Regional media get COVID lifeline but ABC, SBS remain in peril
While the government's media relief package is welcome, it excludes SBS and ABC, explain Alexandra Wake and Michael Ward in this crossposting from The Conversation. SBS must be facing revenue decline, and it's unclear whether the ABC will be spared from continued budget cuts and freezes.
After weeks of devastating reports of local newspaper closures and regional broadcast stations turning off local news services, media supporters and observers were united in joy as the Australian government announced a coronavirus relief package for local journalism.
The four-part initiative has been designed to assist local newspapers and commercial free-to-air radio and television and subscription television, following calls for a lifeline from the industry and the communities they serve.
Although coronavirus might have hastened their financial woes, it’s clear that many of these news outlets have been in trouble for a while, with falling advertising and subscription revenue reductions.
Last year was described as “the worst advertising market since the global financial crisis for the television industry”.
Australian metropolitan radio revenues fell by 6% in 2019.
Regional newspapers have been buoyed by local advertising, but even that has its limits.
Two components of the government’s COVID package, a $41m waiver on the tax imposed on radio and television services for spectrum use, and suspension of key parts of the commercial television Australian content rules, will save commercial broadcasters millions in 2020.
Both major industry organisations, Free TV and Commercial Radio Australia, cautiously welcomed the announcement, but sought more action from the government.
The third component, a $50 million Public Interest News Gathering program, will fund journalism for regional broadcasters and print services.
The most heartening line in the government’s press release was the acknowledgement by the minister that the government recognises that public interest journalism is essential in informing and strengthening local communities.
ABC and SBS left out
In the absence of other government action, there remain two big losers from the COVID-19 announcement for journalism.
First, it excluded the trusted national public broadcasters, even though SBS must also be experiencing a reduction in advertising revenue.
Further, there was no indication the ABC would be given any reprieve from the combined budget cuts/freezes that will total almost $800 million by 2022.
In the midst of the COVID emergency, which has brought a record number of people to the broadcaster, the ABC is continuing to manage an annual budget reduction of over $100 million while delivering its range of services.
As has been widely acknowledged, it has also increased emergency broadcasting firstly for the devastating summer bushfires, and now for the coronavirus emergency, without any specific funds.
Local drama in jeopardy
Independent producers of Australian programs, including Australian drama, documentary and children’s drama, are also losers in the COVID announcement.
The decision to suspend commercial television Australian content rules for 2020 is couched in terms of production “disruption caused by the COVID-19 pandemic”.
However, there are long lead times for much drama and documentary production, and commercial free-to-air broadcasters are allowed to average drama content over three years.
This means a more nuanced and flexible approach to developing and commissioning projects could have helped broadcasters and kept the production sector alive.
In an already hard hit creative sector, TV producers look like losing at least a year of commercial commissions. That’s worth $250 million to the sector.
The government statement also implies the reduction in the Australian content rule may extend into 2021. If that happens, it’ll bring to an end Australian content policy settings that have been in place for almost 60 years.
Originally introduced by the Menzies government, the policy was put in place to ensure there was a strong Australian identity on local television.
Chilling notes in the details
Finally, the government has included as part of its announcement, a fast-tracked consultation process on “Harmonising Regulation to Support Australian Content”.
Media observers will be pleased the process has finally started, but all will be concerned about the timing.
It seems more than a little odd for some of the most significant reforms to the way Australian content is delivered via screens are included in an emergency funding announcement.
Buried on page 41 of the document, for example, is an option which would require the ABC and SBS to spend their funding to make up for commercial shortcomings in children’s programming.
Or to put it another way, if that option were accepted, the ABC and SBS would be told by the government of the day to do what the government wants, without any extra funding. That’s completely opposite to the idea of an independent public broadcaster. Perhaps it’s a case for the Inbestigators.
Alexandra Wake, Program Manager, Journalism, RMIT University and Michael Ward, PhD candidate, University of Sydney
This article is republished from The Conversation under a Creative Commons license. Read the original article.
As a long standing journalist who started in the country, great to hear regional journalism has been given a lifeline.
We need regional journalism now more than ever, it’s so important local communities can have access to news in their area.
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Maybe the ABC and SBS will gain some relief from reducing their massive annual domestic travel bill.
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Typical commentary from non-private sector talkers – supporting the ABC/SBS.
There is no ABC $800m cut to 2022. It’s a denial of a $80m growth budget request. This is whilst all commercial media had been actually cutting costs.
The danger in letting the ABC/SBS off the hook from the dire economics circumstances we are in, is that plurality of voices, already heavily skewed against commercial media representing the centre and centre right of Australian discourse, is further, in relative resources, diminished. All the networks – radio and TV – are reducing costs by between 15-20%. After they review April results in May, one would expect more cuts. As a tax payer, I might have reduced income, and therefore reduced ability to pay tax to keep the current level of Government services going. One would think that a deep cut to an esoteric service like the ABC/SBS could be made and fair to the private sector competitors.
For the Last 30 years or so, the ABC/SBS has been relentlessly hunting down every time slot and commercially viable news and current affairs slots and programs, that the commercial TV networks had. Late night news, current affairs and Sunday mornings. They have well succeeded in influencing the discourse such as with Pell, where they obviously got into the heads of the 12 jurors for that miscarriage of justice. (Louse Maddigan take a bow).
So where does this end up. Look to NZ. TV3 the only relevant commercial TV network will likely close. Nine’s Stuff business can’t be sold and will be largely closed down after Nine leaves NZ. That leaves just one content player in that country – NZ Media with its national daily and its talk station radio network. Australia wouldn’t want to be even half way to that scenario. In NZ, substitute XI for Ahern and you have a near dictatorship of media. And, ultimately, the country.
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