This article examines the State of the Australian Media Industry in terms of the Bargaining code, Digital Platforms and Social Media. It explores the implications for TV and radio companies and the broader industry. While the underlying issues aren’t new, the current climate and the impact of OTT are particularly significant. In particular, the general entertainment segment is under threat as consumers increasingly prefer on-demand binge-watching of TV series and movies, rather than linear TV. However, Australia has traditionally relied on US television studios for much of its television and film programming. While a number of US television studios have long provided Australian content, Nine Entertainment pays $170 million to Warner Bros each year for unsaleable inventory, the deal is due to end in 2016, and is expected to generate cost savings for the company. Meanwhile, Nine Entertainment is also producing more local content, including local
State of transformation
As audiences move from linear TV to on-demand services, the media industry has undergone a fundamental transformation. The media landscape is undergoing unprecedented changes, and advertisers are following the eyeballs. Broadband penetration is rising and the resulting changes in distribution models permanently alter the media industry. The decaying trends in traditional media have been exacerbated for Australian companies, which are now competing with international cloud-first businesses for audience share and advertiser revenue. These disruptions are causing further pressure on Australian broadcasters, which fund a large proportion of local content.
The report offers detailed data on the Australian media industry. It provides key industry figures, including total spending and revenue, and financial data broken down by media format. It covers reach and penetration rates for digital audiovisual technologies, as well as subscription numbers for leading streaming services and print content. It also provides insights into consumer preference and media usage. For media industry players, it’s a crucial time to understand the changing landscape and stay ahead of the competition.
Increasingly, newsrooms are putting greater emphasis on specialisation, and fewer journalists are concentrating on general news. Newsrooms are now becoming aware of the value of science and technology journalists. In response to this, many newsrooms are building specialist teams with specialist skills. Others have implemented new technologies that allow journalists to shoot video content and edit it themselves, saving on production costs. All of these new innovations will improve the Australian media industry, and ultimately benefit all consumers.
Bargaining code
While the ACCC’s process and Code of Conduct for Online Content Providers represent significant structural changes, it could also affect Australian services. For instance, a Code of Conduct for Online Content Providers would impact platform providers, as they will engage in a process with all registered media content providers. Financial thresholds would affect them, too, and the Code could potentially lead to collective bargaining. But the ACCC’s efforts to reform the industry have inspired lawmakers around the world.
The Code also includes Google and Facebook, which have massive market share in Australia. Google parent Alphabet has steadily grown its revenues and is expected to reach USD 180 billion by 2020. In 2015, 83 percent of Australian advertising dollars went to these digital hegemons, and the Code would help regional news organisations negotiate with the same platforms. Eventually, the Code could be extended to other digital platforms as well.
After the Code was released, the debate over it intensified. As the debate raged, many people around the world watched as the Australian government tried to pass legislation addressing the issue. Some suggested that digital giants develop their own codes of conduct. However, if the codes of conduct were robust, they would have been enforced in Australia. This led the Australian government to commission its own rules in the area of digital media.
Digital Platforms
The state of Australian media regulation was once governed by the rules governing the ownership of media companies. However, as the media landscape has increasingly become more global and the number of international media companies has increased, the rules governing media ownership have changed. New laws introduced in September 2017 allowing foreign ownership of Australian media companies has further complicated the regulation of these media giants. However, it’s not clear when these changes will be implemented.
In Australia, the ACCC has been tasked with two new inquiries into digital platforms. The first is the use of advertising data by the three big platforms. The other concerns concern the use of consumer data for advertising. The ACCC report also outlines that Facebook and Google have considerable market power in display and search advertising. This is a violation of the Australian Competition and Consumer Commission Act. However, these issues are not as grave as they may appear.
A report released by the ACCC last week recommended that digital platforms provide consumers with codes of conduct for their business dealings. These codes would include obligations relating to consent, opt-out, data retention, complaint handling, and the sale of personal information. Other recommendations include a significant amendment of consumer law imposing civil penalties for the use of unfair contract terms. The ACCC will also investigate developments in the market for digital platform services outside Australia.
Social Media
The use of Social Media in the Australian media industry is rapidly expanding and influencing the way Australians search for information. While 98% of Australian internet users aged 16 to 64 still use conventional search engines, one third of them turn to social media to gather information about brands. A social media presence is now just as important as a website for communicating brand identity. Here are a few ways to effectively utilize social media in the Australian media industry.
The Australian media industry has adapted to digital platforms and are well versed in the syndication of content across various media. Social Media platforms are the most common method of content syndication. These platforms provide business owners with a direct line to their target audience. The Australian media industry is taking advantage of its position as one of the most digitally active media organisations in the world. To increase the engagement of their readers through social media, Australian media outlets are embracing the technology and utilizing its growing reach to increase their brand visibility and revenue.
Facebook has been targeted by government legislation aimed at redressing the power imbalance on the digital platforms. It also wants Google and Facebook to pay local news publishers. Whether this change impacts the media industry is unclear, but the Australian Government has made it clear that the changes will affect the media industry. But despite this reluctance to pay for news publishers, Australians’ trust in these platforms remains high.
Journalism
The merger of Foxtel, Nine Entertainment and Fairfax Media has caused a seismic shift in the Australian media industry. The merger has been dubbed a “shake-up” of the market by some commentators, including Shadow Minister for Communications, Mitch Fifield. Moreover, media academics argued that the merger has forced Australian news producers to reinvent their business model in response to the technological revolution and the competitive nature of the market.
Trans nationalization of the industry has impacted Australia’s television broadcasting industry. The American network CBS purchased one of the three commercial television networks in Australia. While this acquisition did not threaten the integrity of the Australian television institution, it does mean the future of broadcasting in the country is uncertain. The ACCC is examining how the industry is impacted by the impact of these changes. But if it finds that the changes are disproportionately damaging the quality of public service journalism, it may decide to develop its own mandatory code.
Australia has long had a highly regulated television market. FTA networks are required to pay substantial license fees to use spectrum and have public interest obligations (local content must be 55 percent). Alcohol advertising is also restricted to certain hours. In addition, network governance involves self-regulatory codes of practice. Public broadcasters must comply with charter obligations. It’s unclear if these changes will be enough to curb the proliferation of commercial media in Australia.
Quality of media
The quality of media in Australia is currently undergoing transformation, as the digital revolution transforms the way we access and consume information. New business models and commercial strategies have emerged in the media industry, and governments must determine the best tools to support content creators. The changes in the news media industry could have implications for the quality of journalism in Australia. Here are a few of the major shifts affecting the news media sector.
The Convergence Review recommended replacing the rules that control media ownership, including the minimum number of owners rule and public interest test. These recommendations were not part of the Labor Government’s media reform package, but they remain part of the ongoing debate about media regulation in Australia. The report was prompted by changes in the media industry, including the growth of international platform service providers, and the changing habits of content consumption. The report is the latest example of the evolution of media regulation in Australia.
In Australia, television news programmes were increasingly important in shaping public opinion and changing the sources of information and perspectives available to audiences. These programmes made Indigenous activists household names. Television helped create a visual narrative for audiences and revealed reasoned appeals for change and dramatic gestures of struggle. Television also provided a platform for activists to make their voices heard and influence government policy. Ultimately, television changed the face of journalism in Australia.
Fake News
As Australia’s media industry experiences an unprecedented period of transformation, some argue that the rise of fake news is a positive development. A recent study suggests that Australians rely on online news and social media and are concerned about the rise of fake news. While the threat of fake news has not completely demolished the media industry, some fear that it will erode trust and subscriptions for credible reporting. Despite these concerns, the Australian Communications and Media Authority (ACMA) has added the almost unknown News Cop to its public register. The fact that this site lacks a physical address may mean that the media giants are negotiating licensing deals with it.
The fear of false information is real, which is why governments and companies are adopting digital solutions to combat the problem. One example is the platform Knowhere, which uses machine learning to deliver unbiased news. Users can view news stories based on their own political biases, or they can choose to read a neutral ‘just the facts’ version. The ability to monitor news content has a measurable impact on business messages.
