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 News From You
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Week ending December 17, 2016
A study conducted ahead of the Parliamentary debate about the BBC’s Royal Charter reveals the British public’s attitude towards the BBC, particularly the licence fee.
The study, by research and consulting firm Strategy Analytics, shows that 71% of people feel the BBC is important to them personally and 71% are satisfied with the services it provides. The older and more affluent people are, the more positive they’re likely to be about the BBC.
Licence fee seen as most popular way to fund BBC
Consequently, only 29% of people feel the licence fee should be scrapped and support for it rises with age and income. It’s seen as the most popular main way to fund the BBC (admittedly, by a minority 41% of respondents), ahead of advertising (28%) and a subscription fee only for those who use BBC services (15%).
The average amount people are willing to pay for it is £101.57 – 30% lower than the actual price (£145.50).
One in ten households admit to not paying the licence fee but only 17% of this group have a justifiable reason (entitled to a free one as over 75 years old). This means that 83% of this group (or 8.3% of all households, 1.6 million) are not paying for it when they should be.
Mixed support for overseas and iPlayer fees
However, 58% of the public don’t think licence fee payers should pay an additional fee to watch BBC programmes whilst abroad (the “overseas access charge”).
One of the Culture Secretary’s proposals for the Charter was closing the "iPlayer loophole", meaning people watching BBC programmes online – even if that’s the only way they watch the BBC – must have a TV licence. Opinion on this is highly split – 40% effectively agree with the loophole being closed but 47% disagree.
Fewer than half know TV Licence cost
Only 44% of respondents correctly cited which price range the cost of a TV licence falls into (£125-£149), so the proportion who know the actual figure is likely to be lower still. The public’s average estimated cost of the licence comes out at £124.29 (15% lower than the actual fee).
“Overall, the BBC has strong appeal with and satisfaction among the British public, although it struggles to identify with younger and lower income groups,” said David Mercer from Strategy Analytics’ digital consumer practice. “These are the groups who tend to be most resistant to the idea of the licence fee, so the BBC will be under pressure to increase its ratings with these audiences if it wishes to retain the licence fee in future Charter negotiations.”
Combination of TV and radio to create synergies in the areas of advertising sales and investments in digital technology. Clear commitment to local content production and plurality in France
RTL Group today announced that it plans to regroup its French radio operations into Groupe M6. With a 48.26 per cent shareholding, RTL Group is the controlling shareholder of the publicly listed French TV broadcaster Groupe M6. RTL Group’s Board of Directors and Groupe M6’s Supervisory Board unanimously approved the planned transaction on 7 December 2016 and 13 December 2016, respectively. The transaction is, among others, subject to approval by the French media authority CSA (Conseil supérieur de l'Audiovisuel). Moreover, before signing the purchase agreement, RTL Radio (France) and Groupe M6 will also engage with their employees’ representatives through information and consultation procedures.
As part of the internal re-organisation, Groupe M6 plans to acquire 100 per cent ownership of RTL Group’s market-leading French radio family (RTL, RTL 2, Fun Radio, advertising sales house IP France) for €216 million on a debt and cash-free basis. Following the transaction, Groupe M6 will combine a unique portfolio of TV channels, radio stations, digital services, content production/rights trading and diversification.
The planned re-organisation will have no effect on the journalistic identity of the RTL radio stations and Groupe M6 TV channels. At the same time, the new Groupe M6 aims to attract the best journalistic, creative and on-air talent in France.
An integrated sales house for TV, radio and digital advertising will create new growth opportunities, in particular by serving advertisers’ growing demand for cross-media advertising solutions. In addition, the combined entity will create efficiencies by sharing investments in technology and digital distribution platforms and by pooling certain central support functions.
Guillaume de Posch and Anke Schäferkordt, Co-CEOs of RTL Group, comment: “RTL Radio in France has been the iconic cornerstone of RTL Group’s success story in commercial broadcasting across Europe. This transaction aims to open a new, very promising chapter for RTL Radio as convergence and consolidation continue to shape our industry – not only in North America, but also across our European footprint. We are re-organising our French TV and radio activities into one, fully integrated company which will definitely make us more competitive in the digital media world. Groupe M6 has a great track record of building and growing strong media brands, nurturing a culture of creative freedom and innovation. The combination of RTL Radio and M6 will be a force for plurality and creativity in the French media landscape.”
In the framework of the transaction, RTL Group plans to enter into a licensing deal with Groupe M6 which allows Groupe M6 to use the “RTL” trademark, ensuring that all existing radio brands (RTL, RTL 2, Fun Radio) will continue to entertain, inform and engage French listeners.
RTL Group will closely liaise with the Luxembourgish Government on the planned transaction.
JP Morgan provided a fairness opinion to the Board of Directors of RTL Group relating to the planned transaction and the fairness of the consideration to be received by the Group.
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