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Regulation of Media Ownership. 203001308_1. Introduction. The Rules, Past and Current The Changing Shape of the Media Industry The Time Line for future Reform Ownership Effects. Early Rules. 1935 – law restricted multiple ownership of commercial stations
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Regulation of Media Ownership 203001308_1
Introduction • The Rules, Past and Current • The Changing Shape of the Media Industry • The Time Line for future Reform • Ownership Effects
Early Rules • 1935 – law restricted multiple ownership of commercial stations • 1942 – Newspapers had acquired 44% of commercial stations • 1951 – Non citizens can’t control commercial stations • 1956 – 1986 - two TV stations per interest limit • 1986/87 cross media rules first introduced. “Cant be queen of screen and prince of print.” • Grandfathering rules first introduced 1965-1984, then 1987.
Some Key Concepts • Actual Control • In a position to exercise control • Newspaper • Company interests • Tracing of interests • Overlapping licence areas
Structure Unacceptable Media Diversity Situation Reporting Obligations Register Points Test Key Definitions Sections 61AC and 61AE Protective Advantages Sections 61AU to 61AZH Section 61AB Section 61AN(4)
Reporting Obligations • Penalties: sections 63 and 64 • Media Groups Protected: section 61AN(4) • First Mover Advantage for innocent breaches: section 61AN(7) and (8) • Prior approval: sections 61AJ and 61AMC
Prior Approval • ACMA 30 days for further information • No decision making time limit – 45 day/best endeavours • One month 2 years for unacceptablemedia diversity 12 months for unacceptable 3-way control Undertakings
The Register • Initial entry/asap after 1/2/07: sections 65, 61AU and 61AY • New media group: section 61AZ • Conditional entries: section 61AZD • Unconfirmed entries: section 61AZE • Time of essence
Remedial Directions: Sections 61AN and 61ANA • Not to registered controller: section 61AN(4) • Period of up to 2 years/12 months • Extension for compliance available: section 61AP Good faithReasonable precautions Flagrant = 1 month
The Time Line 2007 2009 2010-12 Relax Media Ownership SD Multichannel Analogue Switchoff HDTV/ABC/SBS Multichannel Full Anti-Siphoning Review Full Multichannel Auction of 2 digital channels Anti-Siphoning Use it or Lose it Digital Radio Introduction
Channel A Must be: Datacasting Narrowcasting Community television For domestic reception Must be digital Not available for FTA broadcasters Channel B Must not be: Commercial broadcasting or re- transmission service or subscription television for domestic digital television reception Not controlled by commercial or national broadcasting if for domestic television reception New Digital Channels
Common control TV Radio Newspaper Cross-Media Disclosure • Commercial television broadcast: section 61BB • Business affairs disclosure – commercial radio: section 61BD • Regular disclosure – commercial radio: section 61BE • Disclosure by newspaper publisher: section 61BF
Licence Conditions • Regional TV • In aggregated markets: section 43A • To broadcast minimum levels of material of local significance • Prime, Southern Cross, WIN, NBN, Seven
Licence Condition: Commercial Radio • Regional Radio • Trigger event: section 61CB • Licence must maintain minimum levels (section 61CD) for local news, weather, community service announcements, emergency warnings • Licensee to submit local content plan for approval: section 61CF • Local content condition: section 43C • Local presence condition if trigger event occurs: section 43B
Regional Radio • Trigger Event change of control Minimum standards News (5) weather (5), community services (1), Emergencies Local Content Plan Local presence condition ACMA Approval Annual Compliance Report
Effects: Television Seven Network KKR Conversion 50% Convertible Notes Creation of separate PBL Media Group Nine Network Further 25% CVC 50% Convertible Notes Canwest Canwesttoconvert Ten Network Sought whole of Network sale 199250% Convertible Notes Acquired STW Perth and NWS Adelaide Win Television
Effects: Radio 1. Macquarie Media Phase One DMG Undertaking to divest various licences acquired Macquarie Media to acquire television SouthernCross 2. Macquarie Media/ Fairfax Undertaking to divest 12 radio licences Fairfax to acquire radio
Effects: Newspapers Rural Press Fairfax merger Southern Cross Radio 2CH/3AW