Netflix has been investing in local content in South Korea and Japan for the past couple of years. Shouldn’t it do the same for Australia?
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and i think they would finally be a good thing 
it would then shake up fta
More like destroy it, it would just about be the new radio.
Netflix already invest in Australian content - it’s also distributed Australian content to other markets.
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Agree - that’s why I think the proposal laid out by the streaming services is a sensible one:
The approach the four companies (Disney+, Netflix, Prime Video & Stan) would like would be to provide government with detailed local investment plans over multiple years and allow for feedback to individual services if expectations for delivering Australia content are not being met.
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At least Nikki’s got a future given she’s on two channels at once…
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Television licensing, ownership and control
Licensing
The number of commercial, subscription and long term-community television licences in operation was unchanged during 2019–20 (Table 12).
Number of broadcasting licences allocated in Australia
| 2017 –18 | 2018 –19 | 2019 –20 | |
|---|---|---|---|
| Commercial television | 69 | 69 | 69 |
| Subscription television | 2,835 | 2,835 | 2,835 |
| Long-term community television | 5 | 5 | 5 |
| Trial community television (up to 12-months duration) | 2 | 2 | 2 |
Source: Broadcasting licences | ACMA.
Ownership and control
The media control and diversity rules (set out in relevant legislation such as the Broadcasting Services Act 1992 ) seek to limit the concentration of broadcasting ownership and control within licence areas.
The Seven, Nine and Ten networks operate commercial television broadcasting licences predominantly in metropolitan markets. Their programming is also made available in regional markets through affiliation agreements with the regional television licences controlled by Prime Media Group Limited, Southern Cross Media Group Limited (Southern Cross), WIN Corporation Pty Ltd (WIN) and Imparja Television Pty Ltd.70 Appendix A summarises ownership and control of these services in Australia.
There were no trigger events in 2019–20. The following regional, aggregated, commercial television broadcasting licensees in Queensland, New South Wales, Victoria and Tasmania must continue to broadcast minimum amounts of material of local significance (local content) as defined by the Broadcasting Services Local Programming Determination 2018 (Determination):
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Seven Qld, Southern Cross and WIN TV in regional Queensland
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NBN Ltd, Prime Television and WIN TV in northern New South Wales
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Prime Television, Southern Cross and WIN TV in southern New South Wales
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Prime Television, Southern Cross and WIN TV in regional Victoria
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Southern Cross, WIN TV and Southern Cross/WIN joint venture in Tasmania.
Television viewing
The 2019–20 year highlighted a growing preference to watch video content on demand rather than in linear form. The uptake of online subscription services (SVOD) and BVOD continued to accelerate, while the viewership of live FTA television declined (Figure 6). According to Roy Morgan, the number of Australians with subscription television in their household increased by 6% from February to March 2020.
Television or video watched last 7 days, Australian adults (%)
Base: Australian adults aged 18 and over.
Note: Other content online and watched or played games was not asked prior to 2018.
Source: ACMA annual consumer survey 2017–20.
In line with these viewing trends, three-quarters of Australians now live in households with at least one SVOD service, with approximately half of all households having access to 2 or more subscription services (49%) (Figure 7).
Australians living in a household with SVOD services (%)
Source: ACMA annual consumer survey 2017–20.
SVOD market share
As the number of SVOD services in Australia increased, the market share of the earlier entrants declined. Netflix remains the predominant service in the Australian SVOD market (Figure 8).
Market share, SVOD market in Australia (%)
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Source: GlobalData Subscription Video On Demand forecasts (reported by calendar year).
Financial performance
Nine Entertainment (formed by the merger between Fairfax Media and Nine Entertainment Co in 2018) was the only major broadcaster to see an increase in revenue for period ended 30 June 2020, growing by 11.3% to $2.18 billion (Table 14).
Television and radio broadcasters’ financial results ($ million)
| Broadcaster | 2016 | 2017 | 2018 | 2019 | 2020 | 2019–20 change (%) |
|---|---|---|---|---|---|---|
| HT&E Limited | 299 | 260 | 272 | 253 | 215 | –15 |
| Nine Entertainment Co. Holdings Limited | 1,286 | 1,245 | 1,404 | 1,965 | 2,187 | 11.3 |
| Prime Media Group Limited | 237 | 238 | 201 | 192 | 160 | –16.7 |
| Seven West Media Limited | 1,721 | 1,674 | 1,621 | 1,425 | 1,227 | –13.9 |
| Southern Cross Media Group Limited | 640 | 687 | 657 | 660 | 540 | –18.2 |
| Ten Network Holdings Limited | 689 | 660 | 661 | 602 |
Note: Ten Network was acquired by ViacomCBS Inc in 2017. 2020 results for Ten Network not available at the time of publication.
Source: S&P Market Intelligence platform, an offering of S&P Global Market Intelligence; data adjusted to 30 June 2020 where financial year-end dates differ.
Market developments
There were a number of developments in the market over 2019–20, with many associated with the COVID-19 pandemic:
There was a decline of 6.2% in advertising spending during 2019–20 (Table 15).
The suspension and cancellation of sporting events reduced advertising revenue, but it also meant costs in producing and acquiring sporting content will be delayed or avoided for the year. For example, the Olympics were not aired in 2020, affecting both Seven West Media (SWM) and the Prime Media Group (Prime); with SWM reporting if the Olympics are cancelled, they will see a refund of $50 million.
Lockdown measures across Australia resulted in a hiatus of live sport broadcasting and some productions (particularly drama), and the loss or reduction of live audiences for some shows.
Regional commercial radio stations were challenged with the availability of and ability to source local news content.
For FTA TV, the growth in consumption of FTA content via broadcast video on demand (BVOD) offered an opportunity to increase revenues. BVOD platforms with user sign-on provide broadcasters with greater insights for advertisers and allows their advertising inventory to become a data-driven asset in a market that is spending a greater proportion of advertising budgets on digital channels. Digital advertising revenue saw the largest growth during the reporting period and continued increasing its share of total advertising revenue, from nearly 49% in 2016 to 68% in 2020. See Figure 10 and Table 15 for advertising revenue in share by segment (%) and dollars.
For commercial radio, new technology is providing opportunities to expand listenership. For example, in October 2019 Commercial Radio Australia (CRA) announced a partnership with Google to make more than 300 Australian AM, FM and DAB+ digital radio stations easily accessible on Google Nest devices.
Further developments such as the development of measurement platforms, which provide more demographic data (see Measurement – TV and radio , below), are one way in which traditional broadcasters can innovate in a changing market.
Seven West Media, FY20 full year results [PDF 14.5MB], Seven West Media website, 25 August 2020, accessed 16 April 2021, p 20.
Commercial Radio Australia, Australia radio partners with Google [media release], CRA website, 18 October 2019, accessed 16 April 2021.
PricewaterhouseCoopers, Outlook: The Australian Entertainment & Media Outlook. The COVID-19 Edition [PDF 10.45MB] , PwC website, n.d., accessed 12 February 2021.
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From 7 West
Seven welcomes media reform green paper
The Seven Network today welcomed the Morrison Government’s Media Reform Green Paper: Modernising Television Regulation In Australia as an important step forward in creating a new regulatory framework for the free-to-air television industry.
In its submission in response to the Green Paper, Seven says the document has started an important conversation about the future of the industry and has provided a platform for constructive industry and government engagement to ensure a vibrant and exciting future for Australian free-to-air television.
Seven West Media Managing Director and Chief Executive Officer, James Warburton, said: “Seven’s future is built on a multi-screen and multi carriage strategy, and the Green Paper starts the discussion about the future regulatory environment we and the industry need.
“The Green Paper proposes a new broadcast licensing scheme under which broadcasters could surrender spectrum in exchange for spectrum tax relief. The current proposal is like asking telecommunications companies to stop their technology innovation at 5G with no ability to upgrade to 6G and beyond. We think there is a better path.
“We support the Free TV Australia submission that outlines why the new broadcast licensing scheme needs to be discussed and reviewed, and we are happy to support the process of looking at achieving a dividend without surrendering services,” he said.
“Conversations focused just on live linear TV don’t reflect the TV business of today. This review of the regulatory model for free-to-air TV is an important opportunity to shape the future of Australian television businesses by reflecting how modern Australia consumes content.”
“Delivering our content via spectrum will remain at the heart of our business model for the foreseeable future, but supplementary to this is the digital and IP growth engine. It isn’t an either/or proposition. Increasingly, the content of the free-to-air networks will be distributed through different technologies and found on various screen types and sizes. The regulatory environment needs to reflect this so that our content remains freely accessible to all Australians,” Mr Warburton said.
The Seven submission argues that the immediate regulatory priorities to address the challenges presented by the growth of online content viewing are:
• Regulated prominence: Commercial free-to-air TV delivers trusted and verified news, Australian stories and sport. This content is important for our national identity. However, as television screens become more cluttered with digital menus, preloaded apps and the new advertising business models of original equipment manufacturers, free-to-air services are becoming less visible and less accessible. As the regulatory framework evolves, it is important that commercial free-to-air services are easily accessible and prominent at no cost.
• Legislatively embedding net neutrality: Online TV is part of how Australians want to consume their content. NBN and telecommunications retail service providers should be prohibited from discriminating between different online businesses which can pay for higher quality of service or priority carriage.
• Addressing the anti-siphoning framework: The importance of universal access to free sport cannot be understated. Sport is an essential part of Australian culture. It is crucial that the regulatory framework is extended to online video platforms to ensure all Australians continue to have access to free sports and they are not locked behind a paywall. Further, Seven submits the list should accommodate a multi-screen environment. Listed sports that are broadcast on linear TV should also be made available for free through a broadcaster’s online services without the need for separate licensing.
• An immediate review of the spectrum tax: Commercial free-to-air should not be paying more than the Government’s administrative costs.
From Free TV
Free TV urges reform path for vital broadcasting services in response to Green Paper
In a detailed response to the Government’s Media Reform Green paper, Free TV Australia has today set out a roadmap for the future of commercial free-to-air television.
Free TV Chairman, Greg Hywood, said: “The Free TV industry has proposed a technology and regulatory pathway that recognises the central role that broadcast terrestrial free-to-air services currently play in the lives of Australians and the importance of ensuring they continue to be accessible to Australian communities.
“Free-to-air television delivers critical services that no other platform does – free, ubiquitous locally relevant viewing to all Australian homes.
“The upheaval in the media sector has only elevated the need for the strong and sustainable local services that people can go to for trusted news and public service information, to tune in to homegrown Australian stories and to watch iconic sporting events as a nation – no matter where they live or how much they earn. We need new rules for this new landscape but they need to be the right rules to ensure balance, quality, and accessibility for all Australians.”
The Free TV submission outlines why reforms are critical to ensure the future quality of the TV technology platform, and a sustainable and competitive industry that can continue to deliver the social and cultural objectives of the Government.
Free TV believes the key reforms required include:
• prominence requirements so that Australians can easily find and use free-to-air broadcast channels and on-demand services in a connected environment;
• embedding the principles of net neutrality in the regulatory framework;
• the extension of anti-siphoning regulations to online platforms to ensure Australians are not forced to pay for the iconic sporting events they currently watch for free;
• fulfilling the Government’s commitment to review the amount commercial networks pay for spectrum as the current tax is well in excess of international levels; and
• addressing the financial pressures affecting the sustainability of free-to-air television broadcasting in regional and remote areas.While Free TV does not believe the initial proposals included in the Green Paper regarding long-term TV technology platforms are workable, it welcomes the Government’s openness to other suggestions.
Free TV Chief Executive Officer, Bridget Fair, said: “Any proposal for regulatory or technology change should be measured by whether it will secure a strong future for commercial television over the next decade and beyond.
“Now is the time to start the conversation and lay the groundwork so that the right decisions to ensure a sustainable future of the Free TV industry can be made. It is critical that all Australians continue to have access to free and universally available television services into the future. We look forward to working with the Government to lock in the future of broadcast television for all Australians to enjoy”.
Fuck off. Pay more or get off the spectrum.
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Yes, that’s incredibly entitled of them to expect to use publicly owned spectrum for free.
Seven and Free TV’s over emphasis on the culture of sport, Australian stories (reality shows?) and “trusted and verified news” with supposed local prominence is just laughable.
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Yeah, like that one about Martin Bryant.