Ireland’s public service broadcaster RTÉ will receive €725 million, in a three year deal that will offset declining licence fee income.
- Compromise between those who wanted the Irish licence fee abolished and those who wanted RTÉ funded entirely through direct taxation.
- Not as much money as RTÉ was asking – broadcaster may need to make additional cuts
- New funding arrangement includes measures to improve licence fee collection.
- Virgin Media Television threatens to cut news in response.
Minister for Media Catherine Martin has confirmed new arrangements to fund RTÉ until 2027. The hybrid funding arrangement will see RTÉ receive between €225 million and €260 million each year for three years, totalling €725 million by the end of 2027.
How RTÉ’s hybrid funding is calculated
For 2025, RTÉ will receive €225 million.
This will be made up of an estimated €105 million from licence fee payers. €78 million will come from the Government to cover the cost of offering free TV licences for certain groups, like pensioners. A top up of €42 million will come directly from the Exchequer.
- The licence fee in Ireland will remain at €160 a year (around £134).
Ongoing debate over funding
Ireland, alongside many other European countries, has been grappling with how to fund public service broadcasting. RTÉ has been affected by increasing numbers of households choosing not to pay. And a number of scandals has undermined the broadcaster’s credibility.
The agreement, announced earlier today, is seen as a compromise between those who wanted the licence fee abolished and those who wanted RTÉ to be completely funded through direct taxation. RTÉ also receives money from advertising on its channels.
To tackle the country’s poor licence fee collection rate, An Post will be awarded €6 million to make improvements. Minister Martin said she has asked a TV licence fee taskforce to examine ways to increase compliance. The taskforce will report back within three months.
More cuts possible
But the amount promised to RTÉ is €55 million less than it was asking for. As a result, there’s speculation that RTÉ will need to make additional cuts and changes to its output, on top of those already announced. RTÉ will be closing a number of digital radio stations, plus timeshift channels RTÉ One +1 and RTÉ2+1. Additionally, it will cut staff numbers and move more resources to Cork.
Virgin Media unhappy
RTÉ’s main commercial rival, Virgin Media Television, has slammed the deal. It claimed it was a “reward for inefficiency an all-round bad practice”.
Despite the Irish Government also announcing a €4 million per year increase in the Broadcasting and Media Fund to €22.2 million per year, a fund that Virgin Media Television can receive funding for, the commercial broadcaster has threatened to cut back spending on news.
Alongside news, current affairs and magazine programmes, Virgin Media Television’s output largely consists of rebroadcasts of shows from UK commercial channels, notably ITV1.
RTÉ’s response
Terence O’Rourke, Chair of the Board of RTÉ, Terence O’Rourke said:
“I welcome today’s announcement by the Minister of a new funding model to help secure the future of RTÉ. The Board of RTÉ is satisfied that the funding suggested will enable RTÉ to continue the critically important process of organisational change and reform already well under way in RTÉ.
By: Marc Thornham