Free TV welcomes Government action to ensure digital platforms pay for Australian news
Free TV commends the Government on taking action to ensure global technology companies pay for the Australian journalism that delivers significant value to their platforms. The News Bargaining Incentive will contribute to the sustainability of commercial TV broadcasters and other verified news content creators so that all Australians can continue to access trusted news wherever and however they choose.
Free TV Chair Greg Hywood said: âAustralians need a strong and vibrant news media sector now more than ever. They turn to their local trusted news providers through bushfires, floods and global instability.
The Governmentâs announcement today that Meta and other digital platforms will be incentivised to make commercial deals with news publishers through a charge and offset mechanism, marks a critical step in safeguarding the future of local journalism.â
Free TV CEO Bridget Fair said: âThis is a win for the Australian public and for the sustainability of Australian news media. Global digital platforms enjoy extreme market power and the inability of Australian media companies to negotiate fair value for their content with these essential and unavoidable business partners is a threat to our ability to continue to access the local journalism that is essential to our democracy.
âThe News Bargaining Incentive is a crucial step forward for Australian media and more importantly for the millions of Australians who want their local broadcast services to provide them with trusted news and shared entertainment experiences.
âWe look forward to working with the Albanese Government on the consultation process for the final design of the scheme in coming months.â
Meta announced in March this year that it would no longer pay for the use of Australian news content on Facebook. This had been a significant source of revenue in recent years for an industry that is being hit by increased advertising competition and other cost pressures.
Meta and other digital platforms should be fairly contributing to Australian journalism given the benefits they receive from operating in Australia. This was recognised years ago with the enactment of the News Media Bargaining Code, and todayâs announcement confirms the Governmentâs commitment to supporting the Australian news media industry.
Free TV has welcomed new regulations that specify the minimum requirements for the prominence framework legislated by the Albanese Government earlier this year.
The new prominence regulations will ensure that local free TV services must be pre-installed on all new connected TVs and that they must be on the home screen of the device and a similar location, size and shape as the apps of global streaming services and other apps on the primary user interface of the television.
âThe prominence framework introduced by the Albanese Government is an important further step to ensure all Australians have easy access to our valuable and unique free TV services in a modern television environment. Ensuring this access has been at the heart of the work Free TV has embarked on throughout 2024 with the Government and we welcome this announcement to support simple access and a viable industry environment,â said Bridget Fair, CEO of Free TV.
âBeing able to easily find local TV services is essential to keeping Australians informed in times of fire and flood, to see our culture reflected in local programs, and gather around to cheer our favourite sports live and free on TV.â
âThese new regulations will give even greater certainty to local free TV services ensuring they cannot be crowded out on the home screen by global streamers who pay for premium positions on the TV home screen. These rules level the playing field for local TV services that are part of the Australian way of lifeâ.
The Broadcasting Services (Minimum Prominence Requirements) Regulations 2024 set out important details about what manufacturers will be required to do to comply with Australiaâs new prominence laws for TV.
âWe are very pleased that these new rules confirm that the home screen is indeed the home screenâthatâs where local TV services must be easily found, and viewers will not have to scroll, search or do anything else to find them,â said Ms Fair.
Free TV also welcomed other key minimum prominence requirements set out in the regulations, including that free-to-air apps must be of a similar shape and size to other apps which will ensure equity and access for all.
Prominence laws safeguard the public interest in the continued availability of free, ubiquitous local TV services that are available to all Australians, no matter where they live or how much they earn. Free TV is pleased to see this important step in making the new prominence scheme a reality.
Way too many loopholes.
What is to stop manufacturers not installing a RF tuner anymore?
Would that mean what was essentially a smart TV or âConnected TVâ is now termed a smart monitor by manufacturers? Thus meaning no need to pre-install FTA network Catch-Up Apps?
Free TV welcomes temporary suspension of commercial broadcasting tax
Free TV Australia welcomed todayâs announcement in MYEFO of a one-year suspension of the Commercial Broadcasting Tax from June 2025, estimated to cost the local commercial television industry $50.3 million.
âThe temporary suspension of the Commercial Broadcasting Tax is an important step towards supporting the long-term sustainability of Free TV broadcasters, and we are grateful for the Governmentâs recognition of the important role of local commercial television services to a healthy media sector,â said Bridget Fair, CEO of Free TV.
The tax, which is levied on transmitter licences associated with commercial broadcasting licences, was introduced in 2017 as part of regulatory reforms aimed at improving the financial health of Australiaâs free-to-air broadcasters. It was positioned as an âinterimâ measure for up to five years.
âThe Commercial Broadcasting Tax is really just a hangover from the old super-profits tax of the past. It is well and truly time for it to be permanently abolished. The tax disproportionately affects regional broadcasters who need more transmitters to broadcast to regional and remote areas. It undermines the ability of all broadcasters to compete fairly with digital platforms and global streamers, who do not face the same tax or regulatory obligations, yet compete with and sell advertising against commercial broadcasters,â Ms Fair said.
As the Government moves forward with its recently-announced review of broadcast spectrum bands, Free TV looks forward to working with Government to remove this tax burden on a permanent basis. It is out of step with comparable jurisdictions, and is no longer justifiable, given the changing competitive landscape and public policy benefits of a sustainable local television sector.
âIf the CBT is permanently removed, broadcasters could redirect these payments to creating the Australian content they are regulated to provide, and towards maintaining broadcast infrastructure, to ensure free TV remains available to all Australians.â
âFree TV has a strong future ahead, reaching over 20 million Australians each week,â said Ms Fair. "We urge the Government to recognise the vital role that free-to-air television plays in our media landscape and to permanently remove this tax.â
this I can appreciate. The cost of transmission must be extremely cumbersome for some of the regionals.
While I appreciate that the regionals could do with monetary relief, what exactly are the metros going to do with this âredirectedâ money? Certainly wonât go towards producing drama or childrenâs programs because networks donât see the point in those anymore.
It makes me wonder why there wasnât greater interest in the spectrum rationalisation that would have allowed for greater sharing of costs across the industry (and may have got the Government to help fund some of it).
I really donât like the idea that the TV networks should get a complete free kick on spectrum fees/taxes because their chosen business model is making it harder to operate. Other spectrum licence holders donât get these benefits and spectrum usage should be offered on a user-pays basis.
Then the federal government should make it conditional the money saved from not playing the CBT must go towards producing Australian drama and childrenâs programs.
I believe that the CBT exemptions should only be applied to additional Australian (or New Zealand) produced programs of genuine entertainment value and does not consist of any sort of advertorial or sponsorship within the program eg not obviously pushing a certain advertisers products (eg the NRL on Nine could not be considered because of the promotion of betting agencies on their telecast). They could list the types of programs covered - eg it could stipulate scripted comedy and drama, entertainment style programs showcasing talent and news and current affairs programs.
Also the programming must be first run additional Australian produced programming as described above could be allocated on a double points system and only be applied if the networks exceeds the requirements under the point system (a bit like an wage earning employee exceeding 38 hours a week being paid at a higher rate).
Yes the networks would jump up and down about a scheme like this BUT if the networks do not want to reduce or eliminate the CBT, the fees paid could be allocated to for first run Australian (or New Zealand) produced programming for ABC and SBS.
If we look back at the first few years of receiving multi-channels, we had a good variety of programs with 9GEM screening programs like Green Acres and The Dukes Of Hazzard, 9Go screening Married With Children and Get Smart, 7Two screening shows like Are You Being Served and Some Mothers Do Ave Em, 7Mate had McHales Navy and Magnum PI, Eleven had Mork and Mindy and Happy Days and One was the home of sport (for Ten). Yes this is a bit off topic on the argument of producing additional Australian content BUT it emphasises that the networks will only try so hard to attract an audience and do the minimum to bring people in (a bit like a supermarket with âopeningâ extraordinary specials - these wonât continue once they have attracted regular âclienteleâ.
It is true and it already happens. Admittedly just the way it is said is spin. The reduced expenditure will assist broadcasters to not fall into loss for a few more years.
A proposed draft code by Free TV, the lobby group for commercial free-to-air broadcasters, has sparked controversy, even drawing opposition from the alcohol industry itself. As reported by The Australianâs Sophie Liu, the changes would allow for an additional 800 hours of alcohol ads on prime-time television, extending M-rated programming by two hours on weekdays and up to five hours on weekends, public holidays, and school breaks.
Surprisingly, Alcohol Beverages Australia (ABA) and other industry bodies, including Cocktails and Spirits Australia and Brewers Association, have opposed the proposal. ABA executive director Alistair Coe highlighted the industryâs commitment to a globally recognized regulatory framework, expressing concern over the potential for expanded alcohol advertising.
A national poll by the Foundation for Alcohol Research & Education (FARE) found 90% of Australians are concerned about the increased exposure to alcohol ads, particularly during times when children may be watching. FARE CEO Caterina Giorgi called on the Australian Communications and Media Authority (ACMA) to reject the proposal, emphasizing its failure to meet community expectations.
Free TV? Free to assist with your addiction! This is a disgusting suggestion. Are they going to push for legalising and advertising other banned drugs too so the tv stations can make more revenue? As a recovering alcoholic of 38 years standing (I believe I know a bit about the dangers of alcohol). IMO alcohol causes as much, if not more than the so called heavy drugs.
Free TV welcomes suspension of Commercial Broadcasting Tax â now time to permanently abolish
Free TV Australia today welcomed the suspension of the Commercial Broadcasting Tax (CBT) for one-year from June 2025 which was first announced in the Governmentâs December 2024 Mid-Year Economic and Fiscal Outlook. This will take around $50 million out of the cost of supplying free, trusted television services to all Australians no matter where they live, or how much they earn.
âThis is an important first step to removing an outdated and unreasonable burden on commercial television broadcasters and we thank Minister Rowland for implementing this measure today. Free TV broadcasters already spend $1.67 billion a year on Australian content for the benefit of all Australians and are subject to a raft of additional regulatory requirements that do not apply to global digital giants we compete with,â said Bridget Fair, CEO of Free TV.
âThis tax is nothing more than a disguised super profits tax, a hangover from the percentage of revenue licence fee first imposed on broadcasters in 1964. It is now time to permanently remove the significant handbrake on the commercial television industry that the CBT has become. It is extremely important that Government recognises real and material regulatory costs, and the value of public goods that commercial television broadcasters provide, when considering industry tax settings.â
âThe CBT should be permanently removed as soon as possible, and Free TV looks forward to working with the Government and all political parties to make this happen.â
Background
The 4.5% percentage of gross revenue licence fee was converted to the CBT in 2017 as part of regulatory reforms aimed at improving the financial health of Australiaâs free-to-air broadcasters.
While it was positioned as an âinterimâ measure for up to five years, its continued existence has created an undue financial burden on the sector.
Although the CBT has from time to time been referred to as a spectrum tax, it has nothing to do with spectrum value and was arrived at simply as a proportion of the revenue tax it replaced.
The CBT is a disguised super profits tax being applied to a sector that is not earning super profits and is under increased advertising competition from digital platforms.
These digital platforms do not bear the same regulatory costs as commercial television broadcastersâespecially in relation to ensuring journalism is accurate, fair and impartial; and, complying with the onerous advertising restrictions that apply to broadcasters.
This is important because advertising is the only source of revenue licensed commercial broadcasters are permitted by law to access.
The tax materially affects profitability of local commercial broadcasters, which is relevant to industry sustainability.
