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crowdfunding public service media

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Hacking Public Service Media Funding model through Civic Crowdfunding?
Tiziano Bonini - Università Iulm di Milano ([email protected]) @tbonini Ivana Pais - Università Cattolica di Milano ([email protected]) @ivanapais
[email protected] Working Group “PSM’s Redefined Remit in the Networked Society” Antwerp, 23 September 2016
Research question: Is it possible to reform PSM licence fee model through the dynamics of civic crowdfunding, allowing citizens to decide which programs they may invest a (20%) quota in? How citizens would react?
The proposed scenario rules of the "game"
In the case of Italy that we have analyzed, 20% of the current licence fee corresponds to 22.70 Euros, rounded down to 20 Euros in order to facilitate distribution. Citizens can choose to invest 1, 5, 10 or 20 Euros in one or more programmes. Each of these amounts corresponds to a different reward, as it does on all existing digital crowdfunding platforms. In order to participate in this plan of allocating resources, the citizen should pay a tax of 5 Euros in addition to the current licence fee. This would be necessary to cover the management costs of the new financing model, and to demonstrate the citizen’s will to take on the responsibility of making economic choices that can shift the productive balances of a large media company.
1 €: digital thanks on the programme’s website as compensation 5 €: donors will be mentioned in the ending titles of a TV programme or, for a radio programme, a special live thanks from the hosts to one supporter at the end of every episode 10 €: the citizens/supporters will become part of the community of the programme they invested in. They will receive a newsletter that updates them on the content of the episodes broadcast, with links to watch or listen to them again. 20 €: take part in a community of the programmes’ most loyal supporters. They will receive a weekly newsletter asking for your opinion and comments about past and future episodes. The programme editors will invite a member of this community to join a newsroom session and take part to the recordings session or to the live broadcasting.
methodology
After hypothesising our model and establishing its operating rules, we decided to make a first exploratory test on a limited number of Italian Internet users and tax payers through an online questionnaire between the months of November 2014 and February 2015, exactly when citizens are called to pay the RAI licence fee. We opened a Facebook page to promote the circulation of the questionnaire and collect comments. A total of 639 people responded to our online survey. We compared our sample to the overall population of Internet users in the country, as described by official statistics (ISTAT Indagine Multiscopo, 2014). We considered the following background characteristics: sex; level of education (upper secondary or less versus tertiary); age (four classes: less than 25; 25-34; 35-54; 55 or more); macro-region (North versus Centre-South). Among our respondents, we selected 495 records displaying valid answers to all the characteristics listed above. Comparing this subsample with the national ISTAT statistics, we detected that the cases in our dataset over-represent the tertiary scholar degree, more strongly in Northern regions, and that they under-represent lower-educated people, particularly among young people in Southern regions. In order to (at least partially) correct these biases, all the analyses displayed in this paper were compared to the ISTAT statistics and accordingly weighted to correct our sample’s under/over-representations.
Findings
How many Italian citizens pay the licence fee
Yes: 70,2%
No: 29,8%
licence fee evasion  rate in Italy (source: Rai, 2014):
27%
How you would like Italian public service media (Rai) to be funded?
licence fee-only 22,9%
tax in the electricity bill (recently adopted in 2016) 21,8%
direct funds from the State  14,2%
current model (licence fee + advertising) 18,4%
voluntary donations (US model) 22,6%
10
0
3,95
5,9
Evaluate Rai content in a scale from 0 (very bad) to 10 (excellent)
tv
radio
respondents who pay the licence fee
respondents who evade the licence fee
2,9
5,61
Which is your favourite Rai TV channel? (first 5 results)
Rai 3    25,4%
Rai Storia    17,5%
Rai 5    14,3%
Rai Movie    11,2%
Rai News    10,9%
None    7,2%
Which is your favourite Rai Radio channel? (first 3 results)
Radio2    37,7%
Radio3    28,4%
Radio1    9,5%
None    18,3%
How much you would be available to pay for the current content produced by Rai?
100
0
number of respondents
0€
30€
60€
90€
113,5€
130€
160€
190€
83% would like to pay LESS 10% as it is now 7% would be available to spend MORE
respondents who pay the licence fee
respondents who evade the licence fee
Would you accept to pay 5 more euros (113,5 + 5 = 118,5 euro) in order to decide where to invest the 20% of the licence fee you have to pay?
Sì 70%
No 30%
83% of the sample (410 people) would like to spend LESS than 113,5 € but, 70% of the same sample (346 people) would be available to spend MORE (118,5 €) if only it would have the opportunity to decide where to invest 20% of its licence fee.
> participation = > availability to pay the licence fee
available to pay
not available to pay
willingness to pay rises progressively with an increase in income. It reaches the majority very early, with incomes between 500-1000 €
Willingness to pay the "extended" licence fee (118,5 euros) related to income
<500 €
500-1000 €
1000-1500 €
1500-2000 €
2000-2500 €
>2500 €
68%
44%
29%
26%
21%
23%
32%
56%
71%
74%
81%
77%
Willingness to pay the "extended licence fee (118,5 euros) among people already paying the licence fee and people evading it
people already paying
people evading it
72%
55%
Willingness to pay the "extended" version of the licence fee is higher among people who are already paying the current licence fee than among people who are evading it. It is notable that also among those who are currently evading the licence fee, the majority (55%) would be available to pay the "new" licence fee.
willingness to pay the "extended" licence fee related to education
graduated
high school
74,6%
68%
willingness to pay the "extended" licence fee related to North/Center-South divisions
Center-South
North
76,4%
63,6%
willingness to pay related to the most appreciated TV channel
Rai 1
Rai 2
Rai 3
Rai 4
Rai 5
Rai News
Rai Storia
Rai Movie
62%
70%
66%
52%
86%
86%
66%
84%
willingness to pay the "extended" licence fee (113,5 + 5 euros) varies as a function of the most appreciated TV channel: who prefers thematic channels (Rai 5, Rai News, Rai Storia, Rai Movie) is more available to pay than those who prefer generalist channels (Rai 1, Rai 2, Rai 3)
willingness to pay related to the most appreciated Radio channel
Radio1
Radio2
Radio3
Isoradio
59%
75%
82%
60%
Where the 20 euros would go on average - TV shows
SuperQuark
Ulisse
L'Albero Azzurro
Report
Presa Diretta
Doc3
Sconosciuti
La Grande Storia
Rai Storia
Gate C
nuovo prog. di approf. politico
nuovo prog. di documentari
nuovo prog. di giornal. investig.
1,27 €
0,97 €
0,59 €
3,19 €
1,08 €
0,72 €
0,36 €
1,08 €
1,16 €
0,39 €
0,94 €
1,28 €
0,60 €
average investment on TV shows: 1,04 euros
(investigative journalism tv show
(science and technology tv show)
SuperQuark
Ulisse
L'Albero Azzurro
Report
Presa Diretta
Doc3
Sconosciuti
La Grande Storia
Rai Storia
Gate C
new show about politics
new show of documentaries
new investigative journalism show
127.000/1.270.000 €
97.000/970.000 €
59.000/590.000 €
319.000/3.190.000 €
108.000/1.080.000 €
72.000/720.000 €
36.000/360.000 €
108.000/1.080.000 €
116.000/1.160.000 €
39.000/390.000 €
94.000/940.000 €
128.000/1.280.000 €
60.000/600.000 €
increased budget available for the TV shows included in the crowdfunding model if 100.000/1.000.000 citizens join to the civic crowdfunding model
total amount of budget available if 100.000 citizens join the model:
total amount of budget available if 1.000.000 citizens join the model:
1,36 millions € (0,07% of the total income from licence fee; RAI 2013)
13,6 millions € (0,7% of the total income from licence fee; RAI 2013)
Where the 20 euros would go on average - Radio shows
Radio Anch'io
Caterpillar
Radio3 Mondo
Tutta la città ne parla
Tre Soldi
Radio3 Scienza
new storytelling show
new current affairs show
new fiction series
0,12 €
1,15 €
0,57 €
0,31 €
0,29 €
0,50 €
1,30 €
0,78 €
1,17 €
average investments on radio shows: 0,68 euros
Radio Anch'io
Caterpillar
Radio3 Mondo
Tutta la città ne parla
Tre Soldi
Radio3 Scienza
Nuovo prog. di Storytelling
Nuovo talk show attualità
Nuovo prog. di fiction
12.000/120.000 €
115.000/1.150.000 €
57.000/570.000 €
31.000/310.000 €
29.000/290.000 €
50.000/500.000 €
130.000/1.300.000 €
78.000/780.000 €
117.000/1.170.000 €
increased budget available for the Radio shows included in the crowdfunding model if 100.000/1.000.000 citizens join to the civic crowdfunding model
total amount of budget available if 100.000 citizens join the model:
619.000 € (0,035% of the total income from licence fee; RAI 2013)
total amount of budget available if 1.000.000 citizens join the model:
6.190.000 € (0,35% of the total income from licence fee; RAI 2013)
if 100.000 people agree to join this model, 1,98 millions € (0,11% of the total income from licence fee; RAI 2013) would shift toward the budget of the 22 radio and tv shows selected to be included in the model
scenario #1
scenario #2
if 1.000.000 people agree to join this model, 19,8 millions € (1,1% of the total income from licence fee; RAI 2013) would shift toward the budget of the 22 radio and tv shows selected to be included in the model
How much you will be available to donate AFTER paying the "extended" licence fee?
0 €
1-10 €
11-20 €
21-50 €
51-100 €
101-200 €
61
56
78
66
18
9
number of respondents
Even more interesting was the fact that 57.8% (200 people) among those respondents who accepted to pay more (346 respondents out of 495) would be willing to donate to the Italian PSM an avarage of 22,8 euros more, AFTER paying the "extended" licence fee.