1. Introduction
1. In accordance with the decisions of the 4th European
Ministerial Conference on Mass Media Policy (Prague, 1994), public
service broadcasters shall: 1. provide through their programming
a reference point for all members of the public and a factor for
social cohesion and integration of all individuals, groups and communities;
2. provide a forum for public discussion in which as broad a spectrum
of views and opinions as possible can be expressed; 3. broadcast
impartial and independent news, information and comment; 4. develop
pluralistic, innovatory and varied programming which meets high
ethical and quality standards and not sacrifice the pursuit of quality
to market forces; 5. develop and structure programme schedules and services
of interest to a wide public, while being attentive to the needs
of minority groups; 6. reflect the different philosophical ideas
and religious beliefs in society, with the aim of strengthening
mutual understanding and tolerance and promoting community relations
in pluri-ethnic and multicultural societies; 7. contribute actively through
their programming to a greater appreciation and dissemination of
the diversity of national and European cultural heritage; 8. ensure
that programmes offered contain a significant proportion of original productions;
and 9. extend the choice available to viewers and listeners by also
offering programme services which are not normally provided by commercial
broadcasters.
2. Public service broadcasting must not be confused with state
broadcasting, which is the operation of a broadcaster by the state
or by an entity under direct state control, but without any public
scrutiny or accountability. Public service broadcasting is broadcasting
for the public at large, that is to say, a service for the public
meeting the above requirements. Therefore, private or commercial
broadcasters can also be organised as a public service broadcaster
or fulfil public service missions.
3. Technological evolution and the convergence of media and communications
markets pose new challenges to public service broadcasting. Member
states have to adapt public service broadcasting to meet those challenges.
In this context, financing of public service broadcasting is a key
element. It is the objective of this report to make policy recommendations
to member states in this respect.
4. The Sub-Committee on the Media of the Committee on Culture,
Science and Education held a hearing on this subject in Paris on
17 November 2008. This report takes account of the valuable contributions
made by the participants: Mr Alain Belais, France Télévisions, Paris;
Mr Jacques Briquemont, European Broadcasting Union, Brussels; Mr
Irfan Erenturk, Turkish Radio and Television Supreme Council, Ankara;
Mr Maxim Hauk, Association of Commercial Television in Europe, Brussels;
Ms Sophie Jones, Channel 4, London; Mr Ismo Silvo, Finnish Broadcasting
Company Yle, Helsinki; and Ms Catherine Smadja, BBC, London.
2. Public
service broadcasting standards of the Council of Europe
5. The Council of Europe has supported public service
broadcasting and defined European policies in this respect for many
years. The ministers participating in the 1st European Ministerial
Conference on Mass Media Policy (Vienna, 1986) adopted, for the
first time, in their Resolution No. 2 on public and private broadcasting
in Europe the commitments to “maintain the principle of public service
broadcasting, acknowledging that this function may be fulfilled
by publicly or privately organised entities”, as well as to “secure
the funding of public service broadcasting”.
6. In the resolution adopted on the future of public service
broadcasting, the 4th European Ministerial Conference on Mass Media
Policy undertook three fundamental commitments: 1. “to guarantee
at least one comprehensive wide-range programme service comprising
information, education, culture and entertainment which is accessible
to all members of the public, while acknowledging that public service
broadcasters must also be permitted to provide, where appropriate,
additional programme services such as thematic services”; 2. “to
define clearly … the role, missions and responsibilities of public
service broadcasters and to ensure their editorial independence
against political and economic interference”; and 3. “to guarantee
public service broadcasters secure and appropriate means necessary
for the fulfilment of their missions”.
7. The Assembly referred to public service broadcasting in its
Recommendation 1641 (2004) on public service broadcasting, by pointing to the financial,
commercial and technological challenges to be faced by public service
broadcasters, as well as in its
Resolution 1636 (2008) on indicators for media in a democracy and in its
Recommendation 1855 (2009) on the regulation of audio-visual media services.
8. The Committee of Ministers recently adopted recommendations
Rec(2007)16 on measures to promote the public service value of the
Internet, as well as Rec(2007)3 on the remit of public service media
in the information society. On 27 September 2006, the Committee
of Ministers adopted the Declaration on the Guarantee of the Independence
of Public Service Broadcasting in the Member States. A decade earlier,
the Committee of Ministers had adopted Recommendation No. R (1996)
10 on the guarantee of the independence of public service broadcasting.
3. Public service
broadcasting within the European Union
9. The Amsterdam Protocol, which was appended to the
Treaty establishing the European Union of 1997, states that “the
system of public broadcasting in the member states is directly related
to the democratic, social and cultural needs of each society and
to the need to preserve media pluralism. … The provisions of the
Treaty establishing the European Community shall be without prejudice
to the competence of member states to provide for the funding of
public service broadcasting insofar as such funding is granted to
broadcasting organisations for the fulfilment of the public service
remit as conferred, defined and organised by each member state,
and insofar as such funding does not affect trading conditions and
competition in the Community to an extent which would be contrary
to the common interest, while the realisation of the remit of that
public service shall be taken into account” (Official
Journal of the European Communities C 340/109).
10. The starting point in broadcasting is at the national level
and relates to the member states’ own national needs rather than
European ones. Public service broadcasting is a national question,
because every member state has its own cultural, political and social
heritage. The European Commission has launched a growing number
of complaints against EU member states on the grounds that they
were funding services which were considered to be outside the scope
of public service broadcasters. If, on the one hand, EU member states
are entitled to fund public service broadcasters, on the other hand
they should refrain from funding activities which fall outside the
remit of public service broadcasters.
4. Public service
broadcasting standards at international level
11. Public service broadcasting responds to social, democratic
and cultural needs. Article 6, paragraphs 2.d and
2.h of the Unesco Convention
on the Protection and Promotion of the Diversity of Cultural Expressions
of 2005 recognises that, within the framework of its cultural policies
and measures, and taking into account its own particular circumstances
and needs, each party to that convention may adopt measures aimed
at protecting and promoting the diversity of cultural expressions
within its territory, in particular measures aimed at providing
public financial assistance and enhancing diversity of the media,
including through public service broadcasting.
5. Objectives of public
service broadcasting
12. Public service broadcasting also ensures media pluralism
in times of increasing competition among electronic media and concentration
in the sector, as well as the commercialisation and homogenisation
of the programmes being offered. Public service broadcasting must
observe the principle of freedom of expression, under which public
authorities refrain from engaging in mass media and try to interfere
as little as possible in questions of programming and content.
13. Public service broadcasting is defined through general principles.
A more precise organisation of public service and the definition
of its remit are left to national authorities and the content of
broadcasting programmes is left to public service broadcasters,
which can – through self-regulation – play a role in regulating
and defining broadcasting.
14. The key principles of public service broadcasting are that
it is national in character, diverse, independent, impartial and
balanced and that it serves national interests. The member states
of the Council of Europe have the opportunity to regulate public
service broadcasting as changes in the operating environment require
and to take national needs into account in the definition of public
service broadcasting.
15. In its 1986 report, the Peacock Committee, which studied the
financing of the public service broadcaster the BBC in the United
Kingdom, set forth eight basic principles that should be observed
in public service broadcasting: geographic universality; catering
for all interests and tastes; catering for minorities; concern for national
identity and community; detachment from vested interests and government;
direct funding of at least one broadcasting system by all users;
competition in good programming rather than for numbers of viewers; and
having guidelines which liberate rather than restrict programme
makers. These principles still apply.
16. Definitions of public service broadcasting may be crystallised
into three principles that reflect the most essential character
of public service: diversity, geographic universality and impartiality.
The same concepts have been used to define public service broadcasting
in many connections, but with slightly different emphases. Such
public service broadcasting principles as freedom of speech and
democracy, as well as cultural and language diversity, feature in
the positions adopted by the Council of Europe and the European Union.
17. Public service broadcasting is regarded as presupposing a
high-quality service, which is equitably available to all at a moderate
price, which is available everywhere in the country and which is
of uniform technical quality. This requires a regular review of
whether public service broadcasters fulfil their mission. Public
service broadcasters therefore function under higher levels of public
accountability and scrutiny.
18. Obligations that are emphasised in the remit of public service
broadcasting are an obligation to cater for democratic needs, to
take care of social relationships, to offer freedom of cultural
expression and to ensure media plurality. Public service broadcasting
is of great importance for the quality of media content, social identity
and a nation’s collective experience.
19. The objectives usually set for public utility services have
been taken into account in the definition of public service broadcasting.
Although the arrangement and content of public utility services
vary from one member state to another, there are obligations that
all member states have in common, such as geographic universality
of the availability of services, continuity, moderate cost, quality
and consumer protection. In particular, the same-price principle
is essential to a public service broadcasting model that is founded
on a system of licensing fees. The public service obligation has
been definitively linked to the equality of citizens and to reducing
social differences.
20. Digitalisation of electronic media, technological convergence
and the growth of the media economy have all increased pressures
on public service broadcasting. The Council of Europe considers
it important that the prerequisites for the successful operation
of public service broadcasting, its organisation, financing and
broad definition should continue to be safeguarded.
21. A public service mission has to ensure services in favour
of national culture, cultural diversity, minority language groups
and other minorities, particularly when such services are not economically
viable.
22. Technological convergence has led to the same content being
disseminated in the digital operating environment in many sectors
and in many forms, through all distribution routes, and has also
led to it being received with the aid of several kinds of devices.
In a digital environment, public service broadcasting is also encountering
a change in content provision from a unidirectional mass communication
information service to a bi-directional dual communication and information
service. Public service broadcasting is of major importance as a
key implementer of information society policy.
23. Public service broadcasting must be active in using new technology
and must also produce and distribute programmes via new routes and
to new receiving devices. Public service broadcasting that is linked to
information society policies can be recognised as an opportunity
for using interactive television, broadband distribution, new personal
digital wireless receiving devices, high-definition receivers, digital
sound and multimedia, as well as digital pay-card management systems.
24. Public service broadcasting needs the support of its audiences
and a new kind of partnership with the public in order to be able
to preserve its status as a producer of cultural and societal expressions
in a commercial and competitive digital media market. The success
of public service broadcasting will be evaluated in the light of
the identities offered by its programmes, how they promote civic
discourse and how they are able to meet knowledge-related, social
and cultural needs. Even in an era of marketed media, the social responsibility
and cultural-moral remit of public service broadcasting have not
gone away.
25. The number of channels available via satellites and the Internet
is growing; technological convergence is producing new content,
new distribution routes and new receiving devices. Commercial media
are the locomotive of growth for the development of new media and
their new products and applications. Public service broadcasting
has responded to the challenge by adopting a market-oriented approach
and by making its programming more and more commercial in character.
Rather than being market-oriented, public service broadcasting should
renew its citizen-oriented approach and distinguish itself from
commercial media through quality. Indeed, public service broadcasting
needs a new kind of commitment to quality. Rather than mimicking commercial
competitors, public service broadcasters should increase their audiences’
interest by evolving in a more citizen-interactive direction, with
the aid of radio and television programmes that are closer to people.
6. Means of financing
public service broadcasting
26. Over time, countries have developed different traditions
for financing their national public service broadcasters. There
is no need for these historic developments to be harmonised at European
level and it would serve no purpose. Therefore, the financing of
public service broadcasting should not be regulated through a binding
legal instrument other than one at national level.
27. In addition, public service broadcasting flows from the public
interest in access for all to media and information, which can be
based on the Article 10 of the European Convention on Human Rights
(ETS. No. 5). Therefore, public service broadcasting should be dealt
with within the remit and the wider European context of the Council
of Europe.
28. The most widely used method for financing public service broadcasting
is through a licence fee. This fee is typically a flat tax charged
by the state to all residents possessing a radio or television set.
Alternatively, a progressive tax can also be charged, as is the
case in Greece and Turkey, for example, in the tax on the electricity
bills of households. There may also be direct subsidies.
29. The growing digitisation of radio and audio-visual media is
leading to a growing convergence of computer-based telecommunications
services and broadcasting. Public acceptance to pay the licence
fee is decreasing, in particular because a growing number of people
who possess a computer with loudspeakers and a screen can access
television services. This may become a challenge for public service
broadcasting.
7. Financing of commercial
broadcasting services
30. Commercial broadcasters mainly finance themselves
through advertising. This may be complemented by selling acquired
film and transmission rights to other broadcasters, and the transmission
rights of major sports events, for example, may reach enormous sums.
31. Some commercial broadcasters charge their viewers subscription
fees for the installation of a satellite or cable decoder, either
per channel or on a pay-per-view basis, that is to say, for each
film viewed.
8. Alternative means
of financing for public service broadcasters
32. Public service broadcasters may be excluded from
commercial activities under national legislation. Advertising revenue
is generally possible, but some states have decided against this
in order to avoid competing in a commercial market. Limited commercial
activities are sometimes permitted, such as the sale of books and
videos related to films shown on television, or the sale of transmission
rights. But public service broadcasters might also be able to “sell”
thematic channels, pay-per-view films or other specialised media services
on a commercial basis to viewers or users.
33. Public service broadcasters often have a high reputation for
their in-house training of journalists, cameramen and other media
professionals. One could therefore imagine that other broadcasters
send their media professionals to public service broadcasters for
training, on a commercial basis.
34. The state should not, however, compete with players in the
commercial market. Since public service broadcasters are mostly
state-owned and state-financed entities, their participation in
commercial markets may distort those markets. States have an interest
in a functioning commercial media industry. Nevertheless, because
they are profit-driven, commercial media services will not satisfy
all society’s demands for information and media. In many countries,
the commercial media markets may also be limited by media concentration
and the market dominance of a few, powerful commercial media companies.
9. Public service
missions by commercial broadcasters
35. The funding of public service broadcasting may go
beyond the financing of public service broadcasters. Some states
may also decide to let commercial broadcasters fulfil public service
missions. Such broadcasters would thus qualify for public funding
of such services.
10. Amount of money
necessary for fulfilling the public service remit
36. The amount of money necessary for fulfilling the
remit of public service broadcasting varies according to national
circumstances. National legislators are in a better position to
calculate the exact level of budget that their national public service
broadcasters should have at their disposal. At European level, we
cannot attempt to discuss concrete figures for national cases. Nevertheless,
this wide remit requires a high and secure level of funding.
37. Technological developments have an impact on the required
budgets. Public service broadcasters may need additional funds for
investing in new technologies, while at the same time, new technologies
may reduce operation costs and enlarge the access for viewers and
listeners.
11. New means of funding
public service broadcasting
38. Although public service broadcasters and commercial
broadcasters are often in direct competition, both sides might develop
synergies through co-operation. State-owned and funded public service
broadcasters might reduce the costs necessary for fulfilling their
remit by co-operating with private broadcasters, especially in those
areas which can be dealt with commercially.
39. Traditionally, public service broadcasters provide their services
through radio and television. The growing digitalisation and convergence
of media platforms compels broadcasters to take advantage of this,
by offering part of their services via the Internet, for example.
40. In addition, the fulfilment of the public service remit may
benefit from further media diversification, for instance by offering
print media, books, digitally recorded content (on DVD, CD, etc.)
and mobile information services (through mobile telephones and other
mobile receivers).
41. Public service broadcasters might also be able to reduce their
costs by co-operating with public service broadcasters in other
countries. Commercial broadcasters typically operate at a multinational
level, while public service broadcasters are, as yet, generally
confined to their national territories. Costly programmes, such
as the transmission of major sports events, are often of international
relevance and interesting for an international audience. The dubbing
of films and other productions would be less costly than parallel
productions.
42. These are just a few examples of new means of generating additional
resources or making cost savings. They may require legislative changes
at the national level.
12. Conclusion
43. National parliaments and ministers responsible for
media policy should adapt the funding of public service broadcasting
in their countries to the new audio-visual media environment, while
safeguarding the public service mission and structure of their broadcasters
and allowing them to make full use of the technological opportunities
for the benefit of the public at large.
__________
Reporting committee: Committee on Culture,
Science and Education.
Reference to committee: Doc. 11328 and Reference No. 3367 of 1 October 2007.
Draft recommendation unanimously
adopted by the committee on 10 March 2009.
Members of the committee:
Mrs Anne Brasseur, (Chairperson),
Mr Detlef Dzembritzki (1st
Vice-Chairperson), Mr Mehmet Tekelioğlu (2nd Vice-Chairperson),
Mrs Miroslava Němcová, (3rd
Vice-Chairperson) Mr Vicenç Alay Ferrer, Mrs Aneliya Atanasova, Mr Lokman Ayva, Mr Rony
Bargetze, Mr Walter Bartoš,
Mr Radu Mircea Berceanu, Mrs Deborah Bergamini, Mrs Oksana Bilozir
(alternate: Mrs Olha Herasym’yuk),
Mrs Guðfinna S. Bjarnadóttir, Mrs Rossana Boldi, Mr Ivan Brajović,
Mr Miklós Csapody, Mr Vlad Cubreacov, Mrs Lena Dąbkowska-Cichocka,
Mr Joseph Debono Grech, Mr Ferdinand Devínsky, Mr Daniel Ducarme,
Ms Åse Gunhild Woie Duesund,
Mrs Anke Eymer, Mr Gianni Farina, Mr Relu Fenechiu, Mrs Blanca Fernández-Capel Baños, Mr Axel
Fischer, Mr Gvozden Srećko Flego,
Mr Dario Franceschini, Mr José Freire
Antunes, Mrs Gisèle Gautier,
Mr Ioannis Giannellis-Theodosiadis, Mr Martin Graf, Mr Oliver Heald,
Mr Raffi Hovannisian, Mr Rafael Huseynov, Mr Fazail İbrahimli, Mr
Mogens Jensen, Mr Morgan
Johansson, Mrs Francine John-Calame (alternate: Mrs Doris Fiala), Ms Flora Kadriu, Mrs Liana
Kanelli, Mr Jan Kaźmierczak, Miss Cecilia Keaveney, Mrs
Svetlana Khorkina (alternate: Mr Igor Chernyshenko),
Mr Serhii Kivalov, Mr Anatoliy Korobeynikov,
Ms Elvira Kovács, Mr József Kozma,
Mr Jean-Pierre Kucheida, Mr Ertuğrul Kumcuoğlu, Ms Dalia Kuodytė,
Mr Markku Laukkanen, Mr René
van der Linden, Mrs Milica Marković,
Mrs Muriel Marland-Militello,
Mr Andrew McIntosh, Mrs Maria
Manuela De Melo, Mrs Assunta
Meloni, Mr Paskal Milo, Ms Christine Muttonen,
Mr Edward O’Hara, Mr Kent Olsson, Mr Andrey Pantev, Mrs Antigoni
Papadopoulos, Mrs Majda Potrata, Mrs Adoración Quesada Bravo (alternate:
Mr Gabino Puche Rodriguez-Acosta),
Mr Frédéric Reiss, Mrs Mailis Reps, Mr Paul Rowen, Mrs Anta Rugāte,
Mrs Ana Sánchez Hernández, Mr Yury Solonin, Mr Christophe Steiner,
Mrs Doris Stump, Mr Valeriy Sudarenkov,
Mr Petro Symonenko, Mr Guiorgui Targamadzé, Mr Hugo Vandenberghe,
Mr Klaas De Vries, Mr Piotr Wach,
Mr Wolfgang Wodarg.
NB: The names of the members present at the meeting are printed
in bold.
Secretariat of the committee: Mr Ary, Mr Dossow.