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Around the Learning CurveAuthor(s): Mark RobinsonSource: Fortnight, No. 262 (May, 1988), pp. 25-26Published by: Fortnight Publications Ltd.Stable URL: http://www.jstor.org/stable/25551559 .

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CULTURE

i-The 'nightmare scenario'-1 IN HIS darker moments the IBA's Tony

Fleck has a bleak vision: "There is a

nightmare scenario where public service broadcasting obligations on

television are given entirely to the

BBC. They would need need two

channels for this, so the other channel

could go commercial. There would

then be three or four commercial chan

nels, all open to auction to the highest bidder, offering lowest common

denominator programming to compete for audiences. The BBC's share could

go down to about 20 per cent." The IBA feels broadcasting is being

'destabilised' for commercial reasons:

"The Treasury sees there is money to

be made out of it. So do the entrepre neurs like Murdoch and Maxwell." This

process has accelerated as interested

parties manoeuvre in the run-up to the

July white paper. Thames and London

Weekend have been publicising their

plans for cutting jobs and costs, while

Murdoch's Sunday Times has cam

paigned against what it sees as abuses

by the unions, ACTT and Equity. But it is the government which is

making the running. The Monopolies and Mergers Commission investigation into restrictive practives in the

industry is more than a gentle hint

that self-reform may not be enough. The hardening intention to auction

television franchises in 1992 is also in

creasing pressure on ITV companies to

come up with acceptable alternatives. It is not clear how much room for

manoeuvre independent broadcasters

really have. Tony Fleck says he would

like to think he is involved in a debate, but feels once government's mind is

made up it is very difficult to change it. The IBA seems resigned to losing its

influence over independent radio. It

supported the idea of a national

commercial channel, but did not

envisage three channels on poor

frequencies cast off by the BBC. There

is also concern that demands for

"diverse and varied" programming on

each new radio channel run contrary to the advice of both industry profes sionals and advertisers and could

prove unworkable. In television, arguments about

programme quality advanced by the IBA and the ITV companies may also

fall on the deaf ears of a government committed to a free-market ideology. Some loosening of the IBA's regulatory function seems inevitable. In recent

years the authority has used its powers to block take-over bids for both

Thames and Granada, but its power lessness to maintain programme standards in the face of the industrial

dispute at TV-am indicates its need for

whole-hearted government support.

MARK ROBINSON continues his

survey by talking to the Independent Broadcasting Authority, UTV, Downtown Radio and a leading Belfast ad agency.

I THE FUTURE OF I

I BROADCASTING I

Around the

learning curve UTV is a public service broadcasting company regulated by the IBA, and

so required to "inform, educate and entertain". But as early as 1985 the

IBA warned of "a growing uncertainty about the outlook in a rapidly

changing environment". Some ITV companies are now suggesting these

obligations be removed to enable them to compete with new channels.

For UTV's managing director, Desmond Smyth, the acceptance of

regulation is linked to privileges for public service broadcasters. The

BBC's revenue is guaranteed by the licence fee, while the ITV companies

collectively have to date enjoyed a virtual monopoly of television adver

tising. If new satellite and terrestrial channels appear, funded by advertis

ing and subject only to minimum standards of taste and decency, the ITV

companies would have to have certain privileges if they were to continue

to put serious material into peak-time schedules, Mr Smyth argues. Foremost amongst these is that ITV "remains in harness with Channel

Four". C4 advertising is sold by the ITV companies and any radical

change would be "very serious" for UTV, because this revenue greatly exceeds the subscription paid by the company to the C4 budget. Separat

ing C4 from ITV would create an immediate shortfall at UTV "which

might make redundancies inevitable". The UTV boss also feels there are

positive reasons for making C4 and ITV "more complementary". The

BBC has two channels, the new satellite consortium BSB will have three,

and harmonising schedules would make the network more competitive. Desmond Smyth would also like to see ITV "less heavily regulated"

and "with less intervention on a day-to-day basis" but he believes the IBA

should still have a role, particularly in any franchise auction. There would

have to be qualitative assessment of programme plans and of the ability of the applicant to deliver. He would prefer, after this "quality stage" had

generated a shortlist, that tendering would be based on a percentage of

turnover, rather than on the upfront lump sum as has been mooted.

The government's desire to put franchises out to tender stems from a

belief that the current levy on profits does not encourage companies to

keep down costs and maximise profits. Mr Smyth argues that many

programmes which do not attract large audiences?and hence premium

advertising?would be at risk if a broadcasting company had to recoup the

large capital cost of obtaining a contract. He is also concerned that any criteria for allocating franchises should include "track record in the con

stituency the station will serve" to deter trans-national predators.

Keeping down costs is Thatcherspeak for limiting the power of the

unions. UTV declares itself "firm and resolute" in changing attitudes

amongst staff "to condition people to the more competitive environment

of the future". Technological advances will mean automation and some

re-deployment, but Mr Smyth is not planning "at this stage" any redun

dancies", provided UTV keeps C4's advertising revenue. UTV, he says, has always been "tightly manned" and he is optimistic of progress with

unions somewhat dispirited after a bitter dispute last year. Increased cost

effectiveness will mean more programme production, he promises. Like BBC Northern Ireland, UTV produces around seven and a half

hours per week of local programmes. The range might be expanded as Mr

Smyth thinks UTV's place in the television market-place of the 1990s will

be distinguished by local interest output. RTE, already operating in a

multi-channel environment, has adopted a similar strategy, increasing its

own output from 34 per cent of programming to 43 percent in recent years.

Programme makers at UTV believe the station has developed an

expertise in medicine, adult education, religion and music, reflected in

increased sales to the network. Last year saw a record 30 hours of material

valued at ? 1.1 m. There is also an "aspiration" to produce at least one major drama each year, although high costs make this dependent on commissons

from the ITV network or Channel Four.

_________f ^9^^HHi^^^^^^^^^^^^HH? '^_________________ii_P^^^________^ctj

New frontiers?from God's Frontiersmen, a UTV

drama-documentary now in post-production Such commissions may be more forthcoming under new network

arrangements designed to reduce the influence of the 'big five' companies

(Thames, LWT, Central, Granada and Yorkshire). Programmes are to be

accepted on "merit and cost", but since in the early stages commissions

will be made by a group including five members from the big five it may be difficult for them to be objective. Domination of the schedules by the

big five is seen as one reason why there is so little political documentary material from UTV on the network. There are only so many documentary

Fortnight May 25

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slots and these are currently tied up by Granada

(World in Action), LWT (Weekend World) and Yorkshire (First Tuesday).

UTV welcomes the opportunity for pro

gramme sales to new channels, but this might

depend on "the amount of competition they would provide to our service". Satellite chan

nels covering the whole of Europe are not seen

as threatening the loyalty of UTV's audiences.

But if C4 were allowed to sell its own advertis

ing Mr Smyth is not sure it would be good business practice for the ITV companies to sell

programmes to a direct competitor.

Releasing staff and studio time to concen

trate on making more programmes is one con

sideration behind UTV's acquisition of a 50 per cent stake in HETV, the Belfast commercials

and facilities house. It also, says Mr Smyth, makes sense strategically for UTV to invest in

commercials production. Diversifying the capi tal base of the company should mean increased

financial stability. UTV is also involved with British Telecom in Ulster Cablevision.

Although the franchise was won in 1983 there are no immediate plans to begin cabling as

changes in capital allowances in the 1984

budget are thought to have made the high outlay unviable. The market may be tested, however, if

an application to the Department of Trade and

Industry to establish a microwave distribution

system (MMDS) for Belfast is successful. And any third channel in the Republic would be

likely to use MMDS beyond Dublin and Cork. Dublin also has a role in meeting UTV's

commitment to independent producers?ex

pected to be about 30 hours per year of local

interest material by 1992. Mr Smyth declares

UTV "totally committed" to production within

the province and rejects criticism that it has been

more generous to Dublin producers. In Dublin

there is already a mature independent sector, which started when RTE2 came on air and

further developed through Channel 4, he says. Individual independents will have to realise they have no guaranteed right to UTV airtime.

Mr Smyth believes that for local independ ents "the learning curve" will be steep, but he

readily accepts that UTV has a responsibility towards the sector here: "If in the longer term we

can assist independents through training or

pump-priming, that will be good for us as well.

We will take risks with ideas, but they will be

well-measured risks."

Desmond Smyth?measuring risks

More of the same? DOWNTOWN RADIO (DTR) is one of 46 independent local stations (ILRs) funded primarily by advertising and regulated by the IB A. Since new transmitters came on stream in 1986 and 1987 DTR

reaches 35 per cent of the population in any week?Radio Ulster reaches only 17 per cent.

The head of programming, John Rosborough, sees a key role for the new Radio Authority, which

will replace the IBA's oversight role: a lot will depend on its interpretation of the government's wisrTto extend consumer choice". If combatants are put into the ring to do the same thing, he argues, there will be greater selection but less choice, so he wants safeguards to prevent duplication.

The government's proposals, he points out, are essentially to enable expansion, so the shape of

new channels can only be a matter of speculation. There is nothing to prevent one of the new network

channels, for example, being "a kind of C4", or located outside London. He thinks BBC Radio 1 and

Radio 4 deserve national competition and that this could be part of the government's thinking in

allocating one FM and two AM frequencies to the new networks. If the channels do develop this way DTR's view is that they will eat into the audience that already enjoys that format.

The proposed national commercial channels will not be public service broadcasters and the ILRs

will have this obligation removed. John Rosborough adopts a wait-and-see approach to any impact on DTR programming, but he also feels the BBC may have hijacked the 'public service' term. DTR

is committed to interesting its audience which, he says, mirrors the population in age and profile. The new national channels will be funded by advertising, but DTR expects its "head-on"

advertising competitors to remain regional outlets like the Belfast Telegraph and UTV. Nor does

DTR feel threatened by community radio stations funded by advertising?they are likely to com

pete in a local market with weekly papers?but it does think community radio here is problematic. Concern is based on the experiences of late 60s pirates in Belfast?what Mr Rosborough calls "audio

nasties". There is doubt whether the 'light-touch regulation' which is to be the watchword of the

Radio Authority will ensure community broadcasters do not contribute to political tensions, par

ticularly if the Radio Authority does not have a Northern Ireland structure like the IBA.

Community radio is also by definition limited?in radius, advertising revenue and resources?

making it difficult to deliver expensive services like news and speech-based programming. The

examples of France and Belgium, says the DTR man, suggest there will be many failures, with the

danger that stations will be caught up by media interests. Such stations could then be networked and

sourced from anywhere in Europe. DTR welcomes Dublin's intention to license and regulate some of the pirates in the Republic,

which can be received in areas of the north. Country-wide networks of neighbourhood and town sta

tions, operating on agreed frequencies with limited power, would remove a major "nuisance" from

DTR. Mr Rosborough is particularly incensed by the way pirates do not pay for the music they play.

Copyright payments are being looked at in the Monopolies and Mergers Commission inquiry, and applicants for new commercial channels will want to see the payments considerably reduced.

John Rosborough has no objection to payments to composers and music publishers. But, he says, the industry objects to the payments demanded by record companies?the highest in the world. It

costs DTR ?3 every time it plays a record?or over a quarter of a million pounds a year.

Spreading the

advertising butter

ALTHOUGH LONDON advertising agencies account for almost 85 per cent of the total

spent on advertising in the UK, the Northern

Ireland market is around ?50 million a year. Local agencies basically do two kinds of

business: handling the regional spending of

national advertisers and promoting the wares

of local clients. Advertisers spend between

?23 and ?24 million a year on UTV airtime,

of which about 30 per cent is bought in Belfast, most of the rest coming through UTV's London office. DTR brings in about

?3 million a year in advertising revenue.

Regional differences in Northern Ireland may afford some protection to local broadcasters'

advertising revenue?Stewarts', for ex

ample, is among UTV's biggest clients?but

the ad people feel broadcasters should not

underestimate the attractiveness of new na

tional outlets to advertisers, particularly in

reaching young people whose lifestyles are

more cosmopolitan. Advertisers would also

like to see time sold regionally on new na

tional channels, and are very much in favour

of separating Channel Four from ITV?pro vided local accessibility remains for local

advertisers.

The agencies feel that restricted outlets mean

they are forced to pay a premium for scarce

airtime. Television was at the forefront of the

explosion of consumer goods in the 60s and

70s but, they argue, many of these have been

priced off the medium. Local advertisers are

particularly under threat, while the smaller

regions are at the bottom of the list for major national advertisers whose budgets are in

creasingly going to meet the high rates

demanded by the big ITV companies. The cost of making commercials is also felt to be

excessively high, due to crewing levels, overtime and allowances established by old

union agreements. Advertisers still demand

quality but want "market forces brought to

bear". They welcome the Monopolies Com

mission investigation and argue that if re

strictive practices could be ended more

commercials would be produced. The demand for more commercial radio and

television channels is based on the belief that

the advertising market will grow to finance

additional programmes. Advertising spend

ing is linked to company profits and con

sumer expenditure and the predictions for the

next four to five years are "very optimistic". Whether a proliferation of outlets does lead to

more advertising or simply lower rates, the

ad people argue they won't be spending any less, and if some companies do lose revenue

because the rates arre forced down they will

make this up by being more cost-effective.

Maintaining programme quality is also felt to be

in the best interests of the advertising indus

try, which dismisses the suggestion that

commercialism is synonymous with banal

ity. The agencies believe that needs must be

fulfilled across the social spectrum. They want to see more "media fragmentation"

targeted at particular audiences?the 'niche'

marketing increasingly favoured by maufac

turers. If this recipe were followed they be

lieve the viewer would be better off.

26 May Fortnight

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