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Country profile

Switzerland

Inhabitants: 8,606,033 (December 2020)
Households: 3.9 million (December 2020)
Average household size: 2.2 people (December 2020)
Religions: Roman Catholics 41.8%, Protestants 35.3%, Muslims 4.3%, Orthodox Christians 1.8%, other Christians 0.4%, Hindus 0.4%, Buddhists 0.3%, Jews 0.2%, non-denominational 11.1%
Big cities: Zurich (421,878), Geneva (203,856), Basel (173,863), Lausanne (140,202), Bern (134,794), as of December 2020
Form of government: Democratic and Republican state
Head of State: Federal President Ignazio Cassis (2022), function within the circle of seven Federal Council members rotates annually
Head of the government: not present (the Federal Council, which chairs the collegial body of the seven Federal Councillors and is referred to as the Federal President, exercises the function of the head of government)

Unemployment rate: 3% (2021)
Debt ratio of all public budgets: 27.5% of gross domestic product (2021)
GDP: CHF 742.8 billion (2021)
Advertisement costs total: approx. CHF 4 billion (net profit, 2021)
Television viewing time per inhabitant (2021): 114 minutes (German-speaking Switzerland), 132 minutes (French-speaking Switzerland), 152 minutes (Italian-speaking Switzerland)
Large media and communication companies: Swisscom, SRG SSR, Ringier AG, TX Group AG, Basler Zeitung AG, NZZ Media Group
Radio and television fee: CHF 335 annually (for private households), CHF 670 annually (for collective households), as of 2022

Introduction

 A number of structural peculiarities characterize the Swiss media market. Given a federal system with 26 cantons and four official languages (German, French, Italian, and Romansh), the publishing landscape is correspondingly diverse and regionally influenced. However, only a handful of media companies are involved in the majority of press products, including by far the largest corporations in terms of revenue and with shares in the daily newspaper market. Ringier AG and TX GroupThe large number of press titles in international comparison is put into perspective by the widespread practice of editorial cooperation and the header system in terms of content and editorial quality.

Switzerland, a “press country,” is also characterized by a weak domestic private broadcasting network. In addition to the public broadcaster SRG SSR Swiss Idea It is mainly German, Italian and French-language (private and public) programs from neighboring countries that dominate the broadcasting market in the three respective language regions.

Switzerland has a highly developed media regulation and funding regime. The constitutionally guaranteed rights to freedom of expression, information, and media freedom are complemented by the state's duty of care for diversity and quality in the media sector. The resulting state funding measures, for example, in the area of indirect press subsidies, amounted to approximately CHF 50 million in 2021.

Press

Switzerland has long been considered a newspaper nation. Unlike in many other European countries, the proportion of print newspaper readers still exceeds the proportion of online newspaper consumers. Data from 2019 show that, particularly in the over-55s age group, a large proportion of Swiss consume print newspapers (77%, 100%), while they are significantly less popular among younger age groups. In contrast, the proportion of online newspaper consumers is relatively consistent across all age groups (see Figure 1).

The weekend newspaper "Schweiz am Wochenende" achieved the largest reach in German-speaking Switzerland in 2020/2021, with around 950,000 readers. The free daily newspaper "20 Minuten" had around 935,000 readers during the same period. Its counterpart for French-speaking Switzerland, "20 Minutes," had the largest reach among daily newspapers, while "Corriere del Ticino" led in Italian-speaking Switzerland. The average circulation of the daily newspaper "20 Minuten" in 2021/2022 was almost 326,000 copies per issue. This makes the free newspaper "20 Minuten" the largest-circulation daily newspaper in Switzerland. Its French counterpart, "20 Minutes," followed in second place with a circulation of around 134,000 copies (see Fig. II).

Until the late 2000s, the proportion of weekly newspaper consumers in Switzerland remained unchanged at around 80% of the total population (2010: 82%). With the establishment of digital media, at least the consumption of print media eventually declined significantly. The Swiss newspaper market – like many other European newspaper markets – has thus been on a downward trend for several years. The number of newspaper titles was only 249 in 2021, compared to 316 in 2010. Although the number of online equivalents increased over the same period, this could not halt the general decline in importance.

Fig. I: Consumers of newspapers (print and online) by age group in Switzerland 2019

Source: Turulski (2022a)

Fig. II: Average total circulation of the largest daily newspapers in Switzerland 2020-2022

Source: Turulski (2022b)

Ringier AG

The top Ringier AG is the largest media company in the Swiss press market by revenue. The Zurich-based group has been family-owned since its founding in 1833. Chairman of the Board of Directors, Michael Ringier, represents the fifth generation of the family to lead the company. His sisters, Annette Ringier and Evelyn Lingg-Ringier, are equal co-owners. Ringier employs approximately 6,400 people and reported revenue of CHF 965.3 million for the 2021 financial year. 

The Swiss press title with the highest circulation in the company's portfolio is the tabloid ViewFor a long time, the paper was the most widely circulated paid newspaper in Switzerland, but has since fallen significantly behind (see Figure II). The core publishing business encompasses a total of over 120 newspapers, magazines, web and mobile platforms, and several printing companies. Investments in radio stations, TV broadcasters, event organizers, and ticketing are also part of the business segments, as are activities in the online classifieds market and e-commerce.

Ringier generates a significant portion of its revenues in foreign media markets – including Germany, where it published the German political magazine Cicero The majority of Ringier’s Eastern and Central European business is carried out via Ringier Axel Springer Media AG The 50:50 joint venture with the German publisher Axel Springer Verlag, founded in 2010, operates in Poland, Hungary, Serbia, and Slovakia and is one of Eastern Europe's leading media companies in the magazine and online segments. The company employs approximately 3,100 people and has a portfolio of over 70 print and 60 digital offerings. In 2019, revenue amounted to €3.1 billion.

TX Group AG

Another important player on the Swiss press market is the media company TX Group AG (formerly Tamedia AG). The TX Group, headquartered in Zurich, was founded in 1893 and employed approximately 3,600 people in 2021. With annual revenue of CHF 957.4 million (2021), it has been Switzerland's second-largest publishing house in terms of revenue for years, second only to Ringier AG. The group's portfolio, which primarily operates in German- and French-speaking Switzerland, includes daily and weekly newspapers, magazines, online platforms, and newspaper printing operations.

The title with the highest circulation and reach on the Swiss newspaper market – the free commuter newspaper 20 minutes – is part of the TX Group portfolio, as is the Daily Advertiser from Zurich. The latter is the second-largest paid newspaper in Switzerland, with an average total circulation of approximately 106,000 copies (2021/2022). The TX Group also ranks among Switzerland's leading websites online with its online service 20min.ch (see Table II).

After a period of weak sales during the crisis years between 2002 and 2004 (sales for 2002/03/04 in CHF million: 640.3/574.4/566.6), during which the Board of Directors voluntarily waived ten percent of their salaries, the TX Group is currently in a sustained phase of growth and consolidation. Against the backdrop of a somewhat aggressive expansion and acquisition strategy in the domestic media markets, as well as constant investments in the development of its digital divisions, the group has enjoyed steady growth over the past two decades – with the exception of a few loss-making financial years. The most notable measure in this context was, of course, the acquisition of the Lausanne-based publishing house Edipresse. The publishing activities of Edipresse, previously one of Switzerland's leading press companies, were gradually integrated into the TX Group between 2009 and 2011. The merger resulted in a nearly 50 percent jump in TX Group's revenue between 2010 and 2011.

On April 18, 2018, the TX Group announced its acquisition of the Basler Zeitung. The sale of the newspaper had been expected after editor-in-chief Markus Somm announced it to his own editorial staff. In return, the TX Group sold its shares in the Tagblatt der Stadt Zürich (65 %), the weekly newspapers Lausanne Cités and GHI (Genève Home Informations, 100 % each), as well as the Furttaler Anzeiger and the Rümlanger Anzeiger (50 % each) to Christoph Blocher's Zeitungshaus AG. On October 11, 2018, the Competition Commission approved the acquisition.

NZZ Media Group

The top NZZ Media Group is the third-largest media company in the Swiss press market, albeit by a considerable margin behind Ringier and the TX Group. In 2021, the NZZ Media Group generated revenue of CHF 239.5 million, ranking far behind Ringier and the TX Group. The group's position in the Swiss press landscape has continued to decline in recent years. In 2012, the company generated revenue of CHF 519 million.

However, the NZZ Group, with its flagship and namesake of the New Zurich Newspaper (NZZ) is one of the oldest newspapers still published worldwide. First published on January 12, 1780 (until 1821 as the Zürcher Zeitung), the NZZ today has an average daily circulation of 93,000 copies (see Fig. II). This quality newspaper enjoys an outstanding international reputation and is particularly valued for its dense international network of correspondents, its economic analyses, and its arts and culture coverage. In addition to the Neue Zürcher Zeitung, the NZZ Group publishes a number of other regional and national newspapers and magazines, is active in book publishing, operates regional radio and TV stations, produces TV formats, and participates in digital business models.

In October 2012, the NZZ Group was the first Swiss newspaper company to introduce a paywall in the form of a metered paywall for the online edition of its premium product, the NZZ. In response to the ensuing debates about the profitability of payment models in the Swiss market, the NZZ Group countered by pointing out that the paywall was only one measure within an overall digital strategy. The latter, given increasing mobile and online traffic, was already yielding initial successes.

Broadcasting

Compared to other European countries, the Swiss watch the least television. Nearly 40 percent of the population spends less than or at most one hour a day watching television. The Swiss broadcasting system is characterized by the prominent position of foreign broadcasters and the dominance of public broadcasting. The most important Swiss private radio and television stations operate under license and at the local and regional levels.

The majority of licensed radio and TV stations are subsidized by a portion of the broadcasting fees – through a process known as fee splitting. The amount of the splitting contributions for private radio and TV increased many times over compared to previous years as a result of the complete revision of the Federal Radio and Television Act (RTVA) in 2007. Private radio broadcasters entitled to splitting contributions received CHF 18.5 million annually for the period 2008 to 2011, instead of the previous CHF 9 million, and private television broadcasters received CHF 31.4 million instead of the previous CHF 6.5 million. In 2012, the fee shares for radio and TV were increased again from CHF 49.9 million to CHF 54 million (approximately 41% of total fee revenue) due to the increase in the number of fee-paying households. Compared to 2008-2011, the splitting amounts increased again by more than 60% in the period 2019-2021, from just under CHF 49.9 million to CHF 81 million (see Table I).

Tab. I: Local/regional radio and television: Distribution of revenue from reception fees (fee splitting), in CHF

 2008-20112012-20152016-20182019-2021
Radio stations with advertising (commercial radio stations)15.685.72116.961.01020.744.22625.093.492
Commercial-free radio stations (complementary radio stations)2.781.9972.910.3664.839.6515.607.168
Total Local/Regional Radio18.467.71819.871.37625.583.87730.700.660
Total local/regional television31.408.00434.600.00041.916.11650.299.340
Total fee splitting49.875.72254.471.37667.499.99381.000.000

Source: Federal Statistical Office, OFCOM

Until 2019, radio and television license fees were linked to the ownership of a receiving device, as per Article 68 of the 2006 Federal Act on Radio and Television (RTVA). On January 1, 2019, a new system came into force under which the radio and television license fee is levied per household and business, regardless of the device (Articles 68–70 RTVA). Regardless of the number of people living in the household, all private households must pay an annual fee of CHF 335. For collective households, the fee amounts to CHF 670 per year (as of 2022).

Swiss public broadcaster SRG SSR is constituted as a private-law association. Its organizational structure follows a two-pillar model: electoral, supervisory, and advisory functions are performed by the four regional companies. The SRG corporation, with its five corporate units Swiss Radio and Television (SRF), Radio Télévision Suisse (RTS), Radiotelevisione Svizzera (RSI), Rasiotelevisiun Svizra Rumantscha (RTR), and Swissinfo, is responsible for broadcasting production.

SRG – headquartered in Bern and under the direction of Gilles Marchand since 2017 – employs approximately 5,300 people and generates annual revenue of approximately CHF 1.53 billion (2021), approximately 70 percent of which comes from license fees and approximately 30 percent from income from commercial activities. With its eight TV channels (three each in German and French, and two in Italian), and 17 radio stations, SRG is the Swiss market leader and can also hold its own against foreign competitors during prime time.

Internet

In 2019, almost the entire Swiss population between 15 and 54 years of age had internet access. Across all age groups, 93 percent of the population uses the internet. Among people aged 55 to 64, the proportion of internet users was also estimated at 93 percent, compared to 80 percent in this age category five years earlier. For those aged 65 to 74, the figure is 88 percent. 58 percent of people aged 75 and over use the internet, compared to 33 percentage points lower in 2014.

The Swiss online market is characterized by a high degree of market concentration. This applies both to the market power of individual companies and to the diversity of highly popular online publishing offerings. Especially in the area of publishing-relevant online offerings, in addition to news providers from outside the industry, the Big Three of the Swiss media market (TX Group, Ringier, NZZ Group) and SRG SSR account for the majority of market share. The US media groups Alphabet and Meta are also experiencing a strong increase in user numbers.

Table II: The most visited websites in Switzerland, November 2022

RankWebpage:DescriptionParent company
1.Google.comSearch engineAlphabet Inc.
2.YouTube.comVideo portalAlphabet Inc.
3.Facebook.comSocial networkMeta Platforms, Inc.
4.20min.chNewsTX Group AG
5.Blick.chNewsRingier AG
6.Google.chSearch engineAlphabet Inc.
7.Wikipedia.orgEncyclopediaWikimedia Foundation
8.SRF.chBroadcastingSRG SSR
9.Instagram.comSocial networkMeta Platforms, Inc.
10.Twitter.comSocial networkTwitter Inc.

Source: Similarweb.com

Regulations

Article 93 of the Swiss Federal Constitution (BV) on "Radio and Television" forms the basis of the regulatory action of the Swiss state. In addition to the state's competence to shape media regulation, it also sets out a general service mandate for radio and television operators: "Radio and television contribute to education and cultural development, to the free formation of opinions and to entertainment. They take into account the specific characteristics of the country and the needs of the cantons. They present events objectively and adequately express the diversity of views" (Article 93, II, BV).  

The Radio and Television Act (RTVG) and the associated ordinance (RTVV) distinguish the primary recipients of the constitutional performance mandate between public broadcasters, licensed radio and TV broadcasters, and non-licensed private broadcasters. After public broadcasters, the programs of licensed broadcasters are most closely monitored for compliance with performance standards through the use of a quality assurance procedure. Non-licensed broadcasters, on the other hand, are only required to adhere to minimum standards, are permitted to use only a few transmission frequencies, and do not receive any subsidies from the fee splitting system.

Article 93 of the Federal Constitution also stipulates that radio and television must take special "consideration" for the "position and role of other media, especially the press." The special status of the press in the Swiss media and constitutional structure expressed here is also reflected in the various state press subsidies. Most relevant here are indirect press subsidies in the form of reduced postal charges for newspaper transport and reduced VAT rates.

The most important Swiss media regulatory bodies include the Swiss Federal Council, the Federal Communications Commission (Comcom), the Federal Department of the Environment, Transport, Energy and Communications (DETEC), and the Federal Office of Communications (OFCOM). The Swiss Federal Council has extensive regulatory powers. In addition to setting reception fees and determining maximum program numbers, it appoints the seven members of ComCom, which, as an independent licensing and regulatory authority, is responsible, among other things, for the allocation of telecommunications frequencies.
 
The UVEK examines, among other things, the financial budget of the SRG, decides on licenses for private broadcasters and determines the share of funds from the fee splitting that the licensed private broadcasters receive.

OFCOM was founded in 1992 and is institutionally affiliated with the Federal Department of the Environment, Transport, Communications, and Communications (DETEC). Its responsibilities include a wide range of regulatory and advisory responsibilities, as well as the development of media policy strategies and the designation of measures for the "promotion of the information society."

Sources/Literature

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