The Federal Government's background paper on Media Ownership and Control has been welcomed by the commercial networks which say it has acknowledged that changes to the 75% reach rule would have no impact on the market.
While the Seven Network has declined to comment on the paper, both Nine and Ten said it reaffirmed the view that the rules were no longer relevant.
Network Ten CEO and executive chairman Hamish McLennan said that the current rules belong in the last century.
“They are outdated, ineffective and anti-competitive,” McLennan said.
They prevent home-grown media companies from competing with online behemoths whose growing global dominance is unfettered by regulation, or local tax laws. They inhibit local players from truly taking on the internet giants in this market. They also prevent commercial media companies from growing as the ABC is allowed to do across multiple platforms.”
A spokesman for Nine said that there had already been support shown for the relaxation of the rules and the paper acknowledged this.
“Nine welcomes the report and notes there was a bipartisan report from the last parliament unanimously recommending the removal of the reach rule,” the spokesman said.
“We believe removal of the rule is critical to the future of broadcasting and regional broadcasting in particular, and we will work with government throughout their consultation process.”
The 78-page report was careful not to draw conclusions or make recommendations, but highlighted the impacts of changing a range of reach and ownership regulations including the “5/4” rule, the “2 out of 3” rule, the “75% audience reach rule”, and the “one to a market” and “two to a market” rules.
It also looked at how overseas markets had adapted to changes, assessed the impacts of the 2006 media reforms and analysed the changes to control of a range of major media companies since the 2006 reforms.
“Accessing online news, current affairs and opinion, in a variety of forms, has become more prevalent since the last time the control and ownership rules were substantially revised with the passage of the Broadcasting Services Amendment (Media Ownership) Act 2006. Indeed, the business of news media production and distribution has changed dramatically since this time, as has the social and cultural environment in which news is originated and consumed,” the paper said.
“However, it is unclear what these changes will mean for the future of professionally produced news media and, in turn, the policy and legislative settings that should govern them.”
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.
Have something to say? Send us your comments using the form below or contact the writer at adnews@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.