RTE is looking for reform of the TV licence system because it is “not working,” a Dáil committee heard on Wednesday evening.
And the station said that “there isn’t a sustainable future for RTÉ” unless the public funding model is overhauled.
The committee also heard that the controversial Toy Show musical, that failed to sell all its tickets and was slammed in many quarters, will return next winter.
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The national broadcaster is losing money every year as people move away from watching TV the traditional way as they ditch televisions and embrace streaming services in droves.
RTE said that 16.5% of households in Ireland are now ‘no TV homes’ which is an increase from 3% just five years ago.
It costs RTE’s coffers €1.8million for every 1% that moves away from TV or doesn't pay a licence fee.
It receives €180million in licence fees from the Government through collection agents An Post, but it’s estimated that TV licence evasion costs RTE in the region of €65million every year.
Broadcasting chiefs from RTE, TG4 and Virgin were before the Oireachtas Media Committee where they laid out their claims for further public funding for their programming.
RTE’s Director of Strategy, Rory Coveney, defended the station’s calls for reform.
He denied that RTE is looking for “a bailout,” saying instead that “public funding is not working.”
He added that it is “unfair” on law-abiding licence payees too because of the numbers that don’t pay it.
Virgin TV’s Managing Director, Paul Farrell, called for more transparency from RTE over where the TV licence money goes.
He said: “There is no transparency in how public sector money is spent (in RTE) on public sector content.”
RTE’s Adrian Lynch responded, saying, “this is not about fixing RTE” adding about the public spending breakdown: “it’s all broken down in the annual report.”
Former journalist, Senator Shane Cassells from Fianna Fáil, criticised RTE for coming back looking for continued funding.
He said: “Will we have to bail out RTE every year, or charge every home in the country” regardless of whether they have an actual TV set or not.
Mr Coveney told the committee members in his opening statement: “In terms of RTÉ’s business model, we need to be very clear.
“Public funding represents over 50% of the hybrid funding model that underpins RTÉ’s public service remit.
“The current Licence Fee system is losing in excess of €65million per year and its continuing to get worse.
“There isn’t a sustainable future for RTÉ, and many of our key partners that rely on our capacity to invest, without a reformed public funding model.”
Meanwhile, Mr Coveney indicated that the infamous Toy Show Musical show will be back for another run next winter.
He claimed that the “reaction was fantastic” from the public, despite the fact that it reputedly played to half empty houses at times during its pre-Christmas run.
Mr Coveney said: “Yeah, the plan is to bring it back next year….the creative reaction was very, very strong.”
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