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&200(5&,$/ 5$',2 ± 6(59,1* 5(*,21$/ $8675$/,$ &200(5&,$/ 5$',2 ±6(59,1* 5(*,21$/ $8675$/,$ $ 6XEPLVVLRQ WR WKH +RXVH RI 5HSUHVHQWDWLYHV 6WDQGLQJ &RPPLWWHH RQ &RPPXQLFDWLRQV 7UDQVSRUW DQG WKH $UWV 5(*,21$/ 5$',2 ,148,5< )URP The Federation of Australian Radio Broadcasters Limited 1RYHPEHU ACN 059 731 467 ABN 80 107 802 210 The Federation of Australian Radio Broadcasters Limited Regional Radio Inquiry Submission FOREWORD This submission is intended to provide the House of Representatives Standing Committee on Communications, Transport and the Arts with a broad overview of the commercial broadcasting scene in regional and rural Australia and demonstrates the comprehensive and professional services being provided to listeners. It does not represent the specific views of all members of the Federation of Australian Radio Broadcasters (FARB), many of whom will submit separate submissions. While it has drawn some conclusions it has not made any recommendations. FARB reserves the right to make a further submission and recommendations in the light of issues raised during the course of the inquiry. Commercial broadcasters will be responsive to any real issues that may be highlighted by the inquiry. The Federation of Australian Radio Broadcasters Limited Regional Radio Inquiry Submission CONTENTS Chapter 1 The Federation of Australian Radio Page 4 Broadcasters (FARB) Chapter 2 The media in Australia – structure, ownership Page 7 and regulation Chapter 3 Historical comparisons of media and radio Page 9 over the past three decades Chapter 4 The legislative position Page 14 Chapter 5 Types of radio services in Australia Page 17 Chapter 6 Social and economic factors affecting regional Page 23 and rural Australia Chapter 7 Listening and sources of revenue – how the Page 25 media survives Chapter 8 Future trends in radio employment and career Page 28 opportunities in non metropolitan Australia Chapter 9 Commercial radio viability and profitability Page 30 Chapter 10 Localism Page 37 Chapter 11 The effect of the BSA and networking on non Page 44 metropolitan communities Chapter 12 The potential for new technologies to provide Page 46 more regional radio services Conclusion Page 50 Attachments 1. List of FARB membership 2. Building your business with radio 3. Radio: A team game 4. Media ownership in Australia 5. Share of advertising revenue by publicly listed media companies 6. Sections 3 & 4 of the BSA 7. References for social & economic factors affecting rural & regional Australia 8. Population changes in small towns, 1986-996 9. Radio all Australia listening report 10. Actual & projected population 1977-2021 The Federation of Australian Radio Broadcasters Limited Regional Radio Inquiry Submission CHAPTER ONE: THE FEDERATION OF AUSTRALIAN RADIO BROADCASTERS (FARB) Introduction FARB is the industry association representing the interests of Australia’s commercial radio broadcasters, several of them having been in operation since 1925. A list of FARB’s members is Attachment 1. Its policy is determined by a Board of Directors (10 members), five of whom are elected for a two year period at each Annual General Meeting. The current Board comprises: • Gary Roberts – Austereo (Chairman) • Paul Thompson – DMG Radio Australia (Vice Chairman) • Ron Camplin – Bathurst Broadcasters • Tony Bell – Southern Cross (Vice Chairman Country) Broasdcasting • Fiona Cameron – Australian Radio • Rhys Holleran – RG Capital Radio Network • Chris Lodge – Radio 2LM/2ZZZ • Gay Wallace – Austereo Lismore • Stan Willmott – Corporate • John Hamilton – Australian Radio Development Consultant Network FARB is funded by membership subscriptions according to a formula based on population and the number of commercial radio services in the market. The FARB Secretariat pursues a range of issues on behalf of its member stations. The twelve secretariat staff have an overall knowledge of Members’ needs, and also specialise in areas of the organisation’s operation. The Secretariat assists and advises members in areas such as – Government Relations FARB maintains a strong voice to Government on a range of issues impacting on the commercial radio industry. Industrial Relations On behalf of its members FARB negotiates with unions in respect of industrial awards which apply to employees of commercial radio stations. FARB members are provided with an ongoing service of advice regarding industrial and employment matters, including the interpretation of awards, updates on wage rates and representation before the Australian Industrial Relations Commission. Commercial Advisory Service FARB's Commercial Advisory Service provides assistance to Member stations and advertising agencies on a range of advertising issues including codes of practice applying to programming and advertising as approved and registered by the Australian Broadcasting Authority and other instrumentalities. The Federation of Australian Radio Broadcasters Limited Regional Radio Inquiry Submission Education and Training On behalf of members, FARB fosters a range of seminars, correspondence and technical courses focused on providing radio station employees with an opportunity to learn or review the fundamental principles and techniques applied in specialist areas such as copywriting, programming and sales/marketing. Since 1980, the Australian Film, Television and Radio School (AFTRS) and FARB, have developed a number of training programs for the commercial radio industry with particular emphasis on courses designed for people wishing to enter the industry, including a very successful course for announcers. FARB also maintains a close relationship with major universities around Australia that provide courses relevant to commercial radio broadcasting, including Charles Sturt University at Bathurst which has established a Bachelor of Arts (Communications - Commercial Radio) Degree course. Marketing FARB undertakes a variety of marketing-oriented activities on behalf of Member stations, including the commissioning of research and preparation of publications on a range of subjects and general marketing support such as details on specific industries, demographics and competitive media. Two examples of publications which may be of interest to the Committee are included as Attachments 2 and 3. They are “Building your business with radio” and “Radio: A team game”. Copyright FARB advises its members on a range of copyright matters and discusses issues of industry concern with copyright owners' associations and the Attorney General's Department. In some instances it has been appropriate for FARB to negotiate agreements with collecting societies on behalf of its Members. Research On behalf of its Members, FARB co-ordinates arrangements with accredited research companies for audience measurement surveys. In addition, FARB undertakes and commissions research on a variety of matters relevant to radio broadcasting in Australia. Industry Codes and Standards The secretariat also provides advice to member stations to ensure compliance with voluntary Codes. Under the Commercial Radio Codes of Practice, required by the Broadcasting Services Act 1992. FARB collates regular reports from members on complaints. These reports are provided to the Australian Broadcasting Authority (ABA). Engineering FARB co-ordinates a range of engineering activities on behalf of Member stations, such as negotiations with Telstra for the transition from analog to ISDN technology and formulation of an Electromagnetic Hazard Management policy. During the past two years FARB has spent significant effort investigating and carrying out preliminary planning for Digital Radio Broadcasting (DRB) on behalf of commercial broadcasters. The Federation of Australian Radio Broadcasters Limited Regional Radio Inquiry Submission RAWARDS and Golden Stylus Awards FARB co-ordinates the industry's annual RAWARDS, which recognise professional excellence in commercial radio broadcasting and regularly attract more then 750 entries from stations across Australia. This year's presentation, sponsored by Toyota Australia, was staged at the Melbourne Convention Centre on Saturday 21st October 2000. The industry also stages the Golden Stylus Awards, Australia's longest running creative awards, which are highly coveted by radio writers and producers throughout the advertising industry. The presentation of this year's awards was in Melbourne on Friday, 20th October 2000. The Federation of Australian Radio Broadcasters Limited Regional Radio Inquiry Submission CHAPTER TWO: THE MEDIA IN AUSTRALIA – STRUCTURE, OWNERSHIP AND REGULATION Before commenting on commercial radio in regional areas, it is useful to overview the structure of all media in Australia. This will provide a contextual framework within which to consider the role that radio plays in regional areas. The main forms of media in Australia are television, print media (newspapers and magazines), outdoor, cinema, direct mail, internet, and, of course, radio. The current pattern of media ownership is now comparatively stable after much reshaping, reselling and restructuring. A general feature of the media landscape today is the concentration of ownership in all forms with a number of key players prominent in each of the television, newspapers, magazines, print, outdoor, cinema and radio industries. Major publicly listed players in Australian media are companies such as News Ltd., John Fairfax Publications, the PBL Group, Seven Network, Austereo, APN News & Media, PMP Communication, Prime TV, Queensland Press, Rural Press, Southern Cross Broadcasting, Sunraysia Television, Telecasters Australia,
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