RTÉ proposes hike in TV licence to fund services

A hike in the TV licence fee to fund enhanced services is one of the options proposed by RTÉ in its new five-year strategy, published yesterday.

Having last month posted an annual deficit of €65m for 2012, and against a backdrop of reduced commercial funding due to loss of audience share, the public service broadcaster warned that, without increased public funding, it would “struggle to support key public service activities like news and current affairs, radio drama, regional programming, RTÉ Lyric FM, children and young people’s programming, and Ireland’s national orchestras”.

RTÉ said the TV licence of €160 is “significantly below the European average”. The cost of a TV licence in the UK is €170, while in France the cost is €131.

The TV licence fee has not increased since 2008 which effectively meant RTÉ’s public funding had “decreased in recent years and will continue to erode due to inflation”, RTÉ said.

To add to its woes, the Irish advertising market shrank by over 35% from 2008 to 2011. A combination of low licence fee and small population created “a very high dependency on commercial income” which impeded RTÉ’s ability “to plan for the evolving needs of its audiences”, RTÉ said.

While its income was shrinking, RTÉ had taken steps to ensure that by 2013, its cost base would be 30% lower than five years ago. By 2012, it had reduced its cost base by €100m since 2008. It had reduced staffing levels by 20% and had implemented substantial pay cuts.

Going forward, more funds were needed and these could be achieved either by increased public funding or by “assuming existing levels of public funding are at least increased for inflation”.

With additional resources, RTÉ said, it would deliver more drama, building on the success of TV dramas such as Love/Hate with a focus on its export potential; more animation, again with a view to export; more educational programmes, more comedy, more news bulletins, and more investigative journalism.

The broadcaster also hopes to develop a number of complementary services, including a new TV service, using content from RTÉ One e and RTÉ Two, designed for Britain-based Irish emigrants, broadcast via satellite and cable. It also hoped to develop internet TV channels in the areas of arts and culture, comedy, sport, life and style, young adults, senior school, and business.

Communications Minister Pat Rabbitte is currently looking at replacing the licence fee with a broadcasting charge applicable to all households to cover all viewing platforms including laptops and tablets.