rapport 2015

Mediaconcentratiein Vlaanderen

Vlaamse Regulator voor de MediaKoning Albert II-laan 20, bus 21, 1000 Brussel

rapport 2015

Media concentration in Flanders

English version - 2016

Table of content

1. Introduction 32. Overview of the Media Concentration Report 2016 52.1 Chapter1:DefiningtheFlemishmediaindustry 52.2 Chapter2:Flemishmediagroups 62.3 Chapter3:Informationonmediaconcentration 92.4 Chapter4:Stimulatingdiversity-remediesandsuggestionsforpolicymakers 102.5 Chapter5:GeneralConclusion 103. MainfindingsoftheMediaConcentrationReport2016 114. TableofcontentsoftheMediaConcentrationReport2016 155. Translationofthelistoffiguresandtables 18

1. IntroductionThetaskofreportingonmediaconcentrationwasgrantedtotheFlemishMediaRegulator(VlaamseRegulatorvoordemedia(VRM))bytheFlemishmediadecree.

OnayearlybasisVRMpresentsareporttotheFlemishpolicymakerscontaininginformationonthepositionsoccupiedbyagentsintheFlemishmediasector.Thisreportisalsomadeavailabletothegeneralpublic(viawebsiteandprintcopies).

ThecurrenttextaimsatmakingVRM’sreportonmediaconcentration2016accessibletoEnglishspeakers.

TheunderlyingtextwillfunctionasamanualonhowtofindawayintheDutchversionofthereport,ratherthanasatranslationofthefulltextofthereport.

Thismanualconsistsof• anintroductiondescribingthecontentofthereport• anoverviewofthedifferentchapters• themainfindingsofthemediaconcentrationreport2016• atranslationofthetableofcontentsofthereport• atranslationofthelistsoftablesandfigures

Concentrationcanbeapproachedfrommanyangles.Fromthepublicationofitsfirstreportin2008,VRMoptedforanapproachfromaneconomicpointofview.Wethereforefocusontherelationshipsbetweenthedifferentplayersinthemarket,ratherthane.g.performingcontentanalysis.

VRMusesMichaelPorter’sconceptofvaluechainsinordertodefinethemediasector.

Inavaluechain,alllinkswhereaddedvalueiscreatedareidentified,thustracingachainfromcontentproducer,overaggregator,viadistributor,tothefinalcustomer.

Thischaincanbelessormorefragmented.Withineverylinkofthechainadifferentformofcompetitionmayexist(dependingonthenumberofsuppliersandtheirrelationshiptothedemandinthefollowinglink).

Andersen(2002)drewavaluechainfortheaudiovisualindustryfortheEuropeanCommission.

Figure1:Value-addedchainfortheaudiovisualindustrySource:Andersen,EuropeanCommission(2002).

Themarketsformediaproductsaredouble-sidedmarkets.Ontheonehand,consumersbuymediaproductscontaininginformationandentertainment.Ontheotherhand,advertisersbuyconsumers’attentionfortheiradvertisements.Thechainmustthusbefollowedintwodirections.

Whilestudyingmediaconcentration,onecandifferentiatebetweenhorizontal,verticalandcross-medialconcentration.

Figure2:DifferenttypesofmediaconcentrationSource:VRMbasedonM.Porter

• Horizontalconcentrationoccurswhenthenumberofplayerswithinonelinkislimited• Verticalconcentrationoccurswhenfollowinglinksinonechainareownedorcontrolledbyalimited

numberofplayers• Cross-medialconcentrationexistswhenthereisanentanglementbetweenthesuppliersofvariousmedia

products

InthefirstchapterofthereporttheFlemishmediaindustryisdefined.

Flemishmediagroupsaredescribedinthesecondchapter.Informationonshareholders,companystructureandproductofferingsisgivenforeverymediagroup.

Inthethirdchapter,informationonmediaconcentrationisquantifiedandfinancialresultsandfactsandfiguresonpopularityofmediabrandsaregiven.

Throughoutthereport,interestingfactsthatdonotfitthegeneralframeworkareelaboratedinso-called“InformationFragments”,withaspecificlayout.

ThefourthchaptergivesinformationonmeasuresthataretakentoenhancediversityandmediapluralityinFlanders.Italsomentionspossiblenewlegalinitiatives,stressinganumberofthemaspolicysuggestions.

Theconclusionsofthereportareformulatedinchapter5.

2. Overview of the Media Concentration Report 2016

2.1 Chapter 1: Defining the Flemish media industry

Inthefirstchapterofthereport,theFlemishmediaindustryisdefined.Thevaluechainsofradio,television,internetandprintmediaaredepictedandtheplayersthatarepresentineverylinkareidentified.Acolourcodegivesafirstindicationofthedegreeofconcentration.Figure3isthevaluechainfortheinternet.

Figure3:Internetvalue-addedchain

VRMlistsallcompaniesthatareactivewithinacertainlinkofthevaluechain,togetherwiththeirproductofferingandcompanynumber(asshownintablebelow).

publIsheRs Of newspapeRs pROvIdeR company number offer

De Persgroep Publishing nv 403506340 De Morgen

Het Laatste Nieuws/De Nieuwe Gazet

Mediahuis nv 439849666 De Standaard

Gazet van Antwerpen

Het Belang van Limburg

Het Nieuwsblad/De Gentenaar

Mediafin nv 404800301 De Tijd

Table1:Publishersofnewspapers

Nexttothefourmediatypes(radio,television,printmediaandinternet),VRMdescribesconvergenceandcross-mediatrendsintheFlemishmedialandscape.

Weconcludethechapterwithafirstindicationonhorizontalmediaconcentration(bycountingtheplayerspresentinthedifferentlinks). hORIzOnTal COnCenTRaTIOn MedIuM content aggregation distribution

Radio National radio (private and public) Radio signaling

Local radio

Television Facility companies Television organizations (linear en non-linear)

Service providers & network administrators

Production houses Operating companies for regional television

Print media Press and photo agencies

Newspaper publishers Distributors press

Publishers free press

Publishers magazines

Internet Websites Internet service providers / network providers

Social media accounts Mobile operators

Apps Social media networks

App stores

Table2:Horizontalconcentrationbasedonnumberofplayersinthevaluechain1

Legend:Numberofplayers

>5011-501-10

2.2 Chapter 2: Flemish media groups

AlimitednumberofFlemishmediagroupsisactiveintheFlemishmedialandscapeviadifferentmediaproducts.Table2givesanoverview.Someofthesegroupsarejointventuresofothergroups,ascanbeseeninFigure4.

1 Withinthelocalradio’sthereischainformation.Thisisn’treflectedinthetablebecausetheindividuallocalradio’swerecountedandnotthestructuresbehindtheseradio’s.Eachlocalradioisrunbyanothernon-profitorganization,butanindividualmaybethechairmanofseveralassociations.Inpracticeseverallocalradio’soperateinthismanner.

MedIa OffeRIngs Of The MaIn MedIa gROups Media group Radio Tv newspapers Magazines Internet Regie

Content + aggregation

Distribution Content + aggregation

Distribution Content + aggregation

Content + aggregation

Content + aggregation

Distribution

Concentra nv x - x - x x x - x

Mediahuis nv - - - - x x x - x

Corelio nv x - x - x x x - x

De Vijver Media nv

x - x - - - x - x

Telenet bvba x x x x - - x x x

De Persgroep nv

x - x x x x x x x

Medialaan nv x - x x - - x x x

Roularta Media Group nv

x - x x x x x x x

Proximus nv - x x x - - x x x

Sanoma Me-dia Belgium nv

- - - - - x x - x

VRT nv x - x - - - x - xTable3:MediaofferingsofthemainmediagroupsinFlanders

Figure4:Mediagroupsassubsidiariesofothermediagroups

Foreachgroup,anoverviewoftheshareholdersandthegroupstructureisgiven,aswellasanoverviewoftheproductofferings.Anoverviewofproductofferingspermediagroupisgiveninagrid,citingtheproductnameswhiledistinguishingbetweendifferentmediaformsandthedifferentstagesofthevaluechain.Anindicationofthegeographicalreachoftheproductisgivenbyasymbol.

shaRehOldeR sTRuCTuRe

shaRehOldeRcapital

Stichting De Zeven Eycken (Nederlands KVK 41085521) 91,30%

Katholieke Impuls- en Mediafonds 8,70%

Total 100,00 %

Table4:ShareholdersConcentraNV

Figure5GroupstructureDePersgroep

group name production content aggregation distribution Reach

RadioProduct name

Television Product name

print media

Internet

Miscellaneous

Figure6:Productgridofagroup

legend Of The pROduCT gRId product name Product or activity under full control of the group

(product name) Product or activity that was transferred to another group after the closing of the annual accounts

product name Product or activity in which the group participates

Product available in or aimed at a part of Flanders (e.g. local tele-vision or regional newspaper)

Product available in or aimed at the whole of Flanders

Product with a French equivalent and aimed at the Belgian Market

Product aimed at a foreign market

Figure7:Legendoftheproductgrid

2.3 Chapter 3 : Information on media concentration

Inthe3rdchapterofitsreport,VRMstudiesconcentrationforeachmediatype.

First,vertical,horizontalandcross-medialintegrationarebrieflydescribed.Secondly,thereisananalysisbasedonfinancialinformation.Atablewithanoverviewofthemostrecentfinancialinformationofthemainplayersinthespecificlinkofthevaluechainisgiven,togetherwithagraphicoftheevolutionoftheaverageofthesevaluesoverthelast10years.VRMusesthefollowingfinancialvalues:• 10/15:Equity• 20/58:Assets• 70:Turnover• 70/74:OperatingIncome• 9901:Operatingprofit/loss• 9903:Profit/lossbeforetaxes• 9087:AveragenumberofemployeesVRMcalculatestheaverageforallcompaniesinasector,andtheyear2006isusedasabenchmark.TheCPI(consumerpriceindex)isalsoincludedinthefigures.InBelgium,allcompanieshavetoreporttheirfinancialstatementtotheNationalBankofBelgium.Thefinancialstatementscanbeintegrallyconsultedonitswebsite.

fInanCIal fIguRes COMpany naMe equity assets turnover operating income operating +/- +/- before taxes employees

10/15 20/58 70 70/74 9901 9903 9087

Medialaan nv 73.549.187 230.519.109 256.692.269 313.759.007 43.892.347 43.606.881 531,6

JOEfm nv 19.578.962 20.767.119 8.604.886 8.986.192 2.925.061 3.085.392 16,1

Vlaanderen Eén nv

-4.787.660 4.619.800 8.922.843 8.949.881 888.002 811.953 20,8

Table5:Financialfigures2016nationalprivateradio

Operating income

Profit/loss before taxes

Consumer price index

250%

200%

150%

100%

50%

0%

Operating profit/loss

Employees

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Figure9:Evolutionofaveragevalues2006–2015nationalprivateradio

Thirdly,thereisananalysisbasedonaudienceshares.ThisinformationcomesmostlyfromCIM.Thereareseveralfigurestakenintoaccount:• Radio:audiencesharesandaveragelisteningdurationApril-June2016• Television:audienceshares2015• Printmedia:paidcirculation(print+digital)andtotalprintcirculation• Internet:dailyaveragewebsitevisits5-25September2016• SocialMedia: Facebookaccount:likes Twitteraccount:followers

Instagramaccount:followers GooglePlusaccount:followers YouTubechannel:subscribers ThesenumberswerecollectedbytheVRMinSeptember2016.• Apps:thenumberofdownloadsasprovidedbyGooglePlay,collectedinthesummerof2016.

WemeasuremediaconcentrationbycalculatingC4andHerfindahl(HHI)indexes.Thesearetraditionalindicatorstomeasureconcentrationinanindustry.Theindicatorscanbecalculatedperproductcategory,bothonthebasisoffinancialdatasuchassales,aswellasonthebasisofpopularitydata,e.g.viewers.

Theevolutionofthepricesofmediaproductsisalsostudiedinthethirdchapter.

Finally,theFlemishmedialandscapeissituatedinaninternationalcontext.

2.4 Chapter 4: Stimulating diversity - remedies and suggestions for policy makers

ThefourthchaptergivesinformationonmeasuresthataretakentoenhancediversityandmediapluralityinFlanders.Italsomentionspossiblenewlegalinitiativesunderlininganumberofthemaspolicysuggestions.

Thesemeasuresweredescribedaccordingtoanexistingschedulethatdistinguishesrestrictions,counterweight,economicintervention,transparencyandorganizationalmeasures.Generally,itwasnotedthataudiovisualmediaaresubjecttomorerulesthanprintmediaandinternet.

pOlICy MeasuRes CaTegORy application in flanders

Restrictions Application of articles 189-192 Media DecreeDVB-T: wholesale model

Signal integrity

Tegengewicht Must-carry, must-offer, event regulation and freedom of newsgatheringPublic service broadcaster VRT

Fund Pascal Decroos for investigative journalismReligious programming

Obligation of subtitling (news) programmes

Economic interventions MediAcademieSupport of regional broadcasters

Stimulation of the audiovisual sectorProject grants for media initiatives

Screen Flanders

Transparency Media concentration reportSupervision of compliance by the public broadcasters of the Flemish Community’s management

Licences, broadcasting permits, notificationsMedia education programmes

Organisational measures Founding of VRMBelgian and European competition authority

Table6:Policymeasurestoenhancediversityandmediaplurality

2.5 Chapter 5: General Conclusion

Ageneralconclusionisgiveninthefifthchapter.

3. Main findings of the Media Concentration Report 2016TherearefewradiostationsthatyoucanlistentoacrossthewholeofFlanders.Thereisahighdegreeofconcentration,causedbythedominantpositionoftheradiostationsofthepublicbroadcaster.ThetransitiontoDAB+maypossiblychangethatsituation,sincethistechnologywouldcreatespaceformoreradiostations.DAB+isstimulatedbythegovernment,andradiobroadcastersareobligedtoinvestinthisnewtechnology.

Atlocalleveltherearemanyplayers,butsincetheyeachareactiveinsmallareas,wecanoftenspeakofageographicmonopoly.Inaddition,thereisatendencytogrouplocalradios.Theradiostationsthatarepartofachainrepresent71%ofthetotalnumberofactivelocalradios.In2017,therewillbeanewroundoffrequencyallocationandtheFlemishGovernmentwantstotakethatopportunitytoavoidthischainformationamonglocalradiosinthefuture.Atthesametime,anewcategoryofcommercialradiobroadcasterswillbecreated:commercialnetworkradios.Theseradiosareduefor2018andwillhaveregionalcoverage(aroundseveralcities).

In2015-2016therewereseveralchangesintheFlemishtelevisionlandscape.MedialaanchangeditsyouthchannelJIMtoakids’channelnamedKADET,madeforaspecificaudienceof8-12year-oldboys.Italsochangedthenameofitschannel2BEtoQ2.WiththenameQ2theyaremakingalinkwiththepopularradiochannelQmusic.MedialaanalsoacquiredthechannelAchtbymeansoftheacquisitionofBitesEurope.ItchangedthenameofAchttoCAZandchangedtheprogrammingtoreachamaleaudience.SBSBelgiumcreatedathirdchannel,ZES,wheretheprogrammingwillconsistofAmericanseriesandmovies.The(new)positioningofthesechannelscanbeunderstoodintermsofadvertisers’needs.

DespitethepopularityofnewtypesofTVconsumption(OTTe.g.Netflix),traditionalFlemishtelevisionbroadcastersstandfirm.Thedegreeofconcentrationincreasesasyouprogressthroughthevaluechain.AtTVproductionlevel,thereislowconcentration.Therearemanyindependentproductioncompanies.Abiggerconcentrationcanbefoundatthelevelofthebroadcasters.Althoughoccasionallynewplayersjointhemarket,theyrarelymanagetoconqueralargemarketshare.BecauseoftheacquisitionofBitesEuropebyMedialaanandtheintroductionofanewchannelbybroadcastingcompanySBSBelgium,itislikelythattheconcentrationwillincrease.Finallythedistributionmarketisdominatedbyfewplayers.CabledistributorTelenetisthelargestplayerinthisfield.TheBelgiancablenetworkowners(TelenetinFlanders)wereobligedbytheConferenceofRegulatorsoftheelectroniccommunicationssectortoprovideawholesaleofferforanalogueanddigitalTV,aswellasbroadband(butonlyincombinationwithdigitalTV).Followingthisregulatorydecision,OrangestartedadigitalTVdistributionofferinBelgiumin2016,usingthecablenetwork.

AnimportantevolutionintelevisionisthebreakthroughofOTT(televisiondistributionviatheInternet).TheFlemishtelevisiondistributorshavetheirownOTTplayers(ProximusTVOveralandYeloPlay(Telenet)).TheTVbroadcastersontheirsidealsodevelopedajointOTTplatform,STIEVIE,whereTVprogrammesareavailablefor6days.STIEVIEbecameeventuallyasubsidiarycompanyofonebroadcaster,Medialaan.Medialaanreleasedin2015STIEVIEFREE,asimilarbutfreeOTTplatformthatonlyconsistsoftheTVprogrammesofMedialaan(alsoavailablefor6days).NexttoOTTplayers,FlemishbroadcastersarealsomoreintensivelyusingtheirwebsiteandappwheretheyprovideseveralTVprogrammesforfree.ThepublicbroadcasterisplanningadigitalvideoplayerinJanuary2017.

Asaresultofnewtechnologies,therevenuemodelsfortelevisionarechanging.Thisiscausingtensionoverthedistributionofincomebetweenplayerswithindifferentlinksinthevaluechain.Contentproducers,aggregatorsanddistributorsallwanttoclaimthelargestpossibleshareoftherevenue.Severalplayersaretryingtobroadentheirbusiness.Telenet,thedominantplayeronthedistributionmarket,holds50%sharesinDeVijverMediawhichistheparentcompanyofSBSBelgium(televisionbroadcasterwiththreetelevisionchannels)andasuccessfulproductioncompany.TelenetalsoproducesTVseries.OntheotherhandMedialaan(contentproducerandaggregator)hasintroducedanOTTplayer(STIEVIE)andhasacquiredamobileoperator.

Printmediafacedifficultiesduetodecliningsalesandfallingadrevenue.Thisisparticularlythecaseforthemagazines.Themarketofmagazinesisshrinking.In2016sometitleschangedownersandothersceasedtoexist.Incontrasttomagazines,newspapersaremanagingto(partially)compensatethedeclineinprintedsaleswiththeriseofdigitalsales.Especiallythe“quality”newspapershavehighdigitalsales,andthosesaleshavebecomeanimportantshareofthetotalsales.Thesocalled“popular”newspapershavefewerdigitalsalesbuthaveverypopularnewssitesandsocialmediaaccounts.

TheconcentrationatnewspaperpublisherslevelhasdramaticallyincreasedthroughthecreationofMediahuisin2013.Sincethenthe7mainFlemishnewspapersarepublishedbymerelytwopublishers,DePersgroepandMediahuis.Themarketformagazinesissomewhatlessconcentrated.

Onthedistributionmarket,in2016thenationalpostalservicecompanyboughtthebiggestpressdistributor,AMP,aparceldeliverynetworkKariboo!andfour(press)shopbrands(PressShop,Relay,OneMinuteandHubiz)fromtheFrenchcompanyLagardère.

ItisdifficulttomeasureconcentrationlevelsoftheInternet,asasurfercaneasilyvisitalotofwebsites,andmanypopularwebsitesarecontrolledbyforeigncompanies.Yetwenotice,inreferencetowebsitesofFlemishmediagroups,ahighconcentrationintermsofgroupsandalowconcentrationintermsofavailablewebsites.

Mediacompaniesextensivelyusethepossibilitiesoftheinternetfortheirproducts.Websites,socialmediaandappshavebecomefirmextensionsforalotofmediabrandsfromradio,televisionandprintmedia.

Therelativepopularityofradio,TVandprintmediabrandsintheirownmedium,isnotalwaysreflectedontheinternetequivalent.Newsmediaareverypopular;theirwebsitesarethemostvisitedones.Theyperformwellonsocialmediaaswell,alongwithmediabrandsthathavearatheryoungimage.

Convergenceandcross-mediatrendshavebecomearealityintheFlemishmedialandscape.Brandshavemovedtotheforefrontandareusedindifferenttypesofmedia.

VRMhasstudiedtheaccumulationofmandatesinmediacompanies.Thereismainlyaconcentrationofmandatesinthefieldoflocalradios,asyoucanseeinthenextfigure.

Figure10:concentrationofmandatesintheradiosector.

Theevolutionofthepricesofmediaproductsisstudiedinthethirdchapter.Thecostforradio,TVandprintmediarisesagainin2015,evenfasterthantheconsumerpriceindex.Howevertheindirectcosttoenjoymediaproducts,suchasthecostofacomputerorasmartphonedrops(theincreasingelectricitypriceisanexceptiontotherule).

TheFlemishmedialandscapeissituatedinaninternationalcontext.Duetothelanguagebarrier,itisnoteasyforFlemishmediacompaniestodevelopactivitiesabroad.Unsurprisingly,theacquisitionsofDePersgroepandMediahuisin2015werebothmainlyinTheNetherlands.RoulartasoldallofitsFrenchactivitiesin2016.InternationalparticipationsinFlemishproductioncompaniesareincreasing.Socialmediaaremainlycontrolledfromabroad.Asaresult,apartofFlemishadvertisingspendinggoestoforeigncompanies.

Inrecentyears,therewerealotofchangesinthefieldofthemediagroups.Thesechangesmainlyhavetodowithintensifiedinterrelationships.Threemediagroups(DeVijverMedia,MediahuisandMedialaan)consistofintersectionsbetweenotherFlemishmediagroups.Inachangingenvironmenttheylookforopportunitiesindifferentareas.

Aswellasstrategicalliances,acquisitionsareawayofgainingground.In2016TelenettookoverBaseCompanyandthusacquiredamobilenetwork.InthatwayTelenetwillnolongerhavetousetheOrangenetworkforitsmobileoffers.Asaresultofthemerger,MedialaanacquiredthemobileoperatorMobileVikings.

Athirdwayofstrengtheningamediagroupisverticalintegration,i.e.occupyingpositionsinotherlinksofthevaluechain.ThebiggesttelevisiondistributorTelenethasacquiredsharesinthecompany“DeVijver”whichisactiveincontentproductionandaggregation.OntheotherhandMedialaan–activeincontentproductionandaggregation–hastakenpositionsinthedistributionlink(OTTandmobile).

AlthoughthereisnotonesingleplayerthatdominatesthewholeFlemishmediaindustry,manyformsofhorizontal,verticalorcrossmediaconcentrationexistinandbetweenseveralFlemishmediatypes.Theaggregationlinkofthemediatypesdescribedinthereport(radio,television,printmediaandinternet)are80%to100%inthehandsofninemediagroups.InthefieldofradiotheVRT-audienceshareremainsmore50%.WealsonoteincreasingactivitiesofthedominanttelevisiondistributorTelenetinotherpartsofthetelevisionvaluechain.Inthemarketoftheprintmediathedominanceofthenewspapermarketbyonlytwomajorpublishers,DePersgroepandMediahuis,isstriking.Belowisachartcomparingthemarketsharesofthedifferentmediagroups.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%Ratings (TV) Listening figures Newspapers Magazines Internet

Mediahuis

Concentra

SBS

Others

Roularta Media Group

De Persgroep

Medialaan

Sanoma Media Belgium

Concentra, Corelio

VRT

Figure11:Overviewofmediagroupmarketshares

4. Table of contents of the Media Concentration Report 2016 PREFACE 5INTRODUCTION 61 THEFLEMISHMEDIASECTOR 131.1 RADIO 131.1.1 ContentProviders 141.1.2 Aggregation:radiobroadcasters 171.1.3 Distribution:radiobroadcastingtransmission 231.2 TELEVISION 261.2.1 ContentProviders 271.2.2 Aggregation:televisionbroadcasters 341.2.3 Distribution:televisionbroadcastingtransmission 411.3 PRINTMEDIA 481.3.1 ContentProviders 501.3.2 Aggregation:publishers 571.3.3 Distribution:printmedia 621.4 INTERNET 661.4.1 ContentProviders 681.4.2 Advertisingsales 681.4.3 Aggregation:websiteowners 701.4.4 Distribution:fixedinternet 751.4.5 Distribution:mobileinternet:appstores 761.4.6 Distribution:mobileinternet:mobileoperators 771.5 CONVERGENCEANDCROSS-MEDIA 781.5.1 Cross-mediatrends 791.5.2 Convergence 801.6 CONCLUSIONCHAPTER1 832 MEDIAGROUPSINFLANDERS 892.1 CONCENTRANV 912.1.1 Groupstructureandshareholders 912.1.2 ProductofferConcentraNV 932.2 CORELIONV 962.2.1 Groupstructureandshareholders 962.2.2 ProductofferCorelioNV 982.3 DEPERSGROEPNV 1012.3.1 Groupstructureandshareholders 1012.3.2 ProductofferDePersgroepNV 1022.4 DEVIJVERMEDIANV 1072.4.1 Groupstructureandshareholders 1072.4.2 ProductofferDeVijverMediaNV 1082.5 MEDIAHUISNV 1102.5.1 Groupstructureandshareholders 1102.5.2 ProductofferMediahuisNV 1112.6 MEDIALAANNV 1142.6.1 Groupstructureandshareholders 1142.6.2 ProductofferMedialaanNV 1142.7 PROXIMUSNV 1172.7.1 Groupstructureandshareholders 1172.7.2 ProductofferProximusNV 1192.8 ROULARTAMEDIAGROUPNV 1222.8.1 Groupstructureandshareholders 1222.8.2 ProductofferRoulartaMediaGroupNV 1242.9 SANOMAMEDIABELGIUMNV 1292.9.1 Groupstructureandshareholders 1292.9.2 ProductofferSanomaMediaBelgiumNV 1302.10 TELENETBVBA 1342.10.1 Groupstructureandshareholders 134

2.10.2 ProductofferTelenetBVBA 1362.11 VLAAMSERADIO–ENTELEVISIEOMROEPORGANISATIE(VRTNV) 1392.11.1 Groupstructureandshareholders 1392.11.2 ProductofferVlaamseRadio–enTelevisieomroeporganisatie 1392.12 CROSSMEDIALITYANDENTANGLEMENTOFPRODUCTOFFERSOFFLEMISHMEDIAGROUPS 1432.12.1 CrossmedialityofproductoffersofFlemishMediaGroups 1432.12.2 EntwinementofFlemishMediaGroups 1432.13 DIRECTORS 1462.14 CONCLUSIONCHAPTER2 1473 INFORMATIONONMEDIACONCENTRATION 1513.1 INFORMATIONONMEDIACONCENTRATIEPERMEDIATYPE 1513.1.1 Radio 1533.1.2 Television 1643.1.3 PrintMedia 1893.1.4 Internet 2163.2 MEDIAGROUPS 2263.2.1 Analysisbasedonfinancialfigures 2263.2.2 Analysisbasedonaudienceshares 2273.3 PRICEEVOLUTIONOFMEDIAPRODUCTS 2283.3.1 Radioandtelevision 2293.3.2 Printmedia 2333.3.3 Internet 2343.3.4 Priceevolutionadspace 2363.4 FLEMISHMEDIAINDUSTRYINANINTERNATIONALCONTEXT 2393.4.1 Flandersintheworld 2393.4.2 TheworldinFlanders 2413.5 CONCLUSIONCHAPTER3 2434 STIMULATINGDIVERSITY–POTENTIALREMEDIESANDSUGGESTIONSFORPOLICYMAKERS 2494.1 RESTRICTIONS 2494.1.1 Ownershiprestrictions 2494.1.2 Regulation 2504.1.3 Signalintegrity 2524.1.4 Opportunitiesandsuggestionsforpolicymakers 2534.2 COUNTERWEIGHT 2554.2.1 Must-carry,must-offerandeventsregulation 2554.2.2 PublicbroadcasterVRTNV 2584.2.3 FundPascalDecroos 2594.2.4 Third-partybroadcasting/ideologicalprogrammes 2594.2.5 Subtitling 2594.2.6 Opportunitiesandsuggestionsforpolicymakers 2604.3 ECONOMICINTERVENTION 2604.3.1 Mediacademie 2614.3.2 Supportforregionaltelevisionbroadcasters 2614.3.3 Supportfortheaudiovisualindustry 2624.3.4 ScreenFlanders 2634.3.5 Supportforinnovativemediaprojects 2634.3.6 Federalmeasures 2634.3.7 Opportunitiesandsuggestionsforpolicymakers 2644.4 TRANSPARENCE 2644.4.1 Media Concentration Report 2644.4.2 Auditofthemanagementagreementofthepublicbroadcaster 2644.4.3 Broadcastinglicensing 2654.4.4 KnowledgeCentreforCultureandMediaParticipation,ElectronicNewsArchiveandMediawijs.be 2664.4.5 Opportunitiesandsuggestionsforpolicymakers 2674.5 ORGANIZATIONALMEASURES 268

4.5.1 FoundationVRM 2694.5.2 BelgianandEuropeanCompetitionauthorities 2694.5.3 Opportunitiesandsuggestionsforpolicymakers 2694.6 CONCLUSIONCHAPTER4 2704.6.1 Opportunitiesandsuggestionsforpolicymakers 2725 GENERALCONCLUSION 277

5. Translation of the list of figures and tables Figure1:Valuechainoftheaudiovisualindustry 7Figure2:Illustrationofdifferentformsofmediaconcentration 8Figure3:Valuechainofradio 13Table1:Advertisingsalesradio 16Table2:Nationalpublicradiostations 17Table3:Regionalpublicradiostations 18Table4:Nationalprivateradiostations 18Table5:Partnershipsbetweenlocalradiostations 20Table6:Otherradiostationsviacable 21Table7:Communityradios 21Table8:Otherradiostationsnotifications 22Table9:Radiotransmissionoperators 23Table10:Onlinemusicservices 25Figure4:Valuechainoftelevision 26Table11:Independentproductioncompanies 28Table12:Collectivemanagementorganizations 30Table13:Televisionfacilitycompanies 31Table14:Advertisingsalestelevision 32Table15:Publicbroadcaster-lineartelevisionchannels 34Table16:Privatebroadcasters-lineartelevisionchannels 36Table17:Regionaltelevisionbroadcasters 38Figure5:RegionaltelevisioninFlanders 38Table18:Nonlineartelevisionservices 40Table19:Platformsforbroadcastingtransmission 41Figure6:Valuechainofbroadcasttransmission 43Table20:Broadcastingtransmission-coax 44Table21:Broadcastingtransmission-DSL 44Table22:Broadcastingtransmission-terrestrial(fixed) 45Table23:Broadcastingtransmission-terrestrial(mobile) 45Table24:Broadcastingtransmission-satellite 45Table25:Broadcastingtransmission-OTT 47Figure7:Valuechainofprintmedia 48Table26:Pressagencies 51Table27:Photoagencies 51Table28:AdvertisingsalesforFlemishpaidnewspapers 51Table29:Advertisingsalesformagazines 54Table30:Mediaagencies 54Table31:Publisherspaidnewspapers 56Table32:Publishersmagazines 60Table33:Publishersfreepress 61Table34:Distributorsnewspapersandmagazines 62Table35:Distributorsfreepress 63Table36:Appsnewspapers 64Table37:Appsmagazines 65Figure8:ValuechainoftheInternet 67Table38:Advertisingsalesforwebsites 69Table39:WebsitesFlemishmediasector 72Table40:Flemish(news)sitesnotlinkedwithanothermediaformat 73Table41:MostpopularsocialmediasitesinFlanders 73Table42:Internetserviceproviders,networkoperatorsandinternetaccessproviders 76Table43:MostpopularappstoresinFlanders 76Table44:AppsFlemishmediagroups 77Table45:Mobileoperatorsandtheirnetwork(excludingbusinessmarket) 78Figure9:Examplesofthedifferencebetweencross-medialityandconvergence 79Table46:Multimediabrands 82Figure10:Horizontalconcentrationbasedonnumberofplayersinvaluechain 84

Figure11:Mediagroupsbeingpartofothermediagroups 89Table47:MediagroupsinFlanders 89Table48:Legendaproductoverviewpergroup 90Table49:ShareholderstructureConcentraNV 91Figure12:OrganogramConcentraNV 92Figure13:ProductoverviewConcentraNV 95Table50:ShareholderstructureCorelioNV 96Figure14:OrganogramCorelioNV 97Figure15:ProductoverviewCorelioNV 100Table51:ShareholderstructureDePersgroepNV 101Figure16:OrganogramDePersgroepNV 102Figure17:ProductoverviewDePersgroepNV 106Table52:ShareholderstructureDeVijverMediaNV 107Figure18:OrganogramDeVijverMediaNV 108Figure19:ProductoverviewDeVijverMediaNV 109Figure20:OrganogramMediahuisNV 111Table53:ShareholderstructureMediahuisNV 110Figure21:ProductoverviewMediahuisNV 113Figure22:OrganogramMedialaanNV 114Table54:ShareholderstructureMedialaanNV 114Figure23:ProductoverviewMedialaanNV 116Table55:ShareholderstructureProximusNV 117Figure24:OrganogramProximusNV 118Figure25:ProductoverviewProximusNV 121Table56:ShareholderstructureRoulartaMediaGroupNV 122Figure26:OrganogramRoulartaMediaGroupNV 123Figure27:ProductoverviewRoulartaMediaGroupNV 128Figure28:OrganogramSanomaMediaBelgiumnv 130Figure29:ProductoverviewSanomaMediaBelgiumNV 133Table57:ShareholderstructureTelenetNV 134Figure30:OrganogramTelenetNV 135Figure31:ProductoverviewTelenetNV 138Figure32:OrganogramVRTNV 139Table58:ShareholderstructureVRTNV 139Table59:AdditionalradioproductsVRTNV 140Figure33:ProductoverviewVRTNV 142Table60:MediagroupsinFlandersandtheirofferings 143Figure34:EntanglementofmediagroupsinFlanders 145Table61:Overviewofmandates 146Table62:Financialinformation2015publicnationalradio 153Figure35:Evolutionofaveragefinancialvalues2006-2015publicnationalradio 154Table63:Financialinformation2015privatenationalradio 154Figure36:Evolutionofaveragefinancialvalues2006-2015privatenationalradio 155Figure37:Marketshareradiostation–wave2016-2 156Figure38:Averagelisteningtimeperradiostation–wave2016-2 157Figure39:Marketsharesradiostations2006-2016 158Figure40:Proportionofpublicvsprivateradio 159Figure41:Evolutionofconcentrationindexesradiostations2006-2016 160Table64:Concentrationindexesmediagroupsbasedonlisteningfigures2006-2016 159Table65:Numberofinstallationsappsradio(GooglePlay) 161Table66:Financialinformation2015facilitycompanies 166Figure42:Onlinepopularityradiostations 160Figure43:Marketsharenationalradiostations 162Figure44:Marketsharespublicvsprivateradio 163Figure45:Concentrationofmandatesintheradiosector 164Figure46:Evolutionofaveragefinancialvalues2006-2015facilitycompanies 167Table67:Financialinformation2015independentproductioncompanies 166Figure47:Evolutionofaveragefinancialvalues2006-2015productioncompanies 168

Table68:Financialinformation2015publicbroadcaster 169Figure48:Evolutionofaveragefinancialvalues2006-2015publicbroadcaster 169Table69:Financialinformation2015privatebroadcaster 170Figure49:Evolutionofaveragefinancialvalues2006-2015privatebroadcasters 170Table70:Financialinformation2015exploitationcompaniesregionaltelevision 171Figure50:Evolutionofaveragefinancialvalues2006-2015exploitationcompaniesregionaltelevision 172Figure51:Mean,maximumandminimumofthedailyreach(percentages)ofthenineregionalbroadcasters 173Table71:Financialinformation2015networkoperatorsandaccessproviders(‘000euros,exceptemployees) 173Figure52:Evolutionofaveragefinancialvalues2006-2015broadcastingtransmission 174Figure53:EvolutionofVODnumberofhitsandrevenueswithinterventionofbroadcasters2007-2015 175Figure54:EvolutionofVODnumberofhitsandrevenueswithoutinterventionofbroadcasters2007-2015 175Table72:Televisionproductioncompanieswith5ormoreproductionsinfirsthalfof2016 177Table73:Televisionproductioncompaniesinthetop100ofmostwatchedTVprogrammes2009-2015 178Table74:Concentrationindexesproductioncompaniesbasedonnumberofproductions2016 178Figure55:SharesTVchannelsinaverageviewingtime2015 179Table75:Figuresonvideostreaming 180Figure56:EvolutionsharesTVchannelsinaverageviewingtime2006-2015 181Table76:ConcentrationindexesTVbroadcastersbasedonaverageviewingtime2006-2016 181Figure57:EvolutionofconcentrationindexesTVbroadcasters2006-2016 182Figure58:OnlinepopularityTVchannels 183Figure59:MarketsharesmediagroupsTV 183Table77:NumberofinstallationsappsTV(GooglePlay) 185Figure60:Evolutionofnumberofcablesubscribers(coaxandIPTV)2008-2016 186Table78:PopularityofFlemishOTTplayers 187Figure61:ConcentrationofmandatesintheTVsector 189Table79:Financialinformation2014pressagencies 190Table80:Financialinformation2015photoagencies 191Table81:Financialinformation2015mediaagencies 191Table82:Financialinformation2015publishersnewspapers 192Figure62:Evolutionofaveragefinancialvalues2006-2015publishersnewspapers 192Table83:Financialinformation2015publishersmagazines 193Figure63:Evolutionofaveragefinancialvalues2006-2015publishersmagazines 194Table84:Financialinformation2015publishersfreepress 195Figure64:Evolutionofaveragefinancialvalues2006-2015publishersfreepress 195Figure65:Evolutionofaveragefinancialvalues2006-2015publishersfreepress(withoutRoulartaMediaGroupNV,DePersgroepPublishingNVandMediahuisNV) 196Table85:Financialinformation2015distributorsprintmedia 196Figure66:Evolutionofaveragefinancialvalues2006-2015distributorsprintmedia 197Figure67:Paidcirculationnewspapers2011-2015 198Figure68:Paidcirculationnewspapers2011-2015:subscriptionvssinglecopysales 199Figure69:Marketsharespaidcirculationnewspapers2013-2015 200Figure70:Marketshareprinteditionnewspapers2013-2015 200Table86:Marketsharesnewspapers(circulation)2005-2015 201Table87:Concentrationindexesnewspapers(paidcirculation)2007-2015 202Table88:Concentrationindexesnewspapers(circulation)2007-2015 202Figure71:Evolutionofconcentrationindexespaidcirculationnewspapers2007-2015 203Figure72:Onlinepopularitynewspapers 204Figure73:Marketsharesnewspapers 205Figure74:Marketsharesmediagroupsnewspapers 206Table89:Numberofinstallationsappsnewspapers(GooglePlay) 207Figure75:Paidcirculationmagazines2012-2015 208

Figure76:Paidcirculationmagazines2015:subscriptionvssinglecopysales 209Figure77:Marketsharesmostpopularmagazines 209Figure78:Marketsharespublishersoftop20magazines2015 210Table90:Concentrationindexesmagazines(paidcirculation)2007-2015 211Figure79:Evolutionofconcentrationindexespaidcirculationmagazines2007-2015 211Figure80:Onlinepopularitymagazines–websitevisits 212Figure81:Onlinepopularitymagazines–socialmedia 213Figure82:Marketsharesmagazines 214Figure83:Marketsharesmediagroupsmagazines 214Table91:Numberofinstallationsappsmagazines(GooglePlay) 215Figure84:Concentrationofmandatesintheprintmediasector 216Table92:Financialinformation2015internetserviceproviders,networkoperatorsandinternetaccessproviders 217Figure85:NumberofFlemingshavinganaccountonsocialmediasitesandhavingloggedinduringthelastmonth 218Figure86:Onlinepopularity–top10websites 219Figure87:Onlinepopularity(news)sitesnotlinkedtoanothermediaformat 220Figure88:Marketsharesmediagroupsinternet 221Table93:Concentrationindexesmediawebsites(basedonvisits)2011-2016 221Figure89:Evolutionofconcentrationindexesmediawebsites2011-2016 222Table94:OnlinepopularityBelgianwebsites2012-2016 223Figure90:Onlinepopularity–socialmediatop10 224Figure91:Numberofavailableapplicationsperoperatingsystem-nativeappstore 225Table94:Numberofinstallationsapps(GooglePlay) 226Table96:Financialinformation2015mediagroups 227Figure92:Evolutionofaveragefinancialvalues2006-2015mediagroups 227Figure93:Marketsharesmediagroups 228Figure94:Evolutionofcostsforradioandtelevision2006-2016 230Figure95:Evolutionofcostsforelectricity2006-2016 231Figure96:Evolutionofpricesforbasicsubscriptiontelevision(includingauthorrights;excludingVAT)2005-2016 232Figure97:Pricescheapesttripleplaybundle(monthlycostsexcludingone-offcosts) 232Figure98:Evolutionofthepriceindexfornewspapers2006-2016 233Figure99:Evolutionofthepriceindexformagazines2006-2016 234Figure100:Evolutionofthepriceindexforcomputers2006-2016 235Figure101:Evolutionofthepriceindexformobilephones2006-2016 236Table97:Evolutioncosts(gross)advertisingspaceBelgium2010-2015 237Table98:Evolutionadvertisinginvestments2012-2015 237Table99:Mediaagenciesbilling2012-2015 238Table100:Largestmediacompaniesworldwide,their2015revenuesandmediaactivities 241Table101:ForeignbroadcastingcompaniesaddressingtheFlemishmarket 242Table102:Overviewofconcentrationindexes 245Table103:Overviewofpoliciesonmediaconcentrationandpluralism(Cavallin) 249Table104:Examplesofmust-offerobligations 257Figure102:Situatingpolicymeasuresinthevaluechain 271Figure103:Situatingpolicysuggestionsinthevaluechain 274

vlaamse Regulator voor de Media (vRM)ThemissionoftheVlaamseRegulatorvoordeMedia(VRM)orFlemishRegulatorfortheMedia,istoenforcethemediaregulationsintheFlemishCommunity,settledisputesrelatedtothemediaregulationsandissuemediarecognitionandlicensesinaccordancewiththeregulations.Itconsistsoftwochambers,ageneralchamberandachamberforimpartialityandtheprotectionofminors.

InBelgium,eachculturalcommunityhasitsownaudiovisualmediaservicesregulatorybody:theFlemishregulatorfortheMedia(VRM)intheFlemish-speakingcommunity,theHighCouncilfortheAudiovisualsector(CSA)intheFrench-speakingcommunity,andtheMediaCouncil(Medienrat)intheGermancommunity.RadioandtelevisionbroadcastingintheBrusselsCapitalRegion,asfaritconcernsthetwocommunities,isregulatedbyBIPT(BelgianInstituteforPostalservicesandTelecommunications).BIPTisafederaladministrationthatistheregulatorforelectroniccommunications,theelectromagneticspectrumofradiofrequencies,theaudiovisualmediaintheBrussels-CapitalRegionandthepostalmarket. http://www.vlaamseregulatormedia.be/enhttp://www.csa.be/http://www.medienrat.be/http://www.bipt.be/

Since2008,VRMpublishesayearlyreportonmediaconcentrationinFlanders.VRMaimstomakethereport,writteninDutch,accessiblefortheinternationalpublic.That’swhyVRMchosetowriteanEnglishguideforthe2016versionofthereport.Thedocumentcontainsontheonehanda‘manual’forinterpretingtheFlemishreportandontheotherhandatranslationofthemainconclusionsofthereport.

ThisEnglishdocument,aswellasthereport,canbefoundontheEnglishversionofthewebsiteofVRMhttp://www.vlaamseregulatormedia.be/en.

rapport 2015

Mediaconcentratiein Vlaanderen

Vlaamse Regulator voor de MediaKoning Albert II-laan 20, bus 21, 1000 Brussel

rapport 2015