1 Introduction, Aims and Methodology

1 Introduction, Aims and Methodology

Notes 1 Introduction, Aims and Methodology 1. The Media Plus programme was originally scheduled to run until 2005 with a budget of 400 million Euros. The proposal to extend it was approved by the Council of Ministers on 26 April 2003, in line with the modifica­ tions made by the European Parliament, to take account of the effects of enlargement from 2004. 2. This book largely uses the term 'public' rather then 'state' television because this term fits better its social remit and contribution to the 'public interest'. However, the research takes into account the differences between state broadcasters, closely connected to political regimes (characteristic of most broadcasters in the southern Europe) and more independent public broad­ casters of the northern countries. 3. Many scholars argue that 'quality' is the defining feature of public broad­ casting (McQuail, 1992; Iskikawa, 1996; Brands and de Bens, 2000). A widely accepted definition of quality programming is content that is dis­ tinctive, informative, socially relevant and accessible to all. It is of course difficult to measure in any quantitative and objective way how well the programmes screened by public channels meet the standards of quality. For this purpose the McKinsey & Company (1999) report measured the amount of time devoted to factual and cultural programmes, as well as to shows for children and called this kind of programming 'distinctive'. The British media regulatory agency Ofcom (2004) considered total spend by programme genre, spend per hour by genre and the level of first-run ori­ gination by genre as contributions to an evaluation of the quality of out­ put, as they indicate the level of resources being spent on each genre. Whatever the definition of quality, most market reports and media scholars agree that quality does not automatically generate viewers. 4. The package includes the following elements: a directive on the common regulatory framework for electronic communications networks and ser­ vices (framework directive); an authorisation directive; an access and inter­ connection directive; a directive on universal service and users' rights relating to electronic communications networks and services; and a deci­ sion on a regulatory framework for radio spectrum policy. 5. However, in july 2006 the Court of First instance (Europe's second highest court) overturned the Commission's decision to allow the two record labels to merge. It ruled that the EC's arguments supporting the Sony/BMG merger in 2004 were not of 'the requisite legal standard' and were marred by 'a manifest error of assessment' (see http://www.out-law.com/page-7111 accessed August 2006). 185 186 Notes 6. Although the notion of the 'public interest' in the media field is multi­ dimensional, it is this author's view that television channels serve the pub­ lic interest only when they: (a) provide programming diversity that can satisfy all viewers, including the minorities; (b) offer high-quality content; (c) ensure viewer access to programmes regardless of geographical locations; and (d) guarantee accuracy and impartiality, espedally with regards to news and current affairs. 7. The three large countries of Britain, France and Spain, with about 160 mil­ lion inhabitants, account for almost one third of the total population of the EU25. 8. These countries were Poland, Czech Republic, Hungary, Slovak Republic, Lithuania, Latvia, Slovenia, Estonia, Cyprus and Malta. Romania and Bulgaria joined the EU in January 2007. 2 Factors Affecting the Development of Public Television 1. Initially, Freeview was jointly owned by the BBC, BSkyB and transmission company Crown Castle, but in October 2005 lTV and Channel Four each took a 20 per cent stake. The Freeview platform is strategically important to both companies since ITV1 and Channel Four perform relatively well in share terms in OTT homes, where viewers have fewer channels to choose from, compared to satellite and cable. The BBC, BSkyB and National Grid Wireless are the remaining shareholders (Ofcom, 2006). 2. Member States' switchover plans are available at: http:/ /europa.eu.int/ information_society/topics/ ecomm/highlights/current_spotlights/switcho ver/national_swo_plans/index_en.htm (accessed February 2006). 3. A company is said to be in a dominant position when it has control of the total process, from raw material to distribution to sales. This situation implies power to seize out potential competitors and distorts the economy with monopolistic control over prices. 4. For example, the public broadcasters of the Nordic countries have collab­ orated with private operators and reached an agreement on a common, open standard for set-top boxes in the region (the NORDIG cooperation). 5. There have been various terms to describe the emerging shape of the televi­ sion landscape - de-regulation, re-regulation and light touch regulation. Perhaps 're-regulation' or 'light touch regulation' most appropriately describe today's broadcasting landscape, because what is being witnessed, as Murdock (2000, p. 41) has pointed out, is not a total dismantling of rules but a shift of emphasis towards relaxation. 6. One of the main proponents of the conservative camp was Veljanovski (1990), but even left-wing scholars, such as Garnham (1978) and Kean (1991) have taken a critical stance against the practices of some of the pub­ lic broadcasters and suggested that public institutions should take steps to reform and get away from direct state control and coercion in order to fulfill their public service mission. Notes 187 7. The media address their audiences as 'citizens' when they seek to involve them in social issues, while the basic meaning of 'consumer' is that of 'potential buyer of products and services'. The consumer-citizen dichotomy has been challenged by Syvertsen (2002, cited in Meijer, 2005) who pro­ posed replacing it with a division of about ten audience groups. Meijer (2005) also questioned the relevance of this dualism and argued that the media could conceive the members of the audience as 'enjoyers' (what impact particular programmes have on them), rather than as members of pre-given groups. 8. However, the purchase led to a record $98.7 billion loss in 2002 and caused the shares to tumble as the promised profit and sales growth never emerged (see http://www.washingtonpost.com/wp-dyn/content/article/2005/05/ 20/AR2005052001512.html, accessed September 2006). 9. For example, in the 1980s the two US media content giants Disney and Viacom acquired the American television networks ABC and CBS respect­ ively. At the same time the Japanese electronics company Sony entered the American film production and distribution market. 10. Until1989 the EC had powers to act against anti-competitive mergers and acquisitions only after they have taken effect and a restrictive practice or dominant position is established or strengthened. For many years the EC had argued that it should have new, pre-emptive powers that would remove the uncertainty of retrospective action for the parties involved. In fact, competition rules that intervene after a problem of imbalance has arisen (for example, an anticompetitive practice has been established or a dominant position has already been created) may not be able to rem­ edy the situation. The Merger Regulation was intended to deal with that problem. 11. Of course there are several limitations with regard to any consumption of moving images, which may lessen the value of such services. These limi­ tations include the quality of images and sound, the high cost of usage linked to technology, and the limited battery/power capacity. 12. Commercial broadcasters in Spain (1992, 1993), France (1993), Portugal (1993, 1996, 1997), Italy (1996), Germany (1997, 2003), Britain (1997, 1999), Ireland (1999), Denmark (2000) and the Netherlands (2002) have filed complaints against a European PTV broadcaster. These complaints largely concern State Aid issues and some of them are still unresolved. 13. The Commission's approach in its Communication on the Application of State Aid rules to public service broadcasting (EC, 2001) is to require member states to define the remit of their public broadcasters, to entrust their remit to one or more broadcasting organisations, and to establish effective means of monitoring its fulfilment. 14. Apart from the Amsterdam Protocol, the Resolution of the Council of 25 january 1999 also stresses that public broadcasting must be able to con­ tinue to provide a wide range of programming in order to address society as a whole; in this context it is legitimate for the public sector to seek to reach wide audiences. 188 Notes 3 Competition and Dilemmas 1. These factors are listed as possible explanations of ERT's chronic problems in a number of reports conducted in the past 30 years: former BBC DG Sir Hugh Green's suggestions in 1975; the report of BBC experts Alan Hart, Michael Johnson and Peter Marshount in 1990/91; the conclusions of a 1992 Ernst & Young report; and the proposals of the Committee of ERT's employee's POSP in May 1997. 2. However, the EPC's study found that advertising revenues for the same period only increased by 2.9 per cent, compared with the 4.7 per cent rise of public revenue. When calculating public revenue for broadcasters the EPC includes state grants and subsidies, in addition to the licence fee. 3. This is why the European TV market is characterised by high levels of con­ centration as different operators join forces to stem huge advertising losses. Recent technological developments, such as TiVo, which allow the viewer to skip advertisements, have exaggerated the problem. Some television channels have searched for alternative funding sources by, for example, introducing subscription. 4. The only exception being Greece, in which the public broadcaster ERT has also been subject to political intervention. S. These trends can be identified in other Mediterranean countries. In response to competition from commercial rival SIC in the early 1990s, Portuguese public channel RTP-1, which is more mainstream than the cul­ turally oriented RTP-2, adapted a more populist tone and began screening more infotainment, game shows, and Brazilian telenovelas, especially in prime-time.

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