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PUBLIC SERVICE BROADCASTING-

THE INDIGENOUS

PRODUCERS

PERSPECTIVE Submission to the Joint Oireachtas Committee on Communications, Climate

Action and Environment.

November 2016

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Introduction Screen Producers Ireland is the national representative organisation of independent film,

television and animation production companies. SPI promotes the growth and sustainability of a

working environment conducive to a strong independent production sector for its 130 members

and the industry as a whole. We address the needs of the sector and, using our knowledge and

expertise, we aim to deliver a strong and sustainable position for Irish production companies. We

are focused on shaping an independent production sector that is comparable to best international

standards. We encourage state organisations charged with developing the industry to put in place

development plans and policies for the sector that will maximise its potential.

Screen Producers Ireland members produce programmes such as Vikings, Room to Improve, Red

Rock, Ros Na Ruin, BB agus Bella, Ear to the Ground, Dragons Den, What are you Eating, Other

Voices and Seven Women. They have produced Oscar nominated films such as Brooklyn and Room

and are also responsible for GAA and rugby coverage on TG4.

Screen Producers Ireland (SPI) believes that strong and adequately funded Public Service

Broadcasting is essential for a healthy indigenous production sector. SPI is pleased to have been

invited to discuss Public Service Broadcasting with the Oireachtas Joint Committee on

Communications, Climate Action and Environment and welcomes this opportunity to contribute to

the debate.

In this submission we propose to outline the importance of both the indigenous production

sector and our PSBs and then to highlight their interdependence on each other. We will then

offer our suggestions for stabilizing PSB funding and for improving the relationship between

PSBs and independent producers.

Funding for PSBs- The Indigenous Producers Perspective

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The Importance of Independent Film, Television and Animation Productions to the

Economy and to our Cultural Heritage

The indigenous film and TV production sector is a creative industry and an important strand of

Irish ‘arts’. It makes a significant and positive cultural and economic impact to Ireland. It allows us

to create and preserve our cultural heritage in a format that has mass appeal and is viewed by

large audiences both at home and abroad. Indigenous productions capture and promote our

national identity and chronicle what it means to be Irish. Irish films reinforce our reputation as a

creative nation of storytellers and market ‘brand Ireland’ abroad.

Furthermore, film and television productions take a snapshot of contemporary culture as well as

preserving our cultural heritage. Indigenous productions embrace the potential to engage young

people in the expression and dissemination of Irish culture. The Remembering 1916 celebrations

benefitted from many high-quality indigenous productions which helped frame the national mood

and generate public interest and discourse on the events being remembered.

Recent Oscar successes of films created by strong Irish talent increase awareness of the creative

talent available in Ireland and bring Ireland to life on screen for international audiences.

Indigenous productions are also economically beneficial to the state. Independent producers and

production companies employ several thousand people and are an intrinsic part of an eco- system

that nurtures the type of creative talent that attracts big-budget productions.

TV drama has spent an average S481 expenditure of €100m per annum in the past three years.

Film productions also made a substantial contribution to the economy in 2014 and 2015 with

€41m per annum of S481 expenditure. Animation averaged €30m per annum in the same period.

In 2010, an exit survey of tourists leaving the country found that 20% of tourists indicated that

films influenced their choice of Ireland as a destination. This shows that Irish films also have a

significant positive impact on tourism levels.

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A full assessment of the economic impact of the audiovisual sector has now been jointly

commissioned by the Department of Arts, and the Department of Communications and SPI

believes that the findings will further highlight the economic significance of the sector.

The Importance of Public Service Broadcasters

A strong PSB service is vital to provide a platform for Irish Arts and heritage as well as for unbiased

public discourse. National conversations are often necessary to educate the general public on

relevant issues and developments. These are usually started and steered by our public service

broadcasters who provide a platform for all sides of a debate and for politicians to communicate

with the electorate. The absence of such a platform would likely lead to a less informed and less

engaged electorate.

According to a European Broadcasting Union (EBU) report1 published in June 2016, there is a

positive correlation between higher levels of public service media market share and voter turnout.

Higher levels of public service media market share were also found to have a positive effect on

social cohesion and led to less right-wing extremism and less corruption. Allowing the market

share of our public service broadcasters to decrease due to inadequate funding would likely lead

to a more fragmented and apathetic society.

In addition to being an important tool for public policy and debate, public service broadcasters

preserve our cultural heritage through documentaries and programming that appeals to the Irish

audience. They preserve our national identity and build an archive of programming that tracks

changes in our culture and history.

1 PSM Correlations: Links Between Public Service Media and Societal Well-Being. EBU. June 2016.

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The Relationship Between our Public Service Broadcasters and Independent

Producers

It is imperative that policymakers understand the importance of our Public Service Broadcasters

to the independent production sector. PSBs nurture growth within the independent production

sector and give our creative talent a platform to present their works.

An adequately funded PSB system is essential for a healthy indigenous production sector. Security

of funding allows RTÉ to commission independent productions. This, combined with Irish Film

Board and BAI funding, ensures an active independent production sector which allows Irish

creative talent and producers to gain experience and skills. This experience and skills base is what

eventually attracts larger- scale international productions to shoot in Ireland. RTÉ and TG4 act as

incubators for Irish producers and production talent. Independently produced programming

funded by RTÉ and TG4 are an essential component in the development of the sector.

The audiovisual sector is currently experiencing many disruptive challenges in the form of new

technologies and changes in consumption patterns. Viewing patterns are increasingly favouring

on-demand content via internet streaming over traditional cable viewing. Ireland’s public service

broadcasters need to be adequately resourced to adapt to this new environment. They are

competing on a global scale with well funded channels that can offer a constant stream of new

programming to their audience.

RTÉ and TG4 will not be able to compete with these new challenges without adequate funding.

Indigenous producers must also adjust to meet the rapidly changing demands and opportunities

being created in the industry. It is vital that they benefit from the incubation assistance of a strong

PSB so that they can scale up to level where it is possible for them to compete internationally.

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Addressing the PSB Funding Issue in Two Steps

Introduce a Household Media Charge

Government must act now to provide security of funding to RTÉ and TG4 before we lose these vital

services. Screen Producers Ireland is aware that Minister Naughten has stated that he will not be

pursuing the introduction of a Household Media Charge. We believe that this is a misguided and

shortsighted choice and urge the Communications Committee to recommend that the Minister

reverse this decision.

The current TV licence fee is no longer fit for purpose. Consumers are moving from traditional

television viewing to streaming content from digital platforms. In 2009, 2.5% of Irish households did

not have a TV. That figure has now increased to 8%. People are choosing to forego purchasing a

television set in favour of other screen options. As this trend continues, the funding pot available to

our public service broadcasters will continue to decrease.

In addition to the 8% of households now without a television and therefore not obligated to

purchase a TV Licence, Ireland has one of the highest TV Licence Fee evasion rates in Western

Europe. It is currently estimated to be 13.7%, amounting to €40 million in lost revenue per annum.

We are aware that the Minister is seeking to address this evasion issue but are concerned that,

even if evasion rates decline, the growing number of households opting not to own a TV will offset

any gains made. In five years the number of TV-free households grew by 5.5%. If this trend

continues the number of households who legitimately do not require a TV Licence will almost

equal the current evasion level by 2020.

Screen Producers Ireland believes that the current structure of imposing a fee for public service

broadcasting based on TV ownership is outdated and must be changed to reflect the impact of

new technology on consumption patterns. A Household Media Charge would eliminate the TV

Licence Fee evasion issue and ensure our Public Service Broadcasters have a stable funding base

despite the change in screen preferences.

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SPI supports the introduction of a Household-based Media Charge. We were disappointed when

plans to introduce the Household Media Charge were dropped from the Government agenda. SPI

believes that this will have a progressively adverse impact on the amount of funding available to

public service broadcasters and, consequently, to indigenous producers. SPI is calling on

Government to reconsider this issue and to replace the TV Licence Fee with a Household-based

Media Charge.

Eliminate the Dual Funding Model

The provision of well-funded public service broadcasters is an important principle for most

national governments. SPI believes Ireland should move towards the European norm where PSB’s

are funded principally from licence fee (media charge) revenue with little or no reliance on

advertising and commercial revenues.

The dual funding model of licence fee and high levels of dependency on advertising/commercial

income leaves Ireland’s public service broadcasters open to significant fluctuations in their annual

budget. It gives rise to uncertainty in the sector through not having long term visibility on income

levels to guarantee compliance with public service commitments.

Of the 43 countries surveyed by the European Broadcasting Union (EBU) in 2014, Ireland’s public

service broadcaster is the third most dependent PSB on advertising income, after Poland and

Malta.

Since the economic downturn, RTÉ’s total income has fallen from €441M in 2008 to €328M in

2014, a fall of €113M or 26%. The principal reason for the decrease is the dramatic drop in

advertising revenue during the period. Ireland’s primary public service broadcaster dependency on

advertising income means a large proportion of its income is vulnerable to fluctuations. This is not

the case in most European territories where the income is stable.

RTÉ’s dependency on commercial income (45% in 2014) also contributes to a distortion in the

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media and advertising market in Ireland. Competitor broadcasters, regional radio, newspapers and

other media outlets claim they have an unfair advantage. Removing RTÉ and TG4 from the Irish

commercial advertising market would be of benefit to these media outlets.

SPI is aware that allowing our PSBs to be funded solely through licencing/media charge revenue

would require a significant increase in this revenue. However, we believe it is the best model for

ensuring we have stable, sustainable and independent public service broadcasters who are

capable of making a valuable contribution to Irish arts and public discourse.

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Recommendations to Further Improve the Symbiotic Relationship between RTÉ

and the Independent Production Sector

Publisher-Broadcaster Model

If a Household Media Charge is to be introduced then efficiencies and value for money must be a

condition of this policy. For this reason we believe RTÉ should move towards the emerging trend

of the publisher-broadcaster model whilst retaining core functions of news and current affairs

within RTÉ.

The UK Channel 4 is a "publisher-broadcaster", meaning that it commissions or "buys" all of its

programming from companies independent of itself, and was the first broadcaster in the United

Kingdom to do so on any significant scale; such commissioning is a stipulation which is included in

its licence to broadcast. The publisher-broadcaster model such as Channel 4 and TG4 is an efficient

and cost-effective model to deliver quality public service broadcasting in the rapidly changing

digital media environment, as evidenced internationally.

SPI believes that programming made by independent producers is high quality, cost-effective and

makes the best use of public money. Independent producers have consistently delivered some of

the highest rating and valued programmes for Irish audiences since the introduction of the

minimum statutory spend in 1993. The independent production sector offers diversity of ideas,

innovative and quality content, transparency and accountability for every euro of the licence fee

spent on programmes commissioned.

RTÉ as a publisher-broadcaster would be a better use of the licence fee and would result in a

greater volume of quality, original Irish programming available for Irish audiences.

The statutory spend on independently produced content should be doubled from the current level

of €40M p/a to €80M p/a to pave the way for RTÉ to move towards the emerging trend of the

publisher-broadcaster model.

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Introduce a Film Policy for RTÉ

In recognition of the positive cultural impact of Irish films, we are calling on government to

introduce a film policy in RTÉ. In contrast to most European countries, Ireland has no legislative or

regulated commitment from its’ national broadcaster to spend a minimum amount on locally

produced films. This places Irish producers at a competitive disadvantage and results in fewer Irish

films being made. SPI proposes that 1.5% of RTÉ revenue allocated to the Television Integrated

Business Division in the preceding financial year, and in any case no less than €2.5m per annum, be

allocated to spend on Irish feature films and feature documentaries.

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Conclusion

The continued success of the Irish independent production sector is very reliant on a strong Public

Broadcasting Service. Our Public Service Broadcasters make a valuable contribution to society and

their funding base must be protected and increased. Such an increase would have a positive knock

on effect on the Indigenous Production Sector as long as the spend on independent programming

was increased.

Protecting our PSBs is critical for preserving democracy, social cohesion and for providing a

trustworthy platform for public debates and national conversations. The Minister should reverse

his decision to not introduce a Household Media Charge and our PSBs should be made less reliant

on advertising and commercial income to ensure that their funding base is sustainable, stable and

adequate.

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Public Service Broadcasting-

The Indigenous Producers

Perspective

77 Merrion Square, Dublin 2, Ireland

Tel: + 353 (0)1 662 1114

Web: www.screenproducersireland.com