Politicians Demand Broadcaster Transparency

Michael Hedges June 10, 2013 Follow on Twitter

When public money is spent, the details reveal more than just costs. Public broadcasters quiver when asked to defend expenses as accounting alone says little about public service obligations, at times a bit transcendent. Value for money is, they say, a vastly simplistic concept. But politicians like to keep things simple.

Denmark’s public broadcaster DR received its marching orders from the Culture Ministry with fewer rules on program output amidst gentle reminders to pay attention to the license fee money it spends. DR and representatives of political parties negotiated the public service contract covering basic operating practices for the next two years. The Danish government raised the household license fee in October 2012 and required renegotiation of the public service contract. 

“The new public service contract gives DR greater flexibility to organize their programs,” said Culture Minister Marianne Jelved in a statement (June 7). “At the same time, the license fee obligations DR must meet are clear. For example, DR will strengthen cooperation with Danish theaters and service to the disabled.”

Under the new rules, DR will be obliged to report annually how resources for each radio and TV channel are allocated in the pursuit of public service targets. DR has been exempt from channel by channel cost and revenue disclosures, citing accounting and competitive reasons. Financial transparency became an issue in the 2012 license fee agreement. DR broadcast about 38,000 hours of television in 2012, an increase of 11% year on year.

As with many public broadcasters, DR has been under pressure to produce more, bigger and better output. Next year DR will produce the annual Eurovision Song Contest, owing to votes for singer Emmelie De Forest. It will not be big, said DR entertainment chief Jan Lagermand Lundme, quoted by oikotimes.com (May 24). “The Moscow (Russia) and Baku (Azerbaijan) editions were big shows, aiming to promote the host countries,” he offered. “We learned a lot from Malmø (Sweden) Eurovision Song Contest. We loved the way (Swedish public broadcaster) SVT organized the contest.” SVT spent a fraction of the estimated €50 million the Azeri government pumped into the event production.

Belt tightening has been an objective for DR General Director Maria Rørbye Ronn, not pleasing everybody. Independent television producers, reports journalisten.dk (June 5), are forced to seek sponsor funding to meet production costs. Sometimes that leads to that murky land of sponsor influence. An episode of the series Denmark From Coast to Coast (Danmark fra kyst til kyst) received funding from the European Commission DG Maritime Affairs and Fisheries as well as cash and “a 100 good ideas” from the Danish Fishermen’s Association.

“It's a choice you make,” said Content Power House CEO Ulrik Gutt-Nielsen, who produces the Denmark From Coast To Coast series. “If you have ambitions to create informative and entertaining (television)…that can be broadcast in prime time, then you're out to raise financing. The balance is to sell the idea as well as possible, while not doing anything illegal.”

One of the endless criticisms, from some quarters, questions public broadcasters buying blockbuster shows for primetime TV. “I have nothing against (reality show) X-Factor,” said Danish People’s Party media spokesperson Morten Marinus. “but why should DR use license money for it at the expense of cultural programs (for which) there is no money.  Of course, they have viewers but it should not be the criterion for success in itself. And it should not be something that you make at the commercial channel’s expense.”

“When all of Denmark sits together for a program like X-Factor, which the day after they can talk about it at the canteen, then this is also at the heart of public service,” explained Maria Hald, DR’s deputy director of media.

The new public service contract also outlines specific program objectives for radio channels on FM and the DAB platform, “strengthening its offerings in rhythmic music.”  A 30% quota for Danish music on music channels is required. As owner/operator of DAB multiplexes “DR is required to provide a transmission network available for commercial radio stations in such a way that ensures lower distribution costs.”

See also in ftm Knowledge

Media in Scandinavia

Big media companies in Denmark, Finland, Iceland, Norway and Sweden are riding a sea of change. The digital media revolution is nowhere more apparent than in Scandinavia. This ftm Knowledge file Media in Scandinavia looks at rapid change in the most 'wired' neighborhood. 103 pages PDF, Resources (June 2012)

Order here