Oireachtas Joint and Select Committees

Wednesday, 26 March 2014

Joint Oireachtas Committee on Transport and Communications

Strategic Plan 2012-17 and Other Issues: RTE

10:45 am

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I welcome Mr. Curran and his team and thank them for their presentation. It is important that we continuously evaluate what RTE is delivering in terms of public service broadcasting. I am generally supportive of the content it delivers, which is often of a high quality. The Irish people acknowledge that quality, particularly in terms of its coverage of national events and national and regional news coverage.

On the issue of sustainability, the current management inherited an organisation that was established at a time when there was not nearly as much penetration from competing broadcasters. That in itself is a weakness and, as such, the decision to review how RTE does its business and its entire broadcasting model is welcome. Pay structures, most notably, had become totally unsustainable. I do not raise this to make a cheap political cut. It is beyond belief that we got to a stage where some broadcasters were receiving in excess of €700,000 per annum. RTE is not alone in offering hugely inflated wages - many other organisations did the same - but it is now left in the position of having to revise its entire business and service delivery model in a context where it faces ever greater challenges and a much more competitive environment. The organisation is fighting on several fronts, which we should acknowledge. I urge Mr. Curran continuously to revise the contracts of highly paid broadcasters when they come up for renewal. As Deputy McEntee observed, young broadcasters have the potential and talent to deliver if given the chance. Nobody is indispensable, including politicians and broadcasters. There is always somebody else to step up to the mark.

RTE is facing significant challenges in terms of competition in the market with the advent of digital television and the proliferation of international producers of content. In addition, there is the on-line challenge from platforms like Netflix, which appeal to young people in particular and inevitably eat into RTE''s revenue-raising advertising share. How does Mr. Curran propose to address these types of challenges and does he any have specific strategies in this regard? I commend all those involved in the launch of Saorview, which was a massive undertaking with RTE at its forefront. Are there new opportunities for RTE in the area of digital television? I understand that when the new digital platform was being introduced, it incorporated a significant quantity of spare bandwidth. What are RTE's plans to penetrate younger markets via digital platforms? There are potential niche areas of growth for RTE in that area.

Does RTE intend to continue competing in areas where it has already lost the match, so to speak? Its 2fm radio station is aimed at 15 to 24 year olds but has only 8% of the listenership in that demographic. When I was growing up, 2fm was the only station aimed at young listeners and was very popular. I remember that when 2fm DJs were travelling the country, it was the only gig in town. These days, of course, 2fm is competing with regional commercial stations. I am from the south east where Beat 102-103 has almost 60% of the market. Is 2fm trying to compete in a battle which essentially is already lost? I note that it has engaged a number of celebrities in an attempt to boost its figures. Stations like Beat 102-103 have young broadcasters doing the business and they have won that market. Instead of trying to win back lost ground, should RTE not instead be prioritising the development of niche areas where it can win? Does that approach not offer a better chance of sustaining its business?

I note the delegates' concerns in regard to defamation law. It is essential that we, as legislators, seek to protect robust public debate. We will note the views put forward today.