RTÉ denies online content has an unfair advantage

RTÉ executives have dismissed as “unfair” accusations that the broadcaster’s online content represents improper competition to the newspaper industry.

The national broadcaster’s chief financial officer, Conor Hayes, told the Oireachtas Joint Committee on Communications, yesterday, that the station was “fully transparent and legally compliant in all its online activities”.

Last month the committee had heard from the National Newspapers of Ireland (NNI) that RTÉ’s website did not match its public service remit under the Broadcasting Act 2009, as it included advertising on the site and operated with an unfair advantage due to being promoted on station programmes.

NNI coordinating director Frank Cullen had asked the committee to consider the need to limit the advertising revenue that RTÉ gets from its online services and end the broadcaster’s ability to use its licence fee to subsidise commercial activities.

Mr Hayes said the lobbying by the NNI against RTÉ’s online activity was “wrong on the key issues and unfair”. He added that “contrary to what has been suggested by NNI, RTÉ is not a dominant player in the online revenue and advertising market in Ireland. In fact, of a reported total Irish online advertising spend of €97 million in 2009, as estimated in the IAB Adspend Study of April 2010, RTÉ’s share was just €2.5m, or less than 3% of the market.”

He said that contrary to the NNI view the major challenge to both RTÉ and the newspapers in the online market is the presence of Google, Facebook, Yahoo and newly established media distributors such as Sky and UPC.

“The Irish online advertising market is tough, competitive and is populated with very strong global competitors,” said Mr Hayes.

This led Independent Senator Joe O’Toole to question was there anyway in which online news providers could be stopped scouring news from other companies’ websites.

The RTÉ executives also stated that licence fee funding is not used in the operation of RTÉ’s online service. However, where news and other content is provided through the station’s website this has already been paid for through licence fees and RTÉ could not seek to charge the public again for this service, they said.

Mr Hayes said RTÉ was only observing European policy and Irish broadcasting law by ensuring that all content produced is available to the public on all media platforms.

Mr Hayes added: “RTÉ pursues commercial activities online and does so in a fair and transparent manner that complies with all relevant codes and practices. RTÉ.ie does not use TV licence fee money.”