Coonan may ease media ownership rules: National Press Club speech

Federal Communications Minister, Helen Coonan, says the Government is considering allowing one company to own a newspaper, radio station and a television network in the same market.

Under the current arrangements, a single company can only own two of the three forms of media in a single market.

Digitisation of communications, and convergence, have taken Australia to “another major milestone in media” according to Coonan, who says the changes require “a determined and dynamic policy response from Government.”

Senator Coonan has told the National Press Club that, subject to a number of licensing conditions and limits on audience reach, she is looking at ways to allow different media systems to merge.

“I’m considering an approach where mergers could take place between the regulated platforms of television, radio and newspapers within a licence area.

“This would mean, for example, there could be common ownership of a television licence, two radio stations and an associated newspaper or other combinations in that same market.”


Labor’s communications spokesman Stephen Conroy says the proposal will lead to less diversity and fewer media companies.

In her speech, Senator Coonan told the audience of journalists, regulator staff and communications industry observers:

The Government’s desire to release Australia’s media industry from its current lock-step is well known. How we might approach this in conjunction with the challenges of digitisation has been the subject of much speculation…

I should say right now that I am an admirer of the traditional media services available in Australia. I believe our media are amongst the best in the world.
But the evolution of media presents both challenges and opportunities for the industry that, in my view, mean we cannot stand still.

Digital technologies allow completely new ways of packaging and delivering audio-visual services, entertainment and information…

In a converged environment it will become almost impossible, and certainly counterproductive, to stop new players and new services from emerging. In my view, regulatory strategies need to move away from relying on controlling market structures in the way they have to date, to a new framework that allows some efficiencies of scale and scope while encouraging new players, new investment and new services.

There is an obvious need for Government to respond and release the media industry from its current lock-step. But I have said publicly that without broad industry support it is difficult to see reforms to the media sector working effectively…

There are regulatory changes coming down the pipeline, ready or not.
January 1 2007 is shaping up as a red-letter day for the media industry as a number of self-executing provisions in the broadcasting regime take effect.

First, the moratorium on allocating new commercial television broadcasting licences expires. From this date, if changes are not made to the current legislative arrangements, the regulator – ACMA – will have the capacity to allocate new free-to-air commercial television licences in the broadcasting services band.

Secondly, the moratorium will also end on the allocation of new free-to-air TV services delivered over other platforms such as wireless, satellite and cable broadband networks.

Thirdly… the restrictions on data-casting will be substantially lifted and new data-casting transmitter licences could be used to provide a wider range of services such as pay-TV, niche (narrowcast) free to air channels and DVB-H services (ie: TV over mobile devices) over currently reserved spectrum.

Fourthly, the existing free to air television licensees are currently prohibited from acquiring a data-casting transmitter licence and unless some steps are taken, that prohibition would remain…

The long term objective of media reform should be to move to an open and competitive market environment without artificial and arbitrary restrictions which prevent Australian media groups from developing into globally competitive firms…

The simplest way to protect diversity is to place a floor under the number of media groups permitted in a market to preclude undue concentration of ownership. If we do this in an environment that allows us to balance any greater concentration of ownership amongst existing players with opportunities for new services, I think we will have a more attractive approach than the regime proposed last time…

Subject to retaining licence and reach limits, I am considering an approach where mergers could take place between the regulated platforms – television, radio and newspapers – within a licence area.

This would mean, for example, there could be common ownership of a television licence, two radio stations and an associated newspaper, or other combinations, in that same market.

Mergers would be subject to there remaining a minimum number of commercial media groups in the relevant regional and metropolitan markets –four voices in regional markets and five in mainland state capitals. So, the number of mergers that could occur in a market would be limited by this floor.

The cross media rules would not include the national broadcasters, pay television, the Internet or out of area newspapers and other potential new services over other platforms which provide increasing and important additional sources of news and opinion…

The Government is also committed to removing the restrictions on foreign investment in commercial and pay-TV and amending the Foreign Investment Policy to remove specific restrictions on newspaper ownership.

The protection of diversity and the maintenance of local content are central issues, particularly in rural and regional Australia, and I am well aware of concerns raised in the past about the impact of media ownership changes on local news and information in regional markets.

Cross media reform could help to limit reductions in local content in regional areas by enabling media proprietors to achieve economies across platforms in one market. Specific measures such as quotas can also be put in place to ensure that levels of local content are preserved.

The broadcasting and communications regulator, ACMA, would look after the diversity side of the equation. ACMA would have the power to grant an exemption certificate in respect of a cross media transaction where the transaction does not breach the floor.

In addition to safeguards on diversity, the ACCC would play a critical role in assessing competition issues associated with mergers, most particularly whether the proposed merger would lead to a substantial lessening of competition in a market.