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Report: SBS pushes back on ABC cost-saving suggestion

SBS managing director rejected ideas from ABC to share office space.

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SBS has pushed back against a several ideas from ABC to share costs, as the two public broadcasters explore ‘back room’ savings.

The Sydney Morning Herald and The Age obtained documents under Freedom of Information laws.

They report ABC’s David Anderson suggested ideas such as sharing office space in Ultimo, to save money on on-site security and cleaners and share access to broadcast vans, and to create a joint online catch-up service.

“In the face of the [COVID-19 pandemic], the ABC has modified its response to the indexation pause on its triennial funding by delaying savings measures entailing staff redundancies,” Anderson said.

“It is likewise my expectation that COVID-19 is putting pressure on advertising revenues, which make up a significant proportion of SBS’s budget. I would suggest that we re-examine a number of potential opportunities on which we were previously unable to find common ground.”

But SBS managing director James Taylor, replied, “I do not believe that SBS staff co-locating to an ABC location in either Sydney or Melbourne is a feasible or desirable option for a range of reasons, including current long-term SBS leasing arrangements in Melbourne which were facilitated by a generous lessor incentive, and your view that there is insufficient available space in Ultimo.”

He was “perplexed” by a suggestion by Anderson to form a small group to discuss the ideas further given ongoing discussions about saving money were already taking place.

James Taylor also wrote of ABC’s move into specialised language services, “I understand that the ABC has commissioned some COVID-19 social media infographic work in a range of languages including Arabic, Vietnamese, Greek and Italian. As SBS is undertaking such work already, the avoidance of such external expenditure by the ABC may present some savings opportunities, particularly given the constraints you have raised in your most recent letter.”

A government review has previously proposed the closure of two ABC broadcast channels and the sharing of back-office and support services with SBS.

Both have been exploring cost savings ideas for six years, flagged as far back as 2008, but neither broadcaster favours a full merger.

The ABC and SBS launched a joint tender for captioning services and are exploring whether they should share a playout centre.

6 Responses

  1. It’s true, SBS isn’t perfect, but it should be encouraged to evolve and grow into the risk-taking, creative and intelligent broadcaster we deserve. Budget cuts along with an increased reliance on advertising has polluted some of the programming, but being absorbed by the ABC is not the answer. SBS can still be great – on its own. However, maybe NITV could become a part of Auntie? I wonder how that would go. If NITV occupied one of ABC’s digital channels they could possibly be seen by more channel surfers and consequently increase their audience. Then, a decade or two down the track, as long as Auntie can prove she didn’t damage or diminish NITV in any way, well, maybe then She might be able to convince ‘the room’ that SBS and Auntie and NITV can all co-exist in the one house.

    1. The ABC should prove first that they could manage NITV and SBS content. So far, the ABC Indigenous service is Australian Indigenous and Torres Strait Islander-centric only, and does not acknowledge the broad cultural diversity of indigenous around the world. The NITV partnership with World Indigenous Television Broadcasters Network brought about further world cultural viewpoints of indigenous cultures, where as the ABC focus in is Australia-centric, or an Australian-centric perspective of the world. Only recently it seems ABC is moving into specialised language services. Identity political agendas which relegate cultures to “black” and “white”, promoted and encouraged in ABC news reporting recently are also of concern and too narrow for cultural diversity.

  2. As both ABC and SBS have outsourced their respective TV playout functions, how can they save money? Is SBS trying to get ABC to move to Deluxe? Or SBS looking to bring playout back in-house jointly with ABC? Think you will find apart from saving money to start ABC News Channel, having outsourced playout, the ABC avoids direct strike action unlike in the past. I dare say the ABC is unlikely to bring back in-house, even with SBS.

  3. I would hope it’s not a ploy by ABC to takeover SBS. I’d be worried about ABC union and political agenda interference with SBS. SBS does have their issues with funding, but the difference is to their credit and respect, they don’t make a fuss about it like the ABC does. The only thing I ever thought would be beneficial would be allowing both networks to use content from both their archives.

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