The Frill Is Gone

Michael Hedges February 16, 2012 Follow on Twitter

Public broadcasters are singing the blues. Running ahead of private sector competitors blinded many to extravagance, or the appearance thereof. While few were truly fat with cash the guaranteed revenue streams hid a multitude of sins, real or perceived, and those became targets of publishers, politicians and other predators. The result is a new tune of slow, dark notes that leaves the audience hanging.

Holding to tighter budgets is Spain’s national public broadcaster RTVE (Radio y Televisión Española). RTVE sports broadcasts, Champions League football in particular, will now be produced with smaller crews, reported El Mundo (February 14), with commentators remaining in Madrid studios. Those travel expenses and per diems saved by using “at most three people and not the ten to twelve as before.”

Sports broadcasts are significant for RTVE, both radio and TV, and private channels would like to get their hands on rights. Or not. “Nobody wants Olympic Games (rights),” said board member Santos Ruesga to El Pais (February 2). “They cost a lot of money, last a short time and attract small audiences.” RTVE hold rights to the London 2012 Olympic Games, for which the government is considering a €70 million direct State subsidy.

Spain’s private TV broadcasters Antena 3 and Telecinco have indicated, according to El Mundo (February 11), a distinct lack of interest in acquiring football rights. “Skyrocketing sports rights are irrational,” said a Mediaset spokesperson. The Italian media house Mediaset acquired a majority stake in Telecinco in 1997 and with the merger with channel Cuatro became Spain’s largest private television broadcaster.

Also suggested for cut-backs at RTVE are popular, and expensive, television productions. Period drama Águila Roja (Red Eagle), which reaches huge audience shares for RTV1 and costs about €1 million per episode, has been mentioned for elimination. Cutting TV dramas might save €35 million, said Deputy Prime Minister Soraya Saenz de Santamaria to La Vanguardia (February 1).

A tax on private broadcasters revenue goes to support RTVE, which is mostly financed through the State budget. In 2009 the government began a phased withdrawal of advertising from RTVE. Faced with the budget shortfall, bringing back advertising is under “study” by the RTVE board. “Three minutes per hour could generate a reasonable income stream,” said Sr. Ruesga, quoted by ABC.es (February 1). 

The RTVE board of directors took operational control last July, members rotating monthly as general director, after the resignation of Alberto Oliart amidst a conflict of interest claim. Spanish Prime Minister Mariano Rajoy and opposition Socialist Workers Party (PSOE) leader Alfredo Pérez Rubalcaba have been in talks to “address the situation” and, perhaps, select a new president.  The present RTVE board has been seated since July 2007. The Public Broadcasting Act requires replacing half the twelve members every three years, another item on PM Rajoy’s to-do-list. Nominated RTVE board members are affirmed by two-thirds vote of the Spanish Parliament.

The Spanish government cut €200 million from State support to the 2012 RTVE budget. Board members and executives lost their official cars, management staff was reduced by 10% and top TV show hosts took a 25% pay cut. That, apparently, barely moved the deficit and deep cuts in operations and programming are on the horizon.

Even more drastic moves were suggested by People’s Party (PP) Deputy Secretary General Esteban Gonzalez Pons last November. To “reduce the number of public competitors,” he said, regional public television channels could be privatized “in whole or in part.”  RTVE is the State owned umbrella organization managing and operating Televisión Española (Spanish Television - RTE) and Radio Nacional de España (Spanish National Radio – RNE), both operating several national channels. In addition there are about a dozen regional public broadcasters offering radio and television channels.

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