Australian Media Landscape Braces for Shakeup

SYDNEY, July 13: The Australian government today announced a
slate of reforms for the media industry, including the relaxation of
cross-media and foreign-ownership rules, the lifting of programming
restrictions on ABC and SBS’s digital channels, and granting commercial
free-to-air broadcasters the right to each launch one new channel beginning in
2009.

The reforms were unveiled today by Helen Coonan, the
Minister for Communications, Information Technology and the Arts. “This package
of reforms will allow the Australian media sector to move from the old
analogue-based regime into the dynamic new world of digital content, where
traditional media co-exist and compete with new delivery platforms,” she said.
“It is clear to the Government and to much of the industry that the media
landscape is changing rapidly, and a flexible system is needed to allow media
companies to adapt and prosper in the new digital environment. A far-sighted
approach is needed to meet the needs of consumers now, and to provide the
benefits of new technology into the future.”

She continued, “The framework I am announcing today will
open up opportunities for a range of innovative new services for consumers,
while maintaining the existing services that the community already rely on and
enjoy, including quality free-to-air television services. By allowing new
entrants into the Australian media industry, the Government will encourage
increased diversity and new sources of information and entertainment.”

The reforms include a Digital Action Plan, with a new
analogue switchover target to commence in 2010-2012. The initiative will seek
to identify ways in which to drive take-up and will consider whether a
dedicated new body will best facilitate the steps required to achieve
switchover.

The Government will also allocate two unassigned digital
channels throughout Australia for new digital services, instead of granting
them over to a fourth commercial television network.

On the multichannel front, commercial networks will be able
to each launch one standard definition channel beginning in 2009. Broadcasters
will also be permitted to run one HDTV multichannel in advance of switchover.
The prohibition on full multichannelling by commercial broadcasters will be
retained until the end of the simulcast period.

For the public broadcasters ABC and SBS, the restrictions on
the types of programs shown on their digital channels will be lifted. They
currently can only airs programs already broadcast on their free-to-air
channels.

In addition, the Australian Government will legislate to
transfer the decision-making power to allocate commercial television licenses
from the Australian Communications and Media Authority (ACMA) to the Minister
for Communications, Information Technology and the Arts.

Cross media ownership restrictions will be relaxed, subject
to safeguards that will ensure no fewer than five independent media groups
remain in metropolitan markets and four in regional markets. However, a person
can still only control only one commercial television license or two commercial
radio licenses in any license area. And a person may not control commercial
television licenses reaching an audience of more than 75 percent of the
Australian population. These changes will be put into place on a to be
determined date in 2007.

The Government will legislate to maintain minimum levels of
local content on regional commercial television in regional Queensland,
regional NSW and regional Victoria. These requirements will also be extended to
Tasmania.

Foreign media ownership restrictions will be reformed so
that the current media-specific foreign ownership restrictions in the
Broadcasting Services Act 1992 are removed.