were owned by 45 media houses. 29 of those owners Main conclusions operated with a net profit, while the other third suffered 2018 marks ten years since the start of the global finan- losses last year1. cial crisis, which hit the Baltic countries particularly hard and significantly changed their media markets. ■ Of the 75 most popular media titles, 29 managed to increase their audience, but the majority of outlets (41) It also marks 11 years since the iPhone was launched and saw theirs shrink2. people discovered both the bliss and the curse of the nev- er-ending scroll down a glass screen, which now appeals ■ Consolidation has continued and the number of com- to audiences more than the mainstream media. panies owning top media has decreased from 53 in 2014 to 45 in 2017. More than half of the most popular media outlets in 2017 had a smaller audience than a year ago, indicating ■ Six media groups own 38 of the most popular me- that media organisations are unable to escape this effect. dia outlets in the Baltics. Estonian Ekspress Grupp is the The wooden spoon this year goes to magazines. Audi- leader, owning 11 of the most popular titles based on ences diminished for 12 of the most popular titles and audience numbers. only three magazines can take pride in having secured a higher average number of readers in their target group ■ The other Baltic media powerhouses owning four or for one issue (cover). Magazine publishers’ revenues are more of the most popular media titles are: the pan-Bal- falling too, yet the good news is that they are still prof- tic broadcaster All Media Baltics; another of the Esto- itable. The only two exceptions are Latvian publishing nian media giants, Eesti Meedia; Latvia’s Baltijas Medi- house Izdevniecība Rīgas Viļņi, which fell into the red last ju Alianse, which caters to Russian-speaking audiences; year as its wage costs increased, and Estonian magazine Latvia’s leading magazine publisher Žurnāls Santa; and publisher Ajakirjade Kirjastus, because of a fall in adver- Estonia’s public broadcaster Eesti Rahvusringhääling. tising revenues. ■ Of the media owners who made it into this list and Newspaper audiences keep falling too. In 2017, reader- whose financial indicators can be compared with 2008 ship declined for nine publications. Estonian
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