Broadcasting in Austria – will the state soon plug the ORF’s financial hole? – News
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In the search for a new financing model, Austria’s largest media company can only throw its high level of credibility into the balance.
The financial hole is unexpected and the situation at ORF is actually dramatic, says media journalist Harald Fidler from the Viennese daily newspaper “Standard”: “The problem is that the eight percent fee increase calculated for five years will be eaten up by inflation in 2022.”
Up to 130 million euros a year are missing from the ORF box office, more than a tenth of the previous turnover. The causes are sharply increased energy costs and advertising failures.
Fewer paying customers
But the number of fee payers is also falling because fewer and fewer people have a TV or radio. According to the law, the ORF may only charge for devices that are ready to receive, but not for streaming use. Anyone who also consumes ORF by mobile phone does so free of charge. Many young people in particular do not pay a fee.
In the summer, the constitutional court judged the situation to be unjust and gave politicians the task of reorganizing ORF funding by the end of 2023. Fidler estimates that this will probably result in budget financing or an extended equipment levy.
He doesn’t think the latter is wise, as it would result in more unpopular house or apartment inspection visits by the fee information service, the GIS. A general household fee, as in Switzerland, is also not very popular because it would affect those who have not paid anything so far. There is also the direct financing of the ORF via the state budget with taxpayers’ money. A system that France is currently implementing.
Could the ORF slim down?
Does the ORF also have savings potential? Fidler from the left-liberal “Standard” considers this a worthwhile discussion: “Everything that you do should be questioned in an overall concept.” For example, does the ORF need four TV channels, twelve radio programs, a symphony orchestra and nine state studios, i.e. one for each state?
The power of politics
The state studios in particular are also repeatedly suspected of being far too dependent on the respective state government. That’s something, says Fidler. For example, the state governor is heard in advance by the ORF general director when it comes to managing the state studio.
It is not a say, but a right to be heard, which is also recorded. In general, the political influence on the ORF is gross and at least two thirds of the board of trustees as the highest decision-making body of the ORF are politically oriented.
At least two-thirds of the Board of Trustees, the ORF’s highest decision-making body, are politically affiliated: the federal government, the federal states, and political parties.
How far the influence of politics on the ORF can go was shown a few weeks ago by private chats that became public. The right-wing national ex-vice chancellor Strache intervened with a well-known ORF editor-in-chief to take action against programs or journalists. “Friendliness” or “Habbage”, that’s what Austria means.
Credibility as the greatest asset
So it’s almost a miracle that this has hardly affected the ORF program so far. In this regard, Fidler refers to the many ORF journalists who nevertheless report critically and independently on a daily basis.
The ORF WILL be able to assert this high level of credibility in its search for new funding. It remains to be seen whether this will close the financial gap. A major downsizing at Austria’s largest media company cannot be ruled out.