Seven West Media CEO Tim Worner says media reform is possible if reduced TV licence fees are also negotiable
Worner: says change is possible, but it’s “time to get real.”
CEO of Seven West Media, Tim Worner, wants to counter perception that the TV Network is opposed to all media reform.
In a statement this afternoon, Worner said Seven West is open to reform but wants to see the detail of any legislation.
“Seven has been incorrectly characterised as being against any change,” Worner said. “We have consistently said we are open to media reform but we want to see the entire package of proposed legislation.”
The declaration comes after the media company previously ran its own regional ad campaign aimed at undermining a push by regional television networks Prime, WIN and Southern Cross Austereo (SCA) to force media reform back on the political agenda.
https://www.youtube.com/watch?v=e8wb5cglJhk
The ad campaign, which was run in regional Queensland mid-last year, accused the rival TV networks of “bullying”, criticised them for threatening regional newsroom closures and of using viewers as “pawns” before urging viewers to contact their local MP and “tell them to leave TV laws alone.”
Worner today shifted his previous rhetoric from criticism of the regional networks to one of being open to reform, so long as TV licence fee reductions were included in the wider package of reform.
“We have definitely said that we see changes to media ownership rules as less of a priority than some of our industry colleagues,” said Worner.
“It’s certainly open to others to view things differently but what we are concerned to ensure is that a focus on these changes does not eclipse a major reform to licence fees that is critical to help the entire industry become more competitive with global players who have found they can march in and do what they like.”
The declaration comes the same day Minister for Communications Mitch Fifield signalled that the Coalition is open to further cut licence fees for broadcasters in the upcoming budget. A declaration warmly received by both FreeTV Australia and Commercial Radio Australia.
Worner also claimed that the TV network, which posted a $1.8bn loss on the back of a $2.1bn write-down in the value of its TV licences and goodwill last year, would struggle to maintain its current levels of TV production unless the fees were reduced.
“Seven has a huge production slate but we simply won’t be able to keep up that level of Australian production if we have to pay exorbitant licence fees.
“And we need to be able to continue to invest in transforming our business for the digital future,” he said.
“We invest heavily and employ thousands of people on Australian productions. Most global multinationals we are competing with don’t pay tax, don’t support the Australian production sector and don’t provide a safe and regulated environment for Australians to access content. It is time to get real.”
Nic Christensen
Seven bought Sunshine Television, rebadged as Seven Queensland, in the late 1990’s. Prime owns the rest of regional Australia taking Seven’s programming. 7Q won the ratings for the first time in 1999 when I was in charge. Our success was largely based around a campaign to maximise each station’s local identity and heavily focussing on local news, sport and weather. Local news was added to Cairns and Townsville after I left and 7Q has been the market leader ever since. News is expensive but it is what regional Australians want from their FTA television. And it rates.
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Interesting how this is an issue. I wonder what would happen if the govt said: let’s tender the spectrum and see what it’s worth.
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Local is all a about that – being local & relevant to your viewers.
Networking the remaining content – major sort/reality/drama/movies etc is fine……..
But remove the local flavour and the media is simply not doing its job.
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If networks don’t like the fees and obligations being asked by the government for using broadcast spectrum which is a public resource then they are free to hand the licences back and go online.
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Simple, to level the playing field completely, including spectrum, one has to allow bidding for spectrum, no local content rules, GST on content purchasing from suppliers outside the domestic GST net, no cross media rules, lower ACMA costs to Government, (you’ll be able make less complaints) and no competition from a Government funded (and when one thinks about it, funded by FTA licence fees), ABC and SBS. And no costs of the Screen Australia –which is generally an off balance sheet SBS and ABC production house.
This way all the costs and revenues of FTA TV are removed from Government , and the largest video subsidy to Netflix et al –the $50b NBN should also be stopped and made a private sector investment decision under the same tough commercial criteria that would be applied to spectrum auctions.
No tilted industry assistance, just the 30% corporate tax rate on profits, like every other commercial sector of the economy.
The request to drop the licence fee looks about fair given the above.
The writer holds shares in TEN Network (big mistake so far)
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My understanding is that the airwaves are owned by the people of Australia.
They are administered by the government of the time for defence, security, community, communication, business and recreational purposes.
Those that use our airwaves (spectrum) for profit are to pay a licence fee back to the Australian government into consolidated revenue. Think of it as paying rent to your landlord.
Now that things are getting tougher the squealing is starting, despite already getting rebates on the going rate.
It’s a pity that those suckling on the public teat to maximise their profits, and even more alarmingly, The Communications Minister, seem to have forgotten this.
It seems like it is “good policy” to hand taxpayers money to a select few even though the ‘budget crisis’ still looms.
I reckon the princesses should suck it up and get on with restructuring their businesses than the easy way out of milking the public purse.
Let’s see how serious the Turnbull government is on cracking down on exemptions for big business to assist the everyday Australians.
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