Anti-siphoning reforms

Thursday 21st September

The Minister for Communications, Information Technology and the Arts, Senator Helen Coonan today welcomed the support of the National Rugby League, the Australian Football League and Football Federation Australia for the Government’s proposed changes to the anti-siphoning scheme.

The anti-siphoning scheme was introduced in 1994 to ensure sports events of national significance continue to be shown free-to-air.

“The anti-siphoning scheme has been in operation for more than a decade and has balanced the needs of the industry with the needs of consumers,” Senator Coonan said. “Given the number of Australian homes with access to subscription television, the Government believes that the scheme is still needed to ensure that Australians have access to major sporting events on free-to-air TV. Nevertheless, I have consistently argued that the scheme should operate more effectively for all parties –FTA broadcasters, subscription television, sporting rights holders and, most of all, Australian audiences.”

In July 2006, the Minister announced the current anti-siphoning list and the anti-siphoning scheme itself would be reviewed in 2009, ahead of digital switchover and the expiry of the current list, which runs from 2006-2010.

She also announced the implementation of a “use it or lose it” approach to the scheme which will start on 1 January 2007.

Use-it-or lose it will mean any events that do not receive adequate FTA coverage would be considered for removal from the list.

“The Government has worked to minimise the impact of the anti-siphoning scheme on rights holders and subscription television and balanced that with the need to ensure listed events remain freely available to Australian viewers.”

In 2004, the Government amended the anti-siphoning list to remove a number of events that no longer received FTA coverage.

In 2005, the Government extended the automatic delisting period from six to twelve weeks, giving subscription broadcasters much greater flexibility in acquiring rights to events that FTA broadcasters had declined to purchase.

In 2005, the Minister also directed the Australian Communications and Media Authority (ACMA) to commence monitoring FTA coverage of listed events, to identify how many events were shown and how rights were used.

This monitoring will be a key input to the “use it or lose it” approach.

Since the announcement of “use it or lose it” in July, the Government has been in discussions with broadcasters and sporting rights holders such as the NRL and the AFL on the operation of “use it or lose it” and how “use” should be assessed. It is intended that guidelines for “use” and the process for considering events for removal will be finalised well in advance of the 1 January 2007 commencement date.

“It is clear from the monitoring reports I have received so far that there are a number of events that could be considered for delisting once a ‘use it or lose it’ approach commences,” Senator Coonan said.

“The Government will consider the removal of events where FTA coverage has been less than adequate.”

“However, no event will be removed where this would reduce the level of free-to-air coverage enjoyed by audiences. The Government’s primary focus will continue to be on the overriding objective of the scheme – to make sure that Australians are able to enjoy free-to-air coverage of their favourite sporting events.”