RAI: CHARTER RENEWAL Dr Richard Burnley Director Legal & Policy - 5 April 2022 - Senato

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RAI: CHARTER RENEWAL Dr Richard Burnley Director Legal & Policy - 5 April 2022 - Senato
RAI: CHARTER RENEWAL
Dr Richard Burnley
Director Legal & Policy

5 April 2022
RAI: CHARTER RENEWAL Dr Richard Burnley Director Legal & Policy - 5 April 2022 - Senato
CONTENTS

1. MARKET DEVELOPMENTS

2. SUSTAINABLE RAI:
FUNDING/REMIT/FINDABILITY
RAI: CHARTER RENEWAL Dr Richard Burnley Director Legal & Policy - 5 April 2022 - Senato
1. MARKET
DEVELOPMENTS
RAI: CHARTER RENEWAL Dr Richard Burnley Director Legal & Policy - 5 April 2022 - Senato
EUROPE: TOTAL COMPETITION FROM GLOBAL
GIANTS

›   Global resources
›   Consolidation wave (AT&T/Discovery)
›   Vertically integrated: acquire events, premium rights
›   Acting locally: local production companies, writers
›   Controlling networks and gateways
›   Light or no regulation (content, acquisitions etc)
RAI: CHARTER RENEWAL Dr Richard Burnley Director Legal & Policy - 5 April 2022 - Senato
COMPETITIVE ENVIRONMENT

  PSM’S CROWDED COMPETITIVE ENVIRONMENT
  REVENUES OF SELECTED AUDIOVISUAL PLAYERS (2020)

       64                 TOP-10 EUROPEAN                          TOP-10 EUROPEAN                                                               TOP-10 NON-EUROPEAN COMMERCIAL                           TOP-10
       EUROPEAN           COMMERCIAL BROADCASTERS                  TELECOM                                                                       BROADCASTERS                                             INTERNET
       PSM                                                         OPERATORS                                                                                                                              AND TECH GIANTS

                           VIVENDI               ALTICE

                                                                                                            VODAFONE
                                                       PRO7SAT.1
                                                                      DEUTSCHE TELEKOM
                                           RTL
                           GLOBAL
                           LIBERTY

                                                                                                                                                       AT&T          COMCAST

                                                                                                                                                                                                                                                        MICROSOFT
                                            MEDIASET   DPG
                                     ITV

                                              TF1      EGMONT

                                                                                                                                                                                                                    AMAZON           ALPHABET

                                                                                                                TELECOM ITALIA
                                                                                                                                 ITV
                                                                                                                                 MEDIASET

                                                                                                                                        EGMONT
                                                                                                                                 TF1
                                                                   TELEFONICA               BT
                           1.6x
                                                                                                                TELIA

                                                                                                 SWISSCOM
                                                                                      TELENOR

                                                                                                                                                                                      CHARTER
                                                                    ORANGE                                                                                    WALT DISNEY

                                                                                                                                                                                      COMM.
                                                                                                              BOUYGUES
                                                                                                              TELECOM

                                                                                                                                                  SONY
                                                                                                                                                                                                                                       ALIBABA    TENCENT

                                                                   8.6x

                                                                                                                                                                                        TELEVISA
                                                                                                                                                            VIACOMC

                                                                                                                                                                          DISCOVERY

                                                                                                                                                                                                   FUJI
                                                                                                                                                            BS                          NIPPON TV

                                                                                                                                                                                                                     APPLE

                                                                                                                                                                                                                                                   NETFLIX

                                                                                                                                                                                                                                                                    NINTENDO
                                                                           BOUYGUES
                                                                           TELECOM                                                                                     NIPPON

                                                                                                                                                   12.9x                                                                               FACEBOOK
                                                                                                                                                                                                                                                   BAIDU

                                                                                                                                                                                                                             31.8x
           SIZE COMPARED TO PSM

                                                                                                 Sources: EBU based on Members' data and companies' financial statements.
RAI: CHARTER RENEWAL Dr Richard Burnley Director Legal & Policy - 5 April 2022 - Senato
COMPETITIVE ENVIRONMENT

  NON-EUROPEAN GROUPS GROW FASTER THAN EUROPEANS ONES
  REVENUE GROWTH OF SELECTED AUDIOVISUAL PLAYERS
  (%, 2016–2020)

             EUROPEAN GROUPS                                              NON-EUROPEAN GROUPS                                                     TOP-10
                                                                                                                                         INTERNET AND TECH GIANTS

                                                                                 TOP-10
                                                                              NON-EUROPEAN
                                                                            COMMERCIAL MEDIA
                                                                                 GROUPS

                             TOP-10                  TOP-10
                           EUROPEAN                EUROPEAN
                          COMMERCIAL                TELCOS
           PSM            MEDIA GROUPS

                                                     +2.0%                              +13.7%                                                    +97.9%
             -1.2%
                               -5.7%

                                                              Sources: EBU based on Members' data and companies' financial statements.
ECONOMIC IMPACT

   Each euro invested in funding PSM
   generates
   from 2.5 to 2.7 euros
                                                                                                                                                          2.5 € to 2.7
   in the economy                                                                                                                                              €

                                                                                                               1€

                                                                                                              PSM                                        THE ECONOMY

                  Source: EBU based on EBU based on studies from VRT (Belgium Flemish), RTBF (Belgium French), TG4 (Ireland), RAI (Italy), RSI (SRG SSR, Switzerland).
                                                      EBU Media Intelligence Service – Funding of Public Service Media 2020.
                                                                                                                                                                         7
IMPACT ON CREATIVE SECTOR

    PSM support the
    content industry,
    investing more than

    EUR 18
    billion a year
    in content

                                                   Note: based on 55 PSM organizations in 41 markets.
                            Source: EBU based on EBU PSM Member’s 2020 data. EBU Media Intelligence Service – Datasets 2021.
                                                                                                                               8
IMPACT ON CREATIVE SECTOR

    PSM are committed to creators,
    investing more than

                                                   of total content
              84%                                  spend
                                                   in original content

                                                   Note: based on 55 PSM organizations in 41 markets.
                            Source: EBU based on EBU PSM Member’s 2020 data. EBU Media Intelligence Service – Datasets 2021.
                                                                                                                               9
IMPACT ON CREATIVE SECTOR

                                                                                                                               % of output hours
    PSM showcase
    European content, with                                                                                    Domestic

    90%                                                                                                                                   75%

    of their
    TV output
    of domestic or                                                                                            Europe
                                                                                                              (not including own
    European origin                                                                                           market)
                                                                                                                                          15%
                                                                                                              USA
                                                                                                              Other                        7%
                                                                                                                                           3%

                                                   Note: based on 38 PSM organizations in 36 markets.
                            Source: EBU based on EBU PSM Member’s 2020 data. EBU Media Intelligence Service – Datasets 2021.
                                                                                                                                                10
2. SUSTAINABLE RAI
RAI FUNDING
ITALIAN FEE ONLY 0.33% OF GDP PER CAPITA, BELOW
 EUROPEAN STANDARDS, 2020
               Cro at ia                                    1.0 5%                                 EBU A v erag e ( 21)             0 .4 2 %
Bo snia-Herzeg o vina                                  0 .89%                                      EU A v erag e ( 13)              0 .4 5 %
               A ust ria                           0 .71%
             Slo v enia                            0 .69%
                                                                                                                         Upper third
             Germ any                      0 .52%                                                                        Middle third
    Unit ed King d o m                     0 .4 9%                                                                       Low er third
                                                                                                          n.a./ proportional amount
         Sw it zerland                    0 .4 5%
                                                                                                                       No licence fee
               Poland                     0 .4 5%
     Czech Rep ub lic                   0 .4 1%
               Jord an                  0 .4 0 %
               France                   0 .39%
                Serb ia                 0 .39%
             Denm ark                0 .34 %
              Slo v akia             0 .33%
                  It aly            0 .33%
               Greece             0 .23%
               Ireland            0 .22%
               A lb ania         0 .21%
             Port ug al          0 .18%
                 Israel       0 .10 %
               A lg eria      0 .10 %

No t e: d o es no t includ e co unt ries w here fee is a p ro p o rt io nal am o unt - Turkey , Eg y p t , Mo ro cco and Tunisia.

So urces: EBU b ased o n Mem b ers’ d at a, o fficial w eb sit es and co llect io n ag encies. GDP p er cap it a fro m IMF eco no m ic o ut lo o k d at a b ase.
(EUR, 2020)

                                                                                                                                                                                0
                                                                                                                                                                                                                                                  10

                                                                                                                                                                                                             4
                                                                                                                                                                                                                          6
                                                                                                                                                                                                                                       8

                                                                                                                                                                                               2
                                                                                                                                                                                                                                                                             12
                                                                                                                                                                 Sw itzerland                                                                                    10 .91
                                                                                                                                                                  San Marino                                                                      9.75
                                                                                                                                                                   Germany                                                                 8.32
                                                                                                                                                                     Norw ay                                                               8.31
                                                                                                                                                                     Iceland                                                          7.30
                                                                                                                                                                     Finland                                                          7.30
                                                                                                                                                                   Denmark                                                       6.81
                                                                                                                                                                     Austria                                                  6.0 4
                                                                                                                                                                    Sw eden                                               5.96
                                                                                                                                                             United Kingdom                                               5.74
                                                                                                                                                             Belgium French                                           5.0 4
                                                                                                                                                                      France                                      4 .18
                                                                                                                                                                    Slovenia                                     3.97
                                                                                                                                                                      Ireland                                 3.89
                                                                                                                                                                    Andorra                                  3.57
                                                                                                                                                                       Spain                               3.29
                                                                                                                                                                 Netherlands                               3.29
                                                                                                                                                                     Croatia                               3.28

                                                                                                                                           Upper third
                                                                                                                                                             Belgium Flemish                               3.15
                                                                                                                                                                                                                                                                                  PSM MONTHLY CONTRIBUTION PER CITIZEN – COUNTRY LEVEL

                                                                                                                                                                     Cyprus                                3.13
                                                                                                                                                                     Estonia                         2.60
                                                                                                                                                                        Italy                        2.4 4
                                                                                                                                                              Czech Republic                        2.31
                                                                                                                                                                    Hungary                         2.15
                                                                                                                                                                 Montenegro                    1.82
                                                                                                                                                                    Slovakia                   1.79
                                                                                                                                                                       Israel                 1.54
                                                                                                                                                                    Portugal                 1.4 6
                                                    Source: EBU based on Members’ data.
                                                                                                                                           Middle third

                                                                                                                                                                     Greece                  1.4 5
                                                                                                                                                                   Lithuania                 1.37
                                                                                                                                                                      Poland                1.0 9
                                                                                                                                                                      Latvia                1.0 8
                                                                                                                                                                      Serbia             1.0 6
                                                                                                                                                                Luxembourg              0 .90
                                                                                                                                                                    Bulgaria           0 .73
                                                                                                                                                            North Macedonia           0 .64
                                                                                                                                           Low er third

                                                                                                                                                                    Romania           0 .63
              The Vatican has not been included owing to its small population and the consequent distortion in the calculation.

                                                                                                                                                                     Albania          0 .4 8
                                                                                                                                                                                                                                                   EBU A verag e

                                                                                                                                                                      Turkey          0 .4 7
                                                                                                                                                          Bosnia-Herzegovina         0 .38
     Note: PSM contribution per citizen calculated by dividing PSM public income by population. based on 63 organizations in 46 markets.

                                                                                                                                                                    Georgia          0 .37
                                                                                                                                                                                                                                                   Non-EU A verag e (20 )
                                                                                                                                                                                                                                                   EU A verag e (26 of 27)

                                                                                                                                                                    Armenia          0 .34
                                                                                                                                                                    Morocco         0 .24
                                                                                                                                                                    Moldova         0 .19
                                                                                                                                                                     Ukraine        0 .10
                                                                                                                                                                                                                                                  2.8 0
                                                                                                                                                                                                                                                  3.0 6
                                                                                                                                                                                                                                                  3.25
                                                                                                                                                                                                                                                                                                                                         TAKING ONLY PUBLIC INCOME INTO ACCOUNT: ITALIAN CITIZENS

                                                                                                                                                                  Azerbaijan        0 .0 6
                                                                                                                                                                                                                                                                                                                                         CONTRIBUTE EUR 2.44 PER MONTH TO FUND RAI - UNDER EU AVERAGE

14
PSM FUNDING IN ITALY IS FAR BELOW GERMANY, UK AND FRANCE

PSM OPERATING REVENUES – COUNTRY LEVEL
(EUR MILLION, 2020)

                                                                                                 10 0 0 0
                                                   4 000

                                                               6 000

                                                                                8 000
                                2 000
                    0

       Germany                                                                                 9 4 69
United Kingdom                                                           6 855
         France                                        3 996
            Italy                         2 50 9
           Spain                        2 0 37
    Sw itzerland               1 359
         Austria          991
    Netherlands           94 6
         Poland          777
        Sw eden          771
                                                               Source: EBU based on Members’ data.
        Norw ay         54 8
                                                                                                            15
(%, 2020)

                                                                                                                                                                                                    10

                                                                                                                                                      4
                                                                                                                                                                             6
                                                                                                                                                                                      8

                                                                                                                                    2
                                                                                                                                                                                                                                           12

                                                                                                                                          0 .10 %
                                                                                                                                                                   0 .20 %
                                                                                                                                                                                                                       0 .40 %
                                                                                                                                                                                                                                                0 .50 %

                                                                                                              0 .0 00 %
                                                                                                                                                                                      0 .30 %
                                                                                              Sw itzerland                                                                                          10 .91
                                                                                              Montenegro
                                                                                               San Marino                                                                                       0 .36%
                                                                                                                                                                                              9.75
                                                                                                   Croatia
                                                                                                 Germany                                                                                8.32 0 .35%
                                                                                               San Marino                                                                                    0 .34 %
                                                                                                  Norw ay                                                                               8.31
                                                                                          United Kingdom                                                                               0 .29%
                                                                                                   Iceland                                                                         7.30
                                                                                                 Germany                                                                              0 .28%
                                                                                                   Finland                                                                         7.30
                                                                                                    Austria                                                                        0 .26%
                                                                                                 Denmark                                                                        6.81
                                                                                                  Slovenia                                                                         0 .26%
                                                                                                   Austria                                                                   6.0 4
                                                                                                    Serbia                                                                      0 .24 %
                                                                                                  Sw eden
                                                                                                   Iceland                                                                   5.96
                                                                                                                                                                               0 .23%
                                                                                          United Kingdom
                                                                                                  Hungary                                                         5.74
                                                                                                                                                                     0 .23%
                                                                                          Belgium  French
                                                                                           Belgium French                                                      5.0 40 .22%
                                                                                                    France
                                                                                               Sw itzerland                                                4 .18             0 .21%
                                                                                                  Slovenia
                                                                                                   Finland                                                3.97               0 .21%
                                                                                                                                                                                                                                                     PSM OPERATING REVENUES AS A % OF GDP

                                                                                                     Spain
                                                                                                   Ireland                                             3.89 0 .18%
                                                                                                   France
                                                                                                  Andorra                                             3.57 0 .18%
                                                                                                 Denmark
                                                                                                    Spain                                            3.29 0 .17%
                                                                                                  Norw ay
                                                                                              Netherlands                                            3.29 0 .17%
                                                                                                   Cyprus                                                    0 .17%
                                                                                                   Croatia                                          3.28
                                                                                                  Sw eden                                                    0 .16%

                                                                        Upper third
                                                                                          Belgium Flemish                                           3.15
                                                                                                  Andorra                                                    0 .16%
                                                                                                   Cyprus                                           3.13
                                                                                          Belgium Flemish                                                    0 .16%
                                                                                                  Estonia                                    2.60
                                                                                                   Estonia                                                   0 .16%
                                                                                                      Italy                                2.4 4
                                                                                           Czech Republic                                                  0 .15%
                                                                                           Czech Republic
                                                                                                      Italy                               2.31             0 .15%
                                                                                                Hungary
                                                                                         North Macedonia                                  2.15             0 .15%
                                                                                             Montenegro
                                                                                                  Poland                             1.82                  0 .15%
                                                                                                  Slovakia
                                                                                                   Albania                           1.79                  0 .15%
                                                                                                     Israel
                                                                                                  Slovakia                          1.54               0 .14 %
                                                                                                  Morocco
                                                                                                  Portugal                         1.4 6              0 .13%
                                                                        Middle third

                                                                                                   Georgia
                                                                                                   Greece                          1.4 5              0 .13%
                                                                                       Bosnia-Herzegovina
                                                                                                 Lithuania                         1.37              0 .12%
                                                                                                    Greece
                                                                                                    Poland                        1.0 9              0 .12%
              Note: based on 63 organizations in 46 markets.

             Source: EBU based on Members’ data and IMF.

                                                                                              Netherlands                                            0 .12%
                                                                                                    Latvia                        1.0 8
                                                                                                 Armenia                                            0 .11%
                                                                                                    Serbia                    1.0 6
     The Vatican has not been included owing to the lack of GDP data.

                                                                                                 Bulgaria                                           0 .11%
                                                                                             Luxembourg                       0 .90
                                                                                                 Portugal                                           0 .11%
                                                                                                 Bulgaria                    0 .73
                                                                                                                                                                                                   EU

                                                                                                   Ireland                                      0 .10 %
                                                                                                                                                                                                EBUEBU
                                                                                                                                                                                                      A

                                                                                         North Macedonia                    0 .64
                                                                                                    Latvia                                      0 .10 %
                                                                        Low er third

                                                                                                Romania                     0 .63
                                                                                                                                                                                                    A verag

                                                                                                Lithuania                                      0 .10 %
                                                                                                                                                                                                        verag

                                                                                                   Albania
                                                                                                    Turkey                 0 .4 8          0 .0 9%
                                                                                                                                                                                                               e
                                                                                                                                                                                                        A verag
                                                                                                                                                                                                             e e

                                                                                                   Turkey
                                                                                                  Romania                  0 .4 7 0 .0 7%
                                                                                                                                                                                                                 (26

                                                                                       Bosnia-Herzegovina
                                                                                                  Moldova                  0 .38 0 .0 7%
                                                                                                                                                                                                                     of
                                                                                                                                                                                                Non-EU A verag e (20 )
                                                                                                                                                                                                EU A verag e (26 of 27)

                                                                                                    Israel
                                                                                                  Georgia                  0 .370 .0 5%
                                                                                                                                                                                                   Non-EU A verag e (20 )
                                                                                                                                                                                                                        27)

                                                                                                  Ukraine
                                                                                                 Armenia                  0 .340 .0 4 %
                                                                                                Azerbaijan
                                                                                                 Morocco                     .0 2%
                                                                                                                           .24
                                                                                                                          00
                                                                                                                                                                                                                            0 .16%

                                                                                              Luxembourg
                                                                                                 Moldova                     .0 1%
                                                                                                                          00.19
                                                                                                   Ukraine                0 .10
                                                                                                                                                                                                                                   2.8 0
                                                                                                                                                                                                                            0 .16% 3.0 6
                                                                                                                                                                                                                            0 .16% 3.25

                                                                                               Azerbaijan             0 .0 6
                                                                                                                                                      average
                                                                                                                                                      below EU
                                                                                                                                                      Italian GDP,
                                                                                                                                                      With 0.15% of

                                                                                                                                                      RAI funding is
                                                                                                                                                                                                                                                                                            WEIGHTED WITH GDP, ITALIAN PSM FUNDING RANKS ONLY 24th IN EUROPE

16
RAI SUFFERED FROM THE BIGGEST FUNDING CUT IN EUROPE IN
ABSOLUTE TERMS BETWEEN 2016 AND 2020
PSM FUNDING CUTS – ORGANIZATIONAL LEVEL
(EUR MILLION, 2016-2020)
                 -350     -30 0   -250     -20 0       -150          -10 0         -50              0
                  -30 0 .80                                                                             IT - RAI
                                          -173.90                                                       CH - SRG SSR
                                            -167.13                                                     FR - France TV
                                                                    -68.59                              GB - CH4
                                                                                  -20 .69               SE - SVT
                                                                                  -20 .64               BE FL - VRT
                                                                                  -20 .0 6              DK - DR
                                                                                    -15.0 9             RO - TVR
                                                                                      -9.0 0            HR - HRT
                                                                                      -8.0 9            CZ - Č T
                                                                                       -6.23            RO - ROR
                                                                                        -6.18           IE - RTÉ
                                                                                       -5.94            FR - Radio France
                                                                                        -4.61           IS - RÚV
                                                                                          -3.11         VA - RV
                                                                                        -2.87           MK - MKRTV
                                                                                         -1.46          MA - SNRT
                                                                                          -1.19         SM - SMRTV
                                                                                        -0 .99          AZ - ICTI
                                                                                        -0 .0 6         AM - AMPR
                                                                                        -0 .0 3         AM - AMPTV
                                                   Note: based on 64 organizations in 47 markets.
                                                      Source: EBU based on Members’ data.

                                                                                                                            17
PSM ADVERTISING REVENUE

›   Approx 80% EBU Members have advertising revenue
›   Most EBU Members in EU have more than 6mins/hr (majority
    12mins/hr)
›   As of 1st of Jan 2023: 6% in each slot 6 a.m. – 6 p.m. and 6
    p.m. – 00.00 a.m. = one of lowest in Europe
›   Evidence is that reducing/banning PSM advertising passes
    revenues to online globals (no benefit to national market in
    France/Spain)
RAI REMIT
RAI PROMINENCE

›   Rai must be found on all platforms
›   AVMS: Member States may ensure general interest content is
    findable online
›   Only Germany and France implemented rules for devices/smart TV

                                                                 20
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