Govt approves local content rule on multichannels
Multichannels must meet new local quotas from next year, but networks get better news on license fees.
- Published by David Knox
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The Federal Government has announced a raft of changes in seeking to please networks, the production sector and audiences, and addressing technological change.
The government will extend license rebates for commercial networks by 12 months ahead of slashing fees to 50% permanently. It will also block any moves for a fourth commercial broadcaster by ensuring no spectrum or broadcast licences will be made available.
Multichannels will be required to screen minimum quotas of Australian content starting with 730 hours in 2013, increasing to 1460 hours by 2015. Local quotas on primary channels remain, but there will be flexibility in how they are used.
Seven CEO Tim Worner said Seven was committed to Australian programming.
“We are pleased that this decision will help us to continue to tell great Australian stories,” he said.
“We are happy to get the chance to do more of it on our digital channels than we have ever done before.”
TEN CEO James Warburton said the changes represented a good outcome for the local production and free-to-air television industries.
“We are pleased with the measures announced this afternoon, which are sensible, represent a good outcome for the local production and free-to-air television industries, and give the free-to-air television networks regulatory certainty,” he said.
“Although the free-to-air television industry has agreed to a heavier regulatory burden, the changes announced by Senator Conroy will help ensure quality local content continues to prosper on Australian television.”
Free TV CEO Julie Flynn said: “Today’s announcements are a welcome first step towards ensuring that all viewers can continue to see quality Australian programming for free in a rapidly changing market.
“In addition to our record expenditure on Australian content, we are also delivering a highly successful transition to digital following a multi-billion dollar investment in the digital free-to-air platform.”
The Government is also still considering the recommendations of the Convergence Review.
Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy, today announced a package of measures to ensure quality Australian content continues to be seen on Australian television.
“Free-to-air television plays an important part in our lives, and seeing Australian stories told on TV is vital in reflecting and maintaining our Australian identity, character and diversity,” Senator Conroy said.
“To make sure that we keep being able to watch Australian content, we are taking a number of steps to enable commercial television broadcasters to continue to invest in and broadcast Australian content.
The Government will:
Immediately extend, via regulation, the current rebate on television broadcasting licence fees by a further 12 months, ahead of moving to reduce television broadcasting licence fees permanently by 50 per cent, to a maximum of 4.5 per cent of revenue. The rebates will have effect for the 2012-13 financial year.
Introduce a multichannel Australian content requirement for each commercial television broadcaster of 730 hours in 2013, increasing to 1095 hours in 2014 and to 1460 hours in 2015. This includes an incentive for first-release drama by allowing an hour of first release drama premiered on a digital multichannel to count for two hours under the transmission hours requirement for multichannels.
Retain the current 55 per cent transmission quota for the commercial television broadcasters’ primary channels, but introduce greater flexibility into the current arrangements for sub-quotas.
“These measures are part of the Government’s initial response to the Convergence Review. The Government’s consideration of the review is continuing, and further announcements will be made next year.
“The Government will develop legislation to implement the reforms announced today by March 2013, with appropriate transitional arrangements for the new Australian content measures. These content requirements will apply from 1 January 2013.
“The Government will also start consultations early in 2013 on how captioning levels will be increased on multichannels following digital switchover. These measures address content and captioning levels on digital multichannels that were to be separately reviewed.
In 2011-12 the commercial television industry invested a record $1.35 billion in Australian programming: drama, sport, news and current affairs and light entertainment. In the same period, revenues have remained weak and costs have increased.
“Commercial free-to-air television is under pressure from the structural change taking place in the media due to the convergence of content delivery platforms and changing consumer habits. Without adjustments to the current rules, the industry could be forced to drop quality Australian content as cost-cutting bites into programming.
“Updating the rules on commercial free-to-air television broadcasters gives them certainty, and allows them the flexibility and capacity to innovate and thrive.
The Government has also decided that no spectrum or broadcast licences will be made available to enable a fourth free-to-air television network. This follows the Minister’s review of future uses of the so-called ‘sixth channel’ of television spectrum.
“Online technologies like IPTV are giving people new ways to access content. The low barriers to entry for these online content services and the scope for future innovation mean that in the long term, these online platforms are likely to be a real alternative to traditional terrestrial television. The rollout of the NBN will further facilitate this.
“Potential uses of the sixth channel will be considered in the longer term, in the light of the Australian Communication and Media Authority’s assessment of future broadcasting technologies.
“In the meantime, the Government will allow community television to use spectrum intended for the sixth channel until at least 31 December 2014. The Government remains committed to ensuring community television has a permanent spectrum allocation for digital broadcasting.”
The Government will also remove the out-dated restriction on a person controlling a network of commercial television stations that has an audience reach of greater than 75 per cent of the Australian population—the “75 per cent reach rule”. This will be subject to adherence with existing local content obligations in regional areas and written undertakings in respect of those obligations. This restriction will be removed subject to the approval of Parliament.
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19 Responses
The networks will now have to find 4 hours of local content a day for their multichannels in 2015. It will have to be profitable for a multichannels with audiences of 100-300k, in other words incredibly cheap.
And it can be good or it would strip audience from local content on the main channels, which the networks can’t afford as their audiences are already massively down.
The networks will already be trying to buy up the entire TV output of NZ. If this system produces a single minute of TV I want to watch it would be a miracle.
In a digital age you can’t dictate to viewers what they will watch. With the Government putting $50b in to the NBN and wireless technology rapidly spectrum restrictions are going to be irrelevant.
Is “Couch Time” counted ? Well it is ok when they actually have real guests but when unreal guests well, what a waste of time.
It would be better if all multi channels had a host instead of recorded or in most cases computer switches with no explanation, at least “Couchtime” offers some explanation sometimes as to why shows are running late or whatever. I thought Tom….someone was to be the face of 7TWO. Is that the bookmaker now ?
I did see Hollyoaks as coming soon to UKTV. Yes the multi channels in the UK have drivel like Don’t tell the Bride and Snog Marry Avoid. Also lots of rubbish with Katie Price etc… They all seem to be here already but will probably have more Australian versions. Lots of cheap partly scripted fly on the wall stuff like The Only way is Essex and Big Brothers Little Brother. Add a few hours of pop videos and your done.
Does this mean there will be no new channels on freeview? Once the switch off had happened I thought there may have been competition open to the likes of Foxtel. Sky had a couple of free to air channels in the UK such as Sky News and Pick TV. There are specific channels such as (Yesterday) History and The Food Network. Any chance of that here?
In principle a good idea and I thinl legislation is required to keep the Aussie TV industry strong (we could do with something similar here in the UK for drama especially as we don’t produce anywhere near amount we should!)
However I do think the rates are high – with just a months notice they’re expecting the equivalent of 2 hours per day next year for the multichannels (I’m assuming this is split between multichannels, not pure multichannel), rising to 4 hours in a couple of years. (Is this all original content, or do repeats count?)
It would be better to focus on quality rather than quantity – for example here in the UK E4 has launched hit shows such as Misfits, Skins and The Inbetweeners, but in most cases bar nightly soap Hollyoaks they were the only original UK shows in the schedules that week.
Similarly with the US cable networks HBO, Showtime and Starz etc. all have a great reputation for great drama – but still essentially built their schedules around one flagship show airing per week.
I’d therefore set the bar lower initially at least – say 52 hours a year per multichannel, increasing over the next few years till it gets to 365 hours per year.
Misfits, Skins and Hollyoaks? Let me make a prediction now. The new Aussie content we will be getting: branded entertainment, music clip shows, late night interactive shows, obscure sports coverage, fashion, and a flood of factual and drama from New Zealand.
“Introduce a multichannel Australian content requirement for each commercial television broadcaster of 730 hours in 2013, increasing to 1095 hours in 2014 and to 1460 hours in 2015”
I read ‘each commercial television broadcaster’ to be ABC, Seven, Nine, Ten and SBS – not each multichannel.
So in 2013 Seven must have 730 hours – but this could be split 500 hours on 7mate and 230 hours on 7TWO.
Either way, by 2015 – each broadcaster will be required to have 1460 hours each year on their multi channels. That averages about 28 hours a week or 4 hours a day. Or over 2 multi channels (say Go and Gem) that is 2 hours of new Aussie content on each channel every day needed.
This is great for Australia. By 2015 Go, Gem, One, Eleven, 7mate, 7TWO, SBS2 will all need 2 hours of new Aussie shows every day to meet the rules. 2 hours out of 24 means 22 hours will still be foreign shows for those complaining.
The current local content requirements are bad enough, but this is even worse. The is just more forced subsiding of the local industry.
So we will get even less decent content from overseas, and more local garbage (reality TV), and poor attempts at local drama series.
Let me get this straight. Does this mean the networks will start commissioning new local content for their multi’s?
Commercial networks yes, but a cheap lifestyle show is local content. Don’t get excited yet.
While I’m in general agreement with the above package, it won’t necessarily lead to more quality Australian content, just more content. If the money/talent/desire isn’t there to make more good stuff then we’ll just get more Tricky Business and The Shire.
And ‘Couch Time’ must be the most inane puerile drivel ever foisted upon us … perhaps only bested by the ‘Couch Time Stuff Ups’
Does cheap imported crap from NZ continue to qualify as ‘local content’? If so, I can see a swathe of NZ reality garbage clogging our airways.
Finally!
Most of the time the only Australian you hear/see on these multi’s is the voiceover during the ads!
@Josh – local content means jobs and will actually end up meaning more viewers for paytv as it will be unique content for the first run.
So “first release” means the digi productions will be unique to the digis and they won’t be able to count 2nd run on digi as local content?
Im sure that must be the case….
@Bogues – i’d say the public broadcasters are exempt as per usual………
I personally don’t watch local content unless its reality or sport so this increase in the quota means that there will only be a decrease in international content. I think that the most important thing for the government to be focusing on is forcing closed captioning to be offered on multichannels at least during prime time. The fact that multichannels only have to offer close captions if the program has already aired on the primary channel is just plain rediculous.
Given that in 13 months time everyone will be on digital, why the are government treating the current analogue channels different after that date?
Sucks for SBS2, which doesn’t screen much (any?) local quota during prime time.
Now watch Eleven recode Couch Time as the full two-and-a-half hours instead of just the bridging segments.