RTÉ firmly rejects as inaccurate and false the claims made in TV3’s news release today.
TV3 mis-states and misrepresents the agreement between RTÉ and the Competition Authority around Television advertising sales. TV3’s statement is blatantly inaccurate on key points and attempts to represent a voluntary and agreed position as a forcible outturn. No finding of anti-competitive behaviour has been made against RTÉ. Such powers do not lie with the Authority but can be pursued by it through the courts. The Authority has opted not to pursue any such action.
RTÉ has concluded through a full Strategic Review that it will change to a new trading system in mid-year 2012. The review was initiated by Director General Noel Curran last March. It included extensive consultations with the advertising sector in May of this year during which a range of future trading mechanisms were evaluated.
The Competition Authority has welcomed and agreed to RTÉ’s own planned actions in respect of its advertising trading system, including an extended period of the existing ‘share deal’ trading into mid-2012. A publication formally titled ‘enforcement decision’ will be issued in mid November by the Authority. This however is a formal title for a decision publishing an investigation outcome. It is not a decision which seeks to enforce any ruling or finding against RTÉ.
The investigation initiated by TV3’s complaint has closed on amicable and agreed terms. RTÉ was happy to agree to change the way it traded. RTÉ ‘s willingness to do this was directly informed by its overall review of its airtime sales method.
Commercial Director, RTÉ Television Sales, Geraldine O’Leary stated:
“We have operated the Deal Management system since 2003 with a view to competing successfully in a rapidly-changing and highly competitive market in which RTÉ is one of very many Irish and UK-based players. The system has served a purpose for both RTÉ and for clients and advertisers. But the world has moved on and we are moving away from share-based deals. We will do so in mid-year when the systems are fully ready for us to make that change. The Competition Authority was very accommodating and agreed to our proposal to maintain this system until changes are in place as proposed by us next year. The TV3 statement is absolutely misleading.”
Issued:
Wednesday 12 October, 2011
Further information:
Kevin Dawson, Head of Corporate Communications
Tel + 353 1 208 3041 Mob + 353 87 6787142 e-mail: kevin.dawson@rte.ie