The nine local broadcasting organisations in Germany.
The Minister Presidents of the sixteen German federal states have decided on the most extensive reforms to public broadcasting in a while. This time it’s not about minor organizational changes but about cutting red tape. Why did they decide on sweeping actions, and what does the new treaty entail? Are there any effects beyond the German border?
So much money…
While their structure is determined politically, public broadcasters in Germany report independently of political influence. With the exception of Deutsche Welle (DW), they are barely financed by tax money and instead mostly through a mandatory broadcasting fee, which currently amounts to a considerable 18.36 euros per month. This is comparatively high, considering that most streaming services can entertain a broad audience at lower subscription fees. Comparing the German system to other countries further highlights this disparity. In the UK, for example, one pays less per month to receive the BBC and other public stations. Additionally, in the United Kingdom, it is possible to opt out of the fee for those who do not use the services. This is not the case in Germany.
… and even more money?
In 2023, a substantial nine billion euros was spent on public broadcasting in Germany. That is much more than the BBC’s fiscal year revenue of 6.8 billion euros. But that’s not all. An increase in the German license fee has been levied for some time now. The “Commission for the Determination of the Financial Needs of Broadcasters” (KEF), named in true German fashion, concluded that inflation and technological investments justify a further increase to roughly 19 euros per month. The heads of the federal states in charge of approving the hike apparently found this to be a sour note. After some of them outright rejected the plan, they recently presented a counter proposal.
The New Treaty
The most extensive changes will occur in the television sector. Currently, there are several channels that reach a rather small audience yet maintain their own programming. According to the new state treaty, there will be mergers of thematically related broadcasts.
The European Channel(s)
Of most interest to European readers might be that 3Sat and Arte DE will merge. The formats are indeed very similar: both channels focus on culture, documentaries, and education. In fact, both channels are also international projects. 3Sat is purely German-language and a collaboration of the public broadcasters from Germany, Switzerland, and Austria. Arte is a Franco-German channel that translates its content in six languages. Although its market share in Germany is slightly below that of 3Sat, Arte is worthwhile insofar as it can utilize economies of scale by translating the same content for more countries. Localizing is much easier than producing. A standardized internet presence can also be used to save costs.
There will likely be significant debate over which of the two brands will prevail. Arte is likely to dominate due to its strong recognition and wider international presence. This outcome is further supported by the potential for French objections if Arte were to be sidelined.
The expenditure for 3Sat is modest on the German side. A significant increase in the budget for Arte should therefore not be expected, as the whole reform is a cost-cutting and streamlining measure.
Information Overload
The procedure for other channels will be similar. For the last years, there have been three dedicated information channels at the federal level: tagesschau24, Phoenix, and ZDFinfo. Along with the obscure educational channel ARD alpha, these will be merged into one or two offerings. It should be noted that the audience for ARD alpha, which is supposed to be school-aged, is estimated at less than half a percent. These figures are somewhat dated, and there don’t seem to be any newer statistics available. This seems to be a pattern, as we’ll learn later on.
According to a presentation on the topic, the merger will probably result in two channels: one with an educational remit and one with a continuous news program. The ARD Alpha successor should be approached with caution: teenagers are effectively reached by public broadcasters via social media. A separate channel for this audience is not needed, neither online nor via cable.
Entertainment for Young People
From now on, the programs for young people will be divided into generations: The youngest children are served by the long-established channel KiKa, a true cultural asset in Germany which broadcasts pedagogically sensitive programs.
Gen Z’s dedicated provider is an association between most public broadcasters called Funk. It’s a purely digital offshoot that has contracts with YouTube to maintain ad-free channels but is now also taking off on TikTok and Instagram. On all platforms, the content is cleverly adapted: short, quickly edited formats on Tiktok with green screen and subtitles, longer videos on YouTube in reportage form. The accounts, some more and some less successful, each deal with just one topic, for example history or news.
For millennials, there will presumably be a more traditional channel that combines two existing offers, including ARD One. While One was intended for younger audiences, it supposedly had a lower average market share among 14- to 49-year-olds than amongst the overall audience (neither reached more than one percent). If these numbers are accurate, it would raise serious questions about the channel’s relevance, its programming choices, and its marketing strategy. And in case you’re wondering where the figures for One originate, they are sadly not official statistics; instead, they are derived from an analysis by a specialist magazine for the media industry. This is a good example of the lack of accountability that the new state treaty aims to address.
Increased Transparency and Accountability
The secrecy surrounding some broadcaster activities will be a thing of the past, as the new treaty stipulates more transparency and requires profitability analyses for new projects. The objective here is to strike a balance between the obligation to innovate and necessity.
There are numerous other changes as well. The number of radio stations each public broadcaster is authorized to operate will be limited by their reach going forward. If an online broadcasting medium, such as web radio, does not achieve the desired effect, it is to be discontinued. In general, communication with the respective target groups will be emphasized from now on. License fees for sports broadcasts are to be capped.
Conclusion
In summary, a total of four or five broadcasters will be scrapped at the federal level. The initiative is nothing short of surprising, as the German public broadcasters were previously considered unassailable in their ever-expanding programs with correspondingly rising contributions. Especially niche channels aimed at a young audience have rightfully raised some eyebrows in the past.
An open online consultation on the reform is currently underway. It will then be finalized at the end of October. The funding issue will also be clarified at this time. There should no longer be any justification for another fee increase with the planned cutbacks.