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Annual Report 2004–05 24 for any child

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Page 1: Annual Report 2004–05 for anychild - About the ABCabout.abc.net.au/.../06/AnnualReport2004-2005_Part2... · 5 Nielsen Media Research radio ratings surveys 2004–05. The ninecities

Annual Report 2004–05

24

for any child

Page 2: Annual Report 2004–05 for anychild - About the ABCabout.abc.net.au/.../06/AnnualReport2004-2005_Part2... · 5 Nielsen Media Research radio ratings surveys 2004–05. The ninecities

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

Page 3: Annual Report 2004–05 for anychild - About the ABCabout.abc.net.au/.../06/AnnualReport2004-2005_Part2... · 5 Nielsen Media Research radio ratings surveys 2004–05. The ninecities

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

Page 4: Annual Report 2004–05 for anychild - About the ABCabout.abc.net.au/.../06/AnnualReport2004-2005_Part2... · 5 Nielsen Media Research radio ratings surveys 2004–05. The ninecities

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

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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.

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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.

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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

Page 8: Annual Report 2004–05 for anychild - About the ABCabout.abc.net.au/.../06/AnnualReport2004-2005_Part2... · 5 Nielsen Media Research radio ratings surveys 2004–05. The ninecities

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

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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.

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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

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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)

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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.

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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.

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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

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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

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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.

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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

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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

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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

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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

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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

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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.

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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)

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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.

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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,

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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.

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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)

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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.

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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)

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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.

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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

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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’.

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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

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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