Legal Financial Legal Aspects of PSB

LE~ FINANCIAL a: ADMINISTRATIVE ASPECTS OF
PUBUC SERVICE BROADCASTING: SOME REFLECTIONS

PMENT

The Legal, Financial and Administrative Aspects of

Public Service Broadcasting: Some Reflections

Edited by Dr. Hara Prasad Padhy

Contents
Preface: Mr.Javad Mottaghi iv
The Concept and Trends
Why We Need PSB? Mr. Robert (Bob) O'Reilly 3
PSB at Crossroads Mr. F. G. Gage/onia 5
Media in change: Where we are and
what are the consequences? Mr. Rainer We/ze/ 7
The Legal Aspects
The Legal Aspects of Public Service Broadcasting:
The Singapore Perspective Mr. Vincent Kor 13
The Legal Aspects of Public Service Broadcasting Mr. W. Rumphorst 17
Institutionalizing Public Service Broadcasting:
The Philippines Perspective Mr. Reyna/do Hu/og 19
Federal Structures of Public Service Broadcasting Dr. Manfred Kops 24
The Administrative and Financial Aspects
The Financial Aspects of PSB Mr. S. Heidari 29
Singapore's Approach to PSB Funding Mr. Lim Hock Chuan 31
The Administrative and Financial Aspects of PSB:
The TVRI Experiences Mr. Chairul Zen 36
The FBCL Experiences Mr. Sireli Kini 40
The PBC Experiences Mr. Anwar Mahmood 43
The Prasar Bharati Experiences Mr. R. R. Shah 46
Future Developments
Future Technological Developments and
their implications on PSB Mr. Rainer Welze/ 53
Future Developments of PSB: Some Reflections Mr. Robert (Bob) O'Reilly 56
Requirements for Development of PSB
in the 21st Century Mr. Patrick Renault 58
Recommendations A/BD 65 Legal, Financial and Administrative Aspects of Public Service Broadcasting: Some Reflections

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Preface

The Concept of Public Service Broadcasting is not new. The desire among member countries to serve the public /people through broadcasting gave birth to the notion of Public Service Broadcasting in the Asia-Pacific region many years ago. The beginning of broadcasting in this region was with the sale intention to serve the public. Then, why such an intense debate and discussion on PSB now?

The concept of PSB assumes significant place in the present scenario of highly commercialized broadcasting and technological proliferation, especially in these days of media convergence. Certainly, there is no one form of public broadcasting, but many different versions. All of them, however, must be governed by the general principle: made for the public, paid by the public and controlled by the public. The word "public" refers to the entire population of the country or region that the public broadcaster is responsible for serving. Therefore, it is highly desirable to re-examine the concept again, and devise some strategies to reach out our people once again.

Secondly, the advent of satellite and cable TV in the region took away the spirit of societal and community values and bred the battle ground for commercialization of PSB. Instead of establishing the unique identity as a PSB, some of us are trying to become cousin of commercial broadcasters.

The situation is aggravated further by the convergence of Television and Internet and paved the way for monopolization of the content by a hand full of multinationals. Recent advent of streaming media and webcasting also made the scenario more complicated by providing alternative platforms for broadcasting.

In the above context, many questions need to be answered: We as a Public Service Broadcaster need to know where we are now. We need to reconsider our existence vis-a-vis people's participation through people's programming. We need to reexamine the nature of PSB in fostering community participation, inculcating democratic values and protecting public interests in broadcasting.

More precisely, what could be our approach to legal, financial and administrative aspects of PSB? Strategically, what are the future developments of PSB and how we are going to cope with the changes?

With these questions in mind, we went to Singapore to organize a Dialogue among professionals from Asia - Pacific, North America and Europe in June 2000. Twenty practitioners along with scholars and policy makers deliberated for three days on various aspects of PSB including legal, financial and administrative aspects.

I am happy that the end of deliberations resulted in a book. Speakers after speakers in their presentations emphasized on the greater need to redefine PSB and popularize the concept once again to take media to the people. This book presents 17 precise articles presented in the seminar starting from defining the concept,

Legal, Financial and Administrative Aspects of Public Service Broadcasting: Some Reflections

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strategies and plans to save PSB from thetrap of new commercial paradigm and the steps to evolve a new image and identity of its own.

Member countries of the AIBD have come out with tangible plans to bring PSS to intergovernmental platform to make it a legal instrument to protect the legitimate interest of the public. This approach will reflect more Asian cultures and community values on Public Service Broadcasting.

I hope this edited essays will bring more sense, realization and understanding of the concept of PSB in the present scenario. It is not just a collection of presentations rather varied approaches to the concept of PSB from 17 eminent scholars and practitioners on matters relating to PSB. If the book can bring little concern about the state-of-affairs of PSB, our objectives in the publication of the book really actualized.

On behalf of the Governing Council of the AISD, I place on record my sincerest thanks to all speakers for their valuable contributions. I wish to thank my colleague Dr. Hara Prasad Padhy, Programme Manager, AISD and the editor of the book who has done a commendable job in editing such a compact book for our future reference. Without his timely help, the book could not see the light of the day.

Mr. Javad Mottaghi Director, AIBD


The Concept & Trends


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Why we need Public Service Broadcasting?

Mr. Robert (Bob) O'Reilly,

Executive Director, Radio Canada International

Abstract: The speaker feels that Asia-Pacific Institute for Broadcasting Development (AIBD) should realize the importance of involving the policy makers in the deliberations on issues related to Public Service Broadcasting in order to achieve the requisite results of the efforts for promoting PSB. in the region. The Author raises a few questions and strongly feels that these need to be answered. Does PSB need any legislation? Why and what kind of legislation is required for PSB? Is the present approach to PSB pragmatic? Does PSB really need a model? Does the proposed model need to be heavily drawn from EBU experiences when there is a vast cultural and political difference among the countries in the Asia-Pacific region?

There is a talk of a model for the public service broadcasting and associated legal framework for the model. But what we need at this hour is to draft something for ministers through them the governments to agree to move towards public service broadcasting. We need to discuss on the reasons why and what kind of legislation and legal instrument needed under which public service broadcasting might be created. These concerns are pragmatic. Everyone would love the .shitt to public service broadcasting be happened today. But they will not. So, any kind of effort to move forward with modeling, will scare some ministers and again through them the governments so much so that the shifts will never come.

The document relates to Draft Model of Public Service Broadcasting drafted by AIBO draws heavily from EBU experience. But the Asia-Pacific region is different from what EBU faced to become public broadcaster. This region is neither unified by philosophy, Ideology or conviction. This region does not have people simultaneously pushing strenuously for freedom. This region does not have uniformity in the government or governing structures. This region does have state broadcasters as well as public broadcasters and public service broadcasters. This region has monopoly broadcasting as well as competitive broadcasting. This region also has Significant signals spillover from stations outside the region.

Eastern Europe Public Service Broadcasting founded itself with a very different situation. Although the experience is interesting, quite topical and new, it cannot be laid over in this region without significant alteration. In my humble opinion, what this region does not have at this point and hence source of some of our concerns is a solid, well thought out and presented document for reasons that call for a change to Public Service Broadcasting. The document in proposal will be creating awareness among Asians and telling them the need to change.

I support the movement to change. I support the movement towards Public Service Broadcasting appropriately financed, professionally staffed, freedom to produce all types of programming according to the mandate and without censorships and


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interference from Governing bodies. I support the transition at the earliest possible moment and I support public broadcasters of developed nations helping the process wherever they can.

References

AIBO, (2000), Draft Model of Legal, Financial and Administrative Aspects of Public Service Broadcasting, AlSO, Kuala Lumpur


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PSB at Crossroads: Deliberations at International PSB Seminar, Manila, Philippines, November 1999

Mr. Fernando G. Gagelonia,

Director IV and Head of Agency, Philippine Broadcasting Service

Abstract: The speaker describes the deliberations that transpired in the International PSB seminar in Manila and hopes to achieve most vibrant and dynamic PSB in the future

At no other time in the past has the public service broadcasting found itself at the crossroads of making important decisions as to how it can not just perform its job of delivering information in support Of development but also how these organizations adapt to globalization and how the internet, the information technology revolution is changing the world. But for us PSB practitioners in the Asia Pacific region, thanks to the commitment of the AISD, FES, UNESCO, and other partner institutions, the effort ensure the continued relevance and effectiveness of public service broadcasting is well on stream.

At the 2nd International Conference and Europe-Asia-Pacific Dialogue on Public Service Broadcasting from November 29 to December 1 1999 in Manila, close to a hundred PSB practitioners and media experts from more than 25 countries sought to examine closely the current state of public service broadcasting in the Asia-Pacific region.

They took a hard look at what lies ahead and how current state-run broadcasting organizations can reshape their structures and re-dedicate themselves to pushing the development agenda of their societies while keeping pace with sccio-cultural changes and the development of technology. The information ministers of Bangladesh, Samoa, and the Philippines participated in a vigorous exchange of ideas with the Asia-Pacific and European conference delegates on how radio, in particular, remains the dominant form of mass communication. More Significantly, the information ministers individually and collectively signified their governments' commitment to sustaining public service broadcasting activities, which provide relevant alternative programming to profit-driven commercial broadcasting operations.

Philippine President Joseph Estrada' the conference keynote speaker, contributed his own perspective about public service broadcasting, drawing from his experience as a host in a television and radio public affairs program. He noted how, as chief executive of his country, he continues to harness public service broadcasting as a tool for effeclivegovemance, through a widely broadcast weekly radio show that allows him to explain policy decisions to the Filipino people. He took the occasion to appeal to other governments in the Asia - Pacific to formally declare support to strengthen PSB in the region.


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During the exchange of the information ministers with the delegates, consensus emerged on the need to employ media, particularly public service broadcasting, into a more potent force for education and development. There is also a need to promote collaboration in the region and to insulate PSS practitioners from political pressures.

After that exchange, the meeting probed into the Idea and Concept of Public Service Broadcasting. PSS was roughly defined as broadcasting, "made for, financed by, and controlled by the public." Delegates were advised to find models that cater best to their country's needs because PSB systems in other nations may not suit their cultures. The conference also discussed the present condition of PSS, its future direction, and its reaction to the advent of new technology.

The conference participants were confident that the concept of public service broadcasting would endure. But they emphasized, however, that PSB should not remain linked to market forces and should refrain from relying on advertising. There was unanimity in the view that across the Asia-Pacific region, legislators, regulators and the policy and decision makers should see the indispensable role of public service broadcasting in society --- that PSB is as important as health, education and other, services in promoting social, cultural and economic development.

It was also agreed that PSS can and should be a tool in creating an Asia-Pacific community, a regional pool of resources that will enhance technical skills; conduct training and networking; and undertake policy and regulation formulation and advocacy. Regional organizations like the AISD were encouraged to include civil societies in PSS endeavors. PSS practitioners were also urged to harness the Internet's potential and to assert their presence in the web.

The participants of the conference probed further into the possible steps to be taken after examining the PSS status quo. To effect reforms in the media sector, the delegates recognized the need to involve politlcians in PSS initiatives and to conduct awareness and advocacy initiatives to specific interest groups like lawmakers and industries. Annual awards for PSB excellence were also suggested. It was proposed that PSS should dovetail their programs with development initiatives of their respective governments.

Towards the latter part of the meeting, there was also agreement to ask the AlSO to communicate the concerns of PSB entities that broadcasting activities should not be seen simply as manufactured goods as radio and television output are truly cultural in nature and should thus be further promoted through economic incentives.

The Manila Declaration particularly mandated the Asia Pacific Institute for Broadcasting Development (AlSO) to continue taking a lead role in this mission and particularly flesh out responsive legal, administrative and financial models for public service broadcasting organizations.


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Media in change:

Where we are andwhat are the consequences

Mr. Rainer Welzel

Project Manager, FES, Kuala Lumpur, Malaysia

Abstract: The PSB is indispensable for functioning of a meaningful participatory democracy. Given the background of strong social-democratic movements and the considerable popularity of public service broadcasting, these systems have not been questioned over a long period of time. However, this strength was based on a fragile balance between politics, economy and development of technology. But the balance is being disturbed in the present days by hyper commercialization. Some positive and negative changes are visible in the broadcasting scenario due to the direct fall out of the globalization. In this context, the speaker raised the following pertinent questions.

Will the general regional and global media development permit media to continue. to play their own decisive role as stimulant of democratic political culture? How far can journalism fulfill its fundamentally important role for democracy in the future? Will WTO and GA TS agreement permit an independent development of the media in the Asia-Pacific? Will the media in Asia be able to defend the rights of their own programmes and events in future?

Introduction

Public Service Broadcasting (PSB) was, up to now, a vital institution in the majority of the developed nations and political democracies. Scientists, such as Wright Mills or JOrgen Habermas, reqarded PSB as indispensable for the functioning of meaningful participatory democracy. Given the background of strong social-democratic movements and the considerable popularity of public service broadcasting, these systems have not been questioned over alonq period of time. However, this strength was based on a fragile balance between politics, economy and development of technology. This balance has been substantially disturbed since the beginning of the nineties, mainly by the development of new technologies, which initiated the convergence from analog to digital production and distribution methods, which then provided an enormous number of additional channels. Neo-liberal forces used this development to vigorously construct a global media market. This market initially concentrated on television only, but with convergence, also on radio, print-media and the Internet.

Media Monopoly: What way?

In the first edition of his 1983 book The Media Monopoly, Ben Bagdikian describes an alarming development. Between 1960 and 1980, the concentration of dominant media firms in North America and Europe led to a shrinking process from about 700 to just 80. The 1997 edition of The Media Monopoly shows a further concentration from 80 to just 10 media giants. This process is continuing, as the recent takeover of


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Time Warner by AOL in January 2000 indicates. In the extremely competitive television markets of Europe and North America, the growth rates have shrunk to just 2% and 0.5%, respectively. In Europe, the market for the private stations could experience another boost if it would be possible to marginalize the public service broadcasters, to reduce them to the North American level. The private media industry argues that the PSBs follow aims, which are alien to profitability. In addition they are subsidized and thus should by no means compete with the private broadcasters. In Europe, the private broadcasters are lobbying in Brussels at the European Commission against the public service broadcasters and have scored a first success. tn1999, the European Commission branded, amongst others, the German ARDand ZDF public broadcasters with an annual budget each of approximately US $3 billion, as "monopolists". Paradoxically, it did not intervene when Bertelsmann took up with AOL and Time Warner to build up a global media giant with a projected turnover of more than US $ 400 billion. In the meantime, the "big boys"learned to generate profit even when catering for small target groups. This was achieved by the use of economic digital TV channels and with the restructuring of distribution channels to multimedia networks. This strategy brings about the multiple usages of programmes. According to the American stakeholder model, profit maximization for the invested capital has to be reached. Consequently, AOL announced in January 2000, that it would restructure the video cable networks of Time Warner to multimedia Internet services in order to achieve a merger of "publishing, entertainment, infotainment, telecommunication and computers". Bertelsmann has also pushed such a fusion forward since 1995 and it makes business sense that the two media giants are trying to cooperate closely.

The Asian Trend

This global trend also shows distinct parallels in Asia. Amongst others, TVNZ, the previous public service broadcaster of New Zealand, has been fully privatized and has more or less been taken over by the American media industry. Subsequently, TVNZ cancelled its membership of the Asia-Pacific Broadcasting Union. Another example is the Asian Business Channel with its headquarters in Singapore. It has heavy American ln-vestrnent, and is hardly "Asian" anymore. Not to mention Rupert Murdoch's 67 STAR-TV (Satellite Television Asia Region) and its partner ZeeTV. Zee TV is servicing the Indian subcontinent successfully in the local languages and has grabbed approximately 50% of the local market from Doordarshan, The deregulation and privatization now speeding up in Asia seem to favour such developments. On the other hand, there are other positive developments. Doordarshan, the PSB in India, has been released from being a government broadcaster to the status of a true public service broadcaster from September 1998. It was a bold decision by the Indian Parliament but there were also financial considerations in the background. Doordarshan is no longer fully subsidized; it has to earn a fair share of its budget. That is why it has been particularly hit by the competition from Zee TV. Government funding is still available when it comes to really big investments, such as Domsat, the domestic Indian satellite. This seems to be the policy in a number of other Asian countries, e.q. Malaysia with MEASAT and Indonesia with PALAPA. Another positive development seems to be on the way in


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Indonesia, where there are initiatives to convert TVRI into a public service broadcaster. AIBD and FES have been requested to assist TVRI in this process. But there is also an accelerated trend to reduce public service broadcasting in favour of the establishment of private content providers and service providers. In Asia, many examples can be found. Some of these companies are listed below:

• Satelindo in Indonesia, which operates the Palapa satellites

• Astro with its home base in Malaysia, which is the operator of the first digital directto-home satellite

• Warf Cable in Hong Kong, the owner of the first video-an-demand networks in Asia. Warf Cable is already an example of a content and service provider under one roof

• Leo Kirch, one of the big European content providers, has been active in Asia for some time. The last Asian Games in Bangkok has been fully marketed by him. The official Thai broadcaster was just granted the terrestrial transmission rights in Thailand.

Some Disturbing Questions

In view of the speedy development of technology, the proliferation of service and content providers, and the subsequent hyper commercialization of media and communication, some questions arise:

• Will the general regional and global media development permit the media to continue to play their decisive role as stimulant of democratic political culture?

• Can journalism in future fulfill its fundamental role as a pillar for democracy?

• Will the WTO and GATS agreements permit the independent development of the media in Asia?

• Will the media in Asia be able to defend the rights to their own programmes and events in future?

The influence media and communication development will have on socio-economic development has been stressed in Japan's 15-year economic forecast. According to this analysis. the portion of the national gross product that will be generated in these areas will grow above 70%. There is an indication that the development Will move in the same direction in Europe. Frequencies for broadband wireless communication are being auctioned to private industry by the German government.

The Way Out

In order to answer these questions in the affirmative, it is important to assist the current government broadcasters in transforming into true Public Service Broadcasters. In Asia, we still have to create awareness at a political level and with opinion leaders. Media and communication development, as well as the economic implications of media and communication, cannot remain a national matter only. These issues are also regional issues that require intensive dialogue. Media laws and deregulation playa decisive role in this process. The media organizations in Asia

Legal, Financial and Administrative Aspects of Public. Service Broadcasting: Some Reflections

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have to enforce their rights on an international level and have to embed them in agreements and contracts with GATS and WIPO. The education and training of journalists has to be improved and journalist organizations have to be strengthened to enable them to cope with the convergence of media and communication and actively participate in related media, such as web publishing, web broadcasting and cyber journalism. The Internet will play an important role in the near future, particularly since we can expect larger numbers of the poorer urban and rural population to have access to it, e.g. via the so-called Powerline Communication. Governments, opinion leaders and broadcasters have two competent partners with which to look for solutions - the Asia-Pacific Broadcasting Union (ABU) and the AsiaPacific Institute for Broadcasting Development (AIBD). The AIBD in particular has the mandate to be a platform for all media issues for the ESCAP states. All parties concerned should step up and increase their engagement in media and communication development. This is especially important since, in the next three to five years, the future course will be set globally and in Asia. Finally, I would like to quote McChesney: "In the end the goal should be not merely to have a series of national media systems with dominant public service components but to have a global public sphere as well, where people can communicate with each other without having the communication filtered and censored by corporate and commercial interests."

References

McChesney, (1995), Telecommunications, Mass Media and Democracy, Oxford University Press

McChesney, (1999) Rich Media, Poor Democracy: Communication Politics in Dubious Times, University of Illinois Press, Urbana and Chicago

Michael Kunczik (1997), Media Giants: Ownership Concentration and Globalisation : Friedrich-Ebert-Stiftung, Bonn


The Legal Aspects


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The Legal Aspects of Public Service Broadcasting:

The Singapore Perspective

Mr. Vicent Kor

Legal Officer, Singapore Broadcasting AuthOrity

Abstract: The speaker outlines the necessary provisions and conditions of a Model PSB Agreement. Citing examples from Singapore experience, Mr. Kor underlines the implications of important clauses in a model of PSB Agreement and cautions on different traps one encounters in drafting a PSB agreement.

Introduction

The presentation tries to provide an inSight into the Legal aspects of public service broadcasting in Singapore in general and how SBA structures PSB funding agreement with radio and television broadcasters in particular.

Brief Outline of PSB Framework in Singapore

Singapore Broadcasting Authority was established in October 1994 to regulate and promote broadcast industries in Singapore. Parliament has given SBA a few statutory functions and duties. The two key functions SBA provides in the Section 6(1) of the Singapore Broadcasting Authority Act ("SBA Act") stipulates

• To examine licensing and regulatory functions in respect of broadcasting services and apparatus

• To regulate the broadcast by providing license of public service broadcasting obligations

Any person operating or wishing to operate a broadcasting service requires a licensel broadcast service license from SSA and any person wishes to acquire a radio or TV set requires the broadcasting apparatus license.

Unfortunately, "SSA Act" does not define the phrase the Public Service Broadcasting. SSA adopts a flexible administrative approach in defining what the PSB programmes are. In general, PSS programmes are what SSA regards as socially desirable for Singaporeans. The legal obligations of Radio and TV broadcasters providing PSB programming is in the section 30(1) of the SSA act which, defines: (Public service programme required to be broadcast by a broadcaster) pursuant to a condition attached to broadcasting license, shall be broadcast without charge to the Authority or with such subsidy from the authority. This obligation to broadcast PSS programmes are placed on the broadcasters by means of the license conditions as stipulated in the SSA act.

, Legal, Financial and Administrative Aspects ofPublic Service Broadcasting: Some Reflections

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License Condition

The licenses shall satisfy the Mandatory Public Service Broadcasting (UMPSB") requirements as specified in the SBA act. The license shall also carry such additional Public Service Broadcasting ("APSB") programmes as listed in the SBA act at such times as agreed to by the authority. All programmes intended to satisfy the MPSB requirements should be provided by the License at its own cost.

Singapore broadly categorize PSB into two camps: MPSB and APSB. The funding for APSB programmes are derived from public viewers and listeners in terms of Radio and T elevisionlicense fee collected

Structure of PSB Funding Agreement: Key model provisions

The commencement

The commencement includes the date of agreement (last date of the last party signs) full name and complete address of the parties and places of incorporation

Recital

The commencement mayor may not follow by Recital! preambles. These are paragraphs introduced by the word "where as" which describes the previous transaction and events leading to the agreement. So, they should be very' clear and concise statement of facts. They speak the purposes of which the agreement is entered into so.

Definitions

For all simple agreement the first clause will be the general definitions clause. These sets of definitions are various terms used in the agreement

Representations and Warranties

It is useful to include representation and promises made by the broadcasters because of the negotiations for PSB funding .By incorporating these free contractual statements made by the broadcaster (written statements or orally) become legally binding on the broadcaster.

Condition Precedent Clause

It is a clause that circulates some of the agreement provisions comes into force only if and when certain specified conditions are met. These conditions are critical to protect a party against coming down to substantive provisions of the agreement.


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Confidential ity

Confidentiality clause is common to most sensitive commercial agreement and certainly to PSB funding agreement. Because statutory information are commercially valuable and its confidentiality needs to be protected.

Option to Renew

A typical term for funding agreement should be about 2-3 years. It should have option to renew the agreement on revised terms, which is valuable since the cost of PSB" programmes, and the amount of PSB funds may fluctuate from year to year.

Termination

The termination clause specifies the methods on how one party may terminate the agreement or how an agreement will have a natural death. This may be in the form of a notice giving one/two months for termination to the other party. It is always advisable to include some basic termination rights in the agreement.

Assignment

The agreement should not be easily assignable by the broadcaster so as to enable to buy assignment and release itself from the obligations of PSB by passing on to third party. The authority should have the right if there is any change in the government policies.

Force Majuere

This concept is drawn from Civil court of law .It is common for any agreement to provide that no party shall be liable for failing to perform its obligations. If failure of such obligations arises out of an external event beyond reasonable control, the clause of this type Force Majuere is useful and the obligation will be suspended.

Notice

Service of notice is a crucial part in any agreement. Any notice clause has provide the places at which notices to be served, method of service and when the service of notice to be delivered. Any notice of any agreement shall be in writing delivered personally or by letter or fax.

Dispute Resolution

This clause provides for private dispute resolution to avoid what can be lengthy and acrimonious court proceedings. The party themselves are likely to be in better

Legal, Financial and Administrative Aspects of Pnblic Service Broadcasting: Some Reflections

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position since they have the requisite knowledge, expertise of settling dispute privately.

Schedules

To ensure the smooth flow of the substantiate part of the agreement should be distracted or obscured, the schedule provisions are necessary. The schedule should indicate hours of PSB programming per week with a clear description of genres of PSB programmes. Amount of PSB funds allocated per hour for each programme genre and other administrative and operational procedures should be clearly

. specified in the schedule.

Conclusions

Drafting a PSB agreement should be done in such a way that it should be easy to understand and the language must be consistent and precise.

Funding of PSB programmes should ensure the diversity of programming because PSB programmes fulfill important social, cultural, and national objectives. Therefore, the programming should be balanced mixture of movies, sitcom, news and infoeducational programmes


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The Legal Aspects of Public Service Broadcasting

Mr. Werner Rumphorst",

Director, Legal Department, European Broadcasting Union

Abstract: The speaker argues that any model for the PSB should have the provisions, which are relevant to public, protect the individual rights, and avoid factually incorrect provisions and misleading statements. The viewers should have rights to reply. Above all, the model should link Internal structures to own culture and have strict control of public over finance and management

Introduction

A prerequisite for healthy public service broadcasting is a solid legal foundation. Without it, public service broadcasting will either fail in its mission, by providing unsatisfactory programming or will waste public money owing to poor management, or both. It is therefore indispensable for public service broadcasting legislation to be based on three pillars: A clear programming remit, independent modern management structures together with efficient public control mechanisms

The Programme Remit

The standard phrase "Varied and balanced programming for all sections of population" is a good description, in a nutshell, of what public service broadcasting is all about;

"Varied" implies that all programmes are dully represented. These programmes may include Information, education, entertainment, sport, culture, children programme etc.;

"Balanced" requires a fair equilibrium between different programme genres and, as regards factual (information) programmes, an unbiased, comprehensive and correct description of facts, as well as neutral presentation of differing opinions;

"All sections of population means that, ideally,. the entire population, every household in the service area of a public broadcaster, should be in position to receive the programming and also refers to all groups and sections of society, taken individually as well as together: rich and poor, old and young (and not just those age groups which are interest to advertisers), educated and less well educated, and people with special interests (such as culture, religion, science, sport, the economy, the society, the environment etc.)


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Independence

Given that public service broadcasting is conceived for, financed and controlled by the general public, by civil society, by the population at large, it must by definition- be independent from any outside (especially political influence), such as government, parliament, president, monarch, political parties, economic enterprises, churches or other groups. This independence includes independent financing, since "he who pays the piper. ... " is particularly true in the field of broadcasting.

Management and Control

Management needs to be structured in a way which resembles as closely as possible the management structures of any large service industry company, and in particular, of a commercial broadcasting company. Otherwise, day-to-day competition and medium and long -term strategies decisions will be more or less crucial disadvantage;

Control by public is indispensable for the public service broadcasting. In fact, since a substantial portion of the public broadcaster's revenue comes from - obligatoryfinancial contributions by viewers and listeners, and/or -via the government - from the public's tax contributions, it is self-evident that the public has a legitimate interest in verifying that its money is being weI! spent. It is therefore necessary to establish under the law efficient control mechanisms, separately for programming and for administrative and finance.

* For a detail discussion of a model public service broadcasting law please refer

Dr. Rumphorst (1998), Working Document on Model Public Service Broadcasting Law with Introductory Note and Explanatory Comments, ITU/BDT and UNESCO


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Institutionalizing Public Service Broadcasting:

The Philippines Perspective

Mr. Reynaldo Hulog,

Executive Director, Association of Broadcasters of the Philippines (KBP)

Abstract: Firstly, Public service broadcasting should be made mandatory for all . broadcasters. The more the viewership, the more the responsibilities of PSB may be entrusted with the broadcasting organizations. Secondly, given the regional

disparities in cultural and political situation, the legal aspects of PSB should take care of the complexities of each situation. Thirdly, there should be concerted efforts for improvement of quality of broadcasting. The legal framework of PSB should incorporate this "quality concept". Last of all, Public Service Broadcasting should be 100% public service broadcasting

Introduction

In this presentation, I will cover the following topics: developments in the Philippines that are significant to public service broadcasting, some approaches to public service broadcasting that are suggested by these developments; and, third, a proposed structure for institutionalizing public service broadcasting.

Who's Responsibility?

I will take off from the remarks made by Hugh Leonard, Secretary-General of the ABU when he made the distinction between public broadcasting and public service broadcasting, which appears, in one of the handouts in the conference. He says that public broadcasting is broadcasting owned by the state -- as opposed to broadcasting that is privately owned. Public service broadcasting, on the other hand, is broadcasting in the interest of the people. Mr. Leonard further gives this reminder:

"Public service broadcasting is the responsibility of all broadcasting services, regardless of whether they are publicly or privately owned."

We have to admit that in some way broadcast media in the Philippines have fallen short of what it is expected by the public to do- that is, to serve the interests of the people as a citizen rather than just as markets. The highest rating programmes on private television are Mexican tele-novellas. The government television stations, which one would expect to take the lead in more socially responsible programming, is showing game coverage and sold part of its airtime in telemarketing.

The idea that public service broadcasting is the responsibility of both the governmentowned stations and the privately owned stations is now again getting a prominent attention in the Philippines. This is due to the following: Programming, especially on television, has become "over-commercialized" and has led to questions about the real mission of broadcasting. Private broadcasters themselves, largely because of criticisms from the public, are looking within themselves and admitting some failure in


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giving the audience the kind of programming that it needs. The conflict in Mindanao, which has recently erupted into a shooting war, also brought out the issue of how media should treat the diverse cultural groups in the country.

Also significant is the continued growth in the number of commercial stations in the country even as advertising budgets are shrinking because of the situation of the economy and the increasing competition from other advertising medium. While toprating commercial stations continue to be profitable, those in the lower rung of the ratings ladder are getting squeezed. This has brought on pressure upon them to develop new segments in the market. This could be a welcome development as some of them are considering veering away from the traditional commercial programming to more innovative formats.

In sum, conditions seem to be ripe for undertaking more practical reforms in both the government and private broadcast sectors. These reforms could lead to the establishment of institutional structures that will more effectively carry out the tasks of public service broadcasting. In problems lie opportunities to-be seized. On the part of the KBP, since two years ago, the association has re-focused its thrusts to encouraging member stations to provide more public service programming.

Legislative Efforts

The mandate for shaping the broadcast media structure so that it serves the interests of its citizens is derived from the .Constitution. Article XVI, Section 10, says: "The State shall provide the policy environment for the full development of Filipino capability and the emergence of communication structures suitable to the needs and aspirations of the nation and the balanced flow of information into, out of, and across the country, in accordance with a policy that respects the freedom of speech and of the press." It is one thing however to see that in the Constitution and to see it implemented in reality.

There have always .been efforts to pass laws to develop the communication structures in broadcasting that are called for in the Philippine Constitution. Every time a new Congress is elected, bills are filed for the establishment of a Public Service Broadcasting Organization. None so far have become laws. It seems to suggest that the problem is not a question of law but a question of politics.

However, it is instructive to look at the features of the bills now pending in both the Senate and the House of Representatives as they suggest some solutions to the problem of public service broadcasting. Since the Senate and House versions of the bill on public service broadcasting are nearly identical I will treat them as if they were one and the same. The following are their key features:

• Declaration of a policy recognizing broadcasting is a medium for development and the promotion and advancement of Filipino culture, values and identity.


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• Declaration of a policy that broadcasting must serve as a vital link for democratic participation and as a means of disseminating information through developmental communication in a manner that is free from any political or partisan influence, also asserting that'broadcasting should be held accountable directly to the people.

• Creation of a Philippine Public Broadcasting System (PPBS), which has as its objectives the following dissemination of information, education, and entertainment to the general public and the development of critical thinking among the citizenry.

• Creation ora Board of Directors for the new PPBS whose members are to be nominated by associations and organizations representing various sectors in the broadcast industry.

• Ensure that majority of the programs broadcast by the new PPBS are locally produced.

• Consolidation of broadcast assets of the government under one agency.

• Setting aside up to two percent of the total budget of all departments and agencies of the government, including government-owned or controlled corporations for the production of educational, civic and community service programs.

• Setting aside ten percent of the annual budget of the new PPBS for programs "that have shown over-all artistic excellence and projected true Filipino values.

• Exempting from any tax donations to the new PPBS specifically intended to improve "the technical quality" of broadcast programs.

• Requiring 35% of donations received by the new PPBS to deserving private broadcasting stations rendering public service or community service.

Some Negative Features

The proposed law, however, has some weaknesses:

1. While it recognizes the importance of making the new PPBS autonomous, it places the organization under the direct control of the Office of the President.

2. Membership in the governing Board of the new PPBO is limited to broadcasters and do not provide for active participation by sectors like education, non-government organizations, children, women, cultural groups,


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women,and children that will insure that programming will reflect their diverse interests.

Children's Television Act

Congress' actual contribution to public service broadcasting is the passage two years ago of the Children's Television Act. This law aims to make television programming truly responsive to the development of children. There are two very significant features of the Act. First, it creates a Council for Children's Television which, will monitor and review programming on television to see if it adequately serves the best interests of children. Second, it requires television stations to devote 10 percent of their airtime to children's programming. Third, it sets aside a fund to be distributed in the form of grants for the production of children's programs. It also requires the Council for Children's Television to prepare a study and submit its recommendations to Congress on ways to further promote children's television programming.

The Children's Television Act is laudable for providing the means through which various sectors of the public and ordinary citizens can participate in determining what kinds of programs should go on the air. Under the law, the members of the governing Council are to come from educators, child development experts, nongovernment organizations, and, most important of all, parents.

Proposal

Unlike many countries in Asia, private commercial broadcasters dominate broadcasting in the Philippines. This is really the reason why the Children's Television Act is an outstanding measure of Congress. The only problem now is how to operationalize it. Two years after the passage of the Act, the implementation, which will put it to operation, has yet to be approved by the council. Nevertheless, there are some ideas that we can pick up from it that are useful for institutionalizing public service broadcasting:

The responsibility for the supervision and regular review of programming should be lodged in a corporate body separate from those actually engaged in broadcasting activities. The scope of concern of this body should encompass both governmentowned broadcasting and private broadcasting, whether commercial or noncommercial. This body should not be a government unit but public in the sense that citizens representing the diverse interests in the community control it.

The primary thrust of this body is to promote the, creation, development and production of programs which embody the spirit, aspirations, and concerns of the public. It should be responsible for monitoring programming, evaluating programming to see if they conform to standards, and influencing the market so that programming which serves the people as citizens are widely available. Such programming should focus on the expression of cultural diversity and the various interests of groups in society, especially those who are underserved not just as an audience but also as participants in providing content in programming.


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Finally, such a body should be accountable for its actions to Congress. While it may be formally part of the Executive Branch, it should operate autonomously and its performance be evaluated by the representatives of the people, which is the Congress.


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Federal Structures for Public Service Broadcasting Dr. Manfred Kops

Institute for Broadcasting Economics, University at Cologne, Germany

Abstract: The speaker brings out the relationship between federalism and Public Service Broadcasting and suggests that the broadcasters should use the advantages of federal structures. Federal structures can be put up not only by a regional differentiation of the programme supply but also by a "tunctions!" differentiation. A federal structure of PSB, which offers different channels to different audiences, can create a higher benefit to the audience than a nonfederal and "cenirel" structure with only one channel.

One main advantage of federally structured organizations is the possibility to vary the quality and/or quantity of publicly provided goods and services with regionally varying costs and benefits. In the high-cost regions with low benefits, the goods and services can be provided with at a smaller quality/quantity. In the low-cost regions with high benefits, the goods and services can be provided at higher quality /quantity.

In contrast, in non-federal central jurisdictions, the goods and services can be provided only with an average quality/quantity for all regions. It is with the consequence that has to be compared to the citizen's preferences. The level is too high in the regions where the costs are high and benefits are low. The level is too low in the regions where the costs. are low and benefits are high.

The advantages of federalism are many and should be used by Public Service Broadcasters. Federal structures can be put up not only by a regional differentiation of the programme supply but also by a "functional" differentiation. That means for differentiation of the language or the age of the audience, or by ethnical, religious and cultural attributes, the PSB programme supply will have both regional and functional differentiation. In the other word, if these differences exist, a federal structure of PSB, which offers different channels to different audiences, can create a higher benefit to the audience than a nonfederal and "central" structure with only one channel.

One has to take into account a regional or functional federalization of PSB in relation to the production and distribution costs. Therefore, not a maximal but an optimal degree of decentralization of PSB should be achieved. This optimum can be defined theoretically as the degree of decentralization, where the marginal costs of an additional channel will be equal to its marginal benefit. Although it is complicated to determine this point empirically, at least some indicators can be measured by accounting and controlling techniques for the marginal programme costs and audience and programme auditing for the marginal programme benefits.


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A regional or functional differentiation of PSB's programme supply may include the risk. However, it reinforces the different programme preferences and attitudes of the regional or functional subgroups. Any sort of Isolation, disintegration and separation would have the negative effects for PSB programme supply. To prevent PSB from these negative effects, it must assure that It confronts the different subgroups with the other subgroups attitudes, opinions and problems also with a federal structure. A nationwide transmission of regionally or functionally focused programmes eventually put through by must-carry-rules for service providers (cable net or satellite) or a joint production of a nationwide channel by all regionally or functionally specialized PSB. This may be the appropriate instrument to secure this integrative function of PSB.


The Administrative and Financial Aspects


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Financial Aspects of PSB

Mr: S. Heidari

Advisor to President, {RIB

Abstract: The speaker examines various methods of generating revenue for PSB viz. License Fee, Government Grants, Advertising Revenue, Contract and partnership and donation. He focuses the constraints faced in implementing these methods. He believes that the tendency to increase advertising revenue may lead the PSB to behave like commercial broadcasters. Contracts and donations are very small contribution. License Fee may be reliable but difficult to collect. So, depending on local conditions in any country, a balanced mixture of public funding, advertising and sponsorship may be the best solution for PSB in Asia and the Pacific.

Changing Broadcast Environment: Facts and Realities

The broadcasting scenario has undergone a dramatic change. There are trends of deregulation and evolution of multi-channel TV with strong commercial competition supplemented with satellite and cable cooperation. The introduction of digital broadcasting and new media put PSB to face enormous adaptation challenges and increasing competition. PSB has already seen the saturation of TV viewers and found the evidence of substitution from new media. There is an increasing cost for talents and rights in genres (such as sports).

Pressure on funding is evident as government seeks to reduce the overall tax and increased competition reduces available advertising revenue. This results in having loss of share (and the influence) to the commercials. Administrative Constraints of the PSB on the budget are many like: higher overheads (large production units. educational department, Other commitments). overstaff and absence of competition. On the top of it, PSB lacks marketing techniques and sophistication. But a few choices are left for PSB. It must respond to the changing environment fast and keep the share of the market without deteriorating the content of their programmes.

What is the role of PSB?

Role of PSB is to

• Produce broad and high range of quality programmes (Cultural, educational.

informative, children. entertainment etc.)

• Ensure reception by all potential audience

• Reflect both mainstream and minorities

• Help sustain the national culture

• Support a strong national production base

• Generate reasonable profits in the private sector

• Find the right balance between share and distinctiveness


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To fulfill these requirements, the PSB needs clarity in its own mission and programming strategy to monitor share while staying .dlstlnctive. It needs to modernize the operation with an eye to reduce cost and develop appropriate funding model for PSB. McKinsey report on PSBs indicates that an ideal funding model is one, which is enough to create a true competitor to; commercial channels, Independent from undue government or other influences, predictable over the medium term, growing at a simple and a faster pace than the PSB's cost and sufficiently simple and equitable that it can be administrated with a minimum of political controversy".

Interdependency:

There is a strong linkage between the health and funding model of PSB to its overall quality of broadcasting. There is also a strong linkage between the financial and administrative aspects of PSB.

The sources of funding to a public service broadcasting organization can be categorized broadly into

• License Fee

• Government Grant

• Advertising revenue

• Contract and partnership

• Donation

But the constraints to generate funds through these above sources are many. For example, increasing advertising revenue may lead PSBs to behave like commercial broadcasters. Contracts and donations normally are a very small portion of the PSB's income.

License fee funding is the most stable, reliable and a longer term funding source but collecting license fee is not an easy task. Moreover, It is difficult to get authorities approval for the license fee system. There is no uniformity in levying because the audience with different age group and income has to pay the same fee. On the top of it, public doesn't pay the license fee regularly.

Some European countries exempt aged people (above 60~65 years) from payment. Some others exempt villagers, low-income people and rnlnorities. But still license fee is a major source for PSBs.

Conclusion:

There is no single solution for all different cases. Depending on local conditions in any country, a mixture" of public funding, advertising and sponsorship may be the best solution for PSB in Asia and the Pacific.

*McKinsey& Company (1999),Public Service Broadcast~rs Around the World, A McKinsey Report for the SSC, January 1999


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Singapore's Approach to Public Service Broadcasting Funding Mr. Lim Hock Chuan

Chief Executive Officer, Singapore Broadcasting Authority

Abstract: The speaker is of the view that Public Service Broadcasting can playa significant role in our lives, but it will need to continue to be relevant to our times. It will still need to provide quality content that meets a range of needs and interests and speak to us in a medium that reaches us best. Accordingly, funding for PSB programming needs to redefined in terms of PSB genres, relevance, quality, variety and range and technology (PSB in a digital world).

Public Service Programming

Public Service programming probably means different things to different countries, but the key characteristics that many would recognize to be hallmark of good public service programming

PSB programme should "inform, educate and entertain". This famous maxim by Lord Reith, the first Director-General of the BBC, is equally important as PSB principlethat programme should not only entertain, they should also inform and educate.

• PSB programming should promote quality and diversity in the other words, there should be high quality programmes across a range of genres

• PSB programming should provide programmes for all members of the public.

The public should have universal access to programmes and events of significance.

• PSB programmes should foster a sense of national identity and social cohesion and instill in the people an appreciation of multi-cultured diversity and heritage.

The Singapore Context

These are the key principle which help to define what public service broadcasting is about. In addition, Singapore is unique in having a multi-racial society with four main languages So, one of the four tenets of PSB programming is to have, not only informational programmes for general audiences, but also to cater to niche and minority groups, such as Malays and Indians. PSB Programming is also important to Singapore because it provides local content, which is relevant to Singapore audiences. Because we are a global city, our TV stations air a lot of acquired programming, but it is local programming that anchors Singaporeans and give a sense of rootedness and belonging.

What constitutes PSB programming? It includes genres such as news, current affairs, info-education, quality drama, children, arts, Malay and Indian programming. Free-toair broadcasters are expected to provide PSB programming in these genres. For example, TCS 8, the only Chinese free-to-air channel in Singapore, has to air a


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specific number of hours of PSB programming in a week. including news, current affairs. info-education, drama and children programmes. Some of these programmes have to be provided by the broadcaster (using its own resources) and Singapore Broadcasting Authority funds some.

Singapore Broadcasting Authority

The Singapore Broadcasting Authority is a regulator and promoter of broadcasting industry. SBA collects annual license fees (which amount to $110 per year for colour TVand $ 27 a year fora car radio). The money collected from these annual license fees, together with a government grant, is used to finance public service programming.

PSB funding is given to our free-to-air broadcasters, namely Television Corporation of Singapore. Media Corps News. Singapore Television Twelve and the Radio Corporation of Singapore.

In the case of radio. PSB funding is provided for Malay, Indian and arts programming. This is because niche and minority programming are less viable commercially, and without funding support. broadcasters may concentrate on programming for the majority, leaving out niche programming which may be less attractive to advertisers. So, mandating PSB programming helps to provide variety and diversity in broadcasting.

Although SBA does not fund the mainstream English and Mandarin stations on Radio, they are expected to air a minimum number of hours of News and Infoeducation programmes. This is to ensure that each station provides sufficient information content to its listeners to keep them abreast of key issues of the day.

In the case of television. PSB funding is divided among mass channel such as TCS 5 and 8, which have the wtdest public reach and hence are an important channel for PSB programmes: specialty networks like channel News Asia which provides slqnlftcant current affairs and information programmes; and niche channels like central and Suria which provides children, arts, Indian and Malay programming.

Multi-racial Programming

PSB funding is provided to both mass and minority channels. This is because Singapore is a multi-racial nation and key-programmes need to be produced in the four languages. These include news, current affairs, information, drama and children's programmes. Some may see this as a duplication of resources, but multilanguage programming is important to ensure that each community is aware of key political, social and economic issues and how they relate to the nation as a whole.

Good PSB programming should not only cater specifically to a community, but also foster social cohesion and better understanding of each other. For example, we encourage drama which reflects multi-racial composition of Singapore (such as the


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popular sitcom Under the Roof) and we have funded the programmes, which promote a better understanding of the diversity food, culture and .custorrts in Singapore.

In short, racial diversity is an important guiding principle for PSB programming in Singapore, celebrating what is special to each community and reflecting the richness and cultural diversity of life in Singapore.

Commissioning and Local Content

As mentioned earlier that one of the key principle of PSB programming is developing local content. Since 1998, the Singapore Broadcasting Authority has worked towards increasing local content by commissioning TV programmes from broadcasters and encouraging them to outsource to independent production houses.

Each year, SBA sets aside about $ 6 million worth of funds for commissioning. The scheme is an extension of public service programming,as the genres we support are usually public services in nature. In some cases, we help to kick start new genres that the broadcasters are cautious to experiment with. For example SBA funded SPIN, the first teen drama series on TCS5. The series has entered its second season and it emerged as one of the top programmes on TCS 5 in April, beating ALLY MCBEAL and X-FILES.

This illustrates the strengths and attraction of local programming. And in case, you are wondering why we supported teen drama, because, it is useful vehicle for reaching out to teens. Messages are more palatable in the form of drama, and the ratings would seem to support this.

Since the commissioning scheme began two years ago, over 260 hours of programmes have been commissioned. They include dramas and documentaries in celebration of UN year of older persons. A documentary series on the Singapore film industry; a series on challenges facing Malay community in the new millennium and a series on Indian pioneers in Singapore.

Funding for Digital TV

To sum up, SSA provides funding for public service broadcast programmes in the four official languages (English, Chinese, Malay and Tamil) and we also commission specific programmes on yearly basis ..

In addition, we are now looking at funding programme to support digital radio and TV. SBA has recently set up a Digital Broadcasting Development Fund to encourage the development of original, innovative and high quality digital broadcasting content and services.

In the field of digital radio programming, SSA intends to support projects, which will give value-added programming to radio. One example is the development of programme and non -programme associated data such as traffic and whether


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reports, business information etc. We also hope to encourage radio broadcasters to set up more niche stations, as more channels will be available with digital broadcasting.

As for digital television, we hope to encourage high definition broadcasts, for examples key national events can be televised on high definition, or could allow viewers to view programmes from a multi-camera perspective. We will also help to fund programmes with enhanced features such as interactivlty or programmes, which are linked to informative websites. This is a new ball game and we are excited about the technical possibilities for new content creation.

Issues relating Public Service Broadcasting

More Channels and Same Funding

Public Service Broadcasting has served Singapore well for many years. But the broadcasting environment is changing. With the introduction of new free-to-air broadcaster, announced in the month of June 2000, the number of free-to -air TV channels would be increased from 6 this year to 8. Although FTA channels have increased, licenses fees have remained the same, since 1994. This means that the same amount of license fee have to support more programming on more channels.

One solution may be to raise fees but this is not a simple solution as there are some who question the rationale of paying license fees especially when broadcasters are free to collect advertising revenue.

With more free-to-air channels, SBA will have to rationalize its approach to PSB funding. Should SBA continue to support mass, niche and minority channels equally? Should SBA assess which are the channels, which have capacity to reach the widest audiences and hence deserve a higher support? SBA may also need to assess the PSB genres are more commercially viable and slowly wean them away, so they can be self-supporting.

As mentioned earlier, broadcasters have to produce some PSB programmes, using their own resources. This is known as "mandatory" PSB. In future, if PSB funds are insufficient, broadcasters may need to produce more mandatory PSBs at their own expense. Or we may have to look at only partially funding of PSB programmes.

Fragmentation. of Audience

A related issue is audience fragmentation. With more channels. particularly with the advent of digital TV, audience will become more fragmented and it will become harder to decide which channels to support. Audience fragmentation will become more acute as more audience turn to cable and to the Internet for their information and entertainment needs. So, is there a future for public service broadcasting?


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Future of Public Service Broadcasting

There is a need to re-define public service broadcast in the multi-channel digital world. How will the public voice and the key messages. be heard in a cacophony of multiple channels and media?

Our prognosis is that public service programming will be even more important in this brave new world of digital technology. There is even greater need for content that's relevant and of quality to ensure that the public has access to a range of programming that caters to the varied taste and interests in society.

On top of this, it is also important for broadcasters to tap the latest technologies and to extend their reach by encouraging interactivity, with more people not only turning to television programmes, but also going online to get more value-added information.

The SSC for example, has joined forces with Yahoo U.K. to provide news content on the Internet. The aim is to extend the audience reach of SBC News online as people who watch an Internet service may migrate to the TV news programme and viceversa. The can be said of Channel News Asia. It offers news programming both on television and also on its website. Public Service programming, it can be said, has been extended to cyberspace.

In conclusion, it is my belief that Public Service Broadcasting can playa significant role in our lives, but it will need to continue to be relevant to our times. It will still need to provide quality content that meets a range of needs and interests and it will need to speak to us in a medium that reaches us best.


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The TVRI Experiences

Mr. Chairul Zen Director, TVRI

Abstract: The speaker presents a case study of Administrative and Financial aspects of TVRI with special reference to the structures and responsibilities of its offices. The g~neration of financial resources of TVRI is always through public fund. The public funding comes from taxes on receivers, license fees, advertising, government subsidies and other sources of fund raiSing through licensing, producing, marketing and retailing quality consumer products which relate to programming and services. Funding also come from facility hiring, books and magazine publishing, film distribution, audio and video tape sales, and licensing of logos and other registered trademarks to third parties for the creetion of anCillary products.

Introduction

Broadcast System from one country to another country differs in terms of station ownership, economic support and programming philosophy. Since the national government determines the nature of the television system within its boundaries, the characteristics of the television system always reflects the basic national, economic and sociopolitical philosophy of each country or nation.

TVRI Experiences

The Nature of TVRI

Television of the Republic of Indonesia, TVRI, was established on August 24, 1962, when the fourth Asian games was held in Jakarta, Indonesia. The Central station was located in Sesenayan Jakarta. In 1965, a first regional station was built in Yogykart (Central Java) and continuously year-by-year other regional stations were built all over the country.

TVRl's intensive activities as a national network begin in the 1970s, parallel to oil boom, which brought profits to Indonesia. The oil boom made it possible to build seven more regional stations within five years. Presently, TVRI has one central, national station, which is supported by 13 regional stations for broadcasting and nine local production stations for supporting programmes. TVRI also has 395 transmitter stations within the power of 325.26 kW. It could cover 49.90 % of the Indonesian area and reach 81.90% of the population.

TVRI has two channels called " Programme 1" for nationwide broadcasting and "Programme 2" for the area of around Jakarta city. The central station of TVRI is on the air for sixteen and half hour everyday, divided into morning, afternoon and evening programmes. 14 supporting stations broadcast their own local and regional


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programmes from two to four hours each day. Generally, TVRl's programmes consist of news, education and entertainment. 82.29% of the programmes are produced by TVRI the rest (17.71%) are canned products from outside TVRI and foreign countries.

The Administrative Aspects of TVRI

Administratively, the existence of TVRI was based on a Decree of the Provisional People's Consultative Assembly of the Republic Indonesia. The decree stated that there is a need for building a television network to enlighten people in the framework of national education.

Referring to the Decree, Indonesian first president started to build the first national TV in 1962.Since March 1, 1963, the status of TVRlwas decided under a foundation, based on President Decree. The foundation was called' Yayasan Televisi Republik'. Yayasan means Foundation, put TVRI into operation as public service broadcaster with the president of the Republic as its chairman. The foundation was responsible for operating television services and act internationally as the national authority or representative with regards to matters related to television broadcasting.

During the period of 1963 to 1975, TVRI as a Public Service Broadcaster performed its functions independently. Neither the parliament nor the government interfered with TVRl's programme policies. TVRI had played a critical role in the Indonesia society and a highly successful national broadcaster. TVRl's activities spanned throughout the social, cultural, economic and political life ofthe nation, providing broadcasting services as a consequence to the needs of people's lives. In the other words, TVRI was innovative, comprehensive, contributing to national identity, encouraging and prompting the various local and national cultures and arts with extremely high standard services.

However since the year 1975 until last year the nature of TVRI changed drastically from the Public Sphere to the bureaucratic sphere, from the non-profit public foundation to the governmental network. Administratively the management of TVRI was under the Minister of Information. Based on the structure, Director of Television, Head of the central station, heads of local and Regional stations as well as production and transmitter stations were directly responsible to the Director General for Radio, TV and Film of the Department of Information. Minister of Information appointed them. Parallel to that. Since 1980, all of the TVRl's staff became civil servants. As tlie consequence, TVRl's management had to implement the governmental objectives. It also functioned as technical unit of the . Department Information and had to carry out parts of the functions of the department.

In accordance with the social and political changes in Indonesia within last two years, TVRI has the opportunity to change its status to again become an Independent Public Service Broadcaster. Since there has been unhealthy tendency in the private


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television competition, in terms of programming, a public service broadcaster seems to be an alternative.

Structurally, the TVRI is projected under the ministry of finance. And the department for finance is only dealing with financial aspect. It will not intervene into the management and programme policies. Under the new status, TVRI can produce and telecast its programmes in' order to meet the needs and interests of the viewers of different groups, including minorities. As a Public Corporation, it can maintain a balance between information/educational entertainment programmes. It can strive constantly to improve the quality of its services by incorporating the latest broadcast technology and updating the content and presentation of its programme.

The Financial Aspects of TVRI

From 1963 to 1981, TVRI derived its revenue from selectively commercial advertising and from television license fees. TVRI was accountable to the Indonesian viewers. The public funding allowed TVRI the freedom to maximize the opportunity and obligation to provide the diversity in programming. During this period, TVRI recognized of its high degree of independence along with its high degree of responsibility. Its activities are conducted in the most efficient and effective way while maintaining quality and comprehensive services.

Unfortunately, in the middle of 1981, the government prohibited TVRI from accepting advertising or sponsorship for its broadcasting services with the exception of governmental institution sponsorship. The prohibition is still 'effective until present. From 1981 to 1990, the main financial support for the TVRI's operations was only television license fees. Since 1982 until now, the monthly license fee is US $ 0.15 to US$ 0.45 for a black and white TV set and (US$ 0.60 to US 0.90) for a colour TV set.

In the beginning of 1990's, parallel to the emerging of cornrnerclal television in Indonesia, TVRI also derives its revenue from the advertising contribution paid by the private television stations. Based on the regulations, especially the Decrees of the president of the republic of Indonesia and then affirmed by the Broadcast law of 1997, the private television stations have to contribute 12.5% of their advertising profits to support TVRI financially.

According to the last regulation, the funding for the TVRI operations comes from the Government subsidy, television license fee, private television contribution and other resources such as government institution sponsorship. However, from the year to year the payment of television license fee as well as contribution, tends to decline.

The TVRI fiscal of 1999 income was about 187 billion Rupiah equivalent to US $ 22 Million. The income came from Government subsidy (54%), private television contribution (32%), License Fees (11 %) and other resources( 3%). In the fiscal year of 2000, the income is projected at 194 billion Rupiah or equivalent to US $ 27 million most of it comes from the Government (63.34%) and other income (36.66%).


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Regarding annual budget plan and accounts for audits in 1999, TVRI had to submit it to the department for Finance through Department of Information. Nevertheless, for the fiscal year of 2000, due to the liquidation of the department of Information, TVRI can directly submit the annual budgeting plan and accounts to the department for finance.

For the future as a Public Service Corporation, it seems that TVRI is going to face a number of financial management challenges inherent to the most efficient provisions of TVRI services. These include maintaining a decentralized operation to provide local and regional services in accordance with the encouragement of autonomous policy in the Indonesian political orientation, funding maintenance in real terms, long term period due to projected cost structure, production and new technology requirements.

In the term of projected cost structure, TVRI has to change its strategies improve its budgeted plan. TVRI should rely on selective advertising, endeavoring its strategic business units and still seeking the government subsidy to support its operation.

In conciuslon, TVRI has to strive its status to be Public Service Broadcaster. TVRI believes that by accepting revenue from selective advertising or sponsorship and the governmental subsidy, it would not diminish its independence, the diversity of the programming, its distinction from other broadcasters and appeal to audience.


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The rsci, Experiences

Mr. Sireli Kini,

CEO, Fiji Broadcasting Corporation Limited

Abstract: The speaker argues that PSB can generate funds through fiscal discipline, and advertising built around the charges strongly influenced by competition and popularity ratings .end Government grant. But the ·dilemma still exists whether to adopt BBC model or American (Commercial) Mode! for advertising.

Public Service Broadcasting (PSB) is broadcasting with a purpose: to enhance the quality of public life, authorize individuals and social groups to participate more fully and impartially. It is policy obligated unlike private or commercial broadcasting that is profit motivated and is concerned only in large audiences. Policy-motivated broadcasting is engrossed in reaching the largest possible audience. PSB derives its legitimacy from the provision of basic role and accomplishment of its cultural and promoting the culture of peace missions. While the commercial radio stations tend to place more emphasis on entertainment over education and information. The emphasis is reverses in PSB.

The global trend relating to deregulation and competition enhancement posed a serious threat to the legitimacy of PSB thus demanded a redefinition of its mission, It has been argued that necessary re-appraisal of basic service in a deregulated and competitive media environment must not mean that PSB is measured on the basis of ratings, but rather that it functions as a corrective to the programmes by commercial broadcasters. In addition to the task of catering for ethnic, religious, linguistic but also minorities, it is imperative to state the task of information processing and archiving that goes beyond current affairs reporting, and this allocate to PSB the function of electronic archives or possibly museums.

In case of Fiji, the Fijian and Hindi services of the Fiji Broadcasting Corporation Limited (FBCL) have accepted the role of custodian of two vernacular languages. In their programmes, they always ensure that high standards of languages are maintained. The FBCL plays a dominant role in the Fijian oral tradition it has been active in promoting choral singing and local artists. These activities are conceived to be part of public service broadcasting. Because it had accepted this role as a part of its PSB roles, it now has valuable historical audio materials in its archive.

As PSB is policy motivated, FBCL has been active in promoting healthy living, multiracial harmony, influencing individuals and groups to participate. effectively, gain or engaged in meaningful employment and increase creativity. Programmes related to disaster awareness, environmental issues, crime prevention, child up-bringing etc. were been produced and presented in harmony with the national policies.


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FBCL as it strives to enhance its performance, as a public service broadcaster tries to improve its appreciation of the communal property regime that is prevalent and strong in developing economics. The essence of the communal system is preservation of land system, which prohibits alienation. In contrast, to market cultures where individual property rights are not only recognized but also considered essential to functioning market system, traditional culture believe land to be more than a tradable community. This is part of Fiji's cultural,social and economic heritage. This ancient doctrine remains strongly held in the pacific because the main source of sustenance, including markets such as tourism services, continues to be based on the land. Since non-land -based economic resources in the Pacific economics are either limited, or have limited economic value, land today is valuable as it was when farming and fishing were the only source of sustenance.

The importance of PSB is therefore unquestionable, but its provision is continually been challenged by insufficient funding to pay the cost. Provision of PSB faces the difficulties of how it is funded. In the case of Fiji, Fiji Broadcasting Corporation recognized quite early in its existence of what is needed for development of PSB. A country can only have as good a good broadcasting services, as it was willing to pay.

FBCL initially in its early days was torn between the realization that most fruitful source of revenue was advertising and the feeling that listeners would be happier without advertising. The conflict was, in essence, that between noncommercial BBC model of broadcasting and American (commercial) system, built around advertising charges are strongly influenced by competition and popularity ratings.

It soon become clear that money to run broadcasting. on the line of BBC was not going to be forthcoming in Fiji from Government subsidies.

The fluctuating level of funding for PSB from the annual national budget posed planning problems for management. Most countries in the Pacific face this problem. The triennial funding arrangement solved this problem to some extent at the Australian Broadcasting Corporation where the ABC is guaranteed with the same level of funding for three years.

The 1996 Fiji Public Enterprise Act provided an opportunity to explore other funding arrangements to ensure that provision of PSB at accepted quality and quantity would not be hindered due to inadequate funding a common understanding is reached between the Government and the broadcaster to the content, quality and quantity of the PSB. All cost factors were identified and incorporated into a three agreements under which the government was required to pay.

I am aware of the argument that commercial broadcasters can also provide PSB. The nature of PSB as I have outlined would deter commercial broadcasters from being engaged in PSB activities until it contributes into its bottom line ... profit. PSB is too important to be left entirely to advertising or the market to provide it's funding, as they susceptible during political uncertainty and market failures.


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The provisions of PSB in Fiji would have been badly affected if it were funded from the advertising dollar during the political turmoil it currently faces. PSB is not affected by when advertisers were hesitant to spend because of the uncertain situation. PSB funding is intact under the contract. The contract also protects the broadcaster from demands for programmes other than those specified in the contract.

Broadcasters sometimes assume that policy makers understand the importance of PSB. I think it is our duty to ensure that our policy makers Understand that without the efficient and effective provisions of PSB, the country and its people would have an irrecoverable loss. The loss is present and future generations.


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The PBC Experiences

Mr. Anwar Mahmood

Director-General, Pakistan Broadcasting Corporation

Abstract: PSB and commercial sponsorship are contradictory in terms. Thus PSB should restrict its claim to public funds. But the question remains: how much of public fund as there are competing demands on public funds. It is necessary for PSB to consider alternative strategies to deal with the situation to utilize the present public funds in the best way and find out new ways of generating revenue without compromising the principles of PSB.

Had the issue been that of broadcasting alone, public service broadcasters the world over would not be scratching their heads today for improvisation, innovation and adaptation. For that is what public service broadcasting demands today. On the one hand, these broadcasters have to cater to the norms of public service and on the other; they are required to do so within the framework of financial and administrative straight jackets that they are put in. Since the menu we serve doesn't usually interest the likes of Coke, Pepsi, Nikon or for that matter Sony and Toyotas of this world, why should any of their kind come to our studios to dine?

To my mind, public service broadcasting and commercial sponsorships are contradictions in terms and thus our claim to public funds. The only question is how much as there are competing demands on public funds?

In the year 2000, it may sound outdated. to suggest that of all the ways of communicating ideas and emotions and providing information and entertainment to great number of people that modern technology had made possible, broadcasting reaches the rnost people most quickly. Yet, the statement is difficult to deny. Decades ago President Roosevelt once spoke to 62 million people in one broadcast, probably the greatest single audience any man ever had through radio. And even today, the President of the United States takes to radio to address his fellow citizens every week.

Today, radio as the oldest of the electronic media with a history of more than seven decades to its credit, is the most powerful public service broadcasting medium. Public service broadcasting is not just another "venture". It is getting more and more difficult to operate and manage as increasing commercialism and fast changing technology works to the advantage of private broadcasters.

We can however draw strength from the fact that public support for PSB is as strong in the developed world as it is in the developing. I mention this in the context of the discussions we had yesterday. When the Roper Poll asked Americans whether public TV; network TV and cable TV were educational, informative and important, they gave public TV much higher scores. When asked to compare public radio and TV with


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other public services, they rated them more valuable than all except the armed forces and law enforcement. But with operating costs increasing faster than government grant, public service broadcasters are increasingly getting dependent on audience sensitive revenues.

Let me share our own experience of public service broadcasting. Since August 14, 1947, Radio Pakistan has been broadcasting public service programs. Originally a government department, Radio Pakistan was converted to a statutory corporation and was renamed Pakistan Broadcasting Corporation (PBG) on December 20, 1972. The number of stations have increased rapidly in fifty two years of Radio Pakistan's history, not because there was a need for all of them but because governments over the years succumbed to political pressures, ordering setting up of radio stations without any justification, social or economic. I set down below for your information the PBS scenario in Pakistan in terms of Radio and TV coverage:

Radio Coverage 24 Radio Stations. 36 languages.

English + Urdu + 19 Regional/Sub-regional languages. 16 Foreign Languages.

Domestic Coverage by Radio 78% Area.

96.5% population. 45.5 million listnership.

TV Coverage Network

PTV1

PTVWorld STN/Channel-1l1

87%

75% 40%

TV Viewership Aqe-wlse Viewers in age-group 50+ Viewers in age-group 30-50 Viewers in age-group 18-29 Viewers in age-group 10-17 No. Of AsiaSat dishes

No. Of PAN AM dishes

13%

23% 34% 30%

1.5 million 0.8 million

For over five decades, PBC has had absolute monopoly of operations. There has been a steady flow of government grants and no lack of required patronage and concessions. Rather than use all that to build a strong financial and technological base, we went for unplanned and unproductive expansion, increasing administrative and non-programming expenditure to the detriment of direct broadcasting interests.


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When now confronted with competition, we in PBC are expecting for miracles to happen.

The government has done what all it could. Beginning the first of July, 2000, the grant to PBC will see a 25% increase. Add the increase allowed in the current fiscal year, there has been a 75% increase in government grant in two years. The government could not have done better. But there is the other side of the story too. PBC spends 50% of its budget on pay and allowances for its employees, 25% on utilities and another 10% on retirement disbursements annually. That leaves us with a mere 10% for programming including expenses on news gathering and other production costs. There is the enlarged government subsidy for the next fiscal. The situation is indeed critical. But PBC has not given up nor indeed will it ever give up.

PBC is on its way to generate self-sustaining revenue streams through public-private partnerships of innovative kinds. PSC thus set up a Broadcasting Foundation as a subsidiary company that is going into a number of commercial ventures based on both our broadcasting as well as non-broadcasting assets. PSC is setting up a nationwide voice-paging system in collaboration with a private sector enterprise, using our existing FM transmitters. The launching is set for August 14. We are also setting up an ISP, which will not only provide Internet service to us but also to commercial and domestic subscribers.

PBC sets up a high quality educational institution in collaboration with a prestigious national institution using extra and unused space of our broadcasting academy. And PBC has established a FM channel of our own competing strongly with the only private sector FM channel in Pakistan. PBC has contracted out its marketing rights for a sum of Rs.460 million annually. Not a modest sum given the fact that it is 1/3rd of PBC's existing advertising revenue. And PBC still has thousands of acres of prime land that it intends to develop commercially.

These efforts could not have come at a more opportune time as Pakistan prepares to welcome private broadcasters. The government has just made public the draft law of

. what it describes as the Regulatory Authority for Media Broadcast organizations or RAMBO for short. With these private broadcasters expected to be on board next year, the party for public broadcasters are over. Can the public service broadcasters meet the challenges of the new competitive environment? I for one believe we can. We must employ every bit of it to innovate, adapt, plan, strategize and of course, execute.

Therefore, to ensure effective administration of public service broadcasting both government subsidy and revenue generation is needed together with careful financial planning. One cannot do without the other.


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The Prasar Bharati Experiences

Mr. Rajeeva Ratna Shah CEO, Prasar Bahrain, India

Abstract: The Public Service Broadcasters should take note of the present situation arising out of high competitiveness from market forces. PSB should develop strategies to compete with commercial broadcasters for revenue and also fulfill the obligations of a Public Service Broadcaster. Multi- channel strategy is one of the many strategies. Doordarshan adopted recently. So, the organization was able to fulfill the duties of both Public Service Broadcasting as well as providing major competition to commercial broadcasters in terms of revenue. The speaker unfolds some of the interesting and important strategies of Prasar Bharat; to stay as a unique Public Service Broadcaster for long.

Prasar Bharati as Public Service Broadcaster

One of the basic objectives of the public broadcasting system should be to strengthen the democratic process by providing information, promoting debate and discussion on all vital issues, and providing a platform for interaction between the common man and the policy maker. Market forces cannot be expected to take care of these objectives. This reinforces the need for a public service broadcaster, which would take care of these objectives and also promote a common national outlook by providing shared experiences. In addition, such a broadcasting system is also expected to promote and foster the diverse culture of the country.

In India, the process of large-scale commercialization of broadcasting began in the 80's. Even though Doordarshan and All India Radio enjoyed a monopoly, a reduction in the proportion of budgetary support, combined wlm pressures to raise more revenues to fund rapid expansion, forced the pace of commercialization. As Doordarshan sells airtime on the basis of the size of its viewership, it began to look for ways and means of increasing its share as the media market became increasingly competitive. This resulted in a reduction in its emphasis on public service programming, as the prime time was reserved for commercial programming which earned the most revenue. Radio underwent a similar process, though to a lesser extent.

A problem has arisen because both services, particularly, Doordarshan, auctioned airtime slots, either by programmes and, more recently, ln.half-hour segments during the evenings, to private producers in order to maximize revenue. This has led to a quixotic situation that, increasingly, Doordarshan, a public service broadcaster, owns neither the programme content nor the marketing rights to the programme being shown on its channel. While the above steps have resulted in Doordarshan's income increasing, the overall growth in income since 1995 is significantly less than the media industry; be it the national or the regional language channels. This is


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responsible for the loss in Doordarshan's market share in terms of viewership and revenue, even though the organization broadcasts the most popular programmes in Hindi and many of the regional languages, and has the largest audience amongst all television channels.

Accountability and Structure

The public service broadcaster plays a key role in any society, especially, in a large and thriving democracy. It must be a part of "civil society", independent of and distinct from the government. In fact, the public service broadcaster must act as one of the bedrocks of society, and seek to continuously enlarge the so - called "public sphere". It must play host to informed debate, provide space for alternative and dissenting viewpoints, be a voice for the voiceless, and give substance to the phrase "participatory democracy". A key principle of a public service broadcaster is that it must be completely independent. Its structure, financing and personnel policies should be such that it must not be at the mercy of or amenable to pressures from the government of the day. On the other hand, the public service broadcaster need not give in to the temptation of maximizing commercial revenue by providing mindless programming. To maintain this balance may not always be easy. A clear understanding of its own accountability and a good organization structure can help to facilitate this objective; and a truly professional staff will ensure it.

The public service broadcaster must be accountable directly to its "owners", the citizens of India. This means, in practice, Prasar Bharati must be accountable to the body, which represents the citizens of the country: the Parliament.

A crucial manner by which Prasar Bharati can reinforce its independence would be through financial independence. Prasar Bharati must aim to become self-sufficient within 5 years and must not depend on Government financing in the longer term. The only possible exception could be capital financing to meet strategiC or national goals that go beyond public service broadcasting. Indeed, it is vitally important that, for the financing of revenue expenditure, Prasar Bharati is determined not to depend on the Govemment, as this could lead to some form of political or other pressure.

Financing and Funding Mechanism

There are two major ways to fund a public service broadcasting organization like Prasar Bharati. The first could be through license fees, public subsidies and Government grants. Alternatively, the funding could be primarily from commercial revenue such as advertising and sponsorship revenue, pay channels, sale of audio and video programmes, and programming agreements. Indeed, a broadcaster has the choice of several different methods for it's financing. Similarly, funding entirely through a system of 'pay TV' runs contrary to the basic philosophy of a public broadcaster in a developing economy, as it is required that its basic service should be available universally, irrespective of the viewer's capacity to pay. However, this option certainly merits consideration for the premium products, which may be marketed by Prasar Bharati.


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Opportunities to earn revenues from the sale of television and radio programmes both within and outside the country may be targeted. Prasar Bharati believes that there is considerable scope for the sale of televisiOn programmes to channels abroad, which are targeted to the Indian Diaspora; and in certain specialized markets, which are not of immediate interest to Prasar Bharatl, Indeed, a special marketing operation is being developed to fully exploit such opportunities; as such business, lf properly conducted, could add significant amount to the commercial earnings of Prasar Sharati. Two major commercial opportunities, which Prasar Sharati is planning to exploit, are its transmission capabilities and studio and production facilities. There is always an opportunity to utilize the large transmission capability of the .organisation to provide digital terrestrial transmission to private operators in addition to providing uplinking facilities through the satellite network on which Doordarshan currently has excess capacity. Similarly, in the area of Radio, there are transmission, engineering and studio capabilities, which All India Radio could profitably sell to private operators.

The Central Studios, which belong to Doordarshan and All India Radio along with the regional production capabilities, need to be refurbished; indeed, to ensure professional capability, of the desired quality, it is certain that additional investment in equipment would be required. After the internal production requirements needs have been met, the opportunity to rent the available excess capacity may be considered. A self sufficient Prasar Bharati, in the area of financing, will not only reduce the pressure on the public exchequer, but would bring about a significant increase in the degree of efficiency in the overall operation of Prasar Bharati.

Channel Positioning

Multi- channel strategy is one of the many strategies Prasar Bharati adopted to create a decentralized system. Prasar Bharatl operates a large number of radio and TV channels. While some have a clear definition, target audience, and positioning, others seem to have no clear identity. Moreover, some channels are not only serve little purpose, but also cannibalize viewership from other Prasar Bharati channels. It is critical that each channel is positioned clearly and distinct from one another. In terms of its objectives, each channel is being differentiated so that it is preferred viewing/listening for a specific set of customers. Each channel whether it is radio or TV has a clearly defined identity and positioning so that, each channel is the specific choice for a type of viewer (or listener).

Programming Content and Production

Programme production for both radio and TV in Prasar Bharati is being planned to be undertaken on a project basis. Throughout the year, each team will be engaged continuously on the execution of one or more projects and on planning and preparing for the next. Budgetary allocations will be made to adequately support the project costs. Each project must have an approved budget and a specified deadline, with a time-schedule for each major activity. A quality-audit must take place on all projects,


49

once every three months, or oftener. If any assigned producer fails to deliver a programme of acceptable quality in the defined time, no further independent production responsibilities should be assigned to this Producer.

Marketing

Prasar Bharati is catering to the needs of diverse markets. At one level, the market is the 'advertising' market: consisting of an audience (television viewer, the radio listener and, in future, the user of Internet and New Media) who are desired by advertisers. In many cases, the same individual would be a part of more than one market. A second market for Prasar Bharati is, sale of .commercial services direct to their consumer. Here again, there are two distinct markets. The first is a small, but significant market of 'pay television' and in future, DTH that has considerable potential. The third market consists of television and radio channels that wish purchase services such as transmission capability, studio and technical facilities and television and radio software, including the use of the Doordarshan and All India Radio library facility. Prasar Bharati is developing develop strategies to understand consumer needs and the competitive offerings in the different markets then develop products and services, which are superior to competition. Finally, the organization makes marketing arrangements to market such products and services in order to meet the revenue target.

Human Resources Development

Critical to Prasar Bharati's success as Public Service Broadcaster are the HR policies that attract and retain the best talent; embellish and enhance their capabilities through training; motivate them to contribute their best; and provide leadership that is not only inspirational, but creates synergies which lead to a team output being greater than the sum of individual efforts. Human resources have been sorely neglected in Prasar Bharati. The result is an aging, inefficient, demoralized, without capability in certain critical areas. If the organization is not in an even worse state the credit must go to a few gifted individuals and to the overall growth of the broadcasting industry. A drastic overhaul is needed. This may well require re-deployment of staff, the pruning and jettisoning of deadwood and the induction of energetic and innovative fresh blood. Most important of all, there is a crying need to develop a creative modern, understanding, and yet ambitious work culture, a culture that would demand the very best for the organization.

On any rational criteria, certain functions are grossly overstaffed while others need more people. Independent review of the staffing is required, and must be entrusted to a competent professional organization. As Prasar Bharati has always emphasized the importance of content (content is the king), there is the need for Prasar Bharati to create most of it. This will entail greater in-house production.

Legal, Financial and Administrative Aspects of PuMic Service Broadcasting: Some Reflections

50

New Media and Emerging Technologies

New technologies, and growing convergence between diverse technologies (telecommunications, broadcasting, information technology), are creating new challenges as well as new opportunities for broadcasting organizations. Amongst the newer technologies, it is important to take note of: Direct-to-home (DTH) systems. DTH makes it possible to deliver, direct to households, about 200 TV channels. DTH will provide many more opportunities and options, and these should be quickly seized. Digitalization and digital compression technology will enable the delivery of as many as 6 channels within the same bandwidth as is being presently used for one channel. Importantly, digitalization will also facilitate the simultaneous carriage of multiple audio channels along with the same video. This will be most useful in a country like India, which has several regional languages. Digital Audio Broadcasting and satellite delivered radio, which will enable the delivery of hundreds of CD quality audio channels to portable and fixed location radio receivers. Digital Terrestrial Television will make it possible to broadcast multiple. channels within limited bandwidths, so that homes can receive numerous high-quality digital channels directly from their local TV. However this would require the receiver to have special equipment ('set top box'). New technologies in programme production and especially in the "post-production" stage, involve use of computers, new digital equipment and techniques. New developments which make it possible to have smaller, more portable and less expensive terminals for uplinking TV/radio programmes to satellites. Internet and the whole area of broadband multi-media including streaming audio and video are already available here and some countries have already created capacities for broadband Internet. Interactive TV, combining features of traditional broadcast technology with those of the Net are the future possibilities of broadcasting that Prasar Bharati is aspiring for.

To sum up, Prasar Bharati is working on multi-prolonged strategies to be financially self·sufficient and developing a distinct identity as public service broadcaster through quality programming without compromising its basic values it inherited over the years.


Future Developments


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Future Technological Developments and their implications on PSB

Mr. Rainer Welzel Project Manager, FES

Abstract: The speaker correlates technological changes to the change of character of PSB. Future scenario of PSB depends on the future development of Compression Technologies (Analog to. digital, Digital, computerization, Signal compression - MPEG, JPEG. Wavelets) Distribution Technologies (New ways of distributionTerrestrial, satellite, cable, Internet) and Storing Technologies (New ways of storing and handling)

Some examples of the future technologies are computerized radio, Internet radio, Digital TV production & transmission. New storage devices such as: solid state for audio and DVD for video, Wide-band wirelesscommunicationJ Power-line communication and Leos etc.

Following observations are made in the due course of the presentation -Broadcasting will be still around for a while

-Bandwidth will be no issue in future

-Technology will make anything possible

-Media and communication Will be very affordable

-Practically anything is possible

Introduction

We have had some remarkable technological changes in the last 20 years. From analog to digital, from digital to computerization, from signal compression to analog siqnal-to-slqnal compression, MPEG, JPEG and the latest are wavelength. We have consequently new ways of distribution: terrestrial, satellite, cable, Internet. Along with more channels, we have remarkably better quality and much easier access. We have seen the change from terrestrial cable to satellite transmission, which was a remarkable development. Then we had the change from analog to digital, and finally to the computer workstation. We now have computerized radio, Internet radio, digital TV production and transmission. We have new means of storage such as little solidstate chips for audio. First we had the Walkman, the Discman with the CD disk and now we have an MP3 gadget. The new invention that is being developed at the moment, in which the International Telecommunications Union (ITU) is very much involved, is wideband wireless communication, and we also have power line communication. With the wide band communications there may be requirements for LEOS {Low Earth Orbit Satellite}. Let me give you one example. A conventional radio system is the normal analog environment of communication lines and production staff running around carrying tapes and trying to communicate with the stations. This is very expensive in terms of technology and infrastructure, cumbersome in terms of

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54

administration. You need to employ a lot of people (roughly 60-80 persons for one channel) for 24-hour programming. That is an expensive exercise.

Future Digital Technologies

The final development in technology will be - you have computers, but they are interlinked with a central file server. Everybody is linked. Nobody is physically running around. You have a fully computerized broadcasting system. Computerized radio stations now consist of two computers. One is a computer for programming and the other is for transmission. The one that is for programming is also used for administration and finance, which is directly linked to the bank. You can run such stations with a maximum of 5 persons. Initial investments are about US$ 40,000. So all of a sudden, the financial break-even point is much lower than before. Unfortunately, for a television studio we have not yet reached that stage. But the time will come when the investment for technology is marginal and the real thing is the content. So, in the future the content is what counts finanoially, not technologically. Technology will be there. It will be cheaper, capable of doing all kind of things. Let us talk about new forms, where we envisage narrow casting, web casting, web publishing, multimedia, interactive media and last-miles broadcast. Last-miles broadcast means you can transmit a comparatively wideband signal over a comparatively noisy telephone line from the telephone exchange to your home. That can save a lot of investment because the already existing cabling can be used. That naturally goes with video-on-demand. In future, we will not have 100 or more programmes at our doorstep. Currently, we deliver hundreds of programmes at any time of the day to your doorstep crowding all the frequencies - but you can receive only one programme at a time. In future, you will get just a telephone line, a mobile wideband connection or a power line connection. You dial the service provider and download the exact programme you want. We will work in a much more economical way and the whole system will be much cheaper than it is now. Broadcasting as such will be there for a long time. It will never disappear tomorrow for the simple reason that many people 00 not want the television to be interactive. So, certain ways of communication are established and I am quite sure they will be there for quite for a while. One thing is also sure that the development of the market does already provide certain service providers and content providers. This offers some new possibilities: audio and video conferencing, audio and video file transfer, streaming, MPEG 3, merger of publishing news-paper, radio, and TV and data communication, wide band communication. The first two countries have auctioned their frequencies - Britain was first, followed by Germany. Broadcasting will be still around for a while. Bandwidth will be no issue in the future except for mobile communication. Media and communication will be very affordable. The prices are coming down daily. Practically anything is possible but we donot know what to do with it. How do we handle overkill of information, which are affecting our children and our grandchildren?


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What is for the future?

We already have the gigabyte processor; we will have a multi gigabyte processor making computer production and storage equipment extremely fast, versatile and efficient. Naturally they will be more human-like. We are coming very near to the computer translating one language live to another. It means I can have a phone conversation in German with my Japanese friend - he will be speaking in Japanese but I will hear him in German. To make things smaller and smaller, we have the electron transistor. We have some chemical biological chips - they will make terabytes of storage available. So in future, we can throwaway audiotapes, videotapes CD ROMs. We will work on little crystal devices as an enormous storage device. It will not take much time to become a prototype from the lab. The quantum computer: meaning we are using quantum mechanics of atoms and electrons to store information. The first experiment storing about 16,00,000 colours and 3 atoms has been successful. We can expect supercomputers in the near future.

People are working for better interface. We have incredible interfaces with the outside world. We have eyes, ears and our bodies, and the nerves control all these. The first very successful experiments have been carried out where you connect your nerves directly to the computer. In the USA we have the first experiment where pilots in space are directly connected to the control mechanisms on earth. We have come a long way from the days of analog recording and transmission and the mind boggles in envisioning the future.


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Future Developments of PSS: Some reflections

Mr. Robert (Bob) O'Reilly,

Executive Director, Radio Canada International

Abstract: Good programming strategies for PSB are to be incorporated with the technological changes. Public Service Broadcasters need to bring the audience back by devising creative and innovative programmes.

My question to all of you is: how many governments understand and openly favour and support the Public Broadcasting in the world? United Kingdom Government is the godfather of BBC. France Government is certainly very understanding of the power of media and culture. German Government, Indian Government and Government, which is supportive to a certain extent, are the Canadian government, Australian government, and New Zealand government. To a certain extent because as long as there is no criticism of the government, it is perfectly no problem. If you criticize the government too much they cut the budget. It means they understand the real functions of Public broadcasting, They look at it the hand that bites.

Challenges faced by corporation

The biggest challenge of any corporation is the quality of leadership. When I look back at my corporation for the last ten years, we are today asking and answering the questions that we should have asked and answered ten years ago. For better or worse, we did not. We suffered the consequences. We lacked vision. We lacked understanding of how the market place is changing.

The second challenge that we have with us is that we are lousy communicators. Our business is communication. We are probably worst than others. Public Broadcasters are even worse than private broadcasters. The private broadcasters get up and hassled in the streets for advertising, programme support and sponsorships. The private broadcasters are talking to the political people all the time. They are not just talking about themselves. They are also talking about us. Most of the time, it is not very good. If you wish to operate in the market place and look for advertising and sponsorship we have to be better communicators. We have to tell the politicians why we deserve to exist. Why we deserve and merit their support.

Financing is the third major challenge. We all got different problems. Look at the BBC. They just got their license fee renewed plus inflation for the next five years period. They will reduce administrative infrastructure expenditure from 24% to 14%. Some people may be laid off in this process. But in comparison to BBC, we live in a different world.

The fourth area however is that we run a corporation that got both Radio and Television. We have to figure out as management groups how we can use more effectively the technological tools that are being made available to reduce


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infrastructure. For example, do we need two finance department or human resources department? In 1990 in my corporation we have 29 collective agreements, now we have five. It makes us easier to administer.

What is the vision? In an area, where we don't enjoy collectively strong political understanding or support with the exception of India and few other countries where they enjoy strong public support. In an era, we don't have any money to sustain everything you are doing. The tough questions we have to ask ourselves:

Can we continue to afford to accommodate both National, regional and local programmes at the same time? Can we afford to do that? In an era, where transnational and global broadcasters are coming in how does that change your market place? That does not mean abandoning things that private broadcasters in a country can be able to do it. We need to make realistic choices what you can afford to do. These realistic choices and the questions we should have asked ten years ago that we asking now.

We need to produce more specialized programmes. But the Internet raises the other chances to the broadcasters. Great potential, every one says. We are not quite sure how much. How much it helps you to rerun and repackage in the form of new medium? How much it costs to do that?

The most fundamental problem for an established public broadcaster adopting a new media is that how it is going to handle them. Is it an extension of your traditional business or a fresh beginning? Certainly it got started in CSC. The Radio has both Internet sites for in English and French. The Television had also set up Internet site in English and French. CSC had tapped the new medium and overlaid into the traditional structure.

How do we handle our assets? There is a mention about large real state holder. In Canada, we are worst in managing the large real state holder. How do we handle our transmission and distribution? We do have number projects ongoing in CBC. They will be reporting within six months. Our view is that we have probably three years and we cannot turn our ship, we may no longer exist. We are quite serious about that. In Television, CSC will disappear. For Radio, it would have a different thing because radio is very close to public. So, politicians have fear to meddle around with radio. Our challenge is a short-term challenge to turn a big old ship around. We have 12,000 employees in 1990. We are doing more today with 7000 employees with 40% less money. We will do more in future.

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Requirements for Development of PSB in the 21st Century

Mr. Patrick Renault

Regional Audiovisual Attache, French Embassy, Singapore

Abstract: The speaker presents five important requirements for development of PSB in the 21st Century. They are

• PSB is irreplaceable

• PSB has to evolve and develop entertain abilities

• PSB needs to have the means to accede to publicity without for that matter giving up public money

• The future of the public service broadcasting depend on adoption of new technologies

PSB is Irreplaceable

This evidence is very strong in countries of high living standards and culture, but even more so in developing countries where PSB's main role is of greater purpose. In Western Countries, Europe in particular, public service broadcasting was for a long time, the only form of Radio and Television. Now, for more than ten years it has to fight against the rapid development of private operators, some of them offering a wide range of very attractive programmes and the arrival of the cable and digital bouquets

Their monopoly, then their recently questioned supremacy, enables PSB to develop all sorts of technological inventions. An important asset, especially in the radio field, which it has managed to keep and enrich, is the excellency in radio sound recording. Technical quality of Radio and TV teams is still often on the public service's side.

Against voluntary fierce private competition, the public service has also managed to adapt itself in our countries, It is no longer "monolithic", personifying through one radio station and one TV channel with" What is good for the public", the monopoly of culture and good taste and the "the politically correct" obligation. It has, managed, what I would call, scale policy,providing a large offer, multiplying the style of programmes within the same grid, but also multiplying frequencies and channels, each one with its own style. Resulting in France for example, three public terrestrial channels represent 45% of the TV market share. For the radios, Radio France has multiplied the concepts: France Inter (Music and News), France Musique (Classical Music), France culture, local radios, radios for the traffic circulation, for the aged, for teen-agers. The result being that the block of public radio is not far from reaching 30% of the audience, against big private networks with European capital like RTI, music network stations for the young and multitudes of radios, associative and private.


59

Public Service Broadcasting in these countries therefore managed to evolve, becoming more attractive and to a certain extent " Learning" from private TV programme dynamism. This Is one of the major reasons for its durability.

In developing countries, the necessity for the Public Service, as we will see, is even more evident. Indeed, the PSB are the only media that have a clear mission to provide information, culture, education and also, in certain countries, of moral and religious values, against the surge of new local and transborder operators

Radio, more particularly in these countries, has basic function of proximity for ethnic groups with their own language and also in the context of isolation due to insularity and nature, sometimes hostile or tormented. Its low reception code and generally the "network" that the public service broadcasting has equipped itself with, make it federating media

Finally, unlike western countries where an extra channel or an extra cultural channel is no longer a luxury, the situation in developing countries is radically different. If the public service media disappears, so will the unique guarantee of education, culture, legacy and history. It is a piece of a nation's memory that goes, necessary, as we all know, for creativity. PSB is all that.

The Entertaining PSB

The PSB has to evolve and develop "entertainment" abilities. PSB had managed to develop, in a number of countries, to set a tone, programmes and sometimes even complete stations dedicated to the "entertainment". They managed to do so, but not without difficulty. Till today, there are strong defenders ofthe PSB that cry out on the PSB scenes or programmes whenever appearing that they esteem disturbing.

Needless to say that there is no reason for PSB to fall for easiness or even vulgarity, sometimes found in private media. The public service, even in its form of "light" entertainment, is not sentenced to "quiz" stupid games and pitiful dramas.

Short term therefore, I sincerely think that the PSB of neighboring countries will have to become attractive by resorting to a well balanced entertainment: initially not to have the monopoly of serious programmes, certainly very enriching, but. at a high dose, rather indigent, finally, because they have to seduce the younger audience and not confine themselves with the more mature or older audience. If in certain countries, public service radio or TV stations are satisfied with a mature general audience, needless to say that they will inevitably be victim of biological evidence: their auditors and viewers will die sooner! Integrating Young adults in its audience is rejuvenating and preserves from ageing. Today, however the PSB's average audiences are, through out the world are the oldest. But the question is how can they achieve this more varied, attractive and younger prograrnmation?

The PSB needs to have the means to accede to publicity without, for that matter, giving up public money. Publicity and its variations, including sponsoring, do not have only drawbacks. They bring complementary resources. They may also an attractive


60

element of the programme. In an increasing number of countries, publicity styles calling for graphic and concept creativity are developing. The use of publicity has to be controlled in its form and volume: One may at the beginning, favour only collective publicity, without brand names, rather for a type of product. Finally above all, access given to publicity must not for that matter, cause the total disappearance of public funding. This debate has taken place in a number of countries, including France. There is a basic cleavage which many of us oppose: "Public Funding for PSB and Private Funding for the private channels" or if the PSB benefits from Publicity income, even limited, it has to give up public funding". The solution here again is medial "in media veritas" the good old Romans used to say.

Adapted specifications

Adapted specifications must be applied to the two media categories, public and private. First of all, would public service broadcasting, through legislation, accede to publicity, it has to be specified, quotas have to be fixed and supervised by adapting specifications.

In numerous European countries, private radios and TV should also be subject to "specifications". Radios stations and at least terrestrial televisions are a part of public space, they use it, but it does not belong to them: They need a license and, a "concession" to run their programmes. In exchange for this concession, we consider these private radio and television stations must also respect certain duties and speclficatlons with regard to the contents, though less important than those asked to the PSB. At a lower level, guarantees of content should also be required, by law and then by regulation bodies, to cable channels and digital platform operators.

Modulations of the rights and duties each one, public or private, within the broadcasting space, will bring an extra safeguard to fair competition .It is the duty of public channel, in particular, to lobby so that private channels are not free of constraints, obligations and control. This is one of the conditions to the survival of PSB in the 21st century.

The New Technologies

The Internet and new technologies are also the future of Public service broadcasting. Today, the perspectives of digitization (through satellite and now terrestrial) and the general development of the Internet are additional advantages for the PSB provided, once again the government don't leave the market forces sole rules terrestrial digitization, in any case, will be the real opportunity of expansion of PSB, it has public authorities on its side, especially when allocating frequencies.

The techniques have two major characteristics for the renewal and modernization of PSB: They address the youngest public directly, which is by definition the first interest in new technologies, thus bringing naturally a greater audience to the PSB. They make it possible to provide instant planetary broadcasting.of knowledge, information and entertainment


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However, as always in times of great changes. marketforces basically want to control profitable sectors leaving others aside. Education and culture are fortunately fields, which do not benefit from decision of the market forces alone. Vigilance is therefore necessary in all our countries and within organizations such as WTO. Education, culture and the diversity of the media are at that price.


Recommendations


6S

Asia-Pacific Institute for Broadcasting Development Meeting on

Legal, Financial and Administrative Aspects of Public Service Broadcasting June 26-28,2000

Singapore

Recommendations

The meeting on Legal, Financial and Administrative Aspects of Public Service Broadcasting was held from June 26-28,2000 at Grand Plaza Park Royal Hotel, Singapore. It was organized by the Asia-Pacific Institute for Broadcasting Development (AIBD) in collaboration with Singapore Broadcasting Authority and with the support from the Friedrich Ebert Stiftung (FES).

The meeting was attended by 24 delegates and speakers from Singapore, Germany, Philippines, Pakistan, India, Malaysia, Iran, Fiji, Indonesia, Canada, EBU, AMIC and AlSO secretariat. The meeting endorsed the recommendations made at the 2nd International Conference and Europe-Asia-Pacific Dialogue on Public Service Broadcasting in the Philippines. The meeting also took note of the fact that a lot of work needs to be done in updating policy makers and drawing their attention to the idea and concept of Public Service Broadcasting. The meeting came up with the following recommendations.

1. AISD is requested to continue its endeavors to publicize the idea and concept of PSB in the region.

2. AISD is requested to publicise the idea of PSS to all countries in the region by conducting an in-country meeting/seminar in each country to which incountry host will invite policy makers, polttlcians, practitioners and academics. The speakers at this seminar could be invited from outside the country

3. The social, cultural and economic situation is different in each country The meeting felt that possibly, it would be appropriate if member countries are provided with complete information and background. As for the draft model on legal, financial and administrative aspects PSB, it seems that, this has to be redrafted and the following should be taken into account.

• Philosophical Overview on Public Service Broadcasting

• Creation of systems (Public & Private)

• Regulatory mechanism to system- Technical and Content

• Public Broadcaster Objectives and definition (Structure of organization)

• Three potential and practical models for ministers and policy makers to consider viz. NHK, EU and Canada supported with diagrammatic Representations of country system of broadcasting and broadcasting system


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4. The abovementioned models don't contain information about the transformation from state-run broadcasting organization to public service broadcasting organizations. Therefore, it was further recommended to look for possible examples in the region such as Prasar Sharati in India.

5. The PSB document may be prefaced using EBU definition of Public Service Broadcasting in the EBU document 1( 97) of the EBU .legal committee as preamble


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