Govt funding boost for ABC, SBS in new media reforms.

• $3.285b for ABC over the next 3 years
• $953.7 million for SBS
• Proposal for large streaming platforms to invest 5% of gross revenue on Australian content
• $7.3m Television Research and Policy Development Program to make recommendations to govt
• 10m in grants for new regional cadet journalists and upskill existing  

The Morrison Government has announced its next steps in Media Reforms which include a range of measures such as increased funding for ABC & SBS, and a proposal for 5% of revenue on large Streaming platforms on local content.

It also includes a $7.3 million Television Research and Policy Development Program to provide the Government and industry with information to make choices about the future of free-to-air television services in Australia.

Minister for Communications Paul Fletcher said, “As well as a number of specific actions the Government is taking now, we are setting out the next steps for Government to work with the broadcast television sector on a future regulatory structure that is optimised for the technology changes the sector faces.”

The measures include:

• A $7.3 million Television Research and Policy Development Program to provide the Government and industry with the information needed to make choices about the future of free-to-air television services in Australia.
• The extension of transitional support to relevant regional broadcasters for two additional years.
• A proposed Streaming Services Reporting and Investment Scheme to incentivise and, as needed, require large subscription video on demand (SVOD) services to invest in Australian content.
• A National Broadcasters Reporting Framework to provide the Government and the public with enhanced information on the provision of Australian content by the ABC and SBS.
• A recalibrated drama expenditure requirement for subscription television broadcasters.
• A $10 million Journalist Fund to support the provision of public interest journalism in the regions.

ABC will receive $3,284.9 million over the next three years. This includes $45.8 million under the Enhanced News Gathering program to strengthen local public interest journalism in regional communities. This is an increase of $87.2 million over the current triennium. ABC will also benefit from a return of indexation on base operational funding.

SBS will receive $953.7 million, including an additional $37.5 million in ongoing funding to support its long-term sustainability. This is an increase of $56.7 million over the current triennium.

“The ABC and SBS are essential components of Australia’s diverse media landscape,” Minister Fletcher said.

“We’ve delivered an increase in funding for both national broadcasters compared to both the 2016-19 and 2019-22 funding period. This funding commitment is designed to provide certainty for both broadcasters and is being announced well in advance of the next funding period to assist the ABC and SBS to develop their forward plans.”

ABC and SBS will also receive additional funding for audio description services for blind and vision impaired Australians.

There is also a new reporting requirement for national broadcasters, with an expectation both “will perform to the highest standards and where they do not, they will be held appropriately accountable. The Government will continue to work with the national broadcasters to ensure these standards are met.”

Both broadcasters will be asked to report to the Australian Communications and Media Authority on their provision of, and expenditure on, Australian content.

The Government also intends to implement a Streaming Services Reporting and Investment Scheme to incentivise large streaming services, such as Netflix, Amazon, and Disney, to invest in Australian content.

The proposed Scheme will require large SVOD services to report annually on their expenditure on, and provision of, Australian content, and the steps they are taking to make Australian content prominent and discoverable on their services.

Where these services fail to invest 5% of their gross Australian revenue on Australian content, the Scheme will enable the Minister to impose a formal investment requirement on these services. But the figure is lower than the 20% preferred by Screen Producers Australia.

Triennium funding for National Broadcasters – 2022-23 to 2024-25

Note: this is a three-year funding commitment, expiring on 30 June 2024, for additional news services in Arabic and Mandarin. A decision on whether to extend this funding will be taken as part of the 2024/25 Budget, based upon an assessment of the performance of these additional services.

ABC Chair Ita Buttrose:

“I am delighted with the Government’s decision to commit $3.3 billion over the next three years to the ABC. It will allow the national broadcaster to continue doing what it does best – provide information and entertainment to Australians wherever they live.”

ABC Managing Director David Anderson:

“On behalf of the ABC, I welcome the funding certainty this announcement brings the national broadcaster for the next three years. The $3.3 billion over the next triennium, announced by the Minister Paul Fletcher, sees the resumption of indexation, the continuation of the Enhanced Newsgathering (ENG) program that provides vital services across the country, and ongoing support for audio description services for blind or visually impaired audiences. ENG funding has delivered more tailored news to local communities and has seen the ABC invest more in specialist resources that provide vital context and analysis about issues that matter to all Australians. Importantly, this announcement also guarantees the ability of the ABC to continue to reinvest funds from the recently concluded Google and Facebook deals into rural and regional services.

“As the ABC’s Managing Director, I have consistently made the case for the resumption of indexation on the ABC’s base funding and the continued support for ENG program. The triennial funding announcement is an important recognition that the ABC is needed now more than ever, and this funding is required so it can continue to its vital role in our democratic society.

“I would like to thank the Minister, Paul Fletcher and the Government for recognising the enduring value of the ABC as we mark 90 years of serving of Australians.”

Bridget Fair, Free TV Australia Chief Executive Officer:

“The announcement from the Government today acknowledges the critical issues faced by the Free TV sector and the millions of Australians who rely on our services.

“While we welcome the opportunity to continue to work with the Government on the future delivery options for television services, there remain policy matters that must be addressed now in order to ensure that Australians can continue to enjoy access to local news, Australian entertainment programming and live and free sport.

“This means that the Government must commit now to:
• Introducing a new law to require that free TV services, including live TV and catch-up apps, are prominent and easy for consumers to find on modern digital television sets;
• Protecting the access of all Australians to live and free sport by renewing the anti-siphoning list and expanding it to guard against sport being put behind the paywalls of multi-national streaming companies; and
• Building on the Government’s commitment to extend the commercial broadcasting spectrum tax support payments for regional broadcasters by reducing the tax for all broadcasters in line with international best practice.

“Now is the time to act on these issues. With 13 million Australians tuning in each and every day to commercial television, there is no time to wait to secure the future of these vital services.

“Imagine if Ash Barty’s Aussie Open triumph was only available to those Australians who could afford to subscribe to a streaming service, or had reliable internet? This is the stark reality that we face if these important reforms are not immediately put in place.

These messages are being reinforced by our public campaign—Free. For Everyone—that launched in December 2021. This campaign, currently being rolled out across the country, reinforces the value of free television to Australians and its power to bring Australians from all walks of life together.

“We remain committed to working with all sides of politics to ensure that the policy settings are right for the future of television services that all Australians rely on. That work must start today.”

Jonathan Holmes, Chair, ABC Alumni:

“ABC Alumni welcomes the government’s announcement that indexation of the ABC’s operational budget will be restored, and that the funding for Enhanced News Gathering in regional and rural Australia will continue.

“However, the government’s claim that, overall, the public broadcasters’ budgets have been increased must be treated with caution. Coalition governments since 2014 have cut more than half a billion dollars, cumulatively, from the ABC’s direct funding. The ABC lost almost $200 million more over those years due to the cancellation, in 2014, of the 10-year DFAT contract for ABC International’s Australia Network television service in the Asia-Pacific.

“Promises not to cut the ABC’s budget have been repeatedly broken by coalition governments.

“ABC Alumni maintains that the current three-year funding agreements should be replaced by five-year agreements, to guarantee funding across elections, and provide certainty of planning for ABC management. The ALP has announced that it supports five-year agreements. We are disappointed that the Coalition government has not yet supported this change.

“Meanwhile the precise budget allocations to the ABC and SBS will need close scrutiny.”

AWG Executive Director Claire Pullen:

“The Australian Government should provide a framework to ensure the protection of Australian drama for Australian viewers and the generation of Australian jobs.”

Matt Deaner, CEO Screen Producers Australia:

“We are particularly pleased that the proposal will focus on new Australian commissions, which is a progression from earlier proposals which would have captured acquisitions and re-licensing. New Australian content is where the public policy upside is for both audiences and industry and this is a welcome development,” said Deaner. “We are also supportive of what we understand is a move away from initial proposals which would have seen some streaming services exempt from a new regulatory scheme based on whether they had ownership links with licensed broadcasters.

Australians deserve to see their stories on the screens they are using regardless of the behind-the-scenes corporate structures of the services they subscribe to.” “We are also pleased to see a proposal for greater transparency around Australian content levels on our national broadcasters, who play such a crucial role in the local content ecosystem,” said Deaner. “We will, however, be carefully considering the Discussion Paper released by the Minister today and we welcome the ongoing commitment to consultation, as there are a range of complex issues which need further consideration and refinement,” said Deaner. “Of critical importance is the rate of contribution expected from, or required of streaming services. We are concerned that the proposed threshold for the first step in the regulatory scheme of 5% of gross local revenues would be an opportunity missed and would not create a meaningful amount of local content for audiences, or investment and job-creation in industry.

“A 5% requirement is also a very modest return on the almost $2 billion in revenue the streaming services enjoy from operating in Australia, sitting at about $100m annually. This also is an incredibly small proportion (less than 0.3%) of the $37 billion the major international streaming platforms reportedly have to spend on content worldwide, and a low requirement here could see Australia miss out in global investment strategies as platforms invest in territories with more competitive regulatory settings. SPA along with the Australian production industry have called for a minimum 20% investment requirement, which is based on international precedent and which would create an additional 300 hours of Australian content and 10,000 additional jobs,” said Deaner.

“We note there is some proposed flexibility in the rate to be applied to SVOD services to be designated under the second step of the regulatory scheme, however, we are concerned that this might create further uncertainty,” said Deaner. “We are also extremely concerned to ensure there are robust safeguards for Australian children’s content and other at-risk genres. Following deregulation in the commercial free-to-air television sector, there are now no regulated safeguards that ensure Australian children have access to content made especially for them, and we have seen in recent official data releases that the results of deregulation have been extremely damaging to audiences and the local sector. This is true also for Australian adult drama.”

“We will also continue to seek the Government’s engagement on the critical issue of bargaining conditions between mostly global streaming platforms on the one hand, and mostly SME producer businesses on the other. A safety net of minimum negotiating standards is crucial to ensuring the economic upside from deals is shared fairly and to create the conditions for a sustainable local industry.”

This post updates.