Are accredited newspapers and television news agencies

Mediencluster NRW: - Medien Management Institut

mediaclusterNRW:

Promote innovations, create structures

Starting point and priorities

for business development at the location

Study of the memi-Instituteit

funded by the State Chancellery NRW


Author:

Prof. Dr. Werner Schwaderlapp

Daniela Bremer

Catherine Six

Cologne, December 2007

media+ Entertainment managementInstitute

at the Europa Fachhochschule Fresenius

University of Economics and media e.V.

Im Mediapark 4 c, 50670 Cologne

Tel .: +49 221 9731 9961

www.memi-koeln.de, [email protected]


content

1. FOREWORD 9

1.1. BASIC THOUGHT OF THE MEDIA CLUSTER STUDY NRW 9

1.2. AIMS OF THE STUDY 9

1.2.1. ANALYSIS OF THE FUTURE POTENTIAL OF THE MEDIA SECTORS 9

1.2.2. SITUATION MEDIA LOCATION NORTH RHINE-WESTPHALIA 10

1.2.3. RECOMMENDATIONS FOR ACTION FOR THE MEDIA CLUSTER NRW 10

1.3. METHODS AND SOURCES 10

2. MEDIA CLUSTER 12

2.1. DEFINITION OF MEDIA CLUSTER NRW 12

2.2. CLUSTER AS AN ECONOMIC LOCATIONAL ADVANTAGE 12

2.3. CLUSTER AS A CATEGORY FOR REGIONAL ECONOMIC DEVELOPMENT IN NRW 13

3. FUTURE POTENTIAL OF THE MEDIA SECTORS 14

3.1. WATCHING TV 16

3.1.1. TELEVISION MARKET OVERVIEW 17

3.1.1.1. Television sales 18

3.1.1.2. Television - usage data 20

3.1.1.3. Television - value chain scheme 21

3.1.2. TELEVISION - BUSINESS CHALLENGES 22

3.1.2.1. Television - advertising market saturated 22

3.1.2.2. Television - digitization 23

3.1.2.3. Television - Pay TV 24

3.1.2.4. Television - Triple Play 24

3.1.2.5. Television - IPTV 26

3.1.2.6. Television - Mobile TV 28

3.1.3. TELEVISION SPECIFICATIONS OF THE SITE NRW 28

3.2. ORIGINARY ONLINE MEDIA 30

3.2.1. ORIGINARY ONLINE MEDIA MARKET OVERVIEW 31

3.2.1.1. Original onlinemedia - Sales 32

3.2.1.2. Original onlinemedia - Usage data 46

3.2.1.3. Original onlinemedia - Value chain diagram 52

3.2.2. ORIGINARY ONLINE MEDIA - BUSINESS CHALLENGES 53

3.2.2.1. Original onlinemedia - Web 2.0 53

3.2.2.2. Original onlinemedia - Internet television 57

3.2.2.3. Original onlinemedia - Migrated content 59

3.2.3. ORIGINARY ONLINE MEDIA - LOCATION SPECIFICATIONS NRW 60

3.3. BOOKS 62

3.3.1. BOOKS MARKET OVERVIEW 63

3.3.1.1. Books - Sales 63

3.3.1.2. Books - usage behavior 65

3.3.1.3. Books - Value Chain Scheme 65

3.3.2. BOOKS - BUSINESS CHALLENGES 66

3.2.2.1. Books - online bookstores 67

3.2.2.2. Books - E-Book 67

3.3.2.3. Books - Audiobooks 68

3.3.3. BOOKS SPECIFICATIONS OF THE SITE NRW 69


3.4. NEWSPAPERS 70

3.4.1. NEWSPAPERS MARKET OVERVIEW 71

3.4.1.1. Newspapers - Sales 71

3.4.1.2. Newspapers - usage data 73

3.4.1.3. Newspapers - value chain diagram 74

3.4.2. NEWSPAPERS - BUSINESS CHALLENGES 75

3.4.2.1. Newspapers - Declining advertising markets and circulation 75

3.4.2.2. Newspapers - Digitization 76

3.4.2.3. Newspapers - Acquisitions of Internet Companies 78

3.4.2.4. Newspapers - International Diversification 78

3.4.2.5. Newspapers - Concentration and Consolidation 78

3.4.3. NEWSPAPERS SPECIFICATIONS OF THE SITE NRW 79

3.5. MAGAZINES 81

3.5.1. MAGAZINE MARKET OVERVIEW 82

3.5.1.1. Magazines - Sales 82

3.5.1.2. Magazines - usage data 84

3.5.1.3. Magazines - Value Chain Scheme 85

3.5.2. MAGAZINES - BUSINESS CHALLENGES 85

3.5.2.1. Magazines - Declining Readership 86

3.5.2.2. Magazines - Digitization 86

3.5.2.3. Magazines - IPTV and Mobile Services 87

3.5.2.4. Magazines - international expansion 87

3.5.2.5. Magazines - Corporate Publishing 87

3.5.3. MAGAZINE SPECIFICATIONS OF THE SITE NRW 88

3.6. RADIO 89

3.6.1. RADIO MARKET OVERVIEW 90

3.6.1.1. Radio sales 90

3.6.1.2. Radio usage data 93

3.6.1.3. Radio - value chain scheme 95

3.6.2. RADIO BUSINESS CHALLENGES 96

3.6.2.1. Radio - digital radio 97

3.6.2.2. Radio - Podcasts 97

3.6.2.3. Radio - growth in the area 98

3.6.3. RADIO SPECIFICATIONS OF THE LOCATION NRW 98

3.7. FILM 100

3.7.1. FILM MARKET OVERVIEW 101

3.7.1.1. Film sales 101

3.7.1.2. Film usage data 103

3.7.1.3. Film - Scheme of the value chain 104

3.7.2. FILM - BUSINESS CHALLENGES 104

3.7.2.1. Film - Demographic Change 105

3.7.2.2. Film - change in value creation 106

3.7.2.3. Film - Digitization 106

3.7.2.4. Movie - Piracy 107

3.7.2.5. Film - Film Funding 107

3.7.3. FILM SPECIFICATIONS OF THE SITE NRW 108

3.8. GAMING 110

3.8.1. GAMING MARKET OVERVIEW 111

3.8.1.1. Gaming revenues 112

3.8.1.2. Gaming Usage Data 117

3.8.1.3. Gaming - Value Chain Scheme 119

3.8.2. GAMING BUSINESS CHALLENGES 119

3.8.3. GAMING SPECIFICATIONS OF THE LOCATION NRW 120


3.9. MUSIC / SOUND CARRIERS 122

3.9.1. MUSIC / SOUND MARKET OVERVIEW 123

3.9.1.1. Music / sound carriers - sales 123

3.9.1.2. Music / sound carriers - usage data 125

3.9.1.3. Music / sound carrier - value chain diagram 126

3.9.2. MUSIC / RECORDER - BUSINESS CHALLENGES 127

3.9.2.1. Music / Sound Carriers - Legal Download Services 128

3.9.2.2. Music / sound carriers - mobile music 129

3.9.3. MUSIC / SOUND SPECIFICATIONS OF THE SITE NRW 130

3.10. OUTDOOR ADVERTISING 132

3.10.1. OUTDOOR ADVERTISING MARKET OVERVIEW 133

3.10.1.1. Outdoor advertising - sales 133

3.10.1.2. Outdoor advertising - usage data 134

3.10.1.3. Outdoor advertising - value chain scheme 134

3.10.2. OUTDOOR ADVERTISING - BUSINESS CHALLENGES 135

3.10.3. OUTDOOR ADVERTISING - SITE SPECIFICATIONS NRW 136

3.11. ADVERTISING AND MARKET COMMUNICATIONS 137

3.11.1. ADVERTISING AND MARKET COMMUNICATION - MARKET OVERVIEW 138

3.11.1.1. Advertising and Market Communication - Revenues 138

3.11.1.2. Advertising and Market Communication - Usage Data 141

3.11.1.3. Advertising and market communication - value chain scheme 141

3.11.2. ADVERTISING AND MARKET COMMUNICATION - BUSINESS CHALLENGES 141

3.11.3. ADVERTISING AND MARKET COMMUNICATIONS - SPECIFICATIONS OF THE LOCATION NRW 142

3.12. MEDIA RELEVANT TECHNOLOGICAL DEVELOPMENTS 143

3.12.1. CONVERGENCE 143

3.12.2. MOBILE TELEVISION 143

3.12.2.1. 3G market 145

3.12.2.2. Mobile television North Rhine-Westphalia 146

3.12.3. BROADBAND CONNECTIONS - DSL 146

4. MEDIA LOCATION NORTH RHINE-WESTPHALIA 151

4.1. PUBLIC PROMOTION OF THE MEDIA INDUSTRY 151

4.1.1. EDUCATIONAL INSTITUTIONS 151

4.1.2. PUBLIC BUDGETS 152

4.1.2.1. Film Foundation NRW 152

4.1.2.2. Public Budget State Agency for media 154

4.1.2.3. Public budget of the City of Cologne 155

4.1.2.4. mediaForum NRW 155

4.2. LOCATION COMPARISON 156

4.2.1. EMPLOYEE STATISTICS AT STATE LEVEL 156

4.2.2. FILM AND TELEVISION PRODUCTION 160

4.2.3. LOCATION MARKETING AND LOCATION PROFILES 168

4.2.3.1. Bavaria 169

4.2.3.2. Berlin-Brandenburg 170

4.2.3.3. Hamburg 174


5. RECOMMENDATIONS FOR ACTION 176

5.1. RECOMMENDATIONS FOR CALLS: PROMOTING INNOVATION 176

5.1.1. ADDRESSABILITY OF THE USER / END CUSTOMER 176

5.1.2. ONLINE CONTENT AND BUSINESS MODELS (WEB 3.0) 177

5.1.3. MOBILE COMMUNICATION (HANDHELD) 177

5.1.4. GAMING 178

5.1.5. ENTERTAINMENT PRODUCTION 178

5.2. RECOMMENDATIONS FOR CALLS: FORMING STRUCTURES 178

5.2.1 CONVERGENT EDUCATION 178

5.2.2. ENTREPRENEURSHIP 179

5.2.3. INTERNATIONAL NETWORKING OF COMPETENCIES 179

5.2.4. AMBIENCE AND COMMUNICATION 180

5.3. CRITERIA FOR PROJECT FUNDING 181

5.4. CLUSTER ORGANIZATION 183

5.4.1. BASICS 183

5.4.2. STRUCTURE OF THE CLUSTER 184

6. REFERENCES 186

7. CONTACTS WITH EXPERTS 195

8. APPENDIX 196


1 Introduction

1.1. Basic idea of ​​the study mediaclusterNRW

Industry clusters offer competitive advantages for companies and business locations.

For the state of North Rhine-Westphalia, the mediaeconomy is an industry that

has a long tradition

in the last two decades of their intensive development of the country

Bringing competitive advantages over other German regions

Has

continues to be high-growth in the future, especially with regard to

the convergence of the media each other and the media with their

Transport routes

with the ICT - which is also strongly represented in the state of North Rhine-Westphalia

Industry in convergent interaction with new products and services

and new business models for the end customer

developed.

1.2. Aims of the study

1.2.1. Analysis of the future potential of mediaIndustry sectors

Chapter 3 of the study contains the following questions for the mediaIndustry sectors:

1. Economic question

How will the mediadeveloping sectors in Germany in the near future? Where

is there the greatest development potential? How are these conditioned and under which

Are the framework conditions accessible? This question arises with the individual

mediatreated under "Market Overview".

2. Business question

What are the challenges for companies? mediaIndustry sectors

in view of developments in the near future? These topics include opportunities

which can be taken and represent risks when running the company

does not develop further in line with the market. Location advantages result for an economic region

then, if the companies located there (or to be located)

(to be able to act) better than the competition in other locations. This business

Question becomes with the individual mediaindustries under “Entrepreneurial

Challenges ”.

3. Regional economic question

in the mediamarket in Germany, North Rhine-Westphalia takes the top spot. In front

the background of the previous economic and business management

Analyzes are the key features of the medialocation of North Rhine-Westphalia

named, also with exemplary reference to mediaCompanies. This question

will be with the individual mediabranches under “Specifics of the location NRW“Treated.

Because technological developments are one or the most important background for the media industry

Present opportunities (as a necessary but not sufficient condition),

these are presented across all media sectors (see especially

Point 3.12).

memi-Institute, mediaclusterNRW 9


1.2.2. situation medialocation North Rhine-Westphalia

In addition to the regional economic characteristics of the individual mediaIndustry sectors

will the mediaNorth Rhine-Westphalia as a cross-sector location in Chapter 4,

namely in relation to

10

• Public funding of mediaeconomy

• Location comparison

When comparing locations, the employment statistics form the basis for the inventory.

The promotion of film and television production as well as location marketing

highlighted specifics are the essential differentiating

Factors in the media-Economic policy of the German mediaLocations.

1.2.3. Recommendations for action for the mediaclusterNRW

The recommendations for action (Chapter 5) are based on the basic ideas of the cluster policy

and from the framework conditions of cluster funding (see Chapter 2).

They therefore contain

• Topics for "calls" (competitions for funding)

• Criteria for project funding

• Suggestions for cluster organization

1.3. Methods and Sources

The scope of the answers to the questions to be investigated by the study is limited,

because with the State Chancellery NRW defined for reasons of research economy

that the study was based - initially - on secondary analyzes of pre-existing ones

Studies limited and no original surveys should be carried out.

It is therefore the task of the study, based on the situation analyzes and future prognoses

of the analyzed studies, concrete options for action for the mediaLocation

NRW to develop. For this purpose, around 50 sources were viewed, which are in the bibliography

are documented. Options for action for mediacompanies in North Rhine-

Westphalia essentially result from developments in the German market.

Its perspective is addressed by a large number of studies. In comprehensive

and systematically this is done in the audit firm's study

PricewaterhouseCoopers (PwC) “German Entertainment and Media

Outlook 2007-2011 ". To have a consistent view of the overall market and

To allow submarkets, the structure of this study was therefore used as a structural framework

for the representation of the mediaeconomy. The methodology of the

PwC study is attached in the appendix.

For the classification of results and especially for individual ones mediaIndustry sectors

Empirical, analytical and evaluative statements from other studies were used

and incorporated into the scaffolding. These are characterized, among other things, by an even more differentiated

development-specific analysis. You relativize or correct

partly also the substantive assumptions of PwC. They also allow the

display of mediaindustries that use preliminary products (such as film and television production,

Advertising content). They also deal with new technical requirements

(e.g. cellular network). Such topics were not ignored at PwC,

but subordinate to the systematics oriented towards distribution media. This is logical, would come

Otherwise one can count on a double counting of sales (e.g. TV production

and advertising revenues). The one for one medialocation-relevant preliminary products

memi-Institute, mediaclusterNRW


therefore outside of this at media-External sales-oriented framework separately

considered.

The future potential of each mediabranches are in the respective part

"Market overview (3.x.1.) Presented quantitatively (economically), supplemented by a

schematic representation of the industry-specific value chain. In the respective

Part "Entrepreneurial Challenges" (3.x.2.) They are qualitative (business management)

analyzed. This is the quantitative and qualitative starting point

described for competition - be it competition between companies

or the competition between locations. The part “Specifics of the location NRW

(3.x.3.) Deals with characteristics of the location North Rhine-Westphalia for the relevant one

mediaindustry, insofar as these are recorded in existing studies. Deliver the three parts

thus the information base for recommendations for action on different levels of observation

for location development.

The classifications and evaluations of this study also refer to the findings

Expert discussions. The list of experts involved in the communication

is in the appendix. These contacts took place at different times

and generally concerned selected sub-topics of the study.

The basic ideas of the analysis of the mediaindustries as well as the recommendations for action

were discussed in industry hearings at which the State Chancellery of North Rhine-Westphalia

Westphalia had invited in September 2007.

This study was completed in December 2007.

memi-Institute, mediaclusterNRW 11


2. mediacluster

2.1. definition mediaclusterNRW

This study distinguishes between coremediaindustries (such as books, television) and media-

Related industries (such as printing, IT). In parlance, the core

mediaindustries often also "the" mediacalled branch. As "mediaclusterNRW" should

those segments of the coremediaindustries and the media-Environmental industries

are designated, their neighborhood and interaction at the location

particularly characterizes and strengthens.

This study does not give a final definition, but makes recommendations for it

Priorities. The "mediaclusterNRW“Will develop through the activities

or further develop the "recommendations for action" (Chapter 5)

in conjunction with existing mediaoffered to emerge. The mediacluster Are defined

"Itself" in such a way that mediaundertake with each other and in competition

develop to each other, for which the funding system provides incentives to a limited extent

can create.

2.2. Clusters as an economic location advantage

More recently, the competitive advantage of clusters is in the frequently cited book

"The Competitive Advantage of Nations" by Michael E. Porter, Professor at Harvard

Business School, studied and presented. 1

Regardless of the empirical verifiability, which are not examined in more detail here

can, the basic idea can be ascribed intuitive plausibility (to this

The “Goldschmiedegasse” and the guilds are part of the intuitive dimension

Micro-locations in the medieval city).

The following quote opens up a definitional approach: “Is in relation to a product

or a product group is a regional concentration of actors and competencies

present, we speak of a cluster. Clusters can be both material

Grouping and re-grouping product lines such as mechanical engineering or the automotive industry

Services such as insurance and finance. The cluster approach is increasing

also for products and services of the new economy like mediaeconomy, telecommunication services,

Software or biotechnology and genetic engineering interesting. always

Clusters can also be found more profiled in production chains of the apparently "old"

Industries. Individual cities and regions can have a concentration of competencies

in one or more economic sectors. The competencies are

partly not clearly recognizable, e.g. because the parties involved are not aware of them. The concentration

on the development or promotion of these clusters offers the possibility of

to create an individual profile of the location or an innovative environment for the

To promote companies and thus make the location attractive for new settlements. "

Relevant for the success of a cluster include: “The proximity to key consumers

and specialized suppliers and service providers, the possibilities of a direct

Exchanges with universities and research institutions, the concentration of qualified

Workforce and the possibility of direct (informal) contacts and last but not least

the pressure to innovate created by neighboring competitors. "2

1 Porter, 1998.

2 Grote Westrick & Müller, 2003, p. 159.

12

memi-Institute, mediaclusterNRW


2.3. Cluster as a category for regional economic development

in NRW

Based on the government declaration by Prime Minister Dr. Jürgen Rüttgers

from July 2005 the state government is pursuing the goal of existing regional clusters

to make it visible beyond North Rhine-Westphalia and to promote its development

as well as the profile-building clusters of North Rhine-Westphalia as "NRWCluster "especially

to highlight. “This is intended to strengthen strengths.” The cluster policy is

important component of both the innovation strategy and location marketing and

Economic development strategy of the state government, which takes the view:

"Economic progress and the development of new technologies work today

in networks. The state cannot prescribe this, but it can specifically promote and moderate it. "

“In addition to private and federal funds, the cluster policy is financed by the NRW-

EU Objective II program 2007-2013. The funds are usually allocated through competitive procedures,

basically in the form of start-up financing. This is reduced

the financial support in the following years and is tied to the following criteria:

• Clear, manageable and measurable goals that are based on the needs of companies,

Universities or educational institutions orientate themselves and those involved

Informed the stakeholders before submitting the application;

• Success control and measurement are provided for in all approval notices.

• All NRW- Clusters are checked every three years and if necessary

adjusted. "3

In addition, there is a clustermanagement planned the positions for this

are initially filled for a period of three years.

One of 16 clusters is the mediasector "NRW.media“As part of the lead market

"Knowledge-intensive production and service".

3 The state government of North Rhine-Westphalia, 2007, p. 2.

memi-Institute, mediaclusterNRW 13


3. Future potential of the mediaIndustry sectors

This study analyzes the future potential of mediaindustries under economic,

economic and regional economic aspects.

The current market overview and possible or likely future developments

For reasons of research economics, they are not included in the agreement

originally collected, but worked out as a secondary analysis of existing studies.

As an outline for the mediaThe study “German Entertainment

and Media Outlook 2007-2011 ”from PricewaterhouseCoopers (PwC)

placed. The order of the treatise of each mediaindustry is aimed

based on PwC's 2011 sales forecast for the individual mediaIndustry sectors

in Germany (see Fig. 1).

For the classification of results and especially for individual ones mediaIndustry sectors

further studies were used. These are characterized, among other things, by an even more differentiated

development-specific analysis.

The classifications and evaluations of this study also refer to the findings

Expert discussions. The list of experts involved in the communication

is in the appendix. These contacts took place at different times

and generally concerned selected sub-topics of the study.

A more detailed presentation of the method can be found in section

1.3. "Methods and Sources".

In the following, the German market overview shows that the mediaindustries since

Developed differently in 2002. For the period up to 2011

different developments are expected (see graphic below). The market growth

is expected above all from the areas of "Internet" and "TV", such as

the table below is analyzed.

In the area of ​​"Internet" according to the PwC definition, however, differentiations are necessary,

especially in the distinction between transport services and content (see

Section 3.3. "Original onlinemedia“).

14

memi-Institute, mediaclusterNRW


Fig. 1: Market overview Germany - sales of media

(based on PricewaterhouseCoopers, 2007)

Market overview Germany

after growth in € million

Fig. 2: Market overview Germany

(based on PricewaterhouseCoopers, 2007)

memi-Institute, mediaclusterNRW 15


3.1. watch TV

3.1.1. TELEVISION - MARKET OVERVIEW 17

3.1.1.1. TELEVISION SALES 18

3.1.1.2. TELEVISION USAGE DATA 20

3.1.1.3. TELEVISION SCHEME VALUE CHAIN ​​21

3.1.2. TELEVISION - BUSINESS CHALLENGES 22

3.1.2.1. TELEVISION - DECLINING ADVERTISING MARKET 22

3.1.2.2. TELEVISION DIGITIZATION 23

3.1.2.3. TELEVISION -PAY-TV 24

3.1.2.4. TELEVISION TRIPLE PLAY 24

3.1.2.5. TELEVISION -IPTV 26

3.1.2.6. TELEVISION -MOBILE-TV 28

3.1.3. TELEVISION - SITE SPECIFICATIONS NRW 28

16

memi-Institute, mediaclusterNRW


3.1.1. Television - Market Overview

The television market in Germany is changing. On the basis of digitization

Production and sales functions create new broadcast formats and

Sources of income.

In addition, new sales channels are opening up on the television market. Both over the internet

TV programs can be received as well as via the mobile radio device.

Video-on-demand offers are also increasingly entering the market.

The technology-based new offer possibilities generate in individual industry segments

partly opposing effects.

Initially, there were competition-relevant changes in the German television market

by giving the Bundesliga television rights to new market participants for the first time

were sold. “The change resulted in significant changes

the Bundesliga television rights from Premiere to Arena, a subsidiary of the cable company

Unity Media “4 in 2006. However, the business model of Arena has turned out to be

not proven successful. After the negotiations between Arena and Kabel Deutschland

(approx. 10 million cable customers at network level) through joint marketing

failed, Premiere stepped in and secured the supply of Kabel Deutschland customers

with Bundesliga live. Premiere also took over the marketing for satellite customers.

However, after the Cartel Office intervened, it was again

exposed. Since July 2007 it has been certain that the next two will be premiered

Seasons until June 30, 2009 will again have sole broadcast rights. over

Arena grants the Munich-based company a sub-license approved by the Federal Cartel Office

Pay stations granted the significant exclusive rights to the Bundesliga. The South German

writes in an article dated July 5, 2007: “The Arena transmitter is practical

tot (...) The establishment of a second pay-TV channel in Germany alongside Premiere

and thus a new competition would have failed. "5

These processes each led to dramatically changed supply structures within months

in the German pay TV market. From this it becomes clear that the potential of

Pay TV are still in a practical test phase.

Part of this test will certainly also be a new marketing concept from the German

Football League (DFL), which with the mediaentrepreneur Leo Kirch and his newly founded

Sirius agency negotiated a contract for the period from 2009 to 2015

Has. Within this planning period, certain prerequisites are met annually

checked and the agreement can also be terminated annually.

This marketing concept includes the provision of ready as a new element

produced broadcast material for customers. 6th

Pay TV is facing strong competition from free TV in Germany. PwC

includes under the term Pay-TV the fees for the analogue or digital cable connection,

all other subscription expenses for cable and satellite services as well

classic subscription television, such as that offered by Premiere, for example.

This is because of the gradually increasing price component “content” within the cable revenues

also conclusive. Due to the increase in new free television channels

and special interest channels will be the market for subscription TV in the next few years, according to PwC

impaired.

Cable operators and telecommunications companies are expanding in mediaArea

Television for a short time both the number of contestants as

also the intensity of competition and offer their own television channels and programs.

The competition between cable providers and telecommunications companies

4

PricewaterhouseCoopers, 2007 p. 45.

5

Busse, 2007, p. 1.

6

Kornfeld, 2007.

memi-Institute, mediaclusterNRW 17


take increases. The focus of the competitive disputes is the bundled

Internet, telephony and television services, triple play (see also

3.1.2.4. "Triple Play").

3.1.1.1. Television sales

In the PwC system, television revenues include television fees for

public broadcasters, net advertising income, consumer spending

for subscriptions to cable and satellite services and expenses for video-on-

Demand and pay-per-view offers. 7th

The German television market saw the greatest increase in sales in 2006 with growth of 4.1%

recorded since 2000. Overall, sales are expected to increase

of the television market from 12.16 billion euros in 2006 to 14.644 billion euros a year

2011 increase. This corresponds to an average annual growth of 3.29%

in the years 2002 to 2011 or a growth of almost 2.5 billion euros in the

Forecast years 2006 to 2011. 8

Fig. 3: TV market overview

(based on PricewaterhouseCoopers, 2007)

In the television market, license fees account for 37% of the total market

largest sales segment. From 2002 to 2011 will be an average annual

Forecast of an increase of 1.72%. The biggest growth driver is expected during this period

6.7% would be subscription and pay-TV television. With an annual

Growth of 7.4% in the forecast years 2007-2011 will result in revenues of

Increase EUR 3.536 billion in 2006 to EUR 5.064 billion in 2011. Also the advertising revenue

can enter with an average of 2.01% p.a. between 2002 and 2011

record slight growth.

7 PricewaterhouseCoopers, 2007.

8 PricewaterhouseCoopers, 2007.

18

memi-Institute, mediaclusterNRW


Fig. 4: TV market overview

(based on PricewaterhouseCoopers, 2007)

The total sales volume of the television market will be in the years 2007 to 2011

increase by 3.8% annually. This is particularly evident from the strong growth

influenced in the area of ​​subscription and pay-TV. TV expenses

Subscriptions in the cable and satellite area as well as pay-TV are in the year 2006 despite

a decrease in subscribers by 5.6%.

In the future, the increasing number of available digital

Channels and, due to the increased capacity of the market, also the pay-per-view potential

increase. However, pay-per-view also played in 2011 with a volume of 25

Million euros only play a subordinate role. For the pay-per-view market it will be over the years

From 2007 to 2011 only moderate average growth of 4.6% p.a. is expected.

Fig. 5: TV market (in million euros)

(PricewaterhouseCoopers, 2007, p. 44)

According to PwC forecasts, television advertising in Germany will be reduced in the forecast period

2007-2011 grow by an average of 2.8% p.a.

memi-Institute, mediaclusterNRW 19


Fig. 6: TV advertising (in million euros)

(PricewaterhouseCoopers, 2007, p. 55)

In 2006, spending on basic services (such as the cost of the analog

or digital cable connection) and pay TV by 5.6% to 3.5 billion euros. "The combination

multiple channels to a basic service, new HD channels and a growing one

Number of premium TV subscribers [in the years 2009–2011] will increase

Increase in average annual spend per subscriber. We

expect 7.3 percent growth for 2007, followed by gains of more than 6

Percent in 2008 and 2009 and moderate increases in the following periods.

In 2011 a subscriber averages 247 euros per year respectively

Spend 20.58 euros per month, which corresponds to an average rate of increase

from 6.3 percent to 2011. In 2006 a subscriber paid an average of 15.19

Euro per month than about 182 Euro per year. ”9

By 2011, the market volume is expected to grow to around 5 billion euros.

This corresponds to an average annual growth rate of 7.4% in

the years 2007 - 2011.

Fig. 7: Expenditures for basic services and pay TV (in million euros)

(PricewaterhouseCoopers, 2007, p. 57)

3.1.1.2. Television usage data

In 2006, the average viewing time per day for viewers was 212 minutes

total and 184 minutes for viewers between 14 and 49 years of age. In order to

TV usage has increased slightly over the past few years, so TV

is still the most widely used medium today. The additional time invested for the

Obviously, internet use does not seem to limit the television time budget.

10

9 PricewaterhouseCoopers, 2007, p. 56.

10 TV Research Working Group (AGF), 2007.

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Fig. 8: Development of the average viewing time per day / person in minutes

(Working Group on TV Research (AGF), 2007, p. 1)

3.1.1.3. Television - value chain scheme

The value chain in the mediaIndustry television can be divided into four

Subdivide the value chain. The first stage is about the content

Procurement. The required technology and the required personnel as well as the appropriate ones

Content such as scripts, articles or films must be procured. in the

The second step is the production and aggregation of the content. The TV shows

must be produced or purchased through rights trading. "The

Compilation of individual contributions and programs for the program that

Program design “11 and the integration and placement of advertising form the

third stage in the value chain. The ones with others media fourth stage that

technical production, is not necessary with television, since the program is only through the

Transmission process itself is "duplicated", i.e. not materially bound. In the

Distribution, the television program is partly encrypted via various channels

Platforms to the recipient. When packaging the products, the importance of the

The Web 2.0 phenomenon is becoming apparent and is accordingly shown as an arrow in the following

Figure noted. The television broadcasters are also increasingly using Internet portals to

to use their broadcast programs again in small clips and that

Viewers on the one hand to create added value and on the other hand more closely to the

to bind your own program. In the future, triple play will take on a distribution

important position.

11 Wirtz, 2006, p. 357.

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Fig. 9: Value chain - film and television

(based on Wirtz, 2006)

3.1.2. Television - Business Challenges

In the future, the television landscape will be between large, high-reach and financially strong

Programs - and the associated high advertising attractiveness - as well as specialty offers

polarized with a clear target group and suitability for subscription

become. 12th

Three factors will be of crucial importance: First, an amplified one

Cross-branding and marketing based on the already established brands, for

Second, the marketing of suitable content via various distribution channels

and thirdly, the development of a larger and more individual customer understanding,

to intensify customer relationships and use them more effectively. 13th

3.1.2.1. Television - saturated advertising market

Even if the advertising revenues of the television stations in the years 2004 to 2006 after

Having recovered slightly from sharp declines in previous years, they went long-term

for economic reasons but also because of the maturation of the TV market

back. The television stations are also under increasing cost pressure.

“Although advertising revenues are still at a relatively high level, they are

have the cost of licensing rights through competition from public and

private broadcasters who accompanied the emergence of professional rights agencies

was, significantly increased. This applies primarily to the rights to audience-effective

Sports. "14

For this reason, too, private broadcasters have to - in a rather stagnant manner

Advertising market - to fall back on new forms of advertising and thus sources of revenue and financing.

An example of this is the television channel 9Live, which is almost exclusively

Financed through the "call-in income". "The Transaction TV segment [9Live]

12 Mercer management Consulting, 2006.

13 Mercer management Consulting, 2006.

14 Ernst & Young, 2005, p. 147.

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achieved total sales of EUR 95.8 million in the 2006 financial year "15,

the operating profit (EBITDA) was EUR 26.5 million.

Join-in programs are booming across the television landscape. The

Most commercial broadcasters make use of the toll phone numbers

use as a source of revenue. 16 According to a study by mediaconsulting firm

Goldmedia amounts to sales through telephone value-added services in the year

2005 to 450 million euros. “In the television sector, the share of value-added services

increase in sales to up to twelve percent in the next few years, ”predicts Dr.

Klaus Goldhammer, managing director of Goldmedia. 17th

Another new source of income on television is teleshopping. Even with the big ones

Private broadcasters who reach an enormous customer potential due to their high reach,

Teleshopping has now become an integral part of the program, at