The reach of the recession has also extended to the German broadcasting industry. By the fourth quarter of 2008, the impact of the troubled economy on the industry’s figures was unmistakable. Further declines can be expected for 2009. Free-TV providers anticipate revenue loss of eleven percent, and pay-TV providers one percent. Private radio providers expect revenue loss of nine percent compared to the previous year. In contrast, teleshopping channels’ revenues are on the rise, with a six percent increase.

These results are reported in “The economic situation of German broadcast”, a study commissioned by eight state media regulatory authorities, led by the Bavarian Regulatory Authority for Commercial Broadcasting (BLM).

A complete survey of all private broadcasters in Germany measured a 2.2 percent increase in costs and a seven percent decline in ad revenue in 2008. The losses were tempered by gains from other revenue sources, so that total revenue in private broadcast in 2008 only sunk 3.3 percent, to 8.02 billion. Private broadcasters generated profits of 713 million euros in 2008, falling 38 percent from 2006. Private television experienced most of the profit decline, with private radio’s profits remaining stable.

The results of the study were presented in Düsseldorf on November 30th, 2009 in a workshop entitled “Who can still pay?”. The event was hosted by the Regulatory Affairs Commission (ZAK) and the Bavarian Regulatory Authority for Commercial Broadcasting (BLM). Goldmedia was commissioned as a contributor to the study to gather data for and produce the television report. The study was commissioned by the state media regulatory agencies of Bavaria (BLM), Baden Württemberg (LfK), Berlin-Brandenburg (mabb), Hessen (LPR), Hamburg/Schleswig-Holstein (MA HSH), North Rhine-Westphalia (LFM), Rheinland-Pfalz, and Saxony (SLM).


Summary of key findings:

• Free TV decreased its share of classic advertisement in favor of alternative revenue sources, such digital pay-TV channels, teleshopping, online games, and licence trade. Free-TV providers generated more than 900 million euros through alternative revenue sources in 2008, a share of 20 per cent.
  
  
• Online revenue remains marginal, accounting for 3.3 percent of total revenue, or 252 million euros, for private TV broadcasters in 2008; 0.7 percent or 4.6 million euros for German radio broadcasters; and 0.6 percent or 0.5 million euros for regional TV providers. The radio industry estimates that the share of online revenue will rise to 6.5 percent in the next five years; TV providers anticipate a share of just under nine percent in 2013 (local TV: six percent).
  
  
• The majority of private TV providers in Germany, especially in pay TV, expect the end of the economic crisis by 2011 (46 percent). A fifth expect the end by 2010, and another fifth by 2012. Just 15 percent believe recovery will come in 2013 or even later.
  
  
• Despite growth among private companies, overall employment in the broadcasting industry has shrunk slightly since 2005 (2005: 75,537 employees; 2008:74,914 employees).
  
  
• The position of publicly-regulated broadcasters has strengthened relative to private broadcasters as a result of the advertising crisis. ARD, ZDF, and Deutschlandradio had combined revenues of 8.6 billion, compared to 6.5 billion euros for private broadcasters (excluding Teleshopping).
  
  

The complete research report with a comprehensive look at the individual sectors within television and radio and detailed state-specific reports will be published at the end of 2009 under the title “Wirtschaftliche Lage des Rundfunks in Deutschland 2008/09” (“The economic situation of German broadcast 2008/2009”).

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