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Newsletter 12 June 2008 TV makes people happy Gerhard Zeiler about the value of television

Germany Interview with Anke Schäferkordt Hope for Girls at the Leprosy Centre France Record-breaking audience figures for M6 RTL Radio – Media of the Year 2008 United Kingdom All-time high with Britain’s Got Talent pe

COVER: Gerhard Zeiler at the Medienforum in Cologne.

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Serving the public At the Medienforum NRW in Cologne, RTL Group CEO Gerhard Zeiler spoke about the social value of television, and took a stand on hot topics like advertising bans and the protection of minors. Gerhard Zeiler Germany - 11 June 2008

Gerhard Zeiler launched his speech with seve- heading ‘helping people to help themselves’. ral quotes by politicians to show how television Zeiler cited RTL Television coaching formats – especially commercial television – is the sub- such as Raus aus den Schulden (Get Out of ject of public scolding, and noted: “It’s easy to Debt) with Peter Zwegat and Super Nanny with badmouth television because everyone, really Katharina Saalfrank, described by Der Spiegel everyone, knows what you’re talking about.” In magazine as “heroes of social work,” as perfect his nearly 30-minute speech, Zeiler elaborated examples for ‘Help-TV’. “By running such for- on the contribution that television, criticism mats we not only tackle topics that are relevant notwithstanding, makes for society and within – we make them accessible to a wide public society. He pointed especially to four important and point out solutions, giving people the hope dimensions: political awareness building, social of escaping an apparently hopeless vicious mandates, reflecting society, and entertain- cycle.” ment. Television doesn’t present a falsely “hunky- “We build awareness, we tell the background dory” world, but also deals with people on the story, and we tackle questions no one else fringes of society, but without donning wants to deal with,” declared Zeiler, and pro- “consternation-tinted glasses.” Television’s role ceeded to talk about the first aspect – commu- is to show all of society with its positive and nicating political issues. negative sides, which happens e.g. on the talk or courtroom shows shown in afternoon pro- Commercial TV translates political communica- gramming. “In this sense,” said Zeiler, “I see tions into a language understood by young what many feel to be pure provocation as a people, said RTL Group’s CEO. That, he said, is kind of public service, too.” the reason that the public broadcasters’ news draw fewer young viewers – because the latter don’t understand the language spoken by the former. However, Zeiler was careful to point out that translation is not tabloidisation, let alone infotainment.

Zeiler then went on to speak about the second aspect: television’s social manda- tes. At a time when government support is being cut ever further, social workers turn into protagonists on television, under the

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Zeiler’s fourth point was the positive effect of ble. We will defend ourselves against this sort entertainment. “Ensuring fun and enjoyment is of censorship of taste – and we will do so in also part of our mandate. […] Entertainment is court.” just as much part of a functioning media socie- ty as information and education.” However, Zeiler also addressed the new Interstate unfortunately television entertainment often rai- Broadcasting Treaty, which is getting a lot of ses negative associations, while reading a attention in Germany as it is the main directive book, for example, is seen as positive, nearly governing the public broadcasting system in without exception. “Why are two different Germany: “It shifts the balance between public yardsticks used here?” Zeiler asked. and commercial broadcasters – already off-kil- ter – even more in favour of state-owned televi- In order to continue fulfilling its mandate and sion.” He also spoke about the various adverti- contributing value to society, television needs sing restrictions imposed on television, such as to have conditions in place that allow it to do “regulation that tells us – unlike the printed so, demanded Zeiler. He referred among other media – how much and when and at what inter- things to the dispute with the media authorities vals advertising may be shown, as if responsi- regarding the talent show Deutschland sucht ble, mature citizens only existed among news- den Superstar (Idol). The authorities had filed a paper readers but not among TV watchers.” investigation based on several remarks made Advertising bans, such as on tobacco adverti- by Dieter Bohlen, one of the judges on the sing, also fail to achieve the desired effect, said show. “What’s next? Will miserably failed Zeiler. Television’s function as a role model – in penalty kicks no longer be replayed – let alone films, shows and series- has a much greater in slow-motion, because the athlete might feel effect, said RTL Group’s CEO. made a laughingstock?” Zeiler asked provoca- tively. “With all due respect for the work done All problems, obstacles and challenges aside, by the Committee for the Protection of Minors Zeiler closed his speech on a conciliatory note: in Media – this investigation against “In the end, it’s only TV – one of the nicer, minor Deutschland sucht den Superstar is questiona- matters of life!”

Excerpts from the speech: About Political Education

Young viewers appreciate the fact that we o For instance, the former government deliver political contexts and political explana- employee Peter Zwegat helps families in tions in the kind of language they understand. debt to gain control over their finances And that, with all due respect, is more than again. necessary. o Street-worker Thomas Sonnenburg tries TV news programmes, especially those on to get teenage runaways off the streets commercial channels, attempt to clarify com- and back into a normal life. plex contexts, mainly by visual means, and to make abstract political contexts more unders- o Educator Katharina Saalfrank aka “Super tandable by illustrating them with human-inte- Nanny” helps overwhelmed parents with rest stories. That doesn’t qualify as tabloidisa- raising their children, tion and it certainly isn’t infotainment. o and youth therapist Annegret Fischer As I see it, it is a contribution to political educa- Noble deals with “teenagers out of tion and one of the key reasons that the overw- control” and communicates to them the helming majority of younger viewers tune in to purpose and necessity of proper social the news programmes of commercial broad- conduct. casters, and especially of RTL Television. By running such formats we not only tackle About Help-TV topics that are relevant – we make them acces- sible to a wide public and point out solutions, There are a large number of such Help-TV for- giving people the hope of escaping an appa- mats, which provide hands-on advice for life, rently hopeless vicious cycle. where help is provided to those who really urgently need it. 4 week 24 the RTL Group intranet

Gerhard Zeiler and Marie-Luise Große Peclum at the Medienforum in Cologne

As a result, there has been a growing run on the In fact, it is much more likely that a large share social services offices because the Help-TV of the books – I would go as far as to say the formats give many people the necessary impe- absolute majority – are read purely for enter- tus to take charge of their situation. This and tainment. the fantastic viewer ratings show that we have struck a social nerve here. Television is no different. And yet, entertain- ment obtained by reading is culture – while Value is happiness entertainment obtained by watching television is “mere” entertainment! This brings me to my last aspect of “value” – a definition that is only very rarely appreciated in About the public value of entertainment our culture. It was proposed by a professor at INSEAD, the prestigious business school near Ensuring fun and enjoyment is also part of our Paris. He lectures on topics such as mergers & mandate. Even if we for a variety of reasons acquisitions and business appraisals – so at aren’t as relaxed in our dealings with entertain- first glance doesn’t have anything to do with ment as our European neighbours – one thing the idea of social values. holds true for us as well: entertainment is just as much part of a functioning media society as Still, this professor came up with what for me is information and education. the simplest and most surprising definition of value, of social value. About advertising

His approach says that the most important Let’s please not forget that advertising adds measure of the value of an offering or product colour to life. Advertising stands for imagina- is the extent to which it makes people happy. tion, for freedom. If you don’t believe me, just The more people and the bigger the “happi- think of former East Germany, where there was ness,” the greater the value. Or, in a nutshell, hardly any advertising. “Value is Happiness.” Offers that make people Conclusion: what is the value of television? happy are valuable – an interesting definition, especially when you consider that it comes In closing, ladies and gentlemen, back to the from an economist! topic at hand: What is the value of television?

Making people happy is something television If you ask me, that is something that each one can most certainly do. of us ultimately has to decide for ourselves. And I really mean each and every person – not About different types of entertainment a select few on behalf of all others.

No one can seriously believe that every single The remote control allows every single person one of the 400,000 new books presented at last to make their individual decision: whether to year’s Frankfurt Book Fair was good, that all of watch, when to watch, what to watch, when to them were a valuable contribution to society. change the channel, and finally, when to turn off the TV! 5 week 24 the RTL Group intranet

“Crowding out and obstruction” On 5 June, the German media magazine DWDL.de ran an interview with Anke Schäferkordt, President of Mediengruppe RTL Deutschland. Schäferkordt spoke about politics, online activities and upcoming strategic steps. Germany - 6 June 2008

The ongoing debate about expanding public Unlike Vodafone Germany CEO Joussen, who broadcasters’ online activities in Germany was had pronounced cell-phone TV via DVB-H a particular topic of the interview. “I am strictly dead in Germany, Anke Schäferkordt takes a against an unlimited-access library which inclu- more relaxed view of Mobile TV: “I don’t belie- des the complete entertainment area,” said ve that cell-phone TV is dead. Nor do I wish to Schäferkordt. Offerings tying in to programmes judge whether DVB-H will ultimately prevail as in the public broadcasters’ core area of compe- a standard. But television to mobile devices tence, e.g. culture, education and information, definitely remains an interesting topic.” are acceptable. “Wherever public broadcas- ters use tariff monies to elbow in on a mar- ket that is currently being developed by the private sector, you get crowding out and obstruction of the market’s natural develop- ment. Any existing diversity is destroyed with fees obtained from the public. That simply cannot be in the interest of politi- cians, or in the interest of the licence payers.”

Schäferkordt expressed her overall satisfac- tion with Mediengruppe RTL Deutschland’s own online offerings, e.g. the video-on- demand (VoD) portal RTLnow.de. However, she pointed out that they are still a long way from profitability: “Of course the growth rates are enormous; the number of views on RTLnow is rising by the month. That’s why we’ve just expanded the site and given it a fresh new look. We are still nowhere near a neck-and-neck race with linear TV program- ming.” Asked about the site’s refinancing prospects, Schäferkordt responded: “Our basic question is always: what does the business model look like in the long term? Views of free VoD significantly outnumber those of paid offering. And in the surveys we’ve done recently, an overwhelming majority indicated their preference for pre- roll and commercial breaks on RTLnow over paid services. Apparently, people have lear- ned to live with advertising.” However, a fully ad-financed on-demand site would only make sense as a temporary “catch-up servi- ce”, said Anke Schäferkordt.

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A valued member of the FTSE4Good Index RTL Group continues to meet the corporate social responsibility criteria for the FTSE4 Good Index which was confirmed by the FTSE4 Good Policy Committee in a letter to RTL Group this June. Luxembourg - 9 June 2008

In 2005, RTL Group was taken into the Created by the independent financial index FTSE4Good Index for the first time and has company FTSE Group, FTSE4Good is a finan- remained in it ever since. To guarantee the cial index series that is designed to identify and independence of company assessments, the facilitate investment in companies that meet FTSE works together with the Ethical globally recognised corporate responsibility Investment Research Service (EIRIS), an inde- standards. Companies in the FTSE4Good pendent body that conducts research into Index Series are doing more to manage their companies’ social, environmental and ethical social, ethical and environmental impacts, and activities. When assessing companies, EIRIS are better positioned to capitalise on the bene- uses international, globally recognised rules of fits of responsible business practice. Some conduct. companies that have been deleted from the FTSE4Good Index include Toshiba Tec and Western Union.

Record-breaking audience figures 9.6 million viewers watched M6’s broadcast of the Euro 2008 clash between France and Romania on 9 June – an incredible total audience share of 54 per cent. Thierry Roland and Frank Leboeuf France - 10 June 2008

With commentary from the extraordinary To the delight of the male audience, the eve- Thierry Roland and former France defender ning’s football coverage continued at 20.45 Frank Leboeuf, France’s first Euro 2008 match with the match between the Netherlands and helped M6 draw its biggest audience ever. The Italy (which ended in a 3-0 victory for the channel even recorded an audience peak of Netherlands). 35.8 per cent of the male audien- 12.7 million at 19.51. ce tuned in, making M6 the most popular chan- nel among French men for that night.

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Medium of the Year 2008 RTL Radio France and M6 were honoured at the 10th CB News Awards, which took place on 9 June in Paris. France - 10 June 2008

RTL Radio was not only named ‘Radio Station Un dîner presque parfait, which is produced by of the Year 2008’, better yet, the station also Studio 89 Productions, was launched in scooped the evening’s top award, the ‘Grand February and is broadcast every weeknight at prix des médias’, which is presented to 18.00. M6 views the accolade as recognition for France’s medium of the year. a programme that captivates audiences and a reward for an innovative programming strategy. This is the first time the ‘Grand prix des médias’ has ever been bestowed upon a radio station The media eligible for this major prize are infor- and it is a great honour for RTL Radio. The two mative or editorial media, i.e. television, radio awards stand testament to the two years of and the press. The nominations in the various constant success RTL Radio has enjoyed since categories are chosen by the editorial team at its revival. RTL Radio regained its position at CB News, an industry magazine for the com- the top of the leaderboard in September 2006 munications sector and the creator and organi- and has never looked back since – it is pulling ser of the event. Using a permanent monitoring ever further ahead of its competitors and has system, the team identifies and analyses the become the station of choice across all areas of year’s main media events. The panel for the broadcasting, from information to entertain- ‘Grand prix des médias’ is composed of around ment. 15 key personalities from the media world. Previous winners of the award include Canal+ M6 also received recognition – Un dîner pres- (2006) and the NextradioTV Group (2007). que parfait (An Almost Perfect Dinner) was named ‘Best Entertainment Programme’.

With audience figures averaging two million, Un dîner presque parfait has helped M6 to the top of the leaderboard in its timeslot – it has been the most popular channel across the whole viewing public (18.8 per cent audience share among viewers aged 4 and over) and among housewives aged under 50 (36.9 per cent audience share) since 1 May.

“Best Entertainment Programme”: Un dîner presque parfait

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All-time high with Britain’s Got Talent 14-year-old break dancer George Sampson wasn’t the only winner of Talkback Thames’ Britain’s Got Talent. FremantleMedia Enterprises has enjoyed unprecedented success with its dedicated website, almost doubling last year’s traffic. United Kingdom - 9 June 2008

A whopping 3.4 million video clips have been was a towering feat to keep fans on the site. viewed at www.itv.com/talent, a website crea- The amazing range of content available there ted by FremantleMedia Enterprises (FME). On meant resulted in visitors spending an average the site’s busiest day, Sunday 1 June, 377,000 of over eight minutes per session on the site”. videos were viewed by 293,000 unique users. That same day the site delivered 2.22 million In addition to the Britain’s Got Talent website, page impressions; a 61 per-cent increase on FME’s Interactive team is responsible for the 2007’s highest daily viewing figure. new media development of other FME and Talkback Thames brands, including Live From Robert Marsh, FME Vice President, Interactive, Abbey Road, The Apprentice and The X Factor UK, said: “We’re delighted with the performan- – the latter earning the team a BAFTA nomi- ce of this year’s Britain’s Got Talent website. nation in 2007. Its AmericanIdol.com site We designed the site to satisfy the show’s fans remains one of the most popular sites on and now feel it’s been an absolute triumph. It the Web. check out www.itv.com/ talent

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The Life of Pelé FremantleMedia Enterprises signed a develop- ment agreement for the global rights to com- mission a documentary about the legendary Brazilian soccer star, Pelé. Pelé United Kingdom - 6 June 2008

Pelé’s life has been documented in a number of Pelé had an eventful and colourful life, rising written biographies but until now, no company from a poor background in Brazil to become has been granted such unparalleled access to not just an international soccer hero, but an produce an official television documentary for international icon in his own right. Pelé has broadcast use on one of the most famous and been honoured with some of the most presti- talented soccer stars in the world. While the gious sporting titles in the world, including the content ideas are still in early development sta- unparalleled “Athlete of the Century”, awarded ges with producer/director roles yet to be by the International Olympic Committee. He appointed, the documentary will focus on a was chosen as “Football Ambassador of the specific time in Pelé’s playing career. World” by FIFA (Fédération Internationale de International broadcast distribution rights to the Football Association), won the “Laureus World final product will go to FremantleMedia Sports Lifetime Achievement Award” presented Enterprises (FME). by Nelson Mandela and earned the “BBC Sports Personality of the Year – Lifetime David Ellender, CEO of FME, said of the agree- Achievement Award”. In addition to his sporting ment “We are extremely excited to gain this accolades, he has also held titles such as enviable opportunity to work with a truly global United Nations Ambassador for Ecology and superstar and look forward to sharing Pelé’s the Environment, UNESCO Goodwill celebrated life and telling his story to the Ambassador and Extraordinary Minister for world.” Sports in Brazil and has an honorary British knighthood.

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M6 on your mobile phone M6 Web has just launched a special mobile phone-compatible version of its portal M6.fr. France - 12 June 2008

The new service, which is a spinoff of the web portal M6.fr, will feature video clips, highlights and first showings of TV programmes and series. It will also enable users to catch up with the latest celebrity news, access the interactive TV guide and enjoy a wide range of other prac- tical services. During Euro 2008, Orange, SFR and Bouygues Telecom subscribers can use M6.fr’s mobile service free of charge to keep up to date on news and results for both the French team and the whole tournament. They can also watch behind-the-scenes videos from the mat- ches.

Thanks to M6 Web’s new service at M6.fr, tele- vision viewers, Internet users and mobile Internet users can prolong their M6 television experience via the Internet or their mobile pho- nes. The new service also represents another step in the Groupe M6’s development in the new media.

About M6 Web

M6 Web is the subsidiary in charge of new technology at the Groupe M6. In addition to its mobile activities – notably the M6 Mobile by Orange package, which has 1.1 million subscribers – and games, M6 Web has built up a more impressive range of sites, drawing 8.9 million unique visitors in April 2008.

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Hope for Girls at the Leprosy Centre EUR 272,280 of the money raised during the RTL Spendenmarathon will go to build a group home at the leprosy centre in Dhanbad, India. Germany - 12 June 2008

“It’s wonderful that we were able to provide RTL Charity director Wolfram Kons said: “It is such fast and unbureaucratic relief with the great news that the girls will have something help of RTL Television’s viewers,” said RTL tangible to look forward to in just a few months. Television editor-in-chief Peter Kloeppel, Of course the RTL Spendenmarathon team will delighted at the RTL Spendenmarathon’s sen- continue to monitor and document the deve- sational support for an all-girls boarding school lopments in Dhanbad. I would like to take this in Dhanbad, some 400 kilometres north west of opportunity to thank Peter Kloeppel, who devo- Calcutta/India. ted himself to making the girl’s boarding school happen over in India.” The EUR 272,280 from the RTL Spenden- marathon will be used to construct a new group The supporting organi- home complete with bathrooms and several sation behind the common rooms. The new building will replace Dhanbad project is the the current temporary accommodations in German Leprosy and classrooms so flimsy that snakes were able to TB Relief Association. enter during the monsoon rains. Construction on the new group home began on 21 April, and is scheduled for completion in autumn 2008.

A German view of the US elections News channels CNN International and N-TV and newspaper publishers the Welt-Gruppe announ- ced their cross-media cooperation project for US presidential election coverage at the Medienforum NRW. Germany - 11 June 2008

The partners have already kick-started their while N-TV and Welt-Gruppe (Die Welt, Welt project with a joint logo and the slogan ‘Race to am Sonntag, Welt kompakt and Welt Online) the White House 2008’. They have launched a will give up-to-the-minute analysis of American wealth of editorial initiatives, topical surveys news and place it in a broad German and and on-air, off-air and online events, comple- European context. mented by extensive cooperation on marketing and a wide range of cross-promotional activi- The primaries ended at the beginning of June, ties. so the next important events on the agenda are the party conventions. The Democrats’ The project’s aim is to analyse the consequen- convention is from 25 to 28 August, and the ces of the American presidential election cam- Republican convention will be held from 1 to 4 paign for Germany and Europe. CNN will provi- September. de direct, real-time access to American politics, 12 week 24 the RTL Group intranet

User-generated content on German international TV Clipmania, an UFA Entertainment production, is the first show of its kind: it presents video clips from the Internet on the public TV channels DW-TV and MDR. Germany - 6 June 2008

Télévie tots up its proceeds Since the adventure began back in 1989, the Télévie fund-raising campaign has collected no less than EUR 92,550,000, thanks to the great generosity of viewers in both Belgium and the Grand-Duchy of Luxembourg. Belgium - Luxembourg - 9 June 2008

Two German Camera Awards for UFA companies UFA production Reise nach China (Journey to China) from the crime series Bella Block and Hauptgewinn Tod (First Prize: Death), the first episode of the Teamworx series Unschuldig (Innocent), were honoured with prizes at the German Camera Awards 2008 on 8 June. Germany - 10 June 2008

First Com.mit Award presented Last weekend, RTL Television presented its first Com.mit Award. The media prize went to three secondary-school students from Aachen. The award was rung out in 2007 with the aim of encouraging students to take a filmic approach on the subject of integration. Germany - 10 June 2008

Switching to 16:9 On 18 November 2008, the channels of Mediengruppe RTL Deutschland will switch their current events shows, on-air promotions and commercials to the 16:9 broadcasting for- mat. Germany - 11 June 2008

The Netherlands celebrates summer with RTL There has never been a summer celebration quite like this before – RTL 4 is getting right into the summer spirit with ten weeks of special summer activities under the banner ‘RTL Viert De Zomer’ (RTL celebrates summer), helping to kick off the holiday mood. The Netherlands - 12 June 2008 13 week 24 the RTL Group intranet

People UFA Holding expands its senior management team Germany - 10 June 2008

As part of UFA’s ongoing expansion of its busi- UFA’s CEO Wolf Bauer said: “By expanding our ness activities, Susanne Stürmer and Martin holding’s management team, we are respon- Licher have been appointed to the senior ding to the steadily increasing complexity of management team with effect from 1 June. our business and providing an appropriate reflection of the valuable long-time contribution Longstanding staff members Martin Licher (for- made to the company by Ms. Stürmer and Mr. merly Director of Finance) and Susanne Licher.” Stürmer (formerly Director Corporate Affairs) have been appointed to the senior manage- Norbert Sauer is managing director of the UFA- ment team of UFA Film and TV Produktion Fernsehproduktion, UFA Filmproduktion and GmbH, the UFA Group’s holding company, UFA Film- und Medienproduktion labels. As a alongside managing directors Wolf Bauer member of the holding’s management board, (Chairman) and Norbert Sauer. In their new Sauer is responsible for the commercialisation position, they continue to be in charge of the of UFA’s rights and supervises the Group’s following: Martin Licher supervises the Finance, representation in committees and lobbies in IT, Personnel and Facility Management depart- select cases. The managing directors of UFA’s ments, while Susanne Stürmer heads the various subsidiaries continue to report to Wolf Business Development / UFA Interactive and Bauer. Legal (including Media Policy) units, and the Communication / Marketing and Market Research departments.

Susanne Stürmer Martin Licher 14 week 24 the RTL Group intranet

People New Managing Director for RTL Radiovermarktung Stefan Hoppe Germany - 12 June 2008

Stefan Hoppe (37) has been appointed mana- ging director of RTL Radiovermarktung GmbH, Berlin with effect from 1 September. Hoppe reports to Stephan Schmitter, managing direc- tor of the RCB Radio Center Berlin.

Hoppe will be in charge of the advertising sales marketing for the two stations, 104.6 RTL Berlins Hit-Radio and 105’5 Spreeradio. “Stefan Hoppe’s appointment adds an expe- rienced manager to the RTL Radiovermarktung management floor,” said Schmitter. “His skills as a marketing specialist will help to keep RTL Radiovermarktung positioned in the marketpla- ce as a reliable partner and to ensure that 104.6 RTL and 105’5 Spreeradio remain competitive over the long term.”

Stefan Hoppe joins RTL Radiovermarktung from MORE Marketing Organisation und Radioentwicklungs GmbH & Co. KG, the mar- keting agent for Radio Hamburg and Oldie 95, where he impressively proved his professional qualities and skills as director of national and regional sales.

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