RTÉ set for major innovations in digital space

RTÉ’S DIRECTOR general Noel Curran has outlined sweeping changes to its digital services, including the possibility that it will launch video-on-demand (VOD) packages to paid subscribers.

In a speech in Dublin yesterday, Mr Curran said the broadcaster would integrate its online journalism with its TV and radio news departments, beef up its anti-piracy strategy and explore ways to distribute its VOD content via third parties.

“We believe that a movement by the largest domestically owned content producer and online operation in Ireland into the premium space, however limited initially, can only help build recognition from the public that online content needs to be financially supported,” Mr Curran told a conference on online business models organised by business group Ibec.

He cited the BBC’s introduction of a global iPlayer service for the iPad as “a good example of what is possible”, highlighting its monthly and annual subscription charges.

“At present, we are examining the different possible content types and mixes for different audiences, pricing strategies and technology and partnership options for these new types of services,” Mr Curran said. “Some may be free and ad-funded, some may be subscription-based, some may be event-based, some may be sponsored and some may combine different commercial elements.”

However, it would make no sense to charge users for access what he called “core” RTÉ content, such as its online news service, and it “wouldn’t in any way help other Irish traditional media organisations if we did”.

By moving online news out of its publishing division and integrating it with television and radio news, online content would “become richer, more social, more interactive and more comprehensive”, he added.

He noted RTÉ’s recent announcement that it planned to launch iPhone and iPad apps for the catch-up service RTÉ Player and said the broadcaster would explore new VOD distribution opportunities across all platforms, including internet protocol television (IPTV), cable, digital terrestrial television, smart televisions, mobile and web.

Mr Curran highlighted the value of "creative partnerships" as key to its digital future, citing an arrangement with The Irish Timesthat saw irishtimes.com live-stream RTÉ's coverage of last week's presidential inauguration.

The sharing of its content was “the result of changing relationships” in the media market, “where competitors continue to protect their own interests but realise that there are also shared interests”, he said.

The content-sharing arrangements follow a campaign last year by the National Newspapers of Ireland to try to curb RTÉ’s digital media activities to prevent market distortion. The NNI raised concerns about RTÉ using licence fee revenue to leverage the financing of its digital activities.

RTÉ’s public service values “are just as relevant online as they are on TV or radio”, Mr Curran insisted, as he outlined what he called “ambitious” plans to increase the proportion of its revenues that come from digital services from 2.5 to 15 per cent by 2015.

Despite the rapid growth in its digital services, the commercial revenue generated from them is “still a fraction of that from television and radio”, Mr Curran said.

Explaining why the broadcaster was looking to earn subscription revenue from its digital services, he noted that RTÉ earned more than €100 million from television advertising and €27 million from radio advertising last year, but revenues from its combined digital services reached just €3.5 million.

Even if the €110 million Irish online advertising market was to grow by double digits in each of the next five years and RTÉ held on to its 10 per cent share of online display advertising, its revenues from these ads would increase by €4-€6 million at best, he said.

“This is simply not sufficient to either make up for the long-term displacement of TV and radio advertising revenues or to support the development of the kind of digital services essential if RTÉ is to remain relevant in the increasingly digital lives of Irish people.”