Corporate Plan · to video-on-demand services, than there are pay tv subscriptions. Australians are increasingly seeking content wherever they want, whenever they want. This is evident

1

Corporate Plan 2018–19

AUSTRALIA

Contents

1. Opening statement ........................................................ 4

2. Purpose .................................................................................7

3. The environment ........................................................... 10

Media sector ....................................................................................................11

Audience preferences ........................................................................ 12

Technology .......................................................................................................14

Regulation .........................................................................................................15

Funding ................................................................................................................16

What does this change mean? ...................................................17

4. Strategy: Investing in audiences ...........................20

5. Operating plan: FY19–FY22 ......................................22

Creating distinctive content that matters for all Australians ..............................................23

Providing an outstanding audience experience ..........................................................................24

Delivering programs that reach and engage with more people ................................................24

Building a great place to work .................................................27

6. Measuring our progress ............................................28

7. Managing our risk .........................................................35

Glossary ....................................................................................39

32 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19

54 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 5

As the accountable authority for the Australian Broadcasting Corporation, I present the 2018–19 Corporate Plan, prepared under section 31B of the Australian Broadcasting Corporation Act 1983 (Cth) (ABC Act) and section 35(1)(b) of the Public Governance, Performance and Accountability Act 2013 (Cth) (PGPA) and associated rules.

This Corporate Plan is prepared for the 2018–19 reporting period (FY19), and covers the reporting periods FY19, FY20, FY21 and FY22.

Rapid changes in both technology and audience preferences have helped shape the ABC’s plans to fulfil its Charter and regulatory requirements over the coming four years.

As Australia’s independent national public broadcaster, our goal is to be the source of Australian conversations, culture and stories and in this way fulfil our purpose as defined in the ABC Act. Our strategy puts audiences first, providing high quality, distinctive content and delivering outstanding experiences for all Australians.

To that end, the ABC will continue to transform its technology infrastructure and processes, supporting content-makers in providing the best and most efficient public broadcasting services to its audiences.

In 2022, the ABC will be 90 years old. The plan outlined in the following pages is designed to ensure that it remains as relevant for Australians then, as it has been since it first went to air.

Disclaimer This plan contains various long-range plans, projections, high-level estimates and other forward-looking information (Estimates). Those Estimates are based on the best considered professional assessment of present economic and operating conditions, present Australian Government policy, and a number of assumptions regarding future events and actions which, at the date of this document, are expected to take place. The Estimates involve known and unknown risks, uncertainties and other factors beyond control that may cause the ABC’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the Estimates. Other than as required according to Reporting Obligations, the ABC is under no obligation to update the Estimates based on circumstances, developments or events occurring after the publication date of this document.


Justin Milne

Chair, Australian Broadcasting Corporation

1. Opening statement

7

2. Purpose

7

Digital services including ABC iview, Streaming, ABC NEWS and Current Affairs online, ABC Open, abc.net.au

and podcasts.

The ABC employs around 4,000 people who operate from 56 locations around Australia.

The ABC projects Australia’s culture and identity overseas through

international services including Radio Australia.

The ABC is rated by audiences as Australia’s most trusted and

credible media organisation.

The ABC reaches more than 20 million Australians a month.

The ABC is Australia’s largest public broadcaster. It operates independently

under a Charter approved by Parliament and is funded by the Federal Government

on behalf of the public.

The ABC is Australia’s largest creative organisation, collaborating

and supporting the independent creative community.

The ABC operates 6 national TV channels: ABC, ABC Comedy, ABC ME,

ABC KIDS, ABC NEWS and ABC HD.

4 national radio networks, 8 capital city radio stations, 54 local radio stations

and 7 digital radio channels.



71% of Australians

watch, read or listen to the ABC

each week.

92% of ABC funding is spent in areas directly linked to content

creation and delivery.

The ABC broadcasts from

56 locations around Australia.

The ABC has Australia’s

largest broadcast

footprint and can reach 99.58% of

Australians.

7.6 million Australians

use ABC digital services each

month.

More than 80% of Australians

consider the ABC a trusted source of information.

We have one of the world’s

largest dedicated rural reporting

teams.

We are the southern

hemisphere’s largest creative

employer.

2. Purpose

The Australian Broadcasting Corporation (ABC) is Australia’s independent public broadcaster and one of the country’s largest and most important cultural institutions.

Our purpose is to fulfil our functions as defined by the Australian Broadcasting Corporation Act 1983 (Cth) (ABC Act). While the country has changed significantly since the ABC’s founding in 1932, our purpose and the community’s need for our public broadcasting services, have largely remained the same.

Today, the ABC Act, and the Charter in particular, states that the ABC must provide innovative and comprehensive broadcasting and digital services that inform, entertain and educate all Australians as well as contribute to a sense of national identity. In doing so, we must also reflect the diversity of interests of the Australian community through a range of distinctive programs of broad appeal and specialist interest.

The ABC’s services span the Australian continent, transmitting to a potential 99.58 per cent of Australians across radio, television and online. In a typical week, 71 per cent of Australian adults engage with the ABC, with more than 12 million Australians watching ABC television and nearly 5 million listening to ABC radio. As Australians increasingly choose to consume content on digital platforms, our online services now attract more than 7 million Australians every month.

These numbers are a reflection of the value Australians continue to place on the ABC and the trust they have in our content. Our research shows the ABC remains Australia’s most trusted media organisation across all age groups and 81 per cent of Australians believe the ABC provides a valuable national service.

The ABC is best known for the high quality, distinctive Australian content epitomised by flagship programs, from Four Corners to Play School and Conversations. But we also provide educational material used in classrooms across the country every day, platforms promoting Australia’s world-class arts and cultural sector, as well as Indigenous drama and current affairs programs. And we play an important role initiating national conversations, bringing communities together, and delivering international stories for Australian audiences, while taking Australian stories to the world.

In fulfilling our purpose to date, we have become Australia’s largest creative employer. Today’s ABC has more than 800 journalists from Broome to Beirut delivering the most trusted news service in Australia, 2000 content makers presenting Australian stories amid increasing foreign choice, and a further 1000 people working to make the ABC’s content and services accessible to all Australians.

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3. The environment

The media landscape is changing rapidly. Over the past decade we have seen, and continue to see, new entrants, increased digitisation and the dissolution of geographic and distribution barriers.

Media sector

New entrants and investmentThe media environment is increasingly global and 2017 was a pivotal year in this transformation. The US tech giants, or FAANGs – Facebook, Apple, Amazon, Netflix and Google – are now investing significant sums in video, including live broadcasting.

The scale of investment is significant and increasing: Netflix will spend US$8 billion on content in 2018, comparable to Disney at US$7.8 billion. Amazon’s content budget is US$4.5 billion, and Apple and Facebook both US$1 billion each.

The content budgets of the ABC and other public broadcasters are dwarfed by these emerging media entities.

The emergence of these players with new global distribution platforms and unprecedented budgets for commissioning and acquiring content is creating challenges for the Australian media industry. The standards of production expected by audiences have increased, the costs of producing and acquiring content have increased, and the expense associated with securing the necessary broadcast and digital rights is also increasing due to increased competition for those rights across multiple distribution platforms.

Industry consolidationThe new global players and the ongoing shift in advertising dollars towards digital platforms are placing significant competitive pressures on Australia’s commercial free-to-air networks and other content suppliers. This has contributed to some commercial operators withdrawing from unsustainable markets, many of them in rural and regional Australia. The 2018 report from the Senate Select Committee Inquiry into the Future of Public Interest Journalism noted that, as commercial broadcasters increasingly withdraw from places that are no longer commercially viable, “...the ABC is often left as the last provider of local current affairs, particularly for many regional and rural communities.”



3. The environment

Audiences are changing the way they consume content. Australians increasingly access news and entertainment via a variety of platforms, in effect fragmenting the media landscape.

Audiences are migrating towards digital platforms for a large proportion of their media consumption:

• Australians aged 18+ spend an average of 21.36 hours each month watching videos online via a desktop, laptop, smartphone or tablet.

• 17 per cent of radio audiences listen via a mobile phone / tablet device each week.

• 37 per cent of Australians use digital services as their primary source of news.

• At least 82 per cent of Australians are now sourcing some of their news on mobile platforms with 43 per cent saying online news is their main source.

• There are now more Australian subscriptions to video-on-demand services, than there are pay tv subscriptions.

Australians are increasingly seeking content wherever they want, whenever they want. This is evident in a marked trend towards on-demand viewing in preference to scheduled content delivery services, particularly among younger audiences. It is also evident in the shift towards media consumption on mobile devices.

Audience preferences

Alongside shifts in audience preferences, the changed media environment has prompted new audience expectations with regard to access, quality and personalisation:

• Extended access: Audiences expect extended availability for content beyond just catch-up, with an increasing tendency for binge viewing.

• Personalisation: Tailoring of content to individual viewing preferences is increasingly important.

• State-of-the-art viewing experiences: The increased investment from global players is increasing quality and choice, and setting new, significantly higher, benchmarks for premium drama and entertainment.

In the last 30 years, the number of platforms and services operated by the ABC has grown sixfold. We have added four new television channels, seven new radio networks and a broad range of new content outlets across digital platforms, including iview, ABC Kids iview and podcasts. RADIO

EMPLOYEES

DIGITAL

TV

1987 2017

4,093Full-time equivalent Employees

6,092Full-time equivalent Employees

No digital services

And more...

And more...

And more...

2JJJ 105.7 FMSYNDEY

AUDIOPLATFORMS3RD

PARTYPLATFORMS

PODCASTS

SOCIALPLATFORMS


New challengesThe rapid changes in audience expectations and the entrance of new global players are posing significant technology challenges for established media organisations, including the ABC. In addition to catering for the move by audiences towards on-demand digital platforms and streaming services, these challenges include:

• The critical importance of leveraging data to deliver enhanced personal and connected audience experiences and maintain engagement in an increasingly competitive market.

• The need for increased investment to transition towards cloud-based technology solutions for scalable, flexible services that enable media organisations to continue to meet audience demands and remain relevant, while ensuring quality of service and security are enhanced.

Distribution channelsTechnology innovation and the proliferation of platforms have also altered the dynamics of creating and distributing content.

In 2018, content needs to be delivered almost instantaneously across digital platforms; it must subsequently be available on both digital and linear services; and it must be tailored to the needs of each of these distribution channels.

In the first half of 2018, there are three bills before parliament seeking to amend the Australian Broadcasting Corporation Act 1983 (Cth):

• Australian Broadcasting Corporation Amendment (Rural and Regional Measures) Bill 2017: This Bill would amend the Australian Broadcasting Corporation Act 1983 to ensure regional communities are provided for in the functions of the Corporation, and through representation on the ABC Board.

• Australian Broadcasting Corporation (Fair and Balanced) Bill 2017 : Seeking to expand the existing statutory duty of the ABC Board by including the requirement to be ‘fair’ and ‘balanced’ in relation to the gathering and presentation of news and information by the ABC.

• National Broadcasters Legislation Amendment (Enhanced Transparency) Bill 2017: Seeking to require the ABC and SBS to report details of annual salaries and allowances of employees and amounts paid to ‘on-air talent’, in excess of $200,000.

In this way, content makers no longer create material for a single medium. They need to craft the same story in a range of ways across multiple platforms to meet the expectations of audiences.

The move towards cloud-based technology services provides an opportunity for media organisations, such as the ABC, to improve their capacity to store content in different formats and transition between them – simplifying media production across multiple formats.

In addition, the ABC is working closely with the Government and other stakeholders in relation to a number of inquiries relevant to the broadcasting and digital sectors:

• The ACCC Digital Platforms Inquiry: which is looking at the effect that digital search engines, social media platforms and other digital content aggregation platforms have on competition in media and advertising services markets. The ACCC’s preliminary report is to be submitted to the Treasurer by 3 December 2018, with a final report due by 3 June 2019.

• The Inquiry into the Competitive Neutrality of the National Broadcasters: the scope of which is to explore the practices of the ABC and SBS and advise the Government on whether they are operating in a manner consistent with the general principles of competitive neutrality. This review will report in September 2018.

• The ABC and SBS Efficiency Study: In May 2018, the Australian Government announced that a review of ABC and SBS efficiencies will be undertaken, with reporting to occur in the second half of the year. This review follows the 12 internal and external reviews completed in the last 15 years. It is the first government-commissioned review since the Lewis efficiency review in 2014.

The ABC will continue to work with the Government as required to ensure the best possible regulatory outcomes for the ABC to continue to provide services for its audiences.

Technology Regulation

3. The environment

2000 2018• Broadcast • Broadcast

• Digital

– Streaming – Video on demand – Social


The ABC’s annual budget of one billion dollars is a significant investment made on behalf of all Australians.

Across platforms and genres, 92 per cent of that funding is spent on making content, supporting content makers, and distribution: in 2017/18, 62 per cent was spent directly on making content, 21 per cent on its distribution, and 9 per cent on support for content makers.

Making content

Content delivery (transmission/distribution)

Support for content makers(eg, production assistants)

Finance, human resources, legal and other non-content administrative costs

Australian storytellingThe emergence of the large US-based global players makes ABC storytelling – the drama of Australian neighbourhoods and Australian lives played out in Australian voices – more important than ever.

The ABC will seek to invest even more in content that is distinctive, high quality and relevant to Australian audiences. The ABC is committed to serving every Australian on the device of their choice, and to serving audiences overseas.

But this change means that the cost of fulfilling our Charter responsibilities is escalating as never before.

Digital transformationThe use of digital platforms is growing rapidly, so we must invest in these platforms to remain relevant.

However, the audience for traditional broadcast platforms remains large. To serve all Australians, the ABC needs to continue delivering traditional broadcasting services well into the future, at the same time as developing new digital platforms.

• Broadcast television reaches 82.8 per cent of Australians each week, who watch over 2.5 hours a day.

• Broadcast radio reaches 95 per cent of Australians each week, who listen to more than 2 hours a day.

As part of our Investing in Audiences strategy, the ABC will require funding for new investments in technology to meet the expectations of audiences as they migrate from broadcast to digital services.

The next section speaks to how we will transform.This downward trend appears set to continue with an indexation pause announced in the Federal Government’s 2018/19 Budget.

Against that background, in 2018/19 the ABC will complete triennial funding negotiations with the Government. The new funding agreement will commence with the 2019/20 Budget and will continue until June 2022. Over that time, we will require additional funding to complete the Investing in Audiences strategy (see next section for discussion of the Investing in Audiences strategy).

However, the ABC’s budget is declining as the demands on us are growing. Since 1986/87, the ABC’s funding has declined in real terms by 28 per cent. After Australia’s population growth is factored in, our per capita funding has halved in real terms.

Budget What do changes in the environment mean?

3. The environment

Change is certain;transformation is essential.

ABC budgeted expenditure by activity 2017/18

62%21%

9%8%

ABC operational revenue from government 1985/86 to 2017/18 (in 2017/18 dollar terms)

600

650

700

750

800

850

900

950

1,000

1,050

1,100

1,150

1,200

1,250

$ M

illio

ns

Years

$1,201

$865

For every 3 FTE jobs within the ABC, the

ABC helps to support two additional jobs in the broader economy.

In FY2016/17:

Source: Deloitte Access Economics Analysis, 2018

The ABC contributed more than $1 billion to the Australian

economy.

Of the 2,500 jobs indirectly supported by the ABC’s

activities, more than 500 are in production

companies, more than 400 are in the broadcast sector, and close to 300 are in the

professional services.

ABC’s economic impact

More than a third of the ABC’s total economic

contribution went towards supporting the

broader media production landscape e.g. production companies and suppliers.


The ABC helped support more than

6,000 full-time equivalent jobs

across the Australian economy.

The ABC contributed more than $700 million

in wages and salaries for ABC employees and

for those employed indirectly as part

of the broader ABC supply chain.


In fulfilling our purpose, the ABC’s strategic goal is to be the leading independent source of Australian conversations, culture and stories. Our Investing in Audiences strategy, launched in March 2017, is intended to achieve this.

The Investing in Audiences strategy encompasses a series of projects that together will make the ABC better for our audiences as well as for the people we employ. The strategy places a twin-focus on making it possible for the ABC to be the best public service broadcaster for all Australians – informing, educating and entertaining – and doing it with the greatest efficiency.

Among other initiatives, Investing in Audiences encompasses the technology changes we are making to secure the ABC’s ongoing relevance

for all Australians, the recent restructuring away from platform-specific teams towards working groups focussed on subject areas, as well as the new $15.4 million annual investment in regional and rural coverage. These are already transforming the way we deliver content to audiences and the way we work.

Over the coming four years, the strategy requires additional long-term investment to transform the ABC’s digital audience-facing products, and content management and production systems.

The four priorities underlying Investing in Audiences will shape the ABC’s operations between FY19 and FY22. These priorities are the pillars of the strategy and will help to provide measures of our success:


Pillar 1: Creating distinctive content that matters for all Australians

We are committed to create distinctive content that reflects our Charter obligations, to delivering the services audiences expect from us, and to finding new and innovative ways to tell stories.

Pillar 2: Providing an outstanding audience experience

Exceeding the expectations of our audience is a priority. By understanding where they live and how they use our services we can make it easier for audiences to discover more of what the ABC offers across TV, radio, websites, podcasts, apps and social media.

Pillar 3: Delivering programs that reach and engage with more people

Audiences have access to more information and entertainment than ever before. The ABC will use innovative ways to connect with all Australians, including both new and loyal audiences.

Pillar 4: Building a great place to work

Our people are our greatest asset. By developing the best creative environment for our teams, our audiences will receive more of the high-quality programming they expect.

4. Strategy:Investing in audiences


The ABC’s operating plan is determined according to the four strategic priorities outlined in the Investing in Audiences strategy. The operating plan is described here and the metrics to indicate our progress are detailed in the following section.

The ABC will report on its performance in relation to our purpose and strategic priorities between FY19 and FY22 in our annual performance statements which will be incorporated in our annual reports.

Pillar 1:Creating distinctive content that matters for all AustraliansCreating extraordinary, relevant and valued content is critical to the success of the ABC and underpins all the organisation’s activities. Our content is intended to reflect Australian life in all its diversity and contribute to our national identity.

To help achieve this, in February 2018, the ABC implemented a new internal structure for its content-making teams to better reflect audience preferences. The new teams were arranged around subject matter rather than media platforms in recognition that Australians increasingly expect all content to be available across multiple platforms.

There are a number of other projects, both new and ongoing, that will support better content creation at the ABC over the coming four years.

• Australian storytelling is in the ABC’s DNA and is central to our vision, which is to be the independent source of national conversations, culture and stories. The production, acquisition and delivery of high quality, distinctive Australian content covering a broad range of genres, including children’s, drama, news, documentaries and music, will continue to be core to our operations.

In keeping with our Charter requirements, we will also produce high quality specialist content that inspires, educates and informs including in the education, Indigenous, arts and science genres.

Through the work of Australia’s largest team of dedicated foreign correspondents and Radio Australia, we will also help Australians to understand our place in the world and help the world to understand Australia.

The vast majority of this content will continue to be delivered on both scheduled broadcast and digital platforms.

• In a constrained funding environment, it is vital the ABC continues to work to find further savings for investment in content. The ABC constantly seeks efficiencies in order to redirect funding away from back office expenses and towards content. Since 2014, this has allowed $70 million to be reallocated towards making high quality programs for Australian audiences. In coming years, there will be ongoing work to review and reduce non-content costs, as well as consider the prioritisation of spending within content areas.

• ABC News provides accurate, impartial and independent news and information that Australians can trust and depend upon in an era of increasingly contested facts. To enhance our reach and relevance, ABC News will continue to move towards an integrated newsroom model similar to that used by leading international media organisations such as The New York Times, the Canadian Broadcasting Corporation and the UK’s Daily Telegraph.

Alongside this, improved production infrastructure will be put in place to enable ABC News content to be shared across the organisation more often, stored more efficiently, and be transferred between linear and broadcast platforms more easily.

5. Operating plan:FY19–FY22


24 AUSTRALIAN BROADCASTING CORPORATION CORPORATE PLAN 2018–19 25

5. Operating Plan: FY19–FY22

The measures of the ABC’s success in continuing to create content that matters for all Australians include metrics related to how distinctive Australians think ABC content is, the editorial quality of the content and the hours produced across the different genres.

Pillar 2:Providing an outstanding audience experience The ABC is working towards creating a whole- of-ABC experience that’s discoverable, personal and accessible. Each member of our audience is unique, so we want each one of them to shape an ABC experience that suits their individual interests and needs. We will create a more consistent experience across our platforms and improve the accessibility of ABC content.

Dependent on funding, over the coming four years the organisation plans to move away from legacy technology towards fit-for-purpose solutions that will ensure the delivery of the Investing in Audiences priorities and help the ABC transition to be fit for the future.

This, in turn, will make it easier for audiences to experience the full range of what the ABC offers across TV, radio, podcasts, apps, the web and emerging platforms.

A number of new and existing initiatives are working towards achieving this:

• With significant technology investment, the ABC will create audience interfaces that are able to constantly improve and evolve based on data and innovation.

• We will deliver a seamless video service that offers effortless transitions for audience members across all devices, from phone, to tablets to televisions. This means an ABC viewer will be able to begin watching Mystery Road on the bus on the way home from work, continue on their television after dinner and finish it on their tablet in bed. It will provide a high quality, dependable viewing experience.

• To better cater for audience needs, the ABC is working to further improve its digital rights management. This will require additional investment to secure more extensive digital rights for both digital and international markets. It will ensure Australian audiences can continue to access the best Australian content through ABC digital and scheduled broadcast platforms.

The value Australians place on the ABC will provide a measure of our progress towards providing an outstanding experience for all our audience members.

Pillar 3:Delivering programs that reach and engage with more peopleAudiences have access to more information and entertainment than ever before. The ABC will use innovative ways to connect with all Australians, including both loyal audiences and new audiences, to remain relevant into the future.

More people are transitioning to digital media over TV and radio, so we will reach and delight more Australians with distinctive digital products.

Although there is a shift to digital media, significant audiences are still using TV and radio services. The ABC will continue to invest in distinctive content to maximise the performance of these platforms and use their significant reach to help audiences discover more of our digital content and other services.

Over the coming four years, the ABC will continue to operate legacy technology at the same time as commencing the transition to new digital and cloud-based technology services.

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• In February 2018, the ABC held its first Annual Public Meeting to share its plans and outcomes. In doing so, we sought to engage as many Australians as possible with the organisation’s operating processes. We will maintain our commitment to this accountability and transparency over the period of this corporate plan and beyond.

• The ABC will continue to conduct marketing online and elsewhere to inform all Australians about the content and services that are available to them on ABC platforms.

How successfully we achieve this reach and engagement will be evident in the proportion of Australians using ABC services and the trust Australians have in our content. The audience numbers for the individual platforms – radio, television and digital – will also indicate the progress in reaching more people, as will the performance of the ABC’s extensive transmission network.

Pillar 4:Building a great place to workThe achievements of the people working within the ABC makes a difference in the lives of all Australians. To ensure that we continue to attract the best content makers and those who will support them, the ABC has recognised the need to ensure a creative environment that makes the ABC a great place to work.

It means continued accountability, as well as the ongoing simplification of business processes, and the reduction in management layers. Linked to this, in 2018 other initiatives include:

• The ABC is fostering a creative community across the organisation to generate distinctive quality content. This commenced in 2017 with the launch of the Great Ideas Grant (GIG) which was funded from internal savings and in its first year provided $10 million to help realise a range of projects put forward by ABC employees. Successful projects included the digital first natural history project #ABCWildOz and the new ABC Kids Listen app. The goal is to support further

innovative projects as the size of the GIG fund increases. More recently, the Content Ideas Lab was created to oversee GIG and drives the creation of new content to meet changing audience expectations. It will continue to pursue this over the coming four years.

• The savings also enabled the Connecting Communities Initiative, which has boosted spending in regional bureaus by $15.4 million each year and created 80 new positions around Australia.

• As part of the ABC’s digital transformation journey, the organisation will put in place processes and infrastructure that make it easier for people producing content to collaborate and communicate locally, nationally and internationally. This will entail some changes to content storage and production which, in turn, will allow the technology to be updated easily and at less expense.

• The ABC is making a material investment ($10m) in leadership and training across the organisation to increase the digital skills of the workforce so that we are able to provide outstanding content and services for all Australians across all platforms.

The engagement of the people who work at the ABC will provide a measure of the progress we are making towards building a great place to work.

5. Operating Plan: FY19–FY22



6. Measuring our progress


The ABC measures its progress in implementing its strategy and fulfilling its purpose against the metrics below.

Performance information

Pillar 1: Creating distinctive content that matters for all Australians

Australian contentThe delivery of distinctive Australian content is central to the ABC’s vision to be the source of Australian stories, conversations and culture. In achieving this, we contribute to the Australian identity and reflect our cultural diversity.

Tier Measure Source 2018–19 2019–20 2020–21 2021–22 Why this is important

1 Australian content hours (produced)

Analysis of hours broadcast and available on iview

931 hours*

*FYE

Maintain prior year

Maintain prior year

Maintain prior year

The ABC is the source of Australian conversations, culture and stories. The Charter requires us to reflect the national identity and inform and entertain.

2 Australian children’s TV content

Analysis of hours broadcast from Sydney transmitter

At least 30% At least 30% At least 30% At least 30% The ABC allocates resources to maximise quality children’s output across the network. This is achieved in part via a financing leverage ratio of 1:3 (from third party investment) making the 30% KPI the product of a highly efficient application of resources.

2 Australian music on radio

Analysis of hours based on scheduled programming

Network target:RN 25%

Local Radio 30%

Classic FM 35%

triple j 40%

Double J 35%

ABC Jazz 25%

ABC Country 30%

Unearthed 100%


Local Radio 35%

Classic FM 40%

triple j 40%

Double J 35%

ABC Jazz 25%

ABC Country 35%

Unearthed 100%


Local Radio 35%

Classic FM 40%

triple j 40%

Double J 35%

ABC Jazz 25%

ABC Country 35%

Unearthed 100%


Local Radio 35%

Classic FM 40%

triple j 40%

Double J 35%

ABC Jazz 25%

ABC Country 35%

Unearthed 100%

Our Australian music targets are important to make sure we are adhering to our charter obligations to support Australian musical performance and the arts. The high benchmarks ensure Australian musicians are heard by Australian audiences, and that artists can develop viable careers to continue telling Australian stories and enriching Australian cultural life.

2 Digital first run Australian content on iview

Google Analytics 360

370,000 average monthly plays




As video-on-demand becomes increasingly important, exclusive Digital First content becomes an important trigger for use. We will place more emphasis on Digital First Content.

2 Downloads of digital first run Australian content on podcast

Podsights 1.6 million average unique monthly downloads

1.9 million average unique monthly downloads



Podcast downloads are growing at 6% annually. As more emphasis is placed on producing unique podcast content, we expect continued strong growth.



QualityAudience recognition of the high quality and distinctiveness of ABC programs indicates that the organisation is making content that matters to Australians.


1 Distinctiveness – Unique market position

ABC Quality & Distinctiveness Surveys

80% 80% 80% 80% Our 2017–18 result was 79%. We have set benchmarks across individual pieces of content to achieve an 80% score for distinctiveness. Therefore, we should strive to achieve this as our overall “Distinctiveness Score” across all the content that we produce, broadcast and distribute.

2 Editorial quality

Reviews commissioned or conducted by the ABC

Reviews undertaken and reports considered




Our commitment to high quality content that meets our Charter obligations and editorial standards is an essential part of our obligations to the Australian public.

The ABC has a detailed set of editorial policies, standards and guidelines, and regularly and systematically trains content-makers in this area.

This is underpinned by the conduct of regular, proactive reviews of ABC content to ensure these standards are met and to provide advice on ways to improve.

2 Complaints management

Data from Audience & Consumer Affairs

Statutory requirements met




As well as conducting its own editorial reviews, the ABC has in place an effective independent complaints handling system which is transparent and responsive to any concerns raised by audiences.

This is an essential tool to maintain and build the trust that is necessary for the ABC to fulfil its role as an independent, impartial and valued public broadcaster.

TrustThe trust with which Australians regard the ABC indicates the standard of its content at a time of declining trust in institutions and in media organisations in particular.


1 Trusted source

ABC Corporate Tracking Study

81% 81% 81% 81% In 2017–18, we achieved a trusted score which was significantly stronger than other media providers.

We should aim to maintain trust at above 80% through the plan period. The reason for this is that trust is a constantly moving target.

We ask people to compare their level of trust in information provided with other information sources, so looking for improvements will be relative to competition.

Trust is also something that can only be impacted by continuing to do a good job. It is a measure that is hard to build up, and can be very easy to drive down (see Facebook).

As the most trusted news source, we have the highest score in the market on this measure. We should be looking to maintain this lead.

Pillar 2: Providing an outstanding audience experience

Experience & valueAudience perceptions of their experience engaging with the ABC and the value they place on the public broadcaster indicate how well the ABC is delivering its services and fulfilling its purpose.


1 ABC experience


40% 45% 50% 55% This refers to the percentage of Australian adults accessing more than one ABC product or service over a weekly timeframe. There is a direct correlation between the number of touchpoints that an Australian has with the ABC, with their perceptions of value of the ABC.

The more touchpoints that the audience member has, the greater the value that they feel the ABC provides to the Australian community, so if we can grow their touchpoints, we should be able to influence their perceptions of ABC value.

When new cross-pollination strategies are implemented, we should expect to grow this result.

1 Overall value


84% 85% 86% 86% The perception of ABC value has been one of the cornerstone KPI’s over the past 20 years. We have seen a decline in value perceptions from 86% in FY16 to 82% in FY18.

We should strive to regain perceptions of value to 86% by FY21.

Pillar 1: Creating distinctive content that matters for all Australians Pillar 1: Creating distinctive content that matters for all Australians



ReachReach measures the percentage of Australians who have used ABC services in a given timeframe. This indicates the effectiveness and engagement with ABC programming.


1 Digital Engagement

Nielsen Online – number of online sessions per month

100 million 110 million 120 million 130 million Australians had 88 million digital interactions with the ABC in 2017. We will need to grow our digital engagement throughout the course of the plan in order to grow overall reach in light of declines in reach on traditional broadcast platforms.

1 Audience – Reaching all Australians – Net weekly reach


72% 73% 74% 75% Reaching all Australians is the key strategic indicator of ABC success. In 2017 we reached 71% of Australians per week, an increase of 2% on 2016 performance. As we strive to be relevant to all Australians, we intend to increase our Net Weekly Reach.

2 Digital reach (weekly)


28% 31% 33% 36% As Australians’ media consumption shifts from traditional broadcast platforms to digital, we need to ensure that our digital footprint grows to ensure that we remain relevant.

2 Radio reach (weekly)

GFK Radio Ratings

36.5% 36.5% 36.5% 36.5% While time spent listened in radio has declined, this decline has not been mirrored in weekly reach. Measurement also includes digital listening (streaming and apps), so the strategy of driving digital radio behaviours (ABC Listen/ Websites) is counted in measurement.

2 Television reach (weekly)

OzTAM 48% 46% 44% 43% Declines in this measure are expected, as weekly TV audiences generally decline over time.

2 International monthly engagement

Website GA 360

Apps/ Flurry Analytics

14m Average Monthly Website Sessions across key ABC websites and Apps

14m Average Monthly Website Sessions across key ABC websites and Apps from international audiences



Enabling Australian citizens living or travelling outside Australia to obtain information about Australian affairs and Australian attitudes on world affairs, and encouraging awareness of Australia and an international understanding of Australian attitudes on world affairs are key components of the ABC Charter.

6. Measuring our progress Pillar 3: Delivering programs that reach and engage with more people


AccessMeasuring access to ABC platforms provides a quantitative assessment of the ABC’s ability to transmit to Australian audiences – via linear or digital services – in keeping with its purpose to provide a comprehensive public broadcasting service.


3 Access to analog radio

Broadcast Australia dataAustralian Bureau of Statistics data

At least 99% At least 99% At least 99% At least 99% Terrestrial and satellite delivered TV and radio services are still the main way Australian audiences are able to access ABC content and these will be maintained over the reporting period – changes are likely to occur as population shifts occur over time.

As the ABC augments its terrestrial and satellite services with other digital and online services over time, the measures used for access to ABC content will be revisited to provide a consistent and integrated set of audience access measures.

3 Access to digital radio

100% 100% 100% 100%

3 Access to digital television

100% 100% 100% 100%

3 Audience contacts – transmission issues

Audience & Consumer Affairs data

Availability of reception advice line service




Helping our audiences to access our content is vitally important to the ABC. The ABC will continue to make information available to its audience on how to obtain access to the ABC’s transmissions.

Pillar 4: Building a great place to work

CultureThe progress towards building a great place to work and ensuring a creative environment can be gauged by the engagement of the people working within the public broadcaster. As Australia’s largest creative employer, improvements in this measure indicate the ABC is becoming a more creative environment which in turn will enable even better content.


1 Employee Engagement

AON Hewitt benchmark or similar

Above median for Australian employers

Top quartile for Australian employers



Employee engagement surveys provide detailed data and insights for leaders and managers to use to improve the workplace.

Organisation responsiveness to employee feedback leads to higher retention rates, lower absenteeism, improved productivity, higher service levels and better employee morale.

AvailabilityTransmission of the ABC’s radio and television content is provided by a third party and managed by the ABC via Transmission Service Agreements. The effective management of these agreements is fundamental to ensuring the ABC is able to achieve its purpose by reaching and engaging with as many Australians as possible.


3 Transmission performance

Broadcast Australia data

At least 99% for all services




The ABC will continue to actively monitor the performance of its transmission contracts to maximise the availability of the services provided.

As the ABC augments its terrestrial and satellite services with other digital and online services over time, the measures used for the availability of ABC content for audiences will be revisited to provide a consistent and integrated set of audience availability measures.

3 Operation of transmission facilities

Broadcast Australia data

100% 100% 100% 100%


Forward estimates2018–19Budget

$’000

2019–20Forward

estimates$’000

2020–21Forward

estimates$’000

2021–22Forward

estimates$’000

Revenue

ABC Government Appropriations

Operational Appropriations 1,045,911 1,047,963 1,050,990 1,056,011

Total Appropriations 1,045,911 1,047,963 1,050,990 1,056,011

Own Source Revenue 71,838 71,979 72,123 72,008

Total Revenue 1,117,749 1,119,942 1,123,113 1,128,019

Operational Expenditure 1,102,782 1,105,213 1,108,267 1,119,003

Capital Expenditure 65,976 65,612 65,241 82,855

Borrowings 30,995 10,593 191 -


According to the Portfolio Budgets Statements 2018-19, the ABC is appropriated funds to undertake two principal activities. These activities and the forward estimates are set out below:

A summary of financial information for the 2018–19 budget and the forward estimates for the ABC is set out below:

Source: 2018–19 Portfolio Budget Statements.Note: the inclusion of this table satisfies the requirement of s.31B(1)(b) of the ABC Act in relation to forecasts of revenue and expenditure.

Financial information

1. Providing Australian and international audiences with radio, television and digital media services

Resources 2018–19Budget

2019–20Forward

estimates

2020–21Forward

estimates

2021–22Forward

estimates

Program 1.1 ABC General Operational ActivitiesExpenditure ($‘000)

921,934 921,514 921,491 928,731

2. Managing the broadcast and transmission of ABC radio and television services within Australia

Resources 2018–19Budget

2019–20Forward

estimates

2020–21Forward

estimates

2021–22Forward

estimates

Program 1.2 ABC Transmission and Distribution ServicesExpenditure ($‘000)

180,848 183,699 186,776 190,272

7. Managing our risk

35


The ABC’s Board of Directors and management oversee and continue to be committed to developing and refining a fit-for-purpose risk management framework that will both protect and enhance value through the timely and accurate identification, assessment and management of all risks.

Risk management frameworkThe ABC faces a variety of risks – both threats and opportunities – that may have an impact on our performance, reputation and, more broadly, our social licence to operate.

These risks manifest themselves as a result of the strategic objectives that we seek to achieve and from the external societal, regulatory, political and market environment in which the ABC operates.

The ABC’s risk management framework is designed to address this.

The framework has, as its foundation, the risk policy which aspires to embed a culture of risk awareness in all decisions.

The aim of the risk management framework is not necessarily to eliminate a risk but rather to manage the risk to an approved level to generate an outcome that enhances the strategic direction of the ABC.

The ABC adopts what is commonly referred to as the ‘three lines of defence’ model for the management and assessment of risk.

The first line of defence is that all ABC employees own the responsibility for identifying and managing risks within Board-approved limits of authority and expenditure.

The second line of defence is the management and ongoing refinement of a robust risk framework and the development of efficient and effective internal controls by central support functions and an oversight management committee.

The third line of defence is the independent assurance by the ABC’s internal audit team (Group Audit) of the existence, efficiency and effectiveness of internal controls relating to key risks.

The appropriateness and effectiveness of the risk management framework is overseen by the ABC Board and the Risk & Audit Committee.

The ABC risk function is responsible for the continued refinement of the ABC risk management framework. This includes providing counsel to the Board and management on how to identify, assess and manage risk.

As the ABC continues to evolve, the risk management framework will be enhanced.

During the past year we have appointed a Head of Risk and further embedded risk considerations in the annual business planning, strategy and budgetary cycle.

7. Managing our risk

How well the ABC manages risk is central to its governance. It is a key pillar upon which the ABC’s good reputation is founded, and forms the basis of the trust our stakeholders place in us.

Our significant risksWe actively manage our key risk as follows:

Key Risk How we manage the risk

Loss of Audience

Our ability to reach and engage Australian audiences is central to our purpose, as outlined in Chapter 2. It means the loss of audience is an ever-present risk, as it is for all media. The emergence of global platforms and a fragmenting media market, makes our ongoing ability to reach those audiences a heightened risk at this time.

The ABC works to provide distinctive Australian content that differs from what is offered by both domestic and international media operators. We innovate to deliver the programming our audiences want on the platforms where our audiences want to consume it. And, where necessary, we promote that content in the most efficient and effective way.

Reduced Funding

The ABC’s annual budget of one billion dollars is a significant investment made by the government on behalf of all Australians, as noted in Chapter 3.

The ABC’s capacity to generate its own revenue is limited by its Charter.

In the event that the government funding is reduced or withheld for an extended period of time, there is a risk that the ABC will be unable to fulfil its Charter requirements.

The ABC has had a long-standing internal efficiency focus that has ensured that we are using the funding provided in the best possible way.

More broadly the ABC continues to work with stakeholders to demonstrate the societal value that the ABC brings to Australia.

Reputational damage

The ABC remains Australia’s most trusted media organisation across all age groups with 81 per cent of Australians believing the ABC provides a valuable national service.

Loss of trust is a key risk for the ABC.

Managing reputational opportunities and risks is critical to our ongoing relevance.

The ABC maintains Australia’s highest editorial standards as a central measure in ensuring the ongoing trust of our audiences.

We work to produce content that is of consistently high quality across all our genres and platforms.

Key to maintaining the trust and regard of our audiences is the ABC’s ongoing independence from government or commercial influence.

Harm to our People and Infrastructure

The ABC’s people and its infrastructure enable it to fulfil its purpose. Any risk to these is a key risk for the organisation

The risks to our people and infrastructure are managed by not unnecessarily putting our people or assets in harm’s way and having mechanisms to identify, monitor and manage the risks when we have decided that it is necessary to take them.

Cyber Breaches

The ABC is similar to many organisations in that it protects and needs to continue to protect its cyber assets from unauthorised and malicious access.

We have in place and regularly test our broadcast, transmission and business continuity processes to ensure that we can be relied upon by our audiences at all times.

Failure to transform

In order to continue reaching and engaging our audiences as they rapidly migrate to digital media, it is vital that the ABC continues to undergo significant digital transformation. The risk of not continuing the digital transformation, would be a loss of audience as well as a more expensive operating environment in the longer term.

The ABC has found internal efficiencies to enable a small start on the transformation that is needed. We are working with stakeholders to explain the necessity of further investment to ensure the ABC’s future as Australia’s national public broadcaster.

Risk in the businessEmbed a culture of risk awareness

in all decisions

1st line of defenceManagerial responsibility

2nd line of defenceRisk management

3rd line of defenceGroup Audit

Risk & Audit Committee

ABC Board

ABC’s Risk Management Framework



A general population-based survey that measures ABC usage, awareness, appreciation and trust. This study also has attitudinal perception questions with relative comparisons made with the commercial market.

ABC Quality and Distinctiveness Surveys

Measures the impact and perceptions of programs across the ABC portfolio of media assets.

ACCC

Australian Competition and Consumer Commission

Digital First

Content that is created exclusively for first distribution on a digital platform.

FAANG

Facebook, Apple, Amazon, Netflix and Google.

Flurry Analytics

Flurry Analytics is an in-app internal digital measurement system.

GFK Radio Ratings

GFK currently holds the tender for Radio and Digital Audio Broadcast (DAB+) measurement throughout Australia. Their data is the industry currency for radio.

Google Analytics 360

Digital analytics platform that measures usage and behaviours across digital properties and content.

Investing in Audiences

The ABC strategy announced in March 2017, which involves a number of interlocking initiatives designed to strengthen the ABC and enhance our ability to deliver on the ABC Act and Charter and serve the community.

Nielsen Online

Nielsen currently holds the industry tender for digital measurement across Australia. Their digital measurement is the currency for the commercial marketplace.

OzTAM

The currency measurement system for Television and Video Player Measurement (VPM) throughout Australia.

Podsights

ABC Podcast intelligence dashboard tool.

SBS

Special Broadcasting Service

Ongoing improvementA defining element of any risk management framework is that it operates in an environment of ongoing iterative improvement. The ABC’s Board has an expectation that each year there will be a significant improvement in how we identify, assess and manage key risks.

Over the lifecycle of the ABC’s Corporate Plan strategies for improvement include:

• As our reporting evolves – more interactive reporting of risk. This will include the ability to drill down to specific risk treatments.

• Through the ongoing recording and analysis of risk incidents, continued root cause analysis will be undertaken. This forms the basis for close to real-time insights to the Board and management on the effectiveness of the risk management framework.

• The further development of a comprehensive program of risk related learning and development for all employees which will support the enhancement of a positive risk culture and help maintain risk management capability across the ABC.

Greater focus is also being afforded to how the ABC adequately, and in a timely manner, gauges risk-focused cultural themes in areas such as risk awareness, managerial ownership of risk and proactive engagement in the management of risk.

Glossary

GPO Box 9994 in your state/territory capital

Phone 13 9994 Fax 02 8333 5344 TTY 1800 627 854abc.net.au

Au

gu

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Documents

Corporate Plan · to video-on-demand services, than there are pay tv subscriptions. Australians are increasingly seeking content wherever they want, whenever they want. This is evident