Australian Government Media Reform ACMA/ITU International Training Program 8 September 2006 Jenny Brigg and Lesley Osborne

INTRODUCTION Australian Government Media Reform discussion paper released on Tuesday 14 March New Media Framework for Australia released on 13 July Parliamentary tabling of draft amendments to the Broadcasting Services Act 1992 (the BSA) anticipated later this year.

PRESENTATION OUTLINE Overview of Government Media Reform Agenda Brief Historic Overview Current Legislation Proposed Legislative Changes Policy Changes Transition to Digital Television

MEDIA REFORM OVERVIEW Remove broadcasting foreign ownership restrictions Relax current restrictions on cross-media Protect local content Introduce broader enforcement powers for ACMA Introduce use-it-or-lose-it component to Anti- siphoning list Encourage digital broadcasting take-up

BRIEF HISTORIC OVERVIEW 1935 Media control limits for commercial radio 1951 Foreign ownership limits for broadcasting 1992 Foreign ownership limits for Pay TV 1992 Removal of foreign ownership limits for radio 1987 Cross-media control limits introduced 1994 the Minister publishes 1 st ‘anti-siphoning’ list Digital television broadcasting introduced

CURRENT LEGISLATION- Media Control The following media control rules will continue to apply: Two-to-a-licence area control limit for Radio One-to-a-licence area control limit for TV Combined licence area population for TV not to exceed 75% Control of both TV & datacasting transmitter prohibited

CURRENT LEGISLATION- Foreign Ownership A foreign person not to be in a position to control TV 2 or more foreign persons must not have company interests in commercial TV that exceed 20% Not more than 20% of the directors of each commercial TV licensee may be foreign persons

CURRENT LEGISLATION- Cross-Media A person must not be in a position to exercise control of: – A commercial television broadcasting licence and a commercial radio broadcasting licence in the same licence area – A commercial TV broadcasting licence and a newspaper that is associated with the licence area of the licence – A commercial radio broadcasting licence and a newspaper that is associated with the licence area of the licence

CURRENT ENFORCEMENT POWERS ACMA’s current enforcement powers in relation to broadcasting matters include the power to: Issue a notice Suspend or cancel a licence Refer a person for criminal prosecution Impose licence conditions Make standards

PROPOSED LEGISLATIVE CHANGES Remove broadcasting foreign ownership restrictions Relax current restrictions on cross-media Protect local radio content Extend local content requirement for regional TV Broader enforcement powers for ACMA

Remove Foreign Ownership Restrictions Media-specific foreign ownership restrictions in the BSA to be removed. Newspaper-specific foreign ownership restrictions to be removed from the Foreign Acquisitions Takeover Act The media to remain a ‘sensitive sector’ under foreign investment policy Direct foreign investment in media sector subject to approval by Treasurer.

Relax Current Cross-Media Restrictions Cross media control limit to be replaced by threshold test (minimum of 5 independently controlled media entities in metropolitan licence areas and 4 in regional licence areas). Commercial licences not delivered via broadcasting services bands exempted from control laws.

Protect Local Content (Radio) Local Content Plans (minimum local content levels for regional commercial radio) will be required where: – A licensee becomes part of a cross-media group – There is a change in control of the licence – The format of the service is narrowed – The Minister directs ACMA to consider imposing local content requirements

Protect Local Content (TV) The local content licence condition requirement for regional TV licensees (currently affects mainland eastern states of Australia) is to be extended to include Tasmania. The licence condition requires minimum levels of local content including: – news – local community service announcements – local emergency warnings

Broader Enforcement Powers for ACMA ACMA’s current enforcement powers are to be extended to include the power to: – Impose civil penalties (where only criminal penalties currently available) – Obtain injunctions where commercial broadcasting services are provided without an appropriate licence – Accept enforceable undertakings from industry – Issue infringement notices for minor breaches of BSA related to reporting requirements

POLICY CHANGES Free-to-air television broadcasters have first right to bid for events on Anti-siphoning list (the list) (includes sporting events). From 1 January 2007, a use-it-or-lose-it component will be introduced for sports events on the the list. The scheme will identify criteria against which the ‘use’ of sports rights will be measured. If free-to-air broadcasters don’t ‘use’ the sports rights, events could be removed from the list.

TRANSITION TO DIGITAL TELEVISION Digital terrestrial television broadcasting (DTTB) available to 96 percent of Australians 20 percent household penetration of DTTB 33 percent including subscription television New digital switch target Digital Action Plan (DAP) to drive take-up of DTTB

NEW DIGITAL CONTENT Open up two reserved digital channels - new mobile television or new in-home services Commercial free-to-air television - one standard definition multichannel from 2009 Full multichannelling at time of digital switchover Commercial free-to-air - one high definition multichannel from 2007 (removing simulcast requirement) Remove restrictions on types of programming which can be shown on ABC and SBS multichannels

DIGITAL ACTION PLAN (1) DAP to be released in late 2006 with necessary tasks to achieve analogue switch off Challenges for DDTB in Australia High dependence on terrestrial free-to-air television Horizontal market for individual DTTB equipment purchases Limited new services

DIGITAL ACTION PLAN (2) Variety of tasks for government, broadcasters, retailers and consumers DCITA, ACMA and possible new switch over body (as in UK) Focus on moving the market ACMA’s role to date planning of digital transmission and research ACMA future role – planning, regulation and research

RELATED RESEARCH TASKS (DIGITAL) Trends in awareness and adoption Fieldwork studies into various impediments to DTTB uptake – residential equipment; multi-unit dwellings Consumer information and education Forward planning for the digital dividend

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