Public Value Test Proposed RTÉ Channels and Services DCENR Request for Information 4th October 2010 15th November 2010 - 1 - Table of Contents Executive Summary 3 Introduction 6 1. Names of Channels / Services 8 2. Fit with RTÉ’s Public Service Objects & Strategy 9 3. Compatibility of Services with Council Directives and Recommendations of the Council of Europe 12 4. Accessibility of Services 16 5. Lifetime of Services 17 6. Costs and Revenues 18 7. Meeting the Needs of Irish Society 25 8. Reaching Underserved Audiences 60 9. Promoting New Services and Technologies 63 10. Contribution to Media Plurality 64 11. Broadcast Hours of New Services 69 12. Contribution to Media Competition 70 13. Impact of Services on Market versus Public Value 72 14. Involvement of RTÉ in New Areas of Activity 73 Conclusion 74 Appendices 75 - 2 - Executive Summary RTÉ is proposing to launch five permanent new services on SAORVIEW, the Digital Terrestrial Television (DTT) platform in May 2011. These services will contribute to the fulfilment of RTÉ’s public service objectives and will provide added value to the Licence Fee payer. In October 2010, the Department of Communications, Energy and Natural Resources (DCENR) wrote to RTÉ requesting comprehensive responses on a list of fourteen questions (See Appendix C) to facilitate ministerial deliberation on RTÉ’s proposals. This document has been collated in direct response to these questions. It must be noted that there is some overlap in the responses to certain questions. Description of Services The five services discussed in this document are as follows: RTÉjr : an advertising-free, daytime service for toddlers and children aged 0-6 years, the schedule will include Irish and acquired programmes and will ensure that our youngest audiences are never more than thirty minutes away from Irish production, stories and output. RTÉ Two HD Select (Working Title): a technological improvement of RTÉ Two, with the same schedule as the current RTÉ Two channel. However, any programmes available in HD will be broadcast in HD, this will included sports coverage, quality acquisitions (e.g. Desperate Housewives, CSI) and recent feature films. RTÉ News Now: a 24 hour news channel, with about eleven live news bulletins per day, live current affairs programmes; catch-up on recent news and current affairs, live coverage of special events, breaking news and Euronews. RTÉ Plus (Working Title):: a mixed genre channel which will be on from 7pm to 2am. Its schedule will include live sport; another chance to view the best of RTÉ’s home produced programming, archive programming and high quality Irish documentaries; Irish film nights and quality acquired US and UK series. [Due to technological constraints, for an initial phase of 12 months, this channel will be RTÉ One+1, an exact replica of RTÉ One, with an hour delay.] RTÉ Aertel Digital: an improved digital version of the RTÉ Aertel Teletext service, which is modern, fast and user-friendly. The service will offer users up-to-date and accessible news, sport, weather and other information. For a full description of the proposed services, please see Appendix A. Further functional information on the services is provided in response to questions 5 and 11. Delivery of Public Service Remit & Serving Irish Society All the new services have been designed in accordance with RTÉ statutory obligations and strategy. The proposed services will be available free-to-air to - 3 - all the people of Ireland. The reach of these new services is described in response to Q4. All the proposed services have the “character of a public service”. RTÉ is proposing a diverse range of quality programming and programme schedules for the Irish citizen that will appeal to mass and niche audiences and will apply the highest standards of editorial integrity, independence, objectivity and fairness. The services will support RTÉ’s remit, by broadening access to RTÉ’s independent and trusted news and current affairs programmes. These new services will contribute to RTÉ’s fulfilment of its remit by promoting new technologies. RTÉ’s engagement in digital broadcasting and HD television will promote innovation and experimentation in the Irish broadcasting industry and provide widespread and low cost access to these important technologies. The response to Q2 describes the importance of these services to the delivery of RTÉ’s remit. The response to Q3 outlines the compatibility of these proposals with the Audiovisual Media Services Directive and the recommendations of the Council of Europe in respect of public service broadcasting. Audience Appeal & Accessibility RTÉ’s ethos can be encapsulated in the phrase “Putting the audience first”. To ensure that the audience is central to RTÉ’s service delivery and strategic planning, RTÉ participates in and conducts a wide range of audience research and consultation. A selection of the audience research which has informed RTÉ’s planning for these services is provided in response to Q7. This research demonstrates the demand for the services RTÉ has proposed. Information is also provided regarding the audiences served and the usage, audience impact and perceptions of quality of RTÉ’s output. Underserved audiences will be better catered for with these services. With RTÉjr there will be a dedicated, Irish service for younger Irish children for the first time ever, while over 7s will continue to be comprehensively catered for. RTÉ News Now will be the only Irish 24-hour dedicated news channel and means that Irish news audiences will have wider access to a wide range of RTÉ’s esteemed news and current affairs programmes. Irish terrestrial households and households without internet access (which tend to be more isolated, in some instances, rural and are often more disadvantaged than average) will be significantly better served with the new services: In particular, RTÉ Plus will provide another chance to view quality Irish programming, high quality acquisitions etc. in a way that is currently only available to those with internet access through the RTÉ player. RTÉ Aertel Digital will provide access to fast, up-to-date and user-friendly short-form information for those without computers or internet access. RTÉ Two HD - 4 - Select will provide free-to-air access to the benefits of content produced in HD to Irish audiences. The response to Q8 furnishes further information on the above. Societal Impact Digital Terrestrial Television (DTT) has many advantages over the equivalent analogue service. It will allow a greater number of television channels to be carried in the same capacity, the quality of the sound and pictures is better and it will also allow high definition (HD) and interactive services. RTÉ is obliged under law to facilitate ASO and is committed to the success of DTT in Ireland. Prior to the launch of DTT, only those who can afford pay television subscriptions have enjoyed the benefits that digital broadcasting allows. RTÉ’s launch of DTT in Ireland will begin to democratise these benefits, providing universal, free-to-air access to digital television to Irish audiences. HD is likely the next step in television service enhancement. It allows better quality picture and sound and is already widely available in Ireland (Sky offer 50+ channels, UPC offer approximately 10). As Ireland’s largest public service media organisation, RTÉ must be involved in championing and supporting this innovation. Currently there is a small proportion of indigenous content being produced in HD in Ireland. RTÉ’s entry into this market will stimulate uptake of this technology and ensure that it keeps up with international competitors, as well as ensuring that viewers of free to air television in Ireland are as well served as those in other countries. These issues are expanded upon in response to Q9 and Q14. Media Plurality Ireland has one of the most open and competitive media landscapes in the world. As a small English speaking country, with strong links to the UK and the US, Irish people now have access to a truly globalised range of television channels as well as huge choice in radio and print media sources. RTÉ’s new services will contribute to the diversity of content available to Irish audiences and provide content that is distinctively Irish and tailored to their needs. These services should open up new markets in Ireland by encouraging the uptake of DTT and enhancing the competitive landscape. The contribution of these services to media plurality is discussed in detail in response to Q10 and Q12. Value for Money The proposed new channels / services will be funded out of existing resources, providing even more value for money for Irish TV Licence fee payers. The value derived from RTÉ’s substantial investment in home produced programmes, sports rights and acquired series will be increased through strategic complementary scheduling . Detail of the costs and revenues associated with the proposals are provided in response to Q6, also see Q13 for more on this. - 5 - Introduction RTÉ welcomes the opportunity to respond to the questions posed by DCENR in their letter of 4 th October 2010 related to its assessment of the public value of the new television channels and services being proposed by RTÉ for carriage on the new Irish Digital Terrestrial Television (DTT) service, to be called SAORVIEW .1 The Irish media landscape has been transformed over the last twenty years or so, not least by the convergence of information and communications technologies with content and broadcasting. This convergence has now happened. As a result on-demand, anywhere, anytime digital media content is being distributed and consumed across all delivery platforms, from broadcasting to the Internet and mobile technologies. Ireland is focused on how to best leverage the Smart Economy 2 and create a truly inclusive Knowledge Society for Irish citizens, so that the ‘digital dividend’, in terms of e-Inclusion, may be enjoyed by everyone in this society.