A View on media concentration 2002 – 2006

Five years of research in the Dutch market

EPRA - Prague, May 17 2007

Quint Kik

Researcher Monitor Media Concentration

Contents

• 1.Background Media monitor• 2.National characteristics• 3.Ownership structures• 4.Media markets• 5.Crossmedial news market• 6.Temporary Law Media Concentration• 7.European Media monitor?

1.Background information

• Established May 2001• Specialized research unit on media concentration• Consequences for plurality & diversity (Ministry EAS)• Media markets & ownership structures• Daily newspapers, television, radio & internet• March 2002: 1st vol. “A View on media concentration”• Oct 2003: www.mediamonitor.nl• Oct 2005: 4th vol. “A View”, focus on news market• June 2007: temporary law on media concentration• Sept 2007: 6th vol. “A View”

2.National characteristics

• Population: 16,5 mln• Randstad (conurbation)• GDP 2005: € 506 bln• Cable transmission ca. 90%• PC ownership 79% / (broadband) internet use 76%• Long time analysis media use 1975 - 2005

print: 3.8 hours a week (1975: 6.1)audio: 0.5 (2.2)television: 10.8 (10.2)internet: 3.8 (1985: 0.1)

3.Ownership: TMG

Divisions fornewspapers,Freesheets,Door-to-doorpapers and magazines

Shares inradio,televisionandinternet

4.Market overview: daily newspapers

Type of

Newspaper

Share (%) /

no. of titles

Market leader

2nd ranking group

C2 (%)

National 34

7

Telegraaf Media group

PCM Publishers

94.4

Regional 37

19

Royal Wegener

NDC / VBK 66.4

Combi-nation

11

1

AD - 100.0

Specialized 2

4

Financieele Dagblad

SDU

Publishers

88.9

Freesheets 6

3

Metro Telegraaf Media group

97.5

Number of publishers and newspaper titles

0

10

20

30

40

50

60

70

80

90

publishers

titles

Market overview: television

Type of broadcaster

Share (%) /

no. of channels

Market leader

2nd ranking group

C3 (%)

(incl. PSB)

Public 35

3

PSB - -

Private 54

16

RTL Netherlands

SBS Netherlands

74.9

Other 11

-

- - -

Number of broadcasters and tv channels

0

2

4

6

8

10

12

14

16

18

20

broadcasters

channels

Market overview: radioType of broadcaster

Share (%) /

no. of channels

Market leader

2nd ranking group

C3 (%)

(incl. PSB)

Public 44

7

PSB - -

Private 50

15

ING / Telegraaf Media group

Talpa Media 76.8

Other 6

-

- - -

Number of broadcasters and radio stations

0

5

10

15

20

25

broadcas ters

s tations

5.Change of focus

Media monitor 2001-2004:

media value chain (production-packaging-delivery)

• Research based on secondary sources• Economic power, focus on suppliers• Media markets individually

Plurality / diversity issue?

The news market

Media monitor 2005 - now:

news market (outlets, editorial units, diversity & reach)

• Research based on primary sources • Opinion power, focus on content• Crossmedia approach

2004 paper

use (%)

tv

use (%)

radio

use (%)

total news

% total

news

reach

PSB 0 38.3 44.3 82.6 26.0 57.5

ANP 0 0 0 0 17.0 37.6

RTL 0 24.1 5.4 29.5 13.0 28.8

TMG 30.4 0 0 30.4 12.8 28.3Wegener 28.6 0 0 28.6 9.7 21.3

PCM 27.4 0 0 27.4 8.2 18.2Sky Radio 0 0 17.4 17.4 0 0

SBS 0 16.8 0 16.8 0 0Radio 538 0 0 11.6 11.6 0 0

Talpa 0 0 9.5 9.5 0 0

Other 13.6 20.8 11.9 - 13.3 -

100 100 100 300 100 -

6.Temporary Law Media Concentration

• Responsibility: Dutch Competition Authority • Obligatory advice: Dutch Media Authority• Limits:

maximum of 35% on daily newspaper market (including freesheets)

maximum of 90% on markets for newspapers, television and radio (jointly 300%)

• Calulation markets: Media Monitor• July 2007 – 2010

TMG

RoyalWegener

PCM

TalpaMedia

UPC

RoyalKPN

@Home

Newspapers

Tele2 /Versatel

SBS

Broadcasters Cableoperators

Telecomoperators

Permira /KKR

Mecom

Warburg Pincus / Cinves

Canal+

Investers

Multi-kabel

Casema

NDC / VBK

MGL

Apax

RTL

SkyRadio

Radio538

ADNieuws-Media

?

?

25%

20% 74%

28%

100%

100%

50% (63%)

50% (27%)

NPMCapital /Halder

Pressagencies

ANP60%

XDag

7.European Media monitor

Dutch trends = European trends?• Foremost private broadcasters = no. 1 & 2 in Europe• Cable & telecom operators active on content market• Investers (hedge funds) are more interested in media

European research model• Mapping Study 10 European countries (CvdM 2004)• October 2007: CvdM - Media monitor workhop• Availability & comparability secondary data• Future: pilot for a European Media Monitor?