Introduction A U S T R A L I A N B R O A D C A S T I N G A U T H O R I TY annual report Sydney 1997 1 Annual Report 1996-97 © Commonwealth of Australia, 1997 ISSN 1320-2863 Design by Media and Public Relations Australian Broadcasting Authority Printed in Australia by Printing Headquarters, Broadway, NSW 2008 For inquiries about this report, contact: Publications Officer Australian Broadcasting Authority at address below For inquiries about information to be made available to Members of Parliament and Senators on request, contact: Director Corporate Services Branch Australian Broadcasting Authority at address below For inquiries relating to Freedom of Information, contact: FOI Officer Australian Broadcasting Authority Level 15, 201 Sussex Street Sydney NSW 2000 Ph. (02) 9334 7700 Fax: (02) 9334 7799 Postal address: PO Box Q500 Queen Victoria Building NSW 1230 E-mail: [email protected] Web site: http://www.dca.gov.au/aba/hpcov.htm 2 Introduction Reserved for letter of transmission 3 Annual Report 1996-97 4 Introduction Table of contents Page no. Letter of transmission 3 Introduction to the report 7 The year in review 8 Corporate overview 16 Performance reporting: Objective 1 — Expert advice 23 International liaison 24 Advice to the government 30 Digital terrestrial television broadcasting 30 Digital radio broadcasting 31 The sixth television channel 32 External liaison 34 Objective 2 — Planning the spectrum 45 Final licence area plans – radio 46 Final licence area plans – television 53 Objective 3 — Licence allocations 56 Allocation of commercial licences 56 Allocation of community licences 59 Open narrowcasting licences 61 Subscription television broadcasting licences 63 Temporary transmissions by aspirant community broadcasters 64 Community television 65 Objective 4 — Control of broadcasting services 67 CanWest/The Ten Group Ltd 68 5 Annual Report 1996-97 Objective 5 — Programming 72 On-line services 73 Investigation into Australian content on pay TV 74 Attitudinal research 77 Codes of practice 82 Australian content on commercial television 85 Children's television 88 Anti-siphoning 90 Objective 6 — Resources 92 Appendices 1 Additional matters 99 Social justice statement 100 Staffing overview 102 Litigation summary 105 2 Number of new transmitters planned in final licence area plans 100 3 Temporary transmissions by aspirant community broadcasters 111 4 Investigations: no breach findings 113 5 Investigations: breaches found 124 6 Freedom of information 144 7 Compliance index 159 Financial statements 160 Index 6 Introduction Introduction to the report The report is presented in accordance with the reporting requirements for departmental annual reports. The Authority meets its mission statement (see inside front cover) by means of six objectives. Each of these objectives is addressed, and the outcomes and highlights of the reporting period, in the following section on performance reporting. A detailed discussion of the Authority’s achievements against those objectives begins on p.23. In summary, the contents of this annual report are: • The year in review, including significant issues during the reporting year. • Corporate overview, including structure of the Authority, and a summary of its powers and functions. • Performance reports, the Authority’s achievements and activities for the year, assessed against the Corporate Plan objectives. • Social justice, including social justice and equity, EEO, internal and external scrutiny. • Summary statements, performance pay, staffing matters. • Freedom of information. 7 Annual Report 1996-97 The year in review The year has seen the Authority consolidate its achievements of past years and continue to provide a regulatory environment which encourages the broadcasting industry to be competitive and, at the same time, responsive to audience needs. The Authority has continued to promote its role as a regulator in the Asian and Pacific regions. In accordance with its acknowledged role as a leader in the new field of on-line services, the Authority has been instrumental in international negotiations which are leading towards the development of international agreement on regulation of the Internet. International relations The Authority recognises the rapidly changing nature of communications and how this challenges the traditional definitions of radio and television broadcasting. As a result, the need for international cooperation and dialogue between regulatory counterparts is increasingly evident. The Authority has developed the capacity to engage in dialogue about regulatory matters while respecting diverse cultural and social perspectives. The Authority has taken a proactive stance in these matters and is recognised as a regulator that sees international regulatory cohesion as essential in an increasingly globalised world, and is also prepared to work towards achieving it. The Authority places particular importance on its relations with regulatory partners from the Asian and Pacific regions. It has nurtured the notion of an Asian Pacific Regulatory Roundtable and convened an exploratory meeting which led to the inaugural meeting held in Japan in June 1997. The next meeting will be held in Korea. The Authority has continued to maintain formal links with other broadcasting regulators, and this year signed cooperation agreements with its French and Canadian counterparts and a memorandum of understanding with the regulatory agency in Taipei. On-line services Since the release of its report, Investigation into the content of on-line services, in July 1997, the Authority has continued to monitor developments, both domestic and international, in the on-line services area. The Authority’s investigation placed it at the forefront of both national and international discussions on content labelling and community education. The positive reception given to the report and the support for the Authority’s approach to regulation has continued as the Authority has been invited to participate in formal discussions and international working groups. The Authority has encouraged an international approach to Internet regulation. The Authority has also placed particular emphasis on providing options for parents and supervisors who manage children’s access to the Internet. In this regard, the Authority was particularly pleased to join the International Content Rating Group, which will, among other things, develop a model for an international rating of content. 8 Introduction Advice Digital broadcasting The Authority has contributed to international standard setting and to the debate on the preferred outcomes for digital terrestrial television broadcasting in Australia. In January 1997, the Digital Terrestrial Television Broadcasting Specialist Group presented its final report to the Authority for consideration. Following this report, in July 1997, the Authority recommended to the government that it support the early introduction of digital terrestrial television broadcasting into Australia, and that it be introduced as a high definition system. This would enable receivers to receive all types of future transmissions. The Authority also recommended that Australia conduct detailed technical evaluation trials and adopt a single system standard; that all existing commercial and national television services be given a channel for the introductory period which should start in the year 2000; and that, subject to regular review, market factors determine the phase out of the existing PAL analog broadcasting system. The digital radio broadcasting taskforce convened by the Authority identified the broadcasting requirements for digital radio broadcasting and made a number of recommendations to the Minister for Communications and the Arts’ Digital Radio Advisory Task Force. The recommendations included that existing broadcasters be given priority access to digital radio; a development period precede the introduction of digital radio; and non-broadcasters be able to share the digital spectrum. Pay TV At the request of the Minister for Communications and the Arts, the Authority conducted an investigation into Australian content on pay TV, including the feasiblility of increasing to 20 per cent the required level of expenditure on new Australian drama, as required by s.215(2) of the Act. The report, Australian content on pay TV, provided the Minister with an analysis of the nature of Australian content on pay TV, and an assessment of the effectiveness of the operation of the current requirement that 10 per cent of a licensee’s program expenditure on its drama channels be spent on new Australian drama. In considering options, the Authority consulted widely with the pay TV industry, the commercial television industry, the film and television production industry and relevant government agencies. The Authority considers that the production industry stands to gain from the current requirement, mainly through the increased spending on new Australian drama feature films by channels devoted to new movies. The Authority concluded that doubling the expenditure obligation to 20 per cent for movie channels packaged in Australia would be problematic for the pay TV industry. However, the Authority considered that such an increase could be imposed on non-movie drama channels around the year 2001, when these channels are forecast to have recovered from losses. Such a proposal should be evaluated closer to that date. The Authority also recommended that Australian content requirements should not be extended to non-drama pay TV channels. Allowing