Broadcasting is necessary, broadcasters are not. A strategy for the german public broadcasting service.

1. A vision for the future
Wolfgang Weicht - July 2016

2. The viewers perspective: value for money?
ZDF
• one price fits all
• obligatory service
• linear broadcasting
• program partial available online
• some advertising
17,98€
Netflix
• different pricing models
• cancel anytime
• on-demand broadcasting
• program only available online
• no advertising
11,99€
YouTube
• free service
• cancel anytime
• on-demand broadcasting
• program only available online
• advertising
0,00€

3. ZDFSAT 1Tele5RTLVOXKabel1RTL IIPro7
60y
45y
30y
0y
15y
The advertisers perspective: Value for Money?
36 40 42 45 45 48 51 60
A V E R A G E V I E W E R A G E

4. Fixing the Problem?
Key Partners
• governmental entities
(federal court, …)
• broadcasting partner
(EBU, external
producer,)
Key Activities
• production &
distribution of
broadcasting content
Key Resources
• extensive set of
broadcasting content
• broad media reach
Value Proposition
• ZDFs mission is to
inform, educate and
entertain their
audience.
• It is independent and
stands for the
freedom of
expression.
Customer Relationship
• A trusted brand
• ”Something for
Everyone”
Channels
• television
• owned platforms
• 3rd
party platforms
• social media
Customer Segments
• German-speaking
audience
• brands targeting this
audience
Cost Structure
• content production & licensing
• broadcasting infrastructure
• people
Revenue Stream
• national TV and radio license fee
• advertising & licensing revenue streams
Less of
this
More of
thisB U S I N E S S M O D E L
Improve
here
Improve
there

5. Solving the Problem!
Key Partners
• governmental
entities (federal
court, …)
• broadcasting
partner (EBU,
external
producer,)
Key Activities
• production &
distribution of
broadcasting
content
Key Resources
• extensive set of
broadcasting
content
• broad media
reach
Value Proposition
• ZDFs mission is
to inform,
educate and
entertain their
audience.
• It is
independent
and stands for
the freedom of
expression.
Customer Relationship
• A trusted brand
• ”Something for
Everyone”
Channels
• television
• owned
platforms
• 3
rd
party
platforms
• social media
Customer Segments
• German-
speaking
audience
• brands targeting
this audience
Cost Structure
• content production & licensing
• broadcasting infrastructure
• people
Revenue Stream
• national TV and radio license fee
• advertising & licensing revenue streams
Regulation Technology
Societal & Culture Socioeconomic
Global Market Condition Economic Infrastructure
Commodities Capital Market
Market Segments
Needs & Demand
Market Issues
Revenue Attractiveness
Suppliers
Stakeholders
Competitors
New Entrants
Industry
Forces
Macro
Economics
Market
Forces
Key
Trends
B U S I N E S S M O D E L

6. Public Service a.k.a. Grundversorgung
Broadcasting
Health Care
Transportation
Energy
Basic supply assumes that it is
offered at a reasonable price -
also in less favoured areas, where
it would not be worthwhile to
purely economic criteria for the
supplier or for the state.

7. A Puzzle of different Worlds
Public Market
ZDFs is regulated by laws, that
don’t always reflect technical
trends.
Public Market
ZDF is in a secured
financial position.
Private Market
ZDF can’t only focus on
attractive market segments.
Private Market
ZDF has an unfair advantages in
the national TV market.
S W O T A N A L Y S E

8. How does “Grundversorgung” look like in a digital World?
How about broadcasting?
ZDF, a linear broadcaster with a
scheduled digital offer?
How about content?
ZDF, a pure video producer?
What are the channels?
ZDF, a TV-station that adapts their
content for the Internet?
Who is the audience?
ZDF, a program senior citizen and
people who are mainly offline?
GRUNDVERSORGUNG

9. Diversity
ZDF in general is perceived as a
television station for senior citizen.
It does not offer broadcasting content
for all age groups.
ZDF needs to become relevant in the
younger age groups again, as they will
become their future fee-payers.
Without a broad spectrum of content
there will not be a broad consent in the
German society to fund ZDF.

10. Source of Culture
ZDF missed the opportunity to become
a producer of original national content.
Most of the content is licensed and not
linked to their brand.
Furthermore they think in silo’s when it
comes to content format; dividing
culture into art and entertainment.
Without unique content and
multifarious formats the brand will not
be seen as a full service provider.

11. Ad-Free
Less then 7% of the earnings is
generated by advertising. ZDF already
lost market shares to private and niche
broadcasters and furthermore can
mainly offer only senior citizen as target
group.
Without advertising ZDF receives a
clearer perception as service provider in
the public view.

12. Digital
Television is still heavily consumed, but
is already becoming the second screen
for the younger generations.
ZDF needs to experiment with owned,
but also 3rd party channels and
platforms to stay relevant for the public
in the future.
Furthermore they should focus on
potential savings, by streamlining the
production process.

13. Strategy Take-Away
1
2
3
4
Ad-Free
Offering a user-driven
service to the public.
Source of Culture
Becoming a producer
of cultural assets.
Diversity
Offering something
for everyone.
Digital
Reducing production costs
and improving the UX.
lean & adventurous
ZDF needs to change their self
awareness. Its no longer about
being a TV station.
Inside an organic
framework
ZDF needs to have an adaptive
legal framework for the future
of broadcasting.

14. Blue Ocean: back to the roots
• Funded by advertising
or subscription models
• Focusing on selected
market segments
Public ServiceCommercial Products
• Funded only by fees known
as “Rundfunkbeitrag”
• Offering something for
everyone.

15. Broadcasting
is necessary,
broadcasters
are not.
Wolfgang Weicht
Open Innovation Manager
basislager@kzwei.org