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John Purcell, chair of IBI, said most of its 34 members were close to shutdown during the pandemic. Oireachtas TV/PA

Independent radio stations came ‘critically close’ to shutting down, industry chief warns

An Oireachtas committee heard that revenue from local ads is down between 20% and 30%.

ALMOST ALL MEMBERS of the Independent Broadcasters of Ireland (IBI) came “critically close” to shutting down radio stations in the wake of the pandemic, an Oireachtas committee has heard.

John Purcell, chair of IBI, said most of its 34 members were at least a week away from closing and were saved only by Government funding.

Purcell told the Oireachtas media committee that the average operating cost of local radio stations is between €1.5 million and €2 million.

The committee heard that revenue from local ads is down between 20% and 30%.

Purcell said revenue has stopped because of the current “gloomier” Covid outlook, with many radio broadcasters looking ahead to next year with “great trepidation”.

He said the Government funding allowed radio stations to perform a “vital public service role”.

He added: “Without this, the damage caused to Irish society by the online conspiracy theorists, the peddlers of mis-information and the numerous bad actors who continue to be provided with a channel for their views by the social media and online platforms, would have been far worse.

“Frankly I shudder to imagine the consequences for local areas without the work of the dedicated men and women on stations all over the country had the misinformation gone unchallenged.”

He also told the committee he wants to see a report drawn up by the Future of Media Commission published. The report was tasked with exploring public service media funding.

“It was due in July and we’ve yet to see the light of day, our concern across is that this will drift to be just another report,” he added.

“There is equally a delay in the enactment of the Online Safety and Media Regulation Bill and that is putting off the day when the damage being done by online harms can be addressed.

“It’s also creating uncertainty in our industry over regulation and licence renewal.

“So these are serious issues for us.

“We welcome suggestions of funding, but we have concern over timing and I think that action needs to be taken now because the speed of change on the ground, and broadcasting is very quick, but the speed of change in relation to the framework that we’ve been experiencing is glacial.”

Declan Gibbons, chair of the Community Radio Forum of Ireland, said the delay in enacting the Online Safety and Media Regulation Bill means there is not a level playing field.

“It provides robust structures, and it means that we can stand over what we do, and I think that’s still completely lacking in the online sector,” Mr Gibbons added.

“Something needs to be done about that.

“There’s no sign of a level playing pitch at all. And the amount of revenue that’s heading online to an unregulated space is something that has to remain a concern for all media and for diversity.”

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    Mute Cullen Cullen
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    Nov 17th 2021, 10:43 PM

    Newspapers and Radio stations will disappear with or without covid. Same as music stores and video rental stores did.

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    Mute Dave Hammond
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    Nov 17th 2021, 11:45 PM

    @Cullen Cullen: I don’t think you can compare the shift to online from xtravision video tape rentals or HMV cd sales with radio stations to be fair…completely different dynamic altogether – certainly more and more people access the stations using digital devices in addition to just FM – but people like the choice – everything from Joe Duffy Liveline – Off The Ball Sport or the very highly listened to local radio stations all over the country with people now listening on apps and streaming online – it would be a sad day if in Ireland the only media we consumed was American social media rubbish – similarly news ‘papers’ will evolve into news media accessed online and via devices so journalists will still be able to make the better quality content so we aren’t subjected to Britney Spears stories or a plethora of ‘user generated’ content from the US and social media – the business models will evolve but i wouldn’t be writing off Irish media just yet – it would be sorely missed if it were to all disappear

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    Mute Cullen Cullen
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    Nov 18th 2021, 12:04 AM

    @Dave Hammond: Adapt or die.
    If you believe Irish news media, Joe Duffy and OTB provide a quality product then they can do so using the modern delivery channels available to them and everyone else.

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    Mute Mary Nugent
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    Nov 17th 2021, 10:55 PM

    Not RTE though.

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    Mute The Bolt
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    Nov 17th 2021, 10:43 PM

    I suppose the government need all the advertising they can get.

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    Mute Eoin Roche
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    Nov 17th 2021, 10:59 PM

    Unfortunately for them, as always, the market will decide. No amount of intervention or regulation will stop the consumer doing what is easier for them to do and what they prefer to do. Local media is certainly an important community asset, but it doesn’t have to be a radio station or a local newspaper title, its far more likely to be a community owned and managed and online multimedia presence into the future.

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    Mute Geraldine Kelly
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    Nov 18th 2021, 9:37 AM

    People turning off radio, tired of broadcasters and anchors giving their own opinions and political statements. Newstalk, Kenny etc! They got well paid by the Government for the service.

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    Mute Gavin Conran
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    Nov 18th 2021, 5:17 PM

    @Geraldine Kelly: Jesus it would be fair boring radio in all fairness if the presenter wasn’t allowed to voice their own opinion on such things.

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    Mute Bugaloo
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    Nov 18th 2021, 9:30 AM

    It’s a shame on irish radio stations that they all play the same music all the time with very little appetite for independent irish bands. They’ll play their quota which will include the greatest hits of Thin Lizzy, U2 and Sinead O’Connor. They’ll play the odd new Irish band on some show in the middle of the night. The majority of their playlist consists of big label US and UK music on repeat. We are European yet we never hear Danish, Italian or Spanish music played for example. Only English and American. It’s cultural genocide and until they diversify and fully support Irish and European independent music why should they get government support.

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    Mute Theportobello
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    Nov 18th 2021, 3:05 PM

    Perhaps if there was sone music choice on Irish radio then they wouldn’t be in trouble. Clone stations playing the same 50 songs. DAB would have provided more choice as it does in the U.K. but was abandoned.

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    Mute Marjory Proops-Tinklebottom
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    Nov 18th 2021, 2:21 PM

    Please take 98FM off the air, now!!!

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