Stephen Conroy rules out fourth free-to-air television network

[admin]

THE federal government has decided not to allow a fourth commercial free-to-air television network.

The decision came as Communications Minister Stephen Conroy today unveiled the government's initial response to the Convergence Review, promising more changes to come in 2013.

Senator Conroy said no spectrum or broadcast licences will be made available to enable a fourth free-to-air television network. But he said in the long-term the government would consider potential uses of the "sixth channel'' as broadcasting and online technologies evolve.

The government will allow community TV to use the spectrum intended for the sixth channel until at least December 31, 2014.

The existing networks would benefit from an extension of their current rebate on broadcasting licence fees by a further 12 months, ahead of moving to reduce the fees permanently by 50 per cent, to a maximum of 4.5 per cent of revenue.

Senator Conroy also announced the government would seek parliament's approval to remove the restriction on a person controlling a network of commercial television stations that has an audience reach of greater than 75 per cent of the Australian population.

He said the removal of the so-called "75 per cent rule'' would be subject to written undertakings about local content obligations in regional areas.

Changes will also be made to increase Australian content.

Commercial TV multichannel broadcasters will be required to show 730 hours of local content in 2013, increasing to 1095 hours in 2014 and to 1460 hours in 2015.

This includes an incentive for first-release drama by allowing an hour of first-release drama premiered on a digital multichannel to count for two hours under the transmission hours requirement for multichannels.

The 55 per cent Australian content quota for the commercial television broadcasters' primary channels will be retained.

Julie Flynn, chief executive of Free TV Australia, which represents the nation's commercial free-to-air networks, welcomed the changes.

"Today's announcements are a welcome first step towards ensuring that all viewers can continue to see quality Australian programming for free in a rapidly changing market,'' she said.

The laws will be drafted by March 2013.


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[nbound]

Government moves to ensure quality Australian content stays on Australian television

The Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced a package of measures to ensure quality Australian content continues to be seen on Australian television.

“Free-to-air television plays an important part in our lives, and seeing Australian stories told on TV is vital in reflecting and maintaining our Australian identity, character and diversity,” Senator Conroy said.

“To make sure that we keep being able to watch Australian content, we are taking a number of steps to enable commercial television broadcasters to continue to invest in and broadcast Australian content.

The Government will:

• Immediately extend, via regulation, the current rebate on television broadcasting licence fees by a further 12 months, ahead of moving to reduce television broadcasting licence fees permanently by 50 per cent, to a maximum of 4.5 per cent of revenue. The rebates will have effect for the 2012-13 financial year.
• Introduce a multichannel Australian content requirement for each commercial television broadcaster of 730 hours in 2013, increasing to 1095 hours in 2014 and to 1460 hours in 2015. This includes an incentive for first-release drama by allowing an hour of first release drama premiered on a digital multichannel to count for two hours under the transmission hours requirement for multichannels.
• Retain the current 55 per cent transmission quota for the commercial television broadcasters’ primary channels, but introduce greater flexibility into the current arrangements for sub-quotas.

“These measures are part of the Government’s initial response to the Convergence Review. The Government’s consideration of the review is continuing, and further announcements will be made next year.

“The Government will develop legislation to implement the reforms announced today by March 2013, with appropriate transitional arrangements for the new Australian content measures. These content requirements will apply from 1 January 2013.

“The Government will also start consultations early in 2013 on how captioning levels will be increased on multichannels following digital switchover. These measures address content and captioning levels on digital multichannels that were to be separately reviewed.

In 2011-12 the commercial television industry invested a record $1.35 billion in Australian programming: drama, sport, news and current affairs and light entertainment. In the same period, revenues have remained weak and costs have increased.

“Commercial free-to-air television is under pressure from the structural change taking place in the media due to the convergence of content delivery platforms and changing consumer habits. Without adjustments to the current rules, the industry could be forced to drop quality Australian content as cost-cutting bites into programming.

“Updating the rules on commercial free-to-air television broadcasters gives them certainty, and allows them the flexibility and capacity to innovate and thrive.

The Government has also decided that no spectrum or broadcast licences will be made available to enable a fourth free-to-air television network. This follows the Minister’s review of future uses of the so-called ‘sixth channel’ of television spectrum.

“Online technologies like IPTV are giving people new ways to access content. The low barriers to entry for these online content services and the scope for future innovation mean that in the long term, these online platforms are likely to be a real alternative to traditional terrestrial television. The rollout of the NBN will further facilitate this.

“Potential uses of the sixth channel will be considered in the longer term, in the light of the Australian Communication and Media Authority’s assessment of future broadcasting technologies.

“In the meantime, the Government will allow community television to use spectrum intended for the sixth channel until at least 31 December 2014. The Government remains committed to ensuring community television has a permanent spectrum allocation for digital broadcasting.”

The Government will also remove the out-dated restriction on a person controlling a network of commercial television stations that has an audience reach of greater than 75 per cent of the Australian population—the “75 per cent reach rule”. This will be subject to adherence with existing local content obligations in regional areas and written undertakings in respect of those obligations. This restriction will be removed subject to the approval of Parliament.

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Ive reposted this on DTV Forum Australia and added this:

The TL;DR Version--- [text in brackets indicates my own comments or suspicions]

• New Australian content quotas for multichannels
• Extra captioning on multichannels
• No chance of 4th commercial network utilising 6th channel [Bugger ]
• Potential uses of 6th channel to be considered in the longer term [not sure exactly what this means; non-fta TV usage, non-TV usage at all, ask us again in 5 years?]
• Community TV to use spectrum for 6th channel until at least end of restack (30/12/14) [I doubt this means we'll see Community TV on CH10, rather that they will retain the current interim arrangements, of course the final restack timetable hasnt been released yet so it is a possibility]
• 75% of population ownership limit to be abolished [Wonder if we can expect a WIN expansion?]

[gordon_s1942]

I am sorry but based on the crap of repeats currently on both Digital FTA and PayTV what would you get on a 4th Network?
We have been all through 'Local Content' before and while I am all for local artists employment in advertising and other programing, do we have the numbers to make it work?
TV is a voracious monster in devouring material as I remember reading that in the US when Cable was introduced there were a large number of 'Home Brew' broadcasters who has shows such as Transcendental Meditation and Macrame Rug Knitting followed by Yoga with In depth discussions on why Fish scales cant be used to measure hat sizes soon lost their appeal and vanished forever.
The old often quoted remark of '500 Channels and nothing worth watching' applies today the same as when it was first said.
Another minor thought is cost and profits.
Not that it was likely to happen but both the Nine and TEN networks have been experiencing lean times that may have forced them off air without some serious negotiations.
Look at Austar and how it shambled from one financial crisis to another and even now it has been swallowed in the Telstra/Foxtel conglomerate, I cant see it doing more than paying its way than it was doing before being absorbed.
One time a TV Broadcast license was basically permission to print your own money but not so today.

[DB44]

Where would they find anyone stupid enough to want to run a fourth free to air network of any substance let alone one that actually meets the so-called goals?

[gordon_s1942]

Where would they find anyone stupid enough to want to run a fourth free to air network of any substance let alone one that actually meets the so-called goals?

DB44, Oddly enough I think you could find those ready to invest when you look at the speed another company has tried to take over the Ethnic Broadcasters that have failed so publically in recent times.
As for meeting the 'Goals' required, promises are easily made and its amazing when faced with a dilemma of closing down an enterprise or 'amending' requirements (see merger of Austar/Foxtel/Telstra) a government can be very pliable when that happens.

[Guiseppe]

Umm. Where does he find quality Australian content? None on my TV! In fact no quality content from any country ...

[DB44]

DB44, Oddly enough I think you could find those ready to invest when you look at the speed another company has tried to take over the Ethnic Broadcasters that have failed so publically in recent times.
As for meeting the 'Goals' required, promises are easily made and its amazing when faced with a dilemma of closing down an enterprise or 'amending' requirements (see merger of Austar/Foxtel/Telstra) a government can be very pliable when that happens.

You may be right, Gordon. I tend to think such a person would, to put it crudely, have to have testicles of steel. Put their money down and then face down regulators over the requirements. Or perhaps, perhaps, come to some sort of understanding with the opposition and wait for a change of government.