Proposal to enhance RTÉ's Portfolio of Services June 2018
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Proposal to enhance
RTÉ’s Portfolio of Services
June 2018
1
2018Contents
1. Introduction .................................................................................................... 3
Context ............................................................................................................. 4
2. Proposals and Public Value ............................................................................. 7
Rationale and Fit with RTÉ Strategy ........................................................................ 8
3. Fit with Public Value Criteria as per S.103(8) of the Broadcasting Act 2009 .. 15
4. Impact on the Market ................................................................................... 23
5. Conclusion..................................................................................................... 27
2
20181. Introduction
This document sets out an application to make changes to RTÉ’s portfolio of services. RTÉ is
seeking ministerial approval, as it wishes to vary the number of public broadcasting services
and make a change to an existing broadcasting service. Any such changes are subject to a
Section 103 process, in line with the provisions of the Broadcasting Act 2009 (the Act).
Strategic Context
RTÉ Strategy
RTÉ has recently published its strategy setting out its plans for the coming five years, in
Renewing RTÉ for the next generation, 2018-2022 1. This strategy was formulated pursuant to
the requirements of the Act 2 and following an extensive market and environmental analysis;
and audience and output review, across all services.
RTÉ’s new Vision: To champion Irish culture by captivating audiences with trusted, engaging
and challenging content; celebrating our country’s rich diversity; and cultivating Ireland’s
talent.
The strategy sets RTÉ on a sustainable path where public service media (PSM) will be re-
imagined for a new generation. RTÉ’s aim is to connect with and engage all Irish people,
wherever they are.
On this path, RTÉ will continue to deliver high-quality, distinctive Irish content across its
traditional channels and services, while it grows and experiments in the digital space. In an
increasingly global and more competitive market, RTÉ will continue to put audiences at the
centre of its thinking and will adapt to remain relevant to all audiences, into the future. RTÉ sets
out to meet these audience needs and its legislative obligations to reflect and connect with the
lives of all the people, by offering a comprehensive portfolio of services.
1
https://www.rte.ie/strategy/
2
Section 124(8) of the Broadcasting Act 2009
3
2018RTÉ’s strategy outlines how the organisation aims to evolve its services and content offering to
meet changing audience needs, remain relevant to audiences, and exploit new opportunities
that arise from changes in the market. RTÉ aims to give people more choice and control as to
how, when and where they consume its content and services. The over-arching intention
behind RTÉ’s content, services and distribution strategies is to put the audience first – knowing
audiences, analysing their behaviours and anticipating their needs are critical to fulfilling RTÉ’s
public service remit and implementing the strategy.
RTÉ’s services will be accessible on multiple devices and platforms to give people more choice
of how, when and where they connect with and consume content.
In progressing delivery of its overall strategy RTÉ submits this proposal under Section 103 of the
Act, to specifically address television broadcast services. Fundamental to the value proposition
that publically funded content be easily accessible; an extended RTÉ One and RTÉ2+1 will serve
to address the principles that underpin the service and distribution plans that RTÉ’s content and
services are:
• Universally available to Irish audiences
• Available in a way that is convenient to audiences
• Branded, easy to find and navigate
• Delivered to the audience at the highest quality available
Context
Media consumers are faced with an unprecedented choice of global content, platforms and
devices. This is creating a new, radically different and dynamic media landscape. New
distribution models and a drive to control the provision of services are defining the business
strategies of media companies, large and small.
While the wide and growing choice of content, channels, devices and platforms has driven a
surge in media consumption and increased connectivity, this is not about the demise of linear
media in favour of an on-demand world, now or in the future. A recent analysis by Mediatique
(commissioned by the BAI) has predicted that Live TV will remain the major component of all TV
viewing in 2022 3. Recent industry data on Irish viewing indicates that consolidated TV Viewing
3
Source: A report on market structure, dynamics, and developments in Irish Media – Mediatique
4
2018accounted for 3 hours, 13 minutes a day of the average viewer’s TV consumption in 2017 – 5
minutes a day more than 10 years ago 4. Viewing to broadcaster content (live + recorded TV and
viewing to Broadcast Players) remains in excess of 85% of all daily Audio Visual (A/V) viewing5.
There will however be continued pressure from new alternatives and RTÉ like many media
organisations must adapt and develop an agile approach to survive and thrive into the future.
The range of devices available is creating the expectation that content should be available
anytime and anywhere, yet research indicates audiences consume certain types of content over
certain devices and this varies with life stage and high-speed broadband availability.
Television services will remain the backbone of media production and consumption for the
foreseeable future. There is a greater need now more than ever to invest in and support the
development of quality Irish content to serve all citizens of Ireland with home-grown content
and Irish editorial sources. In order to support and sustain Irish culture and Ireland’s creative
sector, quality local content and editorial coverage should be at the centre of the media
ecosystem in the Irish market, within the wider context of a globalised media value chain.
The investment required to develop this indigenous content does not always make business
sense for commercial services, as the yield or value returned may not be viable. Quality, home-
grown and live Irish content carries a high cost. The contribution that a public service
broadcaster makes to this is paramount and this objective is central to RTÉ’s public service
remit (see also section 3(h) Media Plurality and Diversity).
Proposal
RTÉ will maintain the portfolio of digital television services it currently offers. This report
elaborates further on RTÉ’s proposal for enhancement to an existing service and a proposed
new service.
The following table summarises the proposed enhancement and change that RTÉ submits for
approval.
4
Source: TAM Ireland Ltd, Nielsen TAM/AV mins per person, Adults 15+, Total TV, Consolidated, National
5
Source: TAM Ireland, A/V Data Solution data, all adults, TV households, all day, 2017 - Format by minutes across
all devices
5
2018Existing Channels and Services Proposals
RTÉ One +1 To extend the broadcast hours of the existing service*
Proposed New Channel
RTÉ2 +1 To make a +1 service of RTÉ2 available
Research demonstrates that there is a clear demand for these services from audiences and the
future success of Ireland’s national free-to-air media service, Saorview depends on an
appropriate range of quality Irish content and services (see section 2. Proposals and Public
Value, Meeting Audience Needs).
RTÉ has significant responsibilities in this context and is required to maintain and operate a
national television multiplex (Saorview), as set out in legislation 6.
* Note: The RTÉ One+1 channel will not become a separate and distinct channel with its own
schedule; rather it will remain a stagger-cast channel and an exact replica of the parent
channel, RTÉ One.
6
Section 130 of the Broadcasting Act 2009
6
20182. Proposals and Public Value
The following is a description of the proposed changes to RTÉ One+1, and RTÉ’s proposal to
introduce a new +1 channel, RTÉ2 +1.These descriptions consider the public value of the
changes and include a rationale as to how these services fit with RTÉ’s objects and strategy and
meet audience needs.
RTÉ One+1
Description of proposed change to service
RTÉ One +1 is an exact replica of the RTÉ One channel, with a one hour delay; and currently
broadcasts between the hours of 19:00 and c02:00 daily.
RTÉ is seeking the flexibility to extend the broadcast hours of the RTÉ One+1 channel to provide
access to the off-peak schedule, where there is an audience need.
RTÉ proposes to extend the broadcast hours of the RTÉ One +1 channel on Saorview and
other television platforms up to 24 hours. The minimum broadcast hours will be 06:00 to
c02:00 daily, which would be an exact replica of the RTÉ One channel (from 05:00). However,
RTÉ would like to retain the flexibility to scale the broadcast hours of the channel within the
above parameters, subject to audience and scheduling considerations.
Impact on DTT multiplex
Currently RTÉ One +1 shares a 24 hour broadcast channel slot with RTÉjr on the DTT Multiplex,
with both channels operating part time hours. This proposal would necessitate the decoupling
of RTÉ One +1 from RTÉjr in order to facilitate the increased hours to be broadcast by RTÉ One
+1. Both channels would then be assigned their own 24 hour channel slot on the Saorview
platform. There would be no impact on the provision of the RTÉjr service.
Clarification
For the avoidance of doubt, the changes to the RTÉ One +1 channel do not involve the
evolution to the “RTÉ Plus” channel proposed in 2010. The RTÉ One +1 channel will not become
7
2018a separate and distinct channel with its own schedule; rather it will remain a stagger-cast
channel and an exact replica of the parent channel RTÉ One.
RTÉ2+1
Description of proposed new service
RTÉ is seeking approval to establish a +1 service of RTÉ2 available to audiences on Saorview and
other television platforms. The channel will broadcast between the hours of 19:00 and c02:00
on weekdays and up to 24 hours on Saturdays and Sundays.
RTÉ proposes to make a +1 service of RTÉ2 available, which would be an exact replica of the
RTÉ2 schedule in peak-time (from 18:00) Monday to Friday, broadcast 19:00-c02:00 and
initially broadcast from 12pm to c02:00am on Saturday and Sunday with a one hour delay.
However, RTÉ would like to retain the flexibility to amend the broadcast hours of the channel
subject to audience demand and for special events, particularly sporting events where the
schedule requires this flexibility. Scenarios where this might apply include major sporting
events and tournaments such as World Cup, Olympics or golf coming from other time zones.
Impact on DTT multiplex
RTÉ 2+1, as a new service, would be assigned its own 24 hour channel slot on the DTT multiplex.
This will allow the channel to broadcast in peak time Monday to Friday and 24 hours at
weekends.
Rationale and Fit with RTÉ Strategy
It is important that RTÉ continues to bolster its linear schedules, while experimenting in the
digital space, in pursuit of its public service objects. It is RTÉ’s view that the enhancement of
RTÉ One +1 and the proposed new RTÉ2+1 service is both warranted and desirable and forms
part of a wider strategy to enable multiple points of engagement with a broad portfolio of
services.
The extension of the hours of RTÉ One +1 will increase the opportunity to access this flagship
public service content, by widening it beyond the peak time schedule.
8
2018RTÉ2 +1 seeks to address a demonstrable audience need and expectation (see section 2.
Meeting Audience Needs) by creating increased opportunities to view RTÉ2 programming, as
RTÉ One +1 currently does in peak time.
It is RTÉ’s responsibility to the licence fee payer to continue to keep RTÉ One +1 and the
proposed RTÉ2+1 under review and to ensure any proposed enhancements are proportionate
and sustainable, in an environment where media consumption habits continue to evolve and
change.
The proposed extension of RTÉ One +1 and the provision of an RTÉ2+1 channel is consistent
with RTÉ’s obligations; complements RTÉ’s portfolio of services offering; reflects the range and
diversity of content; increases efficiency and value for money; and potentially generates a net
contribution, before broadcast charges (see also section 4: cost and revenue projections and
impact on existing public service provisions).
Meeting Audience Needs
These proposals strengthen the offering on Saorview, Ireland’s free digital television
platform
An extended RTÉ One +1 and RTÉ2+1 offers greater access to a range of culturally relevant
content and more choice to the audience in the 661,000 Irish homes that have Saorview. Of
these, some 188,000 are Saorview only homes 7 (see also section 3(h) Media Plurality and
Diversity).
+1 channels provide value, by offering the convenience of a form of time-shifted
functionality
RTÉ’s 2018-2022 strategy puts the audience first and aims to let audiences choose how, when
and where they view, listen or consume content. In the current broadcast landscape +1
channels play an important role, offering a specific form of time-shifted functionality, which
allows viewers to watch linear channels an hour later than the initial broadcast; providing
another opportunity to view programmes at a time more suited to their lifestyle.
7
Source: Nielsen Establishment Survey, January 2018
9
2018Despite the increased uptake of on-demand services including Web TV (Netflix, YouTube etc)
and the ubiquity of PVR devices, live and near-live viewing remains the most important and
frequently used method of audiovisual (AV) consumption for the majority of people. Live
viewing accounts for 72% 8 of the total "video day" for an Adult aged 15+. This reflects the fact
that linear channel scheduling and marketing are designed to encourage linear viewing:
programmes continue to be scheduled and promoted to appeal to specific audiences, at
different times of the day (see also section 3(d) Meeting the Cultural, Social, Democratic and
Other Needs of Irish Society).
Research demonstrates that life-stage is the key differentiator of the media needs of Irish
people 9. These life-stages or phases in people’s lives are drivers of attitudes and behaviour.
There is a spectrum of needs, which vary across distinct audience segments. +1 channels can
respond to some of these needs, such as the need to relax and unwind or to be empowered
and up-to-date.
For example: the parents in a busy family (with small children) might only get to sit down and
watch TV after 9pm, on a weekday night. RTÉ1+1 enables them to watch ‘Home of the Year’ at
9.30pm; knowing that they could then easily tune into RTÉ2+1 to watch ‘This Crowded House’
at 10.30pm (no need to pause or record, etc), or earlier in the day, a young woman (under 45,
with no dependent kids) would now have the opportunity to tune into ‘Today with Maura &
Dáithí’ on RTÉ One+1 (which she would otherwise have missed), when she returns home from
work at 5.30pm.
+1 channels provide a convenient catch-up service to meet the needs of people who
do not use online catch-up services like RTÉ Player or do not have access to
broadband.
Although RTÉ Player uptake has been growing, recent research indicates that 47% of Irish adults
(18+) have ever used the Player for catch up, with 25% using it on a weekly basis10.
Furthermore, 12% of Irish households do not have a broadband subscription (fixed or mobile) 11,
so could not use online catch-up even if they were so inclined.
8
Source: TAM Ireland A/V Data Solution data – all adults, TV households, all day, 2017 – includes all forms of
video, e.g. short form)
9
RTÉ Audience Segments 2017/2018
10
Source: B&A RTÉ Player Research October 2017
11
Source: https://www.comreg.ie/publication/quarterly-key-data-report-q4-2017
10
2018RTÉ One and RTÉ2 offer a range of diverse public service content. RTÉ One is a focal point for
major events, while RTÉ2 brings the nation and local communities together for the greatest
sporting events. It is important that the digitally disenfranchised are included and served by the
national broadcaster; and an extended RTÉ One+1 and RTÉ2+1 are key to this (see also section
3(f) Reaching Underserved Audiences).
+1 channels have become an audience expectation
As the broadcast market evolves viewers experience a greater choice over when and where
they can watch video content and +1 channels are seen as another viewing option, alongside
catch-up and demand. Since Analogue Switch Off (ASO), increased spectrum availability has
enabled the launch of many new +1 channels. In 2010 there were approximately 72 +1 channels
available in Irish TV households. In 2018 this has risen to 104 +1 channels, one +1.5 channel,
five +2 channels and one +3 channel. TV3 launched TV3+1 on Virgin Media in December 2014
and on Sky in April 2015. Such is their pervasiveness; these channels have become an
expectation of the viewing public (see also section 3(g) Innovation).
Sky has recently made some changes to channel listings in the TV Guide, grouping all the +1
channels together in one place and under a dedicated menu. This was in order to improve the
viewer experience and to make +1 channels easier to find on their platform, providing viewers
with a second chance to view their favourite programmes 12.
These proposals will facilitate greater access to indigenous media and a diversity of
Irish content, strengthening RTÉ One and RTÉ2 in pursuance of RTÉ’s public service
objects
In the context of the changing broadcast landscape, quality live and narrative Irish content is
important and remains an audience need. A flexibility in the broadcast hours of RTÉ One+1
would enable parts of RTÉ One’s daytime schedule to be broadcast, giving access to regional
programming such as the Today Show, as well as special event or seasonal programming such
as horse-racing, political party Ard Fheiseanna and other national events.
The proposed RTÉ2+1 service would complement RTÉ One +1 in peak-time, by offering
audiences increased access to a variety of programming in key genres such as sport, Irish
comedy and factual, while at weekends access will be increased to the best of documentaries,
the best of Irish feature films and weekend sport. The +1 proposals will strengthen RTÉ One and
12
https://www.sky.com/help/articles/changes-to-channel-numbers-on-the-tv-guide-roi
11
2018RTÉ2 as channels in pursuance of RTÉ’s public service objects, helping to secure important
cultural and social goals, by broadening the availability of Irish originated content (see also
section 3(d) Meeting the Cultural, Social, Democratic and Other Needs of Irish Society).
These proposals help RTÉ to bolster its linear services and protect the visibility of Irish
public service media on digital platforms
In an increasingly fragmented and competitive market RTÉ One+1 and the proposed RTÉ2+1
can assist in stabilising RTÉ’s share of viewing and strengthen the RTÉ channels as a whole, by
presenting more opportunities to view flagship Irish programming and news; and as such
helping to sustain the relevance and visibility of public service programming (See also section
3(h) Media Plurality and Diversity).
Over half of adults claim to watch RTÉ One +1 at least once a week in 2018 – an
increase of 20 percentage points since 2015
Research conducted on RTÉ’s Audience Reaction Panel 13 in February 2018 found that 64% of
those surveyed watched +1 channels at least once a week. Over half or 52% claimed to watch
RTÉ One+1 at least once a week, an increase of 20 percentage points since Feb 2015 (32%),
while this figure rises to 62% of over 55s (see also section 3(d) Meeting the Cultural, Social,
Democratic and Other Needs of Irish Society).
There is broad audience support that it is important for our society that channels like
RTÉ One +1 and RTÉ2+1 are available free to air
When surveyed, the audience who watch +1 channels support this view, with eight out of ten
(82%) agreeing that it is important for our society that a channel like RTÉ One+1 is available
free to air and six in ten (61%) agreeing that a channel like this is a good way of using the TV
Licence fee – see chart below.
13
An online research panel, independently managed by GFK on behalf of RTÉ – nationally representative in terms of age,
gender, social class, region and TV reception type
12
2018Chart: Attitudes to RTÉ One+1, Source: RTÉ Audience Opinion Survey, February 2018
The research also found that three in four (77%) agreed that it is important for our society that
a channel like RTÉ2+1 would be available free to air, with six in ten (61%) agreeing that a
channel like this “is a good way of using the TV Licence fee”, thus enabling more viewers to
benefit from RTÉ’s investment in Irish content.
Chart: Attitudes to RTÉ2+1, Source: RTÉ Audience Opinion Survey, February 2018
13
2018The majority (64%) of respondents also agreed that if RTÉ2+1 could be made available to RTÉ at
a low cost that they would be in favour of the service being available on weekdays at peak time
and all day on Saturdays and Sundays.
If RTÉ 2 +1 could be made available at a low cost to RTÉ, would you be in
favour of making the RTÉ 2 +1 service available on weekdays between 6pm
and 11:30pm, and all day on Saturdays and Sundays?
Yes
No
% of respondents 64% 11% 25%
Can't say/Don't know
Chart: Attitudes to RTÉ2+1 (2), Source: RTÉ Audience Opinion Survey, February 2018
14
20183. Fit with Public Value Criteria as per S.103(8) of the
Broadcasting Act 2009
Public Value Criteria
The principle of the public value of a +1 service was first established when RTÉ One +1 was
originally approved; and re-affirmed under the ministerial review, in 2016 as follows:
• 2010 - RTÉ One+1 was approved under Section 103 of the Broadcasting Act.
• 2015 - As part of the review of the approved services required under the Ministerial conditions,
RTÉ submitted the Report on the Performance of Digital Services 2011-2014. 14
• 2016 - the minister having reviewed the RTÉ report and “based on the performance of each
service to date and the importance of ensuring the (Saorview) platform remains competitive and
relevant “ considered that “the 2011 services should continue in operation and to serve their
respective audiences”. 15
This submission proposes to extend the hours of availability of RTÉ One+1 and to make a +1
service of RTÉ2 available. RTÉ has considered the public value of the proposals as a package,
but where appropriate has identified the public value associated with each proposal, as follows:
a) Fit with RTÉ Public-Service Objectives
The importance of these proposals in pursuance of RTÉ’s public service objects and audience
appeal has been addressed in section 2. Proposals and Public Value, above.
b) Compatibility with EU Legislative and Regulatory Frameworks
The proposals are compatible with EU and the Council of Europe Recommendations
The vast majority of public service broadcasters have introduced +1 services, in order to
maintain relevance and brand prominence in an increasingly globalised and fragmented media
environment; and have done so in a way that is compatible with EU and council of Europe
14
https://www.dccae.gov.ie/documents/Report%20on%20Performance%20of%20RTE%20Digital%20Services%20201%20-
%202014%20Part%201.compressed.pdf
15
https://www.dccae.gov.ie/documents/160901%20Letter%20to%20Moya%20Doherty%20Performance%20of%20RTE%20Digital%20Services.
pdf
15
2018recommendations. An extended RTÉ One +1 and a new RTÉ2+1 will help to deliver RTÉ’s public
service remit, providing greater access to public service content and choice, particularly in
Saorview homes.
c) Costs & Revenue Associated with Proposals and any impact on existing public service
provision
The costs and revenues associated with the proposals and market impact are detailed in
section 4. Impact on the Market.
d) Meeting the Cultural, Social, Democratic and Other Needs of Irish Society
The proposals will strengthen the parent channels in pursuance of RTÉ’s public service
objects, by broadening the availability of RTÉ’s content
The parent channels, RTÉ One and RTÉ2 continue to deliver high-quality, trusted, distinctive
Irish content, responsive to the interests and concerns of the whole community. These
proposals offer value and convenience to those viewers, who might otherwise miss these
programmes, by delivering a second opportunity to view, rather than perhaps being compelled
to switch to non-Irish content.
The +1s proposals will strengthen RTÉ One and RTÉ2 as channels in pursuance of RTÉ’s public
service objects, helping to secure important cultural and social goals, by broadening the
availability of original Irish drama and comedy, high quality documentaries in the Irish and
English languages, moments of Irish entertainment; and balanced, impartial and independent
news, current affairs and investigative journalism on RTÉ One +1; and the availability of great
sporting moments, special events and new Irish voices, through compelling factual and new
comedic talent on RTÉ2+1.
Greater representation of Irish Identity against an array of international offerings
In 2017 89% 16 of RTÉ’s programme content spend was on Irish originated content, made or
commissioned by RTÉ (investing in Irish journalism, Irish culture and programming and the Irish
independent production sector). Therefore leveraging its visibility and accessibility is
fundamental to the promotion of Irish content, and the work of the Irish creative sector.
16
Source: RTÉ Annual Report 2017, Note 2. Principal Activities and Segmental information
16
2018Current research suggests that the audience recognise the impact of this content, with 77% of
adults agreeing that ‘RTÉ reflects Irish society’ 17
+1 channels offer the convenience of a form of time-shifted functionality to better suit
lifestyle needs.
RTÉ’s 2018-2022 strategy puts the audience first and aims to let audiences choose how, when
and where they view, listen or consume content. In the current broadcast landscape +1
channels play an important role, offering a specific form of time-shifted functionality, which
allows viewers to watch linear channels an hour later than the initial broadcast; providing
another opportunity to view programmes at a time more suited to the needs of their lifestyle.
For example, 90% of adults agreed that “+1 channels are a convenient way of seeing TV
programmes that are on at the same time as another programme I want to watch” 18 (see also
Chart ‘Attitudes to +1 Channels’ included under section 3 (e).Improving Accessibility)
RTÉ2+1 will better serve younger Irish audiences.
RTÉ2+1 would better serve younger audiences in Ireland. Younger viewers who might
otherwise miss Irish sport, entertainment or young people’s content on RTÉ2 will have a second
opportunity to view, rather than potentially switching to non-Irish programming, which would
in turn limit their access to culturally relevant content.
The growth in reach and share of viewing demonstrates the demand for +1 channels
among the Irish public and therefore a societal and democratic need is being met
Audience figures 19 demonstrate that almost 3.5 million Irish individuals tuned into RTÉ One+1,
in both 2016 and 2017. The audience has increased significantly since the channel become
more widely available, following its launch on the Sky platform in late 2015.
RTÉ One +1 Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec
( 1 min Consecutive Reach) 2012 2013 2014 2015 2016 2017
1,941 2,075 2,026 2766 3,437 3,436
National Individuals 4+
(47.2%) (50.9%) (48.9%) (67.1%) (84%) (80.3%)
Table: RTÉ One +1, National Individuals 1 min cons. Total Reach by Year
17
Source: REDC RTÉ Brand & Reputation Tracker 2017
18
Source: Attitudes to +1 channels; RTÉ Audience Opinion Survey, February 2018
19
Source: TAM Ireland Ltd/Nielsen TAM
17
2018As the following chart demonstrates, share of viewing to RTÉ One+1 has trended upwards since
2012. Nationally, share in 2016 and 2017 has quadrupled since 2012 from 0.21% to 0.83% in
2017. While this may seem small, it makes an impact in terms of share of all Irish channels
(~50%). Share is significantly stronger, up to 1.82% in 2017, in homes with Saorview as the main
(only) reception type – see chart below.
Chart: Share, RTÉ One+1, National Households and Saorview homes by household main reception type
e) Improving Accessibility
An extended RTÉ One+1 and RTÉ2+1 will be widely available on all main TV platforms
and this forms part of a wider strategy to enable multiple points of engagement for all
audiences, within a diverse portfolio of services.
RTÉ One+1 launched on Saorview in May 2011 and on Saorsat in May 2012. The channel
launched on UPC (now Virgin Media) in March 2012 and the Sky Platform in December 2015. It
is now available in approximately 90% of Irish TV households. It is RTÉ’s intention to make
RTÉ2+1 available on Saorview and under the ‘must carry’ and ‘must offer’ provisions of Section
18
201877 of the Act, this service will be offered to all television platforms, including Sky, Virgin Media,
Eir, Vodafone TV and Aer TV.
An extended RTÉ One +1 channel and an RTÉ 2+1 channel will provide value to those
people who do not or cannot access online catch-up services like the RTÉ player
The proposals provide a cost-effective catch-up option for the 71% 20 of households who do not
use the RTÉ Player or the 12% of homes who do not have a broadband subscription.
A survey conducted on the RTÉ Audience Reaction Panel 21 during February 2018 (which
followed an initial survey three years ago), demonstrates the continued value the public places
on +1 channels. Audiences rate these services primarily for their convenience in the case of
simultaneous programming and as sources of additional viewing choices. These findings
confirm that these channels are important at a societal level for those who do not or cannot
use online catch up services. Detailed findings can be seen in the chart below (see also section
2. Meeting Audience Needs).
Chart: Attitudes to +1 Channels, Source: RTÉ Audience Opinion Survey, February 2018
20
Source: Nielsen Establishment Survey January 2018 – base is households, not adults
21
An online research panel, independently managed by GFK on behalf of RTÉ – nationally representative in terms of age,
gender, social class, region and TV reception type
19
2018f) Reaching Underserved Audiences
RTÉ One +1 has broad appeal with universal reach. It is expected that RTÉ2+1 would
appeal to the often difficult to reach under 35 audience segment.
Four in five (80%) individuals were reached by RTÉ One+1 in 2017 indicating a significant
demand for the service – see chart below. Reach is highest among farmers (adults f1f2) at 96%
and people aged over 35.
While RTÉ One/RTÉ One +1 content is not directly targeted at 15-34s, seven in ten (74%) did
tune into RTÉ One+1 in 2017. This therefore suggests that RTÉ2+1, which would provide
programming that appeals to younger adults, would attract a high level of interest from this key
audience, thus better serving this often difficult to reach audience segment.
RTÉ One +1, 2017 Reach and Share
Consolidated by audience
120 1.6 1.8
1.6
100 84 88 82 82 82 96
80 79 79 80 1.4
80 74
1.2
0.9 0.9 0.9 1.0 1
60 0.8
0.8 0.8
40 0.6 0.8 0.8 0.7 0.6
0.4
20
0.2
0 0
Reach % Share %
+1 channels offer extra choice and convenience to households without high speed
broadband access
In order to load internet pages instantaneously and enjoy online video streaming without
buffering, a high speed broadband connection is required. This is defined as broadband with at
least 30 megabits per second (Mbps) download. Currently 30% of premises in Ireland do not
20
2018have access to high speed broadband 22. Without high speed broadband and until fibre
broadband is rolled out across the country, consumers have a limited set of online services to
choose from and therefore cannot access streamed video services such as the RTÉ Player or
subscription TV services. RTÉ One +1 and RTÉ2+1 can provide extra value to these households,
who would otherwise be less well served than the majority, through the convenience of access
to time shifted RTÉ schedules.
The proposals offer value to those who cannot afford to or do not wish to opt for Pay
TV
Consumers have greater choice and control, in the context of the shifting dynamics of the TV
landscape. Some choose not to subscribe to Pay TV. Saorview offers Ireland’s only free digital
television service. The proposed channel choice and accessibility to RTÉ content is increased in
the 188,000 23 Saorview only homes.
g) Innovation
The plus one channel is one of the early technological innovations in digital
convergence and it remains a valid and much used functionality
Since Analogue Switch Off (ASO), increased spectrum availability has enabled the launch of
many new +1 channels. See also section 2. Meeting Audience Needs, +1 channels have become
an audience expectation).
The introduction of RTÉ2+1 would be the first such Irish public service +1 channel
serving content specifically to younger Irish adults.
h) Media plurality and diversity
The proposals strengthen the visibility of public service media on digital television
platforms
The increased convergence of media and telecommunications industries on a global scale has
resulted in significant market fragmentation. This is resulting in increased concentration at each
stage of the audiovisual value chain; production, broadcasting, distribution. It is essential that a
22
https://www.dccae.gov.ie/en-ie/communications/topics/Broadband/national-broadband-plan/high-speed-
broadband-map/Pages/NBP-Map.aspx
23
Nielsen Establishment Survey – January 2018
21
2018strong independent, indigenous media and diversity of Irish content is secured; in a world
increasingly inhabited by internationally-owned media organisations, social media platforms
and international programming and content. As Ireland’s main public service media
organisation it is important that RTÉ remains at the centre of Irish public and cultural life. These
proposals help RTÉ to protect overall audience reach and share, ensuring that public service
media remains visible on digital television platforms. (See also section 2. Meeting Audience
Needs)
RTÉ One +1 and RTÉ2+1 provide the audience with an extra opportunity to easily
access the range and diversity of quality Irish content, helping to ensure that a more
diverse range is consumed, than may otherwise have been the case
RTÉ One +1 and RTÉ2+1 provide the audience with an extra opportunity to easily access the
range and diversity of quality RTÉ content, helping RTÉ to sustain a vibrant and diverse
indigenous culture and to develop and support local programme makers. This also helps to
ensure a strong distinctive Irish voice and identity, in the Irish media landscape.
The proposals strengthen the offering of the Saorview platform, in a highly
competitive environment, otherwise controlled by large international media groups
The +1 proposals help to secure a healthier future for Saorview, Ireland’s free digital service.
Saorview is in 661,000 Irish homes. Of these, some 188,000 are primary homes, meaning that
they are Saorview-only homes. Approximately 200,000 pay-television homes also have
Saorview as a secondary box. The remaining homes combine Saorview with UKDTT or Free-To-
Air satellite 24 (see also section 2. Meeting Audience Needs).
24
Source: Nielsen Establishment Survey – January 2018
22
20184. Impact on the Market
The following details the value for money and potential market impact of the proposals; the
potential reach of the services; how the services will be funded and cost and revenue
projections.
Value for Money, Increased Efficiency, Quality and Distinctiveness
+1 channels enable audiences to more easily access content that their licence fee has paid for,
thereby enabling them derive greater value from their contribution. Providing additional
viewing possibilities increases efficiency and optimises RTÉ’s investment of public service funds
in home-produced programmes, sports rights and acquired series. Some potential revenue may
also be generated which can be reinvested in RTÉ’s portfolio of services. Any additional revenue
will serve to improve the range and quality of RTÉ’s content offering to the audience,
particularly as regards home grown content and therefore delivers improved value for their
licence fee.
Market Impact will be minimal in scale and proportionate to public value; and will not
inhibit the growth of Irish operators
A shift towards digital advertising and media convergence has resulted in the competition for
audiences and revenue being more intense than ever, with global players, such as OTT services
and Internet giants, now increasingly operating in local markets.
At the start of 2001 there were just eight television channels selling advertising in the Irish TV
marketplace, of which four were from outside Ireland. There are now a total of 50 channels
directly targeting audiences in Ireland, with UK channels accounting for 41 of those – these are
channels with little or no commitment to Irish content or the Irish creative sector. In the
context of ongoing financial constraints RTÉ believes it is appropriate to seek to enhance and
where possible generate some additional commercial value from its services, which can
contribute towards the maintenance of RTÉ's public services.
Pay TV Operators will benefit from access to an extended RTÉ One +1 and RTÉ2+1,
helping to sustain the revenues they get from their subscribers.
The content provided by RTÉ’s linear services is fundamental to the value proposition that is
offered by pay TV operators, to their consumers (see also section 2. Meeting Audience Needs,
+1 channels have become an audience expectation).
23
2018The appeal of +1 channels can be demonstrated by the growth in reach and share of viewing to
RTÉ+1, since its launch (see also section 3(d) Meeting the Cultural, Social, Democratic, and
Other Needs of Irish Society).
Potential % Share - Commercial Impact
RTÉ One+1 will continue to be available on Saorview, Virgin Media, Sky, Eir, Vodafone TV and
Aer TV (Magnet). In extending its broadcast hours from the current 1900 to 0200 (7 hours) to
24hrs it is anticipated that RTÉ One +1 will increase its audience share from 0.82% (in 2017) to
almost 1%.
RTÉ2+1 will be available at peak time Mon-Fri and up to 24hrs Saturday to Sunday. RTÉ
anticipates that the channel will grow over a couple of years to achieve an audience share of
0.5%.
Currently over 75% of commercial impacts (and therefore revenues) are generated during peak
time, meaning that extending the hours on RTÉ One+1 to 24 hours will not add a similar level of
ratings in off peak time. RTÉ2 has a lower audience share than RTÉ One, and therefore does
not generate as many commercial impacts, but it can be assumed that the impact of a +1
channel will be similar, proportionate to the broadcast hours. It is assumed that the audience
to RTÉ2+1 will grow over a few years, based on the experience of RTÉ One+1.
Potential Revenue - Effect of Longer Hours on all Platforms
Incremental revenue due to change in broadcast hours for RTÉ One +1 = circa €300k pa
Incremental revenue due to addition of RTÉ2 +1 = circa €500k in year 1, growing to circa €900k
in year 3.
24
2018Cost and Revenue Projections and Impact on Existing Public Service provisions
RTÉ1 +1 24 Hours
2018 2019 2020 2021 2022
€000s €000s €000s €000s €000s €000s
Income
Advertising / Sponsorship 78 311 314 318 321
Content, merchandising and related sales
Other Income
78 311 314 318 321
Expenditure
Set up costs
Technology Infrastructure 151
151
Ongoing Expenditure
Infrastructure Support & Maintenance 3 11 11 11 12
1
Audience Research 1 5 5 5 6
Music Rights 8 30 30 30 30
Operating Costs 12 46 47 47 47
Depreciation of Set up Costs 8 30 30 30 30
Net Contribution before RTÉ DTT broadcast charges (Note pg. 26) 59 235 238 241 243
DTT Multiplex Broadcast Charges (net incremental
cost of moving RTÉjr to separate channel) 163 650 650 650 650
Net Incremental Contribution/(Deficit) (104) (415) (412) (409) (407)
1
Audience research costs for RTÉ One +1 represent the incremental costs for extending the broadcast hours.
25
2018RTÉ2 +1
2018 2019 2020 2021 2022
€000s €000s €000s €000s €000s €000s
Income
Advertising / Sponsorship 87 523 697 872 872
Content, merchandising and related sales
Other Income
87 523 697 872 872
Expenditure
Set up costs 0
Technology Infrastructure 117
117
Ongoing Expenditure
Infrastructure Support & Maintenance 3 11 11 11 12
1
Audience Research 11 46 47 48 49
Music Rights 8 30 30 30 30
Operating Costs 22 87 88 89 90
Depreciation of Set up Costs 6 23 23 23 23
Net Contribution before RTÉ DTT broadcast charges (Note below) 60 413 586 759 758
DTT Multiplex Broadcast Charges 168 670 670 670 670
Net Incremental Contribution/(Deficit) (108) (257) (84) 89 88
1
Audience research costs for RTÉ2+1 are higher than RTÉ One +1 because they include set up costs in relation to audience
measurement for a new service.
Note: RTÉ charges each service to broadcast on the Saorview platform; however these DTT
multiplex broadcast charges do not represent an outflow of funds from the RTÉ Group.
Consequently they do not impact on the capacity of RTÉ to maintain its existing services. In
both proposals RTÉ is expecting to generate a net contribution annually before the DTT
broadcast charges.
The DTT multiplex broadcast charges are based on the regulated tariff, determined under
ComReg Decision No. D11/13 25.
2018 projections are representative of Q4 2018, only. This timeframe is dependent upon the
outcome of the Section 103 process.
25
https://www.comreg.ie/csv/downloads/ComReg1371.pdf
26
20185. Conclusion
The enhancements to RTÉ’s portfolio of services set out in this proposal, subject to the
outcome of this Section 103 process, would be introduced in tandem in a coordinated way,
ideally from Q4 2018.
RTÉ envisages an overall added public value of an extended RTÉ One +1 and RTÉ2+1 to achieve
the following:
Improved convenience and accessibility of Irish content to audiences and a stronger RTÉ
presence on digital platforms; including an enhanced offering on Ireland’s free digital television
service, Saorview.
These improvements would bring added value in a way that generates minimal risk to RTÉ’s
current activities or budget for existing services. Such enhancements will have a minimal impact
on existing players in this market and are unlikely to inhibit potential growth in these areas by
other Irish operators.
Any additional revenue generated would deliver added valued to Irish licence fee payers
through the growth and development of compelling Irish free to air content which is central to
RTÉ’s public service objects; and to help protect the longer term relevance of public service
broadcasting in Ireland.
This proposal supports the delivery of RTÉ Strategy 2018-2022, Renewing RTÉ for the next
generation 26.
26
https://www.rte.ie/strategy/
27
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