Media Ownership Laws
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Media Ownership Laws
description
Media Ownership Laws. 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: - PowerPoint PPT Presentation
Transcript of Media Ownership Laws
Media Ownership Laws
Origin of regulatory powerso 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, and other like services.”
Historical overviewo Broadcasting Act 1942o Trade Practices Act 1974o Foreign Acquisitions and Takeovers Act 1975o Broadcasting (Ownership and Control) Act 1987o Broadcasting (Ownership and Control) Act 1988o Broadcasting Services Act 1992 (BSA)o 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.
Early Legislation & Impactso In 1923, there were 26 metropolitan daily newspapers
owned by 21 proprietors.
o By 1950, this number had fallen to 15 metropolitan dailies
having 10 owners.
o By 1986, there were only 3 major proprietors of the metropolitan dailies: Herald Weekly Times Limited, News Limited, John Fairfax Group Pty Ltd.
o In 1987, News Limited took over Herald and Weekly Times
Limited thus, resulting in only 2 major owners.
Australian Government
principles
Australian Government principles
o 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.
Current legislation
oTrade Practices Act 1974Prevents anti-competitive conduct.
oForeign Acquisitions and Takeovers Act 1975
Regulates foreign takeovers of Australian businesses.
oBroadcasting Services Act 1992 (BSA)
Regulates ownership of commercial TV and radio broadcasters.
Current legislationObjects 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)
Emergence of New Media
o During the 1990s ‘new media’ began to emerge (e.g. the internet and pay TV).
o This emergence was seen by some as illustrating the inadequacies with current legislation.
Senator Helen Coonan: laws are “outdated” and “ineffective”.
Howard-Government
o 1996 – Liberal/National Government elected. Government undertakes review of laws. No changes are made.
o 1999 – government directs Productivity Commission to conduct an inquiry.
o 2002 – government introduces legislation.
o 2003 – legislation passed in lower house, but not approved by upper house.
o 2004 – federal election.
o 2006 – legislation successfully passed.
Broadcasting Services Amendment (Media Ownership) Act 2006
o Assented on 4 November 2006.o Came into effect on 4 April 2007.o Amends Broadcasting Services Act 1992 (BSA).o Aims to “modernise” Australian ownership
laws.
Contrast of old and new BSA rules
•‘1/3’ platform test.
•Foreign persons can not control neither commercial nor subscription TV.
Statutory control rules
(1992)
•‘2/3’ platform test.
•Foreign ownership and control permitted.
•Introduction of ‘5/4’ voices test.
Statutory control rules
(2006)
Major Media Companies
Major Media CompaniesoNews LtdChairman: Rupert Murdoch.Owns 25% of Foxtel and approx. 70% of major
newspapers in Australia.
oPublishing and Broadcasting Ltd (PBL)
Chairman: James Packer.Owns Nine Network and Australia’s largest
magazine publisher.Owns 25% of Foxtel.
Major Media CompaniesoFairfax MediaChairman: David Kirk.Australian publishing group with no dominant
shareholder.Owns 20% of major Australian newspapers.oSeven Network LimitedChairman/ largest shareholder: Kerry Stokes.Owns the Seven Network and Australia’s second
largest magazine publisher.
Mergers triggered by change
o Television: Seven and Nine both sold 50% of their media assets to private US equity firms.
o 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.o Radio: 3-way merger between Fairfax Media,
Macquarie Media, and Southern Cross Broadcasting
Source: The Australian Press council (2008)
Increase in concentration of media-ownership
News Limited70%
Fairfax Media20%
Other10%
Major newspaper ownership in Australia
Issues with high concentration in media-ownership
o Potential abuse of power.o Repressive journalistic culture:
Quality of news reporting;Editorial independence.
o Loss of diversity of expression.
Potential abuse of power
o“Australia has the most concentrated pattern of media ownership in any western country.” – David Denemark (2005) in The Price of Freedom
Potential abuse of power
o“With our newspapers we have indeed supported Bush’s foreign policy. And we remain committed that way” - Rupert Murdoch, 2004.
Potential abuse of power
o 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)
Potential abuse of power
oMedia moguls have agenda-setting powers.
o20-30% of Australian electorate are swinging voters (Dunscombe, 2004).
Potential abuse of poweroMedia moguls have undue influence
over politicians.o1981 ‘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.
Repressive journalistic culture
Fewer alternate job opportunities
Fear for job
Self-censorship.
Repressive journalistic culture
o 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)
Repressive journalistic culture
o Editorial independence and the findings of the PC and ABA.
o Do you believe that the new changes will negatively affect reporting integrity.
Yes - 82.6%
Source: Roy Morgan Research in Warren (2007)
Loss of diversity of expression
o“The media is not just another business. The commodity it deals in is information, a keystone of democracy.” – Colin Stewart (1990)
Loss of diversity of expression
o A diverse range of views is necessary for a healthy well-functioning democracy.
o The government’s regulation of media-ownership ensures a necessary degree of diversity.
Loss of diversity of expression
o Arguments for liberalisation:Unnecessary - new media increases diversity;Ineffective – convergence of old and new
media.
Loss of diversity of expression
0
10
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30
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50
60
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100
Free-to-air TV
Radio Newspaper Pay TV Internet
Source of news and current affair
Source: Australian Bureau of Statistics in Dunscombe (2004)
Loss of diversity of expression
o Foxtel dominates pay TV and is owned by News Ltd, Telstra and PBL.
o News duplication and redistribution.
Loss of diversity of expression
o Diversity is a nebulous concept.o Need new diversity tests.o Ownership as proxy for diversity?
Conclusion
Thanks!Questions?
