Australia's media companies have one hand tied behind their back as they struggle to compete with international online giants like Netflix and Google, an inquiry has heard.
Ten Network chief executive Paul Anderson says they are not asking for a handout but for a level playing field as they compete for viewers and advertisers against billion-dollar global internet companies.
"We are simply asking you to level the playing field somewhat for Australian companies in our efforts to compete with overseas-based online giants," Mr Anderson told a Senate inquiry into media law reform.
"We are competing at the moment against the Netflix and Google and YouTubes effectively with one hand tied behind our back."
The government plans to scrap rules preventing broadcasters reaching more than 75 per cent of the population and media companies from owning a newspaper, radio network and TV station in the same market.
There has been speculation the removal of the two-out-of-three rule will free up News Corp, which owns half of pay TV operator Foxtel, to acquire Ten. Foxtel has a 15 per cent stake in Ten.
News Corp Australia executive chairman Michael Miller denied the reforms were designed with the newspaper group in mind.
"I reject the suggestions by others this legislation has been created to allow one deal, the inference that this advantages News Corp Australia," he told the inquiry on Friday.
"You only have to read the financial pages to know all of our competitors have been linked to possible deals and mergers."
Nine Entertainment Co chief executive Hugh Marks predicted there would be numerous partnerships and alliances over the next 12 months particularly around good content, but played down the prospect of a raft of merger and acquisition activity after the reforms.
"I don't know that there will be a rush of mergers and acquisitions," he said.
Mr Marks said Nine's focus was on its content business and he was not sure an acquisition of a regional player would add to that.
"Not in terms of acquiring a regional television broadcaster, I don't see it high on our priority list," he said.
Ten, Nine and the Seven Network have all said their most pressing issue is licence fees, which currently amount to 4.5 per cent of their revenues.
The Australian reports the federal government is preparing to slash the $153 million in annual licence fees in Tuesday's budget.
Mr Marks said the commercial networks also faced increased competition from public broadcasters as they suffered declines in their revenue base due to audience fragmentation.
"We suffer competition greatly from this new raft of international competitors and that's had a definite impact on our audiences and has had a definite impact on our profitability and ultimately will have an impact on our ability to provide local content," he said.
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