Licence fee funds RTÉ's internet site content, newspapers claim

RTÉ IS “having its cake and eating it” by using publicly-funded content and attracting advertising revenues, the National Newspapers…

RTÉ IS “having its cake and eating it” by using publicly-funded content and attracting advertising revenues, the National Newspapers of Ireland (NNI) have claimed

The newspapers’ representative group said the broadcaster failed to address their key concerns when the broadcaster appeared before an Oireachtas committee.

The group had accused RTÉ of using its public service remit to achieve an unfair advantage in attracting online advertising and of being excessively commercial.

But at a meeting on Thursday of the Oireachtas Communications, Energy and Natural Resources Committee, the broadcaster denied it was abusing its position and said its €2.5 million in online commercial revenues were just 3 per cent of the Irish online advertising market.

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The group insisted however the company needed to draw a clear line between the public service element of RTÉ.ie and commercial elements.

The organisation for national, regional and local papers said in a statement yesterday that “RTÉ is able to put publicly funded news and other content on to the site at limited additional cost and then to exploit this for advertising. RTÉ cannot say that RTÉ.ie does not use TV licence fee money where it clearly uses content substantially paid forgroup the public purse.”

The NNI “believes that to use publicly funded content and attract advertising revenues is RTÉ having its cake and eating it. It is no wonder that, in RTÉ’s own words, ‘RTÉ.ie ranks No 1 among Irish media sites with a monthly reach of 18.3 per cent of the adult internet population’.”

The newspapers’ group added: “The NNI has no issue with RTÉ producing an excellent website, but it should not be able to do so on the basis of publicly funded news content and commercial revenues.

“RTÉ is saying that this doesn’t matter because its website is entirely funded by its commercial revenues. This cannot be the case where the content is in fact substantially funded by the licence fee.”

RTÉ is a “dominant player in the overall advertising market, as opposed to the online market. In contrast to the individual newspaper publishers, it significantly influences the price of advertising and where the spend goes.”

The group contrasted RTÉ’s assertion to the committee with its 2009 annual report statement: “RTÉ.ie continues to lead the market in terms of leading brand advertising.”

Marie O'Halloran

Marie O'Halloran

Marie O'Halloran is Parliamentary Correspondent of The Irish Times