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Commercial networks against ad increase on SBS

The big three not happy about suggestions ads could double on SBS in a bid to offset budget cuts.

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2014-11-15_0158TV networks want more time for ads -just not on SBS.

Free to Air commercial networks are unhappy about suggestions SBS will increase their advertisements to offset imminent budget cuts.

Seven West Media boss Tim Worner said, “Commercial broadcasters should not be asked to subsidise funding cuts at SBS.’’

There is speculation five minutes of ads per hour could double to 10 minutes, nudging the 13 minutes allowed by commercial networks.

But such a move would impact on the big three in a chase for ad revenue.

Nine Network chief executive David Gyngell said: “I am surprised the government is prepared to compete against and inflict damage on Australian commercial broadcasters at this critical time when technology changes are already doing this.’’

TEN’s Hamish McLennan added, “We have the government making declarations for reform and to be pro-business and yet they continue to prop up the ABC and SBS.”

Source: The Australian

14 Responses

  1. Hamish, how much are taxpayers’ spending “propping up” your network? Last time I checked 7, 9 and 10 were being subsidised to the tune of $100 million. People in glass houses …

  2. I agree with Oceanographer: if we keep getting quality product, I don’t mind ads between shows. It wouldn’t impact DVR recordings (hopefully) and would keep the fees down to allow this content coming. I’d rather watch something fast tracked even by a couple days difference and support local TV than watch by another method.

  3. I don’t like it, right now you get 3 ad breaks per hour and up to 15 minutes between than, longer for movies unlike the commercial channels which you barely get 5 minutes of programing before another 3-4 min ad break.

  4. This was very amusing a few months back when 9 started bleating about more ad breaks, got myself and editing suite to track the length of some the 6 ad breaks, some programme segments are shorter that the ad breaks but sadly they include the free tv station programme advertising. Tiny little minds in tiny little tv networks. Can’t imagine what it would be like with 6×6 minute breaks or even 8×6 minute. No wait, yes I can, pretty much like it is now: unwatchable

  5. They are talking about the same SBS, right? The one whose primary channel is regulary outrated by their digital channels? The one that works on an average network audience of about 5%?

    If an extra five minutes of advertising there is a threat to 7/9/10, things are much much worse than they are letting on.

  6. SBS is a public broadcaster. It gets 200 and something million from taxpayers, and maybe a few 10s of millions in ads and merchandise sales which is uses to make a few extra shows. They also run World Movies (porn) and Studio art-house stuff.

    It operates under a charter saying that it is supposed to do multilingual and multicultural broadcasting to all Australians (which is impossible).

    SBS2 is targeting 16-34s with mostly US niche shows and some soft porn directly competing with ABC2. SBS1’s prime-time lineup is mostly English with some Scandinavian dramas.It is increasing buying US cable and network shows that commercial FTA doesn’t pick up, and independent movies, to upper middle class Anglo-Saxon viewers who don’t buy cable.

    1. Multicultural = more than just language and includes all kinds of cultural diversities.
      But to suggest World Movies is porn is pretty dismissive of a history of international cinema. Maybe you were being droll.

  7. I think SBS should be a private enterprise and run as a commercial network. Why do the peoples taxes have to support a station that many supports other minority groups. Let SBS live or die as a commercial network.The ABC should always be a government funded network although not run by the incumbent government but by a separate board.

  8. Massive hypocrisy from Worner, Gyngell, and McLennan again. They’re whining about SBS possibly increasing its tiny share of the TV ad market but they were seemingly quite happy to hold their hands out for a rebate on their broadcasting license fee for two years running, and I don’t hear them complaining about their now permanent 50% reduction in the same fee.

    If they’re so worried about their bottom line, perhaps they could have a word to their scheduling people who are apparently hell-bent on driving away anyone who would like to watch quality drama at a consistent and correctly-advertised time.

  10. I’ve noticed a lot more popular shows are on SBS – Fargo, Vikings, Brooklyn Nine Nine, Masters of Sex which cost decent money in rights so I don’t mind more advertising if good shows come with it. Without the extra advertising dollars we would see all these shows go to Foxtel which sucks for 70% of households out there.

  11. Time to face some unfortunate facts: SBS is a commercial network supported by the government. The polite fiction of “natural breaks” lasted all of about 5 minutes (well, OK, by my recollection it was about 6 months…). And, on the primary channel, they long ago gave up on their remit to be “multicultural” (apart from the token effort of showing Roundball & TdF).

    The choice is to either return SBS to its original aim of ‘showing Australia the World’, or let it live or die by the commercial sword.

    But, either way, the other commercial networks should stop being big sooks. Maybe they’d like their full licence fees re-instated? (Which, incidentially, would almost exactly cover the amount the government gives to SBS…)

  12. Stand by for comment that may induce foaming at mouth. When advertising started on sbs between programs I didn’t mind it .. They were of better quality .. And when they are inserted into natural breaks of shows ok .. But Brooklyn nine nine for example gets chopped mid scene. But I think ads between shows on abc should be allowed – particularly during sports so they can become more cost efficient

  13. Commercial broadcasters are not subsiding anyone. They are being subsidised with cheap spectrum fees and local programming funding by government arts bodies and government tax subsidies.

    This is just rent seeking by the big networks trying to get the Government to restrict competition to increase their profits. And SBS share of ad revenue is so small its over a pittance.

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