consideration - assets.gov.ie

New RTÉ Service Proposals

Results of Minister’s Analysis and

Consideration

Date: 23rd

February 2011

Roinn Cumarsáide, Fuinnimh agus Acmhainní Nádúrtha

Department of Communications, Energy and Natural Resources

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Table of Contents

1 Minister’s Decision ............................................................................................... 3

2 Introduction ......................................................................................................... 12

3 Summary of the BAI Sectoral Impact Assessment ............................................ 14

4 Summary of Public Consultation ....................................................................... 16

5 RTÉ Summary Response to the Public Value Review ....................................... 21

6 Summary of the BAI response to the Public Value Review .............................. 30

Annex 1 - The current relevance of teletext services ................................................. 32

Annex 2 - Availability of Documentation provided to the Minister in response to the

Consultations. .............................................................................................................. 34

Annex 3 Summary Table Public Value Consultation Results ................................... 35

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1 Minister’s Decision

RTÉ, one of Ireland’s two public service broadcasting corporations, has sought the

consent of the Minister for Communications, Energy and Natural Resources to

introduce new RTÉ digital TV channels and related services. In particular, RTÉ

wishes to optimise the development of its new national digital 'free to air' network

(Saorview) by using some of the space on this network for new RTÉ TV services.

Section 103 of the Broadcasting Act 2009 provides the Minister for Communications,

Energy and Natural Resources with responsibility to consider requests by RTÉ for

new channels and services and to make a determination on whether to consent to these

channels or services. This requirement is in line with the 2009 European Commission

Communication on Public Service Broadcasting1.

The proposed channels and services are described in the RTÉ document, “Description

of Proposed Additional RTÉ Channels and Services”, Final 4th

November 2010 and

are called:

RTÉ Two HD Select, (working title)

RTÉ News Now,

RTÉjr,

RTÉ Plus (working title) and

RTÉ Aertel Digital.

The Minister has assessed these channels and services, taking account of the

following:

1. Results of the public consultation on the public value2 of the RTÉ proposals;

2. Results of the consultation with BAI on the public value of the RTÉ proposals;

3. Results of the consultation with RTÉ on the RTÉ proposals;

1Communication from the Commission on the application of State aid rules to public service broadcasting, (2009/C 257/01)

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4. Results of the sectoral impact3 assessment conducted by the BAI;

In addition, the Minister has also considered the results of the B&A survey4 on TV

viewing habits in Ireland;

Based on these deliberations the Minister has decided to consent to the following

channels and services, subject to the conditions set out in Section 1.1.

RTÉ Aertel Digital,

RTÉ Two HD Select, (working title)

RTÉ News Now,

RTÉjr, and

RTÉ Plus (working title) Phase 1 only.

RTÉ Aertel Digital

RTÉ currently operates an analogue teletext service. The proposed RTÉ Aertel

Digital service uses digital technology to upgrade and enhance the existing RTÉ

teletext service.

The sectoral impact of this channel was judged low by the BAI. In addition, the

channel is considered to be of public value, in particular for those who have no access

to the internet.

While a number of respondents to the consultation argued that teletext was outdated

and had been overtaken by the internet, in the context of terrestrial television, the

channel is still considered important as it provides for social inclusion of all television

viewers. The continuing relevance of the channel is further highlighted in the B&A

2 The Public value in this context requires consideration of the matters detailed in S 103(8) of the

Broadcasting Act 2009 3 Issues to be considered in determining the sectoral impact are defined in S 100(2) of the broadcasting

Act 2009 4B&A Report on the Current Television Viewing Mechanisms in Ireland, December 2010.

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survey which indicated that almost 70% of terrestrial only TV households in Ireland

do not have internet access.

RTÉ Two HD Select

High Definition (HD) channels provide better quality pictures than Standard

Definition (SD) TV. In promulgating the relevant provisions of the Broadcasting Act

2009, the Minister was aware that an upgrade to HD was an essential requirement for

national broadcasters and provided for an additional multiplex to be made available to

RTÉ to ensure adequate capacity for the upgrade and carriage of the terrestrial TV

channels in HD- RTÉ One, RTÉ Two, TG4 and, subject to the provisions of section

130(10), TV3.

Further, the Minister is aware that the development of HD channels by each of the

broadcasters requires financial investment and may take several years to develop. The

proposed channel, RTÉ Two HD Select, provides an opportunity for the introduction

of a service offering some HD and better quality SD programmes now. This is likely

to have a positive public value in the short term, particularly, as the availability of

more HD programmes and the take up of HD televisions in Ireland grows. The HD

channel will also provide the opportunity to gain technical experience and expertise in

a technology which is new to Irish broadcasting.

The proposed HD channel requires about 2.5 times as much space as a standard

definition channel. In this regard and taking account of the provisions of section

130(1) (a) of the Broadcasting Act 2009, the Minister is of the view that it is

important to balance the demand for space for additional standard definition channels

against the benefit of providing the HD Select channel in the short term and, in

particular, until further capacity is available through the provision of the second RTÉ

multiplex (see Section 1.1).

Taking account of the results of the public value consultations, the sectoral impact

assessment and the availability of capacity, the Minister proposes to consent to the

RTÉ Two HD Select channel until RTÉ develops a full HD offering subject to the

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conditions set out in Section 1.1. After 2013, the channel is expected to be a full HD

channel.

RTÉjr

In Phase 1, RTÉjr loops the three hours of RTÉ Two programming aimed at under 6

year olds, from 1100hrs to 1900hrs Monday to Friday. In Phase 2, RTÉ plans the

creation of a unique looped schedule for this service running from 0700hrs to 1900hrs

which will enable it to broaden the service to weekends. RTÉ has clearly stated that

this channel will not carry advertising in either Phase.

This, along with RTÉ News Now was considered by the BAI to be one of the core

new public service channels. The sectoral impact of this channel was judged low by

the BAI.

In consideration of the consultations on the public value of the RTÉ proposal, this

channel was considered to be of public value.

The Minister considers that the public value of this channel could be further enhanced

were RTÉ to take on board the proposals raised in the public consultation including:

1. Providing Irish language programming;

2. Providing more original content and less looping of programming,

3. Liaising with TG4 to enhance the overall content offering for younger TV

viewers.

In this regard, the Minister considers that these proposals should be taken on board by

RTÉ in developing the Phase 2 offering.

The Minister understands that RTÉ will not carry advertising on this channel and

considers that this plays a vital part in enhancing the value of this channel.

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RTÉ News Now

In Phase 1, RTÉ News Now is planned to replicate the content of the existing online

news service in digital television format. This includes daily RTÉ News bulletins,

weather and RTÉ Current Affairs programmes. The channel will also include Dáil,

Seanad and Oireachtas Committee proceedings, extended Dáil coverage on special

news days (e.g. Budget days), as well as available world feeds, and special news

events. Phase 2 will see the provision of more live headline news bulletins and

provision of business news, more new content and Irish language news bulletins.

Along with RTÉjr, the BAI considers that this channel represents one of the core new

public service channels. The sectoral impact of this channel was judged low by the

BAI, with some impact on the Sky News service and, in Phase 2, there may be some

impact on newspapers. The BAI made some proposals to mitigate against any

potential impacts, by setting some limits on the budget for the service and to the

linking of RTÉ news stories to third party news providers.

The provision of outward links from the RTÉ News Now site to third party news

providers, such as newspapers, covering the same news story would help to deliver

traffic to these sites, mitigating the market impact of the RTÉ News Now online

service, and encourage plurality of news consumption. The Minister considers that

this development should be introduced as part of the enhancements to the service

envisaged in Phase 2.

In relation to the impact on Sky News, the BAI is of the view that the UK-based Sky

News serves a large international market, of which the Irish market represents a very

small proportion and, as such, any impact by RTÉ News Now on this service would

be very low.

As a means of mitigating the sectoral impact on newspapers, in particular, the

Minister also considers that the channel should not be permitted to carry advertising.

The results of the public value consultations indicate that the channel is considered to

be of public value. In particular, the channel provides extended coverage of Irish as

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well as international news and also provides additional coverage of Irish political

proceedings. The Minister considers that the public value of this channel could be

further enhanced were RTÉ to take on board the proposals raised in the consultation

process including:

1. Modifying the format for easier viewing;

2. Providing subtitling and foreign language news bulletins;

3. Providing a forum for debate on current affairs;

4. Providing more original content;

5. Increasing coverage of the Oireachtas, Seanad and permitting the channel to

be used to increase the level of current affairs programming;

The Minister understands that enhancements will be made in Phase 2 of the

development of this channel and, as part of the approval, the Minister requires RTÉ to

review Phase 2 on foot of the suggestions set out in the public consultation to further

enhance the channel.

RTÉ Plus

The RTÉ Plus channel is planned to develop in two phases. Phase 1 of the RTÉ Plus

channel provides for a repeat of RTÉ prime time TV programming from 1900hrs to

0200hrs. RTÉ’s proposals for the development of this channel in Phase 2 provide for

RTÉ to exploit its commercial opportunities by broadcasting additional sports and

acquired programming and also repeating quality Irish programming.

The RTÉ Plus channel received mixed responses both in terms of its sectoral impact

and in terms of the responses received to the public value consultation. In relation to

the sectoral impact, it was considered that the Phase 1 proposal would have moderate

impact but the BAI was concerned that RTÉ’s Phase 2 plans for this channel had the

potential to provide a competitive advantage to RTÉ. The BAI also highlighted that

this impact was difficult to assess given the level of detail provided.

In relation to the public consultation process, opinion was divided on this channel.

Whilst some public value is expected to arise from this channel, this is expected to be

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low and the Phase 1 offering is expected to be overtaken by technology, the RTÉ

Player and by personal video recorders, in time.

In considering the development of this channel, the Minister has considered the

arguments put forward in both the sectoral impact assessment and in the consultations

on the public value.

The Minister consents to Phase 1 of the RTÉ Plus channel for a period of 4 years.

The Minister has decided not to give his consent for Phase 2 of the RTÉ Plus channel

as it is currently being proposed by RTÉ.

Some of the consideration for not consenting to Phase 2 is detailed below:

The BAI considered that the information provided on the Phase 2 development

of the channel was insufficient to determine the sectoral impact of the channel on

the broadcasting sector in Ireland. In addition, this lack of adequate information

on the future texture of the channel also precluded the Authority from making a

determination on its public value potential;

The evolution from Phase 1 to Phase 2 has the potential to provide for the

development of a completely separate and distinct channel;

The BAI was concerned that, in the event of the channel developing in a

comprehensive way, it would lead to the development of a vigorously competitive

channel, with an over-concentration on acquired programming, and with the

potential to have a material direct sectoral impact on the viability of other national

broadcasters.

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1.1 Conditions under which Ministerial Consent is granted

Conditions attaching to Specific Channels

1. RTÉ Two HD Select channel is required to be carried on the second multiplex;

2. The knowledge gained from technical trialling of the HD channel will be shared

with other broadcasters;

3. RTÉ should aim to provide for full HD versions of RTÉ One and RTÉ Two as

soon as practicable and by mid 2013 at the latest;

4. The RTÉjr/RTÉ Plus channel shall be carried on the first multiplex until 1

September 2011 and from 1 September 2011 shall be transferred to the second

multiplex;

5. No advertising is permitted on the RTÉjr or RTÉ News Now channel;

6. In respect of RTÉjr and RTÉ News Now, RTÉ shall review Phase 2 of these

channel proposals on foot of the suggestions set out in the public consultation in

order to further enhance the public value of the channels.

7. RTÉ Plus: Phase 1 only is approved and for a period of 4 years only until

February 2015.

General

1. Investment (comprising set up costs, operating costs (excluding broadcast charges

and depreciation) and any other expenditure directly attributable to these

channels) is limited to no greater than €8.3m over 5 years.

2. RTÉ must act so as to ensure the new services and channels are made available on

all platforms as soon as practicable in accordance with the “must offer”/“must

carry” obligations set out in the Broadcasting Act 2009;

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3. RTÉ must ensure that the new services and channels (and the content provided

thereon) are provided in compliance with RTÉ’s obligations under the

Broadcasting Act 2009.

4. RTÉ must ensure that the new services and channels comply with all applicable

accessibility rules and that, subtitling audio-descriptions services etc. are

provided, regardless of the platform on which they are carried;

5. Because the RTÉ multiplexes are capable of carrying a large number of RTÉ and

non-RTÉ channels, the Minister requires that the numbering of channels shall be

designated on the basis of a set of principles and criteria to be developed by the

Content Working Group of the Digital Switch-over Steering Group established by

his Department and that such principles and criteria shall be subject to the

approval of his Department in consultation with the BAI. In particular, these shall

include the principles that priority in numbering is accorded to the four national

‘free-to-air’ television channels (i.e. RTÉ One, RTÉ Two, TV3 and TG4); and that

non-RTÉ services shall not be unfairly discriminated against.

6. All the approved services and channels shall be reviewed by RTÉ within 4 years

(i.e. no later than February 2015) and a report on these reviews shall be submitted

to the Minister by June 2015 at the latest. This review shall, interalia, study the

continuing need for these services and channels in light of technology and societal

developments and the potential for enhancing the public service value of these

services and channels.

7. Requests for substantial modifications to the approved services and channels will

require the consent of the Minister under section 103 of the Broadcasting Act

2009.

8. RTÉ is required to submit a report to the Minister and the BAI on an annual basis,

(by end February each year) detailing the development of the services and

channels (e.g. viewership, service and channel enhancements) and how they are

operating in accordance with the conditions set out above.

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2 Introduction

RTÉNL is currently building a new national digital TV network to replace its

analogue network which is due to close at the end of 2012. The new network will

enable the existing national TV channels – RTÉ One, RTÉ Two, TG4 and TV3 - to be

made available on a ‘free to air’ digital network. The RTÉ digital TV network, called

Saorview, launched on a trial basis on 29th October 2010 to 90% of the population.

This network is currently carrying the four national TV channels, 3e and, on a test

basis, RTÉ News Now.

RTÉ plans to develop the network over both a terrestrial (98%) and a satellite

platform (100%) to cover 100% of the country by mid 2011 at a cost of €70m.

The Saorview network provides an opportunity for RTÉ to offer more content and

services than was possible with the existing analogue network5. As a result, RTÉ now

proposes to introduce new channels, RTÉ Two HD Select, RTÉ News Now, RTÉjr,

RTÉ Plus and RTÉ Aertel Digital and has sought the consent of the Minister for

Communications, Energy and Natural Resources, as required under legislation.

In relation to the RTÉ Two HD Select channel, this channel is planned to replace RTÉ

Two and to provide HD services in advance of the development of full RTÉ HD

services. RTÉ has indicated that in order to view the higher quality video that HD

delivers, TV viewers will need a Saorview set top box and HD TV set or a Saorview

HD TV set. Those who use a Saorview set top box connected to a Standard Definition

(SD) TV sets will display the RTÉ Two HD Select service as high quality SD video.

RTÉ plans to offer the new channels ‘free-to-air’ on the national Saorview network.

After an initial trial period, RTÉ has indicated that they will make these services

available to other digital television network providers in accordance with section 77

5 RTÉ ’s compression technology choice, MPEG 4, means that about 8-10 standard definition TV channels or 3-4 HD

TV channels can be accommodated on a single multiplex. In this way it is expected that the two multiplexes which can be

licensed to RTÉ could eventually carry HD versions of the existing 4 national TV channels and an additional 8-10 standard

definition TV channels.

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of the Broadcasting Act 2009 which deals with ‘must carry’ and ‘must offer’

obligations.

Section 103 of the Broadcasting Act 2009 provides the Minister for Communications,

Energy and Natural Resources with responsibility to consider requests by RTÉ or

TG4 for new channels and services and to make a determination on whether to

consent to these channels. As part of this process the Minister is required to:

1. consult with the broadcaster concerned and other persons, as he sees fit;

2. consult with the Broadcasting Authority of Ireland (BAI) as to the sectoral impact

of the proposals;

3. consider the public value of the proposals; and

4. publish a statement outlining the consultations that have taken place and

indicating a place at which any documents given to the Minister in the course of

the consultation may be inspected.

In order to inform the Minister’s decision on the public value of the proposals, the

Minister consulted with RTÉ, the BAI, and with industry and the general public

through the public consultation process. In addition, the Minister conducted research

into television viewing mechanisms in Ireland and this provided additional useful

information for the Minister’s consideration in this exercise.

In accordance with his powers under section 103(4) (b) of the Broadcasting Act 2009,

the Minister requested the Broadcasting Authority of Ireland (BAI) to conduct a

sectoral impact assessment. The aim of the sectoral impact assessment was to assess

the impact of the new proposals on the broadcasting sector in Ireland. This was

undertaken by the BAI in accordance with the provisions of section 100 of the Act.

This document summarises the results of the public value consultations and the

sectoral impact assessment of the RTÉ proposals and details the Minister’s response

on the RTÉ service proposals.

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3 Summary of the BAI Sectoral Impact Assessment

General

The BAI has informed the Department that the sectoral impact of the majority of the

services is likely to be low with no significant issues arising. The exception is the

RTÉ Plus channel where the Phase 2 development is a source of concern. The absence

of a comprehensive plan for the channel made it difficult for the BAI to make a full

determination on the sectoral impact but the BAI is concerned that, were this channel

to develop in a comprehensive way, it has the potential to negatively impact on the

sustained viability of TV3 and 3e.

In relation to the availability of the new services on other platforms, the BAI

considers that many of the benefits from the new channels derive from them being

widely available on other digital platforms. In this regard, RTÉ must provide its

plans, timetables and cost projections to provide full comfort on rollout and

implementation.

The BAI’s conclusion on the sectoral impact assessment of individual channels is

detailed below:

RTÉ HD Select

The BAI is broadly satisfied that the sectoral impact of RTÉ Two HD Select is likely

to be low.

RTÉ News Now

The BAI considers that the general sectoral impact of this service on the broadcasting

sector will be low but the direct impact on the Sky News service may be more

substantial. In addition, with regard to the newspaper sector, the BAI considers that

the RTÉ News Now channel, as currently envisaged, will have minimal impact. The

BAI does consider that the second phase of the service may have some adverse impact

on newspapers, however, they consider that this is not a reason to preclude its

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development. Rather, consideration may be given to setting some limits on the budget

for the service and to the linking of RTÉ news stories with third party news providers

as a means of lessening the impact.

RTÉJr

The BAI is broadly satisfied that the sectoral impact of RTÉjr is likely to be low.

RTÉ Plus

In relation to RTÉ Plus, the BAI is of the view that Phase 1 will lead to only moderate

movement from competitor channels but was concerned that it was unable to assess

the impact of Phase 2 because of the lack of definitive information provided. The

BAI considers that the Phase 2 service may turn out to be a completely new TV

channel with potential significant sectoral impact on TV3 and 3e but, in the absence

of information such as the target audience, scheduling commitments, budget, balance

of home produced and acquired content and a timetable for their implementation, the

BAI has been unable to fully assess the impact.

Further, the BAI advises that if the channel was to proceed as described then

safeguards would need to be put in place to limit the potential impact as follows:

A requirement that new content, Irish or acquired, have its first transmission on

RTÉ One or Two, with later transmission, after a specified time lag, on RTÉ Plus,

and

A limit to the percentage of acquired content shown within peak hours on RTÉ

Plus.

RTÉ Aertel Digital

The BAI is broadly satisfied that the sectoral impact of RTÉ Aertel Digital is likely to

be low.

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4 Summary of Public Consultation

There were twenty-nine responses to the public consultation including members of the

public, industry players and public bodies.

The public consultation highlighted a huge variety of opinions and ideas. Whilst, in

general, the new channels were considered to add some value as they provided more

content on the DTT service, the proposals were not considered to be of particularly

high quality and many respondents offered suggestions for improving the content.

Only six respondents did not see merit in the proposals. Two of these were industry

players who considered that the proposals could negatively impact on media

competition in Ireland; two considered that the money spent on such channels should

be given to TG4 to expand its children’s programmes and one organisation proposed

that space on the multiplex should be set aside for community TV.

Three respondents expressed general support for the proposal. Eleven respondents

proposed ways to improve the quality of the offerings, including enhancing the RTÉ

News Now channel by, interalia, offering foreign language news bulletins and

subtitling, improving the look of the news channel, offering extended Oireachtas

coverage. On RTÉjr, proposals for improvement included offering more Irish

language programming, offering more original programming and less repetition of

content. More general recommendations included offering HD services on all

channels, ensuring accessibility services are properly developed and proposing several

technical enhancements. Four industry respondents voiced concerns about potential

broader competition and state aid issues. A number of respondents, including three

pay TV operators, highlighted the importance of having the services available on all

platforms, from launch.

Of those who commented on specific channels, thirteen considered there was benefit

in the RTÉ News Now channel (some of these proposed modifications to enhance the

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benefits) whilst two did not see value in the channel. Nine considered that RTÉjr

could be of value whilst three did not support the channel.

On the RTÉ Aertel Digital channel, four saw some value in this, particularly for those

who did not have internet access, whilst three wondered if this type of service was

obsolete.

In relation to the RTÉ Two HD Select channel, most respondents who discussed HD

considered that HD should be available on all TV channels now and that HD could

not be considered a technology of the future. Five considered it was important to

have a HD channel. One respondent did not consider there was merit in the channel.

In relation to the RTÉ Plus channel, opinions were mixed. Four respondents

considered that the channel was useful whilst four considered the channel did not add

value.

Assessment of the consultation questions

The public consultation document was set out in the form of a series of specific

questions. The following is a synopsis of the responses received to each question:

1. Do you agree that these additional / enhanced services will provide further value

to the Irish public and additional support for the adoption of DTT in Ireland?

Please support your response.

On this issue, eight respondents considered there was some value to the channels

whilst two did not consider that the channels added value.

2. For each service, please indicate whether you consider the service assists RTÉ

in pursuing its public service objects as detailed in Section 114 of the

Broadcasting Act 2009 (Annex 1). Please provide reasons for your responses.

On this question, four respondents considered that the services assisted RTÉ in

pursuing its objects whilst a further six considered that at least one channel was of

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assistance and in this regard, RTÉjr, RTÉ News Now, RTÉ Plus and the RTÉ

Aertel Digital service were highlighted. One respondent did not consider any of

the channels assisted RTÉ in pursuing its objects.

3. The compatibility of the proposal with the Audiovisual Media Services Directive

and recommendations of the Council of Europe in respect of public service

broadcasting and in particular the extent to which the proposals address the

following; a reference point for all members of the public, offering universal

access, a factor for social cohesion and integration of all individuals, groups

and communities, a source of impartial and independent information and

comment, and an innovatory and varied content which complies with high

ethical and quality standards, a forum for pluralistic public discussion and a

means of promoting broader democratic participation of individuals and an

active contributor to European audiovisual creation and production and greater

appreciation and dissemination of the diversity of national and European

cultural heritage, providing for the discharge of the Public Services

Broadcasting remit via diverse platforms.

Whilst the proposals are compatible with the requirements of European Directives

and Recommendations on public service broadcasting, opinion was divided on the

extent to which the proposals addressed the specific points. It was highlighted that

the services would need to be made available on all platforms whilst the lack of

new content takes away from the proposals. Compatibility with state aid rules was

also questioned.

4. Do you consider that the costs and revenues associated with the proposal will

impact on existing public service provision and if so, how?

Most respondents who expressed a view considered that the cost of the proposals

would impact on other services but did not consider the information was sufficient

to respond in detail on this query.

5 How and to what extent do the new channels/services contribute to meeting the

democratic, cultural, linguistic, educational and social needs of Irish society, of

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individual groups within Irish society, and of Irish communities outside of the

island of Ireland;

Opinion was divided on this question with the slight majority of respondents

considering some benefit except in relation to linguistic and educational needs. On

this issue most respondents did not consider that the new channels provided any

useful contribution.

6. Your view on the extent to which the proposed channels/services will be

accessible by the public.

Seven respondents considered that the services will be generally accessible as long as

they are available on all platforms. However concerns were raised about the cost and

availability of the DTT receivers and about the need for an information campaign.

7. Your view on the extent to which the proposed services will reach underserved

audiences.

Three respondents considered that the services will reach underserved audiences. One

respondent considered they would reach underserved audiences to some extent whilst

one respondent considered the new services will not reach underserved audiences.

One respondent highlighted the need for accessibility services to ensure underserved

audiences are reached.

8. Do the new services help to raise the level of familiarity of the general public, or

of individual groups within Irish society, with new forms of services and

technologies? Please provide additional information to back up your response.

The services provide the potential for some benefit here in particular with the RTÉ

Aertel Digital service and increased technical quality. However, respondents

considered that the benefits could be enhanced.

9. Do you consider that the new services help contribute to media plurality? Why?

The response should make particular reference of the contribution of the proposal

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to the following aspects of media plurality; diversity of content, and Diversity of

ownership.

Several respondents considered the proposals added to media plurality. In addition

the proposals were considered to add to diversity of content/new channels. Most

respondents did not consider the proposals provided for media diversity of ownership

although on this issue one considered that the new proposals helped protect the future

of public service broadcasting against large commercial corporations.

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5 RTÉ Summary Response to the Public Value Review

In relation to the proposed channels, RTÉ has provided a Summary of the Public

Value of Proposed New RTÉ Services in its submission to the Department dated 29th

November 2010 and the following constitutes an extract from that document:

RTÉ Two HD Select

I. Fit with RTÉ Objectives

Sport is important for its role in the national conversation and in creating those shared

moments and events which bring people together. The national importance of sports

events to a country and culture is acknowledged in Irish and European legislation and

Sport is a cornerstone of the schedule on RTÉ Two. Some of the sports RTÉ is

proposing to broadcast in HD include major GAA matches from the Championship,

Euro 2012 soccer qualifiers, Autumn Rugby internationals, the Rugby World Cup,

Magners League and Champions’ League.

RTÉ Two HD Select will facilitate and incentivise the adoption of HD technology and

production among Irish independent production companies by creating an indigenous

market for content in HD.

II. Quality and distinctiveness

High Definition television represents a significant enhancement in picture and sound

quality over standard definition television and is the future of television in the home.

When a director has shot a feature film, a natural history series or a drama in HD it is

a disservice to the viewer to show it in standard definition. As more and more

programmes and series are filmed in HD, it will become virtually impossible to get

these series in standard definition. Failure to show RTÉ’s international programming

in HD will mean that RTÉ will have to pay for improved content but audiences will

not derive any benefit from the improvements and additional investments in

production.

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Even though viewers are happy to watch relatively low production value content

online (e.g. on You Tube), when it comes to Television, computer games and the

cinema, they have come to expect high production value HD content. The high level

of uptake of flat-screen TVs has also added to demand for higher quality pictures

which demonstrate the full benefits of investing in these more advanced devices.

It is important that Irish audiences can watch their national games and teams in the

highest possible quality. Furthermore, in the context of the number and strength of

foreign broadcasters operating in Ireland, it is important that the Irish voice be

protected. Irish audiences are entitled to hear Irish commentary, an Irish perspective

and get an Irish focus on international events. They should not be forced to choose

between coverage tailored for their needs and the functional quality of the picture.

III. Audience appeal and accessibility

RTÉ Two is the third most watched television channel in Ireland and sport plays a

major role in the channel’s success. Audience viewing data and audience research

both demonstrate the appeal of RTÉ Two’s sports coverage. The top sports

programmes in 2009, generated audiences ranging from over 600,000 to over a

million. Irish audiences choose RTÉ Sport for the quality of the coverage and the

Irish perspective; these very large audiences deserve the benefits that HD can provide.

IV. Wider societal and competitive impact

Over half a million Irish households (546,000) have a HD-Ready TV set, but the only

people who have access to HD content are Pay-TV subscribers. There are

approximately fifty HD channels available on the Sky platform and approximately ten

HD channels available via UPC. There are no Irish channels available in HD. By

law, RTÉ must encourage innovation and experimentation in broadcasting and HD is

a natural progression in quality and is becoming an audience expectation. RTÉ must

play its role in passing the benefits of the technological improvement that is HD on to

the Irish public.

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V. Value for Money

Much of RTÉ’s current live sport, acquired series and film are already available in

HD and the increased production costs are inevitably being passed on whether RTÉ

avails of the HD content or not.

RTÉJr

1. Fit with RTÉ Objectives

RTÉ has a responsibility to cater for all Irish audiences and sees fulfilling the needs of

Ireland’s youngest citizens as central to this remit. RTÉjr will be the first Irish

television service to cater solely for Irish toddlers and children. RTÉ has always been

strongly committed to creating quality Irish content for young people and

programming for young people has long been central to the RTÉ Two schedule.

2. Quality and distinctiveness

RTÉjr is a distinctive, Irish service. With RTÉjr, RTÉ has made a commitment that

children will never be more than 30 minutes from Irish production, stories and output.

RTÉ is the foremost creator and commissioner of content for young people in Ireland

and brings many years of experience and audience understanding to this service. RTÉ

Young People’s Programming makes and commissions content specifically for Irish

children that reflects their world, accents, language, stories and culture.

3. Audience appeal and accessibility

Currently, RTÉ Two broadcasts programming for young children from 0900 to

approximately 1430 and caters for older audiences (aged 7 and up) from 1430

onwards. TG4’s Cúla 4 na nÓg broadcasts programming for the very young from

0730 to 1000 and for older children from about 1430 to 1700 and TV3 does not cater

for this audience at all. RTÉ’s audience research shows young children are available

to view television outside of the hours where programming is currently scheduled for

them. The RTÉjr service, which will ultimately run from 0700 to 1900, will

guarantee a safe and suitable space for young people to learn and to be entertained.

For the first time, RTÉ will be able to simultaneously broadcast relevant, bespoke

content to two very different cohorts of children (under 7s and over 7s) in the

afternoons when both groups are available to view.

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4. Wider societal and competitive impact

The RTÉjr service will be completely advertising free, providing a safe place for Irish

toddlers and parents to view without the intrusion of commercial messages and

influences. The RTÉjr brand will apply across all RTÉ’s services for the 0-6 age

group, on Television, on Radio and online to signal to parents the availability of

appropriate, quality public service broadcasting for younger audiences on these

media.

Currently, the only tailored channel offerings for the “Under 6s” available to Irish

children and parents are British or American, including Cbeebies, Cartoon Network

and a range of Nickelodeon and Disney offerings. Irish children and parents deserve a

relevant, indigenous service tailored to the needs of Irish children and reflecting our

culture and society.

5. Value for Money

Programming for very young children tends to be short in duration and often repeat

themes and content. Repetition facilitates learning and young audiences will watch

same the programmes over and over again. RTÉjr will use the model employed by

Cbeebies and loop content through the day. This means that suitable content is

available all day and RTÉ generates better value for money for its investment in

children’s programming.

RTÉ News Now


News and current affairs coverage is central to the remit of Public Service

Broadcasters and Irish broadcasting legislation specifically requires that RTÉ

“provides programmes of News and Current Affairs in the Irish and English

languages”. RTÉ has long been committed to the provision of high quality, balanced

and challenging news and current affairs, its mission states that RTÉ will “Inform the

Irish public by delivering the best comprehensive independent news service possible”.

RTÉ News Now contributes to the fulfilment of this remit.

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RTÉ News and Current Affairs put significant emphasis on the quality and integrity

of its output. This effort is endorsed by the high regard in which RTÉ News is held

by Irish audiences and the numbers who turn to RTÉ news sources for trusted

information and an Irish perspective on national and international events. In a recent

survey, over two thirds of adults said they used RTÉ as their main source of national

news and half of adults said RTÉ was their main source of international news; 79%

said that RTÉ news provided balanced coverage (Source: TNS-mrbi RTÉ Corporate

Reputation Survey 2009). The fact that not one complaint against RTÉ’s News and

Current Affairs content was upheld by the Broadcasting Complaints Commission in

2009 is further endorsement of the quality of RTÉ’s news output.


The wide audience appeal of RTÉ News programmes is evident from TAM data. In

2009, the main evening news bulletin at nine o’clock averaged 541,000 viewers; the

early evening news at six o’clock attracted 467,000 viewers. RTÉ’s award-winning

investigative journalism programme Prime Time Investigates had an average audience

of 522,000 during 2009 and its bi-weekly sister current affairs programme Prime

Time had an average audience of 450,000.


Currently, Irish television audiences do not have access to Irish television news

outside scheduled news bulletins on the Irish terrestrial channels. The only 24-hour

news channels available to Irish people are international services such as Sky News,

Al Jazeera, Bloomberg, CNBC, CNN, FRANCE24 etc.

It is often argued that audiences now use the internet to keep up with news during the

day; however, it must be borne in mind that many Irish households do not have the

means to access the internet. According to the AGB Nielsen Media Research

Establishment Survey (September 2010), 29% of Irish households (475,000) do not

have a computer. Although 62% have a broadband connection, this falls to 35-40%

among lower social class and farming households. Only 25% of Irish Terrestrial

households have broadband access, rising to 40% among Multi Terrestrial

households, which is still significantly lower than the national average.

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V. Value for Money

RTÉ News Now will allow audiences to view the latest RTÉ News bulletin on

television whenever they wish, thus maximising access to RTÉ’s News and Current

Affairs output. The content carried on RTÉ News Now has already been produced for

RTÉ Television and therefore does not carry any additional production costs. The

new content planned for the channel will be produced very cost-effectively by

generating efficiencies and utilisation of existing resources.

RTÉ Plus

1 Fit with RTÉ Objectives

RTÉ Plus will provide a viewer with the opportunity to catch-up on quality home

produced programming previously broadcast on RTÉ’s other channels. During the

initial phase, this will be a simple replication of the RTÉ One schedule with a one

hour delay. The RTÉ One schedule has a strong public service orientation and a

broad mix of genres in keeping with the breadth of its public service remit as defined

in primary legislation.

The RTÉ Plus schedule in Phase 2 will have an approximate ratio of 53:47 Irish to

acquired programming. Of the Irish content, the top genres would be Factual and

Documentary programmes (17%), Lifestyle (10%), Entertainment (9%) and Archive

(8%), Irish Film and Drama programming would make up about 9% also (all

percentages are approximate).

2 Quality and distinctiveness

Part of RTÉ’s mission is to “Provide distinctive programming and services of the

highest quality and ambition, with the emphasis on home production”. RTÉ Plus will

schedule the best of RTÉ’s available stock of programming, both home-produced and

acquired.

The quality of RTÉ’s home produced programming is evident from audience research

as well as from the very impressive audience ratings that RTÉ programmes achieve.

Furthermore, in 2009, RTÉ Television won 98 awards, of which 42 were

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international, this degree of international (and national) recognition of RTÉ’s

programming endorses the bears testament to RTÉ’s continued commitment to the

highest standards of production and innovation.

Despite the significant investment RTÉ makes in home-production, it is not possible

for an organisation of this scale to commission drama, which is very expensive, in the

quantity it would desire. On this basis, quality-home produced drama is

supplemented by high quality international productions to satisfy audience needs.

The resources available to organisations like the BBC and the large American

networks, dwarf the funding available to RTÉ, and the organisation simply cannot

compete in terms volume. Most PSBs worldwide broadcast American and UK

programming alongside their home production and audiences deserve free to air

access to the best the world has to offer, as well as indigenous content.

3 Audience appeal and accessibility

The RTÉ Plus service will provide underserved audiences (particularly those without

computers or broadband internet access) with the opportunity to view quality RTÉ

programming again, as well as scheduling some of RTÉ’s quality acquisitions in

higher profile slots thus making them more accessible. This will give these audiences

additional choice and value for their licence fee.

The schedules will have a broad audience appeal, in keeping with RTÉ’s remit to

serve all Irish audiences. Factual, Archive and Lifestyle programming will appeal to

older audiences aged 35+, while many quality acquired series will appeal to a younger

audiences (15-34) as well as the over 35s..

4 Wider societal and competitive impact

The catch-up nature of RTÉ Plus provides another chance for audiences to engage

with and enjoy the quality content RTÉ produces, commissions and acquires for its

main channels. Although internet catch-up services, such as the very successful RTÉ

Player, provide this facility to audiences with the equipment and ability to use them, a

sizeable proportion of Irish households cannot use Video on Demand services as they

don’t have home computers or access to broadband (this is discussed above in the

section on RTÉ News Now).

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5 Value for Money

RTÉ Plus offers the opportunity to maximise the potential of RTÉ’s sports rights and

broadcast matches and events to which RTÉ has the rights but not the channel

capacity. RTÉ currently uses RTÉ.ie to webcast events where there is overlap, e.g.

Olympic events, soccer World Cup quarter-finals etc. Broadcasting these events on

RTÉ Plus will allow audiences without broadband access to benefit from these

choices also.

RTÉ Plus also gives RTÉ the opportunity to generate additional value from its

significant investment in home-produced programming as well as from its rights to

high-profile acquired series. The scale of commissioning by RTÉ is discussed above.

In 2009, RTÉ commissioned 123 hours of Factual, 108 hours of Entertainment and 56

hours of Lifestyle programming and RTÉ Plus affords the audience another chance to

view blue-chip, documentary and factual programming which has been previously

broadcast on RTÉ One.

RTÉ Aertel Digital


Under the Broadcasting Act 2009, one of RTÉ’s objects is to establish and maintain a

Teletext service in connection with its objects, including its television, radio and

multiplex services.


RTÉ Aertel Digital is a significant improvement on the current analogue Teletext

service operated by RTÉ. It has a modern user interface, with better quality graphics,

and images, a wide range of fonts and colours and picture-in-picture video to enhance

the user experience. It is faster and allows much greater user control, for example

there is no waiting time for pages or sub-pages to scroll and it is much easier to

navigate directly to content.

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The digital Teletext service is aimed at a range of audiences, including: current users

of the analogue service, SAORVIEW users who don’t have internet access or are

unable to use internet services and people who have stopped using or have never used

the analogue service due to its functional inadequacies.

Trials with existing RTÉ Aertel (analogue) users were conducted during 2010; this

research found that users were greatly impressed with the improved digital service

and the findings also informed some minor changes and enhancements in the ongoing

product development process.


This service provides access to short-form, regularly updated information on a range

of subjects to users. It is of particular benefit to those underserved audiences who do

not have access to the internet (as discussed above) or who are less technologically

savvy.

V. Value for Money

RTÉ Aertel Digital will replace the existing analogue service. No additional editorial

staff is required for the digital service. Generating an Aertel version of a story which

is shorter and has a shorter headline is an existing workflow for RTÉ editorial staff.

The analogue information currently entered has been migrated to the digital service.

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6 Summary of the BAI response to the Public Value Review

DCENR summarises the BAI response as follows:

In general, the BAI considers that the proposals are broadly consistent with RTÉ’s

objectives and reflect the current range and diversity of its content. The BAI also

considers that the proposals are compatible with the relevant EU Directives and

guidelines and will help to deliver RTÉ’s public service remit via new channels and

platforms.

The BAI considers that RTÉ could be asked to provide firm commitments on the

character of all the proposed channels. These could include more complete outlines

of the channels, clearer scheduling intentions, the balance of home produced and

acquired content, and a timetable of their introduction and development. In addition,

RTÉ might be encouraged to review the implications for new investment in the

proposed channels for the value offered to audiences on the existing channels in

certain circumstances where future revenue is uncertain.

In relation to specific channels, the BAI concluded as follows:

RTÉ Two HD Select

The BAI considers that the HD channel will provide some public value for audiences.

In particular, it will improve the audience enjoyment of popular sports and other high

profile programming.

RTÉ News Now

Along with RTÉjr, the BAI considers that these two services could be described as the

core new public service channels. RTÉ News Now is at the heart of the public value

proposition. However, the BAI considers that the proposed channel could make for a

stronger service if it contained more original content, including live programming. To

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this end the BAI considers that, subject to funding constraints, RTÉ could be

requested to commit to more investment over time for new content on these channels.

RTÉJr

The BAI considers that RTÉjr could be described, along with RTÉ News Now, as the

core new public service channels. In particular, RTÉjr will provide better visibility

across digital platforms for programming for children of less than 6 years of age.

However the BAI considers that the proposed channel could make for a stronger

service if it contained more original content, including live programming. To this end

the BAI considers that, subject to funding constraints, RTÉ could be requested to

commit to more investment over time for new content on these channels.

RTÉ Plus

The BAI considers that the RTÉ Plus channel would have limited public value in

Phase 1 but recognises that there is a value in offering extra convenience for viewers.

There may be potential for greater public value in Phase 2 if RTÉ was to adopt a more

public service focus to scheduling. However, the lack of detailed information from

RTÉ on the future texture of the channel precluded the BAI from making a

determination in this regard.

RTÉ Aertel Digital

The BAI considers that the RTÉ Aertel Digital channel will provide some public

value for audiences. In particular, the new service will enable households with no

internet access to benefit from improved interactive news and information on their TV

screens.

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Annex 1 - The current relevance of teletext services

With a view to informing the Minister on how best to navigate towards analogue

switch off, Behaviour and Attitudes was requested to conduct a survey on TV viewing

mechanisms in Ireland. This survey represents an independent view of TV viewing

mechanisms in Ireland as of November 20106.

Some of the results of this analysis are particularly useful in informing the

determination of the public value of the RTÉ proposals.

In particular, the value of some of the channels (RTÉ Aertel Digital, RTÉ Plus) was

questioned by respondents to the public consultation on new RTÉ Services who

considered that they may be obsolete given the availability and take up of internet

services nationally.

As part of the survey, B&A assessed the level of internet penetration in terrestrial TV

households. The survey found that the take up of internet services amongst terrestrial

TV households was well below the national average (65% take up). In fact, the

survey found that almost 70% of Irish terrestrial only and about 55% of multi-

terrestrial TV households do not have internet access;

The survey also highlighted that:

1. 16% of TV homes (c.254k households) rely on terrestrial television. 10%

have access to the Irish TV channels (Irish terrestrial) only, with 6% having

access to the UK channels (multi-terrestrial) also.

2. In addition, about 32% of TV homes (511k) have an outdoor aerial of some

type highlighting that many more TV viewers use the terrestrial services on

secondary TV sets in the home.

3. Rural areas throughout the country are most reliant on terrestrial TV with over

two thirds of terrestrial TV households in rural areas.

6 Behaviour and Attitudes Report on TV viewing mechanisms in Ireland

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In this regard, the provision of teletext and other services is still of relevance to

terrestrial TV viewers as a valid and important source of information.

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Annex 2 - Availability of Documentation provided to the

Minister in response to the Consultations.

Issue Document Availability

Submissions to Public Consultation on New RTÉ Service Proposals

The submissions received have been amalgamated into a single document called “Submissions to Public Consultation on New RTÉ Service Proposals” Confidential material has been blanked out.

www.dcenr.gov.ie

Submissions to Public consultation

Individual submissions DCENR

BAI Sectoral Impact Assessment and Public Value Review

Response from BAI www.dcenr.gov.ie


Confidential Report “An Assessment of the sectoral impact of RTÉ ’s proposed channels and services”

DCENR - CONFIDENTIAL


Confidential Report “Guidance on the public value of RTÉ ’s proposed services”


Consultation with RTÉ on Public Value of new RTÉ Proposals

Non confidential response from RTÉ dated 15th November “Public Value Test Proposed RTÉ Channels and Services, DCENR request for Information 4th October 2010”

www.dcenr.gov.ie


Non confidential response from RTÉ dated 29th November confidential element not included

www.dcenr.gov.ie DCENR – Confidential


Confidential response from RTÉ relating to the financing of the channels


Results of B&A Survey on TV viewing Mechanisms in Ireland

Results of B&A Survey on TV viewing Mechanisms in Ireland

www.dcenr.gov.ie

http://www.dcenr.gov.ie/

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Annex 3 - Summary Table Public Value Consultation

Results

For reference purposes only, the table below summarises the responses to the

consultation questions as addressed to the BAI, RTÉ and to the general public.

Further details of the results of each consultation are in the following sections.

Summary of Consultation

Questions

BAI Public Consultation RTÉ

1. The added public value of the proposed services;

Each channel offers some public value. RTÉ Plus Phase 1 offers low value. Ultimately the lack of new content will limit the potential public value benefits.

Whilst most respondents indicated that the proposals added value, many considered that this value could be better and proposed ways to improve services.

N/A

2. The new channels and Impact on public service objectives;

The proposals are consistent with RTÉ objects, reflect the current range and diversity of content and will be available free to air to all households. However the lack of new content prevents the channels realising their full potential

Most respondents considered the proposals are consistent with RTÉ objects in particular the RTÉ News Now channel, RTÉjr and the RTÉ Aertel Digital service. However some respondents considered that the proposals could be improved and that they did not contribute to the development of the Irish language.

The proposals assist in meeting RTÉ's public service objectives in particular in respect of S 114 114(2)(a)-(c), S 114(3)(b), S 114(3)(c) and also in meeting its key strategic objectives.

3. The compatibility of the proposals with EU Directives and Recommendations in respect of public service broadcasting;

The proposals are compatible with the relevant EU Directives etc and will help to deliver RTÉ's public service remit via new channels and platforms. The news channel will contribute towards objectives of social cohesion and pluralistic discussion.

In general the proposals are compatible with the relevant EU Directives and largely address the specific issues raised. However on the specific criteria; the lack of new content takes away from the proposals. Another concern was that the services would need to be made available on all platforms. Compatibility with state aid rules was questioned.

The proposed services are fully compatible with Council Directives and the Recommendations of the Council of Europe in respect of public service broadcasting.

4. The cost of the services and impact on other services;

RTÉ budget achieves value for money but BAI considers that this may underestimate the funding requirements and the channels may not deliver as much value as better funded services.

Those who did respond considered that there would be some impact on other services. There was however, inadequate information provided to respond in detail on this issue.

RTÉ is proposing to utilise existing resources and content for the channels and anticipates total funding requirement of circa €5.1m over five years.

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5. The contribution of the new services to the democratic, social, cultural, linguistic and educational needs of society

The RTÉ News Now and RTÉjr channels clearly contribute but lack of new content and over reliance of looped programming detracts from these. The RTÉ Two HD Select and RTÉ Plus channels could help achieve cultural and social goals. RTÉ Plus was considered weakest part of package. Little to assist with linguistic needs.

The universal coverage, extension and development of content and widening of target audiences through the new services will lead to significant contribution here. The RTÉ News Now and RTÉjr channels are important. But lack of new content detracts. Little to assist with linguistic or educational needs.

The proposals will complement RTÉ's public service provision and will enhance RTÉ's ability to meet the needs of Irish society in a digital era. The proposals are not addressed at Irish communities outside Ireland. The proposals are similar to digital channels developed by broadcasters in other countries. Indicative research has indicated a positive reaction to the proposals.

6. The extent to which the proposed channels/services will be accessible by the public.

Highly as long as services are rolled out across all platforms.

The services have the potential to be very accessible to the general public as long as they are available across platforms, DTT receivers are affordable and accessible and there is a good information campaign.

The services will be accessible to the population of Ireland on the RTÉ network by the time of analogue switch off in 2012.

7. The extent to which the proposed services will reach under served audiences.

BAI considers that terrestrial only households will benefit from larger range of channels. For other households the benefit will be moderate.

The service will reach underserved audiences, in particular, RTÉjr will serve children under 6 and the RTÉ Aertel Digital and RTÉ News Now channels will be useful for those without internet access.

RTÉ will ensure the new channels meet the BAI access codes and quota in respect of accessibility services such as subtitling and audio description and RTÉ continues to engage with stakeholders to ensure views and opinions are taken into account in developing new services. In addition, the RTÉjr will serve children whilst the teletext service will be easier to use. The overall mix will serve all Irish audiences.

8. Whether the new services help to raise the level of familiarity with new forms of services and technologies?

Benefit is anticipated to arise in households which do not have access to digital or broadband services

Some Benefit is anticipated to arise in households, in particular digital service, teletext services.

DTT offers digital services free to air to Irish audiences thereby introducing technology benefits which have previously only been available to pay TV subscribers. E.g. New teletext service has a new user interface blending usability and accessibility for a better user experience.

9. Whether new services help contribute to media plurality? Why?

Protecting the future of public service broadcasting is important to secure media diversity and acts as counterweight against large commercial corporations in the provision of news and comment. The news channel has an important role to play but the lack of new content prevents a high score.

Some respondents considered the proposals added to media plurality. In addition the proposals were considered to add to diversity of content/new channels. Most respondents did not consider it provided for media diversity of ownership. On this issue one considered that the new proposals helped protect the future of public service broadcasting against large commercial corporations.

RTÉ considers there is plurality and diversity in today’s broadcasting market and RTÉ does not limit choice or pose a threat to commercial television or radio. RTÉ, as a public service broadcaster provides diversity against commercial broadcasters. RTÉ also submits that the proposed new digital services will contribute to media diversity in Ireland.

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10. Wider impact, including support for DTT (BAI Only)

The proposals will not impact significantly on DTT adoption; they may encourage commercial DTT interest.

11. Contribution to media competition

(RTÉ only)

The Irish media landscape is highly competitive, diverse and vibrant and the impact of the proposed new services is likely to be minimal. However, in terms of delivering additional choice to Irish audiences, RTÉ's proposed channels are intrinsically valuable.

12. The extent to which the proposed services may affect the diversity of available services which are disproportionate to the contribution the new services will make to the fulfilment of the public service remit

(RTÉ only)

The services are intended to enhance content offering to diverse audiences with targeted content for specific genre. RTÉ considers that the development of these channels which will be provided at no additional cost to licence payers will provide benefits to diverse audiences which exceeds current expectations. RTÉ considers these services are key to the development of DTT in Ireland.

13. Involvement of RTÉ in new areas of activity, untested in Ireland.

(RTÉ only).

The development of DTT provides opportunity for RTÉ to offer innovative services not previously available in Ireland. The new services introduces RTÉ to the need to progress targeted audience reaction surveys and groups to measure audience reaction and improve the services

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Annex 4 – Extracts from the Broadcasting Authority of Ireland

Legislative Provisions relating to the Public Value Test and the Sectoral Impact

Assessment

Section 100 - Sectoral impact assessments by Authority.

100.—(1) The Authority shall, within 3 months of receiving a written request for

advice from the Minister in respect of the sectoral impact of a proposal under this

Part, prepare and submit such advice to the Minister.

(2) The Authority, in advising the Minister on the sectoral impact of a proposal under

this Part, shall consider the following matters—

(a) the extent to which the proposal impacts on—

(i) the availability, choice, quality and accessibility of services for audiences,

and

(ii) existing sectoral services,

(b) the impact of the proposal on sectoral development, innovation and investment,

(c) the impact of the proposal on related markets, and

(d) such matters as the Authority may decide.

(3) In reviewing the sectoral impact of a proposal under this Part, the Authority shall

consider such impacts as may arise within a 5 year period of the receipt of a written

request for advice from the Minister under subsection (1).

Section 103 - Ministerial consent for new services and variations in channels.

103.—(1) A corporation may, with the consent of the Minister, pursue the objects in

paragraphs (g) and (h) of section 114(1) or paragraphs (g) and (h) of section 118(1),

as the case may be.

(2) A corporation may, with the consent of the Minister, vary the number of television

or sound broadcasting channels it operates.

(3) A corporation may, with the consent of the Minister, undertake ancillary services.

(4) Where the Minister proposes to give his or her consent under this section, the

Minister shall—

(a) consult with the corporation concerned and such other persons as he or she

considers appropriate,

(b) consult with the Authority as to the sectoral impact of a proposal under this

Section,

(c) consider the public value of such proposal, and

(d) publish in such manner as he or she considers appropriate a statement

outlining the consultations that have been carried out under paragraphs (a)

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and (b) and indicate a place at which any document given to the Minister by a

person referred to in paragraph (a) or (b) in the course of consultations under

those paragraphs may be inspected.

(5) A person referred to in paragraphs (a) or (b) of subsection (4) may, on giving a

document to the Minister for the purposes of subsection (4), request the Minister to

omit from documents made available for public inspection under paragraph (d) of

subsection (4) a document or part of a document which the person regards as

commercially sensitive.

(6) The Minister may, if satisfied that the information contained in a document or part

of a document is commercially sensitive and that its disclosure is not necessary for the

purposes of public understanding of a decision made under subsection (4), omit the

document or part of a document from the documents made available for public

inspection under paragraph (d) of subsection (4).

(7) For the purposes of this section, information is commercially sensitive if its

disclosure could reasonably be expected to—

(a) materially prejudice the commercial interests of the person who provided

that information to the Minister, or of a group or class of persons to which

that person belongs, or

(b) prejudice the competitive position of a person in the conduct of the person’s

business.

(8) The Minister, in deciding on the public value of a proposal under this section shall

consider the following matters—

(a) the importance of the proposal in respect of the pursuance of the public

service objects of the corporation,

(b) the compatibility of the proposal with the Council Directive and

recommendations of the Council of Europe in respect of public service

broadcasting,

(c) the costs and revenues associated with the proposal and any impact on

existing public service provision,

(d) the extent to which the proposal contributes to meeting the democratic,

cultural, linguistic, educational, and social needs of Irish society, of

individual groups within Irish society, and of Irish communities outside of

the island of Ireland,

(e) the extent to which the proposed service will be accessible by the public,

(f) the extent to which the proposed service will reach underserved audiences,

(g) the contribution of the proposed service or activity to raising the level of

familiarity of the general public, or of individual groups within Irish society,

with new forms of services and technologies,

(h) the contribution of the proposal to media plurality, and

(i) such matters as the Minister may decide.

(9) The Minister may attach to any consent granted under this section such

particular terms or conditions as he or she considers appropriate in the

circumstances.

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(10) The requirements of subsection (2) shall not apply to the establishment by a

corporation of a television or sound broadcasting channel for a period of not

more than 30 days (whether consecutive days or otherwise) in any period of

12 months.

(11) In this section “ancillary services” means the provision by a corporation of

services, which—

(a) are ancillary to the public service objects of the corporation,

(b) the corporation has not engaged in a significant manner in the previous

5 years,

(c) require expenditure by the corporation in excess of €5 million in each

year, and

(d) for which the corporation proposes to use funding received by the

corporation under section 123, but does not include the provision by a

corporation of a service in pursuance of paragraphs (d), (f) and (i) of

section 114(1) and paragraphs (d) and (f) of section 118(1).

consideration - assets.gov.ie

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