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Efficient, Trusted, Valued. Yours, Now & Into the Future

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Efficient, Trusted, Valued. Yours, Now & Into the Future Efficient, trusted, valued Your ABC: Efficient, trusted, valued ABC Open Today, the ABC is better value for Australians than ever before. The ABC continues to adopt smarter ways of working and harness the benefits of new technology to deliver more quality and distinctive content and across more platforms – at a lower cost. The ABC was created to serve the Australian The ABC acknowledges that it operates in people. We tell the nation’s story and help a society where there are many competing Australians understand their place in the world. demands for public funding. The ABC We connect Australians wherever they live understands that to honour the trust placed in and bring them together around the moments it by the Australian people, it must manage the that matter. We are the place where unique funds given to it wisely and responsibly. Over Australian stories are created, and where young the past thirty years the ABC has continuously and old alike can be inspired and delighted by sought efficiencies to maximize the amount of the arts, music and the wonders of science. money we spend on great content and services for all Australians. For generations, the Australian people have invested significant funds in establishing the Despite a real decline in funding per person, ABC as a critically important social and cultural the ABC has been able to enhance the services institution. The legacy of this investment: the it provides to the Australian public. Services unique Australian stories told, the great national like iview, the ABC News channel, the comedy debates that have been contested, channel, digital radio services, podcasts and the art and the music that has been created, increased investment in regional reporting have is woven into the fabric of our country. all been funded without additional real funding from Government. 1 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018 2017 Slate Launch Funding Creative talent In 1987 the ABC famously cost eight cents a day. As Australia’s largest creative employer, Adjusted for inflation and population growth, we enrich the lives of our fellow citizens by the ABC today costs each Australian just half discovering and showcasing the talents of that amount. Australian people. We promote and invest in the broader creative community. Since the mid-1980s our real funding has decreased by 28% or $336 million. 56% of the music we play on triple J is Australian. 100% of the music on triple J unearthed features Our funding is 34% lower than the average of new Australian talent 18 comparable public broadcasters. In 2017 we invested $94.5 million in independent productions, creating private sector jobs for Efficiency writers, producers, directors, actors and the businesses that support them. As technology changes the ABC has provided Australians with more content, services and platforms. Trust We have done these additional things at lower In a world of abundant information, the need cost – and with around 2,000 fewer employees for trusted information has never been greater. than thirty years ago. We have achieved this by Despite the ABC’s declining funding and continuously looking for ways to improve the efficiency initiatives, we have invested wisely to way we work. ensure that that the ABC continues to maintain In the last five years alone, working smarter very high levels of trust and quality. has allowed us to invest an additional $70 million More than 80% of Australians trust the ABC, into new programs, services and platforms, while compared to average trust of 57% for also returning $254 million back to government. commercial media. 2 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018 In 1987 In 2017 the ABC cost 19.2 cents per the ABC cost 9.7 cents per person per day (2017 value) person per day and delivers... and delivered... TV 105.7 FM 2JJJ SYNDEYSYDNEY RADIO And more... PODCASTS AUDIO 3RD PLATFORMS PARTY SOCIAL PLATFORMS No digital services PLATFORMS DIGITAL And more... 6,092 EMPLOYEES 4,097 Full-time equivalent Employees Full-time equivalent Employees Funding declining in real terms ABC Operational Revenue from Government incl Capital Indexed at 2016/17 levels - December 2016, six months CPI Index - 28% reduction from 85/86 to 17/18 1250 $1,201 1200 1150 1100 1050 1000 $865 950 900 $ Millions 850 800 750 700 650 600 11/12 10/11 17/18 13/14 14/15 16/17 12/13 15/16 91/92 87/88 90/91 01/02 97/98 86/87 00/01 09/10 07/08 96/97 93/94 94/95 85/86 88/89 92/93 95/96 98/99 06/07 03/04 04/05 89/90 02/03 05/06 08/09 99/00 Years The funding that the ABC has available to make content has declined by 28 per cent or $336 million in real terms since the mid 1980s ABC cost per person per day – 1987 v 2017 20 19.2 15 9.7 10 Cents 8.0 5 0 1987 Funding Adjusted for inflation Actual 2017 funding per capita * Excludes orchestras, transmission and distribution CPI based on ABS calculator - June 1987 and June 2017 Data sourced from the 2016/17 Annual Report The decline in real funding combined with population growth means that the ABC now costs half as much per person compared to 30 years ago 4 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018 Per capita funding for public broadcasters, 2014* A$ per inhabitant 0 50 100 150 200 Norway 179 Switzerland 178 Germany 142 Denmark 127 Sweden 126 Finland 124 United Kingdom 114 Austria 101 France 73 Country Belgium 69 Ireland 57 Average = 86 Australia 57 Australia Spain 54 Australia invests 34 per Japan 54 cent less per person in Italy 38 public broadcasting than Canada 29 the average of comparable New Zealand 17 democracies United States 3 Source: Nordicity analysis of the annual reports of public broadcasters * Excludes any commercial revenue earned by public broadcasters Note: Australia includes ABC and SBS combined Commercial revenues and per capita funding for public broadcasters, 2014 A$ per inhabitant 0 50 100 150 200 250 300 350 400 Norway 179 179 359 Switzerland 178 61 239 United Kingdom 114 57 170 Germany 142 23 165 Austria 101 38 138 Denmark 127 124 Finland 127 1273 Sweden 126 126 Ireland 57 48 105 Country Belgium 69 9930 Many international public France 73 15 88 broadcasters supplement Average = 118 New Zealand 17 69 86 their income through Australia 57 9 66 commercial activity such Japan 54 9 63 as advertising. The ABC Italy 38 18 56 does not take advertising Spain 54 551 on its domestic services Canada 462917 United States 3 4 7 Per Capita Funding Per Capita Commercial Revenue Source: Nordicity analysis of the annual reports of public broadcasters Note: Australia includes ABC and SBS combined 5 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018 ABC Funding Comparison The ABC serves a population one-third the size of the UK but does so with a total income one-eighth the size of the BBC. $8.6bn $1.1bn (£5.0bn) Source: 2016/17 Annual Report Source: 2016/17 Annual Report Exchange rate: 0.5778, 16 Jan 2018 6 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018 ABC Open @Clare_Chris Focused on Efficiency ABC Open Cumulative ABC Budget Cuts/Savings - 2014 -15 to 2018-19 120 Cumulative Budget Cuts $254m $108m Cumulative Content $70m 100 Reinvestment Cumulative $86m 30 Total $324m 80 $71m 20 ($M) 60 $47m 78 40 17 71 66 20 $12m 30 3 9 0 2014/15 2015/16 2016/17 2017/18 2018/19 Content Reinvestment Budget Cuts Over the last decade the ABC has undertaken Savings by the ABC have allowed us to meet the several substantial reviews and transformation rising expectations of audiences for high quality programs to improve efficiency and provide content and services. Australians with greater content and services. The ABC has found efficiencies beyond those We have achieved savings by cutting management required to meet more than $200 million in positions and back office expenses. We have also Government funding cuts. These funds have reduced the cost of transmitting and distributing been reinvested in regional journalism as well our broadcasting signal. as the creation of Arts, Science and Education content. More innovative and distinctive content Accumulated savings over the 2014/15 to 2018/19 is on the way. period total $324 million. More than three quarters has been handed back to government, while $70 million has been reinvested in new content for audiences. 7 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018 ABC delivers value for money By working more effectively with the independent The first two series of House of Cards reportedly sector the ABC is able to drive its investment cost in the order of AUD$125 million to produce. further to produce significant volume while For the same money the ABC produced 50 maintaining its reputation for quality. Australian programs, including 24 drama series. $125M looks like: House of Cards 22 hours of content over two series ABC 277 hours of commissioned Australian content 50 Australian programs (including 24 drama series) 8 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018 Trusted by Australians of Australians No Australian media 83% value their ABC organisation is more trusted, valued and of Australians trust the 82% information provided distinctive than by the ABC the ABC of Australians believe 89% the quality of ABC online services are good of Australians believe of Australians that ABC Television believe the quality 81% provides good quality 72% of programming on programming ABC Radio is good Charter Performance of people regard the ABC as of people believe the distinctively Australian and ABC reflects the cultural 78% contributing to Australia’s 78% diversity of the Australian national identity community of people consider the ABC of people consider the encourages and promotes ABC achieves a good 76% Australian performing arts 75% balance between such as music and drama programs of wide appeal and specialised interest of people consider the ABC provides programs 82% of an educational nature 9 AUSTRALIAN BROADCASTING CORPORATION EFFICIENCY PAPER 2018 ABC NEWS Trust Survey Survey question: For the following media institutions and information providers, please indicate whether you tend to trust the information that they provide.
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