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Opportunities for cross-border publishing: Czech Republic. Tomáš Böhm General Manager Ringier ČR, a.s. Czech Republic: Content. General Overview Czech Print Market Description Concepts used when entering the market Opportunities and Threats/Obstacles Success Story.
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Opportunities for cross-border publishing: Czech Republic Tomáš Böhm General Manager Ringier ČR, a.s.
Czech Republic: Content • General Overview • Czech Print Market Description • Concepts used when entering the market • Opportunities and Threats/Obstacles • Success Story
Czech Republic: General overview • Population: 10,281,856 inhabitants • Landscape: 78,866 sqkm • GDP per capita (2002): 690 EUR • Unemployment: 9.8% • Inflation: 1.8% • VAT: 22% (print 5%) • Print periodics: 1,260 (120 newspapers , 1,140 magazines)
Czech Print Market is fairly developed • Print Market is dominated by 45 main publishers • Newspapers represent 8 publishers out of which • 6 foreign publishers (Frankenpost, Handelsblatt, Metro, Passauer Presse, Rheinische Post, Ringier) • 2 local publishers • Magazines represent 38 publishers out which • 18 foreign publishers (Readers Digest, Sanoma, Heinrich Bauer, BertelsmannSpringer, Ringier, IDG, Egmont, Hachette…) • 20 local publishers
Major foreign publishers are present on the Czech market • Foreign publishers are active in newspapers and magazines • Newspapers • Frankenpost, Handelsblatt, Metro, Passauer Presse, Rheinische Post, Ringier • Magazines • Bancroft, H. Bauer, Beheer-en, BertelsmannSpringer, Burda, Deutscher Supplement Verlag, Egmont, Hachette Filipacchi , Hearst, IDG, Motor-Presse,Reader’s Digest, Ringier, Sanoma, A. Springer,Vogel,
Foreign publishers successfully control both distribution and advertising incomes • More than 50% of total income is controlled by foreign publishers • Distribution • 81% of income in newspapers goes to 4 major publishing groups • 55% of income in magazines goes to 6 major publishing groups • Advertising • 87% of ad spend in newspapers goes to 4 major publishing groups • 53% of ad spend in magazines goes to 6 major publishing groups
What are the concepts used? • Acquisition of established local publishing house (Rheinische Post, Passauer Presse, Handelsblatt) • Acquisition of/merge with established local publishing house and launch of foreign concepts (Sanoma, Hachette Filipacchi) • Establishing of own publishing house on foreign concepts (Ringier, Europress, Reader’s Digest)
Foreign concepts adopted to local conditions can be seen in all magazine segments • Auto Moto – 5 titles(Springer, Bertelsmann) • Man/Sex/Sport – 12 titles (Egmont, Hachette, Stratosfera, Sanoma) • Woman/Living – 12 titles (Burda, Europress, Sanoma, Hachette, Stratosfera) • Music/Film/TV – 5 titles (Springer, Burda, Europress, Ringier, Hachette) • Children – 12 titles (Egmont, Springer, Europress, Stratosfera) • Computer/Inet/Others – 12 titles (IDG, Burda, others)
Why they are so successfully established and positioned? Because they had/have: • Right concept • Right timing • Skills how to transfer publishing and distribution know how • Right people (optimum mix of locals and expats) • Will to use of intra company synergies • Dedication to long term investments • Will to succeed
What are the opportunies and threaths/obstacles? The opportunities are here, the obstacles can be overcome! • Opportunities: • developed and stable economy and infrastructure • skilled,literate and hardworking people • accession to EU in 2004 • Threats/Obstacles: • in all segments competitors already present • language and cultural barrier • wrong concept/timing/pricing
Success Story: Ringier in Czech Republic Long way with a lot of ups and downs… • History of Ringier: • 1991 – company formed introducing Czech version of Cash • 1992 – introduction of first tabloid in CR based on Blick and TV guide TeleTip, purchase of print plant in Ostrava • 1993 – launch of Nedelni Blesk (Sunday edition). Launch and acquisition of several magazines incl. largest TV guide. • 1994 – 96 – further magazines acqusition (incl. ABC, the oldest children magazine)
Success Story: Ringier in Czech Republic cont. ..but development continues… • History of Ringier: • 1997-98 – joint venture with Axel Springer, news magazine Tyden acquired • 1999 – launch of TV Plus and serious Sunday newspaper (NN) • 2000 – sale of Tyden and close of Sunday newspaper (NN) Blesk becomes for some months most sold daily • 2001 – 2002 acqusition of TV Revue from H. Bauer, acquisition of daily Sport and print plant in Prague
Success Story: Ringier in Czech Republic cont. ..to its final succes! • Current position and portfolio of Ringier: • Ringier – No 2 on total market (15%), No 3 in magazines (12%) • dailies – Blesk: most sold daily, Sport: only Czech daily • Sunday – Nedelni Blesk: the only Sunday newspaper • magazines – 3 TV guides – No 2 on the market Reflex – succesful society magazine ABC – most popular children title (no music) • printing plants – 2 own printig plants securing safe printing of our products