Sunday Independent (Ireland)

Ireland seeks cut of UK channels’ €50m ad revenue

Government in new push to get share of advertisin­g as EU reviews TV regulation­s, writes Samantha McCaughren

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THE Government is to step up its efforts at an EU level to get a slice of the €50m in ad revenue which goes to UK television stations every year.

In recent weeks, the Department of Communicat­ions has appointed consultant­s Indecon to carry out a review of so-called ‘opt-out advertisin­g’ in the State.

This is where Sky, Channel 4 and other UK channels stream advertisin­g slots aimed solely at viewers in the Irish market. It is estimated that around €50m in revenue goes to those stations and the department, as well the broadcasti­ng sector and independen­t producers, have long argued that some of this revenue should be captured in Ireland.

The EU regulatory framework for broadcasti­ng, known as the Audio-Visual Media Services Directive (AVMSD), is currently up for review and the Government will push for changes to the country of origin principle, whereby a television service is regulated in the country in which it is based.

The review will bolster Ireland’s argument that the directive is having a negative consequenc­e for the Irish indigenous broadcasti­ng sector and in turn the independen­t production sector.

A spokesman for the department said: “The report will be finalised before the end of the year and its findings will feed into the department’s interactio­ns with the European Commission on the issue and will support the State’s position in negotiatio­ns on the Commission’s review of the AVMSD.”

A number of models to address this have been proposed over the past year, with sources suggesting that a portion of the ad revenue could contribute to a fund for the independen­t sector. Among the measures which have been considered is a levy or tax on the ad spend going to opt-outs, although there is some scepticism among regulators that the Commission would countenanc­e this.

Indecon will evaluate the impact of the growth of opt-out advertisin­g and will seek to identify potential policy options “which the State can pursue at both a national and a European level”.

Last year, senior officials from the Department of Communicat­ions made a presentati­on to the Commission which was highly critical of the impact of the current directive on this market. They said that out of an advertisin­g market of less than €200m, broadcaste­rs such as Sky and Channel 4 “extract” over €50m.

The department also sent a letter to the commission and made a detailed submission on its concerns.

The current directive aims to encourage inter-cultural exchange among European countries, but the department argued that this was not being achieved in Ireland.

“Unfortunat­ely, the practice of exploiting ‘optout advertisin­g’ is underminin­g the achievemen­t of the directive’s objective,” said the submission.

“Ireland has concerns regarding the growing detrimenta­l impact that these channels are having on the ability of locally based broadcaste­rs to create new and culturally diverse content,” it added.

Opt-outs have grown rapidly in recent years. There were a total of 43 channels selling in the Irish market in January 2014 , of which 34 channels were “opting out.” There is little investment in return.

However, Sky, which broadcasts huge TV hits such as Game of Thrones, argues that it is a significan­t employer in Ireland and also invests in local programmin­g, such as comedy series Moone Boy.

 ??  ?? Emilia Clarke as Daenerys Targaryen in Sky’s smash-hit series ‘Game of Thrones’
Emilia Clarke as Daenerys Targaryen in Sky’s smash-hit series ‘Game of Thrones’

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