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ABC in talks with SBS on “backroom savings”

ABC is looking at ways to save costs with SBS, while remaining independent editorially.

abc hqThe ABC is talking with SBS about pooling resources as part of a wider review to cut costs.

ABC Managing Director Mark Scott told students today at Queensland University of Technology faculty of creative industries that the broadcaster was expecting further cuts by the government.

It follows the May budget cuts as part of a government “down payment.”

“We’re reviewing support activities like property and IT, procurement, HR and finance activities in a robust fashion. Are there activities that we can drop, automate, do differently? We are working with SBS to see if, by working more closely together, we can make backroom savings, while remaining independent editorially,” he said.

“This kind of change process is not new at the ABC and has been central to investment and renewal strategies in the past. However, the projected funding cut and demands of operating in a digital media environment have now given this activity a new urgency.”

Scott said the Lewis report has not been accepted by the ABC, as a prescriptive list of ways to cut spending.

“Lewis has simply pointed out what the ABC has always understood—the fact that we have always done things one way doesn’t mean we have to keep doing them the same way. With an eye on efficiency, with a need to reinvest—and with the reality of reduced resources—difficult choices must be made.

“The ABC is not immune to the cost pressures that have squeezed the rest of the industry. Costs are rising for both acquired material and local production content. Like our rivals we battle ever increasing insurance premiums and electricity charges.”

Once the funding position from Canberra becomes clear, decisions about ABC operations and funding priorities will follow.

He also reiterated the ABC would continue to invest in Australian stories.

“The ABC’s high quality content and services will always be our competitive advantage, programming that is distinctive and plays to our strengths as a public broadcaster.

“That’s why we will continue to invest in unique quality Australian drama, like Anzac Girls and Redfern Now, and the exciting new release next month, The Code.

“I read with interest a recent analysis in The Sydney Morning Herald of the way in which reality formats have proliferated on Australia’s free-to-air commercial television services.

“Big budgets, big audiences—and lots of different ways to drive revenue. It’s more efficient to put on one show every night and promote it hard, than to have lots of programs to promote. The strategy is to drive profits and share prices.

“Look at narrative comedy. No commercial network is doing it, while the ABC invests in shows like Utopia, Please Like Me and Upper Middle Bogan.

“Similarly, we cannot expect commercial TV to invest in shows on science, religion or the arts.

“But if we want to ensure that programming like this is accessible in every Australian home, then a well-funded ABC is a sure bet.

“What is significant about many of these programs is that even if there wasn’t an ABC, commercial free-to-air television wouldn’t deliver them. It isn’t that they don’t attract an audience, it’s just that they don’t attract the biggest possible audience or the right demographics for advertisers.”

But Scott also flagged moving more content online.

“Historically at the ABC, we’ve created a lot of websites and small scale digital activity, often to small audiences. We have a long tail of online development like no one else in Australia.

“In future, we will be generating fewer sites which offer richer digital experiences and more opportunities for engagement and participation.

“We will focus resources in ways that will better benefit those growing audiences, while still offering distinctive content in specialist areas.

“We will put more specialist content, such as arts, on our sites with higher traffic, such as News, where it can attract the attention of a wider audience it deserves. We will facilitate a personalised ABC experience.”

You can read the full speech here.

One Response

  1. Why not invest some more money in ABC’s online presence, aswell as a general upgrade in quality, such as iView and offer a higher quality option and even HD streaming. Even SBS on-demand is a much more higher quality service.

  2. So far there has been a 1% cut which was funded without cuts to staff or content by efficiencies. Hockey has said he expects for further cuts, but Hockey being cut is also a possibility after the last couple of months.

    Scott is just using this to drive the further move into digital world and reforms that staff have opposed. It sounds like a sensible plan.

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