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RTÉ's commercial income dropped 20% last year as sales of DVDs and CDs tumbled

The State broadcaster has traditionally relied on such sales as a significant contributor to its income.

rt2 Bridget and Eamon, from the RTÉ show of the same name RTÉ RTÉ

TUMBLING SALES OF DVDs and CDs by RTE’s commercial arm last year contributed to revenues at the company declining sharply by 20%, or by €5 million to €20 million.

The sales of DVDs – such as the record-breaking series Love Hate – have generally previously been a major cash cow for RTÉ Commercial Enterprises DAC.

However, with the closure of HMV’s brick-and-mortar stores in Ireland, the company has lost a major outlet for the sale of its DVDs and CDs and the broadcaster’s directors report that sales “significantly reduced” last year.

In the company’s directors’ report, the fact that consumers are moving away from CDs and DVDs purchases is pointed out, “and this has necessitated a complete re-evaluation of the activity”.

They state: “Currently, we are reviewing our presence in the market with business activity limited to managing existing and exploring licensing deals.”

The company last year slimmed down its operations and reduced costs resulting in pre-tax profits increasing by 68.5% to €7.4m.

‘Limits international appeal’

The number of people employed at the firm last year reduced from 85 to 37 with staff costs reducing from €6.3m to €2.6m.

The directors also state that revenues from the sale of RTE programming was constrained by the content of the programmes, which serves the needs of the Irish audience but limits international appeal.

The directors state: “2016 was a steep revenue decline driven by the non-recurrence of a significant domestic sale, combined with the impact of currency depreciation.”

They state: “However, international success was achieved with the sale of 1916 programming, Bridget & Eamon, and Vogue Williams. The majority of revenues come from English-speaking markets, primarily the UK and Australia.”

The directors state that the RTÉ Guide remains a profitable entity. They state: “Good cost management and revenue enhancements have ensured that the publication remains a contributor to RTE’s bottom line.”

On the company’s future developments, the directors state that it is their intention to continue to develop the principal activities of the company and to identify areas with future growth potential.

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    Mute Bella Gunning
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    Oct 29th 2014, 5:19 PM

    Great news for people who sell ‘stuff’

    19
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    Mute R Neuville
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    Oct 29th 2014, 7:22 PM

    Obscene Lobby Driven car tax on pre-2008 cars forcing people to buy new cars. Those who cannot afford new cars subsidising the annual road tax of the wealthy who can. A most regressive tax. Was not passed in the UK. Ireland a lobby ridden disgusting place to live – no equity. Bring your Brains to the Polling Booths.

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    Mute Tequila Gold
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    Oct 29th 2014, 7:19 PM

    The one in the picture would be better off hugging a bicycle

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    Mute Bevin Reilly
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    Oct 29th 2014, 6:42 PM

    Love that stock photo.

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    Mute Business Cat
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    Oct 29th 2014, 4:27 PM

    Name the car in the picture….

    I’m thinking RR Evoque?

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    Mute wondermiss
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    Oct 29th 2014, 4:50 PM

    KIA sorento I think

    20
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    Mute Anthony Halpin
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    Oct 29th 2014, 9:01 PM

    A bit of that Mechanophilia stuff going on there by the look of it

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    Mute CW
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    Oct 29th 2014, 8:45 PM

    Well the bullshit statistics from the high street say that most under 25′s and up to 30 are buying in the high street due to increasing numbers employed in the financial and insurance industry, the high street doesn’t show the online buying by the work in poor at middle class’s that wouldn’t pay those prices. It’s a two tier system, that the government are now dependent on the young living at home for their figures. The ESRI is not reflective to the population.

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    Mute Anthony Halpin
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    Oct 29th 2014, 8:59 PM

    All we need now is a scrappage scheme for 3 year old cars, supported by the SIMI and Green party!

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    Mute Christabel Benoit
    Favourite Christabel Benoit
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    Nov 2nd 2014, 5:19 PM

    And I just bought a beautiful vintage sofa, which only comes to prove I spend a lot on what we’ve been talking in this article. If I were a keen driver, I’d probably spend a lot on my car as well. Take a look at the pros and cons of vintage furniture: http://www.hometalk.com/5463165/the-pros-and-cons-of-vintage-furniture and you will understand what I am talking about.

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