Australian GovernmentMedia Reform

ACMA/ITU International Training Program

8 September 2006

Jenny Brigg and Lesley Osborne

INTRODUCTION

• Australian Government Media Reform discussion paper released on Tuesday 14 March 2006.

• New Media Framework for Australia released on

13 July 2006.

• Parliamentary tabling of draft amendments to the Broadcasting Services Act 1992 (the BSA) anticipated later this year.

PRESENTATION OUTLINE

• Overview of Government Media Reform Agenda

• Brief Historic Overview

• Current Legislation

• Proposed Legislative Changes

• Policy Changes

• Transition to Digital Television

MEDIA REFORM OVERVIEW

• Remove broadcasting foreign ownership restrictions

• Relax current restrictions on cross-media

• Protect local content

• Introduce broader enforcement powers for ACMA

• Introduce use-it-or-lose-it component to Anti-siphoning list

• Encourage digital broadcasting take-up

BRIEF HISTORIC OVERVIEW

• 1935 Media control limits for commercial radio

• 1951 Foreign ownership limits for broadcasting

• 1992 Foreign ownership limits for Pay TV

• 1992 Removal of foreign ownership limits for radio

• 1987 Cross-media control limits introduced

• 1994 the Minister publishes 1st ‘anti-siphoning’ list.

• 2001 Digital television broadcasting introduced

CURRENT LEGISLATION- Media Control

The following media control rules will continue to apply:

• Two-to-a-licence area control limit for Radio• One-to-a-licence area control limit for TV• Combined licence area population for TV not to

exceed 75%• Control of both TV & datacasting transmitter

prohibited

CURRENT LEGISLATION- Foreign Ownership

• A foreign person not to be in a position to control TV• 2 or more foreign persons must not have company

interests in commercial TV that exceed 20%• Not more than 20% of the directors of each

commercial TV licensee may be foreign persons

CURRENT LEGISLATION- Cross-Media

A person must not be in a position to exercise control of:– A commercial television broadcasting licence and a

commercial radio broadcasting licence in the same licence area

– A commercial TV broadcasting licence and a newspaper that is associated with the licence area of the licence

– A commercial radio broadcasting licence and a newspaper that is associated with the licence area of the licence

CURRENT ENFORCEMENT POWERS

• ACMA’s current enforcement powers in relation to broadcasting matters include the power to:

• Issue a notice• Suspend or cancel a licence• Refer a person for criminal prosecution• Impose licence conditions• Make standards

PROPOSED LEGISLATIVE CHANGES

• Remove broadcasting foreign ownership restrictions

• Relax current restrictions on cross-media

• Protect local radio content

• Extend local content requirement for regional TV

• Broader enforcement powers for ACMA

Remove Foreign Ownership Restrictions

• Media-specific foreign ownership restrictions in the BSA to be removed.

• Newspaper-specific foreign ownership restrictions to be removed from the Foreign Acquisitions Takeover Act 1975.

• The media to remain a ‘sensitive sector’ under foreign investment policy

• Direct foreign investment in media sector subject to approval by Treasurer.

Relax Current Cross-Media Restrictions

• Cross media control limit to be replaced by threshold test (minimum of 5 independently controlled media entities in metropolitan licence areas and 4 in regional licence areas).

• Commercial licences not delivered via broadcasting services bands exempted from control laws.

Protect Local Content (Radio)

• Local Content Plans (minimum local content levels for regional commercial radio) will be required where:

– A licensee becomes part of a cross-media group

– There is a change in control of the licence

– The format of the service is narrowed

– The Minister directs ACMA to consider imposing local content requirements

Protect Local Content (TV)

• The local content licence condition requirement for regional TV licensees (currently affects mainland eastern states of Australia) is to be extended to include Tasmania.

• The licence condition requires minimum levels of local content including:

– news

– local community service announcements

– local emergency warnings

Broader Enforcement Powers for ACMA

• ACMA’s current enforcement powers are to be extended to include the power to:

– Impose civil penalties (where only criminal penalties currently available)

– Obtain injunctions where commercial broadcasting services are provided without an appropriate licence

– Accept enforceable undertakings from industry

– Issue infringement notices for minor breaches of BSA related to reporting requirements

POLICY CHANGES

Free-to-air television broadcasters have first right to bid for events on Anti-siphoning list (the list) (includes sporting events).

• From 1 January 2007, a use-it-or-lose-it component will be introduced for sports events on the the list.

• The scheme will identify criteria against which the ‘use’ of sports rights will be measured.

• If free-to-air broadcasters don’t ‘use’ the sports rights, events could be removed from the list.

TRANSITION TO DIGITAL TELEVISION

• Digital terrestrial television broadcasting (DTTB) available to 96 percent of Australians

• 20 percent household penetration of DTTB

• 33 percent including subscription television

• New digital switch target 2010 - 2012

• Digital Action Plan (DAP) to drive take-up of DTTB

NEW DIGITAL CONTENT

• Open up two reserved digital channels - new mobile television or new in-home services

• Commercial free-to-air television - one standard definition multichannel from 2009

• Full multichannelling at time of digital switchover • Commercial free-to-air - one high definition

multichannel from 2007 (removing simulcast requirement)

• Remove restrictions on types of programming which can be shown on ABC and SBS multichannels

DIGITAL ACTION PLAN (1)

• DAP to be released in late 2006 with necessary tasks to achieve analogue switch off

• Challenges for DDTB in Australia• High dependence on terrestrial free-to-air television • Horizontal market for individual DTTB equipment

purchases• Limited new services

DIGITAL ACTION PLAN (2)

• Variety of tasks for government, broadcasters, retailers and consumers

• DCITA, ACMA and possible new switch over body (as in UK)

• Focus on moving the market• ACMA’s role to date planning of digital transmission

and research• ACMA future role – planning, regulation and

research

RELATED RESEARCH TASKS (DIGITAL)

• Trends in awareness and adoption• Fieldwork studies into various impediments to DTTB

uptake – residential equipment; multi-unit dwellings• Consumer information and education• Forward planning for the digital dividend

DO YOU HAVE ANY QUESTIONS?

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