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Public Funding Review of Public Service Broadcasters

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Public Funding Review of Public Service Broadcasters LEGALLY PRIVILEGED AND CONFIDENTIAL PUBLIC FUNDING REVIEW OF PUBLIC SERVICE BROADCASTERS A report submitted to the Minister for Communications, Energy and Natural Resources further to section 124(4) of the Broadcasting Act, 2009 for the Broadcasting Authority of Ireland prepared by Oliver & Ohlbaum Associates Ltd July 2014 Ireland Public Service Broadcaster Funding Review 2014 LEGALLY PRIVILEGED AND CONFIDENTIAL Contents 1 EXECUTIVE SUMMARY ....................................................................................................................... 9 1.1 2009 Broadcasting Act – review framework ............................................................................. 9 1.2 Developments in the Irish broadcast media sector ................................................................. 10 1.3 Review of the performance of TG4 in 2013 ............................................................................ 11 1.4 Review of the performance of RTÉ in 2013 ............................................................................ 14 1.5 Recommendations for future reviews ..................................................................................... 17 1.6 Funding modification recommendations ................................................................................. 18 1.6.1 TG4: increase funding in line with inflation ............................................................................. 18 1.6.2 RTÉ: increase funding in line with inflation ............................................................................. 18 1.7 Future funding recommendations ........................................................................................... 19 2 THE MACRO ENVIRONMENT ........................................................................................................... 20 2.1 Television access in Ireland .................................................................................................... 20 2.2 Irish television viewing habits ................................................................................................. 21 2.3 Irish television industry revenues ............................................................................................ 22 2.3.1 Pay TV subscriptions .............................................................................................................. 22 2.3.2 Advertising revenue ................................................................................................................ 23 2.3.3 Public funding for broadcasters .............................................................................................. 24 3 ANALYSIS FRAMEWORK ................................................................................................................. 26 4 REVIEW OF THE PERFORMANCE OF TG4 ..................................................................................... 28 4.1 Overview of performance against commitments .................................................................... 28 4.2 Audience commitments and analysis ..................................................................................... 30 4.2.1 TG4’s performance against its audience commitments .......................................................... 30 4.3 Output & content commitments and analysis ......................................................................... 35 4.3.1 TG4’s performance against its overall output & content commitments .................................. 35 4.3.2 TG4’s performance against its genre-specific output & content commitments ...................... 38 4.4 Value for money commitments and analysis .......................................................................... 41 4.4.1 TG4’s performance against its value for money commitments............................................... 41 4.5 Creativity commitments and analysis ..................................................................................... 45 4.5.1 TG4’s performance against its creativity commitments .......................................................... 45 4.6 Irish language & culture commitments and analysis .............................................................. 47 4.6.1 TG4’s performance against its Irish language and culture commitments ............................... 47 4.7 Fulfilment of the Broadcasting Act 2009 ................................................................................. 50 4.7.1 Performance against PSB Objects ......................................................................................... 50 4.7.2 TG4’s Five Year Strategy ....................................................................................................... 52 4.7.3 Fulfilment of Public Service Statement ................................................................................... 54 4.8 O&O’s view on the overall performance of TG4 in 2014 ........................................................ 55 Oliver & Ohlbaum Ltd 2 Ireland Public Service Broadcaster Funding Review 2014 LEGALLY PRIVILEGED AND CONFIDENTIAL 5 REVIEW OF THE PERFORMANCE OF RTÉ ..................................................................................... 58 5.1 Overview of performance against commitments .................................................................... 58 5.2 Audience commitments and analysis ..................................................................................... 60 5.2.1 RTÉ’s performance against its overall audience commitments .............................................. 60 5.2.2 RTÉ’s performance against its television audience commitments ......................................... 61 5.2.3 RTÉ’s performance against its radio audience commitments ................................................ 63 5.2.4 RTÉ’s performance against its digital services and performing groups audience commitments ........................................................................................................................... 66 5.3 Output & content commitments and analysis ......................................................................... 69 5.3.1 RTÉ’s performance against cross-platform output & content commitments .......................... 69 5.3.2 RTÉ’s performance against television output & content commitments .................................. 69 5.3.3 RTÉ’s performance against radio and performance output & content commitments ............. 73 5.4 Value for money commitments and analysis .......................................................................... 75 5.4.1 RTÉ’s performance against overall value for money commitments ....................................... 75 5.4.2 RTÉ’s performance against revenue commitments ................................................................ 77 5.4.3 RTÉ’s performance against spending commitments .............................................................. 79 5.5 Creativity commitments and analysis ..................................................................................... 84 5.5.1 RTÉ’s performance against overall creativity commitments ................................................... 84 5.5.2 RTÉ’s performance against television production creativity commitments ............................ 85 5.5.3 RTÉ’s performance against radio, performance and cross-platform production creativity commitments ........................................................................................................................... 87 5.6 Irish language & culture commitments and analysis .............................................................. 90 5.6.1 RTÉ’s performance against Irish language & culture commitments ....................................... 91 5.7 Fulfilment of the Broadcasting Act 2009 ................................................................................. 92 5.7.1 Performance against PSB Objects ......................................................................................... 92 5.7.2 RTÉ’s Five Year Strategy ....................................................................................................... 94 5.7.3 Fulfilment of Public Service Statement ................................................................................... 97 5.8 O&O’s view on the overall performance of RTÉ in 2014 ........................................................ 98 6 CONTROL OF OVERCOMPENSATION AND MAINTENANCE OF SURPLUSES ........................ 101 7 RECOMMENDATIONS FOR FUTURE REVIEWS ........................................................................... 102 7.1 Purpose of the review ........................................................................................................... 102 7.2 Future development of the annual review framework ........................................................... 102 7.2.1 TG4’s Performance Commitments ....................................................................................... 103 7.2.2 RTÉ’s Performance Commitments ....................................................................................... 104 7.3 Measuring PSB performance in Ireland: key metrics ........................................................... 110 7.4 Measuring audience opinion in Ireland ................................................................................. 112 7.4.1 RTÉ’s approach to audience measurement ......................................................................... 112 7.4.2 TG4’s approach to audience measurement ........................................................................
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