Will Labor's media reforms run out of time before the election?
Will Labor's media reforms run out of time before the election?
Welcome to a midweek update from Unmade. Today: After the fire and fury of the proposed ban on betting ads alongside other media regulation changes, is it possible that the whole thing will fizzle out?
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Too much to do on media reform and not enough time
There are few areas of public policy that are more complicated to navigate than media regulation.
In the 18 years I’ve been covering the media beat in Australia, there has been no moment when media owners haven’t been complaining that the legislation is out of date. When it does get amended, it takes longer than expected and even as it passes, the consensus is always that more is required.
Most memorably, in 2013 Labor’s communications minister Stephen Conroy left his push for widespread media reforms too late. It was the worst of both worlds for Labor. They went to war with News Corp and ran out of time to get the legislation locked in before losing power to Tony Abbott.
It’s shaping up that the pattern is about to repeat itself.
Across the House and the Senate, Parliament has only 23 sitting days left this side of Christmas. If 2025 follows the same pattern as 2024, there will be at most 18 more sitting days next year before a likely May election. Across all its portfolios, the government has more in the pipeline than can possibly be legislated in that best case of just 41 sitting days.
The major factor behind the continuous lag in media regulation is the fact that it’s a complex area, and being disrupted faster than rules can be rewritten.
Almost as significant though is the politics. The actual public interest is often the part that gets squeezed between the lobbyists and political expediency.
The television networks in particular have been really good at lobbying for their own interests via Free TV Australia, particularly when those of each member company align. Radio less so recently. The audio sector’s failure to get what it wanted from due prominence legislation was one factor behind the abrupt departure of Commercial Radio and Audio CEO Ford Ennals, to be replaced by the more Canberra-savvy Lizzie Young.
The networks have often successfully argued that when it comes to the hot topic of free to air sport, they are in lock step with the public. While it’s true that the public prefer their sport not to be behind a paywall, the anti-siphoning legislation has never fully protected that - the TV networks can do deals with paywall partners that gets them their content at a discount while still leaving diehard fans needing to pay anyway. That’s not what the public wants.
The major item currently on the government’s to-do list is tackling Australia’s gambling addiction. The public interest side of the argument is relatively clear. Every survey shows that the public thinks there are too many betting ads.
But if the government legislates along the lines recommended by the Parliamentary Inquiry Into Online Gambling and Its Impacts on those Experiencing Gambling Harm, the short term impact will be damaging for the TV networks who have, though their lobbying efforts, successfully persuaded Labor that they are in “diabolical” trouble.
I say short term because in the long term, the market will reset; in the next rounds of sports rights negotiations, networks will be able to bid less because if they factor in less betting advertising in the future.
There are two ways to see the situation the government finds itself in over betting ads reform. If it actually legislates, it will infuriate the TV networks if they don’t get the carve outs they’ve been looking for. Those who broadcast 6pm bulletins are powerful enemies to make in the run up to an election. But Labor will infuriate the public if it caves in to Australia’s media owners.
So the temptation is to let it drift until the election. Neither dead or alive, it’s Schrodinger’s legislation. The threat of the legislation is also a handy weapon. While the networks wait to see which way the government jumps, it’s less likely that any of them will take a harsh editorial line.
That realpolitik may also be behind the growing delay in a decision from Treasury minister Stephen Jones on whether to designate Meta under the News Media Bargaining Code. The big local players want designation so they can force their way into arbitration and potentially see Meta leave the country if things don’t go its way. But on the other side, those publishers who do not currently have Meta deals and fear the loss of traffic also have loud voices.
Again, doing nothing may the smart political move, albeit not the one that serves the public interest.
Another reform which is currently hovering just off the agenda is the ownership rules, which protect the minimum number of individual media voices in markets. Depending what plays out in the dance between Southern Cross Austereo, ARN Media, Australian Community Media, Nine, WIN and Seven West Media, there could be yet another round of suddenly urgent lobbying if the rules block potential deals. The argument that the rise of the global platforms make such rules archaic is stronger every year. Perhaps it’s time that the only test around deals should be one for the Australian Competition and Consumer Commission to consider competition in a given market.
Alongside this comes the possibility of a much bigger move: Introducing an advertising levy on the digital platforms. Unlike designation, that would require new legislation.
Timing is even more tricky here. The window is closing to get something before Parliament. And November’s US election is another dimension. If the platforms turn a digital levy into a free trade issue, it could become an issue in US politics which could kill the policy, if it even emerges in the first place.
Instead, the window for announcing a levy might be after the US polls close. That would likely make it too late to legislate during this Australian Parliament (unless there was bipartisan support). Which might suit Labor just fine. Going into the next election with a policy that every major local media player would be keen upon would be smart politics.
Not, by the way, that Labor accepts the premise of my argument. A spokesman for communications minister Michelle Rowland offers the following comment:
“The Albanese Government values a diverse media sector, which plays an important role in keeping Australians informed and supporting our democracy.
“Since coming to Government, we have delivered significant legislative reforms and support measures as part of our broader media reform agenda.
“These measures provide much-needed stability for the media sector, which serves communities across Australia every day.
“But there is more to do, and we will have more to say in due course as we work in an evidence-based and consultative manner to progress reform on a range of fronts.”
The words “due course“ are doing a lot of heavy lifting there.
In fairness, Rowland has got stuff done.
Most notably was the Communications Legislation Amendment which dealt with due prominence and anti-siphoning (and pissed off the networks by declining to give them a matching sweetheart deal over streaming).
Labor also helped (slightly) depoliticise ABC and SBS funding by switching them to five year funding rounds.
That’s the thing about the media portfolio though. There’s always more to do.
ARN and SCA stock retreat after price spike
The Unmade Index had another day of fluctuation on Tuesday without any clear direction.
Southern Cross Austereo and ARN Media both gave back some of Monday’s big jumps, yesterday losing 2.7% and 1.7% respectively.
Meanwhile Seven West Media rose by 6.3%.
Nine, the biggest local stock to be included in the Unmade Index weighting, lost 1.1%.
The Unmade Index closed on 462.9 points, up by 0.56% for the day.
Time to leave you to your Wednesday.
By the time you get this, I’ll be boarding a flight to Sydney for tonight’s Ooh Media Outfronts (more on that tomorrow). Upfronts season is officially here.
Have a great day
Toodlepip…
Tim Burrowes
Publisher - Unmade
tim@unmade.media
I don’t envy Rowland’s job, but would love to see some ambition in media policy… it always just seems to be reactive.
Great piece Tim. Particularly love Schrodinger's Legislation - is that an original? I always feel quite naive when I read your political analysis!