FRANCE: Independent radio stations in alarm

SIRTI, the union of independent radio stations, brings together 172 French independent, local, regional, thematic and generalist radio channels.
SIRTI, the union of independent radio stations, brings together 172 French independent, local, regional, thematic and generalist radio channels.
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Radio stations in France have also been hit hard by the impact of Covid-19 according to SIRTI, the union of independent radio stations, that has been monitoring the situation by carrying out monthly surveys. Up to April 2020 75% of the radio stations had not applied for the advantages of the ‘partial employment’ scheme (teleworking is not viable for 50% of the staff) because of the bureaucratic procedures being too complicated according to 39% of the respondents. No one had been dismissed (the 112 members in the survey answered) but if the crisis was to last longer, 55% planned to apply for aid from the solidarity fund that has been set up for businesses. More than half of the respondents did not have the resources to face further financial difficulty. After recording a drop of 56% in advertising in March (-32% for the national radio stations) a collapse was foreseen in April: -78% (-75% for national broadcasters).

The situation worsens

The radio stations in SIRTI have 9 million listeners on an average day, employ 33% of people working in the sector and have 25% of total radio advertising
The radio stations in SIRTI have 9 million listeners on an average day, employ 33% of people working in the sector and have 25% of total radio advertising
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In the second survey carried out in May 2020, 72% were not confident of resuming normal business quickly, and 38% believed that the crisis could jeopardise businesses in the short term. A return to normality, according to 95% of the respondents, would not happen before the beginning of the academic year, and for 21% not before the beginning of 2021. The reason for this was because advertisers, having been hit hard during the crisis, either cancelled their advertising campaigns or negotiated lower prices. More than one out of two radio stations have had to apply for bank loans and one in three has applied for aid from the solidarity funds or other means of support.

Cutting personnel is inevitable

During the pandemic radio stations increased the amount of information given out, supported French artists, contributed to social cohesion and entertained those at home in lockdown. They promoted solidarity and raised funds. They also broadcast free commercial spots giving useful information to the public for a value of €6.5 million
During the pandemic radio stations increased the amount of information given out, supported French artists, contributed to social cohesion and entertained those at home in lockdown. They promoted solidarity and raised funds. They also broadcast free commercial spots giving useful information to the public for a value of €6.5 million
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In order to curb the number of dismissals, radio stations are considering implementing the partial employment scheme to balance their books and 32% predict extending this policy to the end of August 2020. 36% have not renewed or have terminated fixed-term contracts and have terminated employment for those employees working probationary periods. However these measures are not sufficient and if financial aid is not available by the end of the year, each radio station will most probably have to cut between one to three jobs. Due to the crisis there will be a reduction in events and concerts. 41% of radio stations predict reducing the number of events they organise at local levels.

Requests to the government

The pandemic has brought broadcasters to their knees. 38% consider that their businesses will be in danger shortly, 95% believe that a return to normality will not be seen before September 2020 and 75% will have to reduce personnel
The pandemic has brought broadcasters to their knees. 38% consider that their businesses will be in danger shortly, 95% believe that a return to normality will not be seen before September 2020 and 75% will have to reduce personnel
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In June 2020 SIRTI estimated that three out of four radio stations will have to cut jobs in the next few weeks. Annual revenues from advertising could be down by at least 25% (€35 million) according to a more optimistic prognosis but could drop by €45 million if investments in advertising does not restart at the beginning of the academic year. The union is asking for a waiver of the last three months payment of both the employee’s and employer’s social security contributions. This is believed to amount to €10 million which could compensate for about a third of lost revenues.

Media groups making moves

Even in the midst of a global crisis, deals continue to happen. French mass media conglomerate, Vivendi, recently acquired 10% of Lagardère; a move that helped to strengthen the French position in the market. Following Vivendi, Groups Arnault also enters into Lagardere.
In Italy, the Agnelli family holdings company sealed the deal on the acquisition of Gedi, endowing them with three radio networks.

Arnauld Lagardère, CEO, article from Le monde, France
The French daily newspaper, Le Monde, reports tension between the Amber Fund and the management of Groupe Lagadere
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After acquiring the initial 10% in Lagardère, in May 2020 Vivendi increased its shareholder equity to 16.4%. The move strengthens the position of Arnauld Lagadère, in control of the group, that had just foiled the attack of the Amber fund. The firm, and Lagardère’s biggest stakeholder, had accused him of bad management and wanted to change directors.

corriere della sera, article about group anfault
Three weeks later Groupe Arnault, the holding company of Bernard Arnault (the majority shareholder of the Following the sudden death of the founder Jean-Luc in 2003, the multimedia empire Largardere was significantly downsized, as this article in the Italian daily newspaper, Corriere della Sera, explains very well
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After the sudden death of Lagadère’s founder, Jean-Luc, in 2003, the multimedia empire has since shrunk. The following quote from Italian newspaper, Corriere della Sera in the article ‘Francia, Sarkozy e Bolloré salvano (per ora) l’erede del regno Lagardère’ sums up the move well:
‘This acquisition is a long-term financial investment reflecting Vivendi’s confidence in the future prospects of the French group which enjoys international leadership positions in its businesses and which, like many others, is experiencing difficult times at the moment.’

Article about Vivendi acquiring 10% of Lagardère
The Vivendi press release explains the motivations for the purchase 
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To give some context to Vivendi’s owner, Vincent Bolloré is an accomplished leader. In December, 2016, he attempted to buy out the Italian Mediaset channel (publishing, three TV networks, pay TV and five radio stations), gaining up to 25.75% of the share capital and 26.77% of the voting rights.    

About Vivendi, being an integrated content, media and communications group
Vivendi, an integrated content, media and communication group, has interests in discography (Universal Music Group), pay TV (Canal+), publishing (Editis) and games (Gameloft)
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Change of ownership for Italian radio networks

Exor group purchasing Gedi
Exor, the holding company of the Agnelli family, not only controls the group FCA but now it also controls the Gruppo Editoriale Gedi, that was formed by a merger of the editorial groups of the daily newspapers La Stampa and La Repubblica
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With the purchase of Gedi by the Exor group, three radio stations, (m2o, Radio Capital and Radio Deejay) will be passed onto the Agnelli family holdings company. 
Based in the Netherlands, Exor has a capital worth € 24 billion. In addition to owning Ferrari, they are also the largest shareholder of the FCA-Fiat Chrysler Group

The Covid-19 bill

Cuts for five major broadcasters in Europe are on their way. While in Italy some radio stations are asking their listeners for help.

Austria: ORF is cutting outgoings

APA News reporting on Horizont about Austria's ORF planned cost cutting due to Covid-19
APA News reporting on Horizont about Austrians ORF’s planned cost cuttings
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The director general of ORF, Alexander Wrabetz, has announced cuts of € 75 million are to be made by the end of 2021. These will be implemented in all areas in the company, from equipment to the cost of personnel. This year the broadcasting station is predicting losses that go from a minimum of € 28.6 million to up to € 54 million, should the worst scenario play out. The budgets allocated for major events will not be touched (€ 40 million for the rights of the European Football Championship and the Olympics). This is also the case for other investments which include digitalisation. Click here for more details from the article on Horizont.

France: Cost cutting plans for the public radio causes controversy

Radio France cutting costs for radio broadcasting due to the Coronavirus pandemic
Report on Le Figaro.fr
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Cuts in the budget had already been decided on in 2018, in a period long before the present crisis. The Government had demanded a reduction of € 190 million in funds to public broadcasters (by 2022). € 20 million of spending cuts were destined for Radio France and in 2019 the CEO Sibyle Veil had prepared a plan that involved cutting 250 jobs. This provoked the longest strike in the history of public radio. The strike lasted 63 days (in total) during the end of 2019 and the beginning of 2020. The trade unions consider the cuts unjustified and after a period of truce due to the Covid-19 crisis, the unrest could restart. 

Germany: NDR raises the crossbar by € 60 million

NDR, Norddeutscher Rundfunk, cutting costs due to coronavirus.
NDR logo located in Osnabrück
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The German broadcasting company Norddeutscher Rundfunk, NDR, wants to cut € 60 million more than the € 240 million that had been already decided on for the next four years.
The director, Joachim Knuth, is not going to reduce personnel but will not be employing new staff for 200 vacant positions. Furthermore, programmes and a series of events will be cancelled. Among those to go are crime series, entertainment and game shows on TV. Click here for more details from the article on Der Spiegel.

Italy: Onda d’Urto is banking on subscriptions

Radio Onda d'Urto has launched a campaign for subscriptions to compensate for the missing revenues
‘Take care of the black cat’
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Radio Onda d’Urto in Brescia has launched a campaign for subscriptions to compensate for the missing revenues caused by the probable cancellation of the Festival of Radio Onda. The event, that is to be held in August, is the main source of finance for the broadcaster and even if it is not cancelled, it will be much smaller.

United Kingdom: £ 125 million have gone ‘missing’ at the BBC

BBC needs to make 125 million pound sterling savings this year due to the coronavirus crisis
BBC TV studio
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The coffers of the public broadcasting station, BBC, are down £ 75 million due to
a delay: Listeners over seventy five were due to pay TV fees from June 1st, 2020, but this has been postponed to August 1st, 2020. This amount rises further because of losses caused by a drop in advertising and the postponement of a plan to reduce the workforce by cutting 450 jobs. According to the director general, Tony Hall, the cuts need to total £ 125 million. Upper management salaries will be frozen until August 2021 and a freeze will be put on all recruitment that is not indispensable. Other TV stations are not doing any better. ITV, free-to-air, has made a cut of £ 100 million to their budget and Channel 4 (a public broadcaster) has made a cut of £ 150 million. Further details can be found here.

Spain: SER cuts cost of personnel

the Spanish network, Cadena SER, is reducing cost of labour. Article from inertia, el espanol.
Cadena SER radio studio in Madrid
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Spains main network, Cadena SER, owned by the Prisa group (they own the daily newspaper El Pais and have business interests in 24 countries) is reducing the cost of labour. Of the personnel employed by the radio, 256 workers have been laid off until July 12th, 2020, (on unemployment benefit) while another 924 have a salary reduction of 10% until December 31st, 2020. Cadena Ser has 202 stations and the Prisa group also owns Cadena 100 and Los 40 Principales.
Click here for details in the article of El Español.

Covid-19 and Radio: Situation in France, Spain and Italy

Wireless, a programme produced by John Walsh on Flirt FM in Galway, 101.3 FM, is back with a special edition on the crisis, that radio is facing because of the pandemic. They are presenting an overview of how European broadcasters in France, Spain and Italy are dealing with the impact that the crisis is having on radio stations. Their previous transmission covered the situation in Ireland which we spoke about in one of our recent articles.

Click here to listen to the Wireless podcast.

Wireless, programme on Flirt FM in Galway, their blog, where one can listen to their podcast
Wireless Flirt, Radio about Radio from Ireland
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