The Danish government has been forced to give a DKK500 million (€67m) loan to the quasi commercial network TV2.
The broadcaster is suffering from a combination of rapid expansion and poor programming coupled with the poor advertising market. Much of the blame is being laid at the door of former CEO Per Mikael Jensen who left last November to join the freesheet group Metro International. However, Jensen’s successor Merete Eldrup is refusing to apportion blame and has simply acknowledged that the broadcaster has a problem.
In April Eldrup launched a DKK 200m austerity programme, including 137 job losses, after being refused financial help from the country’s banks. As the channel’s ultimate owners the government was left with no alternative than to make up the shortfall itself.
Unlike public broadcaster Danmarks Radio, which receives money from the licence fee, TV2 has to find its own way in the commercial market, while still having a number of public service obligations. TV2 runs a suite of digital only channels; the youth skewing TV2 Zulu; TV2 Charlie for older audiences, TV2 News; TV2 Sport, a joint venture with pay-TV operator Viasat; and the online on demand channel TV2 Sputnik. While the rapid introduction of the digital channels has contributed to the cash crisis both the news and sports channels are already close to profitability.
