Alert

Authors
Peta Stevenson  
Senior Associate

Dana Stewart  
Solicitor

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Sharon Henrick  
Partner
T +61 2 9296 2294

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Sydney
Greg Golding  
Kristin Leece  
Katrina Rathie  
Luke Waterson  
Jason Watts  
 

Melbourne
Rowan Kennedy  
John Waters  

London
Rowan Russell  

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On 13 July 2006 Senator Helen Coonan, the Minister for Communications, Information Technology and the Arts, announced a new media framework for Australia. This follows four months of consultation with industry and other stakeholders since the announcement of the Government’s proposals for media reform in March this year.

Legislation is expected to be introduced in the final quarter of 2006.

Key elements

The new media framework reflects the Government’s preferred reform options as outlined in its March 2006 Discussion Paper, for further information, please refer to our Alert which reviewed the Paper. The Government’s stated aim in introducing these changes is to “create a competitive framework that will deliver consumer choice and a competitive industry in the digital media age.” One element of this is to “allow new entrants into the Australian media industry.”

The key elements of the media reform package include the following.

Ownership

• Removing foreign ownership restrictions, with media to remain a “sensitive-sector” under the Foreign Investment Policy. The Treasurer will have a veto right over any foreign investment in the media sector.
• Relaxing cross-media ownership rules, subject to at least five independent media groups remaining in metropolitan markets and four in regional markets. A mandatory pre-merger notification procedure (to be administered by the ACCC) will be introduced for mergers involving each of a commercial radio licence, a commercial television licence and an associated newspaper in the same licence area outside mainland State capitals.
• Retaining existing licence and reach limits, which prevent a person controlling more than one commercial television licence or two commercial radio licences in any licence area, or controlling a commercial television licence reaching an audience of more than 75% of the Australian population.

New digital services

• The development of a Digital Action Plan to drive digital take-up and achieve analogue switch-off by the new target date of 2010-2012.
• The allocation of the two unassigned digital channels for new digital services such as mobile television or in-home services.
• A commitment that the Government will not allocate new commercial television licences within the broadcasting services band spectrum before analogue switch-off.

Content

• The establishment of a “use it or lose it” regime for events on the anti-siphoning list, effective from 1 January 2007.
• A prohibition on free-to-air (FTA) broadcasters televising an event that is on the anti-siphoning list on any new digital channel other than their main standard definition television (SDTV) channel unless it has already been shown (or is simultaneously shown) on the main SDTV channel.
• Removing the simulcast requirement for high definition television (HDTV) services from 1 January 2007, thus allowing one HDTV multichannel in advance of analogue switch-off.
• Relaxing the multichannelling rules by allowing commercial FTA television broadcasters one SDTV multichannel from 1 January 2009, and removing the genre restrictions on multichannelling by national broadcasters (ABC and SBS) as soon as possible.
• Protections for regional content and diversity on both television and radio.

Enforcement

• The ACCC retains its role enforcing the general merger provisions of the Trade Practices Act 1974 (Cth).
• A range of new enforcement powers will be given to ACMA.

Next steps

Further consultation and planning will occur to formulate the details of these reforms, with particular attention to the development of the Digital Action Plan, and the allocation or auction of the two unallocated channels for new digital services. Legislation is expected to be introduced in the final quarter of this year.

Further updates

We will continue to monitor developments in this area. Please contact us if you have any queries about the new framework for media laws or media issues more generally.