Media & Marketing: Ryanair chief executive Michael O'Leary recently told reporters that "ultimately entertainment will be where the money is" in the airline business in future.
With Ryanair this week announcing a 31 per cent increase in ancillary revenues, he may have a point. The airline is already planning in-flight gambling and mobile phone facilities on board. British Midland is considering the same, as airlines desperately seek ways to claw back money spent on rising fuel.
Ryanair already offers companies the chance to have their brands on the outside of their aircraft. But even Ryanair, with its endlessly creative methods of raising on-board revenues, may find it hard to compete with US counterparts.
This week US Airways, which already places adverts on napkins and tray tables, is considering covering sickness bags with advertising messages in September. What companies would be interested in such a rarefied platform for their brands is not clear.
With margins getting thinner in the industry, US Airways is putting ads on tray tables for Mercedes and Bank of America. Another airline plans to place adverts on soap dispensers in the toilets.
As for charging for previously free items, US airline Spirit Airlines is exploring selling pillows and blankets in a bid to boost revenues. However, Air Canada has beaten them to it, asking travellers to shell out $2 per pillow and blanket pack. Aer Lingus has so far remained somewhat aloof from these developments, but come late September the airline will have new owners and then it could be time to cover those soap dispensers and sickness bags.
Freestyle for Murdoch
It was only a matter of time before it happened. News International, for so long cut out of the UK freesheet newspaper market, is about to take on existing players like Metro, Standard Lite and City AM.
Rupert Murdoch has spoken on several occasions about the threat posed to traditional newspapers by the freesheets. But clearly he has decided that enough is enough. A new paper, thelondonpaper, is set to hit the streets next month. According to News International it will be aimed at a young, upmarket audience and will contain a mix of serious and light news, as well as information about going out in London. About 400,000 copies will be distributed from 4.30pm-7.30pm. But even getting commuters to take a freesheet can be a problem in London, observers commented this week. Younger commuters often spend the journey "staring into space or listening to iPods", one media buyer said.
Stations bend rules
Large segments of the radio industry appear to be breaching the rules of broadcasting, according to new figures disclosed by the Broadcasting Commission of Ireland (BCI).
Under the Radio and Television Act 1988 radio stations are prohibited from having more than 10 minutes of advertising per hour. According to the BCI some 18 stations breached this rule in 2005, although the regulator declined to name the stations. However, with 28 licensed stations it appears that over 50 per cent are not playing by the rules.
In terms of sanctions there is little the BCI can do. It cannot fine radio stations for bending the rules. From time to time the BCI imposes softer penalties, including cancelling outside broadcasts. Of course it can ultimately withdraw the licence from a service if the breaches continue year after year.
The legislation is very specific about how much advertising can be carried, but the rationale for the rule is not spelled out clearly in the legislation. One presumes it is an attempt to stop radio stations broadcasting wall-to-wall advertising rather than actual programming.
Other breaches are also taking place - three stations were found to have to breached the rule that 20 per cent of programming on general stations must be devoted to news and current affairs. In 2004, two stations were found to have breached this rule.
The 10-minute advertising rule may be about to change with EU Commission proposals advocating a more liberal regime. This may be popular with the advertising and radio industries, but not necessarily with listeners.
Irish listeners are are also disadvantaged compared to their UK counterparts. Those looking to avoid advertising can of course tune into the BBC's various services, but with RTÉ dual-funded (licence fee and advertising) that is not possible in the Republic.
Gibson's blunders
Last week's arrest of actor Mel Gibson and his accompanying anti-semitic remarks to a police officer have caused quite a stir at the Disney Corporation, which is working with the star on several projects. Arrested in Malibu, California, last week on suspicion of drink driving, Gibson is reported to have said to the arresting officer: "The Jews are responsible for all the wars in the world. Are you a Jew?"
Such comments, although followed by an apology, appear to have upset several commercial interests that have worked with Gibson. Disney is still going ahead with the release of Gibson's next movie, Apocalypto, in December. The movie deals with Mayan civilisation.
But ABC, which is owned by Disney, has cancelled a mini-series on the Holocaust it was planning to make with Gibson. Jewish leaders said it would be "inconceivable" for ABC to work with Gibson following his comments. Even if Gibson further recants, he is unlikely to be popular with the Jewish community. Gibson's father landed his son in trouble three years ago when the Passion of the Christ was released, when he said the Holocaust was mostly "fiction".
