1. 7th Annual Conference of the EBU Information & Statistics Network Marrakech, Morocco, 15– 16 September 2005 EBU Members finance trends over the last few years Krzysztof Klimaszewski Polskie Radio S.A.

2. Outline Total income and sources of funding - PSB historical trends – Income - Breakdown of income Total expenditure Conclusions for the coming future Main source of information  Analytical tool  SIS guides/ EBU guides  Presentations from Finance Assembly

3. PSB Historical Trends - Income Percentage of evolution of income (1995-2003) Total income (based on local currency nominal value) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% YLE Finland Radio France France FTARD Germany ZDFRAI Italy TVP Poland BBC UK

4. Total income and sources of funding

6. Breakdown of income

8. Public funds and licence fee

10. ... Change in licence fee + public funding: 2002-2003 % Growth 10.3 4.5 3.6 3.3 3.0 2.6 1.9 1.5 -0.1 0.5-72.9-10.5 -5.3-3.8 -3.5 -3.1 -3.0 -2.6 37.7 -80% -60% -40% -20% 0% 20% 40% 60% RTE ETV DR RAI ORF ARD France Télévisions SVT RTVE ZDF MTV BBC VRT YLE CT NPB S4C TVP TV2 DK* Agregate average

11. PSB Income – Funding Mix 40% of EBU Members get at least 20% funding from advertising. The evolution of the funding mix has been most closely linked to ad cycles Advertising and sponsorship income BBC MTV OY RTVE TV2 DK TVP ORF RTE RAI CT RTBF VRT ER MR TRT BNR Radio Vaticana HRT FTV NPB ARD Licence fee and public funds

12. Total Income of the public radio and television organizations in South Eastern Europe for the period (1999-2004) in million Euros

13. Income rate trends of the license fee (for ROR, TVR, RTS- RTNS, RTVSLO, PBS BiH and ERT) and the public funds (for BNT, BNR and TRT), 1999-2004

14. Trends in advertising income rate (in %) for the period 1999-2004

15. Total expenditure

17. What do we finance?

19. Conclusions for the coming future  Public Broadcasters will be at a competitive disadvantage (licence fee difficult to find the socially acceptable level, new investments like new channels ex. thematics, digitalisation, new active players on the adv market – mobile operators, Internet providers and outdoor advertisers)  Public channel output is more heavily skewed to genres like education, factual, arts, news and information –genres that would be explicitly prohibited from product placement.  Commercial broadcasters are increasing in number and in financial strength  Broadcasters whose schedules are dominated by entertainment and format shows will have competitive advantage and reap most of the financial rewards.  Private broadcasters can do product placement (relaxed rules), teleshopping services, internet etc.  Commercial broadcasters promote and lobby the dual system where they would have the advertising time market to itself and PSB would only receive license fee

20. Performance indicators for PSB-s Dutch model of program quality assessment by Jo Bardoel (University of Amsterdam/University of Nijmegen) Leen d'Haenens (University of Nijmegen)

21. Performance indicators for PSB-s Broadcaster’s performance indicators Audience indicators (by different target groups) Quantitative indicators (by program categories) Qualitative indicators innovativeness variety balance, impartiality reliability satisfactionshare reach rating interactivity cost per listener/viewer cost per hour program volume (hours, quotas) source data: budget & accounts source data: audience research source data: expert evaluation source data: opinion research citation frequency budget volume cost per citizen technical quality in public interest AIMSMEANS RESULTSEFFECT

22. Performance indicators for commercial broadcasters Audience indicators (by different target groups) share reach rating source data: audience research Broadcaster’s performance indicators cost per listener/viewer cost per hour program volume (hours, quotas) source data: budget & accounts budget volume PROFIT MEANS RESULTS market volume marketing sales accounts receivable Marketing & sales indicators source data: market research