Why the Swiss voted against halving the media fee

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Public broadcasting in Switzerland will not receive less fee money from households and many companies for now, as in previous years. In a federal vote on the popular initiative “200 francs is enough!” (SRG initiative), the Swiss voters decided with an unexpectedly high no-vote of 61.9 percent (38.1 percent yes) against a drastic cut in funding for the Swiss Broadcasting Corporation (SRG SSR).

According to initial analyses by political scientists, there was a strong additional mobilization primarily among people in urban environments in a final sprint. The initiative demanded that a household should only pay 200 francs (220 euros) annually instead of the current 335 francs (370 euros) for the SRG SSR and 38 private TV and radio stations. This is because the latter also receive funds from the media fee.

The broadcasting fee for radio and TV was still 465 francs per year until 2019 – that was 400 to 410 euros at the time. In 2019, the media fee was lowered by the Federal Council to 365 francs (327 euros at the time). The reason for the reduction at the time was a popular initiative from 2015 to amend the Radio and Television Act, which was adopted. As a result, there was a system change in 2019 from a device-dependent reception fee to a device-independent household fee. In 2018, another radical popular initiative was overwhelmingly rejected, which even advocated for a complete abolition of the media fee (“No-Billag” initiative).

“Halving initiative” rejected

Now a far less rigorous new SRG initiative, also called the “halving initiative,” was voted on. It could have led to numerous job cuts and had significant consequences for the SRG SSR group and the Swiss media industry as a whole. Although it was not about reducing the household fee by half. However, according to information from the federal government and the SRG, if the initiative were adopted, the broadcaster's budget would still be reduced by about half (from 1.5 billion francs to approx. 750-800 million francs), as corporate fees would also have been lost in the event of a yes vote.

For many, it was an important point of the voting arguments: the abolition of corporate fees. Currently, companies with an annual turnover of 500,000 francs or more are obliged to pay a turnover-based corporate fee for radio and TV. This is divided into 14 tariff levels and ranges from 160 to 49,925 francs per year. However, the Federal Council had already decided to increase the threshold for the obligation to pay from 2027 to 1.2 million francs in turnover. This will exempt around 80 percent of companies from the fee. Around 80,000 companies will remain liable for the fee. Nevertheless, the Swiss Trade Association (SGV) and numerous cantonal trade associations supported the SRG initiative, which called for a complete cessation of corporate fees to relieve the economy.

Cost pressure

For private households, the Federal Council had also decided in advance to reduce the fee in two further steps to 300 francs: from 2027 to 312 francs and from 2029 to 300 francs annually. In any case, it decides on the amount of the media fee, as the federal government is also responsible for awarding concessions.

In addition to the Federal Council, both chambers of the Swiss Parliament also rejected the initiative. They felt it went too far and would have led to deep cuts in TV and radio offerings. But the Federal Council also sees a need for action at SRG.

SRG is already having to save money because the amount of the broadcasting fee has steadily decreased. Especially after the 2018 referendum, where SRG SSR was to be virtually abolished (in fact, by eliminating the media fee, which was rejected by 71.6 percent of the votes), it began to save considerable amounts of money. The message had been received and extensive measures were initiated to increase acceptance after the vote. The consequences for SRG SSR: Hundreds of jobs were cut, reforms were implemented for leaner, cost-saving structures, program changes were made, and real estate was sold.

Life is getting more expensive

The initiative “200 francs is enough” was launched by an SVP-dominated committee with support from the SGV and the FDP's youth organization (Young Liberals). Part of the initiative also aimed to prohibit SRG from carrying out a large part of its online activities. Reason: Private media must be protected. The initiators argued that this was to prevent unfair competition to the detriment of private publishers who rely on digital subscriptions. SRG has extended its activities far beyond the “essential public service”. It operates outside its mandate with numerous online portals and social media platforms, thus competing with private media using license fees, the initiators argued.

Apparently, a significant portion of the younger generation felt that an average of 10 francs less per month for public service media was desirable – there are simply too many pay-TV offers and subscriptions to pay for. Media consumption has changed – and life is becoming more expensive anyway, was a main argument of the initiators. On the other hand, a current study by the University of Zurich shows that the reach of SRG's offerings is very high, especially among young adults, mainly for news content, and it is precisely this age group that trusts them the most.

However, it is also relatively clear that many initiators were more interested in (media) political power. The right-wing populist Swiss weekly newspaper Weltwoche provided interesting examples of the propaganda campaign against SRG for weeks and months. For example, it stated a “culture war over SRG” and concluded: “The Helvetic establishment is throwing all its forces into the battle to defend its honey pots.” At the same time, the newspaper drummed up support for the initiative. It becomes clear: “This is no longer a normal voting campaign – this is a culture war, something like a Helvetic Trump moment,” the magazine wrote.

However, many social groups share the view that it was precisely about preventing this “Trump moment.” “What is being sold as financial relief for households and companies actually pursues a political agenda: to put pressure on SRG, to reduce media diversity and to influence public debate,” wrote Amnesty International, for example.

Support for SRG

Prominent athletes, national sports and cultural associations spoke out against weakening SRG and public service. And 1000 professors from all over Switzerland signed an Open Letter with precise arguments against halving the budget and drastic restrictions on online offerings. Because these would have fatal consequences for the journalistic performance of SRG SSR in all language regions. “In a small and multilingual country like Switzerland, private media cannot fill the resulting gap,” write the signatories.

A media public service in all national languages would not be affordable, not only the professors calculate. Because the fact is that an offering in four languages (German, French, Italian, Romansh) is only possible because German-speaking Switzerland shows solidarity with the other parts of the country: 73 percent of the media fee comes from German-speaking Switzerland, but the local radio/TV, SRF, only receives 43 percent of it.

Fundamental discussion required

A fundamental discussion about the future in the digital age is needed, according to many groups – including even the Federal Media Commission (EMEK). In a position paper, it emphasizes that for the functioning of a free democracy, it is more essential than ever to ensure a stable supply of journalistic content and services. And considering “the profound changes in the media market,” it considers it necessary for politics and society to fundamentally address these issues.

Your own boss, Media Minister Albert Rösti, SVP and its president from 2016 to 2020, has apparently done so. Four years ago, he was a co-initiator of the halving initiative (as well as a supporter of the 2018 initiative to end “compulsory fees”), but he rejected the current SRG initiative. A change of heart? Not at all, according to observers of the Swiss media scene. Because Rösti has already pushed through two reductions of the media fee himself by ordinance (to 312 francs from 2027 and to 300 francs from 2029).

With these reductions decided by the Federal Council, SRG would only receive 930 million francs from the media fee anyway. And consequently, the shrinking at SRG SSR will continue – by 2029, SRG will likely have to cut 900 full-time positions in all broadcasting regions. And political attacks against public service radio and television will likely not cease either.

(afl)