Stations in train |
Hugh Oram on the near frenetic activity on the broadcast licencing front |
If you think Ireland already has a lot of local radio stations once the plans of the Broadcasting Commission of Ireland (BCI) come to pass, we will soon have others. Radio is set to become more competitive, giving both audiences and advertisers an even wider choice.
Currently, the BCI remit covers one national independent station, Today FM; one regional commercial station; 25 independent local radio stations; one special interest station, in Dublin; 19 community and community interest stations and six institutional stations.
It also covers TV3. Michael O'Keeffe, chief executive, BCI, said the commission set out its three-year stall for new services last year. The plans include Newstalk becoming quasi-national in October and the eventual start-up of new Dublin rock station, Phantom.
After the success of Beat FM in the south east, other youth regional services are due for the north-west and the south-west. The BCI will roll out country and Irish services for the north-east and mid-west.
A multi-city classic gold service covering Dublin, Cork and Galway beckons. The BCI will seek interest in a quasi-religious service on AM and FM, despite the fact that advertisers do not seem too enthusiastic.
“We're also re-licensing the community stations,” O'Keeffe told Marketing. “We approved one recently for Lucan and Liffey Valley and another in Co Mayo.” The BCI is exercising caution in licensing new stations at a time when RTE is starting to prepare to roll out digital.
The annual spend on advertising and sponsorship for all commercial radio stations is now over €100 million. O'Keeffe is confident that there is room for all the new stations planned to be viable.
When the BCI is planning a station's licence, it takes into account all the demographics but does not specifically suss out the views of adland, say by way of meetings with the advertising and agency bodies.
No station licensed so far has gone out of business, although some like CKR in Carlow have lost their licence. O'Keeffe says more stations will follow Galway Bay FM and broadcast on cable.
Anyone can come along and apply for a licence to operate a TV station. Setanta Sports was the first off the blocks, followed by City Channel in Dublin and Channel 6. City Channel is planning to expand to Galway and Waterford although the launches have been delayed.
AGB Nielsen now measures 18 channels, many of which are UK-based, drawing ad revenue through opt-outs for Irish advertisers.
The plans by UGC to develop its cable services with NTL Ireland and Chorus as a single cable platform and the more distant prospects opened up by digital terrestial television should create other new openings.
Digital will help the development of more specialised and regional TV services. The DTT pilot network will be completed shortly and a soft trial is expected soon after, with content from national radio and TV stations. The two year trial will be limited to 1,000 viewers.
South Coast Television (SCTV), now going for 21 years, has a digital licence for Munster. George Kennedy has been made managing director at SCTV Digital and its digital service for the Cork city area and Carrigaline starts at the end of September.
With plans to carry up to 60 channels, SCTV Digital has changed from being a loosely-structured, community-based operation to being a full commercial operation. Another factor is the analogue sign off.
Existing services are sanguine about the new competition. Geraldine O'Leary, commercial director, RTE Television, said increased radio and TV competition was a reality. The challenge for RTE was to run faster, to keep ahead. Multimedia solutions was part of the answer.
TV3 is likely to develop digital channels, initially offering a new channel based on repeats. TG4, ten years old this Hallowe'en, is to be established as an independent statutory body, away from RTE.
Padraic O Ciardha of TG4 said the initial scepticism about TnaG in some quarters has been replaced by an affection for TG4. The challenge for channels is to show a distinctive attraction for advertisers.TG4 has this year seen a double digit increase in commercial revenues.
Eleanor Collier, marketing director, Setanta Sports, said they will lead the way in sports innovation. With multiple channels, they can provide choice for viewers and more flexibility for advertisers.
Advertisers are keen on competition and the availability of more radio and TV stations. Gary Power of Saor Communications said agencies welcomed with open minds the plethora of new broadcast platforms.
The media industry in Ireland was robust enough to weather any new arrivals. Revenue streams were expanding with digital add-ons like online webcasting and podcasting. Power commended the BCI for giving the green light to TV opt-outs and for more choice on FM.
In the UK, a commitment has been made to switching off analogue between 2008 and 2012.So far, Ireland has not made a decision, but given what has happened in the UK, this market cannot be far behind.
Hugh Oram is a freelance writer and author of The Advertising Book – the History of Irish Advertising