Pay-TV wants sports broadcasting changes

Media organisations support scrapping redundant regulations, but subscription services want the government to change the anti-siphoning list as well.

Media companies are supportive of scrapping archaic ownership and broadcast regulations but are split on how far, or how much further, they should go.

The Turnbull government has proposed repealing the so-called reach rule, which prohibits a company from controlling commercial TV licences which reach more than 75 per cent of the population, and the two-out-of-three rule which prevents a proprietor from controlling more than two of three radio, TV and newspapers in an area.

Free-to-air broadcasters WIN, Prime and Southern Cross Austereo all back axing the rules, but the likes of News Corp and Foxtel aren't happy there's no change to sports rights.

In submissions to a Senate inquiry, subscription services acknowledge changes in technology and consumer behaviour were rendering existing regulations redundant.

However, the Australian Subscription Television and Radio Association wants a whole-of-industry shake-up, arguing it faces the same revenue pressures as free-to-air broadcasters.

It says the anti-siphoning list - which limits first rights to free-to-air broadcasters - now operates well beyond its original intention and has been overtaken by technological developments.

"It would not prevent an over-the-top streaming service like Netflix from acquiring exclusive rights to nationally significant sports and charging viewers for access," the association's CEO Andrew Maiden warns.

Foxtel and News Corp also propose the list be trimmed, with the the latter not wanting it to stop there.

As well as the reach rule and two-out-of-three provision, News Corp wants the three other ownership and control rules scrapped as well.

They include:

* The minimum voices rule, where at least five independent media "voices" must be present in metropolitan commercial radio licence areas and four in regional areas.

* One-to-a-market rule, under which a proprietor must not be able to exercise control of more than one commercial television broadcasting licence in a licence area.

* Two-to-a-market rule, under which a proprietor must not be able to exercise control of more than two commercial radio broadcasting licences in a licence area.

"True reform of these two pillars of Australia's media laws (media ownership and control, and anti-siphoning) would significantly contribute to macroeconomic reform in Australia," it says in its submission.

The media union supports removing the reach rule, but wants removing the two-out-of-three rule to be delayed until plausible laws are drafted to encourage media diversity in the digital age.

"The effect of doing otherwise will be greater consolidation and fewer voices in media organisations of scale," CEO Paul Murphy says.

Fairfax Media supports the government's plan.


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Source: AAP



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