No advertising in RTVE

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RTVE, the Spanish public television, will finish its current business model in January of 2010. Until now, RTVE had financed the public company by advertising and state subsidies. In the last year, the incomes in advertising was around 700 million Euros, 58% of the total budget.

The first of January RTVE will not broadcast advertising anymore. The public TV will be financed by state subsidies (580 million €) and funds obtained from the companies which use the radio electric space and a percentage of the incomes of the private televisions.

One of the questions now is where the advertising of RTVE will go. Supposedly, the majority of this amount will move to the private televisions, which have been putting pressure on the Government to stop the advertising in the public television. However, other media also want to profit from this decision. Free dailies think that they can gain some of the advertising because their readers are very similar to TV watchers.

Anyway, the decision of the Government getting the ads out of RTVE has produced that all the marketing departments of the media companies are working to get the best advertising contracts in 2010.

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