Netherlands Public Broadcasting. Hilversum, 6 November 2014
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1 Netherlands Public Broadcasting Hilversum,
2 Requested subjects Experiences since the abolishment of the license fee in 2000 Accountability to audiences Distinctiveness/public value of public service media Minorities programming Performance of public service media on new platforms
3 Financing public service broadcasting Method of financing Membership contributions Licence fee Licence fee + Advertising Government contribution + Advertising 3
4 Financing public service broadcasting (2) Cabinet period Kok III Fiscalisation (2000) Balkenende I M Balkenende II M Balkenende III Balkenende IV M Rutte I M Rutte II (- 100 M) - 50 M 4
5 Relatively low income pro capita 5
6 Even lower as % of GDP Source: EBU members data 6
7 Lower third 7
8 Remit of PSM in Dutch Media Act Public service media services have to meet the democratic, social and cultural needs of Dutch society, by offering media content that: is balanced, pluralistic, diverse and of high quality and characterized by a great diversity of form and content; provides a balanced image of society and reflects the population s pluralism from the perspective of beliefs, opinions, attitudes and social, cultural and philosophical matters; focuses on a reaching the general public, different population and age groups with particular attention to small groups; is independent of commercial influences and government influences, except for situations clarified by the law; meets high journalistic and professional standards; and is accessible to everyone. NPO and the public service media institutions stimulate technological development and utilise the opportunities to offer media content to the public via new media and distribution techniques. 8
9 Mission & Vision NPO Mission Our mission is to bring Dutch residents together and enrich their lives with programmes that inform, inspire and entertain. Vision In our vision NPO plays a vital role in the life of each Dutch resident. Its programmes engage NPO viewers, listeners and users in social issues, fuel public debate and bring the Dutch together in a society that is rich in diversity. NPO connects people in the Netherlands with the world around them and broadens their horizons. 9
10 STRATEGY Strategy Distinctive & Findable Ambitions leadership and distinctiveness in content (esp. Dutch original content) connective and personalised introduction of a strong NPO brand optimalisation of distribution, coherence in the delivery transition from an administrative to a creative company 10
11 policy cycle accountablity Accountability Concession Policy Plan (+ visitation ) Performance Agreement Review Medium Term Budget Medium Term Budget Evaluation 11
12 Accountability Action / Reaction Policy framework (= Concession Policy Plan) Lower House of the Parliament NPO Performance Agreement Monitoring by the Dutch Media Authority 12
13 Performance agreement : examples Supply Reach Impact Distinctive mix of genres TV: 85% weekly reach Agenda setting functon Live reports of events Radio: increased reach of young listeners Public considers supply of good quality and pluralistic 13
14 Facts & Figures 14
15 Audio visual media in the Netherlands Public Service Media Commercial media 15
16 National public television 16
17 National public radio Radio 1 news, current affairs, sports FM Radio 2 family channel FM Radio 3FM pop music FM Radio 4 classical music FM Radio 5 information, service, light music + education, religion, debate, etc. AM Radio 6 World music, jazz and cultural - information FunX Young urban people FM All also available on DAB+, cable, satellite, DVB-T, internet, mobile 17
18 FACTS & FIGURES VERY COMPETITIVE TV-MARKET (also goes for radio): RTL 4 CHANNELS NPO 3 CHANNELS SBS 3 CHANNELS August 2013 September 2013 A wide range of thematic channels aimed specifically at the Dutch market: e.g. Eurosport, HBO, Film1, Discovery, National Geographic, Animal Planet & all kinds of European (public) channels (e.g. BBC, VRT, ZDF, ARD, WDR, RAI, ARTE, TV5, TVE,TRT) NPO 1 (2 brands) part of Channel 3: CHILDREN S PROGRAMMING Commercial channels: 7 Percentage of households with digital reception in 2013: 82%) 5
19 Average audience shares TV channels (in %; 18:00-00:00; 6+) TV channels national public regional public total Dutch public channels RTL Nederland SBS Group other Dutch comm. 7.7* 6.8* total Dutch commercial channels VRT TV VRT KetNet/Canvas other channels 3.4* 2.5* video/dvd/hdr (*adapted calculations ) 7
20 Average audience shares of radio channels (in %; 00:00 24:00; 10+) Radio Radio Radio 3FM Radio Radio ,0 0.8 Radio national public channels regional public channels total Dutch public channels national commercial channels ,0 regional commercial channels total Dutch commercial channels other channels
21 Main characteristics mission public service broadcasting in the Netherlands Independent of state influence Independent of commercial influence Comprehensive programme schedule (information-entertainment-education -culture-etc.) Catering for the whole public: majority and minority interests Importance of quality, creativity, new developments, etc. 21
22 Unique NPO public service broadcasting system - national broadcasting based on 'external pluriformity': two dozen broadcasters (of which ten associations) under NPO 'umbrella', sharing 3 television and 7 radio channels [& thematic channels & internet] - privatised technical facilities (since 1988; now Ericsson) - on local, regional and international level independent PSB organisations - danger of fragmentation (specially in face of commercial competition since 1989) - pressure for increased co-operation and co-ordination on national level and between levels. Reduction of amount of broadcasting associations/organisations 8 broadcasters in 2016 integration regional broadcasting in 2017 (?) - since 2000 (low) licence fee replaced by a government contribution from the income tax frequent government intervention on budget Date: 13 May
23 Simplified structure regional public broadcasters 23
24 Dutch Public Media: diversified 24
25 Netherlands public service broadcasting: main national organisations 2013 ASSOCIATIONS AVRO (1923): General BNN (1998): Young audience EO (1968): Evangelical Christian KRO (1925): Roman Catholic MAX (2005): Elderly audience NCRV (1924): Protestant Christian TROS (1966): General VARA (1925): Progressive VPRO (1926): General/progressive SPIRITUAL BROADCASTERS IKON (Protestant) BOS (Buddhist) RKK (Roman Catholic) HUMAN (Humanist) OHM (Hindu) ZVK (Protestant) JO (Jewish) MO (Muslims) GENERAL BROADCASTERS NOS (1969): news, sport, special events NPS (1995): cultural/minorities Ster (1965): advertising NTR (2011) (EDUCATIONAL BROADCASTERS) TELEAC/NOT RVU.and since 2010 two new applicants: WNL & Powned 25
26 As of this year: merging of associations 3 merged associations 3 stand alone associations 2 task oriented organisations: No changes until 2015 for: 26
27 Situation
28 Cable dominant distribution platform Household reception on the main TV-set (2012) Cable analogue 19.2 % digital 53.0 % Terrestrial digital 6.2 % Satellite digital 5.2 % IPTV digital 10.0 % Glass fibre (FTTH) digital 6.2 % (Source: Stichting Kijk Onderzoek: TV in Nederland 2013) 28
29 Two main cable operators: Ziggo and UPC Liberty Global (owner of UPC) holds 28.5% of Ziggo shares. In January 2014 it announced the intention to acquire all remaining shares in Ziggo. Ziggo UPC 29
30 Finances public broadcasting 2012 (1) Income (in mln. ) State broadcasting contribution 730 Ster (advertising) Expenditure (in mln. ) Dutch Cultural Media Fund 18 MCO (broadcasting orchestras & choirs) 31 Radio Netherlands Worldwide (International Service) 46 NIBG (archives) 19 Others 54 National public broadcasting
31 Finances public broadcasting 2012 (2) Division budget national public broadcasting (in mln. ): for video 505 for audio 102 for royalties, distribution, international TV broadcasts (BVN), various subsidies, joint activities, indirect costs broadcasters, board and staff of NPO
32 Some developments/challenges How to react to intensification of the competition, with producers, broadcasters, distributors/pay-tv and worldwide OTT-entrants for eyeballs and app-positions? How to keep/improve the trust of society in PSM? In times of fragmentation, individualisation and globalisation, how to play a role in national cohesion, providing space for public gathering and debate, in reflecting cultural diversity and investing in local content? How to transform traditional broadcasting associations into engaged communities? How to keep independence of PSM of political and commercial influences? How to react to changes in distribution (cable, IPTV, OTT, etc.)? How can we guarantee universal availability and findability of PSM ( due prominence )? How can PSM remain a part of the open internet ( net neutrality )? How to guarantee sufficient and stable financing for PSM (incl. optimisation of retransmission fees)? How to (better) reach the youth (incl. changing consumption patterns)? How to handle increased competition for content, content rights (sports!) and talents? 34
33 Thank you! 33
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