Broadcasting Legislation Amendment (Media Reform) Bill 2016 (CTH)
Friday 9 September 2016 @ 11.47 a.m. | Legal Research
The Coalition Government has re-introduced a slightly amended Broadcasting Legislation Amendment (Media Reform) Bill 2016 into Commonwealth Parliament on 1 September 2016. The Bill amends the Broadcasting Services Act 1992 with the intention of repealing outdated media ownership and control laws in order to better reflect the contemporary digital media environment. Ultimately, the Bill removes media ownership and control rules including the ’75 per cent audience reach rule’ as well as the 'two out of three cross-media control rule.’
Background to the Bill
The Australian media is currently facing increased competition from less regulated media providers such as online streaming and other internet media sites. In his second reading speech, Minister for Communications, Mitch Fifield, acknowledged the need for Australian laws to reflect and adapt current technological trends in media consumption. He says that current regulations ‘unfairly restrict’ Australian-based broadcast and publishing companies from ‘optimising the scale and scope’ of their operations. He asserts that the removal of these restrictions
“…will allow regulated media companies to achieve greater scale in their operations and, subject to the general law, to structure their businesses to make the most of opportunities as they emerge.”
The old Australian framework was based on a model of three established media platforms; namely commercial television, commercial radio and associated newspaper. However, the modern media landscape with Australians increasingly relying on other media forms for their news and entertainment has rendered irrelevant a lot of the old regulations and tests with relations to broadcasting legislation.
Key Components of the Amending Bill
Mr Fifield highlight the two key components of the Bill as seeking to “repeal two control and ownership rules that no longer make sense in the digital media environment: the '75 per cent audience reach rule' and the 'two out of three cross-media control rule’.” He goes on to decry the rules as antiquated and having little to support Australia’s current media diversity.
The 75 Percent Rule
The 75 per cent rule stops an individual from controlling commercial television licences whose combined licence area populations reach more than 75 per cent of Australians. As Mr Fifield explains “this rule effectively prevents any major commercial television network (Seven, Nine or Ten) from merging with or acquiring the regional television networks of Prime, WIN and Southern Cross, or vice versa.” With the current online media environment allowing Australians to have access to content all over Australia and the world, this reach rule is entirely irrelevant and only serves to unnecessarily prevent commercial television broadcasters from competing in this new environment.
The Two out of Three Rule
The two out of three rule prevents media organisations from controlling more than two of the three regulated forms of previously established media platforms. Mr Fifield says that this rule is also redundant as online media is no longer viewed as something distinct from the three traditionally established media platforms. Online media is at liberty to take on whatever form it sees fit and it is unfair that the three established platforms are still restricted by this rule.
The Bill also introduces new local programming obligations for regional commercial television broadcasting licensees where a change in control, known as a trigger event, results in a licence forming part of a group of commercial television broadcasting licences whose combined licence area populations exceed 75 per cent of the Australian population.
The Bill is currently awaiting second reading debate in the House of Representatives.
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Sources:
Broadcasting Legislation Amendment (Media Reform) Bill 2016, Bill, Second Reading Speech and Explanatory Memorandum as published on LawOne
