The Idiot’s Guide To The New Media Ownership Laws
Did you hear all the talk of the new media ownership laws over the weekend but, quite frankly, still not have the foggiest clue what anyone was talking about?
Well, fear not! Here, B&T answers all your totally obvious questions about the changes announced by the communications minister, Mitch Fifield, on Saturday morning.
You can read Fifield’s full statement here too.
What was the big news over the weekend?
Arguably the biggest news to come from Fifield’s announcement was the abolition of the licence fees for the free-to-air networks. That means Seven, Nine and Ten will no longer have to pay around $130 million a year in fees to the federal government, to, basically, run their networks.
Why’s that good news?
Two reasons. One: the networks claim their new overseas disruptive competitors – the likes of Netflix, HBO or Google – don’t have to pay licence fees in Australia, so why should they? Rightly or wrongly, Seven, Nine and Ten argue they can re-invest those monies back into homegrown TV and drama which is good news for actors, screenwriters, producers and the likes.
So the free-to-airs get a $130 million kicker at the taxpayers’ expense?
No, in lieu of the existing licensing laws, the new rules state they must pay a “new annual spectrum fee of $40 million”.
Why are network bosses whinging about Facebook and Google?
Multiple reasons. One (they argue) they don’t think they pay their fair share of tax in Australia and, two, they pinch content from Australian publishers and don’t have to pay for it.
Do these reforms fix that?
Not really. There’s still a long way to go and expect more from Scott Morrison’s Budget this week.
Was that all?
No. The new rules also aim to repeal the “two out of three law”. In the past, a media company could only own a TV station, a newspaper business BUT NOT a radio station in the same territory. IE, Fairfax could own The Sydney Morning Herald and Macquarie Radio stations in Sydney, but the laws meant it was illegal for it to also have ownership in, say, Channel Nine or a third media outlet.
Why’s this a good thing?
Well, it’s a bit of a double-edge sword, really. One: it will make media companies far more attractive to investors – particularly to cashed-up overseas ones. Sure, that means more money for media companies; however, there’s sure to be a lot of mergers and acquisitions, too. Expect a lot of new mergers, a lot of content sharing between the two, and, very probably, staff redundancies to boot as competition shrinks.
What was the “75 per cent reach rule” and why’s that been scrapped?
In its simplest form, the rule (harking back to the early 80s) said broadcasters and publishers could not reach more than 75 per cent of Australia’s population with their content. However, with the advent of the internet and downloadable video the law was pretty much redundant some time ago.
Any other winners?
Well, there’s a $30 million carrot for broadcasters – namely Pay TV – to broadcast more women’s sport. And, although details are sketchy, the anti-siphoning laws are to set to be relaxed, too. That means pay TV providers – namely Foxtel – could bid for the rights to things like an Ashes series or the Melbourne Cup (events deemed “culturally significant”) and typically given to the free-to-air networks first. Result – pay TV providers will be able to bid for more sport and charge you, the viewer, accordingly.
Are the new laws set in stone?
No! Any reforms will need to be passed by the Senate. Both Labor and the Greens have said they won’t vote for the changes, meaning the federal government will need to rely on Nick Xenophon and One Nation to get them through. However, it now looks like – with the support of the three Xenophon senators – the bill would, most likely, be passed.
What got Xenophon over the line?
The South Australian senator is a staunch anti-gambling crusader and, to secure his senate vote, the new media ownership laws mean there’ll be no gambling advertising during sporting events before 8.30pm (until after the kiddies go to bed).
But that will cost the free to airs $130 million a year in ad revenues?
You’re right. But even they’re worried about the proliferation of gambling ads and the negative feedback from audiences. Plus, the relaxation of the ($130 million) licensing fees should ease some of the network’s pain.
These changes all sound pretty obvious. Why’s it taken so long to implement?
It’s (A) not been a huge priority for the government and (B) the new changes are fundamentally (and remain so) opposed by Labor and the Greens.
Why are Labor and the Greens so pissed off?
Well, it’s their job in opposition to oppose most things. That said, there are parts of the Coalition’s package that Labor are on board with; the “reach rule” as an example. Ultimately, Labor argue the new rules will create big, behemoth media companies, creating a lack of diversity. Also, regional newsrooms could be devoured by their city cousins, leading to job losses and the loss of a local “voice”. The Greens are also fundamentally opposed to the abolition of the “reach rule”.
Will the changes get passed by the Senate?
Probably. The government has worked very hard on shoring up “the numbers” before announcing the final details over the weekend.
Please login with linkedin to comment
Advertising Standards Bureau ARN Failure Fast Ed Scott Morrison SevenLatest News
The Mars Agency Announces Latest Findings Of Retail Media Report Card
The Mars Agency has developed a scorecard that assesses the capabilities of leading platforms across key criteria required to optimally plan, execute, and measure effective retail media programs. The scorecard aims To help brands efficiently evaluate their spending options across retail media networks in Australia (and New Zealand). With spending on retail media advertising in […]
‘It’s The Lesser Of Two Evils’ – NRL Eyes US Betting Market As Aussie Regulators Circle
US betting firms will be delighted by the circa 50,000 Americans who could soon watch the NRL on their favourite app.
A-League In Deep Discussions With New Partner To Keep Games On TV After Production Company Enters Administration
The A-League's insatiable appetite for scoring own goals continues.
TV Ratings (27/03/2024): Jungle Members At War Over Concealed Lipstick
A heated argument between two jungle members did the numbers for Ten last night, with I’m A Celeb obtaining a total national reach of 1,282,000. Fans were delighted as Candice Warner and influencer Skye Wheatley got into it over a stick of lipstick, leading Warner to dub the Instagram star “selfish.” Wheatley, best known for […]
Is The Australian Music Industry In Trouble? Inquiry Launched Following Splendour Cancellation
Earlier this week, an inquiry was launched into the challenges and opportunities currently facing the Australian live music industry in the wake of multiple festival cancellations. On 25 March 2024, the Minister for the Arts, the Hon. Tony Burke MP, asked the Committee on Communications and the Arts to inquire into and report on the […]
Liana Dubois, Leandro Perez, Aimee Buchanan & More Gather For Inaugural Compadres Leadership Event
Didn't get the invite? Perhaps you're not as important as you thought.
Cathay Captures The Unforgettable Thrill Of Cathay/HSBC Hong Kong Rugby Sevens, Via Publicis
Nobody does rugby like Hong Kong, apparently. Certainly nobody does it as badly as Australia.
Cocogun Nabs Christine Watts, Kirsty Reynolds & Shev Tan Bolstering Management & Creative Teams
Cocogun bolsters its team with new hires. Committed to purchasing a bigger sofa, too.
The Media Store’s Jacquie Alley & Sam Cousins Take The Plunge With Pro-Bono Work For Cure Cancer
B&T chats with The Media Store bosses about their great pro-bono work and sponsored swim.
Hawke’s Brewing Co. Taps Rocket Comms For PR Agency Following Competitive Pitch
We're expecting Rocket Comms productivity to crash in spectacular fashion following this win.
Spotlight On Sponsors: Patties Serves Up A Taste Of Home For Olympians & South Sydney Rabbitohs Recommit To Gambling Reform
While the Rabbitohs commits to gambling reform, B&T reckons the team should commit to a decent auto sponsor.
Google: “Inevitable” That Bad Actors Will Abuse Ads Platform As Advertiser Account Suspensions Double
Google maintains it's simply impossible for it to entirely stop bad people placing & paying for ads using its service.
Quantcast Expands APAC Sales Team With Appointment Of News Corp Account Manager
No pressure at all when you are appointed as a client success manager.
Publicis Sapient Tests Microsoft-Powered Gen AI Search Tool With Homes & Villas By Marriott Bonvoy
Given Gen AI's record for mangling stuff, B&T cannot see the problem with letting it decide your next holiday digs.
Volkswagen & DDB Group’s “Roo Badge” To Reduce Kangaroo Related Road Collisions
Watch out for RooBadge as Cannes Lions' most debated campaign this year.
Twilio Launches Unified Profiles & Agent Copilot Features To Boost Productivity & Engagement
Agent Copilot sounds like James Bond's less interesting cousin.
Reebok & Honda Among New Clients For onetwo agency
OneTwo finally lives up to its name with this double billing.
Ogilvy Report: Throw Out The Social Strategy Rule Book, The Rules Of The Past No Longer Apply
B&T was puzzled that all 'influencers' aren't, effectively, 'virtual', but here we are.
WhiteGREY & AKQA Merge In Australia, Lee Simpson Departs
Fortunately, the combined agencies aren't opting for a trite portmanteau for the new name.
Splendour In The Grass 2024 Music Festival Cancelled!
Music fans all over the country reportedly relieved they can pack away their rain coats and gumboots for another year.
TV Ratings (26/03/2024): “Fairy Bread, F***ing Disgusting”: Gordon Ramsay Slams Aussie Food In Food Stars Launch
Ramsay not one for mincing his words, even when it comes to minced meat pies.
Paramount+ International Boss Doubles Down On Aussie Content, Says Ad-Tier will Grow Audiences And Revenue
Good news as Paramount will not be binning I’m A Celebrity for re-runs of Frasier.
Brent Smart: Telstra Pushing For 50-50 Brand-Performance Split But Warns Numbers ‘Won’t Look Great’ Initially
The old brand vs performance debate continues. But here, Brent is firmly sitting on the fence.
Crowded House, Tones And I & Dom Dolla Win Big At The Shure Rolling Stone Music Awards
B&T staffer reports back with humdinger of a hangover & feeling seriously uncool after mixing with music types.
Opinion: Dyslexia “A Hidden Gem” For Brands & Agencies
Dyslexics offer underappreciated benefits in the corporate field, according to this op-ed.
David Jones Taps Criteo To Power Online Retail Media Arm
Want to see ads for things you probably can't afford? David Jones has got you covered with new retail media play.
oOh!media Sets Up Team To Target Business Audiences Across Airports & Offices
oOh! wants brands to harass you every minute of your next business trip.
QMS Launches Australian First DOOH & TV Partnership With Samba TV
Samba TV, of course, is not a channel dedicated to dancing. Much to our dismany.
Slew Of New Hires At Amplify
Four new faces join the Amplify offices. Team say desk scarcity becoming "acute".
Adobe Announces Content Authenticity Initiative Expansions To Counter Deep Fakes
Try as they might to enlighten them, we suspect Trump supporters will continue to watch and believe Fox News.
The PR Group Appoints TechCrunch Senior Reporter Catherine Shu As Director Of Content & Media
Catherine Shu makes the bold leap from journalism to PR. Says inevitable pay bump was "unrelated".
HERO Nabs Ebony Santin From AMPR
Rumours Santin cleared out the stationery cupboard before departing are as yet unconfirmed.
Karena Noble Checks Out Of EVT Hotels & Resorts To Launch Comms Consultancy
Noble still managed to squeezed in a continental breakfast before departing.
Canva Acquires Design Platform Affinity To Bring Professional Design Tools To Every Organisation
Canva & Adobe face off continues. We're not picking sides but keenly aware that Canva's office is next door to ours.
“Lean On Our Team To Help You Find An Audience”: Why Understanding Audience Engagement Is Essential In Journalism
Engaging the audience is critical to journos, apparently. We'd thought self-loathing & alcoholism were key.
Adobe Summit: Major Gen AI Developments, Data Concessions & Partnerships
What happens in Vegas stays there. Unless it's the Adobe Summit and then you get to read about in B&T.