Free TV Australia Takes Issue with SBS Ad-Time Increase

March 24, 2015 World Screen Top Stories
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SYDNEY: Free TV Australia is asking the senate to block moves that would allow SBS to double its advertising in prime time, alleging that the proposed bill creates a fourth commercial TV license "by stealth."

The group is taking issue that SBS would have the same amount of advertising in prime time as commercial broadcasters and that they target the same advertisers with their programming. SBS maintains that it would only gain an additional A$28.5 million ($22.5 million) over the next four years from the changes. However, Free TV cites independent analysis that demonstrates that SBS would have the potential to earn an additional A$148 million ($116.6 million) in ad revenue over the next four years.

Harold Mitchell, the chairman of Free TV in Australia, said: “Everyone knows that any additional revenues SBS attracts will come from the existing television advertising pie, so effectively commercial broadcasters are being asked to subsidize a government-funded broadcaster.

“Commercial broadcasters are the major investors in quality Australian programming including drama, news and sport.

“SBS will not be required to invest one cent of additional revenues in Australian content.”

Mitchell added, “This comes on the same day that Netflix has launched in Australia announcing that they will not make any Australian content and that they will not charge any GST on their services in this country.”

“By contrast, Australian commercial broadcasters invest over A$1.5 billion in Australian content, pay a license fee on top of our normal taxes and are subject to a raft of regulations that do not apply to any other media platform.

“Allowing SBS to double its advertising in prime-time is bad public policy and will come at the expense of programming and jobs in commercial free-to-air television.

“We call on the Senate to reject the bill and ask that the government and SBS find other efficiencies to fund what they claim is a ‘shortfall’ of just over $7 million a year.”