STATEMENT FROM RT
In response to an article today in the Sunday Independent headlined RT scandal: Whistleblower claims broadcaster gave kickbacks' of 50m to ad agencies', RT says:
In its annual published accounts, RT reports its total commercial revenues net of any commission and volume discounts. RT clarified to the Sunday Independent yesterday that its auditors have reviewed commercial income as part of their annual audit and that no issues have been raised in relation to controls over volume discounts.
RT is satisfied that the manner in which it grants discounts is compliant with competition law.
RT would also like to make the following points:
RT , like many public media organisations across Europe, is dual funded, meaning it relies on income from the licence fee and commercial activity to sustain its public services. Licence fee income represents c. 55% of RT 's total income, with the balance coming from commercial activities. RT 's dual funded model was recently reaffirmed by the Future of Media Commission.
Because RT is dual funded, RT 's commercial activities are restricted by statute and Ministerial decision. RT is permitted approximately half the commercial airtime (on both radio and TV) of independent/commercial broadcasters.
The Broadcasting Act, which is the statutory basis that underpins all of RT 's activities, obliges RT to maximise the commercial opportunities that arise in pursuit of its public service activities. RT is assessed each year by the media regulator (until recently the BAI, now Coimisi n Na Me n) to ensure it is maximising its commercial revenues.
Over 90% of RT 's annual advertising/sponsorship revenues are through negotiated commercial contracts with a number of media buying agencies each year.
Those media agencies buy airtime/advertising space from media organisations, including RT , on behalf of their clients and are paid a commission. RT offers all media buying agencies an industry standard 15% commission.
In addition, through contractual negotiation RT (and other media organisations) agree a volume discount. The volume discount is determined by the volume of spend a given media agency makes with a media organisation each year. Like in many industries, if volumes or orders are larger then greater discounts typically apply.
Given this is a competitive marketplace, volume discounts between media buying agencies and media organisations are commercially sensitive and not disclosed.
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STATEMENT FROM RT 
