Transcript Presentation Template

26 > 28 May 2003
34th FIPP World Magazine Congress
Carrousel du Louvre - Paris
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
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Unemployment: 9.8%

Inflation: 1.8%
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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)
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Music/Film/TV – 5 titles (Springer, Burda, Europress, Ringier,
Hachette)
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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)
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Will to use of intra company synergies
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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
26 > 28 May 2003
34th FIPP World Magazine Congress
Carrousel du Louvre - Paris
Thank you for your attention!