"I don't anybody predicted the plunge in licence fee income that followed this," he said.
"It seems to be enduring and it looks like it will present an ongoing problem for RTÉ that people aren't willing to support the organisation by paying the licence fee.
"That's a new element in the equation that nobody had predicted.
"The figures seem to show an increasing number of people are beginning to regard it as optional [which] is the new element in the equation."
RTÉ Director-General Kevin Bakhurst. Picture by: Image: Sasko Lazarov/RollingNewsMr Davin Power said the big test for the broadcaster is to show real changes are being made.
"I think that is the challenge for Kevin Bakhurst."
'They want to see results'
Mr Davin Power said he believes the Government has run out of patience.
"Ministers have really run out of patience with RTÉ coming in, year on year, looking for more cash," he said.
"They want to see results and the results will have to be reflected in reform of the organisation."
He said this means the issue of headcount at the broadcaster will "sooner or later have to be tackled."
Referring to its annual report, Mr Davin Power said he is surprised by where the licence fee goes.
"That seems to be me, in a digital age, to be a small proportion," he added.