Virgin Media criticises BAI over RTÉ funding
VIRGIN Media clashed with the Broadcasting Authority of Ireland (BAI) over the regulator’s decision to recommend extra funding of €30m to RTÉ.
Documents released to the Sunday Independent under the Freedom of Information Act show Virgin Media Ireland CEO Tony Hanway criticised the BAI, writing in a letter that the authority “is not an economic regulator”.
“To put this in context, €30m represents a very considerable portion of Virgin Media Television’s total operating budget,” he wrote.
He claimed the extra revenue for RTÉ “without conditions attached will further subvent existing efficiency” and would be used to compete commercially in the areas of sport and entertainment. He raised concerns about RTÉ’s deficits and claimed “there is a need for a root-and-branch examination of the cost base, structure and purpose of RTÉ”.
However, the BAI replied by saying the recommendation “was made subject to a number of conditions attached”. “The BAI requires RTÉ to address the questions of deficits and does not agree with your contention that nothing will be done on this matter,” wrote chief executive Michael O’Keeffe.
He said funding received by RTÉ could not be used to compete unfairly with rivals.
VIRGIN Media Television has had to make “difficult decisions” on its schedule in order to address economic realities and changing consumer demands, according to the company’s managing director Pat Kiely.
The company announced recently that it was axing a number of programmes, such as ITV’s This Morning and Loose Women.
Earlier this year, the company also said it would not renew the Irish version of international format Ireland’s Got Talent.
However, it will air more of its own live programming, such as an extended Ireland AM, in addition to some new Irish drama, like Darklands, a gangland series which begins on Virgin Media One tomorrow evening.
“The backdrop to the new schedule is the tough decisions we have to make as a business,” said Kiely. “We have to step up to the ongoing economic and competitive challenges.
“Like any well-managed business, we have to adjust with the times and what comes with that is big decisions around our schedules, our content.
“The economic challenges include the Brexit uncertainty in the market that has affected all media. Our ongoing position on that is to not spend beyond our means and try to drive efficiencies within the organisation.”
Under its new ownership, the company, previously known as TV3, invested significantly on upgrading and expanding its studio space. “We have three HD studios, all fully operational, and that allows us to be live from 7am to 1pm every day, which is one part of the new schedule you will see tomorrow,” Kiely said.
He said the company now needed to deliver returns on that investment.
Kiely also said this meant the group of stations was providing more local and relevant content to Irish audiences, and becoming less reliant on international content and formats.
However, Virgin continues to have a content deal with ITV, ensuring it offers big-draw shows such as Coronation Street and Love Island.
“Extending Ireland AM and moving Elaine into a mid-morning slot, and launching a lunchtime news with Colette Fitzpatrick, for us is about being live and local,” said Kiely, “and that is how we will step up to international threats.”
Kiely’s comments come amid an intense focus on RTÉ, which did not succeed in getting a significant boost to public funding, following a lengthy review by the Broadcasting Authority of Ireland (BAI) and the Department of Communications.
RTÉ insists that it only uses public funding for public service broadcasting and points to its broad remit, as enshrined in law.
A report by Communications Chambers into RTÉ’s funding challenges said that it would likely need changes to legislation in order to cut services, if additional funding was not forthcoming.
As reported elsewhere in these pages, a BAI recommendation for extra funding of more than €30m met with an angry response from Virgin Media Ireland, owner of the television stations.
However, the Government announced in August that it had no plans to give RTÉ an immediate funding boost. This prompted a cost-cutting review at RTÉ, the results of which are expected to be announced shortly.
According to the Sunday Times, its transmission network 2RN could be sold.
This was previously mooted in a NewEra review of RTÉ in 2014. But that report flagged that there would be other policy considerations for RTÉ in relation to such a sale.