33/07 Wednesday 4 April 2007

Media reform–moving into the digital age

The commencement of media ownership laws today marks an historic day for Australia’s media industry the Minister for Communications, Information Technology and the Arts, Senator Helen Coonan said today.

“Consumers will be the big winners from the reforms. For twenty years Australia has had a set of media control rules which amount to a major restriction on how media markets and companies operate. Now, with the lifting of those restrictions, existing companies will be able to invest, and new players will be free to enter the media marketplace,” Senator Coonan said.

“However, the Government is mindful of the need to protect diversity in media, and for the sector to operate competitively, and in the national interest. Accordingly, numerous safeguards are built into these reforms.

“A ‘5/4’ floor will be placed under the number of mergers that could take place and this will be policed by ACMA. This means six voices for Sydney and Melbourne, five for other capitals and four for regional markets. And no more than two of the three regulated platforms (that is, commercial radio, commercial television and Associated Newspapers) can be controlled by the same person or organisation in any one licence area.

“Localism and diversity will also be maintained, particularly in respect of rural and regional Australia. Just last week, ACMA imposed a licence condition requiring regional radio broadcasters to maintain their staffing levels and studio numbers in licence areas following a trigger event. This condition will ensure that regional radio stations will continue to have a presence in their local communities following any changes in ownership.”

Senator Coonan said the ACCC would play a critical role in assessing competition issues associated with mergers, including in regional areas where media markets operate on lower revenue and higher costs.

“Importantly this new regulatory framework also recognises the significance of new digital media. The old regulatory framework based around radio, television and newspapers had become outdated and ineffective.”

“The media reform package also underpins Australia’s conversion to digital broadcasting. Last year, I launched an action plan for Australia’s conversion to digital television.

“A key step in this plan is the establishment of Digital Australia, a dedicated switchover body within my Department to coordinate and oversee Australia’s transition to digital television. It will be located in Sydney and its establishment is well underway.

“Today I am also announcing membership of the Industry Advisory Group which is being established to work with Digital Australia.

“I have received nominations from industry for this group and membership details are attached. I also intend to appoint an appropriate person or organisation to the group to represent the interests of consumers,” Senator Coonan said.

The Industry Advisory Group will meet regularly to consider matters referred to it by Digital Australia, or issues which its members may identify as requiring consideration.

The group is expected to provide advice on issues of concern to industry and strategies for meeting the switchover timetable, including ways to coordinate information campaigns for consumers.

“As part of the media reform proposals, I also announced in 2006 that two currently unassigned channels of television broadcasting spectrum would be allocated to provide new digital services for Australian consumers,” Senator Coonan said.

“The allocation of the channels will be conducted ACMA later this year, and I hope that new services will be available by 2008.

Media Contact: Fiona Telford 02 6277 7480

Digital Australia—membership of the Industry Advisory Group

The Digital Australia Industry Advisory Group will comprise one representative from each of:

• The Seven Network;
• Network Ten;
• The Nine Network;
• The Special Broadcasting Service;
• The Australian Broadcasting Corporation;
• The regional commercial broadcasters;
• The Australian Retailers’ Association (from a member company);
• The Consumer Electronics Suppliers’ Association (from a member company);
• The Australian Electrical and Electronic Manufacturers’ Association (from a member company)
• Digital Broadcasting Australia;
• The Community Broadcasting Association of Australia;
• Broadcast Australia;
• Australian Subscription Television and Radio Association; and
• The Australian Communications and Media Authority.

The Government also expects to appoint an appropriate person or organisation to represent the interests of consumers.