Committee Reports::Report No. 18 - Radio Telefís Éireann::07 May, 1981::Appendix


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Committee Reports > List of Committees > Joint > 1981 > Committee on State Sponsored Bodies > Report No. 18 - Radio Telefís Éireann

APPENDIX 12 MEMORANDUM FROM RADIO TELEFÍS ÉIREANN—“STRUMPET CITY”

RTE Television operates a Direct Programme Cost system which includes such items as rights to original work; adaptation costs; cast, extra and artistes’ fees; design and settings; film stock and related production consumables; composition and performance of musical score; travel, subsistence and overtime of production team; laboratory costs and provision of a master negative and sound track and transmission print. This system does not take into account staff salaries nor any apportionment of general RTE overheads.

(1)On this basis, the Direct Programme Cost budget for STRUMPET CITY amounted to £345,500 for seven, hour-long episodes.

(2)Gross confirmed sales to date have amounted to £353,020. In addition, a contract for the United States is being concluded which will yield a further £60,000, bringing the total to £413,020 by mid-1981.

(3)There continues to be considerable international interest in the product and when some further negotiations have been concluded, it is anticipated that the net profit on sales will exceed £300,000 by the year’s end (i.e. net of residuals, cost of sales promotion and commission to the RTE Sales Agent.)

Note:

(a)Had the STRUMPET CITY project not been undertaken, seven hours of more modest drama, with limited sales potential, would have absorbed £150,000 in Direct Programme Costs.

(b)STRUMPET CITY, being a quality production, is durable with the audience. Following its original transmission, it had an immediate repeat transmission and will be aired again, at an appropriate time, within the next year.

(c)A production of this kind is not a wasting asset. Across a number of years it will continue to contribute to sales revenue and will bear repeating on other services, as well as on the RTE network.

(d)The success of this venture, in penetrating world markets, has stimulated interest in RTE production, in general, and the satisfactory volume of general sales is a direct result of this.

May 1981