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Financial studies company Moody's believes Spain's national public broadcaster Radio Televisión Española (RTVE) will need "at least" €500 million a year in government subsidies to be competitive.
According to Moody's analysts the more fragmented TV market, with two national private competitors Sogecable's Cuatro and Imagina group's laSexta and also the 14 new DTT national channels will spell bad news for the public broadcaster.
Moody's analysts also say RTVE's activities are at a loss every year due to a company model responding more to political needs than to its own benefits. Also the company says some of RTVE's activities are not at all profitable "by nature" such as national public radio station Radio Nacional de España (RNE) which does not accept advertising. Other high cost activities include RTVE's regional centres, the Orchestra and Choir of RTVE and the Official Radio and Television Institute.
Finally Moody's considers the fixed costs structure of RTVE is "very high" and even without its historical debt RTVE's costs are high compared with those of private national channels.
According to Moody's analysts the more fragmented TV market, with two national private competitors Sogecable's Cuatro and Imagina group's laSexta and also the 14 new DTT national channels will spell bad news for the public broadcaster.
Moody's analysts also say RTVE's activities are at a loss every year due to a company model responding more to political needs than to its own benefits. Also the company says some of RTVE's activities are not at all profitable "by nature" such as national public radio station Radio Nacional de España (RNE) which does not accept advertising. Other high cost activities include RTVE's regional centres, the Orchestra and Choir of RTVE and the Official Radio and Television Institute.
Finally Moody's considers the fixed costs structure of RTVE is "very high" and even without its historical debt RTVE's costs are high compared with those of private national channels.