2020.10.29 Background Briefing Note

Home , IRadio, Radio Nova (Ireland), Spirit Radio, Television licence

Initial briefing for the Future of Media Commission

October 2020

NB. This briefing paper has been prepared by the Secretariat ahead of the inaugural meeting of the Future of Media Commission. It is intended as a general orientation, lightly introducing some of the issues pertinent to the Commission and signposting some further research and information. It does not purport to be a definitive statement on, or comprehensive analysis of, the media sector in Ireland or the challenges that it faces. Nor does it represent government policy on any of the issues which the Commission will examine during the course of its work.

1 ABOUT THE FUTURE OF MEDIA COMMISSION ...... 3 1.1 Establishment and Terms of Reference...... 3 1.2 Membership of the Commission ...... 4 1.3 Secretariat ...... 5 1.4 Online presence ...... 5

2 SETTING THE SCENE ...... 6

3 PROFILE OF THE MEDIA LANDSCAPE IN IRELAND ...... 8 3.1 Print media ...... 8 3.2 Online media ...... 10 3.3 Broadcast media ...... 11 3.4 Ireland’s Public Service Broadcasters ...... 12 3.4.1 RTÉ ...... 12 3.4.2 TG4 ...... 15

4 REGULATORY ISSUES ...... 17 4.1 Revised Audiovisual Media Services Directive ...... 17 4.2 Online Safety and Media Regulation Bill ...... 17 4.3 Regulation of Broadcasting in Ireland ...... 18 4.3.1 BAI annual review of output targets ...... 18 4.3.2 BAI 5-Year Review of Funding of Public Service Broadcasters ...... 18 4.3.3 Governance of Public Service Broadcasters ...... 19

5 FUNDING OF PUBLIC SERVICE BROADCASTING ...... 19 5.1 TV Licence Collection ...... 19 5.2 Distribution of the Licence Fee ...... 19 5.3 The Broadcasting Fund and the Independent Production Sector ...... 20 5.4 Reforming funding of public service media ...... 20

ANNEX I – ADDITIONAL READING MATERIAL ...... 22 5.4.1 International Examples ...... 23 5.4.2 Print ...... 23

1 About the Future of Media Commission 1.1 Establishment and Terms of Reference The Commission and its Terms of Reference are based on a Government Decision of 29 September 2020, and in line with a commitment in the current Programme for Government, Our Shared Future. The preamble to the Commission’s Terms of Reference describes the context for the Commission’s work. It emphasises that well-functioning media systems, and in particular public service broadcasting, deliver four important public services to Irish society, namely:  informing, educating and entertaining the Irish public with regard to matters of Irish culture, identity, sport, language and other matters inherent to Ireland and the Irish people;  ensuring that the public has access to high quality, impartial, independent journalism, reporting on matters of local, regional, national, European and international importance in a balanced way and which contributes to democratic discourse;  bringing the nation, and diaspora, together at moments of great national importance;  ensuring that creative Irish talent gets the opportunity to have their work reach audiences in Ireland and, where possible, further afield. The preamble continues by describing how, since the foundation of the State, these public service aims have been, and continue to be delivered at local, regional and national level by a wide number of media organisations including the two statutorily-established public service broadcasters - RTÉ and TG4 - as well as independent broadcasters, producers and print media. It identifies also the increasingly important role played by online media in the delivery of public service aims. The Terms of Reference then set out the goals of the Commission, as follows:  To identify what the Irish experience has been in delivering the above aims through public service broadcasters, other broadcasters, print and online media at a local, regional and national level and the challenges created for these media by new global platforms and changing audience preferences in relation to how content is delivered;  To consider the extent to which the current models of delivery are the appropriate ones the next 10 years;  To review best practice in other comparable jurisdictions, particularly across the European Economic Area in terms of providing future-proofed models for meeting the above four public services in light of changing audience expectations, in particular the preferences and behaviours of younger audiences.

Finally, the Terms of Reference set out the tasks of the Commission, which are to be completed through a Report of the Commission, to be finalised within a nine month period. The Commission’s report is expected to:  propose how public service aims should be delivered in Ireland over the next ten years;  describe how public service media should contribute to supporting Ireland’s cultural and creative sectors;  how public service media can be funded in a way that is sustainable, gives greater security of funding, ensures independent editorial oversight and delivers value for money to the public;  make recommendations on RTÉ’s role, financing and structure within this framework;  set out how public service media is to be overseen and regulated, having regard to our EU obligations including the requirements of the revised Audio-visual Media Services Directive. 1.2 Membership of the Commission The Commission has been constituted as an independent body whose members have been appointed on the basis of their expertise in broadcast, print and online media. The composition of the Commission represents a balanced mix of experts in public service media, independent journalism, social media, new technology platforms, media economics, culture, language, creative content, governance and best international practice. The Commission itself is not intended to be a stakeholder representative forum, and as such none of its members have been appointed in an ex-officio capacity. It is envisaged that the Commission will engage comprehensively with key stakeholders, including journalists and their representatives, publishers, regional media, and the wider public. The membership of the Commission includes:  Professor Brian MacCraith, Chair of the Commission. Former President of Dublin City University  Sinéad Burke, Director of Tilting the Lens, writer and academic active in social media, and member of the Council of State  Alan Rusbridger, Chair of the Steering Committee of the Reuters Institute for the Study of Journalism at the University of Oxford, and former Editor-in-Chief of Guardian News and Media  Lynette Fay, freelance broadcaster with an academic background in applied communications  Nuala O’Connor, co-founder of South Wind Blows, writer and documentary filmmaker in the areas of music and the Arts

 Dr. Gillian Doyle, Professor of Media Economics at the University of Glasgow  Mark Little, CEO and co-Founder of Kinzen, and Founder of Storyful  Stephen McNamara, Director of Communications with the Irish Rugby Football Union  Dr. Finola Doyle-O’Neill, Broadcast Historian at University College Cork  Two additional members to be appointed subject to Government Decision 1.3 Secretariat Secretary to the Commission is Andrew Munro, Assistant Secretary at the Department of the Taoiseach. The Secretariat to the Commission is provided by the Department of the Taoiseach (Prime Minister’s Office) in liaison with the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media. The Secretariat includes: Cathal O’Regan, Principal Officer, Protocol and Civic Policy Division, Department of the Taoiseach Tríona Quill, Principal Officer, Broadcasting & Media Division, Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media Liz Lyne, Administrative Officer, Protocol and Civic Policy Division, Department of the Taoiseach The Secretariat can be contacted at [email protected]. 1.4 Online presence The Commission’s website, www.futureofmediacommission.ie, will go live on 29 October, coinciding with the inaugural meeting of the Commission. The website will include a secure area where members of the Commission can access all relevant documentation pertaining to meetings etc., as well as a library of relevant reading materials.

2 Setting the scene

While one of the aims of the Future of Media Commission will be to elaborate its view of what Public Service Media (PSM) currently is, and how it may evolve in the years ahead, the following offers a brief introduction to the question. Defined in its narrowest sense, PSM includes statutory public service media organisations in direct receipt of public funding in accordance with the Broadcasting Act 2009, of which there are currently two just: RTÉ and TG4. A broader interpretation of the term also encapsulates a wide range of companies that operate media organisations (broadcast, print and online), providing varying levels of public service content to their audiences. Such public service content is sometimes commissioned by RTÉ, TG4 or the Broadcasting Authority of Ireland (using public monies), while at other times is produced on a commercial or voluntary basis. PSM have played an invaluable role in Irish society over many decades, supporting and promoting civic and political discourse, culture, the Irish language and many other objectives. Over the last decade, innovative technologies and new business models have led to transformative changes in the broadcasting, print and online media sectors in Ireland. Mirroring the trends seen internationally, consumer behaviour and preferences in Ireland are changing fundamentally, with important implications for media providers and publishers, content creators, journalists, broadcasters, advertisers and consumers alike. For example, the 2019 BAI Reuters Digital News Report on the broadcasting sector in Ireland shows that among those aged 65 and over, TV is the main news source for 52%, while radio is the main news source for another 18%. In sharp contrast, among 18-24 year olds, only 18% rely on TV and 6% radio as their main news source, with 71% relying on online sources. Similar trends are revealed in the October 2019 TAM Ireland survey, which reports that adults aged 55+ watch TV for >250 minutes per day, adults aged 35-54 watch >150 minutes per day, while those in the 15-24 years age group watch just over 50 minutes per day of TV. While these trends are broadly in line with international comparators, there is evidence that the Irish public still has a relatively high level of consumption of traditional media. For example, 2019 JNLR figures for radio listenership show that a large majority of Irish adults (81%) listen to the radio on an average day, with 55% tuning into their local or regional station and 43% listening to a national station. Among the younger, 15 to 34-year market, 71% listen daily. Overall consumption by Irish radio audiences is high, with listeners tuning in, on average, for almost 4 hours (226 minutes) per day during the prime 7am to 7pm time Mon-Fri. In relation to news and current affairs, the latest Digital News Ireland Report 2020 (Dublin City University FuJO, BAI, Reuters Institute) shows that, over the last five years, Irish

consumers’ interest in news has remained consistently high, with just under 70% declaring themselves either extremely or very interested in news. Those aged 18-24 show the least interest in news content and these levels rise for each successive age group, with 55-64 year olds showing the highest levels of interest. More Irish people are extremely interested in news (26%) compared to the UK (14%) and the EU average (20%). The trends in media consumption have important implications for public service media in Ireland. Important questions arise about the future capacity of public service media to create specifically Irish content that reflects our individual culture, art, music and sport, and to reach their target audiences with that content. Similar issues arise regarding news and current affairs, especially important in light of topical challenges such as online disinformation and the erosion of public confidence in information sources. A concurrent phenomenon is the erosion of traditional advertising markets and the inexorable shift towards digital advertising, which is significantly impacting the financial situation and competitiveness of public and private media organisations. Recent research on the Irish advertising market suggests that, in a market valued at approximately €1 billion in 2019, Google and Facebook collected an estimated 40 per cent of total advertising spend and 81% of total online advertising spend. For RTÉ, which depends both on public funding derived through the TV licence fee and advertising revenues, the current trends are having a critical impact on its revenues. For the national, regional and local print media, the shift of advertising revenues to digital platforms, exacerbated by the precipitous drop in circulation and advertising revenues during the pandemic, are a cause of significant concern for the industry. As well as impacting on the capacity of the broadcasting, print and online media sectors to deliver public service objectives, these long-term structural changes have implications for future competitiveness, employment, plurality of ownership, and editorial independence. Meanwhile, in an era of extensive online disinformation, and at a time when the global pandemic has caused unparalleled disruption to social and economic systems, the role of public service media in educating, informing and entertaining the public in a way that protects the fundamental underpinnings of a healthy democracy and society has arguably never been greater. Previous analysis and research on the future of public service media Over recent years, issues around the future of public service media in Ireland have been subject to considerable debate and analysis, including by successive governments, the Oireachtas (Irish Parliament) and by academia. While beyond the scope of this initial briefing paper, the Secretariat will provide Commission members with access to the various debates and analyses that are available. For example, the financial challenges facing public service broadcasting and the role of the TV Licence Fee have been examined, inter alia, by:

 the interdepartmental Working Group on the Future Funding of Public Service Broadcasting;  the Broadcasting Authority of Ireland (through its Five Year Reviews of Public Service Broadcasting Funding);  the Oireachtas Joint Committee on Communications;  NewERA (the Government’s New Economy and Recovery Authority, which provides financial and commercial advice to Government Ministers in relation to State companies);  RTÉ; and  various consultancies. While the preponderance of analysis already undertaken has been in relation to the future funding of public service broadcasting, the Terms of Reference of the Future of Media Commission include an examination of public service media including print and online, as well as broadcast media.

3 Profile of the media landscape in Ireland 3.1 Print media Ireland’s print media has a long tradition of independent journalism at national, regional and local levels, operating in what is a competitive and challenging sector of the economy. As well as indigenous publications, there is strong competition from UK publications in particular, with a number of UK newspapers producing editions for the Irish market. Irish newspapers are increasingly expanding their reach through digital editions supplemented with audiovisual content. Ireland has a higher rate of consumption of printed newspapers relative to many other European countries. The print sector has been subject to a series of consolidations and mergers in recent years, with a consequent impact on plurality of ownership. The sector is being impacted significantly by changing patterns of media consumption and advertising, including the impact of digital advertising. While the print sector is not subject to statutory regulation, the majority of publishers are members of the Press Council of Ireland, and subscribe to the Press Council’s Code of Practice and to the complaints investigation functions of the Office of the Press Ombudsman. Though not exhaustive, the following tables provide a good overview of the range of publications available in Ireland, and available circulation figures.

National Daily Publications with circ (average daily circulation, Jul-Dec 2019) The Irish Times Irish Independent Irish Sun Irish Daily Star Irish Daily Mail (circ 54,147) (circ not available) (circ 45,487) (circ 38,383) (circ 26,265)

Irish Daily Mirror Herald Irish Examiner (circ 26,158) (circ not available) (circ 23,387)

National Weekly Publications with circ (average circulation, Jul-Dec 2018) Sunday Independent Sunday World The Sunday Times Irish Mail on Sunday Business Post (circ 165,334) (circ 123,095) (circ 66,039) (circ 62,630) (circ 26,652)

Irish Sunday Mirror Irish Farmers Journal (circ 20,220) (circ not available)

Local Newspapers (Print and digital editions) Bray People Carlow Nationalist Clare Champion Connacht Tribune Connaught Telegraph

Derry News Donegal Democrat Donegal News Donegal People's Donegal Post Press

Drogheda Dublin InQuirer Dundalk Democrat Enniscorthy Fingal Independent Independent Guardian

Gorey Guardian Inish Times Kerry's Eye Kildare Nationalist Kildare Post

Kilkenny People Laois Nationalist Leinster Leader Leinster Express Leitrim Observer

Limerick Leader Longford Leader Mayo News Meath Chronicle Midland Tribune

Munster Express The Nationalist Nenagh Guardian New Ross Standard Northern Standard

Roscommon Herald Sligo Champion Southern Star The Anglo Celt The Argus

The Avondhu The Clare Echo The Corkman The Echo The Kerryman

The Leader Tipperary Star Tuam Herald Tullamore Tribune Waterford News & Star

Western People Westmeath Westmeath Wexford People Wicklow People Examiner Independent

Magazines (Print and digital editions) Accountancy Ireland Business Plus Euro Times Hotpress Irish Country Magazine

Irish Medical Times Law Society Gazette RTÉ Guide Siochain Stubbs Gazette

The Gloss The Irish Field The Irish Journalist Woman's Way Work & Life Magazine

3.2 Online media The online media market in Ireland is characterised by a combination of ‘born-online’ media outlets and traditional media organisations with an online presence. The table below shows a selection of the online-only media in the Irish market: Online-only media TheJournal.ie Joe.ie breakingnews.ie Extra.ie

Her.ie Buzz.ie Carlowlive.ie Corkbeo.ie

Donegallive.ie DublinLive.ie Echolive.ie Evoke.ie

KildareNow.com OffalyExpress.ie OffalyLive.ie Rollercoaster.ie

TipperaryLive.ie WaterfordLive.ie DerryNow.com

However, a number of traditional media organisations are competing successfully in the online market, as evidenced by the latest FuJO / BAI / Reuters Institute Digital News Ireland Report 2020, which shows that the top ten digital brands for news consumption include a mix of traditional and online-only media organisations:

1. RTÉ News Online (broadcaster)

2. Independent.ie (newspaper)

3. TheJournal.ie (online-only)

4. Breakingnews.ie (online-only)

5. Sky News online (broadcaster

6. BBC News online (broadcaster)

7. Irishtimes.com (newspaper)

8. Any local radio news stations (broadcasters)

9. Yahoo news (online)

10. Irish Examiner online (newspaper)

The sector faces important questions about its business model. As reported above, recent research on the Irish advertising market suggests that, in a market valued at approximately €1 billion in 2019, Google and Facebook collected an estimated 40 per cent of total advertising spend and 81% of total online advertising spend.

3.3 Broadcast media Broadcast media in Ireland comprise the public service broadcasters (RTÉ and TG4), and independent broadcasters, across radio and TV, at national, regional and local level. The independent broadcasting landscape has developed over the past 25 years with the licensing of commercial, community, institutional and temporary sound broadcasting services and commercial and community television services. The BAI provides a list of the various entities licenced in the Broadcast Sector, including: National TV Broadcasters RTÉ TV TG4 Virgin Media RTÉ One, Two, News Now Virgin Media One, Two and Three eir Sport

National and Regional Radio RTÉ Radio Newstalk Today FM Incl. RTÉ Radio One, 2FM, Lyric FM, Raidio na Gaeltachta FM104 98FM C103 / Cork's 96FM Beat 102 – 103 Clare FM Cork's 96FM / C103 East Coast FM WLR FM Spin 103.8 Galway Bay FM Highland Radio iRadio NE & iRadio NW KCLR 96FM KFM Midlands Limerick's Live LM FM Mid West Radio Midland's 103 Classic Hits 4FM 95FM Northern Sound / Ocean FM Q102 Radio Kerry Radio Maria Ireland Shannonside Radio Nova Red FM Shannonside / South East Radio Spin South West Northern Sound Spirit Radio Sunshine 106.8 Tipp FM UCB

Community TV and Radio Stations Athlone Claremorris Community Radio Community Radio Community Community Radio Community Radio Castlebar Kilkenny City Radio Youghal Connemara Cork Community TV DCTV Dublin South FM Dundalk 100 FM Community Radio Liffey Sound FM Near FM Phoenix FM Raidio Corca Ros FM Baiscinn

Tipperary Mid- West Limerick 102 West

3.4 Ireland’s Public Service Broadcasters 3.4.1 RTÉ RTÉ (Raidió Teilifís Éireann) is a semi-state company and Ireland’s primary public service broadcaster, on television, radio and online. The radio service began in 1926, and TV broadcasts in 1962, making RTÉ one of the oldest continuously operating public service broadcasters in the world. RTÉ, which is part-funded by the licence fee and part-funded by commercial revenue, has a broad remit, with responsibility for the provision of radio and television services in both the English and Irish languages. Its television services are RTÉ One, RTÉ One HD, RTÉ One +1, RTÉ 2, RTÉ 2 HD, RTÉ 2 + 1, RTÉjr and RTÉ News Now. RTÉ operates four primary radio stations (RTÉ Radio 1, RTÉ 2fm, RTÉ lyric fm and RTÉ Raidió na Gaeltachta) with five additional digital radio services (RTÉ Radio 1 Extra, RTÉ Pulse, RTÉ Gold, RTÉ 2XM, and RTÉjr Radio). RTÉ, through 2rn, also manages the free-to-air digital terrestrial television service, Saorview. RTÉ is required to be responsive to the interests and concerns of the whole community within the island of Ireland, and to have special regard for elements that distinguish that culture and, in particular, the Irish language. Statutory Objectives The Broadcasting Act 2009 sets out the statutory objects of RTÉ, as follows: (a) to establish, maintain and operate a national television and sound broadcasting service which shall have the character of a public service, be a free-to-air service and be made available, in so far as it is reasonably practicable, to the whole community on the island of Ireland, (b) to establish and maintain a website and teletext services in connection with the services of RTÉ (c) to establish and maintain orchestras, choirs and other cultural performing groups in connection with the services of RTÉ (d) to assist and co-operate with the relevant public bodies in preparation for, and execution of, the dissemination of relevant information to the public in the event of a major emergency (e) to establish and maintain archives and libraries containing materials relevant to the objects of RTÉ (f) to establish, maintain and operate a television broadcasting service and a sound broadcasting service which shall have the character of a public service, which services shall be made available, in so far as RTÉ considers reasonably practicable, to Irish communities outside the island of Ireland,

(g) to establish, maintain and operate, in so far as it is reasonably practicable, community, local, or regional broadcasting services, which shall have the character of a public service, and be available free-to-air, (h) to establish and maintain non-broadcast non-linear audio-visual media services, in so far as it is reasonably practicable, which shall have the character of a public broadcasting service (such consent not being required in respect of such services which are ancillary to a broadcasting service (i) to establish, maintain, and operate one or more national multiplexes, (j) so far as it is reasonably practicable, to exploit such commercial opportunities as may arise in pursuit of the objects outlined Funding As a public service broadcaster, RTÉ is funded through a mix of licence fee revenues and commercial revenues (largely derived from advertising). Commercial income continues to decline, primarily due to the rise of digital advertising on the social media platforms, Brexit uncertainty and the impact of COVID on advertising. While RTÉ’s licence fee income has risen since 2016, this has mainly been achieved through replacing licence fee funding for TG4 with exchequer funding and the increase in free licences underpinned by contributions from the Department of Social Protection, rather than organic growth in income from direct TV Licence sales. In 2019, RTÉ was allocated €197m from the TV Licence Fee. Between 2008 and 2014 RTÉ reduced operating costs by €127m (c.30%). These reductions were achieved by tiered pay reductions, a pay freeze, content cuts (in-house and commissioned) and other efficiency savings. Despite this, with the exception of a small profit in 2014 and break even in 2015, operating losses continue to be recorded in most years. The total number of employees at year end 2019 was 1,714 which is a 7% reduction compared to December 2016. The reduction was incentivised by a voluntary exit programme launched in 2017. The target reduction under this scheme was between 200 and 300 staff. However, the take up was below expectations, at 180 staff. RTÉ has a borrowing limit of €100m under the Broadcasting Act 2009. Total borrowings are €95m as of October 2019 so this, coupled with its challenging underlying financial position, means their ability to raise additional funding is restricted RTÉ Strategic Response RTÉ wrote to the Minister in November 2019 to propose a revised strategy in response to the seriousness of their financial situation. The revised strategy included a number of radical measures to cut costs and raise revenue: Pay  A 15% reduction in the fees of top presenters from January 2020.

 RTÉ Board to waive fees.  A paycut of 10% for top executives.  A pay freeze for other staff.  Reducing headcount by a further 200 through voluntary redundancies and movement of NSO staff to National Concert Hall.  Further work practice reforms. Services  Closure of the teletext service Aertel (requires statutory change).  Closure of digital stations such as RTÉ Gold, RTÉ Choice, RTÉ Pulse, RTÉ 2XM, RTÉ Jr radio (this requires a formal application by RTÉ, a sectoral impact analysis by the BAI and Ministerial consent)  More flexibility for advertising minutage (Ministerial consent has been sought and the BAI is currently analysing the sectoral impact of the proposed changes). Asset Disposal  Sale of part of the Donnybrook campus (requires Ministerial consent). There are a number of risks and challenges to delivering these measures including negotiated reforms, substantial industrial relations risks and timing risks linked to service closures and content cuts. In order to develop the proposals further, RTÉ engaged PWC to review its strategy. They have engaged with the Unions regarding the reduced headcount, pay issues and workplace reforms Ministerial consent is required for a number of the measures proposed. While RTÉ considered the sale of a further 9 acres of the Donnybrook campus, Government requested that this decision be deferred until after the Commission reports.

3.4.2 TG4 TG4 (pronounced in Irish as TG Ceathair - see https://www.teanglann.ie/en/fuaim/ceathair for pronunciation)) is the free-to-air Irish-language public service TV channel. TG4, which is funded mainly by the Irish Exchequer, with additional income from the sale of commercial air-time, has responsibility for the provision of a television service whose range of programming is primarily in the Irish language, reflecting the varied elements which make up the culture of the whole of the island of Ireland with special regard for elements that distinguish that culture and, in particular, the Gaeltacht (Irish-speaking) regions. Statutory objectives of TG4 The Act sets out the statutory objects of TG4, as follows: (a) to establish, maintain and operate a national television broadcasting service, which shall have the character of a public service, be a free-to-air service and be made available, in so far as it is reasonably practicable, to the whole community on the island of Ireland, (b) to establish and maintain a website and teletext services in connection with the services of TG4 (c) to establish and maintain choirs and other cultural performing groups in connection with the services of TG4 (d) to assist and co-operate with the relevant public bodies in preparation for, and execution of, the dissemination of relevant information to the public in the event of a major emergency, (e) to establish and maintain archives and libraries containing materials relevant to the objects of TG4 under this subsection, (f) to establish, maintain and operate, in so far as it is reasonably practicable, a television broadcasting service, which shall have the character of a public service, to be made available to Irish communities outside of the island of Ireland, (g) to establish, maintain and operate in so far as it is reasonably practicable, community, local, or regional broadcasting services, which shall have the character of a public service, and be available free-to-air, (h) to establish and maintain non-broadcast non-linear audio-visual media services, in so far as it is reasonably practicable, which shall have the character of a public broadcasting service (such consent not being required in respect of such services which are ancillary to a broadcasting service provided under (i) so far as it is reasonably practicable, to exploit such commercial opportunities as may arise in pursuit of the objects outlined

TG4’s five year strategy TG4’s five year strategy seeks to extend its national reach while also meeting the needs of its core audience. In contrast with RTÉ, TG4 can rely on significantly more predictable income streams. It is less dependent on commercial revenue and is largely exchequer funded since 2019 which protects from the impact of licence fee variations. TG4 will receive €34.2m current and €3m capital in exchequer funding in 2020. A revision of its accounting rules means that some content can be funded through capital funding. As a publisher broadcaster TG4 relies to a greater extent on independent production of content and, as such, it retains more control over its cost base. While TG4 carries no debt and does not run deficits, it has, however, been constrained in its capacity to grow audience share due to financial limitations. Financial constraints also mean TG4 is less able to prepare for future challenges such as the need for increased online content. Funding All TG4’s public funding comes directly from the Exchequer rather than the TV licence fee. In 2020 this amounted to €37.233m. The BAI 5 year review published in 2018 recommended an increase of €6 million in public funding to TG4 over its 2017 funding. In 2018, TG4 was allocated an additional €2m ongoing exchequer funding, comprising €1m current and €1m capital funding. In 2019, TG4 was allocated €443,000 in new Exchequer funding and in the Revised Estimates for 2020; TG4 has been allocated an additional €1m capital funding. This gives a combined total of €3.443m of the €6m recommendation that TG4 has received in ongoing additional public funding since 2017.

4 Regulatory Issues 4.1 Revised Audiovisual Media Services Directive The current version of the Audiovisual Media Services Directive was agreed in 2008 and contains rules and requirements that form the minimum standards that television broadcasting services and on-demand audiovisual media services must follow in the EU. Such services include the RTÉ player, Netflix and Now TV. The revised Directive includes, for the first time specific rules and requirements for video sharing platform services such as YouTube. The revised Directive takes a principles-based approach and requires Member States to ensure that video sharing platform services take appropriate measures to protect minors from harmful content, and all users from hate speech and certain criminal content. The approach set out in the Directive is, therefore, systemic in nature and the role of national regulators is to ensure that the measures taken by video sharing platforms are adequate in practice to address these requirements. The revised Directive will require the regulation of any video sharing platform service established in Ireland for the entirety of the European Union. This is likely to include very well-known and large online services such as YouTube, Facebook and Twitter. 4.2 Online Safety and Media Regulation Bill The Online Safety and Media Regulation Bill transposes the Audiovisual Media Services Directive, which has a due date of September 2020. The General Scheme of the Bill was referred to the Office of the Attorney General for detailed drafting in January 2020. The proposed legislation brings together a number of initiatives, including the transposition of the revised Audiovisual Media Services Directive and certain actions from the Action Plan for Online Safety 2018-2019. Broadly speaking, the proposed Bill would:  Establish a Media Commission which will have all the present functions of the Broadcasting Authority of Ireland;  Dissolve the Broadcasting Authority of Ireland;  Transpose the revised Audiovisual Media Services Directive, including those provisions of the Directive relating to the regulation of video sharing platform services;  Establish a framework for the regulation of online safety to address the proliferation of harmful online content, encompassing the regulation of video sharing platform services, to be administered by an Online Safety Commissioner as part of the Media Commission;  Establish a framework for the regulation of on-demand audiovisual media services to be administered by the Media Commission;

 Provide the Media Commission with appropriate compliance powers, including the power to issue information requests, initiate authorised officer-led investigations and to audit the complaint or issues handling mechanisms operated by online services; and  Provide the Media Commission with appropriate sanction powers, subject to court oversight, including administrative financial sanctions, the power to compel compliance and the power to block online services. 4.3 Regulation of Broadcasting in Ireland The primary legislation governing broadcasting in Ireland is the Broadcasting Act 2009, under which the Broadcasting Authority of Ireland (BAI) is established as the independent regulator for broadcasting. The Act sets out the public service remit and operation of the two public service broadcasting corporations - RTĖ (the original and largest TV and radio broadcaster in the State) and TG4 (the Irish language television broadcaster). The Act also sets out the licensing requirements for commercial radio and TV broadcasting, which is overseen by the BAI. The Act sets out the statutory basis for the Television Licence fee. The fee, which has been frozen at €160 p.a. since 2008, raised €163m in direct sales in 2019, and additional revenues of approximately €60m were derived from the issuing of free licences by the Minister for Employment Affairs and Social Protection to qualifying applicants under the Household Benefit Scheme. In total, the value of licence fee revenues in 2019 was €223m. The Act specifies the criteria for the Broadcasting Fund, which is financed by 7% of net licence fee receipts, generally worth €13-14m p.a.. The Broadcasting Fund, administered by the BAI, currently has two schemes in operation, namely the Archiving Scheme and the Sound and Vision Scheme – the latter which funds content production. 4.3.1 BAI annual review of output targets Under the Broadcasting Act 2009, the BAI is required to undertake an annual review in regard to the extent to which RTÉ and TG4 have met their public service commitments in the previous year, and on foot of that review to make a recommendation to the Minister regarding a licence fee modification for RTÉ, or the amount of funding paid to TG4. 4.3.2 BAI 5-Year Review of Funding of Public Service Broadcasters In addition to the Annual Reviews, the BAI is obliged to conduct Five Year Funding Reviews. The first 5-Year Review of the funding of public service broadcasting was conducted by the BAI in 2012-2013 and the second in 2018 for the period 2018-2022. It recommended additional funding of €30m per annum to RTĖ and €6m to TG4. Of this RTĖ has got approximately €20m to date and TG4 €3.443m.

4.3.3 Governance of Public Service Broadcasters RTÉ and TG4 are each subject to the Code of Practice for the Governance of State Bodies, which requires Oversight Agreements to be signed by the Department and the broadcasters. The Oversight Agreements do not include any additional obligations; rather they describe the roles, responsibilities and obligations of the Department, RTÉ and TG4, as set out in the Broadcasting Act. RTÉ and TG4 provide detailed financial analysis to D/TCAGSM on a monthly basis including revenues, costs and deficit/surplus by channel, service and broadcasting genre and between public-service and non-public service activities. This information is consolidated at year-end and published in RTÉ’s and TG4’s annual reports.

5 Funding of Public Service Broadcasting 5.1 TV Licence Collection Since a low point in 2012, TV licence sales have gradually improved year on year with direct sales in 2019 of 1,025,534 licences. The system is not without its challenges, with the current evasion rate estimated be 12.57%%. While this rate has fallen from 15.25% at the end of 2014, it is still at an unacceptable level considering its UK counterpart has an evasion rate of 7%. Evasion equates to a loss of up to €33.7m per annum to public service broadcasting in Ireland. In addition to evasion, the number of households required to have a licence under current legislation is declining due to a departure from traditional viewing habits, with recent TAM (television audience measurement) estimates suggesting that approximately 10% of homes do not have a traditional TV. Total TV Licence receipts in 2019 were €222.72m consisting of €162.8.54m in direct sales and a €59.9m contribution from DEASP for free TV licences issued under the household benefits package. Out of the total TV licence receipts received by the Department in 2019 RTÉ received €196.54m, An Post €11.38m and the Broadcasting Fund €14.79m. The Fund is administered by the Broadcasting Authority of Ireland (BAI) which receives 7% of licence fee funds to support an archiving scheme and the independent production of high quality indigenous content based on Irish culture and language. An average of 455,439 free TV licences were recorded on the DEASP database for 2019. It was decided as part of Budget 2020 that DEASP would increase their annual contribution by €10m. This has benefitted both RTÉ and the Broadcasting Fund. RTÉ will gain approximately €9m additional public funding as a result of this in 2020. 5.2 Distribution of the Licence Fee In 2019, a total of €222.7 million was generated by a combination of direct TV Licence Sales and receipts from the Department of Employment and Social Protection. €196.5 million was

distributed to RTÉ, €11.3 million to the collection agent (An Post), and €14.8 to the Broadcasting Authority of Ireland. As of end September 2020, TV Licence receipts stand at almost €163 million, of which total payments to RTÉ have been ≈ €138.8 million, and total payments to the BAI in respect of the Broadcasting Fund were ≈ €9.6 million (7% of total licence fee revenues). 5.3 The Broadcasting Fund and the Independent Production Sector The Broadcasting Act 2009 provides that 7% of net television licence fee receipts are payable into the Broadcasting Funding Scheme. The Fund, which is administered by the Broadcasting Authority of Ireland (BAI), supports two distinct schemes: the Sound and Vision (S&V) scheme, and the Archiving scheme. The schemes are open to independent producers and all broadcasters. The total allocated to the S&V Scheme Fund to date in 2020 is €9,621,408.80 The BAI established a Covid-19 funding round (Round 35) under the Sound and Vision Scheme of €2.5m for commercial radio stations. The BAI received a total of 32 applications from independent commercial radio stations across the country. The applications were evaluated according to the COVID-19 Fund assessment criteria, and all 32 applications are being allocated funding. The BAI is currently inviting applications from community radio stations for awards totalling €750,000. On 8 September, BAI launched an open funding round of the scheme, for which €2m in exchequer funding was secured as part of the July Stimulus and which will amount to €4.5m in total. Applications to this round closed on 7 October and decisions will be made in November regarding successful applicants. This round is open to all commercial and community television broadcasters and public service broadcasters. 5.4 Reforming funding of public service media There has been considerable debate and analysis over recent years about how best to reform or replace the TV Licence mechanism for funding public service broadcasting, and whether or not to extend funding for other types of public service media. While overall TV licence revenues have remained relatively stable over the last decade, the static quantum allows no meaningful scope for additional investment in public service media, nor can it serve to address the decline in commercial revenues. In their November 2017 report, the Joint Oireachtas Committee on Communications, Climate Action and Environment recommended the replacement of the TV licence with a broadcasting charge. Subsequently, an interdepartmental Working Group on the Future Funding of Public Service Broadcasting examined the options and identified a number of challenges relating to the

introduction of a broadcasting charge. In its report of April 2019, the working group recommended a phased approach to funding reform, starting by putting the collection of the television licence fee out to public tender for a 5 year contract; a medium-term replacement of the TV Licence Fee with a device-independent Broadcasting Charge, and a communications strategy to inform the public of planned changes.

Annex I – Additional reading material

Funding 2013 VFM Introduction of Public Service Broadcasting Charge and Public Consultation re same. https://www.dccae.gov.ie/en- ie/communications/consultations/Pages/Consultation-on-Public-Service-Broadcasting- Charge.aspx Olsberg Report: Economic Analysis of the Audiovisual Sector in the Republic of Ireland, 2017. https://www.chg.gov.ie/app/uploads/2018/06/economic-analysis-of-the- audiovisual-sector-in-the-republic-of-ireland.pdf Joint Oireachtas Committee Report on Future Funding of Public Service Broadcasting https://data.oireachtas.ie/ie/oireachtas/committee/dail/32/joint_committee_on_commu nications_climate_action_and_environment/reports/2017/2017-11-28_report-on-the- future-funding-of-public-service-broadcasting_en.pdf 2018 Report of the Working Group on the Future Funding of Public Service Broadcasting https://www.dccae.gov.ie/documents/Working_Group_on_Future_Funding_of_Public_Se rvice_Broadcasting-Final_Report_2019.pdf Irish Newspaper circulation numbers, July 2020. https://www.ilevel.ie/print/abc-irish- newspaper-circulation-july-2020/ Statistics Broadcasting Services Strategy 2018-2022 https://www.bai.ie/en/consultations/draft- broadcasting-services-strategy-bss/ A Report on market structure, dynamics and developments in Irish Media, Mediatique on behalf of the BAI, December 2017 https://www.bai.ie/en/media/sites/2/dlm_uploads/2018/04/180410-Mediatique- Report.pdf TAM Ireland TV review 2019 https://www.tamireland.ie/downloads/2019tamtvreview/ JNLR Listenership Figures February 2020 https://www.bai.ie/en/latest-jnlr-figures- released-15/ “Old, Educated, and Politically Diverse: The Audience of Public Service News,” Anne Schulz, David A. L. Levy, and Rasmus Kleis Nielsen Reuters Institute Report September 2019 https://reutersinstitute.politics.ox.ac.uk/sites/default/files/2019- 09/The_audience_of_public_service_news_FINAL.pdf Reuters Digital News Report Global 2020 http://www.digitalnewsreport.org/

How are PSBs Delivering against the PSB Aims BAI Five-Year Review of Public Funding for Public Service Broadcasters and BAI Report and Recommendations to the Minster for Communications, Climate Action and Environment June 2018 https://www.dccae.gov.ie/en- ie/communications/publications/Documents/71/Five_Year_Review_of_Funding_of_Public _Service_Broadcasting_2018.pdf BAI Annual Review of Performance and Public Funding of Public Service Broadcasters, 2018 A report for the Broadcasting Authority of Ireland FINAL REPORT November 2019 https://www.dccae.gov.ie/documents/Annual_Review_of_Public_Funding_for_Broadcasti ng_2018.pdf Annual Report TG4 2019 [forthcoming] Annual Report RTÉ 2019 [forthcoming] Younger Audience/Gen Z https://fujomedia.eu/how-are-young-irish-people-engaging-with-journalism/ Reuters Digital News Report Ireland 2020 https://fujomedia.eu/wp- content/uploads/2020/06/DNR-2020-Report-Web-version_DMB.pdf An exploration of people’s relationship with PSB, with a particular focus on the views of young people, Qualitative Research Report, July 2020 Ofcom https://www.ofcom.org.uk/__data/assets/pdf_file/0024/199104/exploration-of-peoples- relationship-with-psb.pdf EU Examples EUROPEAN COMMISSION PRESS RELEASE Brussels, 20 November 2013 State aid: Commission approves Danish support scheme for written media https://ec.europa.eu/commission/presscorner/detail/en/IP_20_793 5.4.1 International Examples Australian Competition and Consumer Commission Digital Platforms Enquiry Final Report Executive Summary 26 July 2019 https://www.accc.gov.au/system/files/Digital%20platforms%20inquiry%20- %20final%20report%20-executive%20summary.pdf Australian Competition and Consumer Commission Digital platforms inquiry - final report 26 July 2019 https://www.accc.gov.au/system/files/Digital%20platforms%20inquiry%20- %20final%20report.pdf 5.4.2 Print Report on Ownership and Control of Media Businesses in Ireland 2015-2017 https://www.dccae.gov.ie/en-

ie/communications/publications/Documents/60/BAI%20%20Report%20Ownership%20Co ntrol%20Media%20Businesses%202012-2014.pdf THE CAIRNCROSS REVIEW: A SUSTAINABLE FUTURE FOR JOURNALISM 12TH FEBRUARY 2019 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/atta chment_data/file/779882/021919_DCMS_Cairncross_Review_.pdf Government Response to the Cairncross Review https://www.gov.uk/government/publications/the-cairncross-review-a-sustainable- future-for-journalism/government-response-to-the-cairncross-review-a-sustainable- future-for-journalism Irish Media for the Centre of Media Pluralism and Freedom: Roderick Flynn (Dublin City University), October 2015 https://cmpf.eui.eu/mpm-2015/ireland/ PSB in the Digital Age: Ofcom March 2018 https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.ofcom.or g.uk/__data/assets/pdf_file/0026/111896/Public-service-broadcasting-in-the-digital- age.pdf&ved=2ahUKEwi0u7WqufLrAhVfaRUIHeCyBrEQFjASegQICBAB&usg=AOvVaw3nKh7 535tvdeZzEyHaZmrw Auntie Knows Best? Public Broadcasters and Current Affairs Knowledge Stuart Soroka et al B.J.Pol.S. 43, 719–739 Copyright Cambridge University Press, 2012 Globalization and Pluralism The Function of Public Television in the European Audiovisual Market Teresa La Porte, Mercedes Medina and Teresa Sádaba The International Communication Gazette 2007 The significance of small differences: Cultural diversity and broadcasting in Ireland Jim Rogers, Neil O’Boyle, Paschal Preston and Franziska Fehr European Journal of Communication 2014, Vol. 29(4) 399–415 Comparative Papers Donders K. Public service media beyond the digital hype: distribution strategies in a platform era. Media, Culture & Society. 2019;41(7):1011-1028. https://journals.sagepub.com/doi/full/10.1177/0163443719857616 Adapting Public Service to the Multiplatform Scenario Hans Brudow Institute 2012 https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.hans- bredow- institut.de/webfm_send/661&ved=2ahUKEwj5lOb3vfLrAhWRWhUIHR0BBAMQFjABegQIA RAB&usg=AOvVaw3ZWUjB2hW14x-l7rFaEr1P Harnessing public broadcasting for Canadians in the digital age International benchmark study for the CRTC Study by Cullen International November 2019 https://crtc.gc.ca/eng/publications/reports/2019-cullen/clln19.htm

EU Audio Visual Observatory Yearbook 2019/2020 Key Trends Television, Cinema, Video and on-demand Audiovisual services -The pan-European picture https://www.obs.coe.int/en/web/observatoire/- /yearbook-2019-2020-key-trends#62890456_32492842_True