Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
RTÉ HAS BEEN given the green light by the competition watchdog after promising to change the way it sold advertising, following a dispute with TV3.
The State broadcaster had been accused of anti-competitive practices by its independent rival, which made a complaint to the Competition Authority and threatened to seek damages. TV3 said at the time it may have lost more than €30million due to RTÉ’s actions.
The dispute arose over RTÉ’s “share deal” selling technique, under which advertisers received discounts if they dedicated more of their total promotional spend to RTÉ. The Competition Authority stated in its decision that it was “concerned” that the practice constituted abuse of RTÉ’s dominant position in the market.
However, Montrose executives agreed in October to alter the practice after what they called a “strategic business review”.
In a final Enforcement Decision today, the Competition Authority gave RTÉ the go-ahead to proceed with what the broadcaster called a “new trading system” which will “no longer contain discounts based on share of spend”. The decision stated:
The Authority is satisfied that the undertakings [by RTÉ] address its concerns.
RTÉ has welcomed the decision, saying its move away from the share deal scheme was “part of a broader review”.
The broadcaster’s commercial director Geraldine O’Leary said: “We are continually looking at how we do what we do and trying to do it better,” adding: “What we are moving towards now is a system which allows us best maximise RTÉ’s opportunities in the current marketplace.”
To embed this post, copy the code below on your site
How come RTE is allowed to collect licence fees along with advertising. TV3 manages to run their ship on advertising alone! RTE are just like the rest of the government “Robbing B*******”
Rte and tv3 are doomed as TV advertising is just entering a new phase where ads will not be delivered in the same way, with pause live tv, series link, Netflix etc.. People just skip adds. Product placement and Super Bowl type advertising is all that will survive.
Soon it will all be pay per stream tv
I’ve never understood that. Then I look at the obscene amount of money they pay their top “stars” and it becomes clearer. What a rip-off!
The licence fee exists to provide a source of income for what is a public service set up by the state. There simply aren’t enough people in the country for the tv licence to be the sole source of funding unless you’re willing to pay a ridiculously high price that is simply unrealistic. Therefore rte relies on advertising and now heavily regulated product placement introduced by the broadcasting act 2009 to gain the rest of the finances needed. The big stars get such high salaries because they are on private contracts and not actual employees of rte plus whether you like them or not they bring in a huge audience and can therefore demand a high salary. If their contracts were axed you can bet that audience numbers would fall, value of advertising would fall, jobs would then be at risk etc.
TV3 get a portion of the licence fee to sustain what is an obligatory independent commercial broadcasting service and their advertising space is actually more valuable due their syndication of far more popular shows such as x factor which attracts huge audiences.
Did I miss anything?
One state quango sides with another , what a surprise. RTE are filth.
I agree completely but imagine if all Irish stations were like tv3 – there’d be nothing but American drivel and adverts on tv. Nationwide makes better viewing than 90% of the crap on tv3
Agree TV3 is complete rubbish. Not 1 good programme on there i can think of. The sooner this station collapses the better.
@Begrudgy would the collapse of an independent broadcaster with the numerous job losses that would result in really be that good? Didn’t think so. Plus rte and tg4 would be the only broadcasters left meaning we are solely exposed to state run media…not good, not good at all.
‘Solely exposed to state run media’. Really. You even living in ireland?.
Of course I like everyone else get the numerous British channels included as part of my subscription but we have zero investment in them outside of the subscription fee. We do have an investment in rte tg4 and tv3 because of the licence fee. Think about it. If jobs were lost at bbc, sky etc. it really wouldn’t have much if any impact on labour in our economy. I still don’t see you suggesting an alternative? You’re just complaining irrationally like so many others, passing a blame without contributing to a reasonable discussion. I’m neither defending nor agreeing with all this. Just stating what the real situation is. Here come the thumbs down…
We would have a investment in RTE if they were a sustainable organisation but they are not,just badly run and dependable on a tv licence contribution. Our licence tax pays them so they are essentially civil servants. If the number of civil servants declines it means less cost to state and us as taxpayers. So if RTE closed tomorrow we have tv3 as a independant national station and no tv licence fee to worry about. Rte employees create new station or join tv3 or attempt to get the same huge salaries from other international stations.
RTE collect licence money it should be stopped
What alternative do you suggest to finance our public service broadcaster? Do you expect them to broadcast to you for free with imaginary money? The licence fee is ye best option for the public.
As to whether it’s being put to good use is debatable.
@Fergal, If RTE was supported by advertising alone they would have to pull up their socks and make some proper entertainment to gain proper ratings to retain advertising to support themselves. As the are generously supported by the licence fee there is no motivation for them to pull up their socks and do some proper work, (Like the rest of us)
You could cut them down to one channel for a start.. There is no public service obligation for two channels.
Review all contracts to the top stars and cut them by about 40% when they are up or renewal. Surely the umbrella companies they’ve set up for rte to pay them can get other contracts?! Most companies have multiple contracts. They’ll grumble they have no pensions etc but it is the risk *all* small business owners take.
We’re subsiding a television service not lifestyles.
Look at it on a show by show level. Does it *really* take two presenters to present winning streak?
The list can go on and on…
The dumbass competition watchdog should be barking at the tv licence fee that we have to pay under a threat of force. Fu*k the state and fu*k RTE
I believe RTE could survive on advertising only. They would obviously have to lower the pay to there high earners (which lets face it… is crazy in most cases), The rights market ie.. new usa shows, champions league rights, gaa rights etc would be lowered through competition as TV3 and RTE would be competing on a level field (RTE wouldnt have the advantage – with 2 incomes). The main point i believe here is that the License fee covers the orchestra, TG4, Lyric FM and a few others which I personally believe should be self sufficient or based on donations like PBS in the USA. I believe ill be shot down for the above point on license fee drains but I think in the current climate it only makes sence.
have your say