Michelle Guthrie Talks Privatisation: “Do We Want A New Advertising Behemoth? I Think Not”

The Australian Broadcasting Corporation (ABC) managing director Michelle Guthrie has refuted claims the public broadcaster should be privatised in a speech delivered to the Melbourne Press Club.
The first time speaking publicly since the Liberal party’s vote to privatise the broadcaster, Guthrie said she hoped to tackle the “increasingly febrile debate over the value and future of the ABC”.
“The argument seems to carry a misplaced notion of both privatisation and conservatism. But, more importantly, it completely ignores the public value of the ABC, both in direct dollar terms but also as far as the wider public good remit.”
“What price do you put on public trust in an independent, commercial-free news organisation at a time of fragmentation and disruption?”
The vote was part of the Liberal Party’s annual federal council currently being held in Sydney and called for the “full privatisation of the Australian Broadcasting Corporation, except for services into regional areas”.
In response to this, Guthrie used data from a report commissioned by Deloitte Access which found the ABC generates as much to the country’s annual economic activity as it receives from taxpayers.
“The ABC contributed more than $1 billion to the Australian economy in the last financial year – on a par with the public investment in the organisation
“Of that $1 billion, more than a third is economic support for the broader media ecosystem.”
Guthrie also touted the 6000 full-time jobs across the economy provided by the broadcaster, as well as other jobs in the “supply chain”.
“For every 3 full-time equivalent jobs created by the ABC, there are another 2 supported in our supply chain.
“Local artists, writers, technicians, transport workers and many more. In hard figures, the research shows that the ABC helps to sustain 2,500 full-time equivalent jobs in addition to the 4000 women and men who are directly employed by the public broadcaster.”
For Guthrie, a push for privatisation reiterates the media is “at a time when the pressures of the new landscape are forcing our commercial colleagues into a relentless focus on their profitability.”
“I can appreciate that the ABC would fetch a high price in a commercial market.
“But does the public want a new media organisation that compromises quality and innovation for profit? Does the commercial sector want a new advertising behemoth in its midst?
“I think not.”
Speaking further on the commercial market, Guthrie blamed the likes of Facebook and Google for influencing continual consolidation in the media landscape, both in Australia and globally.
“Over a short space of time there may be just a handful of international media giants– yes, I’m including FAANGS (being Facebook, Apple, Amazon, Netflix and Google) in that group – that will be based in the US and will create and distribute the vast majority of the world’s content, both news and entertainment.
“It means that the pressure on our domestic commercial media counterparts is only going to increase.
“Two years ago, Facebook and Google were already collecting 40 per cent of Australian advertising dollars. Those dollars would previously have gone to the traditional television, radio and print media operators.
“The figure will only have increased since then.
“This and the increasing competition for content from the global players, each with a production budget in the billions, is driving the free-to-airs to adopt play-safe strategies – trying to secure big audiences around tentpole events in news, reality and sports.”
Guthrie added 92 per cent of the ABC’s budget would be spent on “making content”.
Before closing the speech, Guthrie took a cheeky prod at Seven’s Barnaby Joyce and Vikki Campion interview, which, despite the hype, failed to pull in the numbers.
She said, “I was one of the 800,000 viewers who chose to watch Mystery Road a few Sunday nights ago instead of an interview with Barnaby Joyce.
“Who knew Australians would choose a well-scripted and produced drama over the kitchen-sink exploits of a politician?”
Guthrie finished the speech by stating the broadcaster won’t be “pushed and prodded into different shapes to suit the prevailing climate”.
“It can’t. Nor should it be,” she added.
View the full speech here.
Latest News

Creating Efficiencies in the Age of Consumer Privacy
In this opinion piece, Jess Miles, Country Manager ANZ of Integral Ad Science, reflects on the questions surrounding consumer data. The ability to collect consumer data online has revolutionised digital advertising by enabling customised targeting strategies and data collection. This reliance on data has been the cornerstone of many audience targeted strategies enabling marketers to […]

Jye Smith Named President Of Vibewire Board
After ten years of board leadership of the young entrepreneurial collective Vibewire, Founder & Co-CEO of Disruptors Co. Gavin Heaton is passing the torch to fellow strategy and creative leader Jye Smith, Founder and Director of branding and design studio DOUBLESTAR CO, who will now take over as Board President.

The Peers Project And Alibaba Group Launch Entrepreneur Podcast Series, ‘The Build Up’
There are now so many podcasts in the world that it would take the average person 98.9 years to find an interesting one.

AnalogFolk Promotes Two Senior Staff
AnalogFolk has promoted two senior staff, but not promoted enough to secure a spot in the downstairs carpark.

“Destroying The World!”: Confusion Reigns As Mr Potato Head Goes Gender Neutral
Mr Potato Head goes gender neutral. Barbie apparently happy she's no longer the most marginalised one in the toy aisle.

New Mercedes G-Class Campaign From Akkurat Studios Makes A “Pointe”
B&T arrived to work this morning in a chauffeured Mercedes-Benz. Well "chauffeur/government bus driver", same thing.

Kia Selects Cartelux To Spearhead Dealer Ad Technology
It's not one but four motoring articles today, dear readers. Call it coincidence as B&T really knows nothing about cars.

‘Woka-Cola’: Trump Supporters Boycott Coca-Cola Over Anti-Racism Seminar
Trump supporters are calling for a Coke ban in the US. However, it remains doubtful if that will grow their teeth back.

Dear God! Triple J Books Return Of OG Wiggles For Like A Version
It's all hot potato and big red cars in the B&T office this morning. Scottish staffer reconsiders visa application.

Thursday TV Wrap: MAFS Hands Nine The Win On A Quiet Night
Last night's TV numbers again appeared to confirm that after 15 years still nobody's watching Bondi Rescue.

Twenty-Seven Year Old Australian Margaret Zhang Appointed Editor Of Vogue China
Who doesn't love to see Aussies doing well on the world stage! Okay, maybe not Schapelle Corby or Mel Gibson.

VOZ Insights: “Television Is Now An Everywhere, Multi-Device Medium”
Only Jesus' second coming and the next Guns N Roses album officially taking longer than the arrival of VOZ.

Australian CDP Lexer Raises $33.5M In Funding
Lexer, the Customer Data Platform for brands and retailers, today announced it has raised AU$33.5 million in Series B funding, bringing its total funding to AU$43 million. The round was led by Blackbird Ventures and King River Capital, with Series A investor January Capital also participating. Blackbird’s Rick Baker will join the Lexer board. The […]

CHE Proximity Unveils Latest Work For eBay
These new eBay ads have an eerie sense of déjà vu. Worse, a not overly funny déjà vu either.

Thrive PR + Communications Makes Multiple Hires Across Sydney & Melbourne
Thrive PR has announced a string of new hires, none of whom chain smokes or swigs from a Stoli bottle.

Peroni’s Zero Alcohol Beer Partners With Aston Martin, Ahead Of Its Formula One Return
Problem with zero alcohol beers is it's all the urine but without the embarrassing one-night stands of full-strength.

Pepsi Brings Messi, Pogba And Sancho To Life In Bubbly New Campaign
B&T's shamelessly namedropping in this headline. Unless you've no idea who they are, then just move to the next article.

Chief Of Cherokee Nation Calls For Jeep To Retire Vehicle Name: “It’s Time”
Do you own a Jeep Cherokee? Well, watch it instantly devalue by a good 10 grand by simply reading this.

Women’s Lifestyle Media Company The Grace Tales Acquired By AllBright
Local women's lifestyle media company receives what all publishers are looking for - a large cheque in an acquisition.

Martech Myths: Why Most Organisations Waste Ninety-Five Per Cent Of Their Software Capabilities
This expert columnist is debunking martech myths. Including the one about Salesforce making you pregnant.

Net Profit Up 60% For Southern Cross Austereo On The Back Of Leaner Operating Model
Southern Cross Austereo's profits up 60%! Which certainly made interviewing Grant Blackley today a lot less awkward.

Cummins&Partners Welcomes PR Agency Romano Beck, Bringing Creative, Media and PR Under One Roof
Cummins&Partners has welcomed Romano Beck, who may sound like a swarthy Italian actor but is actually a PR agency.

CarsGuide Partners With Mitsubishi, Wavemaker To Create Virtual Road Trips
CarsGuide, Mitsubishi and Wavemaker create virtual road trips that includes virtual car sickness.

Petition To Ban Same-Sex Kiss In Cadbury Crème Egg Ad Garners 56,000 Signatures
Cadbury Crème Eggs join Durex condoms & Frankie Goes To Hollywood on list of things Christians find hard to swallow.

Future of TV Advertising Conference: Times Are Tough, But We’re All In This Together
B&T's reporting live from today's Future Of TV event. Not before mistakenly going to the dental hygienist conference.

TV Will Not Only Build Your Brand, It Will Get Your Cash Registers Ringing
There can be no denying TV's power as an advertising medium. Putting aside Holey Moley and Plate Of Origin, that is.

TikTok Continues To Fight COVID Misinformation
Current COVID misinformation includes the vaccine can make you pregnant while developing a Lionel Richie addiction.

Wednesday TV Wrap: 10’s The Cube Debuts To 567,000, Gives MAFS A Little Hickey
B&T's delivering all of last night's TV numbers, dipped in chocolate, rolled in coconut, with a tasty jam-filled centre.

As Bruce Springsteen Is Cleared Of Drunk Driving Charge, Jeep Resumes Use Of Super Bowl Ad
With the Springsteen saga dealt with, Jeep now turns its focus to Michelle Bridges as its next brand ambassador.

WPP AUNZ’s Unveils 32.6% Profit Drop For 2020, Revenues down 14.1%
WPP AUNZ's results out today made for some pretty sobering reading. That's why B&T read them with a couple of daiquiris.