Annual Report 2017 TABLE OF CONTENTS About the BAI 3 Chairperson’s Statement 4 CEO Review 6 The Authority 8 Compliance Committee 9 Contract Awards Committee 9 Finance Audit and Risk Committee 10 BAI Executive Staff 11 BAI Strategy Statement 2017-2019 12 Promoting Diversity and Plurality 14 Communicating and Influencing 28 Empowering Audiences 34 Enhancing Innovation and Sectoral Sustainability 38 Achieving Excellence and Accountability 42 BAI | ANNUAL REPORT 2017 1 ABOUT THE BAI The Broadcasting Authority of Ireland was established — promoting diversity of control in the commercial and under the Broadcasting Act 2009 (“the 2009 Act”) on community sectors; 1st October 2009. — providing a regulatory environment that: The Act sets out a range of general and specific — sustains independent and impartial journalism; objectives for the BAI and specifies that its constituent — sustains compliance with employment law; parts, in performing their functions, “shall endeavour to — protects the interests of children; ensure: — facilitates a broadcasting sector which is — that the number and categories of broadcasting responsive to audience needs and accessible to services made available in the State best serve the people with disabilities; needs of the people of the island of Ireland, bearing — promotes and stimulates the development of in mind their languages and traditions and their Irish language programming and broadcasting religious, ethical and cultural diversity; services. — that the democratic values enshrined in the The 2017 Annual Report is structured on the strategic Constitution, especially those relating to rightful themes of the Strategy Statement 2017-2019 – liberty of expression, are upheld; and, Promoting Diversity and Plurality, Communicating — the provision of open and pluralistic broadcasting and Influencing, Empowering Audiences, Enhancing services.” Innovation and Sectoral Sustainability and Achieving Excellence and Accountability. The Act also sets out a range of other objectives for the Authority which include: The BAI consists of the Board (“The Authority) and two statutory committees – the Contract Awards Committee — stimulating the provision of high quality, diverse, and the Compliance Committee. The Authority has and innovative programming; appointed a standing committee (“The FAR Committee”) — facilitating public service broadcasters in the to oversee finance, audit and risk matters. The BAI fulfilment of their public service objects; Executive supports the work of the organisation. BAI | ANNUAL REPORT 2017 3 CHAIRPERSON’S STATEMENT I am honoured to present the Annual Report of The inclusion of a theme on innovation and sustainability the Broadcasting Authority of Ireland for 2017. reflects the ongoing conversations we have been having The year began with the launch by the Minister for across the industry and an acknowledgement of the Communications, Climate Action and Environment, pressing challenges we face. These challenges and the Denis Naughten TD, of our new Strategy Statement for need for concerted action have been well rehearsed 2017-19. This is the third strategic statement launched in previous annual reports from the BAI, in other by BAI since its establishment in 2009 and the first by published documents and in public discussion. They the new Authority appointed in 2015. The Strategy has were highlighted most recently in the Mediatique report been informed by an in-depth assessment of the current on the Broadcasting Landscape in Ireland, commissioned context. by the BAI during the year as part of the process for drafting a new Broadcasting Services Strategy. That context includes changing patterns of media consumption, technological change, increased Commenting on the inertia which often afflicts social competition, particularly from abroad, and diminishing institutions, the English philosopher Francis MacDonald advertising revenue. We believe that while such Cornford famously remarked that nothing is ever done challenges are serious, they also offer opportunities until everyone is convinced that it ought to be done and which, if grasped, will ensure that the Irish audio- has been convinced for so long that it is now time to do visual sector prospers into the future. To this end, we something else. Frustrated observers of the Irish media produced a sharply focussed strategy statement which landscape may well feel that the remark is apposite in clearly identified where the BAI would concentrate its the case of broadcasting policy. efforts over the period 2017-19. Quality public service broadcasting is essential for a As with our previous plan, our starting point was the vibrant democracy. It needs to be properly funded. conviction that plurality and diversity are the sine qua The mixed funding model which has operated with non of a healthy democracy. The BAI’s vision is of an some considerable success in Ireland has come under Irish media landscape that reflects and shapes who significant pressure with the stagnation of the TV we are. The phrase ‘who we are’ is intended to affirm licence income and the decline of advertising revenue. our distinctive linguistic and cultural heritage while Addressing the high level of licence fee evasion will embracing all the diverse and multiple strands which go alleviate but not resolve the problem. Creative solutions to make up Irish identity or identities in a global world. are required which address the changing patterns of consumption, the issue of opt-out advertising and the The BAI’s objectives for 2017-19 are organised under flight of advertising revenue to the social media. five strategic themes: Promoting Diversity and Plurality; Achieving Excellence and Accountability; Communicating These problems are in part but not exclusively financial. and Influencing; Empowering Audiences; and Enhancing The consumer appetite for content anytime, anyplace Innovation and Sectoral Sustainability. To ensure a and anywhere has underlined yet again the critical sustained and consistent focus on these themes and importance of content. Ensuring the availability of high on the delivery of the related outcomes, the Authority quality, culturally relevant content for Irish audiences is a has agreed that the agenda of all its meetings should be priority for the BAI. arranged under these headings and that this and future annual reports should also follow that structure. 4 BAI | ANNUAL REPORT 2017 New distribution models challenge the existing In the meantime, the routine work of the BAI under the regulatory structure which requires an overhaul. headings of licensing and regulation has continued. Television and radio are no longer autonomous Eighteen services were included in the licensing process industries. The boundaries between broadcast and during the year. The Sound and Vision scheme has print media have been blurred and the advent of new gone from strength to strength and continues to platforms such as Google, Amazon and Facebook has demonstrate that even modest funding harnessed to radically transformed the media landscape. creative and technical skills can generate significant quality content. Two rounds were concluded in 2017 The annual report details considerable work on the part which resulted in funding of over €11 million being of the BAI across a range of areas and includes some provided for more than 200 projects. Almost €3million positive signs and developments. The Reuters Institute was provided for 30 Irish language or bilingual projects. Digital News Report confirms that in Ireland trust in the news remains high by international standards. In conclusion I would like to express thanks to my fellow Radio listenership also remains high. The Media Literacy members of the Authority and the members of the Network launched as part of the BAI Media Literacy Compliance, Contract Awards and Finance, Audit and policy has attracted participation from across the media Risk committees for their active engagement during industry including social media platforms and from the year. I acknowledge and affirm also the efforts of educational organisations. This reflects a widespread the Executive and the staff and all the diverse agencies, acceptance of the need for the systematic promotion of organisations and individuals whose cooperation and media literacy. collaboration is indispensable to the work of the BAI. The adoption of a gender action plan by the BAI, based on the Council of Europe framework was another welcome development which begins to address the issue of gender inequality in Irish broadcasting. An important Professor Pauric Travers part of the plan is the monitoring of progress in the Cathaoirleach area. During the year, the BAI also conducted for the first time a full media merger examination at the request of the Minister under the Competition and Consumer Protection Act 2014. While the parties ultimately decided not to proceed with the merger, the process was an important one in the context of protecting media plurality. BAI | ANNUAL REPORT 2017 5 CEO REVIEW 2017 marked the beginning of an exciting new phase deliver on the outcomes for this theme. In particular, in the life cycle of the BAI as we commenced the I would reference the work on Media Plurality, the implementation of the new three year BAI Strategy commencement of the development of a revised Statement 2017-2019. The new Strategy had been Broadcasting Services Strategy and the ongoing support approved by the board in December and was formally for programming and archiving projects through the launched