Lisbon, Oct. 8, 2024 (Lusa) - The president of Portugal's state broadcaster RTP said on Tuesday that the end of advertising "means a loss of relevance" for the company and recalled that it has often served as a stabiliser in the advertising market.
Nicolau Santos was speaking at the conference ‘The Future of the Media’, organised by Impresa, Media Capital, Medialivre, Público and Renascença, which is taking place at the Pestana Palace in Lisbon.
Asked if he was worried about RTP's financial sustainability, with the end of commercial advertising in 2027, Nicolau Santos said: ‘Of course it is worrying’.
"Just to give you an idea, we have an investment plan of around €17 million for modernisation over the next two years, for the voluntary redundancy plan, if it reaches this figure, it will be €20 million and (...) it will be €7 million for two less minutes of advertising," he said.
In other words, "at the moment we have €27 million that we need to cover with bank financing, with other types of support," continued Nicolau Santos, who reiterated the need for media companies to get along and work together, because it's not RTP that's threatening the private sector, but rather the big international platforms.
"Private operators know very well that RTP has often served as a stabiliser in the advertising market," he stressed.
And he warned: "RTP's exit from the advertising market also means a loss of relevance for RTP," regardless of whether solvency is achieved and having a "weaker" public service is also having "a weaker democracy".
In his speech, Nicolau Santos also said that he expected "a little more charity for RTP" from Impresa's CEO, Francisco Pedro Balsemão, when he was asked if the exit from the advertising market was only for the RTP1 channel or also for digital.
Nicolau Santos pointed out to Francisco Pedro Balsemão that "without Google and Facebook, digital advertising in Portugal is worth €176 million".
"How much of this 176 million does RTP have? 1.3 million! Don't say that this is what's affecting the private sector in the digital sector," he added.
RTP will lose advertising in 2027, with a reduction in annual revenue over the next three years of approximately €6.6 million, according to the media plan to which Lusa had access.
The end of advertising on RTP, which will be a gradual process, is one of the 30 measures in the Media Action Plan that will be presented today by the minister in charge, Pedro Duarte, and one of the four relating to the company.
"Over the next three years, RTP's television channels will gradually eliminate commercial advertising from their schedules." At the same time, the reduction in time dedicated to commercial advertising should be compensated for with promotional slots and cultural events, according to the plan.
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Lusa
