Experience Bertelsmann
Transcription
Experience Bertelsmann
Radio & Music Shows Television Magazines Books Digital International Services 04 Contents 05 experience! Television Shows Books International Magazines Digital Radio & Music Services Good news, bad news. And the hard work that goes into presenting it reputably and successfully Exciting shows, popular documentaries and happy winners in over 20 countries From draft manuscript to bestseller: The long road to producing a successful book Opening up growth markets: Corporate Centers in China, Brazil and India China, Spain, India, France: G + J magazines also have a strong international presence Clicking into the future: How a French radio station wins new listeners daily Tailor-made solutions for services and customers worldwide Without American Idol pop star Kelly Clarkson would probably still be the girl next door from Texas. And without L‘amour est dans le pré many a French farmer would still be going to bed alone after mucking out the stables. This applies beyond France and America too, of course, as the most successful shows are one thing above all: worldwide audience favorites! Random House is the world’s biggest trade book publisher, based in New York. The books of many international bestselling authors and Nobel Prize winners are published here – including The Power of Habit by Charles Duhigg. We follow him and his editor on a book’s path from initial idea to market launch. On the fringes of Bertelsmann’s global management meeting we interviewed Annabelle Yu Long, Thomas Mackenbrock and Pankaj Makkar – the heads of the Corporate Centers in China, Brazil and India – to discuss their international careers, their multifaceted roles and recognizing and tapping into the opportunity of growth markets, especially in this age of new media. It’s common knowledge that, with titles like stern, Geo and Brigitte, Gruner+Jahr is the home of fascinating magazines in Germany. But what does the publishing company have on the market in other countries? We spoke to readers worldwide about their favorite magazines and discovered a surprising diversity of titles – from an art magazine in India to China’s most popular fashion title. Success with new media: The young qeep team develops fresh ideas for mobile phones 36 46 More than 63,000 employees in 40 countries are hard at work serving business customers in many different industries. But what goes into producing a product and then shipping it to over 180 countries? Who is involved in the many different services behind this process? And how is it possible to coordinate such a huge logistics network? A behind-the-scenes look at a company that tends to stay in the background as a service provider. 30 Few media face such great challenges as radio at this point. The days of long radio programs are gone, as are those of endlessly repeating loops of hits. But what needs to be done differently today? What opportunities does Web 2.0 offer? The team of the French radio station Fun Radio knows what ideas will make them fit for the future – and are gaining new listeners in the process. We also take a look at BMG’s music rights management business – a response to the rapid changes in the music industry. Every evening Peter Kloeppel, Ulrike von der Groeben and their colleagues face the cameras. Whether for political headlines, business updates, or the latest sports scores, RTL Aktuell is the channel’s foremost news show. We accompany the team and show how much hard work goes into creating a few minutes of TV news. 06 14 22 When Bertelsmann invests several millions of euros in a Cologne start-up, it has good reasons for doing so. The young team of founders has made the right move at the right time with the idea of transferring gaming and friend networks from the Internet to cell phones. Thomas Rabe: ‘An interplay of continuity and change’ The CEO of Bertelsmann talks about new strategies, internationality and growth. 52 68 60 06 Television 07 Television To the point – RTL Aktuell The news with Peter Kloeppel and Ulrike von der Groeben: relevant and close to the people, expert and easily understood. 20 minutes that involve many hours of work for correspondents around the world and an editorial team of 15 in Cologne Text: Steffi Kammerer. Photos: Arne Weychardt I t’s 5:53 p.m. Editorial Director Gerhard Kohlenbach broods over the schedule, tallying up the seconds. A young colleague hands him a report: A model has died following a beauty treatment. He glances at it, shakes his head, then he asks those around him: “Should we say, ‘Merkel stays’ or ‘Merkel stayed’? ‘Stays.’” An ordinary yet exciting news day in the RTL Aktuell newsroom in Cologne, with a little over 45 minutes to go before the show goes on air. The German Chancellor is visiting Athens today, awaited by protesters bearing Molotov cocktails. And in Roswell, New Mexico, the Austrian Felix Baumgartner is poised to break the sound barrier in a free-fall jump from an altitude of 39 km. For hours, it has been unclear whether he can make the attempt as the wind is unfavorable. For the program, this means a potential hole of about two minutes. An alternative to the live report is prepared – a visit to Barack Obama’s grandmother in A Kenya. 08 Television 09 2:00 p.m. What are the latest news developments? What’s happening in the world? And what are the results of the editorial team’s research in the newsroom? Topics that will be discussed at the conference at 2:00 p.m. 10:30 a.m. The morning starts with research online and in numerous print media. The morning conference starts after this at 10:30. All the external editorial staff participate remotely Mediengruppe RTL Deutschland Facts and Figures Mediengruppe RTL Deutschland includes the free-to-air TV channels RTL Television, VOX, n-tv and RTL Nitro, holdings in RTL II, Super RTL and the three digital channels RTL Crime, Passion and RTL Living. As always, the editorial staff began planning the news during the 10:30 a.m. conference call. Colleagues at the studios from Munich to Hamburg had proposed various items, and the foreign desk offered reports on Syria and Pakistan. As every morning, Kohlenbach had already read six daily newspapers, ten online news sites, and reviewed the headlines sent out by the newswires since midnight: “Otherwise I don’t feel I’m up to speed for the day.” His two chief editors arrive equally well prepared: Peter Kloeppel, who also anchors “RTL Aktuell,” reads the news online from 7:00 a.m.; Michael Wulf, Managing Director of infoNetwork and Managing Chief Editor of RTL Aktuell, has even installed a TV in his bathroom at home so he doesn’t miss anything while shaving. “News is my hobby,” says Wulf, adding he can’t imagine going a day without. “There’s no other way if you want to stay in the loop. Besides, I wouldn’t want it any other way; my work and “The show has grown up. In some ways it has become more political and relevant” on the left the incoming reports, in the middle his schedule, or running order. He quietly reads out the scripts to himself again and again. Every sentence has to sound good: “It’s a nerve-wracking day today in Roswell, New Mexico.” He edits: “It is a truly nerve-wracking day.” Peter Kloeppel arrives and calls out: “Esther’s on the Web.” He has posted the news of a colleague’s early retirement on Facebook. One has to take the time to give people their due. As always, he was in make-up by 5:40 p.m. A quick four minutes is all it takes to prepare his face for television. Kohlenbach is also focused, but calm. “We never really start the show without still being short of reports,” he says. “6:30 to 6:45 p.m. is the most stressful time for me. Before that nothing’s really in yet. Then everything starts happening at once. Half of the reports still need some changes.” Even during the show, something changes a little virtually every time, he says, but that is routine. “Of the team that are there today, 80 percent were here during our coverage of the Iraq war and 9/11. This puts me at ease, too – everyone here knows what’s important and what needs to be done.” Kohlenbach is responsible for the balance of the program. “We usually manage it by consensus, but in the end I have to make the decisions. From 5:30 p.m., we don’t discuss things much anymore. At that point there has to be one person in charge who says that a piece needs to be ten seconds longer or shorter. The next morning we can talk about everything – including whether I made a mistake.” He has been Managing Editor since 2002 and also Editorial Director for five years, running a 15-strong editorial team. They are all on an informal first-name basis. Some of them have worked together for many years. Kohlenbach has been with RTL Television since 1994. When Peter Kloeppel’s 20th anniversary as anchorman of RTL Aktuell was celebrated in spring 2012 there were not only official speeches, but also a very private party where the editorial team treated their Chief Editor to a rousing rendition of songs with rewritten lyrics, accompanied by weatherman Christian Häckl on the piano. When Kloeppel went down on bended knee in thanks and started a Mexican wave, many a tear was shed, says sports presenter Ulrike von der Groeben who has co-hosted thousands of programs with him. When she is out and about in Cologne, people often ask her to “Say hello to Mr. Kloeppel for me,” or ask “Is he really as nice in real life?” “Yes, he is,” she tells them. “He’s very well brought-up. And despite all his success he’s someone who’s not above saying thank you.” She has been married to her husband only a year longer than she has been sitting next to A News & Magazines RTL Aktuell, RTL Punkt 12, RTL Nachtjournal, VOX Nachrichten, news on n-tv. RTL Group’s German television channels offer a variety of news programs, plus tabloid-style magazine programs like Exklusiv, Explosiv and Prominent! The broadcast center in the Deutz district of Cologne is a state-of-the-art building with high-tech digital studios mounted on springs to protect them from vibrations. The building is equipped with emergency generators. Peter Kloeppel, Chief Editor of RTL Television and RTL Aktuell anchorman personal interests overlap in that regard.” The next conference is at 2:00 p.m., and at this one the team more clearly defines the program’s look, the length of the items, and the overall structure. Kohlenbach takes his cue partly from how long his colleagues talk about a given item. Everyone is talking about Baumgartner’s jump through the sound barrier, so he gets 2 minutes 10 seconds. Rising electricity prices are given 1 minute 30 seconds. The Editorial Director’s desk is next to the conference table in the open-plan office. He sits facing three screens: on the right a live ticker, 2:45 p.m. Information everywhere: in the newsroom, news channels are running on countless screens as presenters and editors meet again to decide the main topics of the show 10 Television 11 Who’s who on the RTL Aktuell editorial team? 4:00 p.m. In the newsroom, the first reports are edited and audio is added 5:15 p.m. A camera crew in Bonn quickly procures original sound bites for a report “News is my hobby. My work and interests overlap” Michael Wulf, Managing Director of infoNetwork RTL Anchorman Peter Kloeppel Born in 1958, he studied agricultural science at Göttingen from 1978 to 1983 and trained at the Henri Nannen School of Journalism in Hamburg. After that, he was an editor and later studio manager at RTL-plus in Bonn and RTL correspondent in New York. Since 1992 he has been anchorman of RTL Aktuell and since 2004 also Chief Editor of RTL Television. Kloeppel in the studio. Both are rarely ever sick, and they’ve even run the New York Marathon together. Since Fall 2010, the RTL Television’s news programs have been produced in a broadcast center that is second to none. The light-filled building with a digitized high-tech studio is in the Deutz district of Cologne, just behind the railroad station. To minimize vibrations, the side away from the tracks was chosen, and the studios are mounted on metal springs. All risks have been hedged against, and all systems are backed up with emergency generators. The “newsdesk,” the editorial control center with close to 20 employees, coordinates all programs. This is where the central editorial calendar and the list of reporters who have been deployed hangs on the wall alongside a large map of the world. This is also where longerterm forward planning takes place, where major events like the election, the Olympics, or the starts of major lawsuits are entered in the calendar. A special hotline takes calls with breaking news that require a rapid response: Osama bin Laden has been killed. Or at 04:00 a.m.: Michael Jackson has died. Just a few doors down is the “newspool,” where all the footage is edited and audio is added, by several shifts of colleagues. In the senior editors’ section, Peter Kloeppel and Michael Wulf have offices next to each other with a view of the Rhine. The two make a good team, occasionally even finishing each other’s sentences. They have worked together since 1990, when Wulf was Managing Editor and Kloeppel was a New York correspondent. They have produced RTL Aktuell together since 2004. Asked why neither of them ever went elsewhere, Kloeppel says: “The workplace atmosphere. And we have great freedom when it comes to the realization of topics.” The hierarchies are flat, he says. “If a suggestion is good, we go ahead with it.” 6:25 p.m. RTL Aktuell’s Anchorman Peter Kloeppel only needs about four minutes in makeup before going on air Kloeppel won the Adolf Grimme Award for his coverage of September 11th, 2001. In 2007 RTL Aktuell won the German Television Award for best news program. For several years, the program has outperformed heute (ZDF) in the total audience ratings, and they’ve always been the most-watched news show among younger audiences. With a total of nearly four million viewers, RTL Aktuell is Germany’s second most popular news program, even overtaking Tagesschau (ARD) on some days. “The mix has to be right,” says Wulf. Domestic and foreign news, not only politics, but also coverage of services, medicine and sports. “We deliberately try to stay close to the people, which is probably what sets us apart from Tagesschau. We want to give the viewers news that plays a role in their lives. We call that ‘news to use.’ Each item has something special about it.” The two chief editors agree that a classic news item now initially reaches users via the Internet or the radio. “We’re here to provide more in-depth coverage. TV news should provide added value, selecting stories from the flood of information and putting them in context.” To gain orientation, the audience needs faces that present the news, says Wulf. Pointing to Peter Kloeppel, he says: “And he is a brand that viewers have known for 20 years. When your brand is that good, you have to cultivate it.” As chief editors, Peter Kloeppel and Michael Wulf (above, also Managing Director infoNetwork) are responsible for the content of RTL Aktuell and take the most important decisions. Kloeppel also anchors the evening show alongside Ulrike von der Groeben. The editorial team in the newsroom researches the news content. Their immediate boss is Editorial Director Gerhard Kohlenbach. Reporters and camera crews go out on location together. Foreign correspondents report from around the world. And the connecting link between the editorial team and the technicians is the Managing Editor, who is responsible for the coordination of all processes. Of course, the show has also evolved over the past 20 years, says Kloeppel, “It has grown up. In some ways more political, but definitely more relevant, because we ask ourselves with each topic: Is this just an isolated incident or is it an issue that affects a lot of people?” The staff are also more experienced, he says; their journalistic expertise has grown. 6:04 p.m. Another 41 minutes before the program goes on air. On the screen, the news A 6:40 p.m. The jacket’s been straightened. The mike is working. The spotlights are on. Kloeppel is already in the studio preparing to present the show 12 Television 13 Television at a glance Multifaceted, international, popular 6:50 p.m. 20 minutes of primetime news is hard work. Many reports aren’t completed until after the program has already begun. So when the red “on air” light goes on, it doesn’t mean that everything is done and dusted. The show is deliberately kept flexible to keep things as up-to-date as possible 6:45 p.m. In reality the set is green, but viewers at home see a clear blue backdrop behind Peter Kloeppel and Ulrike von der Groeben as they present the nightly news “We try to be close to the people” Michael Wulf, Managing Director of infoNetwork Presenter Ulrike von der Groeben Born in 1957 in Mönchengladbach, the TV presenter studied German language and literature, and in 1985/86 worked as an intern at what would become RTL Radio Luxembourg. She then became a member of the editorial team on the RTL-plus breakfast magazine show Guten Morgen Deutschland (Good Morning Germany) and the presenter of Sportshop. Since January 1989 she has been an editor and presenter on RTL Aktuell. items Gerhard Kohlenbach has approved are marked in green. There aren’t many yet – only the start of the program is sorted. Kloeppel has taken off his jacket and is polishing his opening lines. 6:13 p.m. Not a sound is heard except the printer and the clatter of fingers on keyboards. 6:18 p.m. “Baumgartner gets 1:42,” says Kohlenbach. “He’s starting at around 7:15 p.m., we won’t be able to show that live, but at least the balloon should already be pretty full in the picture.” Kloeppel and von der Groeben have to get going soon. They are not allowed to use the elevator in case it gets stuck. At the entrance to the ground floor studio the red “on air” lamp is illuminated. The presenter of the previous program has just signed off. Changes are quickly made to the set. The texts that were being edited until just moments ago appear on the teleprompter. Dozens of spotlights shine from the ceiling and camera cranes are adjusted. The room is bright green, but the TV viewers at home will only see the usual studio background. Kloeppel and von der Groeben are hooked up with microphones. 6:42 p.m. Groeben plucks a 7:30 p.m. How was the show? Debriefing at the late conference. Kloeppel and editorial colleagues take a critical look at the recording Shows, series, news, movies, sports, talk shows, magazines. RTL Group’s broadcasters are as multifaceted as they are successful – and they are established in ten countries, with offerings for all audiences and age groups, and a fast-growing presence on all digital platforms Luxembourg-based RTL Group (“RTL” stands for Radio Television Luxembourg) is Europe’s leading entertainment group with shares in 53 television channels and 28 radio stations in ten countries, as well as in production companies around the world. Its TV operations include RTL Television in Germany, M6 in France and the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia and Hungary, as well as Antena 3 in Spain. The company also operates India’s Big RTL Thrill channel as a joint venture and holds shares in the National Media Group in Russia. RTL Group was formed in 2000 from the merger of CLT-UFA with the British company Pearson TV. The following year, Bertelsmann acquired a majority stake in RTL Group through a stock swap. RTL Group’s production arm, FremantleMedia, is one of the largest international production companies outside the U.S. Each year, FremantleMedia produces more than 9,100 hours of programming for 62 countries (more on page 14 ff). More:→ www.rtl-group.com www.mediengruppe-rtl.de www.rtl-journalistenschule.de A School for TV journalists bit of lint off her sleeve. Her face can be seen on one of the monitors. A dozen colleagues sit next door in the control room. In the next few minutes the most common phrase heard here will be: “Why isn’t the item here yet?” The anchors are connected to the director by a small ear microphone. They both laugh. “Ten seconds,” shouts the floor manager. “Five.” The next morning it starts all over again. A new day with fresh news. Five days later, Felix Baumgartner is back on the news agenda. This time he will succeed in his record jump. 2 The RTL Journalistenschule in Cologne has been training young TV talent since 2001. The 24-month training course to become a television editor is carried out in various stages at the School and at internships in editorial offices within and outside RTL Group. 5,998... ... million euros in revenue were generated by RTL Group in 2012. Operating EBIT (earnings before interest and taxes) amounted to 1,065 million euros in the same period. 11,931 ... ... people around the world work for RTL Group. Most popular channel In 2012, RTL Television was the most popular channel among Germany’s younger viewers for the 20th consecutive year. With an audience share of 15.9 percent among 14- to 49-year-olds, the channel was a significant 4.6 percentage points ahead of the No. 2. In France, M6 was the only major channel to increase its ratings last year. M6 is now No.3 among the total audience. RTL Nederland’s four free-toair channels achieved a primetime market share of 32.3 percent among viewers aged 20 to 49. RTL-TVI also remains by far the most popular channel in Belgium. 14 Shows 15 Shows Where Dreams Come True Formats such as Idols or The Farmer Wants a Wife are successful around the world. Depending on the country, the names of these shows may be American Idol, Deutschland sucht den Superstar or L’amour est dans le pré, and they offer great entertainment and a lot of happy winners! Text: Tanja Breukelchen F Kelly Clarkson or a long time, Kelly Clarkson was the girl next door with big dreams. Born in a small town in Texas, Kelly watched as her mother struggled to support her and her two older siblings – after her parents divorced when she was six. She very quickly understood the value of money – and the importance of a strong work ethic: “I’ve worked hard since I was seven years old: babysitting, tutoring, waitressing, baking pizza,” she said in an interview years later. Her talent for music was discovered at school, when teachers reportedly overheard her singing in the corridors and encouraged her to join the choir. Kelly did, and her goal in life suddenly became clear: she wanted to become a singer! She was determined to make her dreams a reality, so after graduating from high school, Kelly produced a demo CD at her own expense and moved to Los Angeles with a friend. Her first A steps as a performer seemed auspicious. Kelly received 16 Shows 17 The six finalists of the first season (second from right: Kelly Clarkson) of the hit show American Idol, which remains at the top in of the ratings charts The Great Success Kelly Clarkson started her “Stronger” world tour in 2012. And at the end of the year, her first best-of album was released, Greatest Hits – Chapter One The Company FremantleMedia is one of the world’s largest and most successful creators, producers and distributors of television entertainment brands, from prime time entertainment shows, to drama, reality formats, game shows, TV movies, soap operas, and kids and family entertainment programming. The company, a subsidiary of RTL Group, has three main business areas – production, licensing and distribution – and is also capitalizing on the digital world in many ways: by extending successful program brands online, by applying its distribution skills in a multi-platform world, and by creating original content initiatives for new platforms like YouTube and others. “I think I’ll always be entwined with Idol because it was such a great experience for me. I’m proud of everything I achieved with Idol, and away from Idol also” A friend convinced her to participate in the first season of American Idol. Good advice, because Kelly Clarkson (center, with Clay Aiken, left, and Ruben Studdard, right, the finalists of the second season) won the final round. It was the start of her international career Kelly Clarkson, winner of the first season of American Idol small television roles and worked with the songwriter Gerry Goffin for a short time. But then Goffin fell ill, and soon Kelly suffered yet another blow of fate. “It was the worst thing that had ever happened to me. On the day we had moved all the stuff we had bought with our hard-earned money into our apartment, we went out for a quick bite to eat. When we came back, everything was ablaze.” A neighbor had left a cigarette burning. For Kelly, then 19, it was seemingly the end of her career dreams – at least for the time being. Frustrated, she went back to Texas and worked various jobs, including as a waitress, a promoter and an usher, for several months. Then came the turning point. In 2002, Kelly’s friend Jessica Hugghins convinced her to audition for the TV show American Idol, which was being produced for the first time. The format, from Fremantle Media and 19 Entertainment, had been a huge hit in the UK, on the country’s leading commercial broadcaster ITV during the winter months 2001 and 2002. From 10,000 candidates, Kelly emerged as one of the top 30 and received a record number of votes in the second round. On September 4th, she won the final round, becoming the first ever American Idol – and signed a contract with RCA Records. For Kelly Clarkson, winning American Idol meant the beginning of a spectacular international career. Her first hit single, Before Your Love / A Moment Like This, rose from number 52 to number one on the Billboard Hot 100 in October 2002, breaking the record for the biggest leap to number one in a single week in the chart’s history. It went on to become the bestselling single of the year in the United States and her first album, Thankful, released in April 2003, went double platinum after selling more than 2.1 million copies in the United States. The album has since sold over 4.5 million copies worldwide. Great Britain, Australia, Canada... Kelly landed on the charts in more and more countries around the world, rising to superstardom. She had one hit after another from her albums Breakaway (2004), My December (2007), All I Ever Wanted (2009) and Stronger (2011), winning a string of awards along the way, including two Grammys, three MTV Video Music Awards, twelve Billboard Music Awards, and four American Music A American Idol started in 2002 and is, with an average 17.4 million viewers, currently the most successful entertainment series in the United States. In addition to Kelly Clarkson, many other participants have had national and international breakthroughs on this talent show, including Carrie Underwood, Chris Daughtry, Jennifer Hudson, Jordin Sparks, Clay Aiken and Adam Lambert. Over the past ten years, more than 60 singles from American Idol participants have reached top spots on the Billboard Hot 100 in the U.S. Stars such as Paula Abdul, Jennifer Lopez, Steven Tyler and Mariah Carey have served on the judges’ panel. 18 Shows A Decade of Success The talent show Deutschland sucht den Superstar (“DSDS”) started in Germany the same year as American Idol launched in the U.S. Dieter Bohlen has been on the judges’ panel since the very beginning, first with Shona Fraser, Thomas Bug and Thomas M. Stein, and in the current tenth season with Bill and Tom Kaulitz from Tokio Hotel and Mateo from Culcha Candela. DSDS scored phenomenal ratings – for example, 7 million watched the big DSDS finale, in which Tobias Regner was crowned the Superstar of 2006. The winners to date, by season, were: Alexander Klaws, Elli Erl, Tobias Regner, Mark Medlock, Thomas Godoj, Daniel Schuhmacher, Mehrzad Marashi, Pietro Lombardi and Luca Hänni. 19 “The fact that I have achieved so incredibly much is like a Cinderella story to me!” Kelly Clarkson, the most successful American Idol winner Awards, along with countless nominations. In the ten years since she was crowned America’s first Idol, Kelly has sold more than 25 million albums and 36 million singles worldwide according to Billboard, solidifying her place as one of the best-selling solo performers of the decade. In 2012 she released her first greatest hits album Greatest Hits – Chapter One, dedicating the title track Catch My Breath to the family, friends and fans who have supported her through her journey from Idol winner to international superstar. Kelly’s turning point in life, American Idol, is still the most popular entertainment series in the United States and has now been shown in over 190 countries, airing throughout all major territories around the world. During its eleventh season, in 2012, it reached an average of 17.4 million viewers and its twelfth series launched with an exciting judging panel featuring Randy Jackson, Mariah Carey, Nicky Minaj and Keith Urban. After all these years, the show that launched her spectacular career is never far from Kelly’s mind. Speaking about American Idol in an interview years after her win, she said: “I think I’ll always be entwined with Idol because it was such a great experience for me. I’m proud of everything I achieved with Idol, and away from Idol also.” It’s clear that through hard work, determination, and incredible talent, Kelly has made her dreams a reality. For Kelly Clarkson, the working-class girl from Texas, participating in the show was a rags-to-riches story. “I used to have nothing. I was really poor,” Clarkson says today. “The fact that I have achieved so incredibly much is like a Cinderella story to me!” 2 L’amour est dans le pré: In the French incarnation of the TV franchise The Farmer Wants a Wife, dairy farmer Thierry Olive ends up marrying his beloved Annie. Presenter Karine Le Marchand (above) couldn’t attend the wedding, as she was busy filming new episodes of the enormously popular show L’amour est dans le pré In 2012, the French version of The Farmer Wants A Wife topped its time slot every single week, except for the one night it aired against the Olympics. It was the highest rated entertainment show on M6 for the year, and one of its stars has now found happiness like many others before him on the show Text: Andrea Freund I Four of the winners: Alexander Klaws, Mark Medlock, Thomas Godoj and Luca Hänni (from top to bottom) Kelly Clarkson sings the U.S. national anthem at the Super Bowl in Indianapolis t was one of the most important weddings of the year 2012 in France, and Karine Le Marchand – of all people – was unable to attend. Le Marchand, host of the French version of The Farmer Wants a Wife, had hoped to be a witness to the marriage of the good-natured dairy farmer Thierry Olive, and Annie, a dental assistant from a Paris suburb, at a September wedding in Olive’s hometown in Normandy, after the two had met on the show’s seventh hit season. It must have been the first time that the mayor of the small village of Ver, which has just 350 inhabitants, had to set up barriers in the street in order to keep control over the crowd of about 8,000 curious onlookers and a significant media presence, who came to celebrate the couple’s union. And Karine Le Marchand? She had a very convincing reason for only being able to congratulate them from afar: she was filming – preparing portraits of new farmers for the next season, so that more of them could find their own happiness over the next summer. The Farmer Wants a Wife – or, as it is called rather more romantically in France, L’amour est dans le pré (loosely translated as “Love Is in the Field”) – continues to score high ratings in the country. About six million television viewers watched the two-part retrospective of the sixth season, which was shown prior to the beginning of the seventh edition. With every new season, more French viewers tuned in. During the first season in 2006, M6 rejoiced over its record 3.5 million viewers; by late summer 2012, the episode shown two days after Thierry and Annie’s wedding saw the number climb past 7 million. An average 6.4 million viewers followed the amorous developments that took place among the three women and eleven men from various rural areas and their suitors. L’amour est dans le pré repeatedly outperformed the public broadcaster France 2. Even the largest private French broadcaster, TF1, decided to change around its Monday evening programming – all in vain. Only the coverage of the London Olympics A High Ratings L’amour est dans le pré (“Love Is in the Field”) is having a successful run on M6, RTL Group’s flagship channel in France. More on this topic: www.m6.fr/emission-l_ amour_est_dans_le_pre 20 Shows 21 Shows at a glance International Shows: Looking for Winners Happy loving couples: They send the show’s ratings sky-high. Like married couple Thierry and Annie (left), farmer Sylvain and Valerie (center) are also love-struck. Yoann and Emanuelle (right) have even had a baby since they found each other. The rural dating show is so popular in France that about six million viewers watched the two-part retrospective of the sixth season alone Love in the German Countryside: The Hit Show Bauer sucht Frau From an industrious Alpine pasture farmer to a taciturn Westphalian grower to an enterprising agriculturalist from the flatlands of Frisia – ever since the first season of Bauer sucht Frau ran in October of 2005, host Inka Bause has been bringing in all types in order to help farmers of both sexes find true love on TV. Fluttering hearts and happy endings – with up to 8 million viewers watching on TV. was more popular than the farmers’ primetime courting activities. Perhaps, in these economically difficult times, post-modern France is fascinated by a longing for a simpler life – and certainly by the search for happiness with that special someone. The magazine L’Express even wondered whether urbanites were in a sense “reconciling” with rural life, which is often much more difficult but is also more grounded. Three-quarters of France’s population now lives in cities, while half of the country’s geographical area is still devoted to the production of grain and milk products, wine and champagne. The show touches people’s hearts, says Nicolas de Tavernost, CEO and Chairman of the Management Board of Groupe M6, plus it presents agriculture “in a positive light.” Beautiful images from all over the country are depicted in the show, from Brittany in western France and Lorraine in the East of France, to Picardy in the north to the Pyrénées-Atlantique region near the southernmost stretch of the French Atlantic coast. So far, most of the candidates have come from there and from the Gironde region (which includes the city of Bordeaux) just a little further to the north. The previous season also featured an olive-oil producer from the island of Corsica. All in all, 71 poultry, cattle, goat and horse breeders, grape-growers, and dairy, grain and vegetable famers aged 24 to 60 have searched for love on L’amour est dans le pré to date. Each of them received letters from other singles before meeting with eight of the potential candidates at a speed-dating session in Paris and then inviting two of them to visit their rural home. So far 13 weddings, 37 relationships and 26 children have resulted from this highly popular television program. While not all the relationships formed onscreen have lasted, some participants have found true love through the show, which gives them the opportunity to get to know people they might never have otherwise met. This is certainly the case for Thierry, who comes from the backwaters of northern France and laughingly calls himself a “country bumpkin.” He was filmed as he happily took the subway for the very first time in Paris, and his remarks have a cult following. He was the viewers’ favorite even prior to his wedding to Annie. Similar love stories abound worldwide and The Farmer Wants A Wife has gripped the imagination of people all around the globe. In the Netherlands, Boer Zoekt Vrouw (as the show is known locally) is watched by an incredible 35 percent of the population and has been the country’s highest rated entertainment program since 1995. Including France, 29 countries have their own local versions of the format and over 100 series have aired internationally to date. In 2012 alone, farmers in Canada, Hungary and Latvia began their own search for love as new local versions of the show launched in their countries. And Thierry and Annie? After a romantic honeymoon in Senegal, they returned to France and spent their first Christmas together as a married couple. Annie is now living on Thierry’s farm, and they hope to start a family very soon. L’Amour est dans le pre enters its eighth season in France, with new farmers hoping to find romance, love and a partner to share their lives. As Thierry says, of his marriage to Annie: “It is the best gift I’ve ever received”. 2 In many countries, these shows and series offer the best entertainment around. They represent genres that are successful around the world but are also adapted to each country. What they have in common are their high viewer ratings and happy winners FremantleMedia As an innovative market pioneer, FremantleMedia, a subsidiary of RTL Group, develops, produces and markets outstanding entertainment brands and is among the most successful companies in the sector. It has subsidiaries in 24 countries and rights worldwide, creating more than 9,100 hours of programming each year, rolling out more than 60 formats and almost 400 individual titles, such as Idols, Got Talent, The X Factor, Gute Zeiten, schlechte Zeiten and many more. More:→ www.fremantlemedia.com Travelling formats The original formats for Idols and The Farmer Wants a Wife come from Great Britain. The Farmer Wants a Wife, for instance, premiered in England in 2001, and has aired in 29 countries to date with titles like Boer zoekt vrouw (the Netherlands), L’amour est dans le pré (France) or Ljubav na selu (Croatia). The same is true of DSDS. That show’s forerunner, the British talent show Pop Idol, a 2001 brainchild of Simon Fuller, was licensed worldwide and thus aired local versions in 46 territories so far. American Idol alone has been seen in over 190 countries. Serial success With nearly four million viewers a day, Gute Zeiten, schlechte Zeiten (Good Times, Bad Times), produced by FremantleMedia’s subsidiary Grundy UFA, is Germany’s first and most popular daily soap. Similarly successful FremantleMedia-produced series include Forbidden Love, broadcast in Australia, Germany, Sweden and Greece and elsewhere, and Neighbours – a viewer favorite in Australia since 1986 and now an audience magnet in England, New Zealand and many other countries. Gute Zeiten, schlechte Zeiten (“Good Times, Bad Times”) has been running on RTL since 1992 and is, with almost four million viewers a day, Germany’s first and most successful daily soap opera. The 5,000th episode was broadcast in 2012 RTL Group’s subsidiary FremantleMedia produces numerous shows, drama series, reality formats and soap operas – all over the world! 22 Books 23 Books Virtuosos of the Word How a Random House bestseller is born: The Power of Habit by Charles Duhigg. The path from initial idea to post-publication Text: Katja Guttmann. Photos: Jürgen Frank O ut on Broadway police sirens wail, traffic roars, an endless stream of people rush about. But once you walk through the revolving glass doors, into the tranquil atmosphere of Random House’s world headquarters, all of that falls away. In the high-ceilinged lobby, it is impossible not to notice what matters here: books. Hundreds of paperbacks and hardcovers – winners of Nobel and Pulitzer prizes, brand-new publications and first-edition classics – fill the shelves, all the way up to the ceiling. And every day, the many occupants of this building work hard to ensure that future Random House titles will one day take up places of honor on these same shelves. The eleventh-floor office of Andy Ward, an Executive Editor A in the Random House Publishing Group division, is small, 24 Books 25 er Ward would like to take a look at Duhigg’s proposal. Although Ward was on vacation at his home just north of New York City, on the Hudson River, he asked to see it immediately. Standing in his kitchen, as children romped around him, Ward began reading the proposal, and knew right away that it was good. Really good. Duhigg, he thought, had a talent for narrative storytelling and an ability to make complex ideas relatable. Above and beyond this, many potential readers would undoubtedly love to know how to get rid of bad habits in their work and personal lives. Ward jumped in. “Within a day I had the okay and I got on the phone with Scott and pre-empted it, that day, for Random House. It all happened so quickly,” says Ward. If several publishing houses are interested in a future manuscript, it is usually put forward for auction and sold to the highest bidder; “preempting” a proposal avoids all that, taking it off the market at a mutually agreed-upon price. By doing so, Random House was able to avoid a bidding war. Author Charles Duhigg and his editor Andy Ward became friends while working on The Power of Habit Random House Inc., New York The publishing group traces its roots to the C. Bertelsmann publishing house, founded in 1835 in Gütersloh, Germany. Currently, Random House Inc. includes 200 independent publishing houses in 15 countries. In the U.S., Bertelsmann fully acquired paperback publisher Bantam Books in 1980, followed by its purchase of the Doubleday publishing house in 1986, after which the U.S publishing company was known as Bantam Doubleday Dell. In 1998 Bertelsmann acquired the prestigious publisher Random House, and combined it with Bantam Doubleday Dell. And thus the new international publishing group Random House began. but a floor-to-ceiling window keeps it from feeling cramped. On three shiny gray shelves along one wall sit stacks of meticulously sorted manuscripts – the books on which he is currently working. Each one is hand-labeled with the author’s name. “I have a huge amount of respect for the writing process, which is incredibly hard,” says Ward with a serious glance over his frameless glasses. He speaks thoughtfully, with concentration, occasionally displaying an impish smile. But behind his smile is an unwavering belief in his authors. He is known for his keen judgment and inexhaustible energy when working on their manuscripts, and for the obsessive attention to detail with which he drives projects forward. Inside the finished books he has edited, which are lined up next to his desktop computer, are glowing notes of gratitude from their authors: Andy Ward is a virtuoso of words. Charles Duhigg didn’t yet know any of this about Ward when they spoke for the first time, in the fall of 2009. Duhigg, an award-winning investigative business journalist for the New York Times, wanted to write his first book. The idea he was proposing, The Power of Habit, was to be an exploration of all the behaviors, good and bad, that we perform, every day, without thinking: Why do some people succeed with exercise routines, and thus manage to keep the weight off, while others don’t? Why are some companies so good at institutionalizing certain behaviors, while others never repeat the same process twice? Essentially, what are habits, and how do they work? Duhigg wrote an eighty-page proposal, and, together with his agent, went looking for a publisher. Ward was spending the day with his two daughters, when the respected literary agent Scott Moyers reached him. Moyers asked wheth- “At the time, I really had no idea how important it was to choose the right editor. Andy just sounded like a nice guy,” says Duhigg about his first phone call with Ward, which lasted just fifteen minutes. When making his decision he relied on Moyers, his agent, who described Random House to him as a great and respected home for authors: At Random House, he said, there are decision-makers with the financial resources to publish books properly and to find them the right audience; they are professionals with real skills and experience – and, not to be overlooked, great enthusiasm. “I had no clue what that meant,” says Duhigg. “Today I know.” Charles Duhigg has bright blue eyes and a thick black beard. He likes to laugh, and laughs often, especially at his editor‘s dry sense of humor. When the two of them sit at a conference room table and chat about Salman Rushdie’s new memoir, Jennifer Egan’s Twitter novella, or their families’ Christmas vacation plans, it’s as if nothing else exists around them. It’s clear at first glance that author and editor not only like one another, but have become close friends A Charles Duhigg, Author, Brooklyn, New York Charles Duhigg is originally from New Mexico, studied at Harvard and Yale, and has worked as an investigative journalist for the New York Times since 2006. In 2009 he was a finalist for the Pulitzer Prize. The bestseller The Power of Habit is his first book. He is married, has two children and lives in Brooklyn (New York). “Back then I had no idea how important it was to choose the right editor” Charles Duhigg, Author The bestselling author and journalist Charles Duhigg in his office at the New York Times. He took a leave from his work to write The Power of Habit 26 Books 27 Andy Ward, Executive Editor at Random House, New York Andy Ward began his career as an editor at Esquire and GQ magazines, rising to Executive Editor of the latter. He has been an editor at Random House since September 2009. He is married, has two children and lives in Dobbs Ferry (New York). Writing is not always a solitary activity – on the contrary, whenever Duhigg wrote a chapter at a sidewalk cafe (far left), it was never long until his next conversation with his editor, Ward, during which they would reformulate passages or discuss the design for the book cover (above) “Andy forces you to connect all your ideas” Charles Duhigg, Author as well. “Charlie has a huge brain,” says Ward. “He is seemingly capable of everything.” “Andy is an incredible editor, but he’s also one of the most decent human beings I’ve ever met,” says Duhigg. (“This book is as much his as mine,” Duhigg wrote in the book’s acknowledgements.) It took two and half years, from that first phone call to the book’s publication in February 2012, for The Power of Habit to become a bestseller. (In the world of book publishing, this is considered fairly quick, for this type of editingand-reporting-intensive project.) To speed things along, Duhigg took a year of leave from the Times, rented desk space near his Brooklyn apartment, and spent every day researching, outlining, and writing. The hardest part, he says, was finding his rhythm in the beginning. Holding the reader’s attention for 300 pages, he quickly learned, is very different from writing a relatively short newspaper or magazine article. “I think we worked on the first chapter for three months,” says Duhigg. “I had flown all over the country and conducted dozens of interviews, and Andy had edited it four or five times over. And in the end, we killed it completely.” Duhigg did, at the time, recognize the reasons the chapter had to be abandoned – the text was too personal, the subject not quite the right way to open the book. He is grateful to Ward for letting him recognize this and decide for himself to remove it, for that’s how he learned to build effective chapters that work. “Andy doesn’t lead through edict,” says Duhigg, describing the collaboration. “That’s not his style. He starts a conversation – and from this conversation come new ideas and assumptions.” “Editing is not a straightforward process. It’s not just one round of notes and we’re done,” says Ward, who prefers to work the traditional way, with pencil and paper. Duhigg would usually get the pages back covered with handwritten comments, edits, and suggestions. “Andy forces you to connect all your ideas. He forces you to use language that is as clear and as crisp as possible, and he forces you to find the Manuscripts, meticulously sorted by author’s name, sit on Andy Ward’s shelf waiting to be edited best anecdotes and explanations,” says Duhigg. Even when Duhigg himself, on the verge of exhaustion, would have been content with 85 percent perfection, that was not good enough for his editor. “Being friends helps a great deal,” says Ward. Neither of them knows anymore how many pages, in the end, were revised multiple times and then thrown away. “It was a lot,” says Ward. Duhigg remembers two big black garbage bags sitting in his home office, filled with discarded pages from various drafts. Today, when Duhigg leafs through the pile of rejected drafts for the cover image of The Power of Habit, he has to laugh. One design, with circles and squares, looked to him like an intelligence test for preschoolers. Another, with a circle of arrows, like a company report from the 1980s. He is glad that Random House came up with an extremely clever visual, a striking red-and-yellow design in which a human figure is breaking out from inside a stylized hamster wheel and making playful use of the wheel. For him, it is simply the perfect metaphor for the book. Duhigg got the idea for this design during a trip to California, and the graphic artist Anton Ioukhnovets implemented it to perfection. “I have to think about a present for him,” says A Duhigg. Andy Ward in his Random House building office in New York, where he spends many hours a day editing manuscripts, several of which have become bestsellers 28 Books A perfect team, always in touch: Editor Andy Ward and author Charles Duhigg made The Power of Habit into a bestseller, with 300,000 copies sold in the U.S. alone 29 “Since editing this book, I think more about my own habits” Andy Ward, Editor at Random House While Duhigg and Ward were still polishing the final version of The Power of Habit, the Random House marketing and publicity juggernaut was gathering steam. Months before the book was even finished, Sally Marvin and Maria Braeckel were busy stoking the curiosity of traditional media, reaching out to television, radio, newspapers, and magazines. “We were already very excited about the manuscript, we just had to find the right pitch for all the different readerships: business audience, parents, consumers focused on lifestyle choices and nutrition,” says Braeckel. Erika Greber and her marketing colleagues produced interactive content like animated videos and banner ads that they posted on YouTube and various social media sites. Duhigg launched his own website and a blog, and took a more active role in his Facebook page and Twitter profile. And the result of all this: “We were able to not only document the word of mouth that was happening online, but also gather valuable insights about who our readers are. It’s a good example of how quickly book marketing continues to evolve, and how we as a company are using these advantages more and more intensively,” says Greber. There were moments of nervousness, however. “Shortly before our publication date on February 28, 2012, I became petrified that I would let down Andy, and I would let down Random House, which had invested so much in me and this book,” says Duhigg. But he didn’t have to hold his breath for long. In its influential Sunday Magazine, the New York Times featured an advance excerpt from the book as its cover story: it was culled from the book’s most provocative section, in which Duhigg describes how the Target national retail chain is studying consumer habits in order to gain business advantages from its female customers when they are pregnant. Right after the excerpt was published, Random House received dozens of media inquiries, and the book took off. Duhigg spent much of the next two months giving interviews, enabling his book to debut at #4 on the bestseller list. In the U.S. alone, The Power of Habit so far has sold 300,000 copies in hardcover and e-book editions, and it remained on the New York Times national lists for thirty-one weeks. The success story continues internationally, as the rights have now been sold in 30 countries. One of his book’s happiest side effects is that he himself profited so personally from his research. Much to his wife’s delight, he lost several pounds because he consciously shed his bad habit of eating a chocolate cookie in the cafeteria every afternoon. For his break, he instead now chooses to chat a little with his colleagues before going back to work. Ward also admits to being more conscious of forming better habits since editing the book. In the evening, for example, he lays out his running clothes so they are the first thing he sees the next morning. “The tip from the book really works!” Since then, he has been managing to go for a run three times a week before catching the train to Grand Central Station, he says. And because Duhigg would also like to make a good habit of his successful collaboration with his editor, he has already sold his next book idea to Random House; its working title is The Science of Productivity. As of yet, not a single word has been committed to paper. But Andy Ward and Charles Duhigg have already been talking up a storm about the project in their favorite Broadway coffee shop. 2 Books at a glance The world’s largest trade book publisher Celebrated authors, admired publishers, all genres, bestsellers, major literary prizes and a huge footprint in the digital as well physical books market. The Random House publishing group, with its world headquarters in New York, is a book publisher of many superlatives Among its authors are John Grisham, Stephen King, E L James, and James Patterson, as well as Stefan Heym, Ernst Jandl, Richard David Precht, and Walter Kempowski; they also include Barack Obama, Bill Clinton, Dan Brown, Dean Koontz and Nigella Lawson, as well as Charlotte Link, Ian McEwan, Julia Navarro, Orhan Pamuk, Christopher Paolini, and Elizabeth George. With 10,000 new books published annually in 15 countries, in both print and electronic form as well as audiobooks, and with 400 million books sold per year, Random House is the world’s largest trade publishing group. From Blanvalet to Manesse, from Goldmann to Random House, from Heyne to DVA – Random House’s German publishing group encompasses 45 imprints. Every month, they publish some 200 new books, covering a broad spectrum with their titles: everything from popular and intellectual entertainment to contemporary and classic literary works, children’s and young adult books, self-help and religious books, and a wide range of non-fiction. Verlagsgruppe Random House, headquartered in Munich, is a part of Random House, the world’s leading trade publishing group. More:→ www.randomhouse.com www.randomhouse.biz www.randomhouse.de 252 titles ... ... from the Random House publishing group were on the New York Times bestseller lists in 2012 alone. 200 independent publishing houses ... ... comprise Random House in 15 countries, including distinguished imprints like Doubleday and Alfred A. Knopf (USA), Ebury and Transworld (Great Britain), Plaza & Janés (Spain), Sudamericana (Argentina) and Goldmann (Germany). E-books More than 47,000 e-books in English, German and Spanish are now available as Random House e-books. More than 50 ... Famous authors: Toni Morrison, José Saramago, Orhan Pamuk and Mario Vargas Llosa (from top to bottom) have all been awarded the Nobel Prize for Literature ... authors published by Random House have won the Nobel Prize, including Nobel Prize for Literature winners Doris Lessing, Mario Vargas Llosa, Orhan Pamuk and José Saramago. 30 International 31 International China The World’s Markets in Their Sights Bertelsmann’s Corporate Centers in Asia and South America have a direct view of the world’s largest emerging markets. The aim is to close gaps, recognize new trends and take advantage of opportunities Interview: Steffi Kammerer. Photos: Arne Weychardt Brazil A Gütersloh nnabelle Yu Long, Thomas Mackenbrock and Pankaj Makkar are young, have impressive careers behind them, and big adventures ahead of them. As early as 2007, Long went to Beijing for Bertelsmann in order to run the China Corporate Center; in 2012, Thomas Mackenbrock and Pankaj Makkar also set out into the world – as heads of the Corporate Centers in Brazil and India. India EXPERIENCE: The three of you represent Bertelsmann in the world’s growth markets. How did you, as young managers, get into these exciting positions? Ms. Long and Mr. Makkar, you graduated from the Bertelsmann Entrepreneurs Program; maybe we can start there? PANKAJ MAKKAR: When I was working on my master’s at Harvard, I looked at companies that were involved in the growth markets. I noticed that many Western employers did not pay much at- A 32 International 33 though we already employed over 1,000 people in China, the emphasis was on the book market, and the activities were not as focused as they are today. I was with BDMI (the “Bertelsmann Digital Media Investments” investment fund) in New York and so was intensively involved with digital media. A project that we did together with McKinsey took me back to China, at first just for short periods of time. Then, in 2007 I took over the Corporate Center in Beijing, which we had opened the year before. Mr. Mackenbrock, what took you from Gütersloh to São Paulo? On their way to the top Corporate Center Chief Executives (from left) Thomas Mackenbrock (Brazil), Pankaj Makkar (India) and Annabelle Yu Long (China) “I am impressed by how much freedom the employees are granted in their work” Annabelle Yu Long, China Corporate Center Corporate Centers In its bid to enter growth markets around the world, Bertelsmann is counting on people who recognize trends, supervise projects and pursue entrepreneurial goals. So in addition to its headquarters in Gütersloh and its branches in Berlin and Brussels, the company has Corporate Centers in New York, Beijing, New Delhi and São Paulo (the latter two newly opened). tention to the specific local context; they simply wanted to transfer what they knew from their own countries. But at Bertelsmann I noticed right away that our entrepreneurial approaches were very similar. Plus, the Bertelsmann Entrepreneurs Program works in both directions. On the one hand, you get insights into Bertelsmann’s experience and expertise in all the different regions of the world. On the other hand, the company is also very open to seeing what ideas the individual has, what local knowledge each person brings with him or her. ANNABELLE YU LONG: I agree with that, but I did not have as clear an idea as Pankaj when I start- ed the program. I had worked for a state-run TV station in China for many years, and when I was studying at Stanford I thought I would become a banker or consultant with my MBA, as most of my fellow students did. And then I came across Bertelsmann. During our first conversations, I was already impressed by how much freedom the employees are granted in their work. This is my eighth year with the company, and the opportunities, the responsibility you are given early on, the trust that is placed in you as a young person, are truly wonderful. When I started in New York in 2005, we didn’t yet have a clear strategy for the new growth markets. Even THOMAS MACKENBROCK: I came to Bertelsmann in 2006 and worked on corporate development in Gütersloh. Prior to that I worked with McKinsey, in the telecommunications, media and high tech area. In early 2011, I was in Brazil for a project, and I fell in love with the country right away. That fit well, because we had already set up Corporate Centers in China and India, yet there was still one gap: Latin America. At first glance, we thought that there were several barriers to entry: the dominance of local media groups and the limitations for foreign owners did not seem very promising. But then when we saw how successfully Annabelle was working in China, how she went in new directions by partnering with other investors and addressing the digital media space, we began to rethink our approach to Latin America as well. And it became clear that with a flexible investment approach and a focus on new growth areas like education and digital media, a wide range of attractive opportunities awaited us. ANNABELLE YU LONG: When I arrived in Beijing at the time, the “big potential” was no more than a working hypothesis for us. With the knowledge I had acquired at BDMI in New York, I was of course very focused on digital media and was looking for opportunities in this area. And so I started talking to more and more colleagues, and the idea of starting a fund grew. That’s how BAI, Bertelsmann Asia Investments, was born in 2008. Why has digital media changed the situation so much? Can you explain that more concretely? THOMAS MACKENBROCK: Each geography has its own set of regulations. But generally speaking, digital media is often less restricted for foreign ownership than traditional media, especially in markets like China or Brazil. We can invest relatively freely in Internet assets. And in fact, sometimes we can’t even invest as much as we want to… ANNABELLE YU LONG: … because successful companies grow so quickly that their owners or founders just aren’t interested in selling. THOMAS MACKENBROCK: So you have to be more creative with regard to minority investments or possible partnerships. And when you look at what Annabelle and Pankaj have achieved, it becomes clear that you need a number of different instruments. We had to find new ways for Bertelsmann to be involved in these markets. PANKAJ MAKKAR: In India the situation is a little different. It is certainly possible for foreign companies to own businesses there; Sony and Newscorp have shown us that. But the fact is that there are a lot of companies active in traditional media. We are getting into the market with manageable building-blocks and can continue to expand from here on out. THOMAS MACKENBROCK: That helps limit the risk. Can you give some examples? THOMAS MACKENBROCK: In all three countries, we have a set of different approaches. One possibility is to invest in a local fund to acquire expertise, a network and co-investment possibilities. There is limited risk, and it’s a great way to get established, to build a foundation. Then we also look for direct investments. This can result in very interesting portfolios. Let’s just look at what Annabelle has built up over the last years. The spectrum of companies in her portfolio ranges from small startups to Chinese firms that are listed on the New York Stock Exchange. PANKAJ MAKKAR: Above all, we need to be able to assess risks and try to minimize them as A “Most Chinese people have heard of Bertelsmann” Annabelle Yu Long has run Bertelsmann’s Corporate Center in Beijing since September of 2009 Corporate Center Beijing, China With 1.34 billion people, China is the most populous country on Earth. Already in 1992, Bertelsmann set up its first subsidiaries there. By now, all the Group’s units are active there: FremantleMedia (RTL Group) brought TV shows like China’s Got Talent, X Factor, Hole in the Wall or Take Me Out to the Chinese market. Random House sells international bestsellers there and sells translation rights to Chinese publishers. Gruner + Jahr, with its partner Boda, publishes leading parenting, women’s, men’s and lifestyle magazines. And Arvato, the largest Bertelsmann unit in China, has a logistics network that spans the country, and partners with major international and Chinese corporations. The BAI investment fund was founded in 2008 and has 20 holdings. 34 International “If we succeed in setting things up right, we can really leave deep tracks there” Pankaj Makkar has run Bertelsmann’s Corporate Center in New Delhi since February of 2012 Corporate Center New Delhi, India India, with over 1.2 billion inhabitants, is the world’s secondmost populous country and is considered the world’s largest democracy. At the opening of the new Corporate Center in February 2012, Thomas Rabe, Bertelsmann Chairman and CEO, stated, “India is an important market for our international growth. The country’s demographic, economic and technological development offers a future-oriented company like Bertelsmann many opportunities.” All of Bertelsmann’s corporate units were already present in India prior to the opening: The RTL Group started two TV stations there with a national partner; FremantleMedia is involved with hit shows like Indian Idol, X Factor, and Got Talent; Random House India has been publishing books there since 2005. In 2011 Gruner + Jahr took over a majority share in the Indian magazine publisher Maxposure. And Arvato India has been working in the Customer & Marketing Services unit as well as in e-commerce since 2003. All the corporate units will expand their business in India significantly in the coming years. 35 much as possible. Growth markets are always risky, especially for protagonists who are new to the market. Joint ventures with local partners are another tool. The partner brings the local expertise, is familiar with consumer behavior in that country, and knows, for example, how TV shows should be designed. We, Bertelsmann, then deliver the content. That is exactly what we did in India with our RTL joint venture, the first of its kind. Our adventure channel, Thrill, has been on the air since November 2012. What role does the Internet play in your respective countries? What specific opportunities does it offer? THOMAS MACKENBROCK: Brazil is behind China in terms of development, but right now the Internet in Brazil is taking off at an incredible pace. Nowadays, nearly half the population has access to the Web, and the number is rising. Many companies are still in their infancy. One interesting observation: Brazilians are crazy about social media. In fact, Brazil has just surpassed India in terms of Facebook user numbers and now is second only to the United States. It’s a very exciting time here. We are right where China was five years ago, and the next wave is building momentum. PANKAJ MAKKAR: In India the situation is similar to that in Brazil. The Internet is booming. But it’s happening via mobile devices, not via computers. Cell phones are ten times as common as computers. From the consumer perspective, this means new routes to information and entertainment. Even people living in villages can get connected now. It is a revolution that affects the entire country. It’s a great time for us to be involved. If we succeed in setting things up right, we can really leave deep tracks here. What does the fact that Bertelsmann is a European or German company mean in your countries? PANKAJ MAKKAR: I think that in India Bertelsmann is perceived not just as a big international company, but also, in particular, as a family business. That is very significant for our partners in India, because their values and way of thinking are similar. THOMAS MACKENBROCK: In Brazil most of our partner companies are owned by families. They speak the same language as Bertelsmann: longterm orientation and strong corporate culture. It should also be noted that these families often have a European background. In some cases, discussions involve partners whose grandfather or great-grandfather immigrated from Europe. This emotional connection usually makes things easier. ANNABELLE YU LONG: In China things are somewhat different. In my country, people generally have a high opinion of European countries. That is especially true for Germany; quality and discipline are things we value highly. Most Chinese people have heard the name Bertelsmann; we are one of the first Western companies that entered the market here in the early nineties. How often do you three share information? How closely do you work together? ANNABELLE YU LONG: We communicate constantly. On the phone, via video conference, via e-mail, or we meet in person. THOMAS MACKENBROCK: Thanks to various projects in which we have been involved, we three really know one another well. I worked with Pankaj three years ago in New York; I was in China with Annabelle in 2007. It’s really a wonderful situation. Even though we are now all in different regions of the world, we have a solid personal connection. PANKAJ MAKKAR: Specifically, that means we all know we can pick up the phone anytime to say, “This is what’s happening here. Do you see a similar development there? Do you know someone I could get in touch with?” And we visit each other’s countries, which is also very helpful. The Corporate Center in China opened in 2006, followed by the Centers in India, then Brazil, in 2012. How have you been able to benefit from one another? “Bertelsmann has set out on a global journey” Thomas Mackenbrock has run Bertelsmann’s Corporate Center in São Paulo since January of 2012 Corporate Center São Paulo, Brazil “We are now present with our own offices in all the growth regions” Thomas Mackenbrock, Brazil Corporate Center PANKAJ MAKKAR: It starts with asking about employees: how many do you need? And then it moves to logistical challenges. And then to what types of projects make sense. What can you do to build up a brand as fast as possible? How much do we want to promise? That’s a tricky question – if you pledge too much, things can get difficult, but if the targets are too low, the brand won’t develop well. China really was the test vehicle for all these questions, and Annabelle did an amazing job. When I started my Center, I got a lot of help from Annabelle. I was really lucky that she was able to come to India for this purpose. THOMAS MACKENBROCK: And then, it’s not just a learning process for us. It’s a whole new journey for Gütersloh as well. After all, a lot more is at stake than just establishing a Corporate Center in a particular location. Bertelsmann has set out on a global journey. Links of a chain are being joined together. We are now present with our own offices in all the growth regions. ANNABELLE YU LONG: And this development is based on a trim, flexible strategy. It’s very efficient. We can move quickly. I think we are really well positioned. I don’t see any other media company that is as well positioned for a globally based digital regional strategy. 2 Brazil, with over 192 million inhabitants and an area of 8.5 million square kilometer, is the world’s fifth-largest nation and South America’s most populous country. Bertelsmann had already been represented in South America for quite some time prior to opening its own Corporate Center there in June of 2012. Among the shows marketed there by FremantleMedia were hits like Idol and The Apprentice. The Random House book publishing subsidiary is represented in Argentina, Chile, Mexico, Colombia and Uruguay. Three automotive magazine branches in Argentina, Mexico and Brazil as well as G y J Televisia in Mexico belong to Gruner + Jahr. In South America, Arvato works in the areas of distribution services, service centers and print. Overall, Bertelsmann has about 3,000 employees in South America. The goal is to build on that in the future, as Thomas Rabe explained at the official opening of the Center: “It is important to be represented with a central anchor. The new Corporate Center will help us further develop our existing activities in this region and to build up new businesses – for example in the areas of education and digital media.” 36 Magazines 37 Magazines I read because ... Gruner + Jahr’s world of magazines is as diverse – and its topics and formats as varied – as the countries the magazines appear in. Why readers all over the world look forward to every issue of “their” magazine Text: Tanja Breukelchen. Photos: Bernd Jonkmanns F rance, India, China, the Netherlands, Spain... Gruner + Jahr is represented in over 30 countries with more than 500 media products. High-quality magazines for a wide readership and attractive target groups. Quality journalism, opulent visuals, topicality – Gruner + Jahr has a market-leading title in nearly every magazine segment. Add to that content for tablets, apps and high-reach websites. Worldwide. Topics range from news magazines to fashion and science, from travel to family life. Who reads what? And above all: how, where and why? We asked readers from all over the world about their favorite Gruner + Jahr magazines. 2 A 38 Magazines 39 “I’ve been reading BRIGITTE for a long, long time. I’ve bought quite a few other women’s magazines as well, but the good thing about Brigitte is that it doesn’t keep changing. It stays true to its style. You get good, practical fashion tips, great recipes, good stories and interesting travel articles” Gabriele Büttner (49), freelance online shop owner from Hamburg Germany: BRIGITTE From fashion and cosmetics to cultural and social topics, and even psychology dossiers: The women who read BRIGITTE have high standards. They not only expect excellent entertainment and reliable information, but also a high use value. Sophistication and excellent content are also the guiding values for BRIGITTE WOMAN, the popular title for women aged 40 and over. Publication: bi-weekly Circulation: 577,049 Germany: STERN People are inundated with information these days. To find your way around, the last thing you need is more facts and figures. You want a magazine that filters, categorizes, and evaluates. STERN provides orientation because it offers context as well as content. Generous visuals, a modern, clear layout, topical social issues, the most important current events, and a look at the human side of the news. STERN takes a stand, states a point of view and gets involved. Gruner + Jahr In 1965, the publishers John Jahr and Dr. Gerd Bucerius teamed up with the printer Richard Gruner to create the Gruner + Jahr printing and publishing house. In the late 1960s, Gruner sold his shares; Jahr and Bucerius each held 37.5 percent. The publisher Reinhard Mohn bought a 25-percent stake. By 1975, Mohn’s media group, Bertelsmann, had acquired 74.9 percent of the shares. Only one of the founders remained a shareholder – the Jahr publishing family. Gruner + Jahr strengthened its position by acquiring holdings and companies in Germany and, from 1978 onwards, abroad. Publication: weekly Circulation: 788,621 “Sure, it’s impossible to be in the know about everything and have something to say on it – but why not at least try? Since I started reading QUEST, I never cease to be amazed at how much knowledge is packed into every issue” Noah Baars (26), political science student from Amsterdam Netherlands: QUEST QUEST offers a fun way to learn more about nature, technology, health, psychology and history. The magazine uses contemporary language and design and presents exciting photos, elaborate illustrations and informative charts. Its concept is based on the international family of brands built around the popular science magazine FOCUS, which is the best-selling monthly title in Italy with an average circulation of 425,000 copies. Publication: monthly Circulation: 181,698 “The first thing I look at in the new STERN is the last page, is ‘What’s XY up to these days...’. Then I look at the TV schedule. I like to read the insurance tips. Otherwise, I always skim through it once, then begin to read – unless Gaby nicks it off me and I don’t get it back until just before the new issue is out” Darius Büttner (46), account manager from Hamburg A Magazines 41 “Reading GEO means always learning new things, discovering and understanding the world around us. Whether it is major travel features or scientific news, everything is made interesting and is fun to read. If you have children, I recommend GEOlino and GEOlino mini, even for very small explorers of the world” ”I travel all over the world, and sometimes live in Europe – in Hamburg and Rome. But when I’m in China, I regularly buy RAYLI FUSHI MEIRONG simply because it sets trends, it’s young, and it offers me fashions that are a perfect mix between the latest looks and Chinese tradition” Andor Busse (47), architect from Hamburg, with Johnny (8) Linda Chang (32), actress from Shanghai China: RAYLI FUSHI MEIRONG A unique blend of Western fashion trends and traditional Asian fashion: RAYLI FUSHI MEIRONG (“Fashion & Beauty”) is the leading high quality women’s magazine in China. Two glossy editions are available each month as a twin pack. With around 400 pages of wearable clothes, fashion and beauty products from renowned international brands, the very latest styles, accessories and trends as well as beauty and lifestyle topics, RAYLI FUSHI MEIRONG represents the lifestyle of young Chinese women aged from 20 to 30 years old. Publication: monthly Germany: GEO With serious journalism, brilliant visuals, authenticity, vision and connective thinking, GEO is a basic medium of the information society. It stands for conveying knowledge and values. With its journalistic principles – “a liking for the unusual”; “a curiosity for what’s worth knowing”; “an awareness of the endangered”; and “an open mind about the future” – GEO is the most widely read monthly magazine sold on newsstands, and one of the most influential media in Germany. The GEO family offers specialist coverage of specific themes with GEOlino, GEO Epoche, GEO kompakt, GEO Saison, GEO Special, GEO Wissen and GEO thema. Circulation: 1,380,000 France: GALA In just ten years, GALA has become the top people magazine in the women’s segment in France; a magazine that invites readers to escape from everyday life and to dream a little. Every week, GALA offers insights into the world of the rich and famous, and lots of reports on fashion, beauty and everything for a beautiful home. There are also exclusive interviews with celebrities from film, music, politics, business, TV, sports, society and literature. Publication: monthly Publication: weekly Circulation: 285,417 Circulation: 283,968 WITH THE KIND SUPPORT OF THE LA BIOSTHÉTIQUE SALON IN PARIS 40 ”My job requires me to always stay well informed about political and economic issues, and I regularly read several newspapers and political magazines, so GALA is a wonderful balance for me: It is produced to high standards, reputable and yet so colorful and glamorous that you can easily submerge yourself into its world while still feeling you are being well informed – about subjects other than the ones I cover. That’s what makes reading GALA so relaxing for me” Elisabeth Pinteau (41), political journalist at Reuters, shown here having her hair done A 42 Magazines 43 ”Whether it’s an item about computers or wildlife, again and again I come across exciting and surprising topics in MUY INTERESANTE that stand out from the usual monotony of information. I learn a lot too – and I’ve already impressed many a party with my knowledge. I like the photos and layout: It’s a very modern magazine” India: ANDPERSAND Marcos Martínez López (39), musician from Valencia Centered around art, luxury and lifestyle topics, ANDPERSAND caters to people who enjoy and are interested in art, design, culture and an exclusive lifestyle. The magazine presents news and updates on the latest trends in art, design, travel and fashion and makes recommendations for interesting locations, restaurants and events. ANDPERSAND also wins over its intellectual readership with up-to-date background features on world events. Spain: MUY INTERESANTE MUY INTERESANTE conveys knowledge, interconnections, background information, and the latest developments and trends in an exciting, entertaining and understandable way. As a result, the magazine has attracted a modern, open-minded and knowledgethirsty readership on the Iberian Peninsula. MUY INTERESANTE also offers bimonthly special editions. Publication: bi-monthly Circulation: 60,000 France: NEON Nearly ten years after the launch of NEON in Germany, Gruner + Jahr has launched a French edition of the successful lifestyle magazine. NEON offers emotional topicality and a broad variety of content including high-level reports on social and political topics, fashion trends, relationships, career, travel and pop culture, and is both entertaining and informative. Publication: monthly Circulation: 75,000 Publication: monthly Circulation: 170,138 ”In the past 15 years India has taken first steps towards the world market. Whenever people become more prosperous, their interest in art and culture grows – as does investment in these areas. Many wealthy Indians treat themselves to art. Yet there are not a lot of magazines in India. That’s why it’s important to have a magazine like ANDPERSAND that provides reputable, extensive information about the scene, about artists and their exhibitions “ Ashwani Bhanot (37), yoga teacher from New Delhi ”It’s great that we have NEON in France now, too. One of us always buys it. The articles have depth and show that topics from politics and business can also be told in a different way” Anika Kleinebrecht (36) and Norman Noulez (23), hairdressers from Paris A 44 Magazines 45 Magazines Spain: SER PADRES SER PADRES accompanies a child’s development from its first years until puberty. The magazine serves young Spanish families by providing advice and answering questions on sexuality, pregnancy and giving birth, on infant care and childrearing, so that children can grow up in a happy environment. The supplement SER PADRES BEBÉ is devoted to the youngest members of the family. at a glance Magazines worldwide Gruner + Jahr stands for quality journalism, a wide variety of subjects, and innovation Publication: monthly Circulation: 106,984 “I’ve read SER PADRES since my first pregnancy. As a new mother you are often uncertain and have doubts, so I found all the expert and reader advice on topics such as breastfeeding and weaning very helpful. Today I’m more interested in the long features, for example on ecological gardening” Esther Enjuto Castellanos (49), public administration worker, and Eusebio Llacer Llorca (50), English lecturer at the University of Valencia, with Ignacio (16), Gabriel (12) and Eusebio (10) The printing and publishing house Gruner + Jahr is headquartered in Hamburg and offers more than 500 media products in the form of magazines, websites and digital media formats and magazines in over 30 countries around the world. With titles such as Stern, Brigitte, Geo, Capital, Gala, Eltern, P.M. and Essen & Trinken the publishing house stands for expertise in all areas: news, business, science, services, fashion, and lifestyle. 11,585 employees across the world ensure this. Gruner + Jahr’s most important international holding is Prisma Média in Paris. Prisma Média is a wholly owned subsidiary of Gruner + Jahr and is the second-largest and most profitable magazine publisher in France. Gruner + Jahr also publishes magazines in China, India, Italy, the Netherlands, Austria, Poland, Spain, the Adriatic countries and Mexico. In Germany, Gruner + Jahr owns a stake in Dresdner Druck- und Verlagshaus (60%), Motor-Presse Stuttgart (59.9%), in SPIEGEL-Verlag Rudolf Augstein GmbH & Co. KG (25.25%) and the Hamburg School of Journalism (Henri Nannen School, 95%). More:→ www.guj.de New strengths: Digital Netherlands: VOGUE As one of the world’s foremost fashion magazines, Vogue is aimed at discerning, fashionorientated readers who appreciate quality and editorial expertise. Brimming with impressive photography, VOGUE presents topical reports and features on culture and the fashion industry. G+J Uitgevers brings the legendary fashion magazine to Dutch newsstands in cooperation with Condé Nast. Publication: monthly Circulation: 60,000 ”Why are we reading VOGUE during a break from shopping? It inspires us, because hardly any other magazine is as close to the fashion world. You get the feeling you’re sitting right by the catwalk. Add a cappuccino and it makes shopping even more fun” Annika Tol (25) and Eva Mattern (28), online journalists from Amsterdam and The Hague The transformation of journalistic content into the digital world is the key challenge facing G+J. In Germany alone the publishing house now offers more than 20 Internet services linked to its titles, such as www.brigitte.de and www.neon.de on. There are about 60 branded sites in Germany alone, and the brands maintain more than 150 social media presences. Users can view information and participate in communities, as well as order books and calendars and other selected products directly from online shops, receive newsletters, and access a variety of databases. Gruner + Jahr’s online services are also available on mobile devices. More:→ www.guj.de Quality for tomorrow: Our own school of journalism Quality journalism: For 34 years now, the Gruner + Jahr publishing house has run its own school of journalism, where 20 participants a year are trained following a tough admissions procedure. The school provides a foundation of knowledge, research expertise and quality on which the publisher can build. More:→ www.journalistenschule.de These are just 20 examples of the more than 500 different media products that Gruner + Jahr produces worldwide 46 Digital 47 Digital “Like an uncle…“ A brilliant idea? A bold business venture? A start-up for the future? Young, innovative companies in the digital media field have a strong partner at their side in Bertelsmann Text: Anna Butterbrod. Photos: Sebastian Pfütze E lika from Brazil chats with Endstille from Germany. Allan1995 from Costa Rica plays a game of Tic Tac Toe with Sunny Girl in Hong Kong. Leventon from South Africa writes: “Hi, I’m new here. Looking forward to meeting you all!” The fact that these five people from the farthestflung corners of the world interact with each other is due to two people from Cologne: Christian R. Schulte (40) and Cornelius Rost (37), who founded the online network qeep in 2006. Two years earlier, Facebook had revolutionized everyday life on the Internet, and they both anticipated that the mobile Internet would soon have an equally far-reaching effect. The two business economist friends added an application for their own amusement – computer games. And with that a business idea was born: a mobile community where you can meet people and play games with them. A 48 Digital 49 ing racy photos that members try to upload to their profiles. The cleanup is necessary, or qeep would soon turn into an erotic portal. “In the beginning it was strange,” she says. “But now I don’t even notice that I’m looking at naked people.” At the next desk, product developer Guido Frohn (39) and Bjorn Fietz (32), a freelance writer, are talking shop. Actually Fietz is a labor and social rights lawyer, but writes screenplays for qeep adventure games as a sideline. Just now they’re discussing the new “Area 8”, where participants have to fight aliens in a destroyed city. “My job as a lawyer is very matter-of-fact; as a writer I can be creative,” he says. “It’s a nice balance.” Most of the team are between 20 and 40 years old, in other words close to the target 18 to 24 age group. Each employee receives a company cell phone. Many of them have three mobiles on the table – for gaming, trying things out, and making private calls. Everything looks stylish and clean, but it’s done on a budget. The large gray plant tubs came from a Lufthansa clearance sale; the desks and chairs were bought second-hand from other companies. Rather than have snacks delivered from expensive third-party suppliers, the team stock a shelf themselves and keep a running tab of what people have to pay. Wherever possible, unnecessary extra costs Bertelsmann Digital Media Investments Bertelsmann Digital Media Investments (BDMI) is a Luxembourgbased venture capital fund founded by Bertelsmann and managed by an international team from the U.S. and Germany. BDMI’s portfolio includes startups like the American Reading Company, deal united, drama fever, LearnShip, Mojiva, trion, audible. com, Returbo and RegioHelden. Pizza day: the directors and employees order from an Italian restaurant around the corner, which regularly runs Tuesday specials Schulte and Rost missed being their own boss. They had both already successfully founded and sold businesses, but were working full-time for other companies when they came up with the idea of qeep in 2005: Schulte was working at T-Mobile, Rost at Nintendo. “In large corporations, strategies and structure often eat up a lot of time, which results in momentum being lost,” says Schulte. “Being self-employed always appealed to us because good and bad decisions have a direct impact.” Rost was the first to quit his day job, and developed qeep from a desk at a friend’s company. When Schulte followed suit, they moved into an office and finally, in 2007, into a 330m2 loft in a trendy office building in the Kalk district of Cologne. It looks like one of the cool open-plan offices you see on American TV: The walls are painted mint green, bicycles are parked next to a pink beanbag, and photos are tacked up on a magnetic wall, including one of a city run that “team qeep” took part in. The smell of chicken being fried for lunch by one of the company’s 18 employees comes from the kitchen. The rest are ordering pizza as today is Tuesday and the Ital- are saved – possibly the most important lesson for a start-up. Shortly after qeep launched, each new client was celebrated as a sensation and cheers echoed through the loft. “Even if only one user per day was online, we gave it our all,” says Guido Frohn and laughs, recalling the days when the network consisted almost entirely of qeep employees. “We had to play and chat like mad so that customers didn’t feel like they were in an empty disco.” qeep thrives on diversity. “We are doomed to grow, as it were,” says founder Cornelius Rost. And the qeep community is indeed growing: It now has 17 million members, and success has become the norm. Serene calm prevails in the XXL office. All you can hear is the steady tap of computer keyboards – and a crunching sound: While Huu Ha Le (29) programs a new game on a screen, he nibbles breakfast cereal from a porcelain bowl. Behind the native Vietnamese is a poster of the sexy pop singer Shakira – a source of inspiration that Huu is denied from his regular sitting position. Meanwhile, Bernd, who sits opposite him, has an ideal view. Is he the secret Shakira fan who put the picture up? The programmer smiles and says nothing. One of the network’s most popular games is “Friend Zoo” in which your friends become A qeep, Cologne: Facts and figures When the two Managing Directors Cornelius Rost and Christian R. Schulte founded qeep in 2006, they had nothing except an idea: transferring skill gaming and friend networks from the Internet to cell phones. After starting small, they now occupy a 330m2 office loft in the Kalk district of Cologne. qeep currently has more than 17 million members. Rost and Schulte employ 18 people aged between 20 and 40 years who have just as much fun with their work as the members do with computer games and mobile networks. “We are doomed to grow, as it were” Cornelius Rost, Managing Director of qeep ian restaurant around the corner has a special offer. Everyone eats together in the conference room: Nina Lentzen (24), an intern with translucent pink-purple glasses and a lip piercing, talks with Bernd Wahlen (33), a programmer, about his weekend trips to Marrakech, Tallinn and Agadir. This isn’t what you’d imagine tech geeks to be like... qeep is in fact different in many ways: For instance, Nina’s job duties also include delet- The idea behind qeep is simple: To use the service, all you need is an Internet-ready cell phone – download the free software onto the device, set up a profile, and get started right away! 50 Digital 51 For qeep employees, the digital challenge lies primarily in their own enjoyment of playing the games. They invented almost all of the games offered money to the table, but also know-how and a network that has opened quite a few doors for us,” says Schulte. Bertelsmann owns shares in qeep, so important steps are coordinated beforehand. “What’s special about Bertelsmann is that we were assigned a kind of ‘uncle’ who knows the industry well and helps us out when we have questions.” Schulte and Rost presented their concept to Bertelsmann at the end of 2006 and were given the nod three months later. This “We want people to feel virtually at home here“ Cornelius Rost, qeep Managing Director came as a big relief to the start-up directors. “You can’t fund this kind of company yourself indefinitely. Especially not if you want to succeed globally,” says Rost. To keep revenues on the rise, qeep must constantly come up with new incentives. First it was “Sound Attacks” - loud noises that you can send to friends, that their cell phone will play to them. Attacks range from a high-pitched “happy birthday” to rude bodily sounds. Since last year, members can earn “badges” if, for example, they upload photos three days in a row or log in ten days in a row. While Nina Lentzen checks the work done by a photo administrator from Bangladesh, she and computer scientist Michael Landen (31), seated next to her, cultivate good customer relations, patiently answering questions and solving problems. They often get thank-you emails, some with wedding photos of couples who have met through the network. “qeep is more than a tool,” says Rost. “We want people to feel virtually at home here. We make it cozy for them.” This leads to very real friendships, such as the one between Cornelius Rost and Irfan Khan Afridi, 33, a mechanic from Pakistan. They bumped into each other online and have exchanged ideas on a regular basis since then. Recently, a package arrived at Rost’s desk from Irfan containing gifts and Pakistani trail mix the perfect comfort food for the next chapter in the company’s history... 2 Digital at a glance Discover opportunities Cornelius Rost: Managing Director Cornelius Rost studied Business Administration at the Beisheim School of Management (WHU) in Vallendar, the Ecole Supérieure de Commerce de Toulouse and the University of Western Australia. From 1999 to 2001 he established the Internet communities amiro and ciao as Founder and Marketing Director. From 2002 to 2006 he was European Brand Manager at Nintendo for Game Boy Advance and Nintendo DS. He is married and has two daughters (aged 2 and 4). pets that you sell to other players. Each sale increases the value of the animal. The network’s currency is q-points. Customers can buy qpoints (1,000 units cost $1) to use as stakes for games. This is how qeep makes 80 percent of its revenues. The remaining 20 percent comes from advertising. qeep employees are particularly in demand as pets because it’s as though you were friends with Mark Zuckerberg himself. Virtual gifts, which appear as small pictures at the top of the recipient’s profile, are also on offer. A $5 diamond ring is the most soughtafter. Several times a day the $100 Infinity Diamond is also ordered. Neither of the two directors expected such a high-priced, purely virtual gift to sell so well. “You can’t test members’ reactions in advance – we have to rely on our gut instincts,” says Schulte. In the case of the Infinity Diamond it was a good one - 1,122 users have bought one since its introduction two years ago. “But you shouldn’t try to overdo things,” says Schulte. “Otherwise you can ruin things pretty quickly.” And that would be fatal, especially now that things are going so well. Every month qeep adds another 500,000 new customers, and the company will soon be turning a profit. It has only been able to keep going financially thanks to its sponsors, one of which is Bertelsmann Digital Media Investments. “They not only bring Believing in the future also means investing in new ideas and innovations. This is what Bertelsmann Digital Media Investments (BDMI) puts into practice The BDMI investment Skimlinks, which helps website publishers to monetize their content, increased its revenues by more than 80 percent and scored more than three billion page views in December 2012 alone. Many of the Bertelsmann Digital Media Investments fund’s holdings are on an expansionist course. One example: in 2012, the shopping portal Mogujie expanded its leadership in the social e-commerce sector, increased its reach by 200 percent, and enabled transactions worth $30 million per month. More:→ www.bdmifund.com Christian R. Schulte: Managing Director Christian R. Schulte studied Business Administration at the Otto Beisheim School of Management (WHU) in Vallendar, EDHEC in Nice and Pennsylvania State University. He built up the technology company econia and worked as a strategy consultant as well as Head of Strategy for the German subsidiary of DEXIA S.A. Most recently he served as a senior manager in T-Mobile’s strategy department. Schulte is married and the father of 3-year-old twins. 52 Radio & Music 53 Radio Good vibes on the airwaves – Fun Radio The station with the “dance-floor sound” gives us a foretaste of what radio of tomorrow will be like: friendly and ever closer to listeners thanks to the new digital media and social networks Text: Olaf Tarmas. Photos: Odile Hain B onjour! It’s only six in the morning, but already the team at the Fun Radio Studio in Paris is wide awake and ready to get to work. Bruno and his six morning-show partners are gathered around the table and try – with a cheery group salute – to help their listeners shake off the last traces of sleepiness. Just to make sure the job is done, seconds later the station hits them with a chart-topping dance track. An upbeat style, music that you’d hear in the hottest clubs, and sharp presenters are the recipe to Fun Radio’s success; a recipe that goes down very well with young listeners in the 1834 age bracket. Since the station’s audience peaks in the morning, between 6 and 9 a.m., Bruno dans la radio (Bruno on the radio) is the most important program of the day. Waking up, having breakfast, commuting to work – Bruno and his team accompany their listeners through all these stages of the morning to get their day off to a good start. Fun Radio’s listeners are mobile and A 54 Radio & Music Fun Radio, Paris, France Founded on 2 October 1987 in the south of France, Fun Radio was born during the golden age of free radio. The station, which today is part of RTL’s French radio family under the leadership of Christopher Baldelli, relies on a clever mix of music, friendly presenters, Web 2.0 communications and proximity to listeners. In France, Fun Radio is aired on FM Radio. It is accessible throughout Europe via Astra 19.2° East and worldwide via the Internet. For more information: www.funradio.fr Jérôme Fouqueray, Managing Director of Fun Radio It was under the auspices of Jérôme Fouqueray, in charge of the station since 2007, that Fun Radio became one of the most popular music radio stations among young people. Undoubtedly this is because he places great importance on making the programs accessible through new digital media. Fouqueray considers Fun Radio a global brand. He has introduced it in Belgium, Slovakia and, more recently, in Spain. In addition, he was behind the development of the station’s unique approach to music, with its dance floor format. 55 tune into their station everywhere they go – on radios, mobile phones, tablets and laptops. So Bruno & Co don’t just talk into the mike, but stay in contact with their audience on a range of channels. While the music plays, presenters engage with listeners on the Facebook page and the station’s Twitter account. The morning’s highlights are streamed online on the Funradio.fr website, prompting listeners to react and comment. “The digital media and Internet really complement musical radio, because the new media and audio technology lets listeners have their radio with them at all times – and even interact with the presenters,” explains Jérôme Fouqueray, Managing Director of Fun Radio, whose office is filled with sound, just like the studio. “It’s important that Fun Radio remain a trailblazer in this domain.” Twenty-one percent of listeners already receive Fun Radio in digital form on their computers, laptops or tablets – no other radio station in France can match this. Moreover, Fun Radio was the country’s first station to hit a million followers on its Facebook page, which now has more than 1.4 million fans. Jérôme Fouqueray is more than a little proud of these results, especially since the competition on the musical radio market has intensified considerably in the past few years. He feels the success of Fun Radio is due to clear positioning. “Fun Radio channels positive values: music and partying in a spirit of good humor and friendship. The musical selection is equally clear: 50 per cent dance, 50 per cent R ‘n’ B. We play tracks from the biggest stars of these musical genres: Rihanna, David Guetta, Lady Gaga.” The same goes outside the studio. Once a year, Fun Radio organizes ‘Starfloor’, a concert event in Paris that attracts celebrities as well as the public. Here, too, the digital network plays a major role: in France, Starfloor was one of the most tweeted-about concerts of 2012. For the Managing Director, another key to success lies in the proximity to, and contact with, listeners – hence the importance of the interactive sequences in the morning schedule. One of the most popular is Bruno paie vos factures! (Bruno pays your bills!) Got an out-ofcontrol phone bill, need urgent repair work on your car, or just want to take your girlfriend out for dinner? Get in touch with Bruno – he may be able to help you out. But even the best of concepts can only work if it is supported by charismatic presenters who spread positive vibes in the studio and beyond. “Bruno and the other presenters on the team have known each other for a long time and are good friends,” explains Jérôme Fouqueray. “The relaxed atmosphere, the wit that comes 7:00 a.m.: Twitter alert! ON AIR: Christina Guilloton presents Twitter News on Bruno’s morning show – a review of tweets from Rihanna, Lady Gaga and other stars ONLINE: While Christina is on air commenting on tweets from the stars, listeners can follow along on the funradio.fr website where the pictures to match are posted online “BRUNO ON THE RADIO,” 6:00 a.m. – 9:00 p.m. Bruno Guillon is on the air 8:59 a.m.: Bruno, agent provocateur 7:35 a.m.: Lots of notes ON AIR: The studio phones haven’t stopped ringing. Fun Radio is giving away concert tickets for Rihanna’s upcoming tour! (above). Meanwhile, Julien consults the daily press to prepare his Fake news (right) ONLINE: Listeners can watch Rihanna’s latest video on the funradio.fr website and comment on the contest on Facebook “I always respond to questions in person” 7:43 a.m.: High-voltage tongue twister ON AIR: On Elliot’s Challenge Presenter Elliot Chemlekh tests, in a somewhat unorthodox fashion, whether he can hold a 9V battery on his tongue ONLINE: Elliot’s wacky experiments are filmed and the videos are immediately streamed to the funradio.fr website. During the show, Bruno reads out comments posted on Facebook by listeners ON AIR: Star Presenter Bruno Guillon teases Justine Salmon, Presenter of the news headlines: “She’s gone and pinched a curtain from Versailles, and this morning she’s wearing it as a scarf!” ONLINE: While Justine reads the news and weather, Bruno engages with listeners on Facebook. “I always respond to questions in person,” he says Bruno Guillon, Presenter on Fun Radio through in the games, and the kidding around are genuine, not artificial, and listeners pick up on that.” The same goes for La libre antenne de Karel (Karel’s Open Antenna), a very popular show that goes out during the week from 9 p.m. to midnight. Even during this late time slot, Fun Radio has a whole team of presenters in place. The main presenter plays a director-style role, with each of the actors positioned around the studio to make things as entertaining as possible. The music line-up is similar to Bruno’s, but there’s an even greater emphasis on direct contact and dialogue with listeners. The name of the program, ‘Open Antenna,’ sums up the approach. The presenters talk to listeners about their problems and worries. They get involved, and yet don’t get too serious. The main focus is usually on love life, relationship problems and issues around sexuality, with no holds barred on either side. Jérôme Fouqueray defines the role of the principal presenter with the same precision he uses to describe the musical programming of Fun Radio: “I don’t want celebrity presenters, with everything revolving around them, but friendly and charismatic presenters who put themselves at the service of the programs and the listeners”. The real star – and Jérôme Fouqueray is well aware of this – is neither the music, nor the presenters, but the sum of the parts, in other words the whole program. Accordingly, in between the main morning and evening shows, the emphasis is mostly on music. So from 9 a.m. to 9 p.m. a series of DJs dominate the airwaves. During this time, the programming consists of mostly music with few interruptions. Listeners mainly want to listen to talk shows in the morning and evening, when as many as seven presenters can be in the studio at a time. 2 Bruno Guillon, Presenter Born in 1971, Bruno always wanted to become a radio presenter. He worked for many years at various radio stations and television companies. Since 2011 he has been presenting the morning program Bruno on the radio with his long-term colleagues: Christina Guilloton, Florian Gazan and Elliot Chemlekh, even though, by his own admission, he’s not really a morning person… A 56 Radio & Music 57 9:46 p.m.: Wine tasting ON AIR: Presenter Jeff makes appreciative noises for the benefit of listeners while sampling the 2012 vintage of the Beaujolais nouveau according to the rules of the art of wine tasting ONLINE: Presenter Sandra posts a link on Facebook giving details of wine tasting courses offered by a school of oenology “KAREL’S OPEN ANTENNA,” 9:00 p.m. – 12:00 a.m. Karel is on the air 11:59 p.m.: The night shift begins Karel, Sandra and the others are already in their jackets. As they present the final minutes of the phone-in show, DJ Dario (right) warms up at the decks. From midnight, he takes charge of the studio and heats up the airwaves for those who want to stay awake “I love the great freedom of engaging with listeners” 9:52 p.m.: We’re back! ON AIR: The best moments of Karel’s Open Antenna are also filmed and streamed online – Jeff compares the Beaujolais to Red Bull… ONLINE: Listeners can visit the funradio.fr website to see the latest photos and videos, but also to catch up on any specials they might have missed over the last few weeks Karel, Presenter on Fun Radio Karel, Presenter star of the phone-in show on Fun Radio 10:33 p.m.: Karel, problem solver 10:45 p.m.: Boozy and bluesy Born in 1978, Karel knew from a very early age what he wanted to do later in life. From the age of 16, he wanted to become a presenter....on a Fun Radio phone-in show called “libre antenne.” He started as an intern before becoming a presenter and DJ for various Fun Radio programs. By 2010, his childhood dream had finally came true: Karel was appointed lead presenter of the phone-in show. ON AIR: Karel at your service is the most popular segment on Thursday evening. Karel gets stuck into listener’s problems (above). Today: Nalia wants to negotiate with her parents over a piercing. How should she go about it? Tony, Co-Presenter of the program, asks his sound engineer Jérôme to step up to the mike. Fuelled by the Beaujolais, Mike sings some French hits that listeners are supposed to recognize 10:17 p.m.: Mini tournament on Facebook Sandra points out the evening’s hottest topic on the Facebook page: The question of how Karel’s Open Antenna should celebrate its 300,000th Facebook fan prompted a flood of responses. In a matter of minutes, more than 350 ideas were posted, from ‘Champagne for all the fans’ to ‘A 24-hour phone-in show’! 457 people ‘like’ this ONLINE: Tony posts a picture of Jérôme as a Beaujolais drinker, in a Basque beret and a striped sweater (left). 215 people ‘like’ this. Tony replies to comments from listeners 11:08 p.m.: Relationship troubles ON AIR: Producer Lilou attempts to manage the flood of calls hitting the station towards the end of this show. When the presenter Karel comes on to discuss relationship problems from 11 p.m. on, the lines are saturated. This evening the topic is morals and fleeting affairs, and apparently a lot of listeners want to put in their two cents’ worth... A 58 Radio & Music 59 Radio & Music at a glance A success – on air and beyond RTL Group has been writing the history of radio since the 1920s. In return, through the management of their royalties, many artists all over the world put their faith in another Bertelsmann subsidiary: BMG BMG Stars: David Garrett Not only can he play a Stradivarius – in the fall of 2012 he starred in the movie Paganini – der Teufelsgeiger (Paganini – the Devil’s Fiddler). In 2009 David Garrett signed a contract with BMG Rights Management. Songs of value BMG Rights Management The music industry is changing. In the digital age of online streaming and download portals, you cannot earn money with live performances and merchandising only. BMG Rights Management represents the rights of countless international stars, from Bruno Mars to ZZ Top. But what exactly does that mean? Text: Jan Drees In fall 2012, the British musician Bryan Ferry joined the new BMG. The Bertelsmann subsidiary will publish his next three albums, and Roxy Music’s frontman is also entrusting the administration of his existing catalog of songs to the music rights management company. The idea is to exploit his catalog of music rights, alongside about a million other songs and recordings that BMG now administers. As the fourth-largest music publisher in the world, BMG ensures that the songs are administered, exploited and popularized, for example by licensing them for commercials, TV series and video games. The music business in 2012 has little in common with the music business of 1972, the year the first Roxy Music album was released with Bryan Ferry. And because so much has changed, companies in today’s music business must work very differently as well. Bertelsmann has been in the music business for more than 50 years, since the founding of the Ariola label in 1959. After several restructurings, BMG Rights Management was founded in 2008 and is the only music major born in the digital age. After more than 30 million albums sold, Bryan Ferry clearly has no fear of financial hardship. But for many other artists, BMG’s rights management services are essential, because these days hardly anyone can live off album sales alone. However, artists no longer necessarily need a traditional recording company: They can profitably produce music at home, market themselves via social platforms and digitally distribute their songs directly. What has become more complicated, however, is the invoicing for these many sales channels. BMG eliminates the separation between music publisher and record label that has been the norm, and offers comprehensive music rights management for the digital age. Not only does this give the artist a higher percentage of revenue, but also, as Bryan Ferry stresses, “I’ve always liked to be hands-on with every aspect of the release.” The BMG contract ensures him this. The music business of the 21st century is complex and multilayered: Every time a song is played, royalties flow. The whole world of media is permeated with music. Even telephone ring tones can be purchased. When a CD or MP3 track is sold in the real or virtual store, when music is played on the radio or artists perform live, royalties are generated. Music is also an essential component of all movie and television films, radio and TV commercials, video games, websites and online streaming services. No media format can do without it nowadays. Music rights are licensed to permit music to be used, and the artists involved are remunerated accordingly. BMG administers, exploits and actively shapes this process, keeps close relations with partners in the international advertising and film industry, and helps find the right song for a product or a movie and licenses it directly. BMG handles this around the world. Bryan Ferry’s first BMG album was released on 26 November 2012. It’s called Jazz Age and is a tribute to the Roaring Twenties, a time when MP3, video games and online streaming services were not even visible – let alone audible – on the horizon. More:→www.bmg.com It all started with Radio Luxembourg ... Scorpions They sang about the Winds of Change – and, with more than 100 million records sold, are one of the most successful groups in music history Bryan Ferry BMG markets the majority of Bryan Ferry’s songs. The 67-year-old Briton has been in the business more than 40 years and has just released a new jazz album Bruno Mars The Hawaiian R’n’B singer (Grenade, Just the Way You Are), also relies on BMG Rights Management to represent him as a songwriter (credits include Cee Lo Green) Nena 99 Luftballons and and at least 99 other songs by the rock singer Nena are published by BMG Rights Management, and her new albums released under the BMG Masters Model Gossip Gossip features the sublime singer Beth Ditto, who has caused plenty of gossip herself, most recently after Karl Lagerfeld described her as his fashion inspiration The roots of RTL Group reach back to 1924, the year when radio enthusiast François Anen started broadcasting regularly from his attic. This station operated in 1925 under the name Association Radio Luxembourg and then became the Compagnie Luxembourgeoise de Radiodiffusion (CLR). Using the most powerful transmitter in Europe, in 1933 CLR started to broadcast a unique program in several languages using the same frequency. Radio Luxembourg soon became established as Europe’s leading commercial radio station. In the 1950s the English service on 208m medium wave, ‘Station of the Stars,’ set the latest trends and became very popular. In 1957 a daily Germanlanguage program went on the air under the name Radio Luxemburg. It would expand over the years and win over German audiences with star presenters including Camillo Felgen, Frank Elstner, Helga Guitton and Thomas Gottschalk. The success of its internationally oriented radio programs enabled RTL Group to write an important chapter in broadcasting history in Europe with its RTL brand. RTL Group/Radio RTL Group’s radio stations reach millions of listeners each day. The company’s flagship radio station is RTL in France, and it also owns or has interests in stations in Germany (for example 104.6 RTL, Antenne Bayern), Belgium (Bel RTL, Radio Contact), Spain (Onda Cero, Europa FM) and Luxembourg (RTL Radio Lëtzebuerg). More:→ www.rtl.fr • www.104.6rtl.de • www.belrtl.be www.radio.rtl.lu www.bertelsmann-erleben.de/radio BMG BMG owns the rights to over a million songs, making Bertelsmann’s music rights business the global No.4 in the industry – and the biggest rights manager not tied to a label. With the purchase of the independent music publishers Chrysalis and Bug Music, BMG acquired the rights to such timeless hits as Summer in the City and What a Wonderful World. Artists such as Yusuf Islam (Cat Stevens), Bruno Mars, will.i.am and Kings of Leon all count on BMG. More:→ www.bmg.com 60 Services 61 Services A SixLetter Word for Global Business: Arvato Originally founded as a printing company, the company now does business in a wide range of areas, and is constantly changing and evolving. As an integrated service provider Arvato provides its clients with bespoke solutions that help them successfully manage their customer relationships Text: Thomas Röbke. Photos: Enno Kapitza A n IT professional in Montreal wishes to deepen his knowledge of database administration. In Sao Paulo a computer course is starting. A web designer in Tokyo is designing a mobile app for smartphones. Angelika Diekmann is involved in all of it. Diekmann takes a dozen bright blue textbooks from the metal shelf and places them into a shipping box. The spry Arvato employee looks at the packing note to make sure that the right books end A up in the right box. “Sometimes I do think about where the 62 Services 1 63 Dozens of Microsoft authors are constantly writing new computer textbooks The IT sector is constantly evolving – freelance writers around the world, such as Melanie Gass, Chris Givens, Neil Tucker, Margaret Teague, Ron Davis (clockwise from the left) and employees from Microsoft’s headquarters in Redmond, WA supply the necessary training material. The text files are converted into digital formats 2 The Arvato Conversion Team led by Christiane Krone and Martin Mühl creates digital versions from the originals that are not subject to a fixed page structure and are therefore suitable for e-books. Each of the 2,000 computer training courses can be printed as a book within 24 hours 3 Arvato 63,818 people work for Arvato in almost 40 countries. Some examples: VVA – Arvato Media GmbH supplies books, CDs, magazines, games, paper, office supplies and stationery to over 200 publishers. The fully automated high-bay warehouse in Gütersloh alone can accommodate 70 million individual items in 60,000 pallet slots. Arvato is behind Lufthansa’s “Miles & More” program, Shell’s pan-European “Club Smart” customer loyalty program, and also works for France’s leading providers of energy services. Arvato produces the television supplement “rtv,” invoices clicks on the ads next to the search results for a leading search engine provider, and organizes logistics and customer communications for major mobile communications providers in Europe and Asia. books are going to be unpacked, who will read them, and what they are going to do with their new knowledge,” she says, smiling, and briefly glances at a label bearing a South African address before filling the next box. “Especially when they are headed to faraway destinations. It would be nice to fly away with them sometimes.” You can tell that she’s quite proud that this knowledge for computer scientists all over the world passes through her hands. For most people, the name Microsoft immediately brings to mind the world’s leading word processing program “Word,” “Excel” spreadsheets, and the “PowerPoint” program, which has become indispensible for presentations at companies and universities. Yet these are just the three most popular programs among hundreds that the software giant from Redmond, Washington has developed. Programs that are often known only to specialists are the ones that keep computer systems around the world running. Students and IT professionals at companies, educational establishments and institutions use textbooks to master the Microsoft programs, adapt them for their own purposes, and make optimal use of them. The programs include operating systems as well as developer software, such as Visual Basic, Visual Studio and Visual “Printed books are still the main business, but the trend is clearly towards e-books” Paul Korte, Business Development Manager InterDev, and of course the wide field of servers. In short, for almost everything you can do with a computer, there is specialized software from Microsoft - and the corresponding official Microsoft courseware textbooks, which are produced and distributed by Arvato. The total range encompasses about 2,000 different titles. For someone who is not a computer expert, this is an unthinkable number. Only some of the authors work exclusively for Microsoft; there are also freelance writers – experts from all around the world. Some titles are so specialized that they sell only a few hundred copies worldwide per year, so they are produced using a print-on-demand process at Arvato sites in Herzebrock-Clarholz, Valencia (USA) and Singapore. This means that when an order arrives, the desired number of copies of the book is produced on a special printer, bound and prepared for shipment –the order leaves the production hall no later than 48 hours after the order is received. The main customers are Microsoft’s certified training centers around the world: “They order the books at the last minute, that is, once the number of participants is finalized. Then the books need to get to them as soon as possible,” says Paul Korte, Business Development Manager at Arvato. “At this point, printed books are still the main business, but the trend is clearly towards e-books.” 350 titles are currently available in digital as well as print. The Conversion Team is working hard to increase this number. Arvato IT specialists on this team convert the book files they receive from Microsoft in the United States into an electronic format that doesn’t depend on any fixed page layout. Paul Korte: “This enables the user to change the font size, underline text and paste notes – and decide whether these will remain private or to be visible to others.” Arvato has also developed special software for e-readers: A program called skillpipe enables interactive, location-independent learning and quick updates. Most people still learn in the traditional way – collectively in the classroom – but skillpipe’s potential is enormous. It offers a range of convenient and useful features on virtually all major devices and systems, and now on mobile devices like tablets, too. The world’s largest software manufacturer has a long tradition of relying on the expertise of the Gütersloh firm. For more than 14 years, Arvato has supplied training materials to Microsoft certified training providers in Europe, the Middle East, Africa, Asia and the Pacific. Arvato handles everything from processing online orders to production, finance, logistics and customer services. In January 2012 this partnership was expanded to North and South America, taking the cooperation global. The contract also includes the construction of a platform for digital textbooks in the e-Pub format, as well as the setup and management of a “publishing community,” where registered A authors can post self-created content. “Print on Demand” is the name of the process that Markus Weber and Carl Stewart (above) use to produce Arvato books from each file at the Media Factory: individually, as ordered, each 100 to 900 pages long. 64 Services 65 4 The newly printed books are packaged and addressed Angelika Diekmann (above) and her colleagues in Picking & Packing send the newly printed courseware textbooks all over the world. They forward as many as 2,000 packages a week to the transport company. Arvato has also built a closed online shop system for printed and electronic manuals, through which all orders are received. It is the only one of its kind in the world that lets users choose between seven languages and make payments from 186 countries in 23 currencies. The prices depend on the strength of the country’s economy, so that in South Africa, for example, they are lower than in Germany. Another special feature is that trainers aren’t limited to the courses – they can compile their own individual textbooks by combining chapters from different books. The print-on-demand orders arrive on Markus Weber’s computer. New order data is transferred to the print server 24/7. “Every morning is exciting,” says Weber, “because I don’t know how much there is to do until I run the program.” In the core working hours from 6:00 a.m. to 2:00 p.m, eight employees work to produce an average 600 books a day, each 100 to 900 pages thick – and with the hefty ones clearly dominating. The paper webs run through the high-tech printer at a speed of 60 meters per minute, consuming two or three 12-kilometer long rolls of paper per day – each of which is enough to produce 42,000 printed pages. The software allows for prioritizing individual print jobs, which is important for the 24-hour express service. After a few minutes, individual pages of several books are neatly stacked at the end of the printing line. Carl Stewart ticks off which books are “done” on his list, places them in boxes and drives them in a lift truck to Dominik Schmenk next door, who stands at a hot glue machine and attaches the pages to their respective covers by hand, book by book. Schmenk’s shift began at 06:30 a.m. with the printing of the delivery notes, which were picked up at 07:00 a.m. He then printed out the colored book covers on a special printer. As all standard courses have the same blue motif on the front and differ only in their numbers, he cannot allow his concentration to flag. Says Weber: “There is a course 6234 and a course 6324 - a brief lapse of attention, and you’ve got a mistake.” Schmenk hears this, smiles 5 Customers make payments from 186 countries, in 23 currencies The staff at Arvato’s Finance Center handles the receipt of funds, taking into account various methods of payment, bank charges and exchange rate fluctuations. “Sometimes I do think about where the books are going and who will read them” Angelika Diekmann, Media Factory Picking unit calmly and pushes a cart with ready-bound books to the cutting machine, which aligns all the edges. Then each book passes through a kind of oven where it is wrapped in protective foil. Next, it travels through the warehouse containing the paper supplies for the next two to three days, to Angelika Diekmann and her colleagues in the shipping department. They are in charge of packing not only the output from the digital printer, but also the books that are required in large numbers – which are produced in offset and delivered on pallets. Each week, 1,500 to 2,000 packages of manuals begin their journey out into the world in this hall. So while the transport services are now responsible for delivering the course material on time, the Arvato Finance Center staff works to ensure that the bills are paid – and above all, how they are paid, because different methods of A payment and the associated bank charges Courseware Some of the 2,000 courses in the Microsoft courseware series are so specialized that only a few hundred copies are ordered per year. That is why they are only printed when ordered, in a print-on-demand process. In this way, essential expertise is made available in the shortest possible time. In the online shop, customized textbooks can also be compiled from various chapters of different titles. The skillpipe application makes all the content available in electronic form. 66 Services 67 Services at a glance Service around the world From printing company to customer communications, financial services, digitization and trade, to global logistics company: Arvato is synonymous with “global business” and a range of services that is probably unique in its breadth 6 Phone support for customers around the world 7 Students receive their textbooks in time for the start of the new seminar. An ever-increasing share of these are e-books. The skillpipe application developed by Arvato allows students to learn individually, even outside the group. Arvato’s service centers are always willing to listen to the questions Microsoft customers have about the software giant’s products. The service center staff provide quick and competent advice. “When I power up the computer in the morning, I never know what awaits me” Markus Weber, Media Factory Manager must be taken into account as well as currency fluctuations. Patrick Skaliks has to keep a vigilant eye on the international currency markets. Microsoft also entrusts its worldwide customer support to the Gütersloh-based service provider: The Microsoft courseware is one of five software programs handled by the Arvato service centers. The latest such center was founded in 2007 in Szczecin, where 47 employees answer customer inquiries in seven languages; nine of them specialize in the manuals. “Typical questions are ‘What books are needed for which certificates,’ ‘I can’t find my access data’ or ‘I need help looking for a particular title,’” says Karin Tepper. Each Manuals reach the user either online or in printed form employee deals with eight to ten calls per hour on average - and documents them for Microsoft in a special input mask, so that the software giant is kept up to date about the most common customer requests in real-time. The call center in the Polish port city was a success story from the start, says Tepper, “because we were able to recruit quadri-lingual staff here as well.” For example, in Szczecin an employee from Mozambique may right now be answering a Brazilian customer’s questions in Portuguese – while the customer is holding a textbook that has been sent to Brazil by Angelika Diekmann in Herzebrock-Clarholz. 2 More than 63,000 people work for Arvato in nearly 40 countries – doing everything from creating printed material to data management, customer services, financial services and IT. The Arvato Systems data center is one of the most state-of-the-art and secure in Germany. 3,600 servers are housed on 5,000 square meters – the size of a soccer field – add to that 1,700 application and Web servers, 1,700 databases, and 530 SAP systems. Storage capacity: 915 terabytes, plus 2.7 petabytes of storage capacity for backups. 500,000 ... ... original recordings from nearly 100 years of music history are archived and digitized by Arvato for its customer Universal Music Group International (UMGI). Arvato is responsible for operating and maintaining UMGI’s entire central media archive. 100 million mobile phones … ... were delivered by Arvato to customers in China over the past three years. With nearly 60 locations across the country, which have a combined storage area of over 65,000 square meters, the company’s own distribution network covers almost every Chinese province. Arvato generated revenues … ... of €4,449 million in 2012. The strategy of offering integrated service chains in all segments helped the company improve its market position in key growth markets and industries. Arvato won numerous major new clients and expanded its business with existing customers. The company saw strong growth in China, where it further expanded its nationwide logistics network. Business was expanded in India, while in South America developments included the establishment of new service centers for major customers in the telecommunications and Internet industries. Selected Arvato clients: More:→ www.arvato.de 68 Bertelsmann 69 Bertelsmann “We want to become more digital and more international” Thomas Rabe has been Chairman and CEO of Bertelsmann since January 2012. A conversation about continuity, change and Bertelsmann’s strategy Interview: Ulrich Lünstroth Thomas Rabe Chairman and CEO Bertelsmann “Content selection has never been as diverse or readily available as it is today” Thomas Rabe, Chairman and CEO of Bertelsmann M r. Rabe, how can a company like Bertelsmann, with 100,000 employees and hundreds of business locations in more than 50 countries, be concisely described? THOMAS RABE: I think that three aspects are particularly important: First, we are Europe’s largest media and services company, with leading market positions in the TV, book, magazine, services, and print sectors. Second, our business activities are based on a corporate culture that has developed over 175 years and was heavily influenced by Reinhard Mohn, the visionary entrepreneur, who was the founder of the modern Bertelsmann. And third, it’s important to know that Bertelsmann is currently undergoing a process of transformation from which it will emerge as a faster-growing, more digital, and more international company. You mentioned that Bertelsmann owns a number of very different businesses. How did this portfolio evolve? A 70 Bertelsmann Dr. Thomas Rabe Chairman and CEO of Bertelsmann Thomas Rabe was born in 1965 in Luxembourg. The son of an EU official, he was raised in Brussels, where he graduated from the École Européenne secondary school. Rabe speaks five languages, and until 1989 studied business administration at RWTH Aachen and the University of Cologne, then obtained a doctorate at Cologne in 1995. He went on to work at the European Commission’s Directorate-General for Financial Institutions and Corporate Law in Brussels, and joined the international law firm Forrester Norall & Sutton (now White & Case) in 1990. In 1991 he left to join the state privatization agency Treuhandanstalt in Berlin. From 1996 to 2000 Rabe worked at the listed company Clearstream, where he was appointed Chief Financial Officer in 1998. He has worked for the Bertelsmann Group since 2000, first as Chief Financial Officer for RTL Group, Luxembourg (from 2003 also head of the Corporate Center), and since January 2006 as CFO and Head of the Corporate Center at Bertelsmann AG in Gütersloh, and Head of Bertelsmann Music Group until 2008. Rabe has served as Chairman & CEO of Bertelsmann SE & Co. KGaA since January 2012. 71 “Without freedom, no good ideas can arise. And without good ideas, there is no good content” Thomas Rabe, Chairman and CEO of Bertelsmann The history of Bertelsmann is an interplay of continuity and change. After World War II, Reinhard Mohn used the success of the “Lesering” (Reading Circle) to lay the foundations for Bertelsmann’s gradual expansion into many new lines of business – from books to music, magazines and television – in the decades that followed. Bertelsmann simultaneously began to offer many of its internal processes and services to external customers – and that’s how our service businesses developed, which are now subsumed under Arvato. And the group’s expansion abroad ...? ... was mainly associated with the expansion into new lines of business. Reinhard Mohn’s first international venture was in 1962 with Spain’s “Circulo de Lectores.” The fact that we can draw on more than half a century of experience abroad is an immense advantage in the age of globalization. How so? The media business is a local business in many ways. Although there will always be the occasional global bestseller – like the “Fifty Shades” trilogy in 2012 – a TV format that works in Germany is not automatically going to be a success in France, the U.K., or China. Local management teams who best understand the realities of “their” markets and the needs of “their” customers, are therefore a key to the success of our business. So this is an aspect of the continuity you mentioned just now? Strictly speaking, it’s literally a part of our corporate culture. As early as the 1950s, Reinhard Mohn thought about how a company should be set up to best deal with growth and increasing complexity. In addition to leadership through partnership, the delegation of responsibility was particularly important to him. This is why executives at Bertelsmann enjoy a high degree of entrepreneurial freedom. I’m firmly convinced that in an industry that thrives on creativity and ideas, this is the only way it can work. Incidentally, this principle applies to our authors, journalists, and artists, as well as our entrepreneurs. It is the basic precondition for a diverse and pluralistic media offering. In the digital age, creativity and new ideas are born not only within large corporations, but also on YouTube, blogs, and through self-publishing. What role do media companies still play in the face of these changes? I am positive that the media industry will continue to play a big role in entertainment and information. Thanks to digitization, content selection has never been as diverse or readily available– and competitive – as it is today. But let’s stick to the example of “Fifty Shades.” Its great success has underscored that to turn a good book into a bestseller requires experienced editorial support, wide-ranging marketing expertise, extensive distribution capabilities, unwavering financial commitment, and many other skills and resources. These functions continue to be essential for success in the digital age, and no one can deliver them as masterfully as a “classic” media company. focused too much on Europe, traditional media markets, and sometimes on structurally declining businesses. Second, we see that our business environment is changing faster than ever, driven by megatrends such as digitization, or the growing global demand for education and outsourcing. We want to take advantage of the opportunities that arise from this for us. What would such a transformation look like? Where do you see still the biggest challenges for your company? First, it is a medium-term process – we’re talking about a timeline of about five to ten years. During this time we will focus on four strategic thrusts: strengthening our core, digital transformation, the development of growth platforms, and regional growth in the emerging economies of China, India, and Brazil. We can build on strong foundations, as we have access to premium content and services, and therefore to a valuable commodity for the digital world. Our strategy is based on two main goals: First, we are working to improve our growth profile. Until now, we have How will you ensure that this commodity doesn’t fall by the wayside during your transformation? Creative content and quality services will continue to be the core of our value creation. We will invest as much as we can in their curation and production, and campaign for the protection of intellectual property. But above all, we want to create a culture within the company that allows our colleagues to nurture this creative capital of Bertelsmann: by linking the resources of a global media and services group with the benefits of creative and entrepreneurial autonomy and freedom. Without freedom, no good ideas can arise. And without good ideas, there is no good content. As CEO do you ever have an opportunity to engage with this content yourself? Fortunately, yes! Because many of the musicians and authors who are under contract at BMG and Random House, are among my favorites, like Coldplay, Kings of Leon, and Jonathan Franzen. 2 72 Bertelsmann 73 Tradition and Future What are the roots of today’s global corporation? How many employees worldwide work for what lines of business? What are their respective revenues? And how many people use the company’s products and services every day? B ertelsmann stands for more than 175 years of entrepreneurship. The roots of the global group date back to the year 1835, when Carl Bertelsmann, a Gütersloh printer and bookbinder, founded C. Bertelsmann Verlag. Five generations later, Reinhard Mohn, who died in 2009, brought his foresight and business prowess to turning it into a company that now ranks among the top international media houses: with the 1958 founding of the Ariola music label, the 1969 participation in Gruner + Jahr, the 1984 acquisition of a stake in the TV station RTL, and the 1998 purchase of Random House. Doing business as Bertelsmann SE & Co. KGaA, Bertelsmann is a leading international media and services company with more than 100,000 employees, that offers media content and operates production and services businesses in about 50 countries around the world. In the 2012 business year, the company generated revenues of 16.1 billion euros and Group profit of 619 million euros. Bertelsmann has five divisions: – RTL Group with 53 television channels and 28 radio stations in nine countries, and nearly 400 self-produced TV formats worldwide, – Random House with 200 editorially independent book publishers in 15 countries, and 10,000 new releases and 400 million books, audiobooks and e-books sold per year, – Gruner + Jahr, with over 500 magazines and digital offerings in more than 30 countries, – Arvato, an international provider of integrated, bespoke service solutions along the entire value chain, and – Be Printers, which bundles the Group’s gravure activities in Germany, the U.K. and Southern Europe, and the offset printers in Southern Europe, the U.S. and Colombia. Reinhard and Liz Mohn “We must find the courage to define new goals!” Reinhard Mohn So Bertelsmann comprises one of Europe’s largest magazine and newspaper publishers as well as the world’s largest trade book publishing group. Bertelsmann’s revenue sources are widely diversified both in terms of geography and business segments. They lie in the sale of products and goods, advertising and ads, services, rights and licenses. The Group’s geographic core source markets are Western Europe – especially Germany, France, Great Britain, Spain – and the United States. Each day, its products reach millions of people of different ages and from across all social strata. The goal: to shape the future of media and services, in more than 50 countries. Then as now – with entrepreneurial spirit and creativity. 2 Every day … … 1.3 million people all over the world buy Random House books, audiobooks and e-books. … 166 million customers in Germany alone come into contact with services provided by Arvato. … an RTL Group TV or radio program is switched on 145 million times. … readers in over 30 countries can choose among 500 different media offerings. More than 100,000 employees worldwide Revenues of 16.1 billion euros 11,931 employees Revenues 6.00 billion* *in euros in 2012 5,712 employees Revenues 2.14 billion 11,585 employees Revenues 2.22 billion 63,818 employees Revenues 4.45 billion 6,380 employees Revenues 1.17 billion 74 Bertelsmann Publishing credits More information Publisher Bertelsmann SE & Co. KGaA Corporate Communications Carl-Bertelsmann-Strasse 270 D-33311 Gütersloh You will find more glimpses of the multifaceted world of Bertelsmann products and services on a variety of online offerings, including the Bertelsmann website, the “Experience Bertelsmann!” app, the Annual Report, and the “Create Your Own Career” career portal, as well as on Facebook, Twitter and YouTube Responsible: Karin Schlautmann, Executive Vice President Corporate Communications Project management Ulrich Lünstroth Editorial Tanja Breukelchen (editing and coordination), Johanna Gerstner (translation), Thomas Röbke (editing, final editing), Sira Schmidt, Katja Steiner (English proofreading), Johannes Taubert (text editor), Lara Wagner (translation, English proofreading), Art direction and design Dirk Bartos, BartosKersten Printmediendesign, Hamburg History Tanja Breukelchen, Anna Butterbrod, Jan Drees, Andrea Freund, Katja Guttmann, Steffi Kammerer, Thomas Röbke, Olaf Tarmas Bertelsmann website Bertelsmann Annual Report The Bertelsmann website offers a comprehensive and evocative presentation of the media group – its structures, divisions, products, and services. The site is also a good destination for those who want to learn about the latest Bertelsmann-related business transactions, news, facts and figures. → The report provides a clear overview of the 2012 financial year. In addition to the management, Bertelsmann presents a retrospective of the year’s highlights from the various divisions and the consolidated financial statements. Each division’s financial and assets position is also shown. The report is available in printed form and as a free app. → www.bertelsmann.de www.bertelsmann.de/Presse/ Geschäftsberichte.html Photographers Jürgen Frank, Odile Hain, Bernd Jonkmanns, Enno Kapitza, Sebastian Pfütze, Arne Weychardt Lithography 4mat media, Hamburg Print MohnMedia, Gütersloh Photo credits Cover: RTL Aktuell, Getty, J. Frank, A. Weychardt, B. Jonkmanns, S. Pfütze, O. Hain, E. Kapitza. Page 4/5: RTL Aktuell, InterTopics, J. Frank, A. Weychardt, B. Jonkmanns, S. Pfütze, O. Hain, E. Kapitza. Page 6, 12: RTL Aktuell. Page 14: Picture Press. Page 16: InterTopics. Page 17: Corbis, Getty. Page 18/19: A-way, ddp, DeFodi.de, GnoniPress, Studio X, M6, Cecilie Rogue/M6. Page 20: Marie Etchegoyen/M6, RTL/Stephan Pick. Page 21: RTL. Page 29: Interfoto, ddp (2). Page 30: ddp, Face-to-face, Look, Getty, Laif, Michael Schwerberger. Page 58: BMG, AP, mauritius-images, Ullstein Bild, Sony Music, billa-cakes.blogspot.com. Page 60: Fotolia (1). Page 62: Private (5). Page 67: Fotolia (1). Page 68/69: Bertelsmann (6), RTL (1). Page 70/71: FAZ/Daniel Pilar. Page 72: Bertelsmann Stiftung Experience Bertelsmann! Create Your Own Career An attractive, entertaining presentation of the full spectrum of Bertelsmann’s creative products and services. A colorful bouquet of reading samples, live radio streams, and videos from the media group, along with portraits of Bertelsmann employees – available online and as an app. → As a global media company with more than 100,000 employees, Bertelsmann is a top employer in Germany and internationally. The “Create Your Own Career” portal features the latest job openings, events and news related to work and careers at Bertelsmann. → www.bertelsmann-erleben.de www.createyourowncareer.de Social Networks As a global player, Bertelsmann also has a presence on the social networks. Entertaining information about the Group can be found on Facebook and YouTube, for instance, while the Twitter channel “bertelsmann_com” lets users stay abreast of the news with short message updates. → www.facebook.com/Bertelsmann www.twitter.com/bertelsmann_com www.youtube.com/bertelsmann Bertelsmann SE & Co. KGaA Carl-Bertelsmann-Strasse 270 D-33311 Gütersloh www.bertelsmann.de