O Verviewof a Ustralia
Total Page:16
File Type:pdf, Size:1020Kb
Overview of A ustralia's M edia O w nership Law s Commercial Free-to-Air TV Broadcasting 1975 (FATA), which applies to all media. All Control direct proposals for foreign investment of Licences A person who has company interests in a more than 5% are subject to case-by-case company which exceed 15% is regarded as A person must not control (see control below): examination, as are proposals for portfolio being in a position to exercise control of the shareholdings of more than 5%. Up to 25% • licences whose combined licence area company (the '15% rule’) (cl. 6, Sch. 1, BSA). foreign investment by a single shareholder populations exceed 75°/o of the population Company interests include shareholding, in a mass circulation newspaper is permitted, of Australia; voting, dividend or winding-up interests (s. 6 with a maximum of 30% for all foreign BSA). Importantly, the 15% rule does not only • more than one licence in the same licence interests. Aggregate investment in provincial apply to direct interests held in a company, it area (though see exception below) (s. 53 and suburban newspapers is limited to 50%. A also applies to an interest of more than 15% Broadcasting Services Act 1992 (BSA)). separate policy relates to foreign ownership of which is carried through a chain of companies ethnic newspapers in Australia. Similar limits apply to directors of companies (cl. 7, Sch. 1, BSA). Minor company interests can that control licences; a director of two or more also be traced through a chain of companies companies that between them control licences; Cross-Media Controls *• (fractional tracing method) and combined to a person who controls a licence and who is a A person must not control: determine a person's relevant interest in a director of a company that controls another company (cl. 8, Sch. 1, BSA). licence (s. 55 BSA). • a commercial TV broadcasting licence and a The 15% rule is not the only determinant of A foreign person must not be in a position to commercial radio broadcasting licence that have the same licence area; or control. The BSA states that "In some cases, control a commercial TV broadcasting licence it may be important to look at agreements (s. 57 BSA). Two or more foreign persons must • a commercial TV broadcasting licence and and arrangements between people and at not have company interests in a licensee that a newspaper associated with that licence accustomed courses of conduct between exceed 20% (s. 57 BSA). Not more than 20% area (associated newspaper); or people" (cl. 1, Sch. 1) and sets out rules to of the directors of a licensee can be foreign determine when a person is in a position to persons (s. 58 BSA). • a commercial radio broadcasting licence and an associated newspaper (s. 60 BSA). exercise control (ell. 2-3, Sch. 1, BSA). Exception: Under s. 38A BSA an additional licence may, under certain circumstances, be A person must not be a director of: Other Major Sources of Law allocated to the holder of an existing licence in • a company in control of a commercial a single licence (solus) market. For the purposes Both the TPA and FATA regulate aspects of TV and a commercial radio broadcasting media ownership. Provisions in the TPA relate of ownership limits both licences are treated as licence that have the same licence area; or being only one licence (s.73 BSA). to mergers that are likely to have the effect of • a company in control of a commercial substantially reducing competition in a market, TV or radio broadcasting licence and an and the misuse of market power. The provisions Pay (Subscription) TV Broadcasting Licences associated newspaper (s. 60 BSA). of FATA address national interest concerns and A foreign person must not have company require proposed mergers of assets valued at A person must not be in control of: interests of more than 20% in a licence (s. 109 more than $5 million to be notified in advance BSA). Two or more foreign persons must not • a commercial TV broadcasting licence and to the Treasurer for approval. The provisions of have company interests of more than 35% in a be a director of a company in control of both the TPA and FATA supplement the media- licence (s. 109 BSA). a commercial radio broadcasting licence specific provisions of the BSA. with the same licence area or an associated Commercial Radio Broadcasting Licences newspaper; • a commercial radio broadcasting licence A person must not control more than two and be a director of a company in control licences in the same licence area (s. 54 BSA). of a commercial TV broadcasting licence Similar limits apply to directors of companies with the same licence area or an associated newspaper; that control licences; a director of two or more How to Use Media Ownership Update companies that between them control licences; • a newspaper associated with the a person who controls a licence and who is a licence area of a commercial TV or radio Major shareholders / significant individuals director of a company that controls another broadcasting licence and be a director of a associated with the controlling interest licence (s. 56 BSA). company in control of that commercial TV companies detailed in each table are listed in Table 17. The BSA imposes no limits on foreign or radio broadcasting licence (s. 61 BSA). ownership or control. A newspaper is associated with the licence area key, notes and sources particular to each table of a commercial TV broadcasting licence if at appear at the end of each table. Newspapers least 50% of its circulation is within the licence KEY area (s. 59 BSA). A newspaper is associated There are no specific limitations in relation to with the licence area of a commercial radio % ownership interest newspapers contained in the BSA, other than broadcasting licence if at least 50% of its CA Canada the cross-media rules (refer cross- media controls circulation is within the licence area and next). The Trade Practices Act 1974 (TPA) also the circulation of the newspaper within the GB Great Britain applies (see other major sources of o w n below). licence area is at least 2% of the licence area IE Ireland Foreign ownership of the print media has population (s. 59 BSA). generally been regulated by way of a standard JV joint venture Government policy ('Summary of Australia's Newspapers covered by these provisions must News Corp. The News Corporation Ltd Foreign Investment Policy', The Treasury, May be in the English language, published at least 4 2000). This policy relates to the administration days per week and receive 50% or more of their PBL Publishing and Broadcasting of the Foreign Acguisitions and Takeovers Act circulation by way of sale (s.6 BSA). Ltd page 2 - Issue 164 - Communications Update April 2002 Table 1: Control of Major Australian Media News Corp. PBL John Fairfax Holdings Ltd Telstra Corp. Ltd ▲ Murdoch Packer Commonwealth Bank of Australia;ss Colonial Commonwealth of Australia 50.1% Ltd;ss Permanent Trustee Company Ltdss PAY TV OPERATOR FREE-TO-AIR TV-4 stations PAY TV OPERATOR FOXTEL (25%; jv Telstra Corp. Ltd 50%; PBL Nine Network FO XTEL (50%; jv News Corp. 25%; PBL 25%) 25%) 3 MAINLAND CAPITAL PAY TV CHANNEL/S PAY TV CHANNEL/S TCN 9 Sydney FOXTEL Fox News GTV 9 Melbourne thecomedychannel (80%; Artist Services 20%) Fox Sports Australia (50:50 jv PBL) QTQ 9 Brisbane Fox Classics FOXTEL 1 MULTI-STATION REGIONAL Fox 8 thecomedychannel (80%; Artist Services 20%) NTD 8 Darwin Fox Footy Channel Fox Classics PAY TV OPERATOR Fox Kids Fox 8 FO XTEL (25%; jv Telstra Corp. Ltd 50%; News FOXTEL Weather Fox Footy Channel Corp. 25%) fx Fox Kids PAY TV CHANNELS The History Channel FOXTEL Weather Fox Sports Australia (50:50 jv News Corp.) National Geographic (50% BSkyB) fx Sky News Australia (33.3%: Seven Network Ltd UK TV (60%: BBC Worldwide Television (GB) The History Channel 33.3%: BSkyB 33.3%) 20%; Pearson Television 20%) National Geographic (50% BSkyB) FOXTEL XYZ (jv FOXTEL; Austar) UK TV (60%; BBC Worldwide Television (GB) thecomedychannel (80%; Artist Services 20%) Arena (50%) 20%; Pearson Television 20%) Fox Classics Channel [V] XYZ (jv FOXTEL; Austar) Fox 8 Lifestyle Channel (50%) Arena (50%) Fox Footy Channel music MAX (50%) Channel [V] Fox Kids Nickelodeon (25%) Lifestyle Channel (50%) FOXTEL Weather Main Event Television (jv FOXTEL; Austar; music M AX (50%) fx Optus (SingTel)) Nickelodeon (25%) The History Channel Main Event Main Event Television (jv FOXTEL; Austar; National Geographic (50% BSkyB) Optus (SingTel)) UK TV (60%; BBC Worldwide Television (GB) Main Event 20%; Pearson Television 20%) XYZ (jv FOXTEL; Austar) Arena (50%) Channel [V] Lifestyle Channel (50%) music MAX (50%) Nickelodeon (25%) Main Event Television (jv FOXTEL; Austar; Optus (SingTel)) Main Event NEWSPAPERS MAGAZINES NEWSPAPERS NATIONAL DAILY Australian Consolidated Press Ltd NATIONAL DAILY The Australian (M -F) 14 TITLES IN TOP 30 (CIRCULATION) The Australian Financial Review (M -F) The Weekend Australian (Sat) The Australian Womens Weekly The Weekend Financial Review (Sat) DAILY (M-SAT) Woman s Dav DAILY (M -SAT) Daily Telegraph (NSW ) Take 5 The Sydney Morning Herald (NSW ) Northern Territory> News (NT) CLEO The Age (VIC) The Advertiser (SA) Cosmopolitan SUNDAY The Mercury (TAS) NW The Sun-Herald (NSW) Herald Sun (VIC) Dolly The Sunday Age (VIC) SUNDAY Burke s Backyard SUBURBAN Sunday Telegraph (NSW ) Ralph Sydney - 10; Melbourne - 13 titles Sunday Territorian (NT) Australian House & Garden Sydney - 4 titles (50%; Torch Publishing Co. The Sunday Mail (SA) The Picture P/L 50%) Sunday Tasmanian (TAS) Money REGIONAL DAILY Sunday Herald Sun (VIC) Australian Gourmet Traveller The Newcastle Herald (NSW ) The Sunday Times (WA) Australian Table The Illawarra Mercury (NSW ) SUBURBAN TOTAL - 59 TITLES Warrnambool Standard (VIC) Sydney - 17; Darwin - 1; Brisbane - 16; PMP Ltd (4.9%)* MAGAZINES Adelaide -11; Melbourne - 38 titles TV Week (50% profit share) Asset Perth - 14 titles (50.1%; West Australian BRW Newspapers Holdings Ltd 49.9%) CFO Magazine REGIONAL DAILY MIS Australia Townsville Bulletin (QLD) Personal Investor- Queensland Press Ltd [Cruden Investments P/L PUBLISHING PUBLISHING BROADCASTING Shares 58.3% (Murdoch); N ew s Corp.