Everything (still) remains the same
In Switzerland - unlike Germany - the Pro 7/Sat 1 stations are still marketed separately
It didn't take long for the situation to be clarified. Last week, the newly formed Pro 7/Sat 1 Group announced the modalities and timetable for the integration of its channels, and as early as Friday, Pro 7/Sat 1 CEO Urs Rohner and RTL CEO Gerhart Zeiler discussed the matter with Klaus Kappeler and Beat Curti from IPM (Switzerland). This time, the actually routine conference call had an explosive topic: What's next for the marketing of the
Pro 7/Sat 1 advertising windows? Are they also following the philosophy in Germany, according to which all stations will be consolidated with one marketer in the future?
Long-term contracts are honored
According to the result of last Friday's conference call, IPM can rest easy: "There is no acute need for action in Switzerland. The contracts with the advertising window partners are being honored," says Paul Riesen, responsible for marketing and communications at Medien Z Holding, quoting the essence of the conversation. Since these contracts are all long-term commitments with a term of five or more years, this decision sets the tone for the near future: IPM (Switzerland) can keep Pro 7 and Kabel 1 in its portfolio, alongside competing stations RTL and RTL2.
At the same time, Cinecom's hopes of soon having other Pro 7/Sat 1 Group stations on its books, in addition to the Sat 1 advertising window, have been dashed. And yet the Zurich marketing company, which has successfully diversified into TV marketing in recent years, now felt fit to take over additional stations. But Cinecom boss Matthias Luchsinger respects the decision from Germany. But he is convinced: "In the longer term, concentration on one marketer is the goal."
Concentration sharpens competitive situation
This opinion also dominates among media specialists in Switzerland. "Merging the Pro 7/Sat 1 stations with one marketer is actually logical," says Petra Kreussler, a member of the management team at Baier Media in Zurich, "you could put together better packages in this constellation, and the use of the planning programs also works better if the stations are unbundled." Kreussler would therefore welcome "if Cinecom were to get something more." She cites one reason in particular: "It's more interesting to talk about prices with Cinecom. They are much more agile than IPM."
Andy Lehmann, Managing Director Optimedia, is also convinced that a clear separation of the station groups would have "more advantages than disadvantages" in marketing as well. "You can form more precise target groups," adds Lehmann, "or, for example, avoid zappers more successfully by programming the commercial breaks at the same time." But this mutual coordination of advertising can only be realized if the stations are united at the same marketer.
But with the recent commitment of the station bosses to the status quo with the advertising window marketers, this is now off the table for the time being. And Paul Riesen from IPM (Switzerland) sees no reason why this could change in the longer term and why his company should possibly hand over Pro 7 or Kabel 1 or even both to Cinecom in the future. "It's like in the retail trade, where several products have to coexist in the same store," says Riesen, putting the mixing of competing channels at the same marketer into perspective.
Integrated transmitter and marketing
Pro 7 Media and Sat 1 are merging to form Germany's largest television company. As a result, the four stations Sat 1, Pro 7, Kabel 1 and N24, as well as all subsidiaries and holdings of the two partners, will in future operate under the umbrella of the new Pro 7/Sat 1 Media.
The joint holding company is headquartered in Unterföhring near Munich, the former location of Pro 7 and Kabel 1. The goal of the merger: to leverage synergies, better organize value chains and position the stations even more clearly as complementary offerings alongside one another.
But a key element of the merger is also marketing. The existing marketing companies Media-Gruppe München (Pro 7, Kabel 1) and Media 1 (Sat 1) are to be merged into a single joint company for all stations.
The Kirch Group holds a majority stake of 52.52 percent in the new company Pro 7/Sat 1 Media, while the publisher Axel Springer has an 11.48 percent stake. The remaining 36 percent free float will be listed on the stock exchange. No longer directly involved in the TV stations is the retail company Rewe, which had held 20 percent of Pro 7. This stake was exchanged for a 6 percent interest in Kirch Media Holding.
