Commercial networks will ‘fund SBS budget cuts’, as Free TV warns of quality erosion

TenNetwork Ten and Free TV have attacked the government decision to double the hourly amount of advertising SBS can sell, claiming the move has created a “fourth free-to-air network” that will damage the quality of Australian TV production.

Ten chief executive Hamish McLennan branded the move “very concerning” while Free TV chairman Harold Mitchell reiterated claims that $200m worth of advertising revenue will vanish to SBS over five years. Communications Minister Malcolm Turnbull had earlier suggested the figure was nearer $28.5m.

Free TV logoThe criticism came after Turbull announced budget cuts to both SBS and ABC and tasked SBS with raising additional revenue through advertising. To achieve that the maximum five minutes of advertising per hour will be raised to 10 minutes.

SBS managing director Michael Ebeid predicted raising the cap will bring in between $20m and $30m additional revenue over five years.

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