International and pan-European news Channels: an overview

INTERNATIONAL AND PAN-EUROPEAN NEWS CHANNELS: ANOVERVIEW Thierry Vissol De Boeck Supérieur | Reflets et perspectives de la vie économique 2005/4 - Tome XLIVpages 53 à 71

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Reflets et perspectives de la vie économique, 2005/4 Tome XLIV, p. 53-71. DOI : 10.3917/rpve.444.0053

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Reflets et Perspectives, XLIV, 2005/4 — 53

International and Pan-EuropeanNews Channels: An overview

Thierry Vissol1

Abstract – The European television industry has evolved in a dramatic way since thebeginning of the 90’s. The number of channels has been multiplied by 12, the share ofthe public television decreased to around 30 %, and the number of thematic channelsis in thousands. In this general landscape, generalist TV channels (public or private),that still hold the bulk of the audience are nevertheless losing ground. In the sametime the trust of their viewers in the quality of the information transmitted in the newsand political magazines is strongly decreasing. This global situation opened a windowof opportunity for the development of news and political thematic channels, specifi-cally those with a pan-European approach (PETV), like Euronews, CNN, BBC world,Bloomberg, etc., as well as to national channels with an international approach likeTV5, Deutsche Welle…). This paper analyse this evolution as well as the prospectivefor the development of such channels in the framework of the general European Tele-vision stations landscape.

Key words – television channels, Pan-European Television (PETV), television audiences,digital television.

The technology evolution, and the EU directive “Television without boarders” (1989),have facilitated the development of trans-boarders TV channels, since the beginningof the eighties. In 2004 it was estimated that there were 218 such channels on atotal of more than 3.660 televisions in the twenty five countries members of the EU2.

Table 1 : Number of TV channels (EU-25 – 2004)

Source : European Audiovisual Observatory (2005)

1. European Commission. This paper is adapted of one of the chapter of Vissol (2006).2. Cg. European Audiovisual Observatory (2004).

Type of channel

EUR-15 (1990)

EUR-15 (2004)

EUR-25 (2004)

EUR-25 (2004)

National – 1.224 123 1.347

Regional/local – 2.074 239 2.313

TOTAL 103 3.298 362 3.660

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The vast majority of trans-boarder channels are national televisions broadcasting inother countries and in particular in countries with the same language (like GermanTVs in Austria, French TVs in Belgium and Switzerland, etc.). But the number ofpan-European (PETV) or International TVs, which focus is designed for an interna-tional audience and for this broadcasted and competing all over the worlds,remains limited. Those few are high quality channels, often in several languages. Alloperate in parallel interactive websites, proposing live images and sound as well ascomplementary information, often in many languages. These thematic channels,although they still catch a rather weak audience, they all together hardly reach 2 %of market share, are fast growing particularly on the top market that is: well remu-nerated, highly educated people. They gain market shares to the detriment ofgeneralist televisions. This success may obviously attract more players that renderinteresting studying them more in details, which is the purpose of this paper.

1 A STATE OF THE PLAY: MAIN CHARACTERISTICS AND AUDIENCES

Cross-boarder televisions with multinational audience and international productionoperations were launched as an experiment during the 80’s. Many did not survivelonger than a few years3. From the beginning of the 90’s trans-national televisionchannels developed steadily and their number grew from 15 in 1991 to more than120 in 2003. Most specialized in niche genre, ranging from children’s entertain-ment to movies, music and sports, sometimes acquiring large audiences, such asEurosport, MTV, Cartoon Network, National Geographic, etc. From the mid 90’sto present only fifteen are well known, either due to wide distribution or the natureof their content. Amongst these fifteen, no more than 7 are dedicated to news,24 hours a day, 7 days a week. These channels are mainly global and political(BBC World, CNN International, Euronews, Sky News) or global and economical(Bloomberg, CNBC-Europe, Reuters-TV). They mainly utilize cable and satellitedistribution and consequently they only reach part of European householdsalthough this is rapidly increasing.

Table 2 : Full-time distribution of the leading pan-European News Channels (In millions of television households)

Source: M&M EuropeGuide: Pan-European Television 2001, 2005 and 2005(*) Euronews is doubling these figures with partial time broadcasting through windows in partners TV.

3. This was the case of Super-Channel, started by ITV and Virgin, the WH Smith channels Lifestyleand Screenport, BBC’s TV Europe and the EBU’s Europa TV. See: Chabaly J.K. (2003).

1997 2000 2002 2005 2005/2000BBC World 25.1 45.5 56.4 72.3 + 58.9 %Bloomberg – 24.6 37.6 ? –CNBC Europe 12.6 32.9 41.9 62.0 + 88.4 %CNN International 58.9 73.2 84.7 98.2 + 34.1 %Euronews (*) 30.4 34.0 48.9 62.8 + 84.7 %Sky News – 18.6 24.0 34.6 + 86.0 %TV5 45.5 66.1 71.4 94.6 + 43.1 %

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INTERNATIONAL AND PAN-EUROPEAN NEWS CHANNELS: AN OVERVIEW

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Reuters TV could be added to the above list – although it is a very specific profile (seeparagraph 3.6) as could the German international public channel Deutsche Welle forwhich no similar figures are available and the French language TV5. The latter twodiffer from the others in that they are generalist channels with a strong focus on inter-national news and information programmes. They also broadcast in several lan-guages (or with subtitles in different languages) and so will be considered here.

The success in Europe of the CNN international’s 24/7 formula – an unex-pected result of the first Iraqi war – created renewed interest in such news channelsand lead to the creation of Euronews, BBC World and to Bloomberg and CNBCbeing broadcast in Europe. As their success increases and, although competitionfor their audience category is fierce (mainly high educated and wealthy social cate-gories), some new operators may try to penetrate this specific market. Their suc-cess may be measured, not only by the expansion of their geographical coverageand audience, but also by the increase in advertising revenues, up from 31 millionsin 1988 to 628 millions in 2002. This 20-fold increase should be compared to the2.5-fold increase in total TV stations ad-revenues during the same period.

In terms of audiences, such channels are certainly popular, but generallyattract the top end of socioeconomic categories, which represents more or less20 % of the EU population, and specifically the top 10.4 millions (4 %) of Europe’sleading consumers and decision makers. Obviously, they social behaviour differsmuch from that of the average consumer.

Moreover, these consumers seek of news for specific and well definedreasons: political interest, career, job necessity or social image.

Table 3 : Main characteristics of the PETV consumers

Source : Europe 2003, Ipsos-RSL

Table 4 : Agreement of PETV consumers with key statements

Source : Ibid.

Average personal annual income (Euros) 79.800

Average value of personal investments (Euros) 352.000

Have three or more cars in household (%) 20 %

Spend 15 or more nights in a hotel in last 12 months on business (%) 29 %

6+ international business air trips in past 12 months (%) 16 %

Internet access/connection (%) 96 %

Banking online (%) 28 %

Share dealing online (%) 10 %

Director (%) 34 %

Average value of business purchases ($) 184.000

I always like to keep up with the news 95 %

Having an international perspective on current affairs is important to me 77 %

I tend to take the lead in decision making 64 %

I consider myself a citizen of Europe, not just my own country 61 %

I look out for opportunities to visit places I have not been to before 75 %

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Nevertheless, when using the usual ratings measurements, the cumulatedaudience share in the EU of these PETV News channels remains small: no morethan 2 %, even if some on some national markets they may get more. But it is alto-gether a significant number in the very fragmented TV stations’market.

Without much surprise results obtained by the various channels are somewhatdifferent in terms of notoriety, due to the multiple quotations of some channels inthe press (Figure 2).

Figure 1 :

Source: EMS 2005

Figures concerning the consumption of the 20 % richest households in 16 Europeans countries4

Figure 2 : International channels’ notoriety

Source: European Television, Eurobarometer Flash, January 2004

4. The EMS (European Media Marketing survey measures the consumption habits of the 20 % richesthouseholds, since 1995, in the following 16 countries: Austria, Belgium, Denmark, Finland, France,Germany, Ireland, Italy, Luxemburg, Nörge, Netherlands, Portugal, Sweden, Switzerland and UK, byinterviews on a sample of 24.002 people. The polled population represents around 40 million people.

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Economically speaking, the players are quite different. Several are part of multina-tional groups and profit-oriented: CNN is a branch of Time Warner; Bloomberg isthe financial information multinational; CNBC, which merged with Dow Jones in1995; Sky News is part of the Murdoch group. Others are branches or linked toone or several national public televisions: BBC world – although commerciallyfunded (see below) ; Deutsche Welle; and TV 5 that regroups French languages TVchannels from several countries. The latter group includes non profit, public orga-nisations and has a national cultural or political mission, mainly to explain the posi-tion of the country on important issues. But both, private and public, have at theirdisposal huge financial means (ranging from hundred million euro to nearly 1 billiona year) and human resources (several hundreds), as well as bureaus in many geo-graphical zones, with the exception of Euronews.

Although Euronews was been created by several public televisions it is quiteseparate from its public or private competitors. Firstly, its five core share holdersare from five different countries (France, Spain, Italy, Switzerland and Russia), the-refore it is not considered a national station by any national government5. As it isnot specifically profit-driven (although it tries to make profits), this multinationalpublic share ownership provides few incentives for heavy investment by itsowners. Therefore, contrary to its main competitors its revenue (35 millions eurosannually) and human resources (237 people) are quite limited. Contribution feesfrom its share holders do not represent more than 30 % of its income, the rest isfrom advertising, cable subscriptions and private or public contracts. It neverthe-less benefits from the images gathered by its shareholders and from windows inmany partners televisions which enable it to increase its broadcast capacity andreach at low cost.

2 INTERNATIONAL NEWS TV VERSUS NATIONAL GENERALIST TV

The digital cable and satellite market in which PETV operates is far from saturatedwith the exception of a few EU counties such as Germany, the Netherlands andBelgium where digital cable and satellite connexion are available to more than90 % of households. The average EUR-25 penetration rate is of 23.2 %. Digitaltechnologies and interactive capacity may increase the appeal for such channels.It will certainly enable an increase in PETV customer loyalty and diversify theaudience. However, given the user costs for such technologies, the market will pri-marily, in the medium term, be accessible only to the wealthier and more educatedconsumers. Even if Digital Terrestrial TV (DTTV) decoders with interactive capabilitycost less than 150 euros, few channels will benefit from consumer free access (inFrance, for instance, only 18 channels will have free access). According to marketanalysts of Zenith Media, digital technologies will reach 31 % of the market in 2010.

5. As the France Television share in the Euronews’ capital is inferior to 30 %, the French regulatorCSA refused to give Euronews a channel on the new DNT system.

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Table 5 : Full Digital TV reception in EUR-25 (2004)Number of households and percentage of total TV households

Number of TV households EU-25: 178 759 000Source : SES Astra, Screen Digest and European Audiovisual Observatory, 2004 Yearbook, vol.2, 2005

Table 6 : Number of connections (businesses + households) to broadband lines in EU-25 and as a percentage of the total population

Source : Broadband access in the EU: situation at 1 January 2005, Communication Committee,1 June 2005

As far as cable and satellite TV channels are concerned, based on 2002 figuresand projections the digital penetration enabling more choice and facilitating thedevelopment of interactive TVs or multimedia system’s operators, has at least athreefold growth potential.

The share of the leading and mainly generalist national TVs is in constantdecline, due to competition, not only on the traditional TV market, but also fromthematic channels, and also between medias (TVs, radios, newspapers) and tech-nologies that support them specifically the Internet. It should be stressed that theInternet carries content from all the other three media. Therefore, for a true pictureof the consumption of these media, one should add not only the audited TVviewing figures, but also those for the web. In any case, the Internet affordsconsumers – with the necessary IT tools and skills – quicker, and generally stillaffordable subscription costs, access to all the media, leading to a mores selectivemultimedia approach. However, access costs structures could result in higherpay-per-view or subscription cost for access to a large selection of services via theInternet. Companies offering services via the Internet will have to find revenue tocompensate for decreasing revenue via the usual channels. Subscriptions, pay-per-view, pay-per-night, etc., could develop rapidly.

Decreasing audience share of leading TV stations in Europe (from 38 % in1996 to 29 % in 2002 – see table below), is apparent. This decline does not affectthe international news TV channels, which, on the contrary, have benefit from themarket trend and demand for pertinent information trend. This has contributed to

Cable and Satellite subscribers Fully equipped in Digital TV

Direct tohome DTHSatellite

Cable TV TOTALCable+DTH

Digital Cable TV

DTT Digital Terrestrial

DTH Direct to Home sat.

Digital Subscriber Line DSL

TOTALDigital

43 440 000 58 907 000 102 347 000 7 569 300 10 871 500 22 665 100 410 200 41 516 100

24,0 % 32,5 % 56,5 % 4,2 % 5,0 % 12,4 % 0,2 % 23,2 %

January 2003 January 2004 January 2005

– Number of lines 12 796 896 23 532 118 40 064 671

– As a % of the population 2,9 % 5,2 % 8,9 %

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the fragmentation of the audience, and renders more difficult and costly globalinformation campaigns; it also creates also a window of opportunity for new, highquality, political channels.

Figure 3 : Comparison of trends in audience share for PETV and the main channels

Source: TV Key Facts 2003 and 2004 – IP Network; EMS 1997/2004 (All respondents) EPTV databased on Daily reach; Universe (individuals): 38 909 000 (1996), 39 293 000 (1997), 39 590 000 (1998),39 679 000 (1999), 40 023 000 (2000), 40 357 000 (2001), 40 259 000 (2002) and 39 846 000 (2003)

Although until present PETV viewers have been limited to the more educated andwealthier sections of the population, TV viewer fatigue with the news programmesoffered by the generalists TVs – unavoidable in a competitive market for a nonsegmented population –, and decreasing costs to access the new informationtechnologies and transmission modes, could enlarge the sociodemographic reachof the international news channels and their linked websites. In the EU universemeasured by EMS (i.e. 39.8 millions adults) the number of those who watch atleast one PETV channel every week increased from 47.6 % in 1996 to 58.5 % in2003 that is 23.3 million adults.

Viewers of international channels are generally also heavy consumers of news-papers. The rapid overview on the global news which an international 24/7 TVchannels offer, thanks to their wide availability (in airports, hotels, work premises),is certainly a great advantage in a society where technology has created a demandfor instant information. The rapid access to breaking news of all kind will permitinternational TV news channel to increase penetration. Shifts in preferences andgeneralisation of media usages in work premises will also tend to favour increasedviewing time, without overly damaging the core of newspapers readership which isshifting from utilizing paper supports to viewing the Internet sites. Obviously, theincrease used of the Internet to access the news market may somewhat modifythe situation.

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3 CHANNEL BY CHANNEL REVIEW

3.1 CNN6

When CNN launched on 1 June 1980, the brainchild of media entrepreneur TedTurner and the world’s first round-the-clock news channel, it was a single USnetwork available to 1.7 million homes. Twenty five years later the CNN brandcomprises nine TV networks and services, seven websites and six content distri-bution services, including CNN Mobile, and reaches a billion people worldwide.

CNN expanded beyond its US boundaries in September 1985 with the launchof CNN International which was beamed into homes, hotels and embassiesaround the globe. CNN International can now be seen in more than 180 millionhouseholds worldwide, including more than 136 million households, hotel roomsand specialised outlets in Europe, the Middle East and Africa.

In total, the CNN branded networks and services are available in six differentlanguages to more than one billion people in more than 200 countries and territo-ries around the world.

CNN has 37 newsgathering bureaux around the world with the largest bureauand production centre outside the US located in London where more than50 hours of programming is produced every week, combining prime time weekdayEuropean news, business and sports programmes with weekly feature shows.

CNN’s web sites are among the world’s leading news and information desti-nations, including the award-winning www.CNN.com. Four news web sites arealso produced by CNN specifically for its international audience: www.CNN.cominternational edition, www.ntv.de (German), www.cnn.co.jp (Japanese) andwww.CNNArabic.com (Arabic), updated continuously from production centresworldwide.

According to all international media surveys, CNN has consistently remained,at the world level, the leading international news channel. But, on the main Euro-pean markets, Euronews is not far behind.

3.2 BBC World7

BBC World is the BBC’s 24-hour international English language news and informa-tion channel. It was launched as BBC World Service Television in Asia in 1991. In1995, BBC World began broadcasting in its present format, and was launched inEurope in March of that year. (A combined BBC entertainment and news channelhad previously been distributed to parts of Europe.) BBC World is a commercialchannel, funded by advertising and subscription revenue from distribution par-tners. Although the BBC originally wished to set up an international television news

6. Text reviewed by the Channel.7. Text reviewed by the Channel.

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channel as a public service proposition, government of the time made clear that itbelieved this should be done on a commercial basis.

BBC World forms part of the BBC’s Global News Division, which also comprisesthe 43 language services of both BBC World Service radio and the international-facing website www.bbcnews.com, plus the research and analysis provided byBBC Monitoring. There is a separate method of funding for BBC World Service radio;it receives an annual grant-in-aid from Britain’s Foreign and Commonwealth Office.

BBC World is transmitted outside the UK, and is currently available in268 million households in 200 countries and territories through a variety of digitaland analogue satellite, cable and terrestrial platforms. It is working with online,broadband and mobile partners to develop new methods of distribution to thewidest possible audience. The channel is also available in all offices at the Euro-pean Commission’s headquarters in Brussels and in all MEPs’offices in the Euro-pean Parliament at Brussels and Strasbourg. It also operates a websitewww.bbcworld.com.

BBC World estimates that it has a weekly global audience of 59 million people. Ithas been named Best News Channel in Europe by the Hot Bird ™ TV Awards anunprecedented three times in the past seven years. Over the last three years, BBCWorld’s audience has increased by more than 70 %, or nearly 2 million viewers to4.5 million, specifically an elusive audience of affluent, educated, cosmopolitan adults.

The vast majority of BBC World’s editorial output is the same for all viewers,wherever they are watching the channel. However, certain programmes are trans-mitted on a regional basis. This is possible because BBC World can be split intofive feeds, covering Europe, the Americas, Africa, South Asia and the Middle East,and Asia-Pacific and Australasia. When the European Parliament is in session,BBC World broadcasts the specific weekly programme produced by BBC-Parlia-ment – The Record Europe – focusing on European affairs and politics, for viewersin Europe only (see part III, chapter 2). Asia Business Report is seen four timeseach weekday by audiences across Asia and Australasia, while there are opportu-nities for weekly business and political strands targeted at viewers in India. Additio-nally in Japan, up to 91 hours of output is translated into Japanese each week bya highly-skilled team based in the BBC’s headquarters in London.

In 2005, BBC World introduced an updated positioning that emphasises thequality of the journalism seen on the channel. BBC understands the BBC brand tobe synonymous with trust, balance, fairness and accuracy. It tries to remain dis-tinctive from its other competitors by the depth, breadth and balance of its journa-lism, the size and geographical spread of its reporting staff, and the award-winningcurrent affairs and documentary series that accompany its hourly news pro-grammes. Successive qualitative surveys in Europe have found that BBC Worldscores far more positively than its main global competitor, CNN, in terms of trustand depth of coverage.

In the financial year 2004-5, BBC World group turnover was £28.4m, whichwas 9 % up on the prior year, despite significant weakness in the US dollarexchange rate. Its retained loss was £11.2m, an improvement from £11.6m in theprior year. BBC World Lted employs around 150 people directly, with responsibilityfor the operational side of the channel, including airtime sales, distribution, marke-ting, research and technical operations.

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BBC World benefits of an agreement with BBC News for the provision of thecore news output for the channel. This includes a dedicated newsroom comprisingapproximately 50 BBC News journalists, and access to a network of 250 corres-pondents specialising in subjects or geographical areas. BBC News has a total of58 bureaux: 17 of these are in the United Kingdom, with a further eight spreadaround the European Union. The contractual relationship and pricing betweenBBC World and BBC News is governed by the BBC’s Fair Trading Guidelines. Thepricing principle – incremental cost pricing – is benchmarked regularly againstcommercial competition to ensure that this practice remains valid in the market.

3.3 Euronews8

Euronews, a 24/7 news channel, was launched on 1st January 1993 by a consor-tium of European public service broadcasters, members of the European Broad-casting Union (EBU). It is the first multilingual pan-European channel. Euronewsbroadcasts simultaneously in seven languages: English, French, German, Italian,Portuguese, Russian and Spanish. It is also developing windows in other lan-guages, starting with Romanian in 2005. Its website (www.euronews.net) pro-poses news with a choice for the same 7 languages. Since January 2005 itlaunched its first interactive service in Great Britain on the Telewest network.

Euronews transmits all over the world through cable and a network of21 satellites, including developments on all new digital cables networks : networkfor home viewer services, such as broadband, digital terrestrial television broad-casting (DTTV), and networks for mobile phone services (such as 2G/3Gtelephoning) or mobile phone television (DVB-H). It is now received in 155 millionhomes across 102 countries via cable. In particular, more than 123 million house-holds receive Euronews in Europe, 27 million in the Russian Federation, 3 million inthe Middle East and Africa, and more than one million in the US. Euronews todaycovers 31.9 million households in digital satellite and 5.7 million in digital cable,making up together 55 % of Euronews overall cable and satellite coverage indigital. In 17 countries, 25 national broadcasters take Euronews’ signal and broa-dcast it live on their national terrestrial network. In addition to Euronews’ cable andsatellite coverage of 68.7 million households, EuroNews is therefore available to anextra 108 million households terrestrially. It is also available in 1.4 million hotelrooms. Euronews can therefore be seen in the most hotels in Europe, at airports,on PDA’s, mobile phones, onboard airlines and on its website.

As a rolling news channel, with news every half-hour, Euronews editorial lineconsists in informing viewers of the world affairs from a European perspective.News headlines from Europe and the world, are broadcast every half-hour. Maga-zine articles fill in the remaining schedule time, although this occasionally displacedfor breaking news or life coverage. These regular slots focus on financial andmoney market data, financial news, sport news, scientific news and magazines, artand culture, weather, European politics and the lives of European citizens. Owing to

8. Text reviewed by the Channel.

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the multilingual approach the channel, contrary to its competitors, has no on-screenanchor but rather uses voice-over narration to accompany the news footage pre-pared by professional mother-tongue journalists. Comments may therefore slightlyvary from one language to another. Some short news items are also shown withoutany commentary under the banner “No Comment”, often using striking video foo-tage to make a clear point. This programme is among the most successful.

In 2005 Euronews won a 5 year contract (1 year, renewable four times) fromthe European institution, to achieve a European public service mission like. Fol-lowing this contract, 10 % of its production and more or less 10 % of its diffusionmust be information, forums, magazines and debates about EU affairs. This isdone under the cover a very strict editorial independence charter, part to the con-tract. It can count on a budget of € 35 million per year and employs 235 people ofwhom 144 are journalists.

Audience figures indicate that, in 2004, Euronews reached 4.3 million cableand satellite viewers every day and an additional 3.4 million through its terrestrialwindows, with a total of 7.7 million viewers per day. It is, on the European market,one of the first, and on some segments, the first international news channel. Itsmain audience, although spread over a larger sociodemographic spectrum, ismainly the same as that of its two main competitors: CNN and BBC World.

3.4 CNBC Europe9

CNBC Europe is a 24/7 business and financial news channel broadcast in Europe.It started in 1996 as a subsidiary of the American television CNBC, launched byNBC Universal (Subsidiary of general Electric) in 1989. In 1997, it merged with DowJones news channel in Europe: “European Business News”, and Asia. But in July2005 NBC announced that it would acquire the Dow Jones stake in CNBCEurope, if cleared by regulatory bodies.

The CNBC service is available in Europe via satellite on cable and digital plat-forms. It reaches 85 million households and 340, 000 hotel rooms. Its website(www.cnbceurope.com) and that of Dow Jones (www.dowjones.com) are freelyaccessible on the internet. Worldwide, CNBC reaches 220 million households andclaims 6 million viewers monthly. In Europe, it reaches a significant number of pro-fessional and decision makers, but is well behind CNN, Euronews, Sky News andBBC World. CNBC has opened a feed for Scandinavian countries called CNBCNordic, showing identical programmes, but with a ticker focusing on Scandinavianstock exchanges. It also operates three local channels in their 3 languages:

• CNBC-e, the Turkish version of CNBC. Unique in the CNBC family, it broad-casts popular general entertainment programmes and films after the businessday has ended ;

• Class CNBC (formerly CFN-CNBC), the Italian version of the network, ope-rated in conjunction with Class Editory and Mediaset ;

• CNBC Arabiya, the Arabic version of the channel.

9. Comments not received from the channel.

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CNBC Europe broadcasts in English. Half of the day it broadcasts its own pro-gramming, mainly analysis and discussion of the news and trends impacting onEurope’s business community. For the rest of the time its transmits live much of thebusiness day programming from the United States’ CNBC Channel and occasio-nally that of the 24-hour MSNBC news channel overnight. A series of live links toThe Wall Street Journal and Dow Jones Newswire bureaus give viewers access tothe financial news as it happens. It also proposes tele-shopping at night and sportson week-ends.

3.5 Bloomberg Television10

As with CNBC Europe, Bloomberg Television is a 24-hour business, financial andnews channel. It was launched in February 1994, by Bloomberg L.P.11 An informa-tion services, news and media company (created in 1981). Bloomberg TV is linkedto another branch of the company, Bloomberg News, a financial news wire ser-vice. Bloomberg also operates an international radio and publishes magazines.

It presents a multi-screen format, simultaneously delivering global news,market data, financial market updates, breaking news headlines and weather. Itoffers also interactive television facilities allowing viewers to access breaking finan-cial information on demand while watching television.

It broadcasts via 10 networks, in seven languages, reaching 200 millionhomes worldwide. It counts on three English-language channels (USA, UK/Pan-Europe, and Asia Pacific). It also broadcasts in French, German, Italian, Japanese,Portuguese, and Spanish (Spain and Latin America). It is distributed on digitalcable and on satellite. Bloomberg operates a website (www.bloomberg.com). Thissite is specialised in financial news and information and derives its content fromBloomberg News and Bloomberg Professional Service.

Bloomberg TV has 500 anchors and correspondents worldwide, butobviously utilizes the resources of Bloomberg News that includes 1.600 reportersand 94 bureaus worldwide. Bloomberg global revenue reached 2.4 billions dollarsin 2002, and it employs 8.200 people.

3.6 Reuters Television12

Reuters Television is not a traditional broadcaster. It is a business-to-business pro-duct of the Reuters Group plc, created in 1994. It could be questioned why thistelevision channel is included in this study due to its so specialised activity andaudience. It supplies news coverage (video news) mainly to 450 of the world lar-gest news broadcasters representing over 1.000 channels in 100 countries, aswell as to 1.000 newspapers and publishers. It supplements what large players

10. Comments not received from the channel.11. It was created by Michael Bloomberg that was elected mayor of New York City in November 2001.12. Text reviewed by the Channel.

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derive from their own networks of correspondents, and enables smaller playersthat can afford it to cover foreign news stories in particular. It defines itself as aglobal information company providing information tailored for professionals in thefinancial services, media and corporation markets. Nevertheless, Reuters TV is thebest example of what may succeed in the near future with the mix of globalisationand technology evolution.

Since its creation in 1850 Reuters has been a specialised news and financialagency directed to professionals. But the “general news” aspect and the use of thelatest technology to deliver faster than its competitors those news and informationhave always characterised this agency. It was for instance the first to announce theAbraham Lincoln’s assassination, the end of the World War I or the fall of the BerlinWall. Reuters provides access to its product via all possible new technologies(Internet, pager service, multimedia news-on-demand with interactivity). It suppliestexts in 18 languages.

As these new technologies permit a general access (free or paying), it is clearthat news – texts, graphics, videos and pictures –, which main users are professio-nals and media are also accessible to consumers outside financial services. It runsvideo clips on the “Reuters TV” section of their global networks of websites(www.reuters.com and www.reuters.co.uk). Up to 12 million people view thesesites each month. It just begun an internet delivered service, rolling this out onMicrosoft’s Media Centre system – a new PC and entertainment system for thehome, available in nine markets including the US and many European countries. Itis obviously the beginning of a policy towards the general public.

Reuters operates in 200 cities located in 94 countries, through customer seg-ments, geographic sales and services channels and shared resources to builddeploy and support its products and services. One of these four segments is theMedia one that serves the needs of newspapers, television and cable networks,radio stations, websites and consumers. In 1999, Reuters created a 50/50 jointventure with its long-time rival Dow Jones & Company to form Factiva that providesglobal news and business information through its website (www.factiva.com).

According to Reuters, “Reuters’news” is seen by over 1 billion people everyday. But Reuters is considered as one of the largest international multimedia newsagency. It has approximately 14.500 staff, of whom 2.300 editorial staff, journalists,photographers (600) and camera operators in 196 bureaus serving 129 countries.

Reuter’s revenue reached 2.9 billions pounds (circa 4.5 billions euros) in 2004.

3.7 Deutsche Welle Television (DW-TV)13

Since 1995 Deutsche Welle TV is the German 24/7 public international broad-caster. It went on the air for the first time on 1st April 1992 in German and Englishand was originally the public international multilingual radio linked to ARD. Its hea-dquarters are located in Bonn. Its scope and organization are defined by a law (the

13. Comments not received from the channel.

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“Deutsche Welle Law”), the most recent of which dates from 2003, and enteredinto force in 200514. This law define DW as a tri-media organization:

• DW-TV, satellite television which broadcasts daily sequencess in three lan-guages: German, English and Spanish, with brief segments in other lan-guages. In February 2005 it launched an Arabic service to present news in theArabic language, and presented by Arabic speakers ;

• DW-Radio: shortwave, satellite and digital radio broadcasting in 29 languages,with 24- hour service in German and English ;

• DW-World.de: 30 language website (http://dw.world.de)

The law defines the DW’s mission: “provide listeners and viewers abroad with acomprehensive picture of political, cultural and economic life in Germany and topresent and explain the German position on important issues”. It should also pro-mote intercultural dialogue and the German language. It takes quite an interest inEuropean affairs and broadcasts tailored EU affairs programmes from Brussels. Itco-operates with other networks such as Euronews, DRS (SF DRS) and Suisse TV,and works with 4.300 partners and 436 institutions.

DW broadcasts via a global satellite network with six satellites covering the fivecontinents via partner stations (re-broadcasters: a range of cable operators andtelevision channels around the world re-transmitting DW-TV programmes). Withthe exception of Greenland and the Antarctic, DW-TV can be received directly viasatellite all over the world. It estimates its coverage at 120 million households.

DW possesses three foreign bureaus: Washington, Moscow and Brussels anda bureau in Berlin, specifically to cover the parliamentary and political affairs.

Notwithstanding a strong reduction in funds allocated by the government (acut of 55 million euros in the last nine years, from 315 million in 1997 to 261 millioneuros in 2005) and a strong reduction in its human resources, DW still occupies astaff of more than 1, 250 in 2005, of which 500 work for DW-TV. DW total revenuewas estimated at 295 million euros in 200315, but a breakdown of revenue for thevarious branches is not detailed.

3.8 SkyNews16

SkyNews, is the Europe’s first 24-hour television news channel to have been laun-ched as part of the 4 channel Sky Television satellite in 1989. It is fully owned byBSkyB, part of the Murdoch’s News Corporation. It does exchange programmeswith its US sister channel, Fox News. Since 2001 it is a 24-hour, English language,rolling news station, broadcasting from BSkyB’s headquarters in London. It isavailable in terrestrial digital, satellite and cable. Its main market is the UK and Ire-land. It is available in 40 countries and reaches 80 million households.

14. Legislation for the Public Broadcasting Corporation Deutsche Welle, Act of 2003.15. Deutsche Welle, Annual Report, 2003-200416. Comments not received from the channel

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SkyNews operates 5 regional bureaus and 7 international ones inWashington, Moscow, Jerusalem, Beijing, Johannesburg, Brussels and Dehli. Italso operates a website independent of BskyB (www.sky.com/skynews/home).

Staffing and costs are not known for Sky News. In 2004 it won a contract tosupply the UK Channel Five with its news services. The service will include 60 staff(journalists and technicians). BSkyB, aside from Sky News, operates several TVand pay TV (movies, music, travel and even betting) had a turnover of £ 4 billionsterling in 2005 (roughly 6 billion euros).

3.9 TV517

Created in 1984, TV5 is not a bona fide “news channel”, but more a generalist one,broadcasting international news 6 hours a day. It is a global television network,mainly broadcasting programmes from 10 French language channels. Its fivefounder networks (which gave the Channel its name) are: France Television fromFrance, RTBF from Belgium, TSR from Switzerland, SRC-CBC and TVA fromQuebec, Canada. Since then several other channels participate, including theFranco-German channel, ARTE.

Through its 18 satellites, 38 digital bouquets and 6.000 cable networks, TV5reaches 160 million households all over the world in 203 countries and territories.Hotels (3 million) and airlines (9 companies) have broadcast agreements. It broad-casts through 8 different signals to account for the different time zones andsensibilities. Cumulated audience is estimated to 25 million viewers per day or73.5 million per week18. It also operates a website (www.tv5.org) with a specificEuropean site: “Un jour en Europe”.

Although broadcasting its members’specific programmes, TV5 also pro-duces its own programmes (documentaries, fictions cinema and sport) as well asinformation and news which constitute the lion’s share of programmes (18 dailynews journals or flash, 11 weekly political magazines, 3 bi-monthly, 4 monthly).Programmes are in French, but TV5 proposes sub-titles in 10 languages (French,English, Arabic, Spanish, Portuguese, Dutch, German, Swedish, Danish andRussian). Just as BBC World (for English) and Deutsche Welle (for German), TV5also offers programmes to help viewers or teachers learn and teach the Frenchlanguage.

EU affairs are regularly integrated in the programmes: news journals, in-housepolitical magazines such as the weekly “Kiosque”, the monthly “Une fois par mois”.Special programmes are broadcast when EU subjects are prevalent in the news:enlargement, European year of languages… Some thematic magazines, such asEuro-Mediterranean subjects (immigration, delocalisations, cultural interactions,etc.), are treated on a regular basis. Moreover, some European programmes of themember channels are re-transmitted (e.g. the FR3 “France Europe express” or theArte “Les dessous de cartes”).

17. Information reviewed by the channel18. EMS 2005.

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TV5 has 3 foreign bureaus with permanent staff (Bangkok, Los Angeles andBuenos Aires and correspondents in 25 countries. It employs a permanent staff of228 of whom 38 are permanent journalists. In 2005, the budget was fixed at90.2 million euros.

3.10 Europe by Satellite (EbS)

Europe by Satellite (EbS) is the EU news agency. EbS broadcasts by satellite andby internet in broadcast quality the news, images and sounds of all EU institu-tions. Aimed at television channels and journalists of all media, the pictures aretransmitted live or recorded 24 hours a day. Those pictures are usually rough cutpieces i.e. unedited pictures. Nevertheless, some specific programmes are spe-cifically produced on subjects linked to news, but this is on an ad-hoc basis thansystematically. Programmes are available in original language, but some aresimultaneously translated into French, English German, and others: for examplepress conferences may have as many as 32 languages.

Table 7 : EbS running costs – 2004

Source : European Commission

In terms of content, it is a rather simple system as compared to a real news agencywhich would select, edit and offer factual commentaries. Total budget for 2005and its breakdown are presented below.

EbS operates a website with image streaming in broadcast quality. But, down-load time is still very long and most TV channels prefer, for professional reasons,the satellite connection to the internet one, which is generally utilized for a passiveviewing. A continuous flow permits an offer of 21 languages through a Commis-sion server that allows up to 10, 000 simultaneous connexions. It offers also freevideo on demand, and access to EU images and video library.

CONCLUSION

The brief panorama presented above show a clear diversity in the various channelscoming either from their public or private statute, from their aim, scope, missionsand from their dimension and means. Obviously, the big private companies (CNN,Bloomberg, Reuters, BSkyB) have means (financial, personal) that no public institution

Value in Euros In % Total

– Transmission costs (1 Satellite) 1.350.000 31.3 %

– Maintenance (technical and administrative) 700.000 16.3 %

– Human resources 1.500.000 34.8 %

– Production costs 757.000 17.6 %

TOTAL 4.312.000 100.0 %

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and few public broadcasters can ever dream of. Bloomberg, Reuters and CNBC-Europe are specialised in economic and financial information although they alsocover political information. But their main business and target – at least up to now– is the professionals.

As noted by J.K. Chalaby19, both BBC and CNN are in a unique position to dealwith the complexities of global politics. They both cover the UN. Their news-gathe-ring facilities give them the ability to break international news and give real-time andround-the-clock coverage of international events. Above all, they can use their world-wide resources (and network affiliates in CNN case) to adopt a global perspective onkey events and rise above the national angle that characterizes the treatment of inter-national news by terrestrial broadcasters. Nevertheless, both channels are perceivedhas giving a national (US and UK) perspective or newsworthiness selection.

Interestingly enough, the Euronews’ experience shows that a rather smalltelevision channel (as compare to its competitors – see recap table below) cancompete with large players on that “niche” of international political and economicalnews, as long as it can respond to a clear demand and ensure credibility and qua-lity. Just as for the general public credibility and trustworthiness are crucial ele-ments for success. The analysis made by MBV Europe show clearly that thegreatest appeal of these channels, for the specialised public they mainly attract, isto be up to the minute, trustworthy sources, rather impartial and accessible whiletravelling, being in airports, or hotel’s rooms.

Figure 4 :

Source: Media Brand Value Europe, 200420

19. Jean K. Chalaby (2003), op. cit.20. Belinda Barker and Nigel Jacklin: “Media Brand values survey”, MBV-Europe, 2004, www.objec-

tiveresearch.com/mbv/index.htm.

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Nevertheless, quickly evolving technology implies the resources to make the ade-quate investments as well as sufficient funds to expand geographical coverage,use of emerging technologies (mobile phone, the Internet with interactive capaci-ties) and over the world news coverage.

From the tables presented supra (§ 2)21, it is clear that the market for such spe-cialised TV is expanding to the detriment of national generalist and news channelsand that its growth is also linked to the diffusion of new numeric technologies. Tobe complete, the growth of this market should be analysed together with thegrowing success of the websites linked to the various TV channels. In any case, thesimultaneous growth and potential growth for the future of these channels andtheir linked websites indicate that there is certainly a margin of manœuvre for newpertinent (i.e. demand oriented and targeted to the right audience) and techno-logy-to-the-point channels, even if this market will remain rather a niche marketthan a mass market.

REFERENCES

Chalaby J.K (2003): “Television for a new global order” Gazette: The InternationalJournal for Communication studies, Vol. 65, no. 6 p. 457-472.

European Audiovisual Observatory (2004, « La télévision transfrontières dans l’Unioneuropéenne : impact sur les marchés et aspects juridiques choisis », WorkingPaper, March.

Vissol T. (2006), Is there a case for an EU information television Station? EuropeanCommission, OPOCE, January 2006.

Bibliography of Tables

Barker, Belinda and Jacklin, Nigel (2004) : « Media Brand values survey », MBV-Europe,2004.

“Broadband access in the EU: situation at 1 January 2005”, Communication Committee,DG Information and Society, European Commission, June 2005.

Chalaby, Jean K. (2003): “Television for a news global order. Transnational televisionnetworks and the formation of global systems”, The International Journal forCommunication Studies, Vol. 65, n° 6, London, Sage Publications, 2003.

“European Televisions”, Eurobarometer Flash, European Commission, January 2004.

“International and pan-European Televisions”, European Media and Marketing Surveyinterviews and Media and Marketing Europe Guide, EMS, NSS, 2001, August2004 and January 2005.

“Television 2004 Key Facts”, IP RTL Group, February 2005.

“Yearbooks”, European Audiovisual Observatory (OEA/OAE), Strasbourg, volumes 1,2 and 5, 2003, 2004 and volume 1, 2005.

21. Extract from “InTV presentation”, International TV research Group, 2004, www.intvresearch.com/why.html.

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Documents

International and pan-European news Channels: an overview