You can't do without SRG Radio
SWA annual meeting calls for adaptation to the European environment also for the radio advertising platform
SWA annual meeting calls for adaptation to the European environment, also for the radio advertising platformBy Daniel SchifferleAt this year's annual meeting of the Association of Swiss Advertisers (SWA), criticism rained down in abundance on the draft revision of the Radio and Television Act (RTVA), which took too little account of the liberalization idea. The SWA also called on SRG to open up to advertising on its own radio stations.
Long lists of demands are a classic feature of all SWA events. But usually, advertisers are the addressees of the wish lists. For once, that was different. At this year's annual meeting at the Marriott Hotel in Zurich, the focus of criticism was on the Swiss legislature, and in particular the draft for the new RTVG.
The SWA's demands even went far beyond what is even conceivable at the moment, because in the current revision of the law, advertising for SRG radio stations is not an issue at all. On the contrary. In fact, according to the draft law, their sponsorship opportunities are to be eliminated in the future. But despite these gloomy clouds that keep the public radio sky closed, SWA Director Fredi Schwab made an urgent plea for SRG radio to be opened up quickly to commercial communication.
"Switzerland is the only country in Western Europe where advertisers still have to live without national radio advertising," Schwab pointed out, adding that the local economy could no longer do without national radio advertising opportunities on SRG radio programs.
The many private radio stations would benefit the most
According to Schwab, not only the advertisers would benefit from an opening of the SRG radio stations, but above all the private radio stations themselves, which are still mostly opposed to advertising on SRG radio stations. The additional potential for the private stations would be abundant, as Schwab calculated.
If the radio advertising market is expanded to include SRG stations, he expects a potential of around CHF 250 million per year. That's more than double the roughly 100 million francs in net revenue that private radio stations generate today. For them in particular, the introduction of advertising time on SRG radio stations would be worthwhile, because according to Schwab's calculations, more than 50 million of the 150 additional advertising millions would flow into the coffers of the private radio stations.
For the SRG radio stations themselves, liberalization would bring a potential of between CHF 80 and 90 million, according to the SWA. However, according to the SWA's proposal, this money should not remain entirely in the hands of the SRG. As a sort of sweetener for the commercial providers, 60 percent of SRG radio revenues are to be distributed to private radio and TV broadcasters - as a substitute for cancelled contributions from fee-splitting.
According to the SWA, however, things look bleak for the radio advertising market if today's draft law were to be applied. In this case, Schwab predicted - due to lost sponsorship income - reduced revenues of several tens of millions of Swiss francs.
Strengthen TV vis-à-vis foreign broadcasters
The SWA also expects Swiss TV providers to be weakened instead of strengthened if the RTVA revision follows the draft law. The main goal, however, must be to strengthen Switzerland as a location in cross-border journalistic competition. After all, the TV competition that needs to be held up against is abroad.
For this reason, the financial strength of the SRG must be preserved at all costs, because the latter is already at a marked disadvantage in terms of program purchasing compared to the German broadcasters, next to whose financial possibilities the SRG budget is a mere pittance. One of the SWA's main demands is therefore that SRG's income should not be reduced in any way. In plain language, this means that, contrary to current intentions, it should continue to receive sponsorship in the future.
But the SWA also takes up the cudgels for private broadcasters and calls for them to be given a
rapid relaxation of the advertising rules. And not just when the revised RTVG comes into force in 2005 or even 2006, Schwab demanded. For this reason, Council of States and SW President Carlo Schmid, together with Filippo Lombardi, submitted a parliamentary initiative last December (WerbeWoche reported). It demands an immediate liberalization of the advertising rules according to Euronorm for the private TV stations in Switzerland.
Long lists of demands are a classic feature of all SWA events. But usually, advertisers are the addressees of the wish lists. For once, that was different. At this year's annual meeting at the Marriott Hotel in Zurich, the focus of criticism was on the Swiss legislature, and in particular the draft for the new RTVG.
The SWA's demands even went far beyond what is even conceivable at the moment, because in the current revision of the law, advertising for SRG radio stations is not an issue at all. On the contrary. In fact, according to the draft law, their sponsorship opportunities are to be eliminated in the future. But despite these gloomy clouds that keep the public radio sky closed, SWA Director Fredi Schwab made an urgent plea for SRG radio to be opened up quickly to commercial communication.
"Switzerland is the only country in Western Europe where advertisers still have to live without national radio advertising," Schwab pointed out, adding that the local economy could no longer do without national radio advertising opportunities on SRG radio programs.
The many private radio stations would benefit the most
According to Schwab, not only the advertisers would benefit from an opening of the SRG radio stations, but above all the private radio stations themselves, which are still mostly opposed to advertising on SRG radio stations. The additional potential for the private stations would be abundant, as Schwab calculated.
If the radio advertising market is expanded to include SRG stations, he expects a potential of around CHF 250 million per year. That's more than double the roughly 100 million francs in net revenue that private radio stations generate today. For them in particular, the introduction of advertising time on SRG radio stations would be worthwhile, because according to Schwab's calculations, more than 50 million of the 150 additional advertising millions would flow into the coffers of the private radio stations.
For the SRG radio stations themselves, liberalization would bring a potential of between CHF 80 and 90 million, according to the SWA. However, according to the SWA's proposal, this money should not remain entirely in the hands of the SRG. As a sort of sweetener for the commercial providers, 60 percent of SRG radio revenues are to be distributed to private radio and TV broadcasters - as a substitute for cancelled contributions from fee-splitting.
According to the SWA, however, things look bleak for the radio advertising market if today's draft law were to be applied. In this case, Schwab predicted - due to lost sponsorship income - reduced revenues of several tens of millions of Swiss francs.
Strengthen TV vis-à-vis foreign broadcasters
The SWA also expects Swiss TV providers to be weakened instead of strengthened if the RTVA revision follows the draft law. The main goal, however, must be to strengthen Switzerland as a location in cross-border journalistic competition. After all, the TV competition that needs to be held up against is abroad.
For this reason, the financial strength of the SRG must be preserved at all costs, because the latter is already at a marked disadvantage in terms of program purchasing compared to the German broadcasters, next to whose financial possibilities the SRG budget is a mere pittance. One of the SWA's main demands is therefore that SRG's income should not be reduced in any way. In plain language, this means that, contrary to current intentions, it should continue to receive sponsorship in the future.
But the SWA also takes up the cudgels for private broadcasters and calls for them to be given a
rapid relaxation of the advertising rules. And not just when the revised RTVG comes into force in 2005 or even 2006, Schwab demanded. For this reason, Council of States and SW President Carlo Schmid, together with Filippo Lombardi, submitted a parliamentary initiative last December (WerbeWoche reported). It demands an immediate liberalization of the advertising rules according to Euronorm for the private TV stations in Switzerland.
