Levy on streaming platforms could raise about €20 million per year for sector
A levy on streaming platforms in Ireland, which could raise about €20 million per year for public service content, would be an 'obvious quick fix' for the sector, an Oireachtas committee has heard.
New proposed broadcasting legislation initially permitted
Coimisiún na Meán
to impose such a levy.
However, an amendment saw an 'added layer of protection for the Irish consumer' from Minister for Media
Patrick O' Donovan
which would ensure any levy would require ministerial approval.
Roderick Flynn of the DCU Institute of Future Media, Democracy and Society told Oireachtas media committee members that a levy of 3 per cent would equate to about €20 million per year in funding for public content and about 30 cent per month on a standard Netflix subscription.
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'This doesn't seem like an onerous increase for what is, after all, a discretionary household budgetary expenditure,' he said.
Given the competitive streaming market in Ireland, he said companies would have a 'strong incentive' to absorb the cost internally.
'Why would you not want €20 million to be thrown specifically at public service content production?' he said.
The issue was raised in the context of 'inadequate' funding proposed under the legislation which seeks to convert an existing broadcasting fund to a 'platform-neutral' media fund.
Several representatives of the sector highlighted concerns over the level of funding and the way in which it has been allocated to date, with radio stations and papers finding themselves ineligible due to the requirement for 'additionality'.
This sees a requirement for a radio station or paper being awarded funding for services, such as court reporting, not already being provided.
The allocation of 7 per cent of the net licence fee receipts to the fund, meanwhile, is 'inadequate, especially given the wider scope of eligible applicants,' said Sammi Bourke, chair of Newsbrands Ireland, the representative body for national newspapers.
The issue of funding was raised amid widespread difficulties in the sector, notably the emergence of AI and use of content by social media platforms without compensation.
Ms Bourke told TDs and senators that news publishers now face 'existential challenges due to the widespread appropriation of our journalism by major tech and AI companies'.
'Our content is being harvested without consent or compensation, undermining the commercial viability of journalism and threatening the public's access to reliable information,' she said.
Deirdre Veldon, vice chair of Newsbrands Ireland and managing director of The Irish Times Group, said the companies have 'the best of both worlds' noting that 87 per cent of the advertising revenue previously taken in by the media market is now with big tech.
'What I would prefer to see is them discharging their responsibilities in relation to offering proper compensation to publishers and broadcasters for use of their content,' she said.
Michael Kelly, chief executive of the IBI, said the advertising landscape in Ireland has undergone 'major disruption' with tech giants and social media platforms now extracting approximately €1 billion in advertising revenue from the market each year.
This is in contrast to about €165 million being taken in by RTÉ radio and the independent radio sector, he said.
Fine Gael TD Brian Brennan noted cost increases facing the sector and a loss in ad revenue, saying:
'I honestly fear for the future of the people in this room, of who you're representing, unless something strong is done. You simply have to get a higher percentage of the pot or else it is not commercially feasible to continue to do what you're doing.'
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