Report: Govt open to license fee cuts
The Federal Government may put the idea of a 50% cut to licence fees before the Expenditure Review Committee.
The Federal Government is said to be open to the idea of a 50% cut to licence fees for Commercial TV networks in December 2016, followed by 50% decrease twelve months later.
The Australian reports the government is believed to be considering putting the licence fee cut before the Expenditure Review Committee.
Seven, Nine and TEN have received reductions under previous governments and now pay 4.5 per cent of gross revenues in licence fees. But they have called for further reductions whilst objecting to increased primetime ads being introduced to SBS.
A spokesman for Turnbull declined to comment.
Meanwhile SBS Managing Director Michael Ebeid writes in an article for the newspaper that advertising is not a new concept to SBS, with a third of our funding comes from commercial revenue.
“To think that SBS can walk up and take hard-earned revenue from commercial networks and create a seismic shift in the market wildly overstates our influence,” he wrote.
“SBS introduced in-program advertising in 2006. Since then, Google dominates the web, Facebook, Foxtel, FetchTV and Twitter have taken off, and the arrival of on-demand services like Stan, Presto and Netflix has everybody buzzing and engaged like never before.
“New players challenge all networks to look forward strategically and adjust their offering. SBS having this small change in advertising flexibility should be the least of anyone’s worries.”