PUBLIC SERVICE BROADCASTING- THE INDIGENOUS PRODUCERS PERSPECTIVE - Submission to the Joint Oireachtas Committee on Communications, Climate Action ...
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PUBLIC SERVICE
BROADCASTING-
THE INDIGENOUS
PRODUCERS
PERSPECTIVE
Submission to the Joint Oireachtas Committee on Communications, Climate
Action and Environment.
November 2016
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© 2016 | SCREEN PRODUCERS IRELANDFunding for PSBs- The Indigenous Producers Perspective
Introduction
Screen Producers Ireland is the national representative organisation of independent film,
television and animation production companies. SPI promotes the growth and sustainability of a
working environment conducive to a strong independent production sector for its 130 members
and the industry as a whole. We address the needs of the sector and, using our knowledge and
expertise, we aim to deliver a strong and sustainable position for Irish production companies. We
are focused on shaping an independent production sector that is comparable to best international
standards. We encourage state organisations charged with developing the industry to put in place
development plans and policies for the sector that will maximise its potential.
Screen Producers Ireland members produce programmes such as Vikings, Room to Improve, Red
Rock, Ros Na Ruin, BB agus Bella, Ear to the Ground, Dragons Den, What are you Eating, Other
Voices and Seven Women. They have produced Oscar nominated films such as Brooklyn and Room
and are also responsible for GAA and rugby coverage on TG4.
Screen Producers Ireland (SPI) believes that strong and adequately funded Public Service
Broadcasting is essential for a healthy indigenous production sector. SPI is pleased to have been
invited to discuss Public Service Broadcasting with the Oireachtas Joint Committee on
Communications, Climate Action and Environment and welcomes this opportunity to contribute to
the debate.
In this submission we propose to outline the importance of both the indigenous production
sector and our PSBs and then to highlight their interdependence on each other. We will then
offer our suggestions for stabilizing PSB funding and for improving the relationship between
PSBs and independent producers.
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© 2016 | SCREEN PRODUCERS IRELANDThe Importance of Independent Film, Television and Animation Productions to the
Economy and to our Cultural Heritage
The indigenous film and TV production sector is a creative industry and an important strand of
Irish ‘arts’. It makes a significant and positive cultural and economic impact to Ireland. It allows us
to create and preserve our cultural heritage in a format that has mass appeal and is viewed by
large audiences both at home and abroad. Indigenous productions capture and promote our
national identity and chronicle what it means to be Irish. Irish films reinforce our reputation as a
creative nation of storytellers and market ‘brand Ireland’ abroad.
Furthermore, film and television productions take a snapshot of contemporary culture as well as
preserving our cultural heritage. Indigenous productions embrace the potential to engage young
people in the expression and dissemination of Irish culture. The Remembering 1916 celebrations
benefitted from many high-quality indigenous productions which helped frame the national mood
and generate public interest and discourse on the events being remembered.
Recent Oscar successes of films created by strong Irish talent increase awareness of the creative
talent available in Ireland and bring Ireland to life on screen for international audiences.
Indigenous productions are also economically beneficial to the state. Independent producers and
production companies employ several thousand people and are an intrinsic part of an eco- system
that nurtures the type of creative talent that attracts big-budget productions.
TV drama has spent an average S481 expenditure of €100m per annum in the past three years.
Film productions also made a substantial contribution to the economy in 2014 and 2015 with
€41m per annum of S481 expenditure. Animation averaged €30m per annum in the same period.
In 2010, an exit survey of tourists leaving the country found that 20% of tourists indicated that
films influenced their choice of Ireland as a destination. This shows that Irish films also have a
significant positive impact on tourism levels.
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© 2016 | SCREEN PRODUCERS IRELANDA full assessment of the economic impact of the audiovisual sector has now been jointly
commissioned by the Department of Arts, and the Department of Communications and SPI
believes that the findings will further highlight the economic significance of the sector.
The Importance of Public Service Broadcasters
A strong PSB service is vital to provide a platform for Irish Arts and heritage as well as for unbiased
public discourse. National conversations are often necessary to educate the general public on
relevant issues and developments. These are usually started and steered by our public service
broadcasters who provide a platform for all sides of a debate and for politicians to communicate
with the electorate. The absence of such a platform would likely lead to a less informed and less
engaged electorate.
According to a European Broadcasting Union (EBU) report 1 published in June 2016, there is a
positive correlation between higher levels of public service media market share and voter turnout.
Higher levels of public service media market share were also found to have a positive effect on
social cohesion and led to less right-wing extremism and less corruption. Allowing the market
share of our public service broadcasters to decrease due to inadequate funding would likely lead
to a more fragmented and apathetic society.
In addition to being an important tool for public policy and debate, public service broadcasters
preserve our cultural heritage through documentaries and programming that appeals to the Irish
audience. They preserve our national identity and build an archive of programming that tracks
changes in our culture and history.
1 PSM Correlations: Links Between Public Service Media and Societal Well-Being. EBU. June 2016.
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© 2016 | SCREEN PRODUCERS IRELANDThe Relationship Between our Public Service Broadcasters and Independent
Producers
It is imperative that policymakers understand the importance of our Public Service Broadcasters
to the independent production sector. PSBs nurture growth within the independent production
sector and give our creative talent a platform to present their works.
An adequately funded PSB system is essential for a healthy indigenous production sector. Security
of funding allows RTÉ to commission independent productions. This, combined with Irish Film
Board and BAI funding, ensures an active independent production sector which allows Irish
creative talent and producers to gain experience and skills. This experience and skills base is what
eventually attracts larger- scale international productions to shoot in Ireland. RTÉ and TG4 act as
incubators for Irish producers and production talent. Independently produced programming
funded by RTÉ and TG4 are an essential component in the development of the sector.
The audiovisual sector is currently experiencing many disruptive challenges in the form of new
technologies and changes in consumption patterns. Viewing patterns are increasingly favouring
on-demand content via internet streaming over traditional cable viewing. Ireland’s public service
broadcasters need to be adequately resourced to adapt to this new environment. They are
competing on a global scale with well funded channels that can offer a constant stream of new
programming to their audience.
RTÉ and TG4 will not be able to compete with these new challenges without adequate funding.
Indigenous producers must also adjust to meet the rapidly changing demands and opportunities
being created in the industry. It is vital that they benefit from the incubation assistance of a strong
PSB so that they can scale up to level where it is possible for them to compete internationally.
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© 2016 | SCREEN PRODUCERS IRELANDAddressing the PSB Funding Issue in Two Steps
Introduce a Household Media Charge
Government must act now to provide security of funding to RTÉ and TG4 before we lose these vital
services. Screen Producers Ireland is aware that Minister Naughten has stated that he will not be
pursuing the introduction of a Household Media Charge. We believe that this is a misguided and
shortsighted choice and urge the Communications Committee to recommend that the Minister
reverse this decision.
The current TV licence fee is no longer fit for purpose. Consumers are moving from traditional
television viewing to streaming content from digital platforms. In 2009, 2.5% of Irish households did
not have a TV. That figure has now increased to 8%. People are choosing to forego purchasing a
television set in favour of other screen options. As this trend continues, the funding pot available to
our public service broadcasters will continue to decrease.
In addition to the 8% of households now without a television and therefore not obligated to
purchase a TV Licence, Ireland has one of the highest TV Licence Fee evasion rates in Western
Europe. It is currently estimated to be 13.7%, amounting to €40 million in lost revenue per annum.
We are aware that the Minister is seeking to address this evasion issue but are concerned that,
even if evasion rates decline, the growing number of households opting not to own a TV will offset
any gains made. In five years the number of TV-free households grew by 5.5%. If this trend
continues the number of households who legitimately do not require a TV Licence will almost
equal the current evasion level by 2020.
Screen Producers Ireland believes that the current structure of imposing a fee for public service
broadcasting based on TV ownership is outdated and must be changed to reflect the impact of
new technology on consumption patterns. A Household Media Charge would eliminate the TV
Licence Fee evasion issue and ensure our Public Service Broadcasters have a stable funding base
despite the change in screen preferences.
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© 2016 | SCREEN PRODUCERS IRELANDSPI supports the introduction of a Household-based Media Charge. We were disappointed when
plans to introduce the Household Media Charge were dropped from the Government agenda. SPI
believes that this will have a progressively adverse impact on the amount of funding available to
public service broadcasters and, consequently, to indigenous producers. SPI is calling on
Government to reconsider this issue and to replace the TV Licence Fee with a Household-based
Media Charge.
Eliminate the Dual Funding Model
The provision of well-funded public service broadcasters is an important principle for most
national governments. SPI believes Ireland should move towards the European norm where PSB’s
are funded principally from licence fee (media charge) revenue with little or no reliance on
advertising and commercial revenues.
The dual funding model of licence fee and high levels of dependency on advertising/commercial
income leaves Ireland’s public service broadcasters open to significant fluctuations in their annual
budget. It gives rise to uncertainty in the sector through not having long term visibility on income
levels to guarantee compliance with public service commitments.
Of the 43 countries surveyed by the European Broadcasting Union (EBU) in 2014, Ireland’s public
service broadcaster is the third most dependent PSB on advertising income, after Poland and
Malta.
Since the economic downturn, RTÉ’s total income has fallen from €441M in 2008 to €328M in
2014, a fall of €113M or 26%. The principal reason for the decrease is the dramatic drop in
advertising revenue during the period. Ireland’s primary public service broadcaster dependency on
advertising income means a large proportion of its income is vulnerable to fluctuations. This is not
the case in most European territories where the income is stable.
RTÉ’s dependency on commercial income (45% in 2014) also contributes to a distortion in the
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© 2016 | SCREEN PRODUCERS IRELANDmedia and advertising market in Ireland. Competitor broadcasters, regional radio, newspapers and
other media outlets claim they have an unfair advantage. Removing RTÉ and TG4 from the Irish
commercial advertising market would be of benefit to these media outlets.
SPI is aware that allowing our PSBs to be funded solely through licencing/media charge revenue
would require a significant increase in this revenue. However, we believe it is the best model for
ensuring we have stable, sustainable and independent public service broadcasters who are
capable of making a valuable contribution to Irish arts and public discourse.
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© 2016 | SCREEN PRODUCERS IRELANDRecommendations to Further Improve the Symbiotic Relationship between RTÉ
and the Independent Production Sector
Publisher-Broadcaster Model
If a Household Media Charge is to be introduced then efficiencies and value for money must be a
condition of this policy. For this reason we believe RTÉ should move towards the emerging trend
of the publisher-broadcaster model whilst retaining core functions of news and current affairs
within RTÉ.
The UK Channel 4 is a "publisher-broadcaster", meaning that it commissions or "buys" all of its
programming from companies independent of itself, and was the first broadcaster in the United
Kingdom to do so on any significant scale; such commissioning is a stipulation which is included in
its licence to broadcast. The publisher-broadcaster model such as Channel 4 and TG4 is an efficient
and cost-effective model to deliver quality public service broadcasting in the rapidly changing
digital media environment, as evidenced internationally.
SPI believes that programming made by independent producers is high quality, cost-effective and
makes the best use of public money. Independent producers have consistently delivered some of
the highest rating and valued programmes for Irish audiences since the introduction of the
minimum statutory spend in 1993. The independent production sector offers diversity of ideas,
innovative and quality content, transparency and accountability for every euro of the licence fee
spent on programmes commissioned.
RTÉ as a publisher-broadcaster would be a better use of the licence fee and would result in a
greater volume of quality, original Irish programming available for Irish audiences.
The statutory spend on independently produced content should be doubled from the current level
of €40M p/a to €80M p/a to pave the way for RTÉ to move towards the emerging trend of the
publisher-broadcaster model.
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© 2016 | SCREEN PRODUCERS IRELANDIntroduce a Film Policy for RTÉ In recognition of the positive cultural impact of Irish films, we are calling on government to introduce a film policy in RTÉ. In contrast to most European countries, Ireland has no legislative or regulated commitment from its’ national broadcaster to spend a minimum amount on locally produced films. This places Irish producers at a competitive disadvantage and results in fewer Irish films being made. SPI proposes that 1.5% of RTÉ revenue allocated to the Television Integrated Business Division in the preceding financial year, and in any case no less than €2.5m per annum, be allocated to spend on Irish feature films and feature documentaries. 10 | P a g e © 2016 | SCREEN PRODUCERS IRELAND
Conclusion The continued success of the Irish independent production sector is very reliant on a strong Public Broadcasting Service. Our Public Service Broadcasters make a valuable contribution to society and their funding base must be protected and increased. Such an increase would have a positive knock on effect on the Indigenous Production Sector as long as the spend on independent programming was increased. Protecting our PSBs is critical for preserving democracy, social cohesion and for providing a trustworthy platform for public debates and national conversations. The Minister should reverse his decision to not introduce a Household Media Charge and our PSBs should be made less reliant on advertising and commercial income to ensure that their funding base is sustainable, stable and adequate. 11 | P a g e © 2016 | SCREEN PRODUCERS IRELAND
Public Service Broadcasting-
The Indigenous Producers
Perspective
77 Merrion Square, Dublin 2, Ireland
Tel: + 353 (0)1 662 1114
Web: www.screenproducersireland.com
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