Media Ownership Laws

1. Media Ownership Laws

2. Origin of regulatory powers • Section 51 of the Australian Constitution states: “The Parliament shall, subject to this Constitution, have power to make laws for the peace, order, and good government of the Commonwealth with respect to:           (i)  trade and commerce with other countries, and among the States; (v)  postal, telegraphic, telephonic, andother like services.”

3. Historical overview • Broadcasting Act 1942 • Trade Practices Act 1974 • Foreign Acquisitions and Takeovers Act 1975 • Broadcasting (Ownership and Control) Act 1987 • Broadcasting (Ownership and Control) Act 1988 • Broadcasting Services Act 1992 (BSA) • Broadcasting Services Amendment Act 2006 1920s - Australia’s first specific broadcast media regulations were introduced. 1930s – media ownership rules were introduced in relation to radio broadcasting. 1950s – with the introduction of the TV, radio legislation was extended to TV licences.

4. Early Legislation & Impacts • In 1923, there were 26 metropolitan daily newspapers owned by 21 proprietors. • By 1950, this number had fallen to 15 metropolitan dailies having 10 owners. • By 1986, there were only 3 major proprietors of the metropolitan dailies: Herald Weekly Times Limited, News Limited, John Fairfax Group Pty Ltd. • In 1987, News Limited took over Herald and Weekly Times Limited thus, resulting in only 2 major owners.

5. Australian Government principles

6. Australian Government principles • According to the Department of Communications Forward Development Unit (1986), the key principles of the Australian Government are: • To avoid undue concentration; • To promote local ownership and favour ‘independent’ licence applicants; • To limit foreign ownership and prohibit foreign control; and, • To encourage diverse shareholding in licensee companies.

7. Current legislation • Trade Practices Act 1974 • Prevents anti-competitive conduct. • Foreign Acquisitions and Takeovers Act 1975 • Regulates foreign takeovers of Australian businesses. • Broadcasting Services Act 1992 (BSA) • Regulates ownership of commercial TV and radio broadcasters.

8. Current legislation Objects of 1992 BSA:             “(a)  to promote the availability ... of a diverse range of radio and television services...; and...               (c)  to encourage diversity in control of the more influential broadcasting services...” Source: ComLaw (no date)

9. Emergence of New Media • During the 1990s ‘new media’ began to emerge (e.g. the internet and pay TV). • This emergence was seen by some as illustrating the inadequacies with current legislation. Senator Helen Coonan: laws are “outdated” and “ineffective”.

10. Howard-Government • 1996– Liberal/National Government elected. Government undertakes review of laws. No changes are made. • 1999 – government directs Productivity Commission to conduct an inquiry. • 2002 – government introduces legislation. • 2003 – legislation passed in lower house, but not approved by upper house. • 2004 – federal election. • 2006– legislation successfully passed.

11. Broadcasting Services Amendment (Media Ownership) Act 2006 • Assented on 4 November 2006. • Came into effect on 4 April 2007. • Amends Broadcasting Services Act 1992(BSA). • Aims to “modernise” Australian ownership laws.

12. Contrast of old and new BSA rules

13. Major Media Companies

14. Major Media Companies • News Ltd • Chairman: Rupert Murdoch. • Owns 25% of Foxtel and approx. 70% of major newspapers in Australia. • Publishing and Broadcasting Ltd (PBL) • Chairman: James Packer. • Owns Nine Network and Australia’s largest magazine publisher. • Owns 25% of Foxtel.

15. Major Media Companies • Fairfax Media • Chairman: David Kirk. • Australian publishing group with no dominant shareholder. • Owns 20% of major Australian newspapers. • Seven Network Limited • Chairman/ largest shareholder: Kerry Stokes. • Owns the Seven Network and Australia’s second largest magazine publisher.

16. Mergers triggered by change • Television: Seven and Nine both sold 50% of their media assets to private US equity firms. • Newspapers: • Seven bought 22% of West Australian Newspapers. • News Corp. acquired magazine and newspaper interests of the Federal Publishing Company. • Fairfax Media merged with the Rural Press Group. • Radio: 3-way merger between Fairfax Media, Macquarie Media, and Southern Cross Broadcasting Source: The Australian Press council (2008)

17. Increase in concentration of media-ownership

18. Issues with high concentration in media-ownership • Potential abuse of power. • Repressive journalistic culture: • Quality of news reporting; • Editorial independence. • Loss of diversity of expression.

19. Potential abuse of power • “Australia has the most concentrated pattern of media ownership in any western country.”– David Denemark (2005) in The Price of Freedom

20. Potential abuse of power • “With our newspapers we have indeed supported Bush’s foreign policy. And we remain committed that way” -Rupert Murdoch, 2004.

21. Potential abuse of power • Do media owners have too much influence in determining the political agenda? • Yes - journalists: 71.4% • Yes - General public: 61% Source: Roy Morgan Research in Warren (2007)

22. Potential abuse of power • Media moguls have agenda-setting powers. • 20-30% of Australian electorate are swinging voters (Dunscombe, 2004).

23. Potential abuse of power • Media moguls have undue influence over politicians. • 1981 ‘Murdoch Amendments’: • Australian TV station owners had to live in Australia. • Fraser-Government dropped these residency requirements. • As a direct consequence of this change, Murdoch was able to retain ownership of his Australian TV station.

24. Repressive journalistic culture Fewer alternate job opportunities Fear for job Self-censorship.

25. Repressive journalistic culture • Do you feel obliged to take into account the commercial interests of your employer? • Yes - 48.4%* * 37.7% of respondents told to “toe the commercial line”. Source: Roy Morgan Research in Warren (2007)

26. Repressive journalistic culture • Editorial independence and the findings of the PC and ABA. • Do you believe that the new changes will negatively affect reporting integrity. • Yes - 82.6% Source: Roy Morgan Research in Warren (2007)

27. Loss of diversity of expression • “The media is not just another business. The commodity it deals in is information, a keystone of democracy.” – Colin Stewart (1990)

28. Loss of diversity of expression • A diverse range of views is necessary for a healthy well-functioning democracy. • The government’s regulation of media-ownership ensures a necessary degree of diversity.

29. Loss of diversity of expression • Arguments for liberalisation: • Unnecessary - new media increases diversity; • Ineffective – convergence of old and new media.

30. Loss of diversity of expression Source: Australian Bureau of Statistics in Dunscombe (2004)

31. Loss of diversity of expression • Foxtel dominates pay TV and is owned by News Ltd, Telstra and PBL. • News duplication and redistribution.

32. Loss of diversity of expression • Diversity is a nebulous concept. • Need new diversity tests. • Ownership as proxy for diversity?

33. Conclusion

34. Thanks! Questions?