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Michelle Guthrie rejects Hugh Marks claim ABC is “a market failure.”

New managing director hits back at commercial TV for not investing in in-depth current affairs, documentaries, comedy & children's TV.

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Newly-installed ABC managing director Michelle Guthrie has rejected criticism of the broadcaster by Nine CEO Hugh Marks.

Earlier this week Marks told a Senate Estimates hearing that the ABC was a “market failure” and said it was 30 per cent more efficient, noting that ABC recently sent twice as many executives to Cannes.

After just 4 days in the role, Guthrie fronted the same hearing yesterday.

“I absolutely do not see the ABC as a market failure provider. I do not think that’s what Charter says in any way,” she said.

“The ABC Charter requires the corporation to provide its audience with content of both wide appeal and specialised interest and we definitely do.

“I’m very aware of Mr. Marks’ comments but I really don’t believe we operate as a market failure broadcaster. But if commercial TV networks don’t want to create in-depth current affairs or quality documentaries, comedy or children’s television or regional content, then yes we are a market failure broadcaster. Otherwise I think that’s absolutely within our Charter.”

Chief Operating Officer David Pendleton tackled a question by Nationals senator Bridget McKenzie on the costings of execs travelling to Cannes (the Senator incorrectly referred to it as the Cannes Film Festival, not MIPTV or MIPCOM).

Pendleton said in 2015 ABC spent $148,000 to send 10 personnel, including some in Business class.

He indicated the majority of them were from ABC Commercial to sell ABC content to foreign buyers and others were TV execs looking to purchase content. When he attempted to explain some execs added on extra legs to visit BBC, the Senator exclaimed, “Heading over to Cannes…. I might just spend a couple of weeks on the Riviera!”

Asked how many staff would attend this year (MIPTV was in April, MIPCOM is October), the new managing director admitted, “I can’t tell you.”

14 Responses

  1. i would be very careful what you wish for. like you in oz, here in the uk we have both public service tv and commercial networks. aunty is coming under attack from the government just like ABC is coming under attack. the bbc like abc offers a wider range of variety in all genre. don’t lose this unique service. in the uk a conservative government in the 90’s messed about with commercial tv and opened up the franchise for anybody who had a big wallet. itv and londonder’s lost the wonderful thames tv to charlton and this is what brought itv into decline and now is a shadow of itself. the tory government in the uk is now trying to do the same with the bbc. it’s quite simple, politicians keep your snout out of broadcasting, concentrate on the import things like the economy, the nhs, crime. this also applies to you over here. 🙂

  2. Simmyv – while you are throwing rocks from Ultimo it might pay to remind yourself of the Q&A disaster when they invited Zaky Mallah on Air… Mallah was acquitted of terrorism offences in 2005 but pleaded guilty to threatening to kill Asio officials. Oh yes we were ‘told that head will roll’ but nobody lost their job s because a job at the ABC is a job for life. And of course the program is no longer under the banner of Current Affairs ? Interesting to note that the biggest drama winners on the ABC are UK productions, no wonder they need to send so many people to MIP?

  3. Whilst the quality of ABC programmes have gone downhill I don’t think 9 can talk with the moronic programmes they telecast.Glad I switched to FOXTEL.

  4. The only thing you can agree with Hugh Marks on is the 10 people the ABC takes to the TV markets at Cannes. It is excessive and has been going on for years. ABC Commercial should be combined immediately with SBS International. It is ridiculous to have two small government broadcasters with separate international sale organisations. But he has a lot of gall to criticise the ABC for covering areas they won’t touch. The market has pretty much summed up Nine’s commercial future. Shares listed issue price was $2.05. First day closing price on 5 December 2013 was $1.98. Today’s price $1.22. As a new CEO at Nine it may be time to pull one’s head in.

    1. Agreed on SBS and ABC both running what i presume are loss generating international commercial divisions. Very expensive businesses to run, their catalogues are complementary and they’d likely be far more effective selling as one enterprise with a combined catalogue. Running two of everything is simply bonkers when you consider how expensive it is to host a stand at one of the two Cannes markets a year not to mention separate back of house services required like legal, accounts, marketing, delivery, sales teams etc.

      On the other hand I don’t agree with merging the Australian broadcast channels.

  5. Dear oh dear. Is there a term or phrase to describe someone calling incorrectly someone else the very thing that they are? How about “the pot calling the fridge black”?

    No, Mr Marks, it’s Nine which is the market failure. ABC’s market is not the same as the commercial networks’. They’re not perfect but they’re doing a lot better than Nine is right now. Remind me again how many people are still watching Nine after 8-8:30pm?

  6. “the majority of them were from ABC Commercial to sell ABC content to foreign buyers”. Wondering is Nine had anything to sell to foreign buyers.

      1. Nine outsource all their international distribution.

        ABC should clearly distinguish ABC Commercial from the balance sheet/reporting papers as BBC does with BBC Worldwide (as the commercial arms aren’t even bound to the public charter). Hugh is very aware ABC send around the same number of execs to search for content at Mip as the commercials do – the only difference being ABC is the only Aus broadcaster with a commercial arm (7 I believe is in the early stages of bringing that function in house).

  7. Yes Mr. Marks. That market failure gave you a hiding last night with Janet King to whatever slop you were serving up against it.
    Best not to make statements like this – they tend to hurt you later.

  8. Hugh marks has the nerve to comment on the ABC when channel nine is such a basket case after the sixty mins kidnapping scandal and failure spending over Million to get the sixty mins crew back home after most of nine’s shows bombing out in the ratings it’s taken nine til May and the voice to get a hit on air this man as the nerve to comment on the ABC . Fair dinkum ,the ABC is doing just fine marks its programmes a are very popular and rate well it does provide for the community it serves ,it has more Australian content than any commercial network and its content contributes to Australian society as opposed to the crap on nine which leaves a lot to be disered like all that reality crap.seriously Marks fix your own backyard before you comment on the ABC .you might have credibility then.

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