TV3 GROUP ACKNOWLEDGES IAPI PROPOSALS TO ADDRESS UNFAIR TELEVISION ADVERTISING MARKET IN IRELAND

For further information:
Maureen Catterson
TV3 PRESS OFFICE
+353 1 419 3430 / 087 7800737
maureen.catterson@tv3.ie
publicity@tv3.ie

TV3 GROUP RELEASE
IMMEDIATE: Thursday 3rd May 2012


TV3 Group today acknowledges IAPI’s statement agreeing with the recent Competition Authority Decision and their request for further changes in RTE’s advertising scheme.

TV3 has demanded that RTE produce a compliant advertising sales scheme in line with best competition principles and having regard to RTE's dominant position. If RTE cannot do this that position of dominance in the market must be addressed, most likely through a reduction in minutage. This is in line with practice across Europe.

The collapse in television advertising prices of over 40% in the last four years, fuelled by anti competitive activity, has come to a point of artificially low prices and below cost selling, which is unsustainable. Such prices are now amongst the cheapest in Europe (35% below the European average) and below a level to maintain quality Irish programming for advertisers to reach Irish audiences.

This week’s forecast by the Minister for Communications that RTE will incur a deficit of €50m in 2012 suggests advertising prices could be 50% below cost on the State broadcaster.

Commenting on the IAPI statement, Pat Kiely, TV3 Group Commercial Director said:-

“As Ireland’s only commercial broadcaster we clearly require a strong advertising market, and we believe in quality Irish programming, good access for advertisers and fair prices for all. This means the massive over-correction in television ad prices of the past few years is unsustainable and needs to be addressed. If IAPI and RTE want to maintain the status quo in terms of RTE’s ad minutage, that minutage must be sold above cost and in compliance with Competition Authority principles.”

ENDS

For further information:
Maureen Catterson/ Ciara Byrne
TV3 PRESS OFFICE
+353 1 419 3430/ 329
+353 87 7800 737/ +353 87 319 9732
Maureen.catterson@tv3.ie
Ciara.byrne@tv3.ie
publicity@tv3.ie
www.tv3.ie