Taking the BBC and at least one other foreign public broadcaster as your focus, discuss the challenges faced by public service broadcasters in the global multi-channel market.
Taking the BBC and at least one other foreign public broadcaster as your focus, discuss the challenges faced by public service broadcasters in the global multi-channel market.
Introduction
Radio Telefis Eireann (RTE) is the national public service broadcasting organisation in Ireland with a remit overseeing and operating two television stations, three radio stations, a concert orchestra, a symphony orchestra, and also publishing Irelands best-selling magazine `The RTE Guide`. There are some two thousand people employed by RTE, most of which are based at the Montrose-Donnybrooke site in Dublin. Historically, broadcasting in Ireland developed through the civil service structures and is therefore seen by some commentators to have evolved towards a certain bureaucratic style of administration. While for a time the only indigenous broadcasting organisation within the state, RTE has always had to compete with the UK and other broadcasting output. More recently, the further development of independent radio and television has led to a slow down in RTE's advertising revenue, occurring at a time when revenue from the license fee was stabilising (1996-97).
Section 1
* Aims and outlines
At the beginning of the twenty-first century, terrestrial broadcasters, in particular those who operate as public service broadcasters, find themselves having to exist within an ever increasing commercially driven market. I hesitate to use the word `market` as it gives rise to issues that, it could be argued, operate outside of the `public interest`. However, the reality is that in order that public service broadcasters are to remain both relevant and pluralistic in their nature, they must, it has been suggested, adopt (and attempts have been made as we shall see) a more market driven structure and ethos. One of the fundamental issues for those who argue for and against public service broadcasting is the increasingly ambiguous term itself. What is it that constitutes broadcasting that operates in the `public interest` or `public good`, especially when considering the ever-growing fragmentation of society?
Also, the privately owned, commercial sector, with its flagship BSkyB, has arguably provided greater choice in broadcasting albeit through subscription, and has diversified into niche areas that were either previously neglected on terrestrial television or were the subject of limited coverage. This catering for micro-level interests (and indeed the whole range of subjects covered by satellite broadcasters) has meant a significant reduction in terrestrial television viewing. It has also, in a wider sense, given rise to a series of arguments concerning public service broadcasting on the whole, and its reliance on the license fee (particularly the BBC) as a main source of income. While much of this case study overlaps in areas such as competition (section 3, p7 and funding (section 4, p14) I have split the study into sections in order to maintain both order and coherence.
For this study I will look at the main UK public service broadcaster, the BBC and also its Irish counterpart RTE. Both are required to provide a public service through their broadcasting. However, while the BBC carries no advertising, and therefore is reliant on license fee revenue for much of its funding, RTE has a mixed license fee/advertising income.
I shall investigate the steps being taken by both broadcasters to become more relevant (beyond the rhetoric through which they aim to simply make us believe they are relevant), and also discuss the position of public service broadcasters in an environment where the trend is towards greater commercialisation, deregulation and privatisation.
I will begin however, by discussing the notion of public service broadcasting in order that we better understand the core principles, of which we, the public are compulsory bound to fund.
Section 2
* What is public service broadcasting?
* What distinguishes it from profit-driven media?
* Changing perceptions of public service broadcasting
Traditionally public service broadcasting has conjured up a set of ideological and often political stereotypes, born in the main from an overall demeanour of middle class, institutionalised beliefs and practises. Post 1946, when television broadcasting resumed, the BBC's popularity was at its height, largely because of its part in the nations efforts during the Second World War, and there exists today, even for those born many years after the war, a resonance passed down through folk-memories, i.e. Winston Churchill's instantly recognisable speeches, broadcast by the BBC. Now, in the 21st century, with this affection in tact, but beginning to wane somewhat, the BBC is having to redefine itself to both the public and politicians. RTE too shares many of the current crisis' in broadcasting, predictably issues surrounding funding/revenue and it is also having to reassess its position in terms of self perception and audience perception.
Any description I give here concerning PSB will be open to criticism, because it has become so ambiguous, therefore I revert to the definition agreed by the Committee of Ministers of the Council of Europe (December, 1994). Central to the nine mission statements provided by the body, was a concern `to support the values underlying the political, legal and social structures of democratic societies, and in particular the respect for human rights, culture and pluralism`. (Committee of Ministers of the Council of Europe, quoted in Scannell. Date?). Individual organisations provide their own mission statements, however this definition is a broad one, with which PSB's attempt to match their broadcasting output.
If we take PSB's as the embodiment of this definition, we can begin to draw distinctions between the services provided by them, and their `for-profit` counterparts (e.g. BSkyB). Commercially driven broadcasters have tended to produce a range of populist programmes, as they carry no public service remit, and their broadcasting output is largely dependant upon the size of the viewing figures. While this will play a part within any broadcasters programme production decisions to some extent, it is more highly focused upon when compared to PSB's (see programme schedule, fig. 1,2,3. Section 3).
There exists the argument that if the media market is left to its own devices, from employment through to transmission, the end result will be an homogenous broadcasting system, and as Andrew Graham states `Putting it bluntly, we will be ``dumbed down`` `. (Graham. 1999)
However, referring back to the old perceptions of public service broadcasting, commercial broadcasters such as BSkyB have, it could be argued, forced the PSB's to sit up and take notice, to emerge from their insular shells. There is not so much difference between the two sectors in terms of production, but in ...
This is a preview of the whole essay
There exists the argument that if the media market is left to its own devices, from employment through to transmission, the end result will be an homogenous broadcasting system, and as Andrew Graham states `Putting it bluntly, we will be ``dumbed down`` `. (Graham. 1999)
However, referring back to the old perceptions of public service broadcasting, commercial broadcasters such as BSkyB have, it could be argued, forced the PSB's to sit up and take notice, to emerge from their insular shells. There is not so much difference between the two sectors in terms of production, but in the values employed throughout the institutions. They both produce news, sport and entertainment for instance, but arguably the pressure from the heads of privately owned organisations (has an owner ever been so inextricably involved in the agenda set by an organisation such as Rupert Murdoch is?). Also pressures from the commercial advertising sector have been cited as having such control that programmes are often not made because they conflict with the agenda of the advertisers.
Public service broadcasters are encountering problems in both their identity and their practises, exacberated by increasing competition. However it is the identity, or at least the publics perception of PSB, which arguably holds the greatest rub of all at this moment in time.
The BBC has been attempting for some time to shake off the stigma of old ideological and political stereotypes over recent years with, a change of emphasis from almost `nannying` the public where they appeared to believe, as Beveridge (1947) stated, `a sense of mission became a sense of divine right`. (Beveridge, quoted in Curran and Seaton. 1997: P162), to a more approachable and conversationalist (particularly with reference to news production) style of broadcasting.
RTE, while being very much younger than the BBC (and therefore does not carry such a weight of history, both positive and negative), has also made attempts to hold onto its majority share of the viewing audience. It has done this through re-branding and re-launching (RTE re-launched RTE2 as N2 in October 1997), while continuing to supply its public service remit, against the backdrop of spending constraints and increasing competition.
The `nannying` I mentioned previously is particularly important when discussing perceptions and notions of public service broadcasting. The Reithian principle of `informing, educating, and entertaining` is perhaps slightly outdated, despite embodying important social and cultural standards, because, as Bob Collins (1997) states, `there is an implication in it that audiences are in some way passive recipients of what is directed at them, with no ability to respond or adopt a more active posture`. (Collins, quoted in Kiberd, 1997: p23). It could be argued that in the current multi-channel, indeed, multi-ethnic environment, the idea that you can provide a sufficient remit of programmes to a wide-ranging audience is optimistic at best. This may be of no fault of the broadcasters, but could be attributed to a change in the viewers' appetites and opinions.
Section 3
* Competition
What twenty-first century television viewers have at their potential disposal, compared with even ten years ago is choice. An overwhelming montage of channels all fighting for the audiences attention, and putting questions over the quality of that choice aside for a moment, we can see that the monopolistic environment once enjoyed by public service broadcasters has been removed altogether.
Because of this exponential increase in choice, audiences tend to see the PSB's as less important to their television viewing. This may be due in part to the amount of channels available, which in turn become indistinguishable from one another, or because people prefer to watch back-to-back populist programming (see Sky One - 14th Dec, fig.1). Others would argue that public service broadcasting serves, to this day, as a `public good that has unobtrusively contributed to the democratisation of everyday life`. (Scannell, 1989: p136), and therefore should be preserved at all costs, and that there is no substitute for programming with the express interest of serving the public rather than broadcasting on a for-profit basis.
Below I have taken a snapshot of a typical evenings viewing for Sky One, BBC One and RTE1. The table provides the schedule from 5:00pm until the last slot before midnight.
SKY ONE
Time:
Programme:
Genre:
7:00
Star Trek: Voyager
Sci-Fi entertainment
8:00
Stargate SG-1
Sci-Fi entertainment
9:00
The Simpsons
Cartoon Comedy
9:30
The Simpsons
Cartoon Comedy
20:00
Buffy the Vampire Slayer
Cult Sci-fi series
21:00
Wayne's World
Film: Entertainment
22:45
Temptation Island
Documentary style fly on the wall series: Entertainment
23:45
Star Trek: Voyager
Sci-Fi entertainment
(Fig 1 - Friday 14th December 2001 - Sky One Programme Schedule)
BBC ONE
Time:
Programme:
Genre:
7:00
Blue Peter CBBC
Children's entertainment show
7:25
Newsround CBBC
News magazine for children
7:35
Neighbours
Soap: Entertainment
8:00
BBC News
News from home and abroad
8:30
UK Today
Regional News
9:00
Animal Hospital
Fly on the wall at an animal hospital
9:30
Top of the Pops
Music: Entertainment
20:00
Eastenders
Soap: Entertainment
20:30
My Family
Sitcom: Entertainment
21:00
Have I Got News For You
Topical news entertainment
21:30
Gimme, Gimme, Gimme
Sitcom: Entertainment
22:00
BBC News
News from home and abroad
22:25
UK Today
Regional News
22:35
Friday Night with Jonathon Ross
Chat Show: Entertainment
23:15
Alistair Mcgowan's Big Impression
Entertainment
23:45
The Stand Up Show
Entertainment
(Fig 2 - Friday 14th December 2001 - BBC One Programme Schedule)
RTE1
Time:
Programme:
Genre:
7:20
Nuacht
Parliamentary News
7:30
The Bill
Entertainment
8:00
The Angelus
8:01
Six One News and Weather
News
9:00
Nationwide
Regional News
9:30
The Thin Blue Line
Sitcom: Entertainment
20:00
Eastenders
Soap: Entertainment
20:30
Fair City
Soap: Entertainment
21:00
Nine O'Clock News
News
21:30
The Late Late Show
Entertainment
23:40
News Extra and Weather
News
23:50
Gorky Park
Entertainment
(Fig 3 - Friday 14th December 2001 - RTE Programme Schedule)
It should be noted that although I have used Sky One as an example of a typical evenings viewing on Sky, this ignores the other channels available through the satellite broadcaster. But in doing so I am illustrating the channels provision in terms of target audience, rejection of a public service ethos (to educate, inform and entertain), and its ability to house hour after hour of populist programming on one channel (complimenting Sky One is a mass of channels providing a wide range of programming (see Sky World and Family Pack, appendix 2)).
What is obvious from this comparison is that the public service broadcasters are providing a schedule which caters for the widest possible audience, within the structure of two channels (BBC1/BBC2/RTE1/N2). There is the argument that, instead of attempting to provide an output representative of the whole of its audience, which on the face of it seems impossible, it should specialise into more defined areas. Some complain that money being spent on paying comedians for programmes such as `Have I Got News For You` (Friday 21:00, BBC), could be better spent on this specialisation, however those arguments often come down to ones particular taste, rather than any informed argument.
What is it that public service broadcasters provide, which are deemed in the `public interest`, that those without such a remit fail to provide? It can surely not, as outlined previously be choice. Diversity, a term often associated with public service broadcasters, is no longer solely applicable to the latter as diverseness is arguably a product of greater choice. It could be argued however that the choice and diversity available from terrestrial public service broadcasters is of a higher quality and is therefore of greater value to an interested audience.
The pluralistic nature of public service broadcasting requires that they take into account the sociocultural segmentation of society, but this is often difficult because of the limited terrestrial channel space available. However, what it does do is provide a common domain, arguably important in the context of social interaction. The ability of the audience to discuss for example, the previous night's episode of Eastenders (BBC1) in the playground or at work should not be underestimated. It could be argued that a wider range of viewing could bring a greater level of social ideas and concepts, yet this ignores the `information rich/information poor` argument, and the resulting divide which has yet to be addressed.
The digression by both RTE and the BBC into digital media does not, in the current climate, resolve the problem of catering for such a large audience on a limited broadcasting frequency, simply because digital television is not widespread enough at this time. The conundrum for both organisations therefore, is that in order that they become both more diverse and competitive, their energies must go into the creation and promotion of their digital services so as to have a foothold in the future of digital broadcasting. And here lies the rub, At the moment there does not exist a platform solely intended for the broadcast of the BBC's digital programmes. It is available through NTL, Sky and ITV Digital, and therefore, the BBC is indirectly promoting the formats that have reduced their audience share and contributed to calls for its privatisation. The argument hinges on how the PSB's intend to supply their digital services in the future. They may provide a set-top box through which their channels can be received, or fund their place on the current EPG (Electronic Programme Guide), available through SkyDigital.
RTE will begin broadcasting on the SkyDigital platform from April 2002, which has emphasised its intention to fulfil its public service remit by extending its audience reach to as many parts of Ireland as possible. However both NTL and Chorus, (cable companies operating in Ireland) have complained that RTE paid a reported £6 million for its inclusion on the SkyGuide EPG (Electronic Programme Guide), whereas RTE is hosted for free, and importantly, compulsorily by the two cable operators. If Chorus Digital were to pull the plug on RTE, the low subscription rate would not cause significant damage to the public service broadcaster. However, NTL, who have a much higher subscription, and therefore attract more advertising, offers a greater problem. If NTL removed RTE from its output, advertising revenues would fall dramatically, indeed, it has already fallen in 2001 by £12 million; 15.5 million less than projected for 2002 and RTE would inevitably become bankrupt. But in doing so, NTL would almost certainly have its licence revoked, which it would appear, provides the greatest chance of survival for RTE.
As I have discussed earlier, the introduction of satellite broadcasting into the UK and Ireland has had a detrimental impact upon the public service broadcasters viewing figures. The information below illustrates the year-on-year increase and uptake of cable and satellite subscription, paralleled with a year-on-year decrease in the BBC's viewing figures. RTE has been grouped in the same category as cable and satellite, however RTE would represent only a fraction of the increase. (NB. Shares before 1996 have been rounded to nearest whole number)
Annual % Shares of Viewing (Individuals) 1981 - 2000
Year BBC1 BBC2 ITV CH4 CH5 Cab/Sat/RTE
981
39
2
49
982
38
2
50
983
37
1
48
4
984
36
1
48
6
985
36
1
46
7
986
37
1
44
8
987
38
2
42
8
988
38
1
42
9
989
39
1
42
9
990
37
0
44
9
991
34
0
42
0
4
992
34
0
41
0
5
993
33
0
40
1
6
994
32
1
39
1
7
995
32
1
37
1
9
996
33.5
1.5
35.1
0.7
0.1
997
30.8
1.6
32.9
0.6
2.3
1.8
998
29.5
1.3
31.7
0.3
4.3
2.9
999
28.4
0.8
31.2
0.3
5.4
4.0
2000
27.2
0.8
29.3
0.5
5.7
6.6
(Fig 4. Annual % Shares of Viewing (Individuals) 1981 - 2000 - www.barb.co.uk)
These figures are slightly inappropriate in foretelling the future trends in audience viewing, as they deal with terrestrial television in comparison with cable and satellite. It is expected in 2010 that the analogue/digital switchover will take place (assuming 95% of homes have converted) meaning greater ambiguity for those currently discussing the future of broadcasting. As stated earlier, we do not know how the BBC or RTE intends to house its digital services or whether it will supply their services through the current digital broadcasters, which would of course incur a subscription charge. Plans by RTE to introduce four new digital channels have recently been deferred because of the continuing financial strain upon the organisation (see p 15), which again forces the issue of how it intends to adopt and remain competitive in the future of broadcasting.
Section 4
* Funding
The issue of funding the public service broadcasters is intrinsically linked with that which I have mentioned before, from the compulsory tax levied on all television set owners, regardless of whether they watch the PSB or not, through to the perceptions of the organisations and whether they remain relevant. The license fee is one of the most controversial issues in broadcasting, in the main because it provides consistent revenue for both RTE and the BBC, but also because this is done within the framework of a market driven media environment. This is illustrated in the table in section three (p 12) where it shows the increase in audience for the `for-profit` broadcasters and a decrease for the PSB's. This increase shows little sign of slowing as it is widely recognised that the future of not only broadcasting but also the media in general lies in the digital arena.
It has been suggested that `not all of RTE's programming conforms to the public service model` (www.irtc.ie/irtcnew2.htm, 2001), which again brings us back to the problematic terminology that envelopes public service broadcasting. Essentially, what is a service to someone may well be a waste of license fee to another, and these arguments will continue. However what this does outline is that in order that the PSB's continue in their role as receivers of public money they must fulfil the expectations of the audience.
According to the RTE website (www.rte.ie), from 1st September 2001 the cost of a licence for a colour set will be £84.50, and a licence for a monochrome set will cost £66.50. This works out at around 23p per day in comparison to the UK, where the BBC's is 28.5p per day. The Irish license fee is not linked to the consumer price index, which has resulted in a loss of revenue to RTE in excess of £126 million since 1986. In contrast, costs in production of radio and television, including RTE's investment in independent productions are indexed linked, which has meant a year-on-year reduction in RTE's core funding. As stated previously, RTE receives revenue from both the advertising sector and the public sector. The license fee now accounts for around 35% of RTE's revenue with commercial revenue accounting for 65%; ten years ago this was 50/50. Across Europe, the license fee still provides the majority share of revenue for many public service broadcasters, including Italy, where commercial income operates at a round 50%, in France the figure is 40%, and in Germany and Belgium, the commercial sector provides 30% of funding. It this majority share reliance on advertising and commercial revenues which has caused serious problems within RTE, accumulating recently in a series of job cuts and cost saving proposals, designed to secure the PSB's future. I have outlined below the broad proposals, which are available from the RTE press office.
RTE's Executive board believes that:
* The deficit for 2002 must be kept to a maximum of £12 million, this is a reduction of 24 million from the 2002 budgets.
* The structure should be simplified and centrally supplied services must be reduced in a targeted and strategic way over the coming 2/3 years to maximise service and efficiency.
* We must minimise the impact on output, which itself must gain efficiencies.
The figures below are based on the targets recommended by the board, and on changes required from 2002 budget submitted.
* Radio -£1.0m
* RnaG -£0.3m
* Television -£6.0m
* Facilities -£3.0m
* TG4 (Irish language channel) -£0.75m
* News -£1.3m
* Digital media -£0.4m
* Performing groups -£1.75m
* Central services -£6.75m
* Freelance -£2.0m
* T&S / O/T -£1.5m
* CEL improved performance -£0.7m net revenue
(Fig 5. Issued by RTE public affairs, Wednesday, 31 October, 2001)
These figures represent a £24 million reduction in RTE's budget for 2002, aiming to reduce its operating deficit from £36 million to £12 million. Accompanying these figures was the announcement that staff reductions to achieve the cost-cutting targets would be agreed through the firm's internal corporate partnership mechanism, and that they were unlikely to be less than the 150 already announced.
There had been earlier attempts by TV3, the first Irish television channel not dependent on public funding, which began broadcasting as recently as 1998 (September 20th to be exact) to have RTE's funding reviewed. TV3 claimed that RTE's funding from both a license fee and from advertising revenue distorts competition and `breaks long established European Union regulations on state funding` (Television International, 1999).
It was not that TV3 disregarded the need for a public service channel, but that the content of the channel was not always within the realm of `public service`. TV3 claimed that PSB needed to be better defined, and should specialise or cater for more specific areas. It asked that sport and entertainment be removed from its public service purview, in order to create fairer competition conditions. This was in 1999, however the arguments remain the same and are broadly applicable to the BBC.
The BBC has continued to expand its commercial arm (BBC Worldwide Limited) without any reduction in the license fee. Indeed, the license fee continues to increase (£104 - 2000 / £109 - 2001), and currently the commercial sector can only be seen as complimentary to the core license fee revenue (see fig 6). The license fee of £104 for 2000, was in contrast to the standard family package available from Sky of £165.
The cash flow target for BBC Worldwide in 2000/2001 was £92 million, eventually earning £92 million, exceeding its target by 4.4%. The constituents of BBC Worldwide include the overseas sale of BBC programmes and merchandise such as the Teletubbies, The Weakest Link, and Walking with Dinosaurs, which offer, if successful, a return which has been produced almost completely `in-house`, and can therefore be distributed solely within the organisation.
Income
License fee
£2,371million
Expenditure
Television
£1,324 million
Nations and Regions
£365 million
Radio
£290 million
Digital
£144 million
Online
£52 million
(Fig 6. www.bbc.co.uk/info/report2001/review/value.shtml)
In addition to the current terrestrial schedule and the current digital services (i.e. BBC One, BBC Two, News 24 and BBC Parliament) provided by the BBC, providing permission is granted by the Government they hope to launch the following list of services on digital.
* BBC 3 - younger viewers, news, entertainment, drama
* BBC 4 - Culture, arts and serious debate
* The pre-school channel
* The channel for older children
In contrast to RTE, the BBC, it would appear, have the resources to fund the expansion of its digital services, which must surely be the most important development and developing point of the public service broadcasting sector. The funding mechanisms enjoyed by the BBC have allowed such vision and scope for the future, mechanisms that are not enjoyed by its Irish counterpart. The arguments concerning the funding of the BBC, in particular those that argue for the BBC to carry advertising are flawed in many areas. Firstly, the BBC would attract more advertising than any of the other broadcasters in the UK and in doing so would decrease the advertising revenue available to the original commercial broadcasters. Secondly, if we look at the case of RTE which has a mixed system of funding, there is the argument that the BBC would not be in the position of strength, at least in comparison to RTE, to look forward positively and constructively.
It is the case that the BBC under Greg Dyke and formerly Sir John Birt, (now Lord Birt), underwent quite radical upheaval in its structure and there was an emphasis on greater co-operation:
`As a result of the review we have taken out a complete level of management in the new structure. It's flatter, inclusive, and will result in more collaboration and less internal competition; more leadership and less management. We are also rationalising our support services which have expanded markedly in recent years.` (http://www.bbc.co.uk/info/news/news231.htm)
It could be argued that RTE has possibly been slow to implement recommendations in the past and is now paying a heavy price for its sluggishness or lack of foresight.
Section 4
* Conclusion
Public service broadcasting is no longer a term that can be banded around to describe an organisation in receipt of public funds, which claims to have an overriding policy of working in the `public interest`. So many of the terms and definitions are ambiguous, not because they are incorrect, but because the media industry has outgrown them. In section 2 I aimed to discuss what public service broadcasting means in the 21st century, in an environment of high competition and even higher stakes. Public perception of PSB is hindered because we have no solid definition from which to lever our thoughts and make informed decisions, and therefore are left a little confused as to the nature and position of public service broadcasters. In section 3 I discussed the main competition to the public service broadcasters with a view to the future, rather than placing emphasis on the current situation. I decided upon this route because it is the future of broadcasting at the PSB's preparation for it, which distinguishes it from other broadcasters. The competition to public service broadcasting, especially in the UK is relatively new and is therefore able to make the transition more smoothly. As I have stated, the BBC carries a weight of history unlike any other broadcasting organisation in the world, and therefore has to make its moves slowly and steadily. It is helped in this progression by its license fee revenue and its continual expansion into the commercial sector, something RTE recognises as its own potential future. However RTE's efforts are compromised by the down turn in advertising revenues, and the fact that its license fee is not consumer price index linked. The advertising sector is not a stable form of income, therefore the license fee must form its core funding. But with commercial revenues forming 65% of its funding, the probability of RTE moving towards a future in which it is both relevant and competitive is unlikely.
In this study, I have attempted to outline and investigate the most current social and political issues surrounding public service broadcasting in Ireland and in the UK, using key texts, the Internet (which has proved invaluable), and also by contacting RTE and the BBC for their help and guidance. It is safe to say that I did not have enough room to cover all the topics that I had intended to cover, although I have a fairly comprehensive appendix which has information concerning issues I have touched on and have investigated in more depth.
4
