More ads for TV3

Elmo

Have to say I didn't notice this being mention in the act.

But it looks like TV3 maybe able to increase its advertising time from 15% to 20% meaning 12mins per hour of ads.

TV3 may be allowed more ads

Independent commercial TV channels like TV3 will see airtime increase from 15 per cent to 20 per cent if a new ruling suggested by the Broadcasting Authority of Ireland (BAI) gets approval. Should the proposal go ahead, the amount of advertising on independent channels will increase from ten to 12 minutes an hour.

The hourly limited of ten minutes per hour has been in operation since the Broadcasting Act of 1988. But a new act sanctioned last year allows for the minutage to be increased to 12 minutes an hour.

http://www.bai.ie/about_news_art016.html

Minstrel27

Super. More quality home made programming on the horizon.

Elmo

Minstrel27 wrote: »

Super. More quality home made programming on the horizon.

Unlikely as most have pointed out here the pool of advertising will remain the same and TV3 and Setanta will be unlikely to increase their share of that pool. Rather TV3 and Setanta will reduce the price of each 30sec ad airing on their set of channels.

I also realize your sarcasm, I just thought I would explain it haha.

mike65

Just saw this, not that I ever watched TV3. Will RTE huff and puff about this or given their use of licence payers money, know when to shut up?

Elmo

mike65 wrote: »

Just saw this, not that I ever watched TV3. Will RTE huff and puff about this or given their use of licence payers money, know when to shut up?

RTÉ have always had lower advertising minutes than the independent broadcasters. In the 1990s they were capped and also told that they could not earn more than the licence fee in advertising revenue during the Ray Burke era. Their minutes are still capped but so are independents this is more about regulation.

Not that it will make a bit off difference TV3 will just increase advertising and reduce the price of a 30sec ad.

Elmo

Self-regulating

He said that most TV programmes, particularly American ones, lasted 45 to 48 minutes, so even with the lower advertising caps, stations who wanted to start the next programme on the hour still had to fill the extra time with their own information messages.

"It's self-regulating as well, because if we run excessively long ad breaks people are going to switch off; and there's no point in having extra ads if no one is watching them," he said.

TV advertising in Ireland is estimated to be worth between €280m and €300m annually, with RTE accounting for around 55pc of that and TV3 around 25pc, and remaining channels, including British stations, soaking up the remainder.

That should suit the BAI who don't regulate all that much.

Elmo

NNI aren't happy with these rule changes???

Why? Again going back to what I have learn here on boards, the NNI (National Newspapers of Ireland) won't be effected by this since the 250million will not increase or take money from the pool of money for Print media. Am I wrong in thinking that TV doesn't effect print media advertising????

http://blog.marketing.ie/?p=3361

The National Newspapers of Ireland (NNI) has expressed outrage at the draft proposal made by the Broadcasting Authority of Ireland (BAI) to increase the amount of advertising allowed on independent commercial television in Ireland.
A spokesperson for the NNI said the nature of the Irish advertising market means that any changes to the rules governing broadcast media will have an immediate knock-on effect on other media but particularly print.
At a time when all media are struggling to generate advertising revenue, the NNI is “extremely concerned” that the BAI is seeking to move to the very limit of what is permitted - not required - under the directive.
She said the BAI should take account of the importance of media plurality, and have regard for the need to maintain balance, rather than focus on the competition in the independent commercial television sector.
The NNI intends to make a formal submission on the matter to the BAI.

Elmo

mike65 wrote: »

Just saw this, not that I ever watched TV3. Will RTE huff and puff about this or given their use of licence payers money, know when to shut up?

I spoke too soon.

http://www.sbpost.ie/mediaandmarketing/rte-concerned-at-longer-ad-breaks-for-its-competitors-49966.html

A dispute is brewing between the major broadcasters and the Broadcasting Authority of Ireland (BAI) over the authority’s proposal to increase the number of minutes allocated to commercial breaks on TV3, Setanta and City Channel.

The proposed change would bring Irish-owned commercial TV stations into line with British competitors in terms of the allowed length of their commercial breaks, but would leave them with twice RTE’s advertising time. This would allowTV3 to devote 12 minutes in every hour to advertising, up from ten. RTE broadcasts six minutes of ads per hour.

‘‘RTE will study the proposals and consider a formal response," said a spokesman. ‘‘Our outline position would be that we have to be concerned about the potential for damage to TV commercial incomes generally, and to public broadcasters such as RTE specifically, at a time of existing severe pressure on our income.

‘‘While increased minutage could be welcome in buoyant times, the effect at the present time could be to drive down the price of television advertising, to the detriment of all," he said.

TV3 has welcomed the change, which it said would give it the flexibility to lengthen advertising breaks where needed.

Pat Kiely,TV3 sales and marketing director, said the broadcaster would be ‘‘very selective’’ about using the proposed new full allocation and said it was unlikely that the new maximum allocation of 20 per cent advertising in a day would ever be taken up.

TV3 has been seeking added commercial time for years, but Kiely said it was mindful that too much advertising would cause people to switch off.

But he said the 12-minute allocation would be useful toTV3 during shows such as X-Factor, which come directly from ITV. Until now,TV3 has had to pad out X-Factor ad breaks with in-house promotional messages.

‘‘If there is a return to heavy demand in TV advertising in the autumn - and the signs are this is on the cards - this will help us avail of that," he said. ‘‘We really welcome this as we feel it’s getting us to where we always should have been, since we compete with state-funded television and with British channels."

It’s understood that there are concerns in RTE that the price of TV advertising could drop by as much as 10 per cent if this change is introduced. RTE is already concerned about BAI plans to relax the ban on the use of product placement on TV.

Under the BAI proposal, the maximum amount of advertising permitted per day would increase from 15 per cent of daily broadcasting time to 20 per cent.

The change would take effect in August.

I would feel more for TG4 at the moment than either TV3 or RTÉ. As I said TV3 will most like reduce the price of their ads rather than keep the same pricing and well RTÉ do have the licence fee a large share of the audience.

TG4 with only 2.4% of an audience is competition with Irish commercial services Setanta and 3e and the UK services which get around 2% on average meaning that TG4 has to charge the same as commercial channels for advertising slots, meaning they may only be getting 50% of their total value. While 3e and Setanta are probably only get 75% of their total value.

TV3, RTÉ 1 and 2 get far larger audiences mean they really don't compete with the "smaller" channels.

In relation to X Factor TV3 could always wait a few minutes before starting the show, they seem to be able to do with BBC programming.

Mike 1972

Has there any actual justification put forward why there should me more ads on TV3

Elmo

And it is done, while nearly all other organisations including NNI and IBI denounced the BAI's consultation process. I am surprised by the fact that the BAI did not also increase Radio's advertising limits.

TV3, 3e, Setanta, City Channel and any other TV service licenced by the BAI will now be able to show 12 mins of ads. (I assume 12 mins on average and a max of 15mins).

Mike 1972 wrote: »

Has there any actual justification put forward why there should me more ads on TV3

They compete with UK service which are allowed 12 mins of ads. Oh and it will be self regulating

Minstrel27

TV3 will surely be following the ITV ad breaks during prime time anyway.

Elmo

Minstrel27 wrote: »

TV3 will surely be following the ITV ad breaks during prime time anyway.

Minstrel27 I didn't think you would fall into TV3's trap.

1. Since RTÉ Two's inception Irish TV has had a number of Simulcasts, notably Coronation Street which runs on TV3 a few mins before ITV (RTÉ do the same for EastEnders as did TV3 when they had that). In relation to EastEnders both RTÉ and TV3 can add ads to their broadcast of an ad free show, while take away ads off ITV shows.
2. TV3 can fill the additional advertising mins with TV3 promos or they can choose to show live shows a few mins after they start on ITV. TV3 did this with the ad free Over the Rainbow.
3. TV3 already had a max of 12mins which is used during Prime Time, hence TV3 in relation to ITV simucasts already had 12mins of ads. (no need for TV3 filler promos in any case).

To correct myself Independent TV stations will have a max of 12mins in a clock hour. (They have removed the average).

ITV only relates to TV3 while TV3 have ITV programmes.

Minstrel27

Elmo wrote: »

Minstrel27 I didn't think you would fall into TV3's trap.

1. Since RTÉ Two's inception Irish TV has had a number of Simulcasts, notably Coronation Street which runs on TV3 a few mins before ITV (RTÉ do the same for EastEnders as did TV3 when they had that). In relation to EastEnders both RTÉ and TV3 can add ads to their broadcast of an ad free show, while take away ads off ITV shows.
2. TV3 can fill the additional advertising mins with TV3 promos or they can choose to show live shows a few mins after they start on ITV. TV3 did this with the ad free Over the Rainbow.
3. TV3 already had a max of 12mins which is used during Prime Time, hence TV3 in relation to ITV simucasts already had 12mins of ads. (no need for TV3 filler promos in any case).

To correct myself Independent TV stations will have a max of 12mins in a clock hour. (They have removed the average).

ITV only relates to TV3 while TV3 have ITV programmes.

No trap here as I do not see myself watching anything on their channel. They can have an hour of advertising every hour for all I care

Elmo

Minstrel27 wrote: »

No trap here as I do not see myself watching anything on their channel. They can have an hour of advertising every hour for all I care

Anyway I am going to go a little off topic and read in between the lines.

TV3's owners got the money together from Equity investors and Anglo Irish Bank, paying €265million to CanWest, ITV and the 3 Irish investors. ITV had said that it would not look 100% control if riduculous amounts were to be paid (obviously ITV were happy with the 100million they got from the sale plus TV programme sales until 2013).

Now I am guessing that with the write down of Doherty Hansons investment, and its plan to invest 15million into facilities at the station the Regulator got worried that Anglo Irish may end up in control of the channel hence make TV3 nearly a semi-state body. (Not that a bank own by the government is a semi-state).

But that's just my paranoia.