It's official. Media reforms have been approved, ending a long-running and arduous process that has rumbled on for years.
Just before 6pm last night Communications Minister Mitch Fifield finally got his media reform overhaul through the Senate, after recent months of intense negotiations with crossbenchers.
Top line changes will see the removal of broadcasting licence fees and the repeal of the two out of three and 75% audience reach media ownership rules. The anti-siphoning scheme will be amended, restrictions on gambling advertising in live sports events across all platforms will go ahead and they'll be a major review of Australian and children’s content – as well as a cash boost to also help support the broadcasting of women's sports and also more niche sports.
The removal of the 2/3 restriction limited an Australian company from owning more than two of a radio licence, TV broadcast licence or newspaper in the same market.
A long-running saga
Ten Network CEO Paul Anderson says Ten is relieved at the prospect of saying goodbye to the “world's highest licence fees and the antiquated ownership laws” and thanks to these reforms, it will now have millions more to invest in local content and more options to grow and strengthen its business.
“Like all great television dramas, this has been a long-running saga, full of twists and turns, and even with a nail-biting cliffhanger,” Anderson says.
The reforms had been stuck in the Senate since June with the Government making a range of concessions to win over vital blocks of support from One Nation and Nick Xenophon Team.
See: Government cuts media reform deal with One Nation
The changes are the biggest reform to Australian media laws in nearly three decades and were made possible after the government secured enough Senate support to push through the epic overhaul of media ownership – it clinched a deal with Nick Xenophon on Tuesday.
A $60 million package to help regional and small news outlets secured three Nick Xenophon Team senators to the cause, helping communications minister Mitch Fifield surpass the 10 crossbench votes needed for the bill to pass through Senate.
Other backers include 29 Coalition senators, four One Nation’s senators, Derryn Hinch, Lucy Gichuhi, David Leyonhjelm and Cory Bernardi. Senators opposed include 26 from Labor, seven from The Greens and Jacqui Lambie.
Seven West Media chairman Kerry Stokes says the historic changes will give Australian media companies a real opportunity to compete with unregulated global players.
“The government and the Senate crossbench should be congratulated for their commitment to giving Australian media companies a fighting chance. I would like to thank Minister Fifield and Prime Minister Turnbull who have delivered a landmark change for our industry today,” Stokes says.
“I also very much welcome the support for this legislation from Senator Nick Xenophon who has consistently been a strong supporter of a diverse and viable Australian media sector.”
See: Government closes in on media reform deal with Xenophon
Seven West Media CEO Tim Worner says the Government has achieved the comprehensive reform package that Seven has been calling for since 2013.
“That is no easy feat. What has been achieved today will truly empower broadcasters and publishers to meet the increasing pace of change that we are facing,” Worner says.
What the reforms get us
Fifield’s media reforms are the first major changes to media ownership rules that take into account the upheaval caused by online media and global internet companies on newspapers, TV networks, radio stations as audiences and advertising dollars decline.
They dismantle market barriers that were introduced in Keating's media reforms of 1987. This will allow a media company to own media assets in TV, radio and print in a single market. It also removes the 75% reach rule, which means metropolitan TV networks will be able to broadcast anywhere in Australia.
The media reforms aim to relax ownership barriers that have shackled traditional media companies from consolidating and aim to remove dated restrictions that do not apply to new market players such as global digital media companies, social media platforms and internet streaming platforms.
The reforms also remove some of the sports events listed on the anti-siphoning list and place restrictions on gambling advertising. Another significant boost within the package is replacing the draconian broadcast license fee with a more reasonable fee based on spectrum costs.
Labor and The Greens opposition to media reforms is based on concerns about media diversity if the two-out-of-three rule is removed. Aside from the rule being largely redundant, a greater risk to media diversity is the collapse of a major media company like Ten.
Ownership deregulation clears the way for market consolidation, allowing media companies to build scale and diversify product offerings across multiple media channels at a time when digital tech companies are consuming most of the growth in advertising.
See: Media reform: A package of compromise for the greater good
Competing with Google and Facebook
Free TV Australia also congratulated the Senate for passing the package of media reforms, supported by all of Australia’s media companies.
Free TV Chairman Mr Harold Mitchell says: “This is a significant win for Australians who love great local content, Australian stories and the thousands of Australians employed in telling them,.
“We warmly welcome the acceptance that we can’t continue to compete with the likes of Google and Facebook under media laws that pretend the internet doesn’t exist and levies the world’s highest licence fees.”
The commercial radio industry today also welcomed the successful passage of the broadcast reform bill through the Senate.
“This is a positive outcome that will bring Australia’s media laws into the digital age and help ensure local media has a chance to compete, evolve and grow,” Commercial Radio Australia chief executive officer Joan Warner says.
“Radio broadcasters can now move ahead with much greater certainty and ability to invest in local content and innovation across areas such as digital radio, streaming and podcasting without the burden of broadcast licence fees. We look forward to continuing to produce and promote the millions of hours of Australian content provided by Australian commercial radio each year.”
Fairfax Media Chief Executive Officer Greg Hywood says he believes this comprehensive package of reforms will create a competitive environment for Australia’s media sector.
“It is no small feat having the sector united on what is the best legislative setting for the future. Fairfax acknowledges that there was broad support by the Senate crossbenchers,” Hywood says.
“Mention must also be made of the efforts of Nick Xenophon and his team for getting behind and pushing for material support for regional journalism.”
In a nutshell
- Repeal of the 75% reach rule and the 2-out-of-3 rule
- Abolition of outdated licence fees
- Introduction of a spectrum pricing model
- Changes to the anti-siphoning list
- Reforms to gambling advertising that cover commercial television, radio, subscription television and online streaming services
- An innovation fund and a cadetship program for small metropolitan and regional media organisations.
See: CEOs lend unprecedented cross-media support to media reform package
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