TV3 takes RTÉ to High Court in row over €10m transmission fees

Apogee

Irish Examiner wrote:

TV3 is suing RTÉ for €10m in a row over transmission fees it paid to the state broadcaster over a 10-year period.


TV3 is seeking the repayment of the money it paid to broadcast on the RTÉ network between 1998 and 2008 and has taken the matter to the High Court.

TV3’s case is that the fees it was charged — understood to be in the region of €2.5m annually — were higher than the amount charged to TG4.

The matter is being examined by the communications regulator, Comreg, according to the Sunday Times.

RTÉ has said it fulfilled its contractual obligations with TV3 during the period.

A new contract was signed between the two parties in 2008.

Last night TV3 had no comment to make on the matter.

A €10m payout would not be welcome news to RTÉ’s new director general Noel Curran who has already indicated his determination to cut the costs of the national broadcaster, not least with pay cuts of up to 30% for top talent such as Pat Kenny and Marian Finucane.

Mr Curran has detailed plans to restore RTÉ to break-even status by 2012, referred to changes in work practices and indicated plans to reduce the station’s workforce by at least 70-80 positions. His target is to cut RTÉ’s expected deficit in 2011 by half to approximately €16m.

"RTÉ cannot control public policy decisions. It can, however, reshape itself through vigorous strategic change," he wrote in a newspaper article last week. "All aspects of our structures and work practices are to be reviewed and, where necessary, altered. The organisation’s divisional structure – with the television, radio and news divisions, and others, managing their affairs with a slim central service hub – will also be changed as we seek the leanest operational mode."

http://www.examiner.ie/ireland/tv3-takes-rte-to-high-court-in-row-over-10m-transmission-fees-157683.html

watty

TV3 should lose and be fined for not fullfilling THEIR licence conditions.

Cheapskates.

The fact is that they are barely viable and are using every avenue to try and reduce costs.

The owners STUPIDLY purchased via leveraged buy out. Thus making TV3 even harder to run at a profit due to debt repayments. They are almost an Eircom in miniature.

The Cush

TV3 and RTÉ Dispute Transmission Fees
15 Jun 2011 :

TV3 have issued High Court Proceedings against the RTÉ Transmission Network. The commercial Irish broadcaster is seeking to regain repayment on some of the transmission fees it paid the state broadcaster over a 10 year period.

The high court proceedings are with regards to an on-going dispute between TV3 and RTÉ relating to transmission fees paid by TV3 to the state broadcaster between 1998-2008. TV3 claims that it is owed money back from the fees it paid to RTÉ Transmission Network Limited. When the contract was first put in place upon TV3’s launch in 2008, transmission fees were unregulated. However in 2004, the ComReg took on this function. TV3 allege that the fees they were charged in their contract with RTETNL from 1998-2008 were significantly higher than the regulated prices charged to TG4. The recent legal action by TV3 is to ensure that the case does not fall outside the Irish Statue of Limitations. CEO of TV3 Dave McRedmond commented to IFTN about the action saying “this is a historic complaint relating to our last contract. We very much hope the investigation from the ComReg will resolve it.”

A representative from RTÉ also commented to IFTN saying “The 1st Contract between TV3 and RTÉ for the provision of terrestrial transmission services concluded on the due date in September 2008. With effect from September 2008 TV3 freely entered into a new contract for the continued provision of transmission services with RTÉ’s wholly owned subsidiary, RTÉNL. There are no amounts or obligations outstanding in respect of the 1st Contract and thus far both parties have honoured their obligations in relation to the 2nd Contract. RTÉ is not aware of any legal action in respect of either contract.”

The dispute will be investigated by the communications regulator, the ComReg, who became involved after a complaint by TV3 that RTÉ was engaged in anti-competitive practices in regards to network charges. In an interview with The Sunday Times last Sunday Director General Noel Curran commented on rival “concerns” about RTÉ running the state’s broadcasting transmission network, he said that RTÉ “needs to address those concerns.” Earlier this week, RTÉ Director General Noel Curran annouced a slew of cost-cutting measures

http://www.iftn.ie/finance/finance_news/?act1=record&only=1&aid=73&rid=4283983&tpl=archnews&force=1

This from the Irish Indo yesterday

TV3 boss puts RTE row behind him for launch
Thursday June 16 2011

TV3 may be suing RTE in a row over transmission fees, but chief executive David McRedmond was recently in Montrose to welcome the launch of the Saorview digital television project.

Saorview will replace the old aerial used by thousands of homes currently and for McRedmond it will give consumers a wider choice of how they want to view their TV.

"The free platform is very important and has really worked well in the UK and other countries.

"The pay platforms matter too though and people will stay with Sky and UPC because they provide a wide range."

The agreement that has got TV3 on board Saorview took time, but inevitably agreements such as these take time to hammer out.

"It was a tough agreement, but having said that the reason why there's an agreement between ourselves, RTE and TG4 is that free television is vital."

The Saorview platform was built by RTE Transmission Network Limited but it is not strictly an RTE platform, emphasises McRedmond.

"It's about promoting digital and giving people choice. They can pay for a wider range or get a small range for free," he added.

http://www.independent.ie/business/media/tv3-boss-puts-rte-row-behind-him-for-launch-2676426.html

carrolls

watty wrote: »

TV3 should lose and be fined for not fullfilling THEIR licence conditions.

Cheapskates.

The fact is that they are barely viable and are using every avenue to try and reduce costs.

The owners STUPIDLY purchased via leveraged buy out. Thus making TV3 even harder to run at a profit due to debt repayments. They are almost an Eircom in miniature.

If TV3 are being charged more than TG4, maybe they do have a case.
But having said that, TV3's presence on the digital network I feel is having a detremental effect and is a major factor in the choices we are now getting on Saorview. I think that if TV3 was not an issue, we would have at least BBC services as per the Memorandum Of Understanding and possibly UTV.
If TV3 was replaced by UTV, nobody would even blink.
They were given more bargaining power by Eamonn Ryan than was merited.

liamtech

I would say that in my opinion, TV3 should be charged the same rate as TG4, for transmission - I think that seems logical and prudent - Perhaps they do have a case -

Of course its different now because Saorview (AKA RTENL) are carrying 3e too... SO i would presume they will have to be charged extra for that -

Once again i am GENUINELY SURPRISED by the anti TV3 sentiment on boards - Why do many users dislike them - You can of course launch into the usual, "I hate there programing", "I never watch any of there stuff at all", "I wouldn't miss them if they were gone" etc etc etc

I have said this again and again, saorview needs more variety - its line-up would be useless if it consists of
RTE1,
RTE2,
RTE light,
I CANT BELIEVE ITS NOT RTE,
& TG4

TV3 are obviously a low budget for profit Station and you could obviously dish them for not having too many decent home grown material - But i like TV3 News - Vincent Brown is always good - They and 3e show decent films, which i can now enjoy in Digital - Family guy - Conan - and their election coverage was VERY good as was their coverage of the Queens Visit and Obama! Believe me, I WOULD MISS TV3 & 3e - and i reckon im not alone!

There also seems to be very PRO-RTE attitude on boards - I can understand that! Believe me I love thinking of how they spend license payer money - When i think of the 6 FIGURE SALARIES of Pat Kenny (€600k odd), Joe Duffy(€400K odd), Ryan Tubridy and Miriam O Callahan get - It gives me a warm feeling inside ..... Before i throw up!

JDxtra

So TV3 agreed a rate, paid it, and were happy with the service. Then they found out somebody else got it cheaper and are demanding a refund? That's some cheek. Sounds like they should have negotiated harder in the first place.

spokes

I hope they win and invest in some professional presenters.... too many idiotic ones at the moment.

liamtech

JDxtra wrote: »

So TV3 agreed a rate, paid it, and were happy with the service. Then they found out somebody else got it cheaper and are demanding a refund? That's some cheek. Sounds like they should have negotiated harder in the first place.

With the money involved you cant blame them - There is no logical reason for it to cost TG4 less than TV3 - IN THEORY -

IN THEORY - A reason does exist for RTE to charge more for carriage of TV3 and 3e - They are DIRECTLY competing with RTE1 & 2, and at least when it comes to the saorview line-up TV3's stations are the ONLY direct competitor I'm only expressing an opinion and postulating a theory here, so don't bite my head off!

We are all aware of the shenanigans (love that word!), involved when they tried to sell Commercial DTT in Ireland - I for one believe that it probably delayed the whole thing quite a bit -

But you could see that it may be a slight conflict of interest's that RTE are not only competing with TV3, but also provide the carriage?!?!?! I dunno but if i was TV3, id be watching them like a hawk!

The Cush

JDxtra wrote: »

So TV3 agreed a rate, paid it, and were happy with the service.

After reading TV3's comments, sounds like a sweet deal may have been done between TV3/3e and RTÉNL to get them on baord Saorview during the simulcast phase (dual analogue/DTT phase - dual transmission/distribution cost phase).

RTÉNL hasn't published an updated DTT tarriff schedule since early 2008 and maybe we won't see one until ASO.

For RTÉNL and Saorview it was probably necessary to have both TV3 and 3e available during this phase of the service.

"The agreement that has got TV3 on board Saorview took time, but inevitably agreements such as these take time to hammer out.

"It was a tough agreement, but having said that the reason why there's an agreement between ourselves, RTE and TG4 is that free television is vital."

Sam Russell

Does anyone remember the reports that TV3 were going to sue RTE over the Christmas issue of the RTE Guide because the TV3 and UTV schedule were swapped for St Stephen's Day? That came to nothing - I assume because nobody noticed the difference.

Why would TV3 think they can sue because another station was charged a different rate from them? They refused to broadcast to (and pay for ) 20% of the population, choosing to only have 12 transmitters rather than the 150 odd that RTE 1 use.

I dislike TV3 because:
1. They have few home produced programmes
2. They produce very poor quality programmes from a production value point of view, ( but to be fair the production values have improved of late). I particularly hate the jumping zoom and the swinging pan shot they excell at.
3. They go for lowest common denominator TV, both home produced (what little there is) and imported.
4. They are big on product placement, rip off competitions, and other cheap-jack approaches.
5. They have excessive adverts.
6. Their frequent threats to sue RTE.


Some of these points apply to RTE but not to the same extent. I dislike RTE's habbit of pushing programmes like The Week in Politics late into the evening/night.

Sponge Bob

Ah now Sam, you are awful hard on them

This is what their owners Doughty say (Page 12) you would think it wasn't the TV3 we see onscreen at all. First of all the transmission network is only 5% of their overall costs unlike RTE.

Launched in September 1998, TV3 is the second most viewed channel in Ireland, after the government-owned station RTE1. The channel reaches 98% of the Irish television-owning population and commanded an adult audience share of 12.8% in 2010, up 5% on 2009 due to an increase in high-quality own-produced content. Targeting the important 15 to 44-year-old demographic, TV3 differentiates itself from non-terrestrial channels through an emphasis on Irish programming, and a broad range of home-produced programming.

Ooooh Errrr **** me :eek: "Emphasis, what ???:cool:

They continue.

This level of home-produced content has increased significantly under Doughty Hanson’s ownership and complements a highly successful schedule which includes premium sport and other highly-rated content.
The majority of TV3’s revenues are derived from advertising during commercial breaks in programming, sponsorship and promotions,
as well as certain programming and interactive applications.
Ireland continues to present a very tough economic climate, with GDP down 3% in 2008, 7% in 2009 and flat in 2010. In addition, the advertising market is hyper-cyclical which led to peak-to-trough market falls of 40% over the recession. In spite of this difficult backdrop, TV3 has remained profitable and cash generative, delivering 6% revenue growth in 2010.

During 2010, TV3 has focused on three areas:
Audience growth
At acquisition, TV3 had a similar share to RTE2, its closest comparable channel. In 2010, TV3 delivered 31% greater adult audience share than RTE2. Quality of programming was responsible for this outperformance, with TV3 being given 3 IFTAs (Ireland’s most prestigious
television awards).
Home production
Rising from c. 20% at acquisition
to c. 35% of output currently, this cost-efficient activity has resulted
in a new revenue stream of programme sales abroad.
Digital media
TV3’s online and multi-channel offering are both growing rapidly
and are profitable – a rare achievement among European broadcasters.
TV3 has a responsibility to its workforce and all stakeholders in respect of sustainability and corporate responsibility and takes an inclusive approach towards such matters. In 2010, the company improved its environmental performance, with the TV3 Staff Association implementing waste recycling and energy efficiency measures. TV3 also procured a proportion of its energy from renewable sources.
[/QUOTE]

Sam Russell

@SB

I was trying to be fair. I did not mention their crap documentaries that are made up of unknown people talking to camera interspersed with cheap archive footage vaguely related to the topic. These qualify as home-produced because they look as if they were made in someone's home using poor equipment, poor post production (like none) and hastly contrived to qualify for a bit of the sound and vision fund. As I said I did not mention that as it would be unfair.

Nor did I mention the Xposed programmes where young girls, in a product placement location, discuss the most important matters concerning themselves and others like them, while RTE broadcast the New at Six on the other channel, covering world issues. But I suppose if you are a spotty 16 year-old girl nothing is as imortant to you than the latest news on what the 'Celebs' are up to, or not up to.

Well, it takes all sorts. And they do show the kids programmes on RTE 2 as well. So we see who TV3 are aiming at now.

lawhec

liamtech wrote: »

There also seems to be very PRO-RTE attitude on boards - I can understand that!

You don't visit After Hours much then I take it!

Jpmarn

To be fair TV3 anologue haven't been available from alot of smaller transmitters especially in the west. My sister who lives in North Clare can't get TV3 until she upgrades to recieve Saorview.

STB

Jpmarn wrote: »

To be fair TV3 anologue haven't been available from alot of smaller transmitters especially in the west. My sister who lives in North Clare can't get TV3 until she upgrades to recieve Saorview.

True, they have been unwilling to invest in relays outside of Cork/Limerick.

Getting on the PSB Mux will get them up to 98% terrestrial coverage compliments of Saorview, a network built by RTENL, i.e. you and me. Will TV3 want to pay what they should ? Bit of a coincidence this whinging about a commercial contract they entered into, isnt it. At least they are consistent in their whinging.

Sam Russell

STB wrote: »

At least they are consistent in their whinging.

Do you mean consistantly whinging?

Sponge Bob

Sam Russell wrote: »

Do you mean consistantly whinging?

That would be correct. This is a channel that got a national licence and refused to provide a national service from day one.

But there is some upside Sam

http://www.xposexmasxperience.ie/exhibitor-zone/reasons-to-be-at-xpose-live/

Reasons to be at Xposé Xmas Xperience


Position your product by being at this high profile highly targeted event. Xposé Xmas Xperience includes the potential for endorsements, interviews, product placements and TV coverage.

Mike 1972

JDxtra wrote: »

So TV3 agreed a rate, paid it, and were happy with the service. Then they found out somebody else got it cheaper and are demanding a refund? That's some cheek. Sounds like they should have negotiated harder in the first place.

Well said.

I paid £1.15 for a loaf of bread in Tesco on Friday. Yesterday my mate bought one for £1. Does anyone know a good lawyer..............

liamtech

Mike 1972 wrote: »

Well said.

I paid £1.15 for a loaf of bread in Tesco on Friday. Yesterday my mate bought one for £1. Does anyone know a good lawyer..............

A better analogy would be if Person A was paying 40euro a month for SKY, and person B was charged 25 for the exact same line-up.

If i was person B i know what i would do..... Thankfully i havent paid for TV since 2006!

Sam Russell

Mike 1972 wrote: »

Well said.

I paid £1.15 for a loaf of bread in Tesco on Friday. Yesterday my mate bought one for £1. Does anyone know a good lawyer..............

There are not many lawers that would work for 15c.:D

Gerry Wicklow

Sam Russell wrote: »

There are not many lawers that would work for 15c.:D

No crust there then ?:D

Sam Russell

Does anyone know if TV3 have actually issued writs or is this more posturing during negotiations? They are quit to threaten to sue, but I cannot recall a case coming to court.

The Cush

From today's Sunday Times

In 2011, TV3 took RTÉ to court claiming to have overpaid transmission fees by €10 million over a 10 year period.

TV3 claimed the fees it was charged - in the region of €2.5 million annually - were higher than the amount charged to TG4.

Communications watchdog Comreg is scheduled to making a ruling on this claim in the coming weeks.

Sam Russell

If TV3 took RTE to court, as reported, then it would be a judge making the ruling. If Comreg are deciding, then they never took it to court, they merely made a complaint to Comreg. More sloppy reporting - both the original report and this one.

TV3 were/are always 'taking people to court' or threatening to, but usually they do not do so. I remember a few years ago they were 'sueing' the RTE Guide for mixing up the schedule for St Stephens day. They had transposed TV3's and UTV's schedule, although how anyone could tell I'll never know as the same dross was on both only at different times. It never came to court, and I doubt they ever served papers.

More huff and puff.

The Cush

Just to close this thread (thanks to Elmo over in the Broadcasting forum for the information), Comreg published their decision on this yesterday - http://www.comreg.ie/publications/information_notice_-_closure_of_investigation_into_an_alleged_abuse_of_an_alleged_dominant_position_by_rt__rt_nl.583.104635.p.html

http://www.irishtimes.com/business/sectors/media-and-marketing/comreg-formally-closes-tv3-complaint-against-rté-over-network-access-charges-1.1840348
http://www.independent.ie/irish-news/news/regulator-rejects-tv3-complaint-on-rte-fees-30372843.html

Executive Summary

1 This Information Notice relates to an investigation (‘Investigation’) by the Commission for Communications Regulation (‘ComReg’) into a complaint (‘TV3 Complaint’) submitted to ComReg by TV3 Television Network Limited (‘TV3’).

2 The TV3 Complaint alleges that, contrary to section 5 of the Competition Act 2002 (as amended) and/or Article 102 of the Treaty on the Functioning of the European Union (‘TFEU’), Raidió Teilifís Éireann (‘RTÉ’) (and its wholly-owned subsidiary RTÉ Transmission Network Limited (‘RTÉNL’)) abused a dominant position in the market for the supply of wholesale analogue terrestrial television transmission and distribution (‘ATTTD’) services (the ‘ATTTD Market’).

3 The alleged abuses concern excessive and discriminatory pricing with respect to the charges levied by RTÉ/RTÉNL on TV3 during the period from 1998 to up until Analogue Switch Off (‘ASO’)

4 RTÉ/RTÉNL, in supplying wholesale ATTTD services, provides downstream television and radio broadcasters with access to its national transmission and distribution network infrastructure, thereby enabling such broadcasters to provide terrestrial Free to Air (‘FTA’) television (‘TV’) and radio services to viewers/listeners. RTÉ/RTÉNL also supplies ATTTD services to its own downstream television and radio channels. in 2012. In this Information Notice we refer to this as the ‘Period of Investigation’.

5 In investigating this matter, ComReg has been assisted by Deloitte Consulting (‘Deloitte’) who were, in summary, contracted to provide an analysis of data gathered during the Investigation and ultimately to provide their views on whether or not, from an economic perspective, the alleged abuses were likely to have occurred. Deloitte presented their views to ComReg in a report dated December 2013 (‘Deloitte Report’) and ComReg has had regard to this in reaching its conclusions on the TV3 Complaint.

6 Following its investigation, ComReg has decided to close the TV3 Complaint on the basis that there are insufficient grounds for action with respect to each of the alleged excessive and discriminatory pricing abuses.

7 Both TV3 and RTÉ/RTÉNL (the ‘Parties’) have been informed of ComReg’s decision on this matter. ComReg is also providing a copy of the Deloitte Report to the Parties, redacted as appropriate to protect each of the Parties’ commercially sensitive and/or confidential information.