RTE funding decision rewards bad practice, Virgin chief says

A government funding plan for RTE is a reward for “inefficiency and all-round bad practice”, a rival commercial broadcaster has said.

Virgin Media Television will be reviewing its public service broadcasting commitments after RTE was provided with 725 million euro in funding over three years, its managing director Aine Ni Chaoindealbhain said.

The RTE funding plan announced by Media Minister Catherine Martin was agreed by Cabinet on Wednesday and will provide a mix between direct Exchequer funding and the existing TV licence fee.

However, Ms Ni Chaoindealbhain said Virgin Media Television was “extremely disappointed” the government had decided not to financially recognise and support its public service broadcasting remit.

She said: “Not only does today’s announcement disregard our 25-year record of delivering extensive public service content and the 93% of the population that we reach on an annual basis, it also further distorts the market.

“RTE will now be in a more dominant position than ever before where it will receive a guaranteed 725 million euro from the taxpayer over the next three years while continuing to benefit from the largest share of commercial revenue.

“In short, it is a reward for inefficiency and all-round bad practice.”

Ms Ni Chaoindealbhain added: “In view of the decision Virgin Media Television has no alternative but to review all options including our position with regards to our existing public service broadcasting commitments.”