Rebates for news bulletins? TV execs push for journalism offset

2 weeks ago 3

Australia’s commercial television networks are pushing for rebates for producing news bulletins as compensation for losing millions in revenue if the federal government slashes the number of gambling ads that can be shown on screen.

The proposal is part of a suite of measures the television industry is pitching to Prime Minister Anthony Albanese and Communications Minister Anika Wells in Canberra on Tuesday in a presentation urging government action to protect the medium in the face of challenges from major technology firms.

TV executives say an offset of some of the cost of producing news bulletins would go some way to making up for the potential loss of millions of dollars in revenue should the government act on curtailing ads from wagering firms.

A ban on gambling ads would have the most severe repercussions for the broadcasters of the Aussie Rules and rugby league, including Seven Network, Nine and Foxtel.

The networks are also urging the Albanese government to stare down US President Donald Trump and push ahead with plans to force global tech firms to compensate media companies as part of the News Bargaining Incentive.

The proposed rebate was put forward by FreeTV Australia, which lobbies for the industry on behalf of Nine (owner of this masthead), Ten, Seven Network, regional broadcaster WIN, and Aboriginal-owned network Imparja.

It would function similarly to existing offsets for drama and documentary productions. Currently, a 30 per cent expenditure rebate exists for local drama productions and there is a 40 per cent rebate on feature films. Further details on how the news offset would function remain unclear.

Almost 80 per cent of Australians say they’re being exposed to betting advertising every week.

The media companies are also pushing to remove the annual commercial broadcast tax, which costs television companies about $55 million each year.

The proposal is a step towards a compromise on the long-delayed gambling advertising policy, which has been under consideration for more than two years since the late Labor MP Peta Murphy’s report into the industry recommended a blanket ban on ads from wagering firms in mid-2023.

In the year before the Murphy report was tabled, online gambling firms spent $239 million on advertising on free-to-air television, radio and online. More than one million gambling ads were shown between May 2022 and April 2023.

While the government continues to deliberate on an ad ban, wagering firms have pulled back on ad spend on their own accord. Free-to-air television networks now receive about half of the $162 million they netted a year before the report was published, a media source with knowledge of the figures and not authorised to speak publicly said.

FreeTV chief Bridget Fair urged the government to implement the right policy to protect the future of free television for viewers.

“As Australians cut household budgets, there is one line item that won’t change; the zero cost of free TV,” Fair said.

Wells took over the brief from Michelle Rowland following Labor’s landslide victory in May, while retaining her existing Sports portfolio.

Last week, Australian cricketer Usman Khawaja met with Albanese to discuss gambling’s influence in sport, reviving the topic publicly for the first time since the election.

Australian cricketer Usman Khawaja had a meeting with Prime Minister Anthony Albanese to discuss gambling’s influence in sport.

Labor shelved its proposed cuts to online gambling ads, and caps on ads on broadcast TV and radio ahead of the election after significant pushback from the AFL and the NRL and the array of media companies that benefit from the millions of dollars those firms spend.

Media companies warned of the potential damage inflicted on their ability to produce news and content for the public, while the sporting codes flagged the threats to grassroots sport without the ad revenue they have become so reliant on.

The government’s approach to the policy had cast doubt over any significant movement coming before the end of the year, this masthead reported last week.

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