SBS, the media group above the Play television channels, is about to invest inthe capital of radio station Nostalgie. For the Telenet subsidiary, a bit ofradio presence is a welcome channel to promote its TV programs in this way.
When at the beginning of this year a fierce battle raged between a number ofmedia groups to distribute three FM frequencies, one media group stood outmainly due to its absence. Transmitter group SBS, known for the televisionchannels under the Play banner, did not submit a file to the surprise of manyconnoisseurs to conquer the airwaves with its own radio station, although thecompany has had ambitions on that front for years.
However, the fact that SBS – 100 percent owned by telecom company Telenet -did not submit a file did not mean that the media group had shelved its radioplans. CEO Jeroen Bronselaer immediately indicated that it was looking for’collaboration’ with a party that had submitted a file. And deep in the filethat radio station Nostalgie submitted, a short passage already outlined howSBS could still get involved in the radio debates: with an entry into thecapital of Vlaanderen Een, the company behind the radio station.
Eleven months after Nostalgie saw its FM frequency extended for the next fewyears, that scenario is now becoming reality. According to our information,the parties involved are currently finalizing an entry of SBS into VlaanderenEen, and thus into Nostalgie. That deal would be completely knocked off earlynext year.
Minority share
Today, Nostalgie is 75 percent controlled by the Mediahuis newspaper group,and the other 25 percent by NRJ, the French company behind the radio brandsNostalgie and NRJ. According to our sources, SBS will take over part of theMediahuis shares, while NRJ’s participation will remain intact. It is notclear how much SBS will get exactly. But Mediahuis remains the majorityshareholder, according to our information.
Profile Nostalgia
Radio station Nostalgie is a radio station that focuses on classics. Today,the station is still owned, through the company Radio Vlaanderen, by mediagroup Mediahuis (75%) and the French radio group NRJ (25%), owner of theinternational radio brand Nostalgie.
According to the latest CIM figures, Nostalgie has a market share of 5.8percent and reaches 1.2 million listeners every month. In 2021, the companyhad a gross operating profit of 1.1 million euros on a turnover of 11 millioneuros.
It is therefore not the intention of SBS to weigh heavily operationally on thepolicy of the channel, which continues as Nostalgie. Since Nostalgie’s FMlicense was granted on a demarcated format for a specific target group, thereis not much to change in terms of content. For SBS, the entry into Nostalgieis more of a strategic participation in a field in which it has been trying togain a foothold for decades.
SBS has always been a pure TV player in our country, which had to competeagainst competitors with a presence on the air. Both the VRT and DPG Media(VTM, QMusic, Joe) can use radio channels to carry out so-called cross-promotion – whereby TV programs on the radio receive support and vice versa.If SBS wants to promote its programs on the radio, it has to buy advertisingspace from the competition today.
NRJ Flanders
This seemed to change in 2018, when SBS received a license for a network ofsemi-national frequencies, the original intention of which was to launch itsown brand ‘S-Radio’ with broadcasts in large cities. But eventually, on thatfrequency package – also together with Mediahuis – NRJ Vlaanderen, aimed at ayoung target audience, was launched, with a license to the radio brand of theNRJ group.
However, partly due to the inadequate coverage, NRJ Vlaanderen has hardly beenable to break any pots in recent years (see box). Currently, network radio inFlanders can count on a market share of barely 0.46 percent, with hit radioeven having to give way to purely digital channels such as Willy (DPG) andsister channel Nostalgie+.
5.8%
market share
Nostalgie has a market share of 5.8 percent in Flanders.
With a foot in the door at Nostalgie, SBS can meet its needs much better.Although the station’s market share was under some pressure in the latest CIMfigures, it has proven itself in recent years as a fixed value in the Flemishradio landscape. The classics channel currently reaches 1.2 million listenersa month, representing a market share of 5.8 percent.
Nostalgie’s FM license is currently still under scrutiny by the Council ofState, after the entertainment company Studio 100 initiated proceedingsagainst the distribution of the licenses in February. Studio 100 aspired tohave its own radio station, but then – unjustly, in their opinion – missed theprizes. However, that procedure at the Council of State can take a long time,something that SBS clearly does not want to wait for.
None of the parties involved would like to comment for the time being.
Quid NRJ?
While SBS is close to entering Nostalgie, the question is what should happento the other station in which the group participates. Together with Mediahuis,SBS is also co-owner of the network radio NRJ Vlaanderen, but it is having ahard time making a fist in the Flemish radio landscape.
The shareholders are therefore on the verge of intervening. According to ourinformation, the channel’s freelance and interim employees have alreadyreceived their notice and the permanent employees have been informed that theyare working on a strategic plan to turn the tide. Several options are still on