Proposed levy on broadcasters from outside Ireland

Tigerandahalf

A mod recommended a new thread should be started on this.
An interesting article in the indo about a levy on uk broadcasters broadcasting into Ireland.
https://www.independent.ie/business/media/uk-broadcasters-to-face-levy-in-ireland-after-eu-rule-change-37042549.html

Netflix are also mentioned. Are they talking about a surcharge/levy to be on the user or/and the broadcaster? It doesn't seem to be targeted at freesat as their ad content is for uk audiences but targeted at sky and others whose ads are targeted towards an Irish audience. This could be important as streaming/boxes are increasingly looking towards targeted ads at certain ages/interest groups.

icdg

Depends how it’s defined. The test they are apparently looking at is “content targeting local audiences”.

How will they define that? Does it mean the channel is only subject to the levy if it actually airs programming made in Ireland? Does it mean content that might not be made in Ireland but might be of Irish interest? Might Father Ted have made Channel 4 subject to the levy, had it existed at the time for instance (and given they actively accepted advertising from ROI on their NI adverting opt out at the time, as did UTV).? What about Derry Girls? Made in the UK and set (mostly) in the UK but a cult hit here. They cross the border into ROI in one episode - does that make it Irish content?

I can see a lot of “unforeseen consequences” happening out of this:

-UK broadcasters less likely to invest in the likes of Moone Boy or even in U.K. programmes of Irish interest like Derry Girls.
-A return to the days of U.K. broadcasters, for example, ensuring Ireland doesn’t appear on weather maps, lest it be consider as “targeting” Irish audiences.
-Might it lead to U.K. pay TV broadcasters pulling channels from Irish pay TV platforms - particularly ones that don’t target Ireland just to ensue they are not subject to the levy?

If they are going ahead with this I think they will need to be clear that this levy should only apply in respect of channels actually actively selling advertising in the Irish market - so it would clearly not apply to the BBC, for instance.

FreudianSlippers

UK broadcasters are quietly eyeing moves out of London though. One can be sure Ireland is making a play for some of the broadcasters to come here; either way, the broadcasters will be moving (at least partially) to another EU Member State.

We'll see this after the white paper is published.

dublinman1990

On streaming services like Netflix, Now TV or Prime Video Ireland; How will this levy be reasonably applied to their own customers or advertising clients?

Would this mean that this levy be applied to advertisers that will be charged from Netflix, Amazon & Sky to allow it be paid to the state's coffers?

Or

Will it be charged as an increase to customers personal monthly subscription plans?

Or

Could it be that both advertisers & personal customers will be charged with this new levy in future when it comes into law?

The linear pay TV market in Ireland has really been expensive for several years. If the customers are potentially being screwed over again by this levy; they might have to pay higher subscription charges in their own monthly invoices from their TV providers such as Sky, VM, Eir & Vodafone. It is more of a disadvantage for Sky, VM & Vodafone to be charging this proposed levy here as they are already classed as foreign operators in this jurisdiction. On the other hand; Eir would have less of an impact here with this new levy because as they are an Irish company they could gain an financial advantage here as UK broadcasters will be charged this levy while being on the Eir EPG as Eir currently do not provide their own sports channels into the UK market.

jacksie66

This post has been deleted.

icdg

Well, of course, Netflix doesn’t carry advertising, so I’m kind of confused how they will classify it in such a way that they can put a levy on it that doesn’t also hit the BBC (and make no mistake if the levy hits the BBC the immediate outcome will be the removal of BBC channels from all pay TV services in Ireland). Bare in mind that the BBC makes more programmes here (at the moment, it’s ordered the Young Offenders for BBC Three, for example) than Netflix does (none and zero).

They only way they can do is to classify it as a pay TV service, but that brings other issues. And yes, pay TV services will just pass this levy on to their customers.

lertsnim

Is Netflix a broadcaster? If so then Youtube must be one too. I think neither are btw.

Elmo

It won't happen, I'd be very surprised if it does. It just shows how committed to Irish TV the BAI are.... they are not.