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Annual Report 2004–05
24
for any child
Meeting Mixy | Sydney Royal Easter Show
The ABC continues to be Australia’s most successful
and comprehensive broadcaster of children’s programs.
Characters such as the popular star of TV and
online, the pink rabbit Mixy; the internationally
acclaimed Bananas in Pyjamas and the iconic
program Play School, have become an integral
part of the lives of Australia’s children.
Each week, ABC Television carries around 38 hours of
ABC Kids programming designed to interest and excite
children about their world. These hours are increased
in school holidays. On weekdays, ABC2 carries children’s
programs at times they are not screening on ABC
Television, so that 13 hours of trusted ABC children’s
programming are available to Australian families
each day.
The relationship with young viewers is extended
through ABC online with the unique children’s gateways
—The Playground for youngsters up to eight years of
age and RollerCoaster for those between eight and
14 years.
The ABC’s link with young Australians is maintained
through schools programs for primary and secondary
students, including Behind the News, and ABC
Online’s Education Resources site—a gateway
designed for use by schools.
Annual Report 2004–05
25
hello big ted i enjoy watching playschool and i especially love the bears
Hugo. by email
Annual Report 2004–05
26
Audience TrendsThe environment in which the ABC
operates is constantly changing. Audiences
increasingly have control over what, when,
where and how they consume media. The
choice of content and the devices through
which that content is broadcast or captured
are also increasing rapidly.
In this environment of change, the vast
majority of Australians continue to turn to
the ABC: an estimated 75% of Australians
use the ABC’s broadcast services each
week.1 The traditional media of ABC Radio
and Television continue to attract and retain
large audiences, while the new media
forms—ABC Online, the ABC’s second
digital television channel, ABC2, and
initiatives such as podcasting and audio
streaming—are providing audiences with
access to a wide range of content that is
available at different times and are enabling
audiences to self-schedule their media
consumption. The ABC’s strength in the
traditional media and positioning at the
leading edge of developments in content
delivery and new media forms mean
that the Corporation serves both a mass
audience and masses of audiences.
Radio
Strong competition in the radio market
provides audiences with a wide range of
choice across many radio genres. The radio
market continues to fragment. Between
June 2003 and June 2005, an additional 30
radio licenses were issued in Australia,2
increasing competition for audiences in
metropolitan and regional areas. The
average weekly reach (the total number
of people who have listened to—or in the case
ABC Audiences
1 Newspoll analysis based on overlap patterns of usage of
ABC services from Newspoll telephone survey, plus reach
data for TV, Radio and Online. Analysis based on Australians
aged 18 and over, June 2005.
2 Australian Broadcasting Authority, June 2005.
3 Nielsen Media Research Radio Ratings 1995–2005.
0.0 0.5 1.0 1.5 2.0 2.5Millions
2000–01
2001–02
2002–03
2003–04
2004–05
ABC Local Radio
Radio National
ABC Classic FM
ABC NewsRadio
0 10 20 30 40 50
%
2000–01
2001–02
2002–03
2003–04
2004–05
Darwin
Hobart
Canberra
Newcastle
Perth
Adelaide
Brisbane
Melbourne
Sydney
Average Weekly Radio Reach—Five CitySource: Nielsen Media Research
Aggregate ABC Radio Audience Share (%)Source: Nielsen Media Research
of television or online, viewed or visited—a
service over a given time frame) of radio has
remained at 95% for more than a decade
and the level of listening among different
age groups has generally been steady
during this period.3
Another feature of the radio market has
been the emergence of new means of
delivery that take the traditional medium
of radio into the leading edge of new
Annual Report 2004–05
27
increased to 8.7% from 7.9%. 891 ABC
Adelaide’s reach was up by 13% to 205 000
and share increased to 11.1% from 9.9%.
Reach for 720 ABC Perth rose by 9% to
288 000 and share increased to 11.5%
from 10.8%.
triple j’s five-city average weekly reach
decreased by 6% on 2003–04 to 1 092 000
and share decreased from 4.7% to 4.4%.
This decline is due to the continuing
fragmentation of the youth media market,
driven by new technologies and entrants.
Work is continuing to minimise the decline.
(This result does not reflect use of triple j
services on other platforms, including
online and mobile technologies.)
ABC Classic FM’s five-city weekly reach
increased by 2% to 690 000, while share
remained steady at 2.5%. Following the
highs recorded in 2003–04, Radio National’s
overall five-city weekly reach was down by
5% to 661 000 and share decreased from
2.3% in 2003–04 to 2.0%. An extensive
research project exploring listener attitudes
and expectations of the network commenced
in mid-2005.
media. These developments are detailed
in the New Media and Digital Services
section, below.
In this highly-fragmented environment, ABC
Radio continued to perform strongly. Overall
five-city average weekly reach increased by
0.8% on 2003–04, to the numerically highest
annual average recorded: 3 766 000, or
34% of the five-city metropolitan population
aged 10 years or over.4 ABC Radio's overall
five-city share (the percentage of the radio
listening or television viewing audience
tuned to a particular service) in 2004–05
was 20.4%, a 0.7 point decrease on the
2003–04 result of 21.1%. Increases were
recorded in Adelaide and Perth, while
Brisbane remained steady.
ABC Local Radio’s average weekly
reach was up 4% on 2003–04, to a record
2 198 000 and share increased to 10.2%,
an 0.2 share point increase on the 2003–04
result of 10.0%. Weekly reach for 702 ABC
Sydney increased by 2% to 671 000 and
share was steady at 9.1%. While 774 ABC
Melbourne’s reach increased slightly by
0.4% to 758 000, share decreased to 11.2%
from 11.6%. 612 ABC Brisbane’s reach
increased by 8% to 276 000 and share4 All five-city radio data is drawn from Nielsen Media Research. The five
cities surveyed are Adelaide, Brisbane, Melbourne, Perth and Sydney.
ABC Radio Regional Reach and Share, 2004–05 (%) Source: Nielsen Media Research
All ABC Local ABC Radio News
Radio Radio triple j Classic FM National Radio
Share Reach Share Reach Share Reach Share Reach Share Reach Share Reach
Orange (NSW) 26.2 41 13.3 24 5.7 13 2.5 6 3.7 11 — —
Wollongong (NSW) 19.4 36 9.4 21 4.4 11 1.3 3 1.0 3 — —
Lismore (NSW) 36.6 47 20.4 24 7.7 18 3.0 7 4.2 12 — —
Broken Hill (NSW) 39.3 53 25.5 36 8.7 17 1.0 4 1.7 9 — —
Mt Gambier (SA) 32.3 41 20.8 25 4.2 11 1.3 4 0.7 3 — —
Toowoomba (Qld) 27.1 34 13.1 20 3.9 7 4.5 7 3.0 6 — —
Albany (WA) 53.5 68 23.1 34 12.4 24 3.6 12 8.0 20 — —
Geraldton (WA) 46.9 58 31.5 37 4.3 11 1.3 5 2.4 8 — —
Bunbury (WA) 41.4 54 16.2 26 14.4 24 1.7 5 4.4 9 — —
Launceston (Tas) 42.0 49 23.1 26 5.7 16 3.5 7 5.8 12 1.7 6
Annual Report 2004–05
28
ABC NewsRadio’s weekly reach increased
by 1% to 642 000 and share remained steady
at 1.5%, compared with 1.6% in 2003–04.
ABC Radio's reach and share increased in
both Newcastle and Canberra in 2004–05.
In Newcastle, ABC Radio's reach increased
by 12% to 147 000 and share increased from
19.1% in 2003–04 to 20.8%. In Canberra,
ABC Radio's reach increased by 2% to
186 000 and share increased from 42.4%
in 2003–04 to 44.1%.
Radio surveys were also conducted in Hobart
and Darwin in 2004–05. ABC Radio's average
weekly reach in Hobart was 90 000 and share
was 36.8%. In Darwin, ABC Radio's reach
was 52 000 and share was 32.1% (no radio
surveys were conducted in Hobart and
Darwin in 2003–04).
On a nine-city basis, ABC Radio, on
an average week, reached an estimated
4.241 million Australians in 2004–05.5
A total of ten radio surveys were conducted
in regional areas in 2004–05.6 The ABC
participated in surveys in 2004–05 in
Toowoomba and Wollongong. ABC Local
Radio achieved a share of 13.1%, and 9.4%
respectively in these two markets.
The ABC also commissioned surveys in
eight regional areas (no commercial stations
chose to participate in these surveys). ABC
Local Radio achieved a share of 13.3% in
Orange, 16.2% in Bunbury, 20.4% in Lismore,
20.8% in Mt Gambier, 23.1% in both Albany
and Launceston, 25.5% in Broken Hill and
31.5% in Geraldton.
ABC Audiences (Continued)
The ABC has commissioned further
radio surveys in regional Australia for
the coming twelve months.
Local Content on ABC Radio
Local content is a very important part of ABC
Local Radio programming for audiences in
regional Australia. Earlier research among
regional audiences indicated a strong
demand for local content during breakfast
time radio.7 Quantitative audience research
in 2004–05 illustrated the popularity of the
local weekday Breakfast program among
audiences. For example, in Broken Hill
and Geraldton, ABC Local Radio breakfast
programs achieved audience shares of
42%; in Orange, Bunbury, Lismore, Hobart
and Toowoomba the Local Radio breakfast
programs achieved audience shares ranging
from 22% to 29%; while Mt Gambier, Albany
and Launceston audience shares were above
30%. Similar levels of audience were
recorded for the local weekend Breakfast
programs, with 52% of the Saturday
Breakfast listening audience in both Broken
Hill and Geraldton tuning to Local Radio.
Saturday Breakfast also recorded strong
audience share results in Orange, Lismore
and Toowoomba of around 30% and of over
40% in Albany and Mt Gambier.
Focused Radio Audience Research
During 2004–05, four major research
projects were undertaken on behalf of ABC
Radio. Three projects were commissioned
for ABC Local Radio and one for ABC
Classic FM.
During October and November 2004,
qualitative research was undertaken
on behalf of ABC Local Radio among its
listeners who use and do not use the
accompanying Local Radio websites.
5 Nielsen Media Research radio ratings surveys 2004–05.
The nine cities surveyed in metropolitan ratings surveys
are Adelaide, Brisbane, Canberra, Darwin, Hobart,
Melbourne, Newcastle, Perth and Sydney.
6 All surveys conducted by Nielsen Media Research.
7 Qualitative research undertaken in 11 regional areas in
2001–02: Mackay, Cairns, Mt Isa, Tamworth, Lismore,
Wodonga, Bendigo, Geraldton, Bunbury, Renmark and
Alice Springs.
Annual Report 2004–05
29
The research, which was conducted in
three distinctly different locations—
Melbourne, Darwin and Tamworth—was
undertaken to: gain a better understanding
of why people use the websites; evaluate
whether the content is meeting user needs;
and identify opportunities for audience
growth. This research was used to
inform content and style development
for the websites.
In October 2004, 1233 ABC Newcastle
commissioned quantitative research to
explore the radio listening habits of people
aged 40 years and over in the Newcastle,
Hunter Valley, Port Stephens and Lake
Macquarie areas. The research focused
on levels of satisfaction among listeners
to radio generally and to ABC Local Radio
during the key Breakfast and Drive sessions.
The research has been used by Local
Radio to continue to refine and enhance
these programs.
In February 2004, ABC Local Radio
commissioned a longitudinal study of the
mood and frame of mind of the Local Radio
listener. The research was designed to
provide insights into how listeners feel
about the world around them and the place
of media—specifically radio and Local
Radio. The research included interactive
discussions on the Internet among a wide
cross-sectional sample of Local Radio
listeners from disparate parts of Australia.
These discussions provided insights into
audience attitudes and responses to
various events—be they local, national or
international—and how those events were
handled and interpreted by the media and
specifically by Local Radio. The findings from
this research have been used extensively
by ABC Local Radio in metropolitan and
regional areas to inform and develop
program content to meet listeners’
needs at different times of the day.
During May and June 2005, qualitative
research was undertaken for ABC Classic
FM in Sydney, Melbourne and Adelaide.
The research explored audience attitudes
and responses to classical music and the
content and style of the network. The
research took the form of workshop
discussion groups, primarily among
potential listeners, and focused on
identifying further opportunities for
ABC Classic FM to attract new listeners
and develop new program content.
Internet Delivery of Radio Services
The expansion of new media has provided
traditional media forms with the opportunity
to expand their distribution channels.
This is best exemplified by the growth in
the number of ABC Radio services available
online and the growing audiences for ABC
Radio online services.
In 2004–05, three of the top ten ABC Online
websites were those for domestic ABC
Radio services: ABC Local Radio reached
an average of 293 000 users each month,
Radio National reached an average of
130 000 users and triple j reached an
average of 129 000 users.8 Some of this
activity was driven by podcasting (MP3
audio files) and audio streaming.
By June 2005, the triple j, Radio National,
Local Radio, dig and News and Current
Affairs websites offered MP3 audio files
of programs or program segments for
download. Average weekly accesses to
MP3 file downloads grew from around
3 300 in January 2005, when podcast files
were available only on the triple j and dig
websites, to 93 100 in June 2005.9
To collect audience feedback and measure
ongoing audience demand for podcasting,
ABC Radio National conducted a podcasting
trial in May 2005. More than 3 000 people
8 Nielsen//Netratings July 2004–June 2005.
9 ABC Server statistics.
Annual Report 2004–05
30
registered to take part in the trial, and in
the follow-up survey of 1 500 participants,
98% said they would continue to use the
service to download ABC Radio National
audio files. Providing audiences with
control over the time at which they listen
to content has proven to be popular,
with 51% of respondents indicating they
downloaded programs that they did not
usually listen to on air.10
Since the late 1990s, the ABC has provided
online audio streams of its Radio services.
ABC Radio has made an increasing quantity
of content available as audio-on-demand and
as the amount of content has increased,
so too has demand. The level of activity,
measured by average weekly accesses,
attributed to audio streaming in 2001–02
was 155 000. Activity had doubled to an
average of 329 000 accesses per week
in 2004–05.11
Digital Radio Trials
During 2004–05, digital radio trials
continued in Sydney and Melbourne. The
current trials are being conducted by Digital
Radio Broadcasting Australia (a consortium
of Commercial Radio Australia, the ABC and
SBS) and Broadcast Australia respectively.
The Sydney trials include seven commercial
broadcasters, the ABC and SBS. The
Melbourne trials include the ABC, SBS,
community broadcasters, Sport 927 and
World Audio (an off-band AM broadcaster).
The ABC has broadcast its dig music service
and ABC Classic FM in both cities, as
well as ABC NewsRadio in Melbourne.
Program-associated data (PAD) has been a
feature of both trials, supplementing audio
content with text-based information such
as artist and track details. Research from
audience panels established in both cities
ABC Audiences(Continued)
10 ABC Research, conducted on ABC Online May–June 2005.
11 ABC Server Statistics, 2001–2005.
12 Colmar Brunton Research for Sydney trial and
Millward Brown Research for Melbourne trial, 2004-05.0 5 10 15 20 25 30
%
2004–05
2003–04
Regional All
Tasmania
Queensland
Victoria
Northern NSW
Southern NSW
5 City Metro
Perth
Adelaide
Brisbane
Melbourne
Sydney
Reg
iona
lM
etro
polit
an
0 5 10 15 20 25%
2004–05
2003–04
Regional All
Tasmania
Queensland
Victoria
Northern NSW
Southern NSW
5 City Metro
Perth
Adelaide
Brisbane
Melbourne
Sydney
Reg
iona
lM
etro
polit
an
ABC Television Share 2004–05 6pm–midnightSource: OZTAM Television Ratings and Regional TAM
ABC Television Reach (Four Weekly)
Source: OzTAM Television Ratings and Regional TAM
0 10 20 30 40 50 60 70 80 90 100%
2004–052003–04
Regional All
Tasmania
Queensland
Victoria
Northern NSW
Southern NSW
5 City Metro
Perth
Adelaide
Brisbane
Melbourne
Sydney
Reg
iona
lM
etro
polit
an
ABC Television Share 2004–05 6am–midnightSource: OZTAM Television Ratings and Regional TAM
ABC Television Household Share, Remote Regions, 2004–05 (%)
Region Survey Dates 6am–midnight 6pm–midnight
Darwin 18 July–7 August 2004 23.3 25.5
Riverland/Mt Gambier 25 July–7 August 2004 16.8 16.6
Remote Central and Eastern 18–31 July 2004 32.9 36.0
Port Pirie/Broken Hill 18–31 July 2004 13.9 15.3
Regional WA 25 July–7 August 2004 21.8 22.8
6–19 March 2005 20.4 20.5
Note: as the frequency of surveys and dates vary from year to year, comparative data is not available.
Source: Nielsen Media Research
Annual Report 2004–05
31
was 17.2%, compared with 17.3% in
2003–04.16 In the regional television
markets that are measured electronically
(regional Queensland, Northern and
Southern NSW, regional Victoria and
Tasmania), the free-to-air prime-time
household share for ABC Television was
at an all-time high of 18.4%, compared
with 18.3% in 2003–04.17 All-day
(6am–midnight) free-to-air household
share for ABC Television in regional
markets was 17.9%, compared with
18.3% in 2003–04.18
Television audiences in the more remote
parts of Australia are measured by diary,
rather than electronically. In 2004–05,
the ABC participated in diary surveys
of television audiences in Darwin,
Riverland/Mount Gambier, Remote Central
and Eastern Australia, Port Pirie/Broken
Hill and Regional Western Australia. In
these areas, the number of free-to-air
television stations available to audiences
varies and the ABC share of viewing
reflects these differences. For example,
ABC Television’s prime-time household
share in the Remote Central and Eastern
Australia survey was 36%, while in the
Riverland/Mount Gambier survey area
prime-time household share was 16.6%.
13 FOXTEL Business Overview, (http://www.foxtel.com.au).
14 OzTAM unpublished analysis of non-broadcast uses of
television April/May 2004.
15 OzTAM five-city free-to-air television ratings data,
July 2003–June 2004 and July 2004–June 2005.
16 OzTAM five-city free-to-air television ratings data,
July 2003–June 2004 and July 2004–June 2005.
17 Regional TAM free-to-air television ratings data,
July 2003–June 2004 and July 2004–June 2005.
18 Regional TAM free-to-air television ratings data,
July 2003–June 2004 and July 2004–June 2005.
to assess functionality, capability and levels
of interest in this new media, indicated high
levels of enthusiasm for the service.12
Television
The television market has been characterised
by strong competition from free-to-air
broadcasters and subscription television.
The digitisation of subscription television
has meant that the channel choice available
to viewers choosing to pay for television
has grown dramatically from around 50 in
2002 to more than 130 audio and visual
channels in 2005.13 Broadcast television
also faces competition for audiences from
outside the medium, with video, DVD and
electronic game usage prevalent among all
age groups. Analysis shows particularly
high usage of these forms among young
audiences under 13 years of age.14
In this competitive environment, ABC
Television has achieved strong results
in 2004–05. The free-to-air prime-time
household share for ABC Television in
the metropolitan markets of Sydney,
Melbourne, Brisbane, Adelaide and
Perth was 17.9%, compared with 17.8%
in 2003–04.15 All-day (6am–midnight)
free-to-air household share for ABC
Television in the metropolitan markets
Annual Report 2004–05
32
In terms of program highlights in 2004–05,
51 programs attracted metropolitan
audiences of over one million; the same
number as 2003–04. Of these, 14 were
Australian, including programs such as
Kath and Kim, Enough Rope with Andrew
Denton, Outback House, The New Inventors
and My Favourite Book.19
The reach of all television (free-to-air
and subscription) has been declining. For
example, in 2002 the average weekly reach
of all television was 92.1% of the population.
In the six months to June 2005, this figure
was 89.1% of the population. In that same
period, the reach of free-to-air television
also declined from 91.2% to 87.5%.20
Factors contributing to these declines in the
reach of all television include those noted
earlier, such as the use of DVDs, videos
and electronic games, as well as new
media forms, which are explored below.
The average weekly reach of ABC
Television mirrors the small declines in
reach generally recorded over time by
free-to-air networks. In the metropolitan
markets, the average weekly reach of ABC
Television was 8.8 million viewers or 64.2%
of the population in 2004–05, compared
with 65.7% in 2003–04.21 In the regional
markets, the average weekly reach of ABC
Television in 2004–05 was 3.9 million
viewers or 62.6% of the population,
compared with 65.1% in 2003–04.22
In response to this competitive environment,
ABC Television continued to draw on a range
of quantitative and qualitative research
to inform programming, scheduling and
marketing strategies. This included detailed
analysis of television ratings databases
using customised data analysis tools; the
use of qualitative tracking tools to monitor
audience attitudes to program genres
and new programs, and trends in viewer
preferences; and a syndicated media and
consumer database to inform program
marketing and promotional activity.
ABC2
ABC2, the ABC’s second digital television
channel, began transmission on 7 March
2005 as a complementary service to the
main ABC television channel.
Presently, there is no standard audience
measurement system for digital multi-
channels, with only limited data available
from the digital subscription television
homes in the OzTAM and Regional TAM
ratings panels. In its first quarter of service,
the average daily reach of ABC2, from
within digital subscription television homes,
was estimated to be 92 000 viewers, which
roughly equates to 5% of digital subscription
television homes watching ABC2 on a daily
basis.23 Audience estimates for ABC2 were
also collected via a national telephone
survey conducted among Australian adults
aged 18 and over. The survey found that
12% of Australian adults claimed to have
watched ABC2.24
Emerging television technologies
Trials of two new media forms, DVB-H
(Digital Video Broadcasting-Handheld) and
datacasting, commenced in Sydney in 2005.
The ABC is participating in the DVB-H trial
with other content providers, Broadcast
Australia and Telstra. DVB-H technology
enables audiences to view television and
video content via a mobile phone. ABC2
ABC Audiences (Continued)
19 OzTAM five-city free-to-air television ratings data,
July 2003–June 2004 and July 2004–June 2005.
20 OzTAM five-city free-to-air television ratings data,
2002 to June 2005.
21 OzTAM five-city free-to-air television ratings data,
July 2003–June 2004 and July 2004–June 2005.
22 Regional TAM free-to-air television ratings data,
July 2003–June 2004 and July 2004–June 2005.
23 OzTAM and Regional TAM data from subscription
television homes, 6 March–4 June 2005.
24 Newspoll, Awareness and Usage of ABC
services, June 2005.
Annual Report 2004–05
33
ABC Online’s Monthly accesses 2000–2005 (June)
ABC Online Audience Retention (month-on-month)
July 2004 – June 2005
ABC Online’s Audience Reach by Month July 2004 – June 2005
Source: ABC Server Statistics
Source: Nielsen//NetRatings
Source: Nielsen//NetRatings; Home and Work Panel
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
2 000 000
0
2
4
6
8
10
12
14
16
18
Audience Reach (Unique Audience)
Audience Reach % 0
July
August
September
October
Novem
ber
Decem
ber
February April
MayJu
ne
March
Januar
y 200
5
Aud
ienc
e R
each
Aud
ienc
e R
each
%
200 000
400 000
600 000
800 000
1 200 000
1 000 000
1 400 000
1 600 000
1 800 000
2 000 000
42.1% 39.6% 38.3% 35.5% 41.4% 42.6% 42.4% 43.7% 41.5%41.6%
43.1%47.6%
0
Retained audience
New audience
Retention rate (%)
Sep-Oct
Aug-Sep
Jul-A
ug
Jun-J
ul
Oct-Nov
Nov-D
ec
Dec-Ja
n
Jan-F
eb
Feb-Mar
Mar-A
pr
Apr-May
May-J
un
Uni
que
Aud
ienc
e
May Ju
lSe
p
Mar
Jan-
01
Mar
Jan-
00
Nov
May Ju
lSe
pN
ovJa
n-02
May Ju
lSe
p
Jan-
03
Mar
Nov
May Ju
lSe
p
Jan-
04
Mar
Nov
May
Mar Ju
lSe
p
Jan-
05N
ov
May
Mar
Mon
thly
acc
esse
s -
Mill
ions
10
0
20
30
40
50
60
70
80
90
100
Annual Report 2004–05
34
will be part of this trial and audience
research will commence later in 2005.
The ABC is participating in the first full
datacasting service on free-to-air digital
television in Australia. Datacasting allows
for the broadcasting of text, audio and
video content via the digital television
spectrum. The trial will initially feature
six information services from a range
of content providers. The ABC will be
providing a news, sport and weather
service. Research into the utility, value
and audience needs will commence
later in 2005.
Since 2002, ABC New Media and Digital
Services has been involved in a study of
how interactivity can enhance children’s
television. The research is being undertaken
by the Interactive Television Research
Institute (iTRI) at Murdoch University and
includes industry partners Nickelodeon,
the Nine Network Australia, TVNZ and the
West Australian Department of Education.
The first two years of the project involved
development of interactive prototypes and
initial testing with children in a usability
lab at iTRI. During 2004–05, a ‘mobile
lounge room’ built by iTRI visited more than
20 schools and 480 children participated in
a quantitative research study into the viability
and utility of interactive television. In the
coming months, research will continue into
the social context of interactive television.
The project is due for completion by
early 2006.
New Media and Digital Services
Digital broadcasting delivers audiences
high-speed audio and visual content on a
variety of platforms—television, radio and
online. In the digital age, the distinction
between platforms and the different services
they offer is diminishing. This convergence
of platforms means that audiences can, for
example, watch ABC Television and video
content on ABC Online via a broadband
connection, listen to ABC Radio via ABC
Online and watch ABC2 via a mobile phone.
The convergence of media forms and the
continuing growth in range and volume of
digital devices underpins the breadth and
depth of content available to audiences.
Market trends indicate a rapid rise in
uptake of digital devices. In 2003, 24 000
MP3 devices were sold in Australia. In 2004,
sales topped 441 000, and in the first six
months of 2005, sales have already out-
stripped the previous year, with 567 000
units sold. Digital set-top box sales have
also increased in the period from 114 000
in 2003, 225 000 in 2004 to 166 000 in the
first six months of 2005. The sales volume
of digital television sets in the six months
to June 2005 was 6 400, already more than
the annual sales volumes recorded in the
past two years—5 900 digital sets in 2003
and 4 600 in 2004.25
Estimates from FOXTEL indicate that 70%
of its more than one million subscribers
are receiving digital services.26 All of
AUSTAR’s more than 500 000 subscribers
are digital, and an estimated 80% of these
have newer digital services enabling
audiences to receive free-to-air digital
multichannels.27 Digital subscription
television enables audiences to interact
with some content—selecting camera
angles, sending and receiving emails and the
ability to source more detailed information.
Digital television broadcasting has also
enabled the use of personal video recorders
(PVRs) and DVD recorders to digitally capture
and store content. Although accurate data
ABC Audiences
25 GfK Marketing Australia, 2003–June 2005.
26 FOXTEL, July 2005.
27 AUSTAR, estimates July 2005.
(Continued)
Annual Report 2004–05
35
on the penetration levels of these devices
are not yet available, the commoditisation
of these technologies is a further example
of the increasing control audiences have
over their consumption of content.
In response to these developments, ABC
New Media and Digital Services greatly
expanded the breadth and depth of content
available to audiences. In 2004–05, the ABC
website, ABC Online grew to over 1.7 million
pages of content, reaching an average of
1.4 million Australian Internet users each
month who access, in total, approximately
80 million pages of content.
The number of Australians visiting ABC
Online continues to grow at a rate greater
than the growth in use of the Internet.
More than 14% of all Australians who used
the Internet on a monthly basis, visited ABC
Online. Over the six-month period from
January to June 2005, ABC Online’s audience
grew to 4.1 million, with a reach of 35.3%
among Australian Internet users.28 ABC
Online remained one of the most popular
websites in Australia, ranking 8th in June
2005 by Nielsen//NetRatings, compared
with 11th in June 2004.
While Internet use in Australia has continued
to increase, the major shift among audiences
has been the number of people converting
to broadband connections. At the end of
June 2005, 59% of Australian home Internet
users had broadband.29 Broadband access
changes the way audiences use the Internet:
broadband users spend twice as much time
online and visit twice as many Internet sites
as narrowband Internet users.30 Broadband
facilitates the use of rich media content,
including video and audio online, and New
Media and Digital Services’ business strategy
has focused on increasing the range of
broadband-specific content available to
audiences. ABC Online has a high reach
among Australian home broadband users,
with 32% of all Australian home broadband
users visiting ABC Online at least once
each quarter.31
Qualitative audience research has been
an important ingredient for the continuing
development and refinement of ABC Online.
In late 2004 focus group research was
conducted to inform the redesign of the
ABC RollerCoaster website. The website is
aimed at 8–14 year olds and the objective
of the research was to gather information
on usage of the site and how it could be
enhanced in terms of design, usability and
content. The research provided a wealth
of information and ideas which informed the
look and feel of the new RollerCoaster site.
Considerable audience research was
undertaken in the first half of 2005 to
inform the redesign of the ABC Online
home page. This research included focus
group discussions among regular, occasional
and potential ABC website users. The aim
of the research was to test new design
ideas for the home page ensuring audiences’
quick and easy navigation to the wide range
of content on ABC Online.
News and Current Affairs
News and Current Affairs audience figures
have grown or remained steady, with key
programs attracting strong audiences
across platforms in 2004–05.
On ABC Television, the weekday 7pm
News had a five-city average audience of
1.1 million, up 2% on 2003–04, and one
in four episodes had at least 1.2 million
viewers. The 7.30 Report had a five-city
average audience of 919 000 and Stateline
28 Nielsen//Netratings,Home and Work Panel data January–June 2005.
29 Nielsen//Netratings, June 2005.
30 Nielsen//Netratings, The Australian Internet and Technology Report, 2004–05.
31 Nielsen//NetRatings, June 2005.
Annual Report 2004–05
36
Newspoll conducted similar surveys in
1998, 1999, 2002, 2003 and 2004. The 2005
research was conducted by telephone
between 20 and 28 June 2005 and drew
upon a national sample of 1 900 people
aged 14 years and over.
Overall Value of the ABC
Across the community at large, the 2005
results show beliefs and opinions about the
ABC are generally consistent with those
expressed in the 2004 survey. Nine-in-ten
(90%) Australians continue to believe the
ABC provides a valuable service to the
community, and half (47%) believe it
provides a ‘very valuable’ service.
Comparing the results with those recorded
in the 2004 survey, the only change in
results was an increase in the number
of people in country and regional areas
who believe the ABC and its services are
valuable to the community (up from 88%
to 92%). Looking over the past two years,
there has been a decline in the number of
females who rate the ABC and its services
as very valuable (down from 50% to 44%)
and among heavy ABC users describing
the ABC this way (down from 62% to 57%).
The ABC is conducting further analysis of
these results to better understand the
year-on-year changes.
Notwithstanding these decreases, the
proportion of people within these segments
who believe the ABC and its services are
valuable is still very high (around 90%).
Television
Results for ABC Television in the 2005
survey showed some improvements. The
vast majority of Australians (80%) continue
to believe the quality of programming on
ABC Television is very or quite good, and
three-quarters (74% up from 69% in 2004)
834 000, an increase of 5%. Australian
Story’s average audience remained
steady at 1.1 million.32
On ABC Radio, the 7.45am News on
Local Radio achieved a five-city average
weekly reach of just over one million
listeners, a 3% increase on the previous
year. AM on both Radio National and Local
Radio continued to attract a combined
average weekly reach of more than
1.1 million listeners.33
The combined ABC News and Current
Affairs online sites recorded 4.2 million
average weekly accesses, an increase of
28% over 2003–04.34 The average monthly
reach of the ABC News Online website
from within Australia was 333 000, an
increase of 4% on 2003–04.35
A large qualitative research study of the
ABC 7pm News bulletin was undertaken
in mid-2005. The research was conducted
in Sydney, Melbourne, Brisbane and Perth,
and the regional centres of Bathurst,
Townsville and Bendigo. Participants in
the research ranged in age from 25 to 70
and included regular and less frequent
ABC News viewers. The findings from
the research will be used to inform the
structure and flow of the 7pm bulletins.
ABC Appreciation Survey 2005In 2005, the ABC commissioned Newspoll
to conduct the sixth ABC Appreciation
Survey. These surveys provide an overview
of community attitudes about the ABC, and
allow the Corporation to assess the value
placed on its services by the Australian public
and the delivery of its Charter obligations.
ABC Audiences(Continued)
32 OzTAM, five city data July 2003–June 2004 and July 2004–June 2005.
33 Nielsen Media Research, metro five-city radio surveys, July 2003–June 2004 and July 2004–June 2005.
34 ABC Server Statistics.
35 Nielsen//NetRatings, July 2003–June 2004 and July 2004–June 2005.
Annual Report 2004–05
37
believe that ABC Television does a ‘good job’
in terms of the number of shows it provides
they personally like to watch. As found in
previous years, community perceptions about
ABC Television are far more positive than
perceptions about commercial television.
Demographic results of note include:
an increase in the number of males who
believe the quality of programming on ABC
Television is good (up from 73% to 80% and
very good (up from 16% to 20%); an increase
in the number of teenagers aged 14–17
describing ABC Television in this way (up
from 70% to 81% and very good up from
8% to 18%) and improvements on this same
dimension among Australians resident in
the five largest capital cities (up from 76% to
80%) and in country and regional Australia
(up from 77% to 82%). In terms of ABC
Television doing a good job providing
programs that people like to watch,
improvements were recorded among
males (good job—up from 67% to 74%),
teenagers aged 14–17 (good job—up from
51% to 71%) and light ABC viewers (good
job—up from 68% to 75%) since 2004.36 The
ABC notes that the improvement recorded
among 14–17-year-olds is a result of a
combination of program strategies, including
the introduction of the new locally-produced
Blue Water High, which achieves an audience
share of almost 40% among those aged
13–17,37 and the Wednesday evening
prime-time schedule, which has attracted
and retained younger audiences.
Radio
The majority of Australians (63%)
believe the ABC provides good quality
radio programming. Similarly, six-in-ten
(59%) Australians believe ABC Radio does
a ‘good job’ in terms of the amount of
programming it provides to which they
personally like to listen.
36 For this study, a light ABC Television viewer is defined
as someone who claims to watch ABC Television for
less than six hours per week.
37 OzTAM, five-city metropolitan data.
Television—Quality of Programming
All of the graphs above are based on a total sample aged 14 years
and over. ‘Don’t Know’ responses are not displayed Source:
Newspoll 2005 ABC Appreciation Survey
0
20
40
60
80
100
88 8691 89 89 90
44 4149 50 48 47
Very Valuable
Total Valuable
Statistically significant
200520042003200219991998
%
Poo
rG
ood
Very GoodVery Poor
Quite GoodQuite Poor
20032002199919982003 20042004200219991998
75
100
80
60
40
20
0
20
40
60
80
100
20
75
18
78
20
79
23
41
4
40
5
43
5
41
5
212
311
29
2005
80
22
210
28
19
53
24
54
18
50
18
51
ABC Commercial TV
Statistically significant change
77
19
40
6
21
53
2005
38
7
21
56
20
%
Poo
rG
ood
Very GoodVery Poor
Quite GoodQuite Poor
20032002199919982003 20042004200219991998100
80
60
40
20
0
20
40
60
80
100
2005
63
22
2
ABC Commercial Radio
Statistically significant change
2005
14
60
17
58 59
21
60
22
55
12
58
13
53 55
17
261
72
8 12
29
12
29
12
31
13 13
30 30
8
61
20
26
5855
13
12
29
1910 12
Overall Value of the ABC
Radio—Quality of Programming
Annual Report 2004–05
38
There is a greater similarity in beliefs
about ABC Radio and commercial radio than
between ABC Television and commercial
television. This similarity is borne of the
more diverse and fragmented radio market
in which ABC Radio operates. It is noted
that commercial radio tends to attract a
higher level of criticism than ABC Radio.
Patterns of change in attitudes to ABC
Radio are mixed. Over the past few years
there has been an increase in the number
of people who say ABC Radio is doing a
good job providing quality programming
(up from 59% in 2002 to 63%). This appears
to have been driven primarily by people aged
25–34 and 50 years and over. However,
among people aged 18–24 there has been
a decline in this dimension over the past
couple of years (55% in 2005 down from
67% in 2003). The ABC notes that this
corresponds to rising competition and niche
specialisation in the youth radio market.
In terms of the amount of programming
people like to listen to on ABC Radio, results
were generally similar to the previous year.
Online
Almost one-in-four Australians (23%) claim
to have ever accessed the ABC website.
Nine-out-of-ten (89%) ABC Online users
say the quality of the site’s content is good
and a similar number (93%) say the site
does a ‘good job’ in terms of the amount of
content it provides on things they use it for.
The 2005 survey included a new series
of questions about the value and usage of
ABC Online. Eight-in-ten (79%) ABC Online
users believe the website adds to the value
ABC Website—Quality of Content
* In previous surveys (1999–2004),
the question was asked in relation to
‘quality of information’
Based on those aged 14 years and
over who ever visit the ABC
website Source: Newspoll 2005
ABC Appreciation Survey
0
20
40
60
80
100
Very Good Total Good
200520042003200219991998
Statistically significant
92
34 34 3238
2934
8390 89 87 89
ABC Program Does a Good Job of Being
Balanced and Even-Handed
Based on those aged 14 years and over who ever watch/listen to the
respective program. Source: Newspoll 2005 ABC Appreciation Survey
Very Good JobTotal Good Job
%
0
20
40
60
80
100
2003
2002
2003
2002
2003
2002
2003
2002
The World Today
ABC 7pmNews
The 7.30 Report
AM/PM
95
41
93
40
2004
94 94
42
89
38
87
37
2004
89
39
89
41
90
45
2004
2005
9191
47
86
41
85
41
2004
90
50
2005
43 43
2005
88 88
44 44
2005
Statistically significant change
Annual Report 2004–05
39
and relevance that the ABC has for them. The
results also point to the website contributing
to the consumption of other ABC content in
a variety of ways. For example, 40% of the
site’s users claim to have seen something
on the site that prompted them to either
watch ABC Television or listen to ABC Radio.
Many ABC Online users also claim to have
consumed ABC Television, video or Radio
content directly through the website. For
example in the past three months: 37%
of the site’s users claim to have read a
transcript of an ABC Television or ABC
Radio program on the website; about 20%
say they have listened to ABC Radio content
through the website; about 20% say they
have watched some type of ABC video
content; and 13% claim to have downloaded
ABC Radio content as an MP3 or podcast.
Coverage of Country
News and Information
Community perceptions about coverage
of country news and information continue
to be far more favourable for the ABC
than for commercial media. This remains
apparent both among people in capital
cities and people in country/regional areas.
The vast majority of Australians (79%)
believe the ABC does a good job covering
country/regional issues, compared with
46% for commercial media.
Other Specific Charter Obligations
As found in previous years, the majority
of Australians also believe the ABC is
doing ‘a good job’ in meeting various other
charter obligations covered by the research.
Compared with the 2004 results, there have
been two statistically significant positive
changes: one on the dimension of doing
‘a good job’ on broadcasting programs
that ‘reflect the cultural diversity of the
Australian community’ (up from 78% to
82%); and a significant increase in the
number of Australians who believe the
ABC is ‘efficient and well managed’ (up
from 64% to 70%).
Going back further in time, compared with
2003 there has been a statistically significant
improvement in the belief that the ABC does
a ‘good job’ on broadcasting programs
that are different from those provided by
commercial media (up from 87% to 91%).
There has also been a gradual increase
in the number of Australians who believe
the ABC does a good job at being balanced
and even handed and this improvement is
statistically significant when compared with
the results from 1999 (up from 78% to 82%).
News and Current Affairs Content
The survey explored community
perceptions about the amount of
coverage given by the ABC to specific
news and current affairs issues.
Consistent with the previous two surveys,
on nearly all issues a majority of ABC users
feel the amount of coverage is ‘about right’.38
Year-on-year, the only statistically
significant changes were small increases
in the number who feel there is: not enough
coverage of international affairs, industrial
relations issues, education issues and sports
news; too much coverage of accidents and
disasters; and the right amount of coverage
of crime and issues affecting youth.
38 For this study, an ABC user is defined as someone
who claims to use ABC Television, Radio or Online
as a source of news and current affairs at least
once a fortnight.
I listen to triple j all the time and I had no idea it was ABC
Brisbane Male 25
Annual Report 2004–05
40
in any community
triple j One Night Stand concert | Ayr, Queensland
triple j, Australia’s only national youth radio network, is more than
just a broadcaster. It takes live music to the community—in cities
and rural Australia. This year the northern Queensland town of
Ayr won the One Night Stand competition after 4 000 of the town’s
8 500 residents signed a petition supporting a live concert in their
town. On the big night, the town’s population swelled to 10 000 as
fans flocked in from surrounding areas, eager to be part of the
audience for nationally-acclaimed topline bands—and one of
their own.
triple j’s role in the lives of young Australians is just part of the
ABC’s total involvement in being a vital part in the communities
they serve wherever they might be. ABC Local Radio in particular
provides a focal point in the everyday lives of Australians, whether
it be supporting and playing a special part in local celebrations
and festivals or providing vital information in times of emergency
or encouraging and organising volunteer work to help the needy.
The ABC through all its platforms connects people within
communities and connects communities to each other.
Annual Report 2004–05
41
Annual Report 2004–05
42
In achieving its vision the ABC delivers
comprehensive programs and services
which reflect the interests and aspirations
of diverse Australian communities.
ServicesABC Radio
• Four national radio networks
comprising Radio National, ABC Classic
FM, triple j, and ABC NewsRadio (on
the Parliamentary and News Network)
• dig, digJAZZ and digCOUNTRY—three
music-based services available via
the Internet. dig and digJAZZ are also
available via digital television and
FOXTEL and AUSTAR Digital
• Nine metropolitan radio stations
in capital cities and Newcastle,
New South Wales
• 51 regional radio studios throughout
Australia
ABC Television
• National analog television service
• Digital television with analog simulcast
from 137 transmitters around Australia
• Local television in each state and territory
ABC New Media and Digital Services
• ABC Online, serving more than
1.7 million pages of web content
• ABC2, the ABC’s second free-to-air
digital television channel
• Content and services on emerging
platforms including broadband, SMS,
podcasting, mobile services for 3G
phone and other wireless devices,
and interactive television
ABC Enterprises
• 40 ABC Shops
• 79 ABC Centres throughout Australia
• ABC Shop Online
• Customer Delivery Service
(fax, telephone and mail orders)
International Broadcasting
• Radio Australia, an international radio
service broadcasting by short wave,
satellite and rebroadcast arrangements
to Asia and the Pacific
• ABC Asia Pacific, an international
television and online service broadcasting
via satellite and rebroadcast arrangements
to Asia and the Pacific
TransmissionThe ABC transmits its programs via:
• 959 terrestrial transmitters around
Australia for analog television services,
including Self Help and Broadcasting
for Remote Aboriginal Communities
Scheme (BRACS) facilities
• 964 terrestrial transmitters around
Australia for analog radio services,
including Self Help and BRACS
• 137 terrestrial transmitters around
Australia for digital terrestrial television
services, which include the radio services
dig and digJAZZ
• a digital satellite service to remote
homesteads and communities within
Australia carrying ABC analog television,
Radio National, ABC Classic FM and
triple j, nine different regional radio
services (two each for the Northern
Territory, Queensland and Western
Australia, one each for New South
Wales, South Australia and Victoria),
and ABC NewsRadio and Parliamentary
broadcasts on the Parliamentary
and News Network
• ABC Television retransmission on various
subscription television platforms, including
FOXTEL, Optus TV, AUSTAR, Transact and
Neighbourhood Cable
• ABC Asia Pacific transmitted on the
PanAmSat 2 and PanAmSat 8 satellites,
and via rebroadcasts in countries across
Asia and the Pacific
ABC Services
ABC Broadcasting CoverageProportion of the population able to receive transmissions from ABC broadcasting services
Australia NSW/ACT Vic Qld WA SA Tas NT
Analog Television 98.19% 99.22% 98.83% 97.35% 97.01% 98.51% 95.94% 78.84%
Digital Television 95.82% 96.65% 98.65% 94.31% 93.18% 95.28% 89.89% 72.86%
(includes dig and digJAZZ)
Local Radio 99.34% 99.69% 99.78% 99.50% 98.77% 99.63% 98.43% 80.93%
Radio National 98.51% 99.12% 99.46% 97.88% 96.38% 99.54% 99.14% 79.60%
ABC Classic FM 95.66% 97.49% 97.96% 94.31% 89.68% 95.04% 95.67% 67.18%
triple j 95.19% 97.10% 97.92% 93.20% 88.82% 94.77% 95.67% 67.18%
ABC NewsRadio 78.23% 79.70% 82.54% 65.16% 76.50% 91.07% 94.86% 53.37%
Domestic Shortwave 0.97% 0.00% 0.00% 0.00% 0.00% 0.19% 0.00% 86.45%
Note: Population was derived from Australian Bureau of Statistics (ABS) 2001 Census data.
Annual Report 2004–05
43
• Radio Australia services via shortwave
transmission from Brandon in Queensland,
Shepparton in Victoria, Darwin, Singapore,
Taiwan and the United Arab Emirates;
and the PanAmSat 2 and PanAmSat 8
satellites in association with ABC Asia
Pacific. Radio Australia operates its own
24-hour FM relay network in English
which is available in Dili (106.5), Honiara
(107), Nadi (92.6), Phnom Penh (101.5),
Port Moresby (101.9), Port Vila (103)
and Suva (92.6).
Tokyo
Moscow
JerusalemBeijing
Johannesburg
Washington New York
London
Port Moresby
Auckland
BangkokNew Delhi
ABC international bureaux and correspondents
Amman
Jakarta
Annual Report 2004–05
44
The ABC’s Governance systems and practices
reflect the particular requirements of the
Australian Broadcasting Act 1983 (ABC
Act) as well as the broader performance
expectations of modern public sector
organisations. The Act provides for both the
editorial and administrative independence
of the ABC, thereby investing the Board with
considerable discretion. In acknowledgement
of that independence, the ABC accepts the
obligation to meet very high standards of
public accountability.
Corporate objectives, strategies and
performance expectations derive explicitly
from the Act, especially section 6, the ABC
Charter, and section 8, duties of the Board
(see page 222). This linkage is demonstrated
in the Corporate Plan Performance
Summary (page 13).
ABC BoardDirectors of the Corporation are each
appointed for a term of up to five years.
At 30 June 2005, two Board vacancies
remained open, following the scheduled
departure of Deputy Chairman, Professor
Judith Sloan, and Mr Ross McLean in
February. These vacancies did not impede
the ability of the Board to fulfil its
governance obligations. However the
Board did not retain the full breadth
of expertise available at the same time
last year—specifically in the area of
financial management.
The Board held ten meetings during
2004–05. Details of the six Board
Committees and Board members’
attendances at meetings are provided
in Appendix 4 (page 178).
In September 2004, Directors adopted a
Board Protocol to replace the Directors’
Handbook/Code of Practice. The Protocol
sets out the responsibilities, rights and
expectations of Board Directors.
Directors are required to provide
a declaration of interests upon their
appointment. This is updated on a regular
basis. At each meeting, Directors are asked
if they wish to declare a material personal
interest in any items on the agenda.
The Australian National Audit Office’s 1999
publication, Principles and Better Practices:
Corporate Governance in Commonwealth
Authorities and Companies, provided the
Board with a template for monitoring and
evaluating its performance. It applied this
as a checklist for self-evaluation in areas
of strategy setting, financial operating and
reporting, and audit and risk functions.
Comparison with previous years,
particularly in relation to the basis for
Board appointments and assessment of
Board skills, is necessarily limited, due
to the two vacancies. Overall, however,
Directors concluded the Board’s performance
had improved since 2001 when they first
undertook the self-evaluation.
Thorough induction processes are in
place for new Board members and online
training is available through provision
of the Directors’ Manual and Corporate
Governance in Australia modules. Other
professional development for Directors
continues to be provided on a
case-by-case basis.
Corporate Governance
Annual Report 2004–05
45
The effectiveness of the Board
depends considerably on the operation
of its committees, the work of which
is shared as equitably as possible.
Throughout the year, Board members
served on the following committees:
Audit and Risk Committee,
Executive Remuneration Committee,
Advisory Council Committee,
Code of Practice Committee (ad hoc) and
Editorial Policies Committee.
ABC Editorial Policies is the principal
document of direction and guidance for
all ABC program production and media
services. Under section 8 of the ABC Act, the
Board exercises specific responsibilities
reflected in the Editorial Policies. These
include a duty to ensure the independence
and integrity of the Corporation, that news
and information is accurate and impartial
according to the recognised standards of
objective journalism, and to develop codes of
practice relating to programming matters.
The Board’s Editorial Policies Committee
began a review of the 2002 Editorial Policies,
and provided initial input to management
on matters to be examined.
Corporate PlanningThe ABC’s Corporate Plan 2004–07
came into effect in July 2004. Its strategic
priorities reflect the Corporation’s continuing
work to position itself for the inevitable
transformation of Australia’s media
environment. During development of the
Plan, the Board held a special planning
event to consider a range of industry
analysis and recommendations, which
included presentations from management
as well as two international media industry
specialists.
The Corporate Plan includes three levels
of performance measurement.
The first level measures the effectiveness
or outcome of ABC services in providing
benefit to the Australian community. There
are eight such performance measures, two
for each of the four Corporate Objectives.
These measures and the ABC’s performance
against them in 2004–05 is set out in the
Corporate Plan Summary (page 13).
The second level measures how well
the ABC delivers its output across Radio,
Television and New Media and Digital
Services. These performance measures
encompass seven key result areas relating
to programs and services, audience reach
by media platform and network, innovation
and efficiency. The ABC’s performance
against them is set out in Performance
Against ABC Corporate Plan 2004–07
(page 108).
The third level of evaluation relates to the
actions and performance targets set for
each of 15 strategic priorities. For reporting
purposes, these targets are assessed as
‘Achieved’, ‘On Track’ or ‘Not Achieved’
against agreed performance criteria. The
ABC’s 2004–05 performance against these
targets is set out in Performance Against
ABC Corporate Plan 2004–07 (page 112).
Twice yearly, the Board receives
performance reports from management
against the Corporate Plan. It also receives
timely information about significant or
unexpected developments through reports
or presentations made to meetings
throughout the year.
Annual Report 2004–05
46
Management StructureIn August 2004, the ABC restructured
executive management to achieve improved
strategic focus around four broad streams
of activity: content and channel management,
strategic positioning, operational support
and revenue-generating enterprises.
The new Executive comprises the
Managing Director and the Directors
of Radio, Television, New Media and
Digital Services, News and Current Affairs,
Strategy and Communications (formerly
Corporate Affairs), and a new Chief Operating
Officer position. The Director of Enterprises
is not a member of the Executive but reports
to the Managing Director (corporate liaison
on business activities is achieved through
a separate Enterprises Executive).
The Chief Operating Officer functions as
the ABC’s Chief Financial Officer and is
responsible for the operational efficiency
of support Divisions. The Directors of
Technology and Distribution, Production
Resources, Human Resources and Business
Services report directly to the Chief
Operating Officer.
The Corporate Affairs Division was renamed
Strategy and Communications to reflect a
sharpened focus on strategic positioning,
business development, brand management,
and governance and performance issues
across the Corporation. The State and
Territory Directors report to the Director
of Strategy and Communications.
ABC Development Division was disbanded
and its staff and functions absorbed into
other Divisions.
Governance ReportingMonthly Governance Reports to the Board
from individual Directors affirm that Divisions
have adhered to all governance requirements
(including legislative obligations) and/or
identify breaches and issues of concern.
Divisional Directors in charge of media
output or program areas are required
specifically to address adherence to
Editorial Policies, including matters of
independence, accuracy and impartiality.
ANAO Review of DigitalBroadcasting ConversionOn 15 February 2005, the Auditor-General
provided the Parliament with the Australian
National Audit Office (ANAO) performance
audit report Management of the Conversion
to Digital (Audit Report No.27 2004–05),
which examined the efficiency and
effectiveness of the conversion from analog
to digital broadcasting by the national
broadcasters. The report made no
recommendation in relation to the ABC.
The ABC welcomed the ANAO’s finding
that the Corporation had efficiently
undertaken one of the largest and most
complex capital equipment projects in its
history. The audit report acknowledged that
the ABC had: integrated digital conversion
with other business planning; met legislated
timeframes without any interruptions to
service; increased the quality and timeliness
of its broadcast material; improved the
efficiency of content production; delivered
to technology users the functionality they
expected; avoided ‘equipment excesses’;
and applied ‘better practice’ procurement
disciplines. The auditors also drew attention
to certain deficiencies in high-level project
management, at an early stage of digital
Corporate Governance (Continued)
Annual Report 2004–05
47
conversion, which the ABC rectified
well before the commencement of
the ANAO audit.
In return for the Government’s capital
contribution of about $90 million, the ABC
delivered a digital conversion program
throughout Australia to a total value of
about $225 million. It did so at a time
of considerable fluidity in the digital
technology environment, purchasing
necessary equipment from overseas
suppliers when the Australian currency
experienced a depreciation of around 30%
in relation to the US dollar.
SubsidiariesAt 30 June 2005, nine companies were
wholly-owned subsidiaries of the ABC,
including the six State symphony orchestras
and Symphony Australia.
Each subsidiary company is governed by
an independent Board of Directors, develops
a Corporate Plan and a Business Plan,
maintains governance procedures in
accordance with relevant legislation,
and reports with its own Annual Report.
Information about transactions between
the ABC and each subsidiary is available
at Note 20 (Related Party Disclosures) in
the Financial Statements in this report
(page 167), and are included in the ABC
consolidated Financial Statements of
the Corporation.
In May 2004, the Federal Government
commissioned Mr James Strong to chair
a review of the effectiveness and efficiency
of orchestral services in Australia. Seven
orchestral companies around Australia
operated as wholly owned subsidiaries
of the ABC, governed by separate boards
and with separate sources of funding. Many
interested parties, including the ABC, made
submissions to this review. The Strong
committee published its report, A New
Era: Orchestras Review Report 2005,
on 14 March 2005.
The Report recommended that the
ABC’s symphony orchestra companies be
reconstituted as public companies limited
by guarantee. It also recommended that
the orchestras find alternative sources of
supply for the services currently provided
by Symphony Australia. If implemented,
the review’s recommendations will see
the divestment of all seven of the ABC’s
orchestra subsidiary companies.
ABC Editorial Policies and Code of PracticeThe ABC Editorial Policies and the Code of
Practice include comprehensive information
and advice for staff regarding standards
required for the production and presentation
of all programming and content. This
includes particular reference to those
program standards embodied in legislation,
especially the ABC Act.
In 2004, the Board examined the issue
of political and other labels being used in
programs to describe groups and individuals.
This review involved wide consultation with
staff. It resulted in an addition to Editorial
Policies, from 23 March 2005, stating that,
as a general rule, the ABC does not label
groups or individuals. The ABC prefers clear,
thorough reporting, rather than the use of
labels to describe groups or individuals.
In June 2005, the Corporation commenced
its periodic review of Editorial Policies. A
revised edition will be published in 2005–06.
Annual Report 2004–05
48
Corporate Governance (Continued)
Table 1 Summary of contacts received
Contact type Email/Letter Phone Total
Number % Number %
Complaint 17 415 31.6 25 347 22.1 42 762
Appreciation 6 080 11.0 10 299 9.0 16 379
Other* 31 680 57.4 78 890 68.9 110 570
Grand Total 55 175 100.0 114 536 100.0 169 711
* Other includes suggestions, requests for information, scheduling and transmission enquiries and general comments.
Table 2 Subject matter of contacts received
Subject Email/Letter Phone Total % Total % Total
2004–05 2003–04
Requests for information, programs,
product availability, other matters 29 173 68 923 98 096 57.8 51.7
Complaints about program
standards and scheduling 14 042 18 560 32 602 19.2 23.6
Radio and television transmission
enquiries and complaints 2 892 14 419 17 311 10.2 9.7
Appreciation of programs and presenters 6 080 10 299 16 379 9.7 12.4
Complaints of factual inaccuracy 1 037 830 1 867 1.1 0.9
Party political bias 877 803 1 680 1.0 0.7
Bias (other than party political)* 632 389 1 021 0.6 0.7
Lack of balance 442 313 755 0.4 0.3
Grand Total 55 175 114 536 169 711 100.0 100.0
* Includes claims of bias on such issues as sport and religion.
1 Combined audience contacts received by Audience and Consumer Affairs,
News and Current Affairs and the Reception Advice Line (phone, letter and email).
Complaints ManagementAll complaints received by the ABC, such
as concerns about factual inaccuracy, lack
of balance, bias or inappropriate content, are
referred to ABC Audience and Consumer
Affairs. This unit is independent of ABC
program areas and investigates all written
complaints referring to possible breaches of
the ABC’s Editorial Policies, Code of Practice
or Charter. The unit also coordinates
responses to a range of programming
and policy enquiries.
In 2004–05, the ABC received almost 170
000 audience contacts—a 5% increase
compared with the previous year. This total
included 55 175 letters and emails (a 7%
increase on the previous year) and 114 536
calls to switchboards in state and territory
capitals and particular ABC programs and
services (a 4% increase).1
Key concerns reflected in the audience
contacts this year were the decision to cease
production of George Negus Tonight, which
generated 4 217 written and telephone
complaints; the departure of Clive Robertson
from ABC Classic FM Breakfast which
resulted in 1 196 complaints; and 772
complaints about the decision to move
production of Gardening Australia from
Hobart to Melbourne. The ABC also received
526 contacts welcoming the introduction of
the new digital channel, ABC2, in March 2005,
Annual Report 2004–05
49
including many requests and suggestions
for particular programs.
The ABC’s coverage of the 2004 Federal
Election campaign resulted in 1 378 audience
contacts, of which 993 were complaints. This
contrasts with the 2001 Federal Election
when 1 542 complaints were received.
Of the 42 762 complaints received, 2 701
were claims of party political or other bias,
755 alleged lack of balance and 1 867 were
claims of factual inaccuracy. These complaints
related to a broad range of ABC programs
and services.
Upheld complaints
During 2004–05, 15 571 written complaints
were finalised by Audience and Consumer
Affairs, of which 494 (3.2%) were upheld.
All upheld complaints are brought to
the attention of the senior editorial staff
responsible and corrective action is taken
when appropriate. In 2004–05, actions
taken in response to upheld complaints
included written apologies to complainants;
on-air corrections and apologies; counselling
or reprimanding of staff; adding consumer
advice warnings to future broadcasts;
removal of inappropriate content or
correction of material on ABC Online;
and reviews of and improvements to
procedures. All upheld complaints are
reported in detail to the ABC Board.
In January 2003, the ABC began publication
of a quarterly Public Report on Audience
Comments and Complaints, in order to
increase transparency and accountability
of the ABC complaints process. The report
provides summaries of audience contacts
and upheld program complaints finalised
by ABC Audience and Consumer Affairs
and the ABC’s Complaints Review Executive.
It is published on the ABC website.
Timeliness
As outlined in the ABC Editorial Policies, the
ABC endeavours to respond to all audience
contacts within 28 days. Between 1 July 2004
and 30 June 2005, ABC Audience and
Consumer Affairs responded directly to
23 159 audience contacts. Of these, 18 610
(80%) received responses within 28 days.
Complaints Review Executive
The ABC’s Complaints Review Executive
(CRE) provides an additional level of internal
review for complainants. The CRE has
broad scope to examine the broadcast in
question, the manner in which the complaint
was originally dealt with by Audience and
Consumer Affairs, and to determine
whether the ABC acted properly. The
CRE operates independently of both the
Audience and Consumer Affairs unit and
program makers; and all CRE findings
are reported to the Board.
The CRE reviewed a total of 41 complaints,
of which 39 were referred for review by
Audience and Consumer Affairs, and two
were assessed by the CRE in the first
instance under Editorial Policy 12.4.6.
Of the referred complaints, five were
upheld in part or full, while both complaints
assessed initially by the CRE were upheld.
The CRE also adjudicated on three disputes
between Audience and Consumer Affairs
and ABC Divisions over responses to
complaints. On two of the matters, the CRE
found in favour of Audience and Consumer
Affairs, leading to the initial complaints
being upheld, while on the third, the CRE
found in favour of the Division and the
complaint was not upheld. A summary of
the CRE’s findings is published quarterly
on the ABC website.
Annual Report 2004–05
50
Independent Complaints
Review Panel
Established by the ABC Board in 1991,
the Independent Complaints Review
Panel (ICRP) is an independent body which
reviews complaints about ABC content at
no cost to the complainant. Members of the
ICRP are appointed for their knowledge of,
or experience in, journalistic ethics and
practice, media operations, program
production, complaints handling or
other review processes.
In May 2005, the ABC Board approved
a number of reforms in relation to the
Independent Complaints Review Panel
(ICRP). These involved new appointment
and administrative procedures to strengthen
the Panel’s role as an independent body
and to make its administrative functions
more efficient. The reforms took effect from
1 June 2005 and included: nomination of
potential Panel members by independent
bodies; the addition of a term of review to
include complaints alleging serious and
specific cases of factual inaccuracy; the
express extension of the Panel’s role to
include complaints made about material
published on ABC Online; and removal
of the need for complainants to sign a
waiver forgoing the right to pursue legal
remedies, prior to the ICRP accepting a
complaint for review.
As of 1 June 2005, the members of the
ICRP are the Hon. Michael Foster QC,
Susan Brooks and Jane Singleton AM.
Prior to 1 June 2005, the ICRP comprised
Ted Thomas AO (Convenor), Margaret
Jones (Deputy Convenor), Professor
Michael Chesterman, Bob Johnson
and Stepan Kerkyasharian AM.
In the period 1 July 2004 to 30 June 2005,
the ICRP received 17 requests to review
complaints of which seven were accepted
for review. The 10 requests not accepted
for review either did not constitute serious
cases of factual inaccuracy, bias, lack of
balance or unfair treatment, or involved
matters outside of the ICRP’s area of
responsibility.
The ICRP partially upheld three complaints,
did not uphold two and is still investigating
the remaining two matters.
Appendix 18 (page 189) provides details
of matters reviewed by the ICRP and the
decisions of the Panel.
Australian Broadcasting Authority
Until 30 June 2005, members of the public
who complained to the ABC about matters
covered by the Corporation’s Code of Practice
and who were dissatisfied with the ABC’s
response or the handling of their complaint
could seek review from the Australian
Broadcasting Authority (ABA). From 1 July
2005, this role will be transferred to the
Australian Communications and Media
Authority.
During 2004–05, the ABA finalised its
investigations into 19 complaints about the
ABC (the same number as in 2003–04). In
12 of these cases, the ABA’s investigation
concluded that there had been no breach
of the ABC’s Code of Practice. The ABA
concluded that the ABC had breached its
Code of Practice on seven occasions, and
in each case was satisfied that the action
the ABC had taken to remedy the situation
was appropriate.
Corporate Governance (Continued)
Annual Report 2004–05
51
On 1 March 2005, the ABA finalised an
extended investigation into complaints
brought by a former Minister for
Communications, Information Technology
and the Arts about coverage of the war
in Iraq by the AM radio current affairs
program. The ABA investigated 43 alleged
breaches of the ABC’s Code of Practice. It
found four breaches and concluded that,
overall, AM was balanced. The ABA also
suggested that the ABC consider more
clearly differentiating between news and
current affairs in its Code of Practice, which
the Corporation undertook to consider
during the next review of the Code.
Emergency BroadcastingThe ABC signed a Memorandum of
Understanding with Emergency Management
Australia (EMA) in 2003 stating, in part, that
the ABC would be ‘the primary mechanism
for the dissemination of information to the
Australian public during major disasters
and emergencies’.
Following the signing of this
national Memorandum of Understanding,
similar agreements have been signed or
partnerships put in place in every state
and territory, other than New South Wales.
In 2004–05, this included the ACT, Western
Australia, Tasmania, South Australia,
Queensland and the Northern Territory.
Negotiations were planned to commence
in New South Wales.
The importance of the ABC’s role in
broadcast of bushfire information was
highlighted in the National Inquiry on
Bushfire Mitigation and Management
conducted by the Council of Australian
Governments (COAG), which included
the recommendation that ‘each state
and territory formalise non-exclusive
agreements with the [ABC] as the official
emergency broadcaster, providing an
assured standing arrangement.’
Transmission FailuresAs the national broadcaster, the ABC is
expected by the Australian public to provide
continuous and uninterrupted radio and
television services. This is particularly
important in light of the Corporation’s role
as an emergency broadcaster. In 2004–05,
the ABC focused on minimising disruption
of its services throughout Australia.
Following specific incidents relating to
disruptions of power at transmitter sites
owned and operated by Broadcast Australia,
the Managing Director led a series of
meetings with the management of Broadcast
Australia. Broadcast Australia undertook to
conduct a comprehensive audit of its ABC
transmission facilities with emergency
power generators. When completed, the
audit will provide information for Broadcast
Australia’s capital works program.
The Managing Directors of the ABC and
Broadcast Australia jointly wrote to relevant
electricity distribution companies in all
states and territories. ABC Transmission
Networks then initiated contact between the
ABC State and Territory Directors and the
power companies serving their respective
jurisdictions. Discussions sought to establish
agreed priorities for the restoration of mains
power to ABC studios and Broadcast
Australia transmitter sites. They also
identified options to improve the compatibility
of equipment settings to reduce the incidence
of emergency generators being activated
by momentary fluctuations or disruptions
to power supply.
Risk ManagementThe ABC takes a Corporation-wide
approach to implementing risk management.
In March 2003, the ABC Board was advised
of the ABC’s top eleven risks in relation to
the operational controls in place to manage
them. At the time, the majority of those
risks were assessed at being low-to-medium.
Annual Report 2004–05
52
The two risks assessed as being medium-
to-high—Business Continuity Planning
and Occupational Health and Safety (OH&S)
—continue to have that status. The ABC’s
top risks will be reviewed again in 2005–06
in line with a three-year cycle.
During 2004–05, the following initiatives
were implemented to help reduce risks
associated with OH&S and Business
Continuity Planning:
• The establishment of a National OH&S
Management Group and an OH&S
improvement plan;
• The development and implementation
of a risk awareness and online incident
reporting system, ABC WorkSafe; and
• The continuing development of an ABC
Business Continuity Plan.
The Comcover 2005 Risk Management
Benchmarking Survey of 135 government
and other organisations rated the ABC’s
risk management practices at the highest
level of ‘continuously improving’. This places
the ABC in the top 2% of Commonwealth
agencies. The ABC recorded improvement
in six categories, including Risk Management
Frameworks, Insurance Risk Sharing,
Communication, Training and Awareness
and Resources.
The annual workers’ compensation premium,
payable for 2004–05, totalled $2 537 000.
This constituted a 28% increase on 2003–04,
attributable to an increase in average claim
costs since 2002–03. The ABC’s 2004–05
premium rate of 0.8% of its total salary
costs compares with a Commonwealth
average of 1.67% of salary costs. As a
result of lower claims costs than originally
forecast, the ABC received a $392 000
rebate from Comcare.
Further information is provided in
Appendix 12 (page 183).
Internal Audit ActivitiesReview of ABC Audit Processes
As part of the Board Audit and Risk
Committee’s ongoing review of ABC audit
processes, it engaged KPMG to review the
internal audit processes and procedures.
The review found that ABC Group Audit was
well positioned within the ABC, efficient
and appropriately staffed. It operated with
a focused, risk-based approach towards
the performance of internal audits. KPMG
found that the ABC’s approach to fraud
awareness was in line with current better
practice. It also found that the ABC’s broad
anti-fraud programs and controls were
above average when compared to similarly-
sized organisations. In many cases, they
approached better practice standards.
Internal Reviews
ABC Group Audit commenced a total of
51 scheduled reviews of the Corporation’s
activities during 2004–05. These included
seven Information Technology audits and 44
comprehensive compliance, operational and
consulting reviews. In addition, 15 random
audits were conducted at ABC Shops and
Regional Radio Stations. These internal
audit reviews examined internal controls
and compliance with ABC policies and
procedures, efficiency, effectiveness and
the value for money provided through
the activities concerned.
Fraud Control and Awareness
During the year, the ABC became involved
in a significant matter involving allegations
of fraud by an employee. This matter
remains the subject of legal proceedings.
Corporate Governance (Continued)
Annual Report 2004–05
53
As at 30 June 2005, the Fraud Control
Plan 2003–05 was in the process of being
updated to ensure that the ABC continued
to satisfy the requirements of the
Commonwealth Fraud Control Guidelines.
This exercise also serves as a fraud
awareness campaign across the Corporation.
Fraud awareness continued to be highlighted
within the ABC, with presentations to staff
across the Corporation during 2004–05.
Further details of the ABC’s internal audit
activities are in Appendix 5 (page 179).
Environmentally Sustainable DevelopmentThe ABC continued to ensure its compliance
with the requirements of section 516A of
the Environment Protection and Biodiversity
Conservation Act 1999 (see Appendix 16,
page 186).
Australian Equivalents of International FinancialReporting StandardsThe ABC is in the process of changing
its accounting polices and financial
reporting from current Australian
Accounting Standards (AGAAP) to
Australian Equivalents of International
Financial Reporting Standards (AEIFRS).
The new standards will be applicable for
the financial year ending 30 June 2006.
In preparation for the introduction of
AEIFRS, the ABC is required to make
specific disclosures in its 2004–05
financial statements. These disclosures
appear in Note 2 of the Financial
Statements (page 148).
Annual Report AwardsThe ABC’s Corporate Plan and Annual
Report constitute the two principal
governance documents through which
the Board acquits its statutory obligations.
The 2003–04 Annual Report, like the
preceding year’s report, received a Gold
Award in the 2005 Australasian Reporting
Awards. This recognised the ABC’s ‘overall
excellence in reporting’. The award citation
described the ABC Annual Report as ‘well
constructed, interesting and informative’
and noted that ‘outstanding areas included
the corporate plan, corporate governance
and divisional reporting’.
International BenchmarkingIn recent years, the ABC has continued to
participate in a performance benchmarking
process as a member of an International
Benchmarking Group of eight national
public broadcasters. The Corporation
is currently unable to provide updated
comparative information due to delays in
receiving some participants data by the
due dates. The resulting gaps in data have
temporarily affected the overall effectiveness
and comparability of the benchmarks.
Correspondence with the majority of
participants indicates a strong intention
to remain involved in the process, as well
as to review and refine the benchmarks and
expand the group's membership. The ABC
will continue to coordinate this initiative
and is working on strategies to update
the benchmarks.
Annual Report 2004–05
54
Completion of
Annual Financial Statements
The audit of the Corporation’s Annual
Accounts was completed within a Government
timetable, in line with better practice. The
Australian National Audit Office (ANAO)
delivered an unqualified audit opinion
and the ABC’s Audit and Risk Committee
endorsed the signing of the financial
statements on 28 July 2005.
Financial Outcome 2004–05
Consistent with previous years, the ABC
operated within its total sources of funds
and Government appropriations for the
2004–05 financial year.
Sources of Funds 2004–05
The ABC was appropriated $756.111m
in the May 2004 Federal Budget. In the
Commonwealth Budget Additional Estimates
process in December 2004, the ABC was
provided additional Outcome 3 digital
funding, bringing the total appropriation
for 2004–05 to $757.532m. In addition
to funding for the ABC’s core activities,
Government appropriation for 2004–05
included an additional $4.2m to the ABC’s
indexing funding base to assist in meeting
the increasing costs of purchasing both
domestic and international programming.
The ABC also received some $201.712m
from other sources, including ABC
Enterprises.
The chart ‘ABC Source of Funds’ depicts
ABC’s budgeted funds for the various
categories against actual sources for
2004–05 and its budgeted sources
for 2005–06.
Application of Funds
The chart ‘Split Actual Expenditure 2004–05’
broadly represents the ABC’s application
of funds by function for the 2004–05
financial year.
The Year AheadAppropriation
The 2005–06 Federal Budget provided for
base funding to be maintained, and provided
for the continuation of National Interest
Initiative Funding until the end of 2007–08.
The ABC’s comparative funding for the
2005–06 financial year is:
$m
Total Appropriation
per Outcomes 1, 2 and 3 773.5
Less Analog Transmission Funding –80.2
Less Digital Transmission Funding –68.3
Total Comparative
Appropriation Funds 625.0
Budget Strategy
With no new external sources of ongoing
budget funds, the 2005–06 Budget Strategy
is aimed at maintaining current activities.
The Corporation will consolidate its work in
2004–05 toward finalisation of an Integrated
Capital Strategy focusing on developing
responses to increasing pressure on the
Corporation’s capital budgets.
Triennial Funding Submission
The Corporation’s current funding triennium
will end on 30 June 2006. A new Triennial
Funding Submission, for the 2006–09 period,
is due to be delivered to the Government
by October 2005 for consideration as part
of the 2006 Federal Budget process. The
Submission will again reflect the
Financial Summary
Annual Report 2004–05
55
Other 17%
Support Services 8%
Transmission 21%
Television Programs Produced (including News, Current Affairs and Captioning) 28%
Acquisitions 6%(including ABC2)
Radio Broadcast (including News and Current Affairs) 18%New Media 2%
Split Actual Expenditure 2004–05
Digital
Transmission 8%
Analog
Transmission 10%
New Media 2%
Television 51%
Radio 28%
0 100 200 300 400 500 600 700
2005–06 Budget
$ Millions
2004–05 Actual
2004–05 Budget
OtherRevenue
EnterprisesRevenue
Asia PacificRevenue
DigitalTransmissions
AnalogTransmissions
GeneralAppropriation G
overnment Funding
Independent
Appropriation by Output 2005–06ABC Source of Funds
ABC’s corporate strategy since the 1990s,
anticipating the inevitable transformation of
Australia’s media environment as audiences
respond to a growing choice of digital
services. It will also address a number of
significant operational and capital issues.
Two major projects are intended to inform
the Triennial Funding process. The first is
a Funding Adequacy and Efficiency Review
to be commissioned by the Department of
Communications, Information Technology
and the Arts, in cooperation with the
ABC and the Department of Finance and
Administration. The Review will provide
advice as to the adequacy of the ABC’s
funding to undertake its legislative (Charter)
functions and the efficiency of the ABC’s use
of this funding. The second project is the
Integrated Capital Strategy initiative being
undertaken by the ABC to evaluate its
requirements for property and technology
infrastructure over the coming decade.
Comparative Appropriation
The 2005–06 operational funds of $625m
represents a decrease in real funding of
$264.5m or 29.7% since 1985–86 as
depicted in the chart ‘ABC Operational
Appropriation’.
2005 2004 2003 2002 2001
ABC Operating $’000 $’000 $’000 $’000 $’000
Cost of Services 926 161 858 728 822 856 781 147 720 938
Operating Revenue 201 712 153 712 146 299 148 334 113 573
Net Cost of Services (a) 724 449 705 016 676 557 632 813 607 365
Revenue from Government 757 532 726 895 733 469 710 565 622 921
2005 2004 2003 2002 Recast ‘2001
Financial Position $’000 $’000 $’000 $’000 $’000
Current Assets 209 683 197 602 214 501 184 949 161 763
Non-Current Assets 816 191 824 884 744 564 694 941 653 796
Total Assets 1 025 874 1 022 486 959 065 879 890 815 559
Current Liabilities 115 635 125 672 209 282 178 751 126 334
Non-Current Liabilities 194 712 208 599 218 673 208 607 229 604
Total Liabilities 310 347 334 271 427 955 387 358 355 938
Total Equity 715 527 688 215 531 110 492 532 459 621
Ratios
Current Ratio (b) 1.81 1.57 1.02 1.03 1.28
Equity (c) 70% 67% 55% 56% 56%
(a) Net cost of services is cost of services less operating revenue.
(b) Current assets divided by current liabilities.
(c) Equity as a percentage of total assets.
Five Year Analysis
$625
$889
500
550
600
650
700
750
800
850
900
03–0
4
02–0
3
01–0
2
00–0
1
99–0
0
98–9
9
97–9
8
96–9
7
95–9
6
94–9
5
93–9
4
92–9
3
91–9
2
90–9
1
89–9
0
88–8
9
87–8
8
86–8
7
85–8
6
04–0
5
05–0
6
Years
ABC Operational Appropriation Includes capital indexed at 2004–05 levels (December 2004 6 months CPI index); 29.7% reduction from 1985–86 to 2005–06.
Annual Report 2004–05
56
Annual Report 2004–05
57
Director
Television
Sandra Levy
Director Strategy
and Communications
Geoffrey Crawford
Director
Radio
Sue Howard
ABC BOARD
Board Secretariat
Director
News
and Current
Affairs
John Cameron
Director Technology
and Distribution
Colin Knowles
Director ABC
Enterprises
Robyn Watts
Director
New Media
and Digital
Services
Lynley Marshall
State and Territory
Directors
WA and State and
Territory Directors’
Rep - Geoff Duncan
Vic - Murray Green
Qld - Chris Wordsworth
SA - Sandra Winter-Dewhirst
Tas - Rob Batten
NT - Mark Bowling
ACT - Elizabeth McGrath
ABC Advisory Council
Chief of Staff Gary Linnane
Director
Business
Services
Trevor Burgess
Director Production
Resources
David Cruttenden (a)
ABC Divisional Structure
Note
The Board Secretariat provides administrative support to the Board.
Members of the ABC Executive
Managing Director Russell Balding
Head of
Group Audit
Aziz Dindar
Chief Operating
Officer
David Pendleton
Director
Human
Resources
Colin Palmer
Head
of Radio
Australia
Jean-Gabriel
Manguy
Chief
Executive
ABC Asia
Pacific
Ian Carroll