The Guardian 22 March, 2006
Media monopolies set for takeover frenzy
Anna Pha
The Howard Government has announced plans to tear up the foreign media ownership rules and the cross media ownership regulations covering radio, television and newspapers. These were the last barriers to media moguls Rupert Murdoch and the late Kerry Packer (his son James now at the helm) obtaining monopoly control over these outlets. The few remaining "restrictions" on media owners in the changes introduced last week by federal Communications Minister Helen Coonan, are little more than window dressing.
This will leave the way open for the take over of the other major player in print media, Fairfax Ltd by a Packer or Murdoch controlled group or by one of the foreign media conglomerates that have their eyes on Australia.
The proposed rules say that there must be at least five media groups in capital cities and four in regional areas and that no one proprietor will be able to have more than a 75 percent national reach with television.
This is not about competition or giving the public more choice. The aim is monopolisation and mammoth profit-gouging. Coonan is not prepared to issue a fourth commercial or public free-to-air TV licence. That would lead to a dilution of profits.
The lifting of cross-ownership restrictions means that Packer, Murdoch and others will be allowed to simultaneously exercise control of newspapers, two radio stations and a TV channel, in the same region or city. At present they are restricted to one of TV, radio or newspaper in each market area.
The Packer empire already controls Nine’s TV Network stations in three capital cities, and owns Australian Consolidated Press which produces 60 magazines. Packer may sell off Nine to a foreign investor and concentrate more on his casinos.
Murdoch already controls 70 percent of the metropolitan newspaper market, and also has suburban newspapers, 50 percent of Fox Sports and 25 percent of Foxtel.
Seven TV Network operates in five capital cities, publishes magazines and has gone into partnership with Yahoo to form Yahoo!7 amongst other interests.
The Ten TV network operates in five capital cities, owns the advertising outlet Eye Corp. Its major shareholder is CanWest.
Fairfax has three major dailies, magazines, suburban newspapers, and an online auctioning site.
Metro Newspapers (based in WA), DMG Radio Australia, APN News & Media, Austereo Group, Southern Cross Broadcasting, Prime TV, Rural Press, WIN are other key commercial players covering regional TV, radio and newspapers.
Pearsons, the owner of the UK Financial Times; John Malone’s Liberty which controls Austar; UK media group Granada which has a stake in Seven; and several Asian media companies are among those lurking in the wings, waiting for restrictions on foreign ownership to be lifted.
The changes could unleash a mania in takeovers and possibly several mergers — all resulting in far fewer media owners and increased concentration of control across all sectors. This is the outcome that the media moguls have spent decades lobbying for.
Previously the political risks involved with such an unpopular move forced governments to hold back, but now with control of the Senate, the Government sees it as time to move.
The policy proposals were announced by the Minister in an address to the Committee for Economic Development of Australia (CEDA) — a highly influential right-wing think tank. The venue reflects the input of the corporate role in developing the policy and who stands to benefit from the changes.
Public interest not served
From the public’s perspective, there will be even fewer choices. Every one of these commercial outlets can be guaranteed to be looking after other corporate interests, pressuring governments, manipulating public opinion. The Howard Government, already unaccountable to the public, will be given an absolutely free hand as their media mates spruke their line, promoting war, attacking trade unions, supporting the dismantling of the welfare system and all the other destructive policies being implemented by the Government.
The only relief and real choice will come from the ABC and SBS public broadcasters, and a few community radio stations and TV channels. Small independent publications such as The Guardian, will continue to struggle without advertising dollars, just relying on its readers.
The likes of the Ten and Seven Networks, John Fairfax Holdings, West Australian Newspapers and Southern Cross Broadcasting will be targeted by Murdoch and Packer in a frenzy of takeovers.
The anti-siphoning measures that protect free-to-air television sports coverage and other events will be weakened.
Going digital
Analog free-to-air broadcasting will be replaced by digital transmission by 2012. Digital offers three uses: improving image quality (e.g. high density TV — HDTV), greater quantity such as multi-channeling, and new services such as data casting.
For media outlets competing for advertising dollars, the higher concentration of radio, television and print media will be of assistance. But they face a new and uncertain future as they compete with or become involved in new forms of media and communication. The internet is attracting millions of advertising dollars and users.
By the year 2012, it is hard to imagine what the media scene will look like. There will be the converging of technologies, e.g. TV on mobile phones, downloading of programs on computers, involvement of print, radio and television outlets on the internet, and other new forms of media (advances on the current podcasting, for example) and methods of delivery.
In Australia the uptake of digital TV has been slower than the government hoped for, but in other areas such as broadband, MP3 players and 3G mobile phones it is quite rapid. It is difficult for an older person to keep up with the new names and technologies!
The internet is posing new opportunities and problems for recording and film companies and distributors as people download music and films from the internet.
Sky News Australia (News Corp), Publishing and Broadcasting Ltd, Fairfax, News Ltd and the ABC control the most popular internet news services. At this stage the ABC does not carry advertisements, but the Howard Government has plans to change that!
The new technologies have so much exciting potential, to provide variety, to offer people a wide range of news, views, entertainment, culture, education and other material. But diversity is not where it is heading.
With increased concentration of control and ownership, and with the driving motive being the accumulation of private profits, people’s needs come a very poor second. This contradiction will remain so long as they remain in private, for-profit hands.
The government has issued a discussion paper and the closing date for submissions is April 18.