After years of on-again, off-again talks and many false starts, the government has announced its decision to change the media ownership laws in this country. The most significant changes, to the cross-media ownership laws and foreign ownership restrictions, will take place as early as next year.
Although cross-media changes will affect radio significantly, there has never been any restriction on foreign ownership of radio stations, so this element of the new laws will be less significant for the radio industry.
Officially announcing the changes today, Communications Minister Helen Coonan said the regulations “will enable new investment and greater scope for Australian consumers,” and will deliver “consumer choice and a competitive industry in the digital media age.”
Under the changed laws, companies will be able to own commercial print, radio and television interests in the one market. While the changes will not directly affect the ABC or SBS, which are taxpayer owned, the market realignments which will be result from the new laws will inevitably have a knock on effect on public and community broadcasters.
Coonan believes the package of reforms will “allow the Australian media sector to move from the old analogue-based regime into the dynamic new world of digital content, where traditional media co-exist and compete with new delivery platforms.”
In the rapidly changing media landscape, Coonan says “a flexible system” is needed to allow media companies to adapt and prosper in the new digital environment.
“The framework I am announcing today will open up opportunities for a range of innovative new services for consumers, while maintaining the existing services that the community already rely on and enjoy… By allowing new entrants into the Australian media industry, the Government will encourage increased diversity and new sources of information and entertainment.”
A lot of the focus for change is about television, but the radio industry will also be part of the shake up.
The new laws will “relax the current restrictions on cross-media ownership subject to safeguards that will ensure no fewer than five independent voices remain in metropolitan markets and four in regional markets.”
The government says the new laws will “protect local radio content in regional markets by requiring commercial radio licensees seeking mergers in regional markets to meet minimum standards for local content including news, community service announcements and emergency warnings,” but many smaller regional owners disagree with this assertion.
Existing licence and reach limits, which provide that a person may control only one commercial television licence or two commercial radio licences in any licence area, and that a person may not control commercial television licences reaching an audience of more than 75 per cent of Australian population, will be retained.
The government says the ACCC will “ensure the competition laws are fully complied with under the general mergers provisions of the Trade Practices Act,” and ACMA will also be given greater powers to “oversee safeguards to ensure diversity and local content, including ensuring transactions comply with the minimum number of media groups requirements.”
ACMA will get more ‘teeth’ with additional powers to initiate civil penalties for a range of breaches where only criminal sanctions are currently available. ACMA will now also be able to obtain injunctions where commercial broadcasting services are being provided without an appropriate licence, and accept enforceable undertakings from industry sectors.
ACMA will also be given the ability to issue infringement notices for minor breaches of the Broadcasting Services Act related to reporting requirements.
Other significant changes for the television industry include the removal of the existing foreign ownership restrictions, although the media industry will continue to be a “sensitive sector” under the Government’s Foreign Investment Policy.
A range of measures to stimulate the take up of digital tv were also announced today, while similar measures for the take up of digital radio were announced many months ago, in October last year.
Changes also include the development of a Digital Action Plan to drive the take-up of digital television services; the opening up of two reserved digital channels for new digital services such as mobile television or new in-home services; multichannelling for commercial free-to-air television stations; removal of the simulcasting requirement on high definition television programming; and legislation to mandate levels of local content on regional television.
The changes will also remove the “genre” restrictions on the types of programming which can be shown on ABC and SBS TV multichannels.
See what other media had to say about the changes in radioinfo’s news clips page (click below).