The Portuguese government has announced a gradual phasing out of advertising on RTP television channels, aiming for a completely ad-free public broadcaster by 2027.This decision, which has long been sought by private operators, is part of the government’s Action Plan for Social Communication that aims to address the challenges facing the public broadcaster.To achieve this goal, the government has outlined a three-year timeline. Advertising time will be reduced by two minutes per hour in 2025 and 2026. The lost revenue from advertising will be offset by promotional spaces and cultural events.The elimination of advertising is expected to cost the government €20 million, with an estimated annual revenue loss for RTP of €6.6 million over the three-year period. However, the government has clarified that it will not increase the Audiovisual Contribution rate, a tax used to fund public broadcasting. RTP receives approximately €180 million annually from the audiovisual contribution,In addition to the ad-free initiative, the government is implementing a reorganisation and modernisation plan for RTP, with a maximum cost of €19.9 million. This plan includes voluntary departures and digitalisation efforts.The government’s overall aim is to transform RTP into a public service broadcaster that is less reliant on commercial advertising and better able to serve the needs of Portuguese audiences.However, the plan has faced criticism from some who argue that it will lead to a decline in RTP’s audience and revenue.Ten unions representing RTP workers criticise the government for its lack of a compensation plan for RTP’s real revenue losses, noting that the state owes the broadcaster €14 million and that RTP has been renting out its technical resources to private operators.The unions have scheduled a meeting with the RTP Board of Directors to discuss the restructuring plan and employee layoffs. They have also requested meetings with the supervisory authority and parliamentary groups to advocate for their position.RTP recorded a net profit of €2.5 million in 2023, while advertising revenue for the year amounted to €21.7 million.
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