In a period of unprecedented deflation in the media marketplace RTÉ has taken a decision to fix their pricing in order to stabilise the TV market and stem the loss of revenue they have been experiencing since July 2008.

While we agree that the net impact of this move by RTÉ is that the TV marketplace will once again see some stability in pricing, the impact on clients’ business is very much dependent on how agencies predicted pricing in the first place.  

Each year agencies predict the cost of RTÉ airtime based on the supply (viewing) and demand (money). So for example if an agency predicted that RTÉ would see slight inflation in the second half of 2009 then their clients will benefit from cost savings.  

Right now all deals are being re-examined in light of this new development, and the likelihood is that RTE will have a stormy few months ahead. The expectation is that some advertisers will opt to pull airtime from the State broadcaster in the short-term.  

If this move by RTÉ is successful it will mean that the quality and quantity of home-produced programming on the station is kept to the high standard we have come to expect from the state broadcaster.