Convergence Review recommends package of far-reaching reforms and a new regulator for the digital economy
The Convergence Review Committee today recommended a package of far-reaching reforms for Australia’s media content and communications policy framework.
Committee Chair, Glen Boreham, said the Interim Report represents a fundamental re-examination of current regulation and proposes a new framework to deliver a vibrant content and communications industry and drive Australia’s digital economy.
Recommendations for the regulatory landscape in Australia include:
- A platform-neutral regulatory framework focused on the new concept of Content Services Enterprises
- A new independent regulator for communications in the digital economy
- Removal of content-related licenses
“We want to emphasise that our recommendations should be viewed as part of a package of measures aimed at strengthening Australia’s content and communications future. Our approach is to reduce the amount of regulation in the industry and to ensure the efficacy of that regulation.”
“The Committee is working on further recommendations on a range of issues for its final report to government in March 2012.”
“We also recognise there are a number of concurrent government reviews, such as the Independent Media Inquiry and the Australian Law Reform Commission’s Review of the National Classification Scheme, that will influence our final report,” Mr Boreham said.
Comments on the Interim Report should be made to the Convergence Review Secretariat by Friday 10 February 2012 by emailing convergence@dbcde.gov.au
The Interim Report of the Convergence Review can be found at www.dbcde.gov.au/convergence
Media inquiries: media@dbcde.gov.au
(02) 6271 1687
Summary of recommendations
A platform-neutral regulatory framework focused on the new concept of Content Service Enterprises
- The Committee recommends that the regulatory framework should centre on entities classified as ‘Content Service Enterprises’. The technology-neutral definition of a Content Service Enterprise would be set intentionally high and should include threshold criteria relating to the scale and nature of entities supplying content services.
A new independent regulator for content and communications in the digital economy
- The Committee recommends a new independent regulator for content and communications that operates at arms-length from government and industry. The regulator should have flexible powers to make rules within the principles and policy frameworks established by legislation.
Removal of content-related licenses
- The Committee considers that content licences should no longer be required to provide a content service.
New diversity and competition arrangements
- The minimum number of voices rule in a local market should be revised to include all Content Service Enterprises. This new rule could cover entities such as national newspapers, subscription television and online providers, where they qualify as a Content Service Enterprise.
- A public interest test should be developed to ensure that diversity considerations are taken into account where Content Service Enterprises with significant influence at a national level are involved in mergers or acquisitions.
- The new regulator should be given broad and flexible powers to issue directions and make rules in order to promote fair and effective competition in content and communications markets.
Reform of spectrum planning and allocation arrangements
- The government should develop a common and consistent approach to the allocation and management of both broadcasting and non-broadcasting spectrum. This approach will separate most existing content-related obligations of broadcast enterprises from licenses to use spectrum.
New platform-neutral Australian content arrangements
- All Content Service Enterprises that provide audio-visual content, whether linear or non-linear, should be required to support Australian content. This could be done by either:
- Committing a percentage of total program expenditure to producing specified Australian content, or where this is not practicable,
- Contributing to a converged content production fund.
- Commercial free-to-air (FTA) television broadcasters will eventually fall under the Content Service Enterprises arrangements. Transitional measures for commercial FTA television broadcasters include:
- 55% Australian content quota on the main channel to continue in the interim
- Some increase in Australian sub quota content obligations should be flexibly applied to reflect the two additional channels each broadcaster currently operates without content requirements.
Promotion of local content and community broadcasters
- Commercial FTA broadcasters using spectrum should continue to devote a minimum amount of programming to material of local significance. A more flexible compliance and reporting regime for this content should be implemented.
- Community broadcasters and local content providers should be encouraged to explore innovative ways to deliver local content, including on new delivery platforms.
Reinforcing the role of public broadcasters
- The ABC and SBS charters should expressly reflect their range of existing services, including online activities. This will give commercial operators increased certainty about the boundaries of public broadcaster activities.
- Australian content quotas should apply to public broadcasters.
