RTÉ has rejected a call by the representative body for Ireland's national newspapers for the Government to rein in the broadcaster's online activities.
The National Newspapers of Ireland (NNI) recently queried the online publication by RTÉ of news content on the basis that it is gathered as part of the public service remit, and therefore funded by the licence fee.
The NNI contends that there is a lack of transparency between RTÉ’s public service remit and its commercial activity and that newspapers are unfairly prevented from charging for online content due to the fact that rte.ie can offer its online news and apps for free.
A reponse this evening by RTÉ rejected the contention that its online presence prevents newspapers from pursuing a profitable online model.
It said NNI's call was "impractical, inaccurate and regressive" and claimed it was based on "a fundamentally flawed view of online activity," of RTÉ’s dual funding model, "and of the development and control of the Internet worldwide".
RTÉ's response, which insisted RTÉ Online was "still relatively small", pointed to its 2009 annual report which disclosed it had spent €5.6m (1.4 per cent of RTÉ's total operating costs) on its online operation alone.
RTÉ insisted tonight that it "does not use" licence fee funds to fund online activity - all of which it said is operated within a separate business unit called RTÉ Publishing.
"All RTÉ Online activity, including the very substantial costs required to re-purpose programme content – audio, video and text – into online form, is funded from other RTÉ commercial activities and revenue sources", the statement read.
Tonight's statement claimed that in the last five years of online activity, RTÉ has developed "the most significant, popular and best-in-class, indigenous Irish-owned online service".
It said RTÉ.ie was developed "through a pragmatic combination of technical innovation, progressive management and careful investment within the RTÉ Publishing division".
This was done entirely using commercial sources, the statement said, and "without recourse to public subvention of any kind."
In July, NNI co-ordinating director Frank Cullen said Ireland’s newspapers faced huge difficulties in asking readers to pay for online content. He said this was the case as "RTÉ is providing free online and mobile content”.
He said the ability of newspapers to attract advertising revenue was diminished where "the state-funded competitor is able unfairly to attract advertising spend.”
RTÉ said it would respond in greater detail to the NNI submission in due course.