followthemedia.com - a knowledge base for media professionals
Big Business

Shareholders grapple with news network closure

Tight economics forces broadcasters to squeeze everything and everybody. What once might have been advantageous synergy quickly becomes opportunity for competition. News is a business, too.

synergyIrish broadcaster UTV moved quickly to fill a news void created by the closure of Independent Network News (INN). An email to local radio managers from UTV Radio Ireland managing director Rowan McManamy offered (October 2) a new service to “replicate many of the good aspects of the INN service but will critically remove the financial risk from subscribing stations,” reported the IrishIndependent.  Another Irish broadcaster, Communicorp, is believed to be contemplating a similar offering.

Citing “unsustainable losses,” John O’Connor, CEO of Independent Network News (INN), said (October 1) the radio news agency will close at the end of October. INN has provided Ireland’s private sector broadcasters with national and international news, scheduled newscasts and copy. INN has supported itself by selling advertising, which has suffered declines over the last two years.

“This is a particularly arduous and sad moment for our skilled and dedicated journalistic team at INN,” said O’Connor in a statement (October 1). “Their hard work and commitment has been the cornerstone of INN's achievements over the past twelve years and we thank them for their support and effort throughout.”

INN was formed in 1997 by independent commercial broadcasters as a radio news provider. Over the years it expanded into multi-media and sports content. The company employs 16.

The news agency was created to replace competing services; Network Radio News, owned by FM104, and Ireland Radio News (IRN), owned by 98FM. UTV is the largest INN shareholder (40%). Radio 2000 (Communicorp) and Radio Kerry hold 16% and 10% stakes, respectively, with other broadcasters dividing the rest. Current year losses, reported by the Irish Times (October 2), are about €1 million.  Shareholders will be forced to divide up the losses plus costs of winding down the company.

UTV Radio Ireland and Communicorp are Ireland’s biggest private sector radio broadcasters. Both have their own ad sales-houses, likely at the heart of INN’s closure. Sales-house co-operative Independent Radio Sales (IRS) has sold ads for INN, in competition with UTV Radio Solutions. Public broadcaster RTE also sells radio advertising.

INN was intended to be a self-sufficient service provider. But with ad spending in Ireland tumbling stress on the company has been significant, competition for advertising and station inventory growing. First quarter 2009 radio ad revenues were 18% lower than the same period in 2008, though print and television ad spending fell harder. Last year radio station i102-104 dropped INN’s service for news feeds from Newstalk, owned by Communicorp.

License rules for private sector radio broadcasters include substantial news and public affairs requirements. It’s possible the Irish regulator BCI (Broadcasting Commission of Ireland) might have a word or two about INN’s closure and any possible successors.

 

 


related ftm articles:

Ireland’s Colorful, Homegrown Misery - June 8, 2009
Ireland’s fall from economic grace is taking a toll. The tide may be turning but it’s a screw too tight to keep the country’s media sector from pain. Things add up and there’s no bail out in sight.

Another radio guy goes after a newspaper - June 2, 2008
Newspaper people seem absolutely panicked over the arrival of radio people in their midst. The Tribune Company in the US is now filled with radio people. NextRadioTV owner Alain Weill took over Le Tribune in France. Now it’s Denis O’Brien, owner of two Irish national channels and dozens more in Europe, going after the O’Reilly clan’s Independent News & Media.

Authorities moot Communicorp’s Irish radio expansion - December 2, 2007
Not to worry, Denis O’Brien has places to go and people to see. Last week he increased holdings in Independent News and Media, becoming its second largest shareholder, and executive recruitment firm Imprint PLC. His mobile phone company Digicel, spanning the Caribbean to the South Pacific, bought the GSM operator in Tonga. And there’s even a possible radio venture in Jordan.


advertisement

ftm Resources

ftm Knowledge

Media in Spain - Diverse and Challenged – new

Media in Spain is steeped in tradition. yet challenged by diversity. Publishers hold great influence, broadcasters competing. New media has been slow to rise and business models for all are under stress. Rich in language and culture, Spain's media is reaching into the future and finding more than expected. 123 pages, PDF. January 2018

Order here

The Campaign Is On - Elections and Media

Elections campaigns are big media events. Candidates and issues are presented, analyzed and criticized in broadcast and print. Media is now more of a participant in elections than ever. This ftm Knowledge file reports on news coverage, advertising, endorsements and their effect on democracy at work. 84 pages. PDF (September 2017)

Order here

Fake News, Hate Speech and Propaganda

The institutional threat of fake news, hate speech and propaganda is testing the mettle of those who toil in news media. Those three related evils are not new, by any means, but taken together have put the truth and those reporting it on the back foot. Words matter. This ftm Knowledge file explores that light. 48 pages, PDF (March 2017)

Order here

More ftm Knowledge files here

Become an ftm Individual or Corporate Member to order Knowledge Files at no charge. JOIN HERE!

copyright ©2004-2009 ftm partners, unless otherwise noted Contact UsSponsor ftm