Yle's new strategy outlines the policy for the next few years
The new Yle will serve all Finns through its wide-ranging programme offering and high-quality services. Yle's objective is to create value for society and secure the best know-how in the media sector. The new financing model ensures for the company an opportunity to develop into a world-class public service.
Yle's Board of Directors has approved a new strategy and objectives for 2013–2015, as well as the budget for 2013. The Administrative Council will confirm the strategy on 11 December. Yle's new objectives derive from the Act on Yleisradio Oy, which determines a comprehensive mandate for Yle. The amended legislation and the new financing model will become effective from the beginning of 2013.
“Yle's role includes strengthening culture and education and promoting equality and democracy in the media sector in the digital age. Our core mission is to strengthen Finnish society by providing everyone with information, education, insights and experiences. Yle's content touches all Finns – even those outside the social debate,” says Ilkka Kantola, MP, Chairman of Yle's Administrative Council.
Kari Neilimo, Chairman of Yle's Board of Directors, emphasises that Yle's most important objective is to improve further the service it provides to Finns: “Yle aims to have all Finns use its services within a year. In comparison with the rest of Europe, Yle already has a good relationship with its audience. However, there are still target groups and minorities which must be provided with a better service. We want to be an Yle for all.”
A year ago, Yle's strategic customer objective was determined as a numerical sequence of 100–90–80. This means that 100% of the Finns – everyone – will use Yle's services within a year, 90% will find them interesting and 80% will use the services every day.
“We refine further the value Yle creates for society,” says Yle's Chief Executive Officer Lauri Kivinen. “We cherish social high-quality journalism and enrich and record Finnish culture. We add to the mental capital of Finns.”
New objectives already reflected in the next year's programme
A significant number of Yle's programmes will remain unchanged. Finns will still see and hear their familiar programmes on the familiar channels. Yle's new policy outlines will become visible next year when the company increases its cultural programming and focuses strongly on programmes for children and young people. There will be a tour of concerts for children in the autumn, as well as other music programmes and drama.
In cooperation with companies and various social actors, Yle will launch a major cross-media project against youth unemployment in 2013.
Culture and the provision of services for all will be visible on the television screen when Yle and the Finnish National Theatre launch drama cooperation in 2013. The concert programme of the Finnish Radio Symphony Orchestra (FRSO) will also include several Finnish premieres, which will be broadcast on television by Yle.
Yle will increase its cooperation with Finnish production companies. The provision of benefit and value for Finns also includes partnerships and new kinds of collaboration with educational institutions and makers of culture.
“We wish to promote the vitality and vigour of the creative sector, as well as Finnish production activities. This will create jobs in the creative industry in different parts of the country,” says Kivinen.
“We will act openly and listen with a sensitive ear to Finns. We will ensure that Yle's material can be easily found among the ever-increasing offering of electronic media and the expanding range of services,” Kivinen promises. This goes hand in hand with media education, particularly among the young.
Yle aims to become a world-class player
Yle aims to provide a world-class public service.
“Yle is owned by the Finnish people, and it must aim to offer the best possible content and service. We want to be a high-quality company on the global scale in every respect,” Kivinen states.
Developing and redesigning media-sector know-how is emphasised as one of Yle's key objectives.
“This effort, which is already ongoing, is necessary because of the radical transformation of the media industry. At our best we can lead the reformation of the entire industry and create Finnish formats for growing export markets. We want to export Finnish creativity to the world,” Kivinen says.
According to Kivinen, there is currently a good balance between commercial media and public service in Finland. “It is valuable to have a diverse media sector. This helps to ensure a wide scope for Finnish content production. The broad definition of Yle's mission and the financing solution demonstrate that there is a strong political will in Finland to secure a wide spectrum of services as well as domestic content production," Kivinen states.
Yle measures the development of the audience relationship and customership in several ways. The achievement of the key policy objectives is monitored systematically with the help of surveys and evaluations.
Financing solution brings continuity
Yle's operations in 2013 have been planned on the basis of the new financing model, which will take effect on 1 January. In 2013, Yle's tax revenue will amount to EUR 500 million, for which the company will pay value added tax. After VAT, Yle will have EUR 455 million for financing its operations. In addition, Yle's sales and leasing income related to services and programme activities total almost EUR 13 million.
About two thirds of Yle's expenses are related to the work of in-house personnel as well as work purchased from independent production companies and other service providers. Expenses have been budgeted against the income level in such a manner that the company's targeted profit for 2013 is EUR 4.7 million. This will allow the company to make a corresponding loss in 2014, when Yle's channels will show several major sports events, for example.
Because of the change in the financing model, Yle needs to take out loans totalling approximately EUR 80 million, since the accrual schedule of the tax income is different from that of television licence fees. Loan management (interest and instalments) will take up approximately EUR 10 million of the available funds per year.
