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Proposal to Enhance RTÉ's Portfolio of Services June 2018

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Proposal to Enhance RTÉ's Portfolio of Services June 2018 Proposal to enhance RTÉ’s Portfolio of Services June 2018 1 2018 Contents 1. Introduction .................................................................................................... 3 Context ............................................................................................................. 4 2. Proposals and Public Value ............................................................................. 7 Rationale and Fit with RTÉ Strategy ........................................................................ 8 3. Fit with Public Value Criteria as per S.103(8) of the Broadcasting Act 2009 .. 15 4. Impact on the Market ................................................................................... 23 5. Conclusion ..................................................................................................... 27 2 2018 1. Introduction This document sets out an application to make changes to RTÉ’s portfolio of services. RTÉ is seeking ministerial approval, as it wishes to vary the number of public broadcasting services and make a change to an existing broadcasting service. Any such changes are subject to a Section 103 process, in line with the provisions of the Broadcasting Act 2009 (the Act). Strategic Context RTÉ Strategy RTÉ has recently published its strategy setting out its plans for the coming five years, in Renewing RTÉ for the next generation, 2018-20221. This strategy was formulated pursuant to the requirements of the Act2 and following an extensive market and environmental analysis; and audience and output review, across all services. RTÉ’s new Vision: To champion Irish culture by captivating audiences with trusted, engaging and challenging content; celebrating our country’s rich diversity; and cultivating Ireland’s talent. The strategy sets RTÉ on a sustainable path where public service media (PSM) will be re- imagined for a new generation. RTÉ’s aim is to connect with and engage all Irish people, wherever they are. On this path, RTÉ will continue to deliver high-quality, distinctive Irish content across its traditional channels and services, while it grows and experiments in the digital space. In an increasingly global and more competitive market, RTÉ will continue to put audiences at the centre of its thinking and will adapt to remain relevant to all audiences, into the future. RTÉ sets out to meet these audience needs and its legislative obligations to reflect and connect with the lives of all the people, by offering a comprehensive portfolio of services. 1 https://www.rte.ie/strategy/ 2 Section 124(8) of the Broadcasting Act 2009 3 2018 RTÉ’s strategy outlines how the organisation aims to evolve its services and content offering to meet changing audience needs, remain relevant to audiences, and exploit new opportunities that arise from changes in the market. RTÉ aims to give people more choice and control as to how, when and where they consume its content and services. The over-arching intention behind RTÉ’s content, services and distribution strategies is to put the audience first – knowing audiences, analysing their behaviours and anticipating their needs are critical to fulfilling RTÉ’s public service remit and implementing the strategy. RTÉ’s services will be accessible on multiple devices and platforms to give people more choice of how, when and where they connect with and consume content. In progressing delivery of its overall strategy RTÉ submits this proposal under Section 103 of the Act, to specifically address television broadcast services. Fundamental to the value proposition that publically funded content be easily accessible; an extended RTÉ One and RTÉ2+1 will serve to address the principles that underpin the service and distribution plans that RTÉ’s content and services are: • Universally available to Irish audiences • Available in a way that is convenient to audiences • Branded, easy to find and navigate • Delivered to the audience at the highest quality available Context Media consumers are faced with an unprecedented choice of global content, platforms and devices. This is creating a new, radically different and dynamic media landscape. New distribution models and a drive to control the provision of services are defining the business strategies of media companies, large and small. While the wide and growing choice of content, channels, devices and platforms has driven a surge in media consumption and increased connectivity, this is not about the demise of linear media in favour of an on-demand world, now or in the future. A recent analysis by Mediatique (commissioned by the BAI) has predicted that Live TV will remain the major component of all TV viewing in 20223. Recent industry data on Irish viewing indicates that consolidated TV Viewing 3 Source: A report on market structure, dynamics, and developments in Irish Media – Mediatique 4 2018 accounted for 3 hours, 13 minutes a day of the average viewer’s TV consumption in 2017 – 5 minutes a day more than 10 years ago4. Viewing to broadcaster content (live + recorded TV and viewing to Broadcast Players) remains in excess of 85% of all daily Audio Visual (A/V) viewing5. There will however be continued pressure from new alternatives and RTÉ like many media organisations must adapt and develop an agile approach to survive and thrive into the future. The range of devices available is creating the expectation that content should be available anytime and anywhere, yet research indicates audiences consume certain types of content over certain devices and this varies with life stage and high-speed broadband availability. Television services will remain the backbone of media production and consumption for the foreseeable future. There is a greater need now more than ever to invest in and support the development of quality Irish content to serve all citizens of Ireland with home-grown content and Irish editorial sources. In order to support and sustain Irish culture and Ireland’s creative sector, quality local content and editorial coverage should be at the centre of the media ecosystem in the Irish market, within the wider context of a globalised media value chain. The investment required to develop this indigenous content does not always make business sense for commercial services, as the yield or value returned may not be viable. Quality, home- grown and live Irish content carries a high cost. The contribution that a public service broadcaster makes to this is paramount and this objective is central to RTÉ’s public service remit (see also section 3(h) Media Plurality and Diversity). Proposal RTÉ will maintain the portfolio of digital television services it currently offers. This report elaborates further on RTÉ’s proposal for enhancement to an existing service and a proposed new service. The following table summarises the proposed enhancement and change that RTÉ submits for approval. 4 Source: TAM Ireland Ltd, Nielsen TAM/AV mins per person, Adults 15+, Total TV, Consolidated, National 5 Source: TAM Ireland, A/V Data Solution data, all adults, TV households, all day, 2017 - Format by minutes across all devices 5 2018 Existing Channels and Services Proposals RTÉ One +1 To extend the broadcast hours of the existing service* Proposed New Channel RTÉ2 +1 To make a +1 service of RTÉ2 available Research demonstrates that there is a clear demand for these services from audiences and the future success of Ireland’s national free-to-air media service, Saorview depends on an appropriate range of quality Irish content and services (see section 2. Proposals and Public Value, Meeting Audience Needs). RTÉ has significant responsibilities in this context and is required to maintain and operate a national television multiplex (Saorview), as set out in legislation6. * Note: The RTÉ One+1 channel will not become a separate and distinct channel with its own schedule; rather it will remain a stagger-cast channel and an exact replica of the parent channel, RTÉ One. 6 Section 130 of the Broadcasting Act 2009 6 2018 2. Proposals and Public Value The following is a description of the proposed changes to RTÉ One+1, and RTÉ’s proposal to introduce a new +1 channel, RTÉ2 +1.These descriptions consider the public value of the changes and include a rationale as to how these services fit with RTÉ’s objects and strategy and meet audience needs. RTÉ One+1 Description of proposed change to service RTÉ One +1 is an exact replica of the RTÉ One channel, with a one hour delay; and currently broadcasts between the hours of 19:00 and c02:00 daily. RTÉ is seeking the flexibility to extend the broadcast hours of the RTÉ One+1 channel to provide access to the off-peak schedule, where there is an audience need. RTÉ proposes to extend the broadcast hours of the RTÉ One +1 channel on Saorview and other television platforms up to 24 hours. The minimum broadcast hours will be 06:00 to c02:00 daily, which would be an exact replica of the RTÉ One channel (from 05:00). However, RTÉ would like to retain the flexibility to scale the broadcast hours of the channel within the above parameters, subject to audience and scheduling considerations. Impact on DTT multiplex Currently RTÉ One +1 shares a 24 hour broadcast channel slot with RTÉjr on the DTT Multiplex, with both channels operating part time hours. This proposal would necessitate the decoupling of RTÉ One +1 from RTÉjr in order to facilitate the increased hours to be broadcast by RTÉ One +1. Both channels would then be assigned their own 24 hour channel slot on the Saorview platform. There would be no impact on the provision of the RTÉjr service. Clarification For the avoidance of doubt, the changes to the RTÉ One +1 channel do not involve the evolution to the “RTÉ Plus” channel proposed in 2010. The RTÉ One +1 channel will not become 7 2018 a separate and distinct channel with its own schedule; rather it will remain a stagger-cast channel and an exact replica of the parent channel RTÉ One. RTÉ2+1 Description of proposed new service RTÉ is seeking approval to establish a +1 service of RTÉ2 available to audiences on Saorview and other television platforms. The channel will broadcast between the hours of 19:00 and c02:00 on weekdays and up to 24 hours on Saturdays and Sundays.
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