Scotty
David Codey (61)
This one is really scary. The government essentially giving money to the tv networks in an election year? Wow, where are we, Italy?
'Hey big media outlets, I'll give you some more money if you make sure I get a lot of positive coverage this year.'
http://www.theaustralian.com.au/business/media/ruddsbr250mbrlifts-tvbrprofits/story-e6frg996-1225828506347
This decision needs to be scrutinized further.
'Hey big media outlets, I'll give you some more money if you make sure I get a lot of positive coverage this year.'
http://www.theaustralian.com.au/business/media/ruddsbr250mbrlifts-tvbrprofits/story-e6frg996-1225828506347
THE $250 million handout from the Rudd government to Australia's television oligarchy will flow almost directly to the profits of the networks' owners because there are no conditions that it be used for local content.
The decision to slash the licence fees paid by the commercial networks to the government, which was made just weeks after a series of meetings between television bosses and the government, including one with Kevin Rudd just before Christmas, yesterday drew fire from critics who questioned the policy of handouts to powerful TV networks in an election year.
The Australian has learned that equity investors, banks and private equity firms with exposure to networks Seven, Nine and Ten are being told the decision to slash the licence fees will "go straight to the bottom line". These networks have since watched their fortunes rise in the market over the past few days.
The rebates have frustrated other media players who believe that commercial networks already receive assistance in the form of the anti-siphoning sports list - which gives free-to-air networks the first right to bid for sports such as Australian football and cricket - and an undertaking to block a rival fourth commercial television network.
"This appears as just another handout on top of the protections the free-to-air networks already enjoy," Foxtel chief executive Kim Williams said.
"In an act of breathtaking indifference to the announcement, major metropolitan networks are now briefing analysts in the investment community that the full tax handout will drop directly to their bottom line with no deductions, despite the government saying the tax break is needed to protect local Australian production."
Michael Fraser, director of communications law at the University of Technology, Sydney, questioned what was behind the policy announcement. "The Prime Minister has been saying they do evidence-based policy but it doesn't appear the (television) stations are required to do anything," he said.
A spokeswoman for Senator Conroy would not answer direct questions about why there were no conditions attached to the rebates regarding local content production. "This is an important interim measure to protect Australian content while the media landscape is changing, and as we make the switch to digital television," she said.
This decision needs to be scrutinized further.