World Media in 2005: Germany

Germany is mired in recession, with the media industry enduring redundancies on a large scale, but this experience has taught companies to restructure and investigate new revenue streams.

Some 4.5 million are unemployed in Germany, which has been dogged by recession for the past three years. It is hoped recovery is imminent, although it will be far from straightforward. The German government, led by the chancellor, Gerhard Schroder, has courted controversy by introducing mean-tested unemployment benefit as part of a wider package of social reforms. Job cuts have become a way of life, particularly in publishing, where giants such as Axel Springer and the Bertelsmann-owned Gruner & Jahr have culled up to 15 per cent of their workforces.

Restructuring businesses to maximise new revenue streams has been a popular move and German companies such as DaimlerChysler have blazed the trail for outsourcing. Meanwhile, publishers expanded their businesses abroad, particularly into Eastern Europe. Burda, for instance, has had success there with women's magazines.

Burda bucks the trend domestically, too. Hubert Burda bought MichstraBe, incorporating titles such as Fit for Fun and Tomorrow into Burda Verlag.

Worth around 850 million euros, Burda is keen to close the gap on Gruner & Jahr, Germany's biggest publisher.

Germany has the largest magazine market in Europe and it claims about 23.9 per cent of all adspend, but newspapers still dominate, with 40.7 per cent. With the exception of the tabloid paper Bild, most of the highest-circulating newspapers are regional titles.

Germany is unlike many of its European neighbours in that no one city serves as a media hub: media folk pinball between Munich, Frankfurt, Hamburg and, increasingly, Berlin.

Germany has 16 regions in total and each one operates and regulates its own TV and radio broadcasts. Analogue is poised for switch-off in 2010 and a swathe of digital channels are growing in popularity. Germans are watching more TV because of wider programme choice and because they can now receive TV broadcasts via computers and mobile phones. Local versions of shows such as Pop Idol and Wife Swap are popular.

Meanwhile, the Bertelsmann-owned RTL is a key commercial player on the German TV scene and further afield. It owns a stake in five and is rumoured to be eyeing up BBC Worldwide's assets. Financial Times Deutschland also reported Germany's biggest TV company, ProSiebenSat1, wants to buy Euvia Media, which owns the TV channel NeunLive.

ADVERTISING EXPENDITURE

USdollars million at current prices. All years based on US$1=

euro 0.89 *Estimated

News- Mag-

Total papers azines TV Radio Cinema Outdoor Internet

1992 15,664 7,597 4,378 2,498 566 139 486 0

1993 15,907 7,669 4,239 2,786 580 151 482 0

1994 16,971 7,997 4,359 3,249 655 160 552 0

1995 17,940 8,275 4,605 3,660 651 171 578 0

1996 18,218 8,284 4,516 3,980 665 173 599 0

1997 18,885 8,559 4,601 4,292 679 176 578 0

1998 19,814 8,998 4,734 4,562 683 187 635 16

1999 20,887 9,191 4,992 4,873 780 194 769 87

2000 22,565 9,812 5,398 5,315 827 198 842 173

2001 20,843 8,769 5,007 5,044 765 192 857 209

2002 18,969 7,904 4,685 4,465 672 181 805 256

2003 18,036 7,349 4,471 4,302 654 181 801 278

2004 18,309 7,429 4,549 4,376 664 184 815 293

2005* 18,646 7,552 4,617 4,465 674 187 825 325

2006* 19,298 7,738 4,777 4,687 688 192 849 367

2007* 19,876 7,963 4,883 4,854 709 196 865 406

ADSPEND NOTES

1) Excludes agency commission of 15%

2) Excludes production costs

3) Includes classified advertising

4) After discounts

5) Magazines include directories and trade titles

6) East Germany included from 1991

7) Newspapers includes dailies, weeklies, Sundays, supplements

FACTFILE

HIGHEST CIRCULATING

Newspaper: Bild (3,989,000)

Business magazine: Guter Rat (monthly, 264,000)

Consumer magazine: ADAC Motorwelt (monthly, 13,616,000)

Most-watched TV programme (2003): Euro 2004 qualifier, Germany vs

Scotland

Best new TV format: Idols

MAJOR LOCAL MEASUREMENT TOOLS

Circulation: IVW

Readership: Arbeitsgemeinschaft Media-Analyse (AG.MA),

Media-Micro-Census

TV viewing: GfK

TOP MEDIA OWNERS

Newspapers: Axel Springer

Magazines: Gruner & Jahr

TV: ARD, ZDF (both public), RTL, ProSiebenSat1

LOWDOWN

Media topic du jour - Luxury versus low-price products.

Reigning media guru and why - Harald Schmidt, Germany's most famous late-night TV talkshow host, who has just taken a very highly paid job at ARD.

Media mogul to be seen with - Christiane zu Salm, the chief executive of the TV channel NeunLive, because she is always so open to new ideas.

Car to drive - Mercedes Benz CLS.

Top-selling beer brand - Heineken.

Phone to carry - BlackBerry.

Whatever you do, don't say ... "Cool" (when you are over 30).

Become a member of Campaign from just £45 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content

Share

1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).