Abc Submission to Inquiry Into the Uptake of Digital Television in Australia by Standing Committee on Communications, Informat

Australian Broadcasting Corporation

submission to

Convergence Review Committee

Framing Paper

June 2011

ABC submission on the Convergence Review Framing Paper

Introduction

The ABC welcomes the opportunity to comment on the framing principles for the Convergence Review.

As the review panel states in its Framing Paper, convergence is now a fact of life in the media and communications environment. It has been a reality for the national public broadcaster over the past few years. In fulfilling its Charter obligation to provide “innovative and comprehensive broadcasting”, the ABC has vigorously pursued the challenges and opportunities offered by new technology and new platforms to better serve its audiences and to respond to their changing expectations and demands.

The ABC has embraced the digital age, creating the children’s service ABC3 and ABC News 24 on television and a suite of new radio channels, like ABC Dig Music, ABC Grandstand and ABC Extra. In recognition of the consumer appetite for on-demand content, the Corporation launched iView, Australia’s first and most popular catch-up TV service, with more than one million monthly visitors. ABC radio was a pioneer in podcasting and now registers more than 4.7 million downloads per month. The ABC’s mobile applications, including those for the iPad and iPhone, have generated strong demand. Innovative multi- media content like the award winning Gallipoli, the first day have showcased the educational opportunities of the online platform, as has the Reading Eggs educational service, operated by ABC Commercial. The Corporation has also led the way in social media, connecting with both loyal and new audiences with the diverse and highly effective collection of presences it has established across multiple platforms.

It is widely recognised that the various technological changes which underpin convergence are challenging both the business models of the traditional communications players and the regulatory arrangements imposed by governments.

The Principles

The Review Panel’s approach of identifying the key objectives of communications policy is a critical first step in designing an appropriate framework for this new and evolving marketplace.

The ABC believes that the principles provide a sound platform for media and communications regulation in a converged environment.

Technology has transformed the means of delivering content. It follows that platform-based regulatory frameworks need to be re-examined. However, the Review needs to acknowledge, that while technological change may challenge regulatory structures, this does not mean that the policy objectives that underpin those structures are no longer relevant.

1 Submission on Convergence Review Framing Paper 2

The Corporation does not advocate any amendment of the Principles. However, it believes that it is important that the Principles are interpreted in a way that broadly recognises both the traditional understanding of the objectives of policy and also the dynamic nature of the modern media.

Access

The concept of access is central to Principles 1, 3 and 4.

There are clear public benefits flowing from the ubiquitous availability of a comprehensive national broadcaster. The ABC reaches all Australians regardless of geographic or economic circumstances. It has a presence on all major delivery platforms, ensuring that all citizens can participate in the national debate. It is at the heart of the ABC’s Charter that the services it provides are a public good which should be available to all Australians.

In the Australian context, the objective of ensuring access to local content, diverse voices and views, and news and information of relevance to the local community has always meant “access for all”, not simply access to those who wish or can afford to pay for it.

Policy settings in this area need to ensure that desired outcomes are not achieved by simply setting in place access to a platform. For example, if consumers are to access high-quality Australian drama, there must be an ecology and an infrastructure, managed with appropriate policy settings, to generate that drama content in the first place. The current system of content quotas for commercial television ensures a demand for local content production which supports a competitive and vibrant production industry. It also guarantees minimum levels of output. Similarly, direct funding to the national broadcasters for drama production has also played a key role in stimulating the creative sector.

Australia is moving into an environment where a vast amount of foreign-produced content will be easily accessible to consumers on demand. New platforms and increasing content choices are fragmenting audiences and weakening the business models that have supported the production and distribution of local content. In this context, Principle 3 should be seen to encompass policies designed to facilitate the development of the cultural and creative industries necessary to achieve the objective of ensuring that Australians continue to have access to diverse and high-quality local content. Currently this objective is met through a variety of content quotas and incentives such as the Producer Offset. An examination of the appropriateness of this mix will need to be a key feature of the Review.

In a wider sense, it is important that the Principles recognise that, in the converged media environment, users are not just passive content consumers, but potential content creators and

Submission on Convergence Review Framing Paper 3 contributors. Principle 1, in particular, must interpret access as encompassing the right of citizens to participate in this way.

The ABC is using digital technology to facilitate two-way conversations with the public through projects like ABC Open and the innovative use of a Twitter feed on Q&A.

Literacy

The technological changes driving convergence mean that digital media literacy is becoming increasingly important for participation in all aspects of society.1 The ability to access diverse voices, views and information is dependent on a citizen’s capacity to engage with new technology. The ABC believes that the promotion and development of digital media literacy should be an important policy objective.

In addition to Principle 1, the ABC believes that the promotion of digital literacy should be seen to be within the scope of Principles 5 and 7.

Local News

The ABC endorses Principle 4, which highlights the importance of local news. The delivery of comprehensive and impartial news is critical to the democratic process. The ABC is proud of the fact that it has a key role in delivering local news from 60 regional and metropolitan sites across Australia, speaking directly to audiences across the continent.

It is important to recognise that “news” has a qualitative dimension and that consumers recognise that not all news is equal. Recent research by Essential Media found that Australians regard ABC Television and Radio news as significantly more trustworthy than commercial and subscription services.2

While blogs and social media are welcome additional news sources and provide forums in which to facilitate public debate, their presence does not obviate the need for well-resourced and comprehensive public broadcasting.

Copyright

Principle 6 states that Australians should have access to the broadest range of content across platforms and services as possible. The ABC believes that the application of this Principle will require the Panel to examine the application of copyright law to the new media environment.

1 The ACMA has defined the concept of digital literacy as the ability to access, understand and participate or create content using digital media. 2 Essential Report, 2 May 2011.

Submission on Convergence Review Framing Paper 4

As the ABC noted in its submission on the terms of reference, like the Broadcasting Service Act, the Copyright Act does not adequately take into account new technology and delivery mechanisms. This can lead to uncertainties in the exploitation of rights using converged technologies. These uncertainties have the potential to retard the development of new services and business models for the distribution of digital content in a converged environment.

Other countries are already grappling with this challenge. For example, the United Kingdom has recently completed a review of its copyright laws which found that copyright law had started to act as a regulatory barrier to the creation of new internet based business.3

Issues arising from the Principles

The Framing Paper invites stakeholders to identify the significant issues arising from the Principles. While the list below is not exhaustive, the ABC believes that the following questions represent key issues to be tackled by the Convergence Review. The ABC acknowledges that some of these matters fall outside of its direct concern.

• What media ownership rules are appropriate in the converged media environment (Principle 1)? • What sort of licensing regime(s) should apply to media services (Principle 2)? • Are existing levels of Australian content adequate (Principle 3)? • What are the appropriate tools to achieve access to Australian content (Principle 3)? • How should Australian content be defined? Should it include User-Generated Content? (Principle 3)? • How should access to local news be provided (Principle 4)? • How should classification standards be applied to content (Principle 5)? • Are copyright reforms needed to facilitate multi-platform, anytime digital content distribution (Principle 6)? • Should ISPs be able to prioritize data they carry on the basis of content or source (Principle 7)? • How should spectrum be allocated and planned for broadcasting and other communications services (Principle 8)?

The ABC understands that the appropriate policy responses to these issues will be canvassed in the consultation process that will follow the emerging issues paper and a discussion paper.

The Corporation looks forward to engaging with the Panel as the Review progresses.

3 Professor Ian Hargreaves, ‘Digital Opportunity: A Review of Intellectual Property and Growth’, May 2011.