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Convergence Review Final Report Convergence Review Convergence Review Final Report Convergence Review Final Report March 2012 © Commonwealth of Australia 2012 ISBN: 978-0-642-75430-1 (PDF) 978-0-642-75431-8 (doc) 978-0-642-75432-5 (print) The Convergence Review Final Report is protected by copyright. With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material included this report is licensed under a Creative Commons Attribution 3.0 Australia licence (http://creativecommons.org/licenses/by/3.0/au). The details of the relevant licence conditions are available on the Creative Commons website, as is the full legal code for CC BY 3.0 AU licence (http://creativecommons.org/licenses/by/3.0/au/legalcode). The document must be attributed as the Convergence Review: Final Report. Using the Commonwealth Coat of Arms The terms of use for the Coat of Arms are available from www.itsanhonour.gov.au. Other use The use of any material in this report in a way not permitted or otherwise allowed under the Copyright Act 1968 may be an infringement of copyright. Where you wish to use the material in this report in a way that is beyond the scope of the terms of use that apply to it, you must lodge a request for further authorisation with the department. Authorisation Please address requests and inquiries concerning further authorisation to: Department of Broadband, Communications and the Digital Economy PO Box 2154 Canberra ACT 2601 [email protected] © Commonwealth of Australia 2012 ISBN: 978-0-642-75430-1 (PDF) 978-0-642-75431-8 (doc) 978-0-642-75432-5 (print) The Convergence Review Final Report is protected by copyright. With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material included this report is licensed under a Creative Commons Attribution 3.0 Australia licence (http://creativecommons.org/licenses/by/3.0/au). The details of the relevant licence conditions are available on the Creative Commons website, as is the full legal code for CC BY 3.0 AU licence (http://creativecommons.org/licenses/by/3.0/au/legalcode). The document must be attributed as the Convergence Review: Final Report. Using the Commonwealth Coat of Arms The terms of use for the Coat of Arms are available from www.itsanhonour.gov.au. Other use The use of any material in this report in a way not permitted or otherwise allowed under the Copyright Act 1968 may be an infringement of copyright. Where you wish to use the material in this report in a way that is beyond the scope of the terms of use that apply to it, you must lodge a request for further authorisation with the department. Authorisation Please address requests and inquiries concerning further authorisation to: Department of Broadband, Communications and the Digital Economy PO Box 2154 Canberra ACT 2601 [email protected] Contents Letter of transmittal ......................................................................................................................................................................................iii Executive summary .................................................................................................................................................................................... vii 1. The need for a new approach .......................................................................................................................................................1 2. Media ownership ............................................................................................................................................................................. 18 3. Content-related competition issues ......................................................................................................................................... 28 4. Content standards ............................................................................................................................................................................ 37 5. Australian content: screen ........................................................................................................................................................... 59 6. Australian content: radio ............................................................................................................................................................... 76 7. Local content: television and radio .......................................................................................................................................... 79 8. Public and community broadcasting......................................................................................................................................84 9. Spectrum allocation and management .................................................................................................................................88 10. Implementing the new approach ........................................................................................................................................... 102 Appendixes A: Terms of reference ...................................................................................................................................................................110 B: Review process .........................................................................................................................................................................111 C: List of submissions ...................................................................................................................................................................112 D: Establishing the new communications regulator ......................................................................................................117 E: Competition regulation in communications markets: international approaches ...................................... 123 F: Executive summary of the ALRC National Classification Scheme review ................................................... 128 G: Report on review of Schedule 7 of the Broadcasting Services Act ............................................................... 135 H: Executive summary of the Independent Inquiry into the Media and Media Regulation .................... 150 I: Independent Media Inquiry and Convergence Review approaches to news standards ....................... 153 J: ABC and SBS charters ...........................................................................................................................................................157 K: Redundant regulation ............................................................................................................................................................ 159 Abbreviations and acronyms ..............................................................................................................................................................173 Glossary ........................................................................................................................................................................................................174 v Executive summary Introduction Australia’s media landscape is changing rapidly. Today Australians have access to a greater range of communications and media services than ever before. Developments in technology and increasing broadband speeds have led to the emergence of innovative services not previously imagined. It is now possible to access traditional communications and broadcasting services in new ways, such as radio and television delivered over the internet. Users are increasingly at the centre of content service delivery. They are creating their own content and uploading it to social media platforms. They are controlling what content they want to view and when they want to view it, for example, through podcasts of popular radio programs and catch-up television services provided by free-to-air networks. Despite these dramatic changes, Australia’s policy and regulatory framework for content services is still focused on the traditional structures of the 1990s—broadcasting and telecommunications. The distinction between these categories has become increasingly blurred and these regulatory frameworks have outlived their original purpose. These frameworks now run the risk of inhibiting the evolution of communications and media services. Convergence presents significant opportunities but also potential threats for traditional media, creating a need to transform both business and delivery models to keep up with changes in user behaviour. Australia’s creative industries are well positioned to seize the opportunities offered by this new environment, and to ensure the development of our digital economy. Australian industry can expand our traditional screen businesses and develop excellence in emerging areas like smartphone and tablet apps. These industries can flourish in a converged environment that opens up new trade opportunities and cultural interactions with the rest of the world, where global distribution is virtually free. A new policy and regulatory framework is needed to support these outcomes. The Convergence Review The Convergence Review Committee was established in early 2011 to examine the operation of media and communications regulation in Australia and assess its effectiveness in achieving appropriate policy objectives for the convergent era. The terms of reference for the Review covered a broad range of issues, including media ownership laws, media content standards, the ongoing
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