Spain cuts RTVE's ads.(World)(Radio Television Espanola)(Brief article)

Spanish Prime Minister Jose Luis Rodriguez Zapatero has agreed to dramatically reduce advertising on two of pubcaster Radio Television Espanola's (RTVE) channels, TVE1 and TVE2, over the next year. His promise comes after cries of protest from UTECA, the lobby representing private broadcasters, which insisted that Zapatero's policy to cut RTVE's advertising allotment from 11 minutes to 10 minutes per hour last year was not a sufficient measure.

Zapatero has not specified just how much advertising he plans to do away with, but UTECA's Secretary General Jorge Del Corral said that their aim is to eliminate all ads during primetime on the public channels this year and in all day-parts in the next 12 to 13 months. The action will be part of the upcoming Spanish Audiovisual Law, which is pending approval by Spanish parliament.

Currently, RTVE uses a mixed financing model that uses a combination of ads and state subsidies, with advertising accounting for 40.6 percent of total revenue. This year it is expected that advertising will account for 447 million euro. The Spanish government plans to compensate for the revenue that will be lost by taxing three percent of commercial (private) TV station and network revenue, which is expected to bring in 140 million euro per year. It will also levy a 0.9 percent tax on fixed and cellular telecoms, providing a projected 240 million euro per year. A portion of the tax on electromagnetic frequencies (TV, radio, cellular, etc.) will furnish another 240 million euro to RTVE. In addition, the state will contribute 550 million euro in order for RTVE meets its yearly balance of 1.2 billion euro.

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