Television across Europe: regulation, policy and independence Italy MONITORING TELEVISION ACROSS EUROPE Table of Contents 1. Executive Summary ....................................................... 869 2. Context ......................................................................... 871 2.1 Background: the Premises of the Current Duopoly ................................................................. 871 2.2 Structure of the Italian television market ................ 878 2.3 The main players in the Italian broadcasting market .................................................................... 879 2.3.1 Publicly accessible generalist television ......... 880 2.3.2 Pay-TV ....................................................... 882 2.3.3 Digital terrestrial broadcasting ..................... 882 3. General Broadcasting Regulation and Structures ........... 884 3.1 Regulatory authorities for the television sector ........ 884 3.1.1 The Parliamentary Commission for General Guidance and Supervision of Broadcasting Services .................................. 885 3.1.2 The Government ........................................ 886 3.1.3 The Communications Guarantee Authority (AGCOM) .................................. 887 3.1.4 The Competition Authority and the Regions ....................................................... 891 3.2 Licensing and enforcement measures ...................... 891 3.3 Independence of public television ........................... 895 3.3.1 From the reform of RAI (1975) to the reform of broadcasting (1990) ..................... 895 3.3.2 From the reform of broadcasting to the Berlusconi years ........................................... 897 4. Regulation and Management of Public Service Broadcasting ................................................................. 901 4.1 The public broadcasting system .............................. 901 4.2 RAI’s financing ....................................................... 904 4.3 Governance structure .............................................. 906 866 OPEN SOCIETY INSTITUTE 2005 ITALY 4.3.1 Present governance structure ........................ 906 4.3.2 Proposed changes ......................................... 907 4.4 Public Service Broadcasting Programming .............. 909 4.4.1 Output ........................................................ 909 4.4.2 RAI programme guidelines .......................... 911 4.5 Editorial standards .................................................. 912 5. Regulation and Management of Commercial Broadcasting .................................................................. 913 5.1 The commercial broadcasting system ...................... 913 5.2 Commercial television ownership ............................ 917 5.2.1 Corporate structure of the main players and cross-ownership ..................................... 919 5.3 Funding .................................................................. 922 5.4 Programme framework ............................................ 926 5.4.1 Independence and impartiality of news information ......................................... 926 5.4.2 Guidelines on commercial television programming ............................................... 927 6. Compliance with European Union Policy ...................... 929 7. The impact of New Technologies and Services ............... 933 7.1 Digital television ..................................................... 933 7.2 New media ............................................................. 936 7.3 Public debate on digitalisation ................................ 938 8. Conclusions ................................................................... 939 9. Recommendations ......................................................... 942 9.1 Policy ...................................................................... 942 9.2 Regulatory authorities ............................................. 942 9.3 Public and private broadcasters ............................... 943 9.4 Public broadcaster ................................................... 943 9.5 Private broadcasters ................................................. 944 Annex 1. Table .................................................................... 946 Annex 2. List of legislation cited in the report ...................... 948 Annex 3. Bibliography ......................................................... 951 EU MONITORING AND ADVOCACY PROGRAM ( EUMAP) NETWORK MEDIA PROGRAM ( NMP) 867 MONITORING TELEVISION ACROSS EUROPE Index of Tables and Figures Table 1. Overview of the television market ........................................................ 879 Table 2. Map of national television channels ..................................................... 880 Table 3. Average annual audience share of the main television stations (2002–2003) ......................................... 883 Table 4. RAI financing sources (2002–2003) ..................................................... 904 Table 5. Total television airtime of RAI (2002–2003) ....................................... 910 Table 6. RAI radio broadcasting programming – breakdown by genre (2003) ................................................................. 911 Table 7. Total revenues of the main television broadcasters (2002–2003) ........... 922 Table 8. Sources of revenue for the television broadcasting market (2002–2003) ....................................................... 923 Table 9. Total advertising spending– breakdown by media sector (2003) ........... 923 Table 10. Television advertising revenue (net) – breakdown by television channel (2003) .............................................. 925 Table 11. Internet penetration (2001–2004) ....................................................... 937 Table A1. Main laws regulating broadcasting in Italy ........................................... 946 Figure 1. Structure of Gruppo Mediaset SpA (2004) ............................................. 921 List of Abbreviations AGCOM Communications Guarantee Authority, Autorità per le Garanzie nelle Comunicazioni RAI Radiotelevisione Italiana S.p.A. SIC Integrated communication system, Il sistema integrato delle comunicazioni 868 OPEN SOCIETY INSTITUTE 2005 ITALY 1. EXECUTIVE SUMMARY The Italian broadcasting system is distinguished by controversial involvement of politicians, especially in the State-owned broadcaster, RAI, which has always been strictly controlled by the Government and political parties. When commercial television began in the 1970s, in a totally unregulated marketplace, it changed the media scene and the advertising market, as well as the political stakes. In the mid- 1990s, commercial television played a significant role in the rise to political stardom and power of Prime Minister Silvio Berlusconi, a northern entrepreneur with a formidable media arsenal. The principal players in the present broadcasting market are RAI and Mediaset, which, thanks to the duopoly created by the alliance between politics and the media, divide up most of the audience and advertising resources. Other competitors have recently tried to enter the market, but they still lag far behind the two dominant players in terms of available infrastructure and ratings. The super-concentration that characterises Italy’s broadcast sector, the confusion created by the collusion between the media and the political establishment, and the excessive attention of the executive to the management of the public networks are not just “Italian anomalies”. These problems represent imminent potential threats to any democratic system, and especially to the transitional democracies of Central and Eastern Europe. Italy is only the first front in the struggle to develop and implement common rules for the relationship between the media and the governing class. Italians are used to the “television issue” – it has been with them for decades and is not close to a solution. While it is impossible to break up the duopoly and open up the market to other competitors without strong legislative action, the Government has been touting another strategy: promoting digital terrestrial broadcasting in order to increase the number of available networks. However, the two major players have already seized a large quantity of frequencies, thereby helping to perpetuate their dominance. The rules governing Italy’s media are still extremely haphazard, and often inconsistent with European Union (EU) policies. This poor regulation, and the fact that the Government is currently led by a media tycoon, have raised serious concerns about media freedom. The international community – including the European Parliament, the Council of Europe and other influential international institutions and advocacy groups – have responded by issuing formal warnings and recommendations for Italy to resolve the anomalies of its media system. Berlusconi may have handed over the management of his empire to third parties, mostly members of his family, but as long as he remains the majority shareholder of Fininvest, and thus of Mediaset, the independence of the newsrooms in his television channels and news magazines will remain in question. Furthermore, if, as has happened on many occasions, Berlusconi is also outspoken on information-related issues and is EU MONITORING AND ADVOCACY PROGRAM ( EUMAP) NETWORK MEDIA PROGRAM ( NMP) 869 MONITORING TELEVISION ACROSS EUROPE not shy about influencing his networks, the absolute ineffectiveness of regulations guaranteeing honest, pluralist and balanced information stands exposed. The 2004 Gasparri Law