2.1
This chapter sets out an overview of defining and accessing regional news, the role that large publishers have had on regional newspapers; the decline of print newspapers in regional areas; the emergence of hyper-local news providers; evolution of media ownership in regional areas; and tracking and mapping access to regional news.
Defining regional news
2.2
A key issue in understanding the state of regional newspapers is defining a ‘regional’ area and what can then be categorised a ‘regional newspaper.’
2.3
In the existing definition in the Broadcasting Services Act 1992 (Cth) (Broadcasting Act), ‘regional’ is defined in relation to commercial radio broadcasting licence areas, and essentially includes any area outside of central Sydney, Melbourne, Brisbane, Perth, Adelaide and Sydney’s Western Suburbs. This definition is currently used by the Australian Communications and Media Authority (ACMA) to maintain their Associated Newspaper Register.
2.4
When undertaking its Digital Platforms Inquiry, the Australian Competition and Consumer Commission (ACCC) did not specifically look at the definition of ‘regional’ or ‘metropolitan’, but ‘took the local government areas as broadly the basis of understanding the distinction between regional and metropolitan.’ The ACMA also noted that for the purposes of the News Media and Digital Platforms Mandatory Bargaining Code (the Code) there is no explicit definition of ‘regional news’ or ‘regional area’. Some submitters raised further concerns that the terms of reference did not define ‘regional newspaper’ for this inquiry.
2.5
Questions were raised regarding whether the existing criteria is fit for purpose and still relevant in an industry that has experienced major changes over the past decade—in particular, since the emergence of COVID-19 in 2020. The Department of Infrastructure, Transport, Regional Development and Communications (the Department) has examined alternatives, and noted industry concerns around the use of the existing definition of ‘regional’ under the Broadcasting Act for unrelated purposes, such as the Code:
We’ve had some feedback from publishers saying: ‘Well, why are you using radio licence areas? We don’t operate radios.’ So we’re looking at alternatives at the moment, but it will be a ‘regional’ definition.
2.6
The Local News Innovation Project argued that there is a ‘need to return to definitions that align with geography more so than the idea of the local’, considering the idea of ‘local’ to be a ‘very slippery concept’. The lack of parameters around what can be considered ‘regional’ or ‘local’ news is further complicated by a lack of core sector data on Australian print media.
2.7
Further, the Judith Neilson Institute for Journalism and Ideas (JNI) said that the sector requires support to define what the difference is between hyper-local news media and regional news media. They highlighted a disagreement in the industry in defining which category news organisations should fall into.
2.8
One difficulty in defining regional news and categorising regional news providers is a lack of data to inform these categories. Communications reports released by the ACMA in 2017-18 and 2018-19 gave an overview of communications and media in Australia, however when the statutory obligation for the ACMA to release this report ceased, publication of the report also ceased. The Department also noted issues with the collection of government data, commenting that ‘if someone is about to go out of business or if there is a new startup, they don't have to notify the government that this is happening.’
2.9
The Public Interest Journalism Initiative (PIJI) ‘strongly supports a better understanding of news production and availability across all regions of Australia’, noting that beyond existing government sources, ‘other databases exist but are also out of date or incomplete.’ The challenge of tracking and mapping access to regional news is explored later in this Chapter.
Accessing news in regional areas
2.10
Regional newspapers are vital for regional and remote areas of Australia in providing not only up-to-date news but also valuable community-based information, and community connection. Newspaper closures have led to a decline in both information and a sense of belonging for local news consumers, particularly in smaller Local Government Areas (LGAs). The Community Broadcasting Association of Australia (CBAA) said the loss of regional newspapers ‘means that important community issues are going unreported’.
2.11
Community radio broadcasting and television, along with news media in both print and digital are vital in providing localised news services to communities across Australia, particularly in regional and remote areas. Local media provides a range of relevant information concerning access to social services, delivering weather warnings, and providing information about community developments.
2.12
Inquiry participants have highlighted the importance of advocating and supporting diversity within the sector. CBAA commented on the important role community broadcasters play in providing a voice for communities in regional and remote Australia and for first nations communities, culturally and linguistically diverse communities, faith based communities, youth and seniors communities, the LGBTQIA+ community, people with a disability, and diverse arts and music communities.
2.13
Media Entertainment and Arts Alliance (MEAA) commented that over the past two years the regional and rural job loss of the newspaper industry mostly occurred at News Corp Australia and Australian Community Media (ACM):
…occurred at two companies: NewsCorp and Australian Community Media, although it is plainly the case that a range of longstanding independent news companies have also shed jobs and either rationalised or ceased production.
2.14
MEAA said that these closures have reduced access to information, especially for the broader community which has left areas without coverage of important news. Of the 182 contractions in the past two years (for example, mastheads or newsroom closures, suspension of services), 68 per cent were in regional Australia.
2.15
According to the University of Canberra’s News and Media Research Centre (NMRC, UC), the Local News Consumers report shows that one in five regional Australians have encountered a closure or merger of a news service in their area in the past five years. Those who experienced local news closures in their community reported a decrease in information about their community (46 per cent), and a reduced sense of belonging (23 per cent).
2.16
The study also suggested there:
…was a significant [difference] between those who did not experience news closure and those who did in their satisfaction of the quality and depth of news (81% vs 69%), which indicates the impact of news closures on the information quality that regional consumers have access to.
2.17
The Local News Consumers report suggested that newspaper closures had resulted in a decrease in information about their community:
Closures of local news outlets have had a greater impact on smaller regional communities. Two-thirds (67%) of those who live in LGAs with populations less than 30,000 people said there was a decrease in information about the local community and 33% said they had fewer topics to share with friends. Losing a news outlet, where there are few news services will affect the community more, as they have fewer alternatives.
2.18
Dr Olav Muurlink, Publisher, Small Newspaper Company, Queensland said that the result of the loss of newspapers is also the loss of social capital. He suggested that news titles are what fill the gap in rural communities because they enable the advertising of events, births, deaths and marriages.
2.19
NMRC, UC’s study of regional journalists, Australian Regional Journalists: What they need and how they see the future, found that not only are regional communities experiencing the impact of the financial downturn in journalism but that reporters and editors are facing pressure with diminishing resources, increased production demands, and growing job insecurity:
Between October 2019 and February 2020, we conducted a survey of 307 regional journalists across all platforms and interviewed 31. Half of the respondents (51 per cent) said the pressure of commercial sustainability had got worse over the past five years, 20 per cent said it remained the same, and 29 per cent said it had lessened. This was most keenly felt by print (51 per cent) and online (52 per cent) journalists compared to 47 per cent of TV and 38 per cent of radio.
2.20
Further NMRC, UC’s study of regional journalists found that communities also lose ‘local champions’ in its reporters that not only advocate for them but also ‘monitor and scrutinise political and business leaders’.
2.21
While regional newspaper print is decreasing, Journalism Education and Research Association of Australia (JERAA) commented that print is dominant in regional areas due to its accessibility and appeal to a wide audience:
…[print] remains a dominant medium in regional areas, partly because of established buying habits, partly because newspapers retain currency for longer in news markets where they are printed weekly or bi-weekly rather than daily, and partly because they are accessible and/or appealing to a wide audience. For example, the generally older demographic mix in regional areas means that many people may not be comfortable operating in the online environment. And many areas of regional and remote Australia have limited – or very slow – internet access. Most importantly, audiences perceive a link between their local paper and a sense of community belonging.
2.22
The loss of newspapers has left people of the community without access to news. For some, the lack of available news in print forced them online, however those without access to technology or computer literacy left them with no news source. The Committee’s online survey indicated that approximately one quarter of respondents did not receive, or were unable to access, news that was important to their community. Today News Group said those that had experienced the worst effects were those without the resources to access online news.
2.23
Professor Sora Park from NRMC, UC said that interest in regional areas is declining:
…and people are disengaging more with news than people in urban areas. That's possibly because regional consumers have less relevant news delivered to them. It's a vicious circle. You don't get high-quality, localised, relevant news, so you don't consume it, and therefore you're less likely to pay for it and less likely to consume news. So, I think it's a vicious circle with quality and relevance.
2.24
The CBAA said there was strong need for local news and information, particularly in regional and remote communities:
It is well documented that audiences feel they cannot receive localised or community-specific information from other media sources. Local community media provides content that caters to the needs and interests of local communities and is vital to the health and wellbeing of those communities.
2.25
NMRC, UC said in the absence of a strong local news source, regional consumers turn to social media to fill the gap. Those who experienced local news closures were much more likely to access news via social media sites (27 per cent) compared to those who had not experienced closures (16 per cent).
2.26
One of the concerns as expressed by Ms Keer Moriarty, Director of Scenic Rim Media was that community based social media pages are not being regulated. Accurate information and news were dependent on who the administrators are:
The problem is that there aren't those checks and balances, there isn't the regulation with it, so it can also be a source of misinformation. It really just depends on who's running those pages.
2.27
However, Meta (Facebook) said that the shift from print to digital advertising has resulted in greater accessibility to audiences and that:
…publishers have control over whether their content – mostly links back to their own websites – is available on our platform, and they can choose not to distribute content on Facebook if they believe these benefits are not sufficient.
2.28
Mr Joe Italiano, Publisher of the Collie River Valley Bulletin said even where there is an online social media presence, the trusted source of news is still local news publications over television or radio.
2.29
Dr Kristy Hess, Professor of Communication at Deakin University said that results from a national survey of local newspaper audiences across Australia indicated that most audiences still prefer local newspapers. Audiences are five times more likely to go directly to a local news website for their local news than to Google or Facebook.
2.30
Dr Hess highlighted the importance of embracing the digital environment as a cultural transition that would occur over time. She said that the transition to the digital environment also emphasised issues of inequality, when it comes to older individuals and those with poor digital connectivity.
The role of large publishers in regional newspapers
2.31
There were 435 regional and community newspapers operating in Australia in 2017-2018, many of which were under the ownership of three large commercial media companies: News Corp, ACM, and Seven West Media.
2.32
Prior to COVID-19, ACM owned 138 regional newspapers, more than half of which were suspended over the course of the pandemic. In 2021, ACM announced the closure of three of its four print sites.
2.33
News Corp Australia and ACM terminated printing to more than 100 local and regional newspapers. The Barcoo Independent said that terminating print services in regional areas meant that larger newspapers refused to provide papers to smaller newsagents unless they paid additional costs, and these were not delivered on-time:
Blackall for example, gets Sunday's paper on Monday. As to reading it on-line. We have 300 people aged over 60 in our community, most of who are not tech savvy and nor do they intend to be.
2.34
Further Gilgandra Newspapers, commented that they took advantage of the gaps left by ACM:
We reached out to the Bogan Shire Council (Nyngan, NSW) an hour and half west of our head office. We put in a proposal for a new newspaper, one of four independent proposals, and were chosen by the council. We began publishing The Nyngan Weekly…the paper began as 12 pages and is now 16-20 pages depending on the week.
2.35
Cape York Weekly said they had access to News Corp based in Townsville for print services. They said that if ‘News Corp were to make cuts to the print editions…then all regional newspapers in North Queensland could suffer from the fallout.’
2.36
JERAA drew attention to the newly depleted areas known as ‘news deserts’, and expressed that they had been impacted with communities missing out on opportunities for local debate and deliberation. JERAA said that ‘conventions that inform journalism, such as balance and fairness—may be absent’. Despite new media services—both newspaper and online—starting in regions, graduate journalists in regional Australia have fewer opportunities:
They have led to lower standards of journalism, fewer news media staff, uniformity of content across regions and less specific and targeted content for towns and regions – where local news and information is available at all. This results in less informed communities, and has considerable impacts on citizens’ engagement with democracy.
2.37
The McPherson Media Group said that the main impact of decisions by large publishers in regional Australia was the loss of editorial staff to other publishers.
2.38
Several submitters said that they felt ACM and News Corp abandoned regional communities. Star News Group said that News Corp had ‘dominated’ metropolitan areas and suggested that the committee consider ‘the vital communities, especially the growth areas and the impact of no media available following News Corps decision to leave.’
2.39
The MEAA expressed concern regarding the scale of the closures made by these larger publishers and commented that there was ‘abundant public interest in the company revealing how it has shed resources in regional communities’.
2.40
ACM said they ‘did not decide to abandon communities…[but] decided to save [their] business.’ They said they have been ‘fighting to keep as many of their titles open as possible’.
2.41
Public Interest Publishers Alliance (PIPA) said ACM’s treatment of communities with the decline of local content and ceasing the local paper demonstrated ‘poor performance’:
ACM was limiting community transparency into local council and the core issues communities were grappling with. Instead, ACM’s willingness to effectively pass on local council press releases was hindering community information, discussion and collaboration.
2.42
Mrs Robyn Lambley, Member for Araluen (Alice Springs), felt residents were ‘left in the dark’ and expressed that they felt there was a gaping hole in communication and dissemination of information. She said that people in Alice Springs were considering establishing a local printed newspaper, but because ‘bigger News Corp newspapers in Australia were subsidising the smaller, regional newspapers’, establishing a new publication would ‘not be viable without some assistance’.
2.43
Peninsula News said large publishers’ decisions in suspending publication of print editions has made ‘the aggregation of small community newspapers under group or national media ownership makes them susceptible to financial decisions that are not controlled by the local community’ and recommended that ‘limits should be placed on the numbers of small newspapers under the one ownership – in the same way that media ownership rules are in place for larger publications and outlets.’
2.44
The Herald Publishing Company (the Herald) expressed concern that Seven West Media holds on small businesses. Seven West Media own both of Western Australia’s major newspapers and 19 regional newspapers. These include the West Australian and the Sunday Times, and it also owns some radio stations and WA’s dominant television channel. Mr Anthony De Ceglie, Editor-in-Chief, of West Australian Newspapers said that ‘West Australian Newspapers operates as a wholly owned consolidated entity of Seven West Media. Western Australian Newspapers’ (WAN) cross-platform reach, which is the measure of its print and online audience, is about 4.5 million readers every month’. The Herald said that ‘the power 7West [sic] media has to cross promote over all its platforms is a powerful inducement for any number of advertisers against which we cannot compete.’
The decline of print newspapers in regional areas
2.45
Print media across regional Australia has declined rapidly due to the impacts of COVID-19 but, as noted, this has been an acceleration of an ongoing trend. While regional Australia has been particularly affected, the impact of COVID-19 is also being observed across the entire media industry in Australia.
2.46
Change in regional news media has impacted news accessibility as well as news production. The industry has experienced the widespread layoff of journalists, the discontinuation of regional print editions, and the consolidation of newsroom resources. In addition, there is a ‘trend towards digital delivery’, which added a layer of complication to news accessibility in regional Australia. PIJI commented that digital news access is particularly challenging for ‘vulnerable community members such as the elderly (digital literacy), disadvantaged (cost of tech access) and remote communities (where tech connectivity remains an issue).’
2.47
Paper and printing costs are also an additional strain on regional newspapers, and Country Press NSW suggested the issue required the cooperation of publishers and manufacturers. Gilgandra Newspapers said they had to source alternative printers following the closure of ACM mastheads and had to upgrade printing machinery, which was only partially funded by the Regional and Small Publishers’ Innovation Fund administered by ACMA.
2.48
A study of nearly 4,200 rural, regional and suburban newspaper readers found there was a clear link between a person’s age and a preference to access local newspaper in print. Only five per cent of younger audiences say they mostly used social media to find out about local news, while over 50 per cent of audiences of all ages said they mostly accessed local news via print.
2.49
The decline in the number of journalists in regional areas is an ongoing issue. Current estimates of journalism and editorial job losses across Australia over the past decade range from approximately 3,200 to up to 5,000 positions. Several years’ worth of data by MEAA ‘indicates that there are now fewer than 10,000 recognised journalists serving Australians across all media platforms in regional and metropolitan areas’. MEAA estimated that rural and regional news outlets across all news media now have ‘no more than 1,500 journalists’, noting that regional newspaper journalists would represent an even smaller cohort within this number.
2.50
In addition to job losses, journalists were also choosing to leave the profession early in their careers. Dr Alexandra Wake from JERAA commented:
…journalism is a young person's profession. People don't stay in journalism all that long, believe it or not, and it's particularly an issue for women. They drop out around the age of 34 in a way that's not seen in other countries. ...certainly, in terms of the number of publications that are out there, the number of actual journalists employed at each newspaper is down.
2.51
The lack of longevity is particularly concerning for regional newspapers, as noted by Dr Caroline Fisher from the NMRC, UC:
…[journalists who work for print newspapers] see that they have this responsibility to be an advocate for their local community, as well as to hold to account the local powers that be—much more so than journalists who work for the local TV or radio station, for instance.
2.52
Compounding the issue of declining numbers of regional newspaper journalists, research by NMRC, UC indicates that ‘declining print newspaper readership in regional Australia has not led to an increase in regional online news use’. The push towards digitisation of news services, forced in part by COVID‑19, has resulted in permanent changes for some regional newspapers. JERAA noted that:
Even though some of these newspapers have recommenced publication, the impacts of change continue to be felt, with reduced staffing and resources, newsroom and masthead consolidation, greater use of shared news copy and an overall reduction in capacity to provide local news.
2.53
Inquiry participants highlighted that the loss of jobs and closures of newspapers have resulted in fewer outlets covering matters of public interest and significance.
2.54
JERAA noted that major publishers – such as News Corp Australia and ACM – have terminated printing to more than 100 local and regional newspapers to:
…shift them to digital-only platforms, consolidate mastheads or close them altogether [which] has resulted in fewer journalists and a lack of diversity in media, contributing to what are known as ‘news deserts’.
2.55
Further information on news deserts can be found later in this chapter.
2.56
A report by the Reuters Institute in the United Kingdom (UK) used the example of News Corp Australia. The report described the impact of layoffs and closures by News Corp following the emergence of COVID-19 as ‘reducing the ability to inform citizens at a time of greatest need’.
2.57
To address the decline in the number of regional journalists, Country Press Australia (CPA) recommended re-instating the Small Publishers Cadetship Program from the original Regional and Small Publishers Jobs and Innovation Package, which is discussed further in Chapter 3. Deakin University recommended broader ‘support to promote, recruit, educate and retain journalists working for rural and regional Australian newsrooms’.
2.58
Following the Small Publishers Cadetship Program and later the PING program in 2020-21, the Department announced a $10 million Journalist Fund over two years ‘to support eligible regional media organisations to hire cadet journalists and to upskill existing journalists’. Announced in February 2022, $8 million of the total was dedicated to the cadetship stream, with the remaining $2 million dedicated to a training stream.
2.59
Submitters suggested that the original cadetship program could be expanded to include internships and traineeships which cover other industry areas such as graphic design and printing. Inquiry participants also suggested that the eligibility criteria used for the cadetship program and PING limited the involvement of small businesses. ACM highlighted broader issues in regional print media which may not be addressed by the existing funds and grants:
We think that having some cadets and juniors coming in is fantastic, and it's great for the business, but the road to then becoming an editor is five, six, 10 years, and whether those publications will be around for them to have that career path is more an issue, to be honest. So, again, we welcome that initiative and we love getting young people into the business, but at the moment our challenges are far more broader and longer term than that.
2.60
The Department noted that feedback received for the Cadetship Program included concerns that the program’s criteria and implementation may have excluded small publishers. Further, CPA said that government funding should be targeted towards sustainability rather than growth:
…what we now call on the government to do is to follow the recommendations of the ACCC and continue a PING-type fund that is more targeted and more specific to where it needs to go. That fund probably needs to be around sustainability firstly and then around startups and growth of new media on the second hand.
2.61
Deakin University elaborated by suggesting a focus on ‘human resources and place-based learning’ rather than concentrating grants or subsidies on transitioning to digital platforms and education for aspiring journalists. CPA commented on the recent announcement of $10 million of Government funding for a cadetship program, reinforcing Deakin University’s concerns that cadetships alone are not the whole solution:
Is it enough? I might bring up the point that it is good for the cadet part of it, but we did actually ask for other funds which would help run in tandem with that. There are other issues with our industry and our business, and giving us some funding for untrained, unskilled youngsters is a start, but there's a lot to be done as well.
2.62
Further, the impact of this cadetship program on regional newspapers and organisations such as CPA is not yet known as the criteria for eligibility is due for release by the Minister for Communications, Urban Infrastructure, Cities and the Arts in April 2022.
The emergence of hyper-local news providers
2.63
CBAA defined hyper-local as community-focused, ‘independently owned and original’ news outlets which are either print or online publishers that focus on:
…public interest news and issues of local importance, and most likely working within a particular local geography. The locality served by a hyper-local news organisation might be either regional or metropolitan.
2.64
CBAA added that hyper-local media is important to regional and remote communities in Australia:
Hyperlocal journalism provides a platform for targeted news, community information, and emergency warnings. It tells the stories that matter to local communities, advocates for them and contributes to social and community cohesiveness.
2.65
CBAA added that hyper-local organisations have filled the gap by traditional news outlets.
2.66
Over the past five years radio stations have evolved through not only ‘saving, reviving or creating local publications but also teaming up with emerging hyper-local publishers’:
…local features, event listings, sports scores and photos are already being deployed with a range of other regional newspapers to reduce costs but also to create a sense of ownership by the community…Collaboration needs to be invested in and mechanisms to encourage and support these community-based opportunities need to be explored.
2.67
JNI said that large publishers were returning to local and regional news markets and had opened roles in areas of community interest such as sports, regional and hyper-local news. In addition, new media models and technology were being launched by smaller publishers which included both new local and regional organisations.
2.68
CBAA said that at least 74 new local, regional and remote online and print news outlets had been launched since 2020 by independent or small to medium sized enterprise (SME) publishers. CBAA has partnered with JNI to develop the Local & Independent News Association (LINA). LINA is an Australian hyper-local media association formed to create a thriving hyper-local news industry and to support new publishers by providing training, networking and access to critical third-party services for hyper-local media organisations.
2.69
In addition to issues with the definition of regional news discussed above, JNI suggested that the sector would benefit from clarification on the difference between hyper-local news media and regional news media.
2.70
JNI said the local and hyper-local sector has far from disappeared, with over 500 organisations currently operating regional and local news publishing across Australia. JNI recently conducted a survey of 100 local news organisations that met their definition of hyper-local publisher and received 43 responses. Results indicated that the majority of respondents were interested in the establishment of an industry association to support their work:
88 per cent of respondents were interested in an industry association to support hyperlocal news and media organisations and the same number were interested in conferences, events and other content relevant to hyperlocal news and media organisations…[it also] identified that the most common reasons identified by individuals for founding and working in these organisations were about filling gaps in local news coverage, and having a passion for local news.
2.71
Mr Jon Bisset, Chief Executive Office of the CBAA said that it would be a challenge to help support the building of media organisations while also raising revenue and believed that one way the ‘government could help is with ways to build those business models to support local journalism.’
2.72
JNI provided more than AU$260,000 worth of grants to small local and hyper-local publishers during the initial stages of COVID-19. ‘However it became clear that this was not a long-term strategy to remedy the wider issues with the market’.
Evolution of media ownership in regional areas
2.73
As suggested above, there has been an increase in the variety of ownership structures and business models since the pandemic, with at least 74 new local regional newspapers established by independent publishers, either online or in print.
2.74
CBAA noted that radio stations have had to adapt to online streaming models and the growth of app services. They also said that ‘most stations have an online presence and the majority of stations also maintain and create content for websites and social media accounts. These pages are often already avenues for the sharing of local news and information and are beginning to function like online newspapers.’
2.75
Centre for Media Transition said that an example of the evolution of print offerings was Galah magazine, which offered a higher cover price but engaged online in a variety of ways:
…a higher cover price with direct-to-consumer distribution and claims to have an engaged audience on Instagram. It offers some stories free online, carries no advertising and also publishes largely via newsletter and podcast. It has received Google assistance and is currently seeking further funding.
2.76
ACM said the Broadcasting Act was constrained by a 20th century model of print, television and radio and that does not ‘mention websites, social media, digital platform, smartphones, streaming services, digital-only startups or international media companies with Australian operations.’
2.77
The CBAA said ‘Community radio relies on journalists embedded in community to innovate, through a trusted voice.’
2.78
CBAA said the Western Herald in Bourke and the Torres News are examples of how community broadcasting can support regional newspapers:
At the time the paper was threatened with closure, community radio station 2WEB in Bourke purchased the paper. Not only have the local jobs been retained, the paid editorial and journalistic staff have grown from 1.5 to 5 journalists.
Box 2.1: Case Study: Torres Strait Islanders Media Association’s 4MW gifted to Torres News
On 27 May 2021, Cape & Torres News ran its final edition. For the Thursday Island and Outer Island communities this marked the end of a long history of Torres Strait local newspapers. The paper had been in operation since 2015, when Cape York News and Torres News were forced to merge to cut costs and allowed Cape & Torres News to continue operating as one publication.
With the movement of people from the region to the mainland less people are speaking the Torres Strait Creole language and with less people living in the community advertising revenue has also declined. When COVID-19 hit in 2020, the paper was losing money and would have closed without the support of JobKeeper. In 2021 when their main writer retired and there was no one to take his place, the paper could no longer find a way to continue operating.
The Torres Strait Islanders Media Association (TSIMA) saw an opportunity to return a regional newspaper to the area by sharing resources with its community radio station, 4MW. The paper was gifted to 4MW and relaunched as Torres News.
The newspaper journalists work in conjunction with 4MW journalists, covering stories from Thursday Island and the 14 other communities in the Outer Islands. The service provides community grassroots storytelling, information, profiling, and good news stories. It bolsters other work that TSIMA is undertaking outside of radio operation such as film, music, and events.
Published weekly, the newspaper is available online and in print, with online subscript ions available across the country. It is printed in both English and Torres Strait Creole, providing a valued in-language publication for Torres Strait Creole-speakers and keeping the language alive for the next generation.
2.79
ACM said that the media ownership provisions of the Broadcasting Act were no longer fit-for-purpose. They suggested that amendments to the Act meant that they were unable to adapt to the changing media environment and have a blended online, broadcast and print news model.
2.80
ACM said that regional areas were more affected by this policy than metropolitan areas and recommended that the ACMA ‘be given discretionary powers to assess the number and quality of voices in a market, instead of being required to make a binary decision and force a sale’.
2.81
ACM said that the media ownership laws had prevented them from establishing a multi-platform media company with Prime Television:
This plan put us in breach of the antiquated federal Broadcasting Services Act 1992, which requires each regional radio licence area to have at least four independent “media operators”, or “voices”. To proceed, ACM would have been forced to sell two of our respected daily newspapers, The Daily Advertiser in Wagga Wagga and The Advertiser in Bendigo.
2.82
However, Ms Clare Gill from Seven West Media said:
…had it not been for changing the 75 per cent reach rule, Seven wouldn't have been able to merge or take over Prime's television assets…[and that] due to the trigger events that were put into the legislation in 2017, there will be more journalism provided in local areas in WA due to the merger of Prime and Seven.
2.83
MEAA said that survey results concluded that ‘journalists had formed a view that the main outcome of relaxed media ownership laws are rationalisations within the newly merged companies, critical service cuts and their colleagues finding themselves without a job’.
2.84
In relation to the potential of the ACMA being given discretionary powers to assess the number of quality voices in the market, the ACMA said that they administer the media control diversity rules set out by the Broadcasting Act, which require a minimum of independent ‘voices’ in a market.
2.85
ACMA’s recent research paper, News in Australia: diversity and localism included a detailed framework for measuring diversity where the number of ‘independent’ voices is just one factor to be considered. The elements of the framework are described by the following framing questions:
How many sources of news and opinion are available to Australians?
How many journalists contribute to the production of local news?
How many people exercise control over Australia’s most influential sources of news?
How much variety [in news topics are] present in Australia’s news media market?
How many viewpoints are presented in Australia’s news media market?
To what extent does local news cover matters of local significance?
What are the most consumed sources of news in Australia?
What are the most impactful sources of news in Australia?
2.86
Sauce Communications Pty Ltd have welcomed independent publications in the wake of closures while others have concerns about the durability and sustainability of new news providers.
Partnerships
2.87
The Committee received submissions suggesting the establishment of local news partnerships between regional news and businesses and the Australian Broadcasting Corporation (ABC), based on the BBC’s Local News Partnership model (BBC Partnerships). The BBC Partnerships:
Support established media outlets of all sizes to provide an ongoing commitment to the production of public interest journalism for local or regional audiences.
2.88
Mr Hugh Martin, Head, Regional, Rural and Emergency, ABC said that:
…there is a good deal of interest and appetite within the ABC to partner in a useful and meaningful way with the smaller publishers, and we've been looking for ways to do that… [and] there is definitely a will and an interest in helping to be a part of the solution for regional media…and the ABC would like to be part of the solution.
2.89
Further, Mr David Washington, Editorial Director, Solstice Media commented on the potential development of an Australian version of BBC Partnerships and said that there were many benefits to closer relationships between public broadcasters and smaller news providers:
…there are lots of areas in local journalism that could benefit from a closer relationship. One of the things that's hard in smaller newsrooms is providing professional development opportunities for your reporters to build their skills. The resources of the ABC are obviously significant in relation to training and development, and to be able to access that in some way would be very useful. I don't see why they should see the independent sector as a competitor in any meaningful way, so I think there are lots of opportunities there that should be explored in that sort of model.
Tracking and mapping access to regional news
2.90
While existing data shows ongoing trends in the change of availability and access to regional newspapers, the sector lacks complete data to examine these developments.
2.91
Collecting data is vital in identifying and addressing the emergence of news deserts in regional Australia. The United States of America (US) merging News Deserts project (News Desert project) by the University of North Carolina at Chapel Hill defines a ‘news desert’ as:
…a community, either rural or urban, with limited access to the sort of credible and comprehensive news and information that feeds democracy at the grassroots level.
2.92
PIJI pointed to the News Desert project as the most high-profile example of a comprehensive study of core sector data. PIJI said that longitudinal data would help inform policy to support public interest journalism:
…core longitudinal data is needed to fully inform policy decisions, not only on the types and levels of support for public interest journalism but, as we examine community needs across the country, it is needed to determine policy effectiveness in delivering the desired policy outcomes.
2.93
Existing sources of publicly accessible data on regional news access in Australia range from government sources, to academia, to even the media itself. For example, in May 2020, the ABC published a list of regional areas that would be affected by the closure of their local News Corp mastheads, and how those closures impacted their news access.
2.94
The ACMA maintained the Associated Newspaper Register, developed for the purposes of the Code which at the time of the Committee’s inquiry lists 31 newspapers. PIJI said that this register forms an incomplete picture:
Our mapping of local news production across Australia currently has 800 outlets in it, so that would suggest that not all news outlets are registering under the terms of the code.
2.95
PIJI was concerned that the data maintained by the ACMA is not user-friendly and that the criteria for the Code means that the relevant database of local newspaper providers ‘exclude[s] some parts of the community sector (ie. those not incorporated), startups and smaller commercial businesses.’
2.96
Ms Anna Draffin, Chief Executive Officer of PIJI said that a notable deterrent, particularly when using such Government registers to track small and regional newspaper providers, is the administrative burden of applying.
2.97
Sharing data between projects and between government agencies may assist, however the ACMA identified there were practical challenges with this approach:
The Australian Communications and Media Authority (ACMA) has a memorandum of understanding with the ACCC that facilitates the sharing of information and data, subject to other legal obligations of each Agency regarding the collection, use and disclosure of information, imposed by statute or otherwise.
The ACMA understands that the mechanism which the data referred to in the question [relating to the News Media Bargaining Code] was collected prohibits it being shared with the ACMA due to other legal obligations limiting the disclosure thereof.
2.98
Further challenges related to the timeliness and relevance of industry data. PIJI suggested that the data collected by the ACCC’s digital platforms inquiry, for example, was likely to be both incomplete and out-of-date. PIJI reasoned that this was due to a relatively small sample size, confidentiality agreements impacting the release of data, and the data being collected prior to COVID‑19 and its associated impacts.
2.99
The Department noted the lack of a comprehensive, centralised national database of regional news publishers:
Part of the issue about collecting data around publishers—once again, online or print—is there is no central database and there's no requirement for them to report…The issue is around how you develop a dataset that is comprehensive, which is one of the issues we’ve been talking to PIJI about.
2.100
PIJI said that this data was needed to enable the identification of regions and communities that have a lack of public interest news coverage or a lack of diversity in local media. In addition, analysis of this data could ‘inform discussion on the minimum provision of news coverage that is acceptable to promote a working democracy and support resilient communities.’
2.101
The Committee also undertook a public survey during this inquiry, which provided further insight into the state of regional news media in Australia. Of the 1,731 individuals who responded in the inquiry survey, over 1,000 (62.33 per cent) were aged 55 or older. As depicted in Figure 2.2, over 60 per cent of respondents considered ‘local’ news their highest priority over consuming national or global news. However, a similar proportion, just over 55 per cent, did not subscribe to any local news services, suggesting that they would be unwilling to pay for their local news content.
2.102
Figure 2.2 demonstrates the significant demand for ‘local’ content by people who are consuming news. However, a study undertaken by the Local News Innovation Project found that most people surveyed who did not regularly access local news ‘were not aware of a local newspaper serving their area (38%)’, predominantly relying on Facebook for such information instead.
2.103
PIJI recommended that the Australian Government make a ‘long term investment in core sector data’, including print, digital, radio and television, to ‘monitor the health of public interest journalism’ throughout Australia. PIJI’s submission elaborated their concerns regarding the long-term impacts of a lack of data, and any reliance on non-government sources to fill the gaps:
It is concerning, when this data is integral to transparency around news production, that PIJI, a small non-profit with a limited shelf life and no public funding, has become a vital source of core industry data. Much more needs to be done to support public interest journalism at all levels—local, hyperlocal, regional and national—and to measure and monitor policy effectiveness in meeting community needs.
US Emerging News Deserts project
2.104
The US News Desert project by the University of North Carolina at Chapel Hill collected and analysed data to form ‘the basis for groundbreaking research on the changing local news landscape’. The News Desert project website included interactive maps of all US States, broken down by state or county based on the data available. Members of the public could see which counties have one or no local newspapers, as well as counties that have lost weekly or daily publications. It also included other accessible sections with media ownership breakdown by investment group, private company or publicly traded chains, and racial or cultural diversity in media ownership.
2.105
In addition to these functions, the News Desert project released reports and publications on the sustainability of local news, and the ongoing issue of news deserts and ‘ghost newspapers’—formerly productive and award-winning local papers ‘with depleted newsrooms that are only a shadow of their former selves’.
2.106
The survey undertaken for this inquiry asked respondents where they found their local community or issues that are important to their local community represented most. Just over 46 per cent answered with their regional news service (print or digital). The next highest response was social media, with 27.3 per cent of respondents.
2.107
Submitters also voiced concerns about the need for a comprehensive study of Australia’s regional media, and the news environment in general. In relation to the Code and its implementation, NMRC at UC recommended:
Urgent research is needed to monitor the longer-term impact of the voluntary content agreements with regional and rural newspapers on the signatory companies, those who have not become signatories, and the wider regional and rural news environment.
2.108
While PIJI said it would be making further publications of data in 2022 to ‘provide the first-ever, comprehensive picture of the changing nature of news production, availability and media ownership in the Australian landscape’, they noted that the present method of their data collection ‘flattens the complexity’ of the changes being recorded. For example, if a newspaper goes through multiple positive and negative changes, PIJI would record ‘only the most serious (and, secondly, most recent)’ of those changes in the database. PIJI noted that:
Ongoing support will enable a repurposed PIJI to consolidate its role as an independent data centre that delivers longitudinal open-source, qualitative and quantitative data on news media production and availability.
2.109
As noted above, the Australian Government has ‘no central database’ for news publishers, and the Government mainly relies on the definition of ‘regional’ under the Broadcasting Act. PIJI noted research relating to a ‘Public Interest Journalism Tax Rebate’, which provides guidance on the definition of ‘public interest journalism’ and registration criteria for such a rebate.
Box 2.2: News, disinformation and misinformation
The expression ‘fake news’ has been employed in recent years as a blanket term, however due to politicisation of this term, the threat is often referred to as ‘disinformation’ or ‘misinformation’. The Department of Home Affairs defines disinformation and misinformation as:
Disinformation: False information designed to deliberately mislead and influence public opinion or obscure the truth for malicious or deceptive purposes. Disinformation can be intended for financial gain (such as clickbait stories), but have an incidental effect on public opinion or debate.
Misinformation: False information that is spread due to ignorance, by error or mistake with good intentions/without the intent to deceive.
ACCC’s digital platforms report offered explicit definitions relating to the production of news:
News: information and commentary on contemporary affairs that may or may not be produced and presented by journalists.
Journalism: the activity of discovering, gathering, assessing, producing, and publicly presenting the reporting, analysis, and commentary on news. It is a process undertaken by journalists acting in accordance with their interpretations of professional ethics.
2.110
The NMRC, UC described poor journalism, facts being spun to push an agenda, and misleading headlines disguising advertisements as some forms of misinformation. Disinformation, however, involves deliberate deception. Research by the Australian Strategic Policy Institute revealed ‘the dissemination of disinformation is one of the most powerful forces undermining the integrity of the electoral process’:
The power of cyberspace to influence the democratic process lies in much more than just the nuts and bolts of the election infrastructure. Every vote cast on election day is the product of the information ecosystem of the preceding months. Shaping the nature and volume of information available to the public in the lead-up to an election is a sophisticated way of influencing voter decision-making and election outcomes.
2.111
Digital platforms in particular have the potential to be used to spread ‘toxic’ debate—i.e. involving disinformation and misinformation—alongside news media sources.
2.112
The above definition of ‘journalism’ developed by ACCC refers to ‘journalists acting in accordance with their interpretations of professional ethics’. The ACMA’s eligibility guidelines for the Code includes a range of standards for testing whether a publisher could be considered a legitimate news business, including the:
Professional standards test;
Australian audiences test.
2.113
The ‘professional standards test’ is laid out in detail in the Code’s enabling legislation. Under this legislation, a news business meets the requirements of the test if a news source is subject to the rules of specified industry codes such as:
Australian Press Council Standards of Practice;
Independent Media Council Code of Conduct;
Commercial Television Industry Code of Practice;
Commercial Radio Code of Practice;
Subscription Broadcast Television Codes of Practice;
Codes of practice developed by the ABC and Special Broadcasting Service (SBS); and
Their own internal editorial standards of a similar nature to those listed above, or ‘to the extent that they relate to the provision of quality journalism’.
2.114
In its recent research paper, News in Australia: diversity and localism, the ACMA said that ‘professional’ news organisations may be any outlet that:
maintains independence from those it covers;
demonstrates a commitment to accuracy, transparency and journalistic ethics;
is devoted primarily to reporting and publishing timely, originally produced news or informed opinion about people, places, issues and events.
2.115
The legislation also requires that every news source covered by this criteria ‘has editorial independence from the subjects of its news coverage’.
Committee comment
2.116
The Committee extends its appreciation to those who participated in the inquiry, particularly to those who took the time to provide their submissions in a short timeframe, appear at public hearings, and participate in the Committee’s survey on this important issue.
2.117
The Committee also recognises the valuable contribution of large publishers like ACM and digital platforms like Google Australia to the inquiry. The Committee notes its regret that News Corp Australia was not able to contribute to the inquiry by providing a submission or appearing at public hearings, especially noting the significance of News Corp’s role in Australia’s media landscape.
2.118
The Committee appreciates the complexity and challenges that Australia’s news sector has experienced, between the transition of print to online advertising and closures of newspapers across Australia. However, the Committee considers there is a lack of sufficient data to understand them in detail.
2.119
The Committee noted that federal Government funding for cadetship and journalism programs is a welcome source of support for small and regional newspaper providers. However, the Committee noted that there are core challenges associated with increasing operational costs, financial sustainability, and attracting and retaining journalists in regional areas which should be addressed in conjunction with cadetship program funding.
2.120
The Committee noted that the Treasury commenced a statutory review of the Code on 2 March 2022. While this review is important in addressing concerns around power imbalances in news media bargaining, discussed further in Chapter 4, the issues affecting regional news media are broader than the Code itself. The Committee also notes that the statutory review will not consider the policy outcomes underpinning the code.
2.121
While the Committee welcomes the commencement of the review into the Code, it is of the view that the broad nature of the issues affecting regional newspapers requires a more comprehensive review into Australia’s regional newspapers to ensure that the regional news media sector, and Australian media more broadly, are sustainable in the long term.
2.122
The Committee undertook this inquiry within a short reporting time frame, and so was not able to fully explore the breadth of issues relating to the long-term sustainability of regional newspapers. The Committee therefore recommends that the Australian Government undertakes a comprehensive review of Australia’s regional newspapers, with a two-year reporting time frame.
2.123
The Committee recommends that this review include the development of a clear definition of ‘regional’ and ‘rural’ news providers to ensure news organisations are being categorised effectively. The Committee noted further evidence strongly arguing for a revision of the categories of ‘local’ and ‘regional’ to better reflect the diversity and complexity of media in Australia.
2.124
The Committee also noted with concern the evidence provided by submitters that poor journalism can lead to the spread of misinformation. With no criteria for a ‘news provider’ in regional media, the Committee noted that misinformation may be spread by publications not held to an appropriate standard of professional ethics.
2.125
For these reasons, the Committee recommends that the criteria for defining regional and other news providers should include a reference to professional ethics, particularly in relation to the prevention of disinformation and misinformation in the media more broadly.
2.126
The Committee recommends that the Australian Government undertake a comprehensive review of the viability of regional newspapers in Australia, reporting its findings to the Committee within two years.
2.127
The Committee notes that the definition of regional news in the Broadcasting Act was established when the rise of digital platforms and the shift to online news had not yet been contemplated. The Committee also notes the evidence that the ability of news organisations to adapt to technology and technological advancement has been hampered by this antiquated definition and similar elements in the legislation.
2.128
While the Committee expects the issues around the definitions in the Broadcasting Act will receive appropriate attention in the comprehensive review outlined above, the Committee recognises there are some changes that could be made immediately to improve access to local newspapers in regional areas.
2.129
The Committee noted evidence that the legislative criteria that provides a points-based system disproportionately affects regional areas and it should be amended to provide discretionary powers to the ACMA to consider both the number and quality of voices in the market.
2.130
The Committee notes the work that the ACMA has already completed in this space to quantify the factors that contribute to diversity in local news, and considers that the Broadcasting Act should be amended to enable the ACMA to consider a range of factors, such as those outlined in the framework in the News in Australia: diversity and localism research paper, in determining whether an unacceptable media diversity situation would exist.
2.131
The Committee recommends the Broadcasting Services Act 1992 be amended to enable the Australian Communications and Media Authority to consider the factors outlined in the News in Australia: diversity and localism research paper in determining whether an unacceptable media diversity situation exists.
2.132
The Committee appreciates the complexity and challenge of trying to track an industry as large and diverse as regional Australian media. As the issues are intricate and evolve over time, it is necessary to focus on data collection on this issue in the long term.
2.133
The Committee noted evidence that suggested core longitudinal data needs to be consistently collected to inform decisions affecting regional newspapers and the regional media in Australia. In particular, the Committee noted the need for a central database to measure and monitor policy effectiveness, and to inform further research relating to the regional media sector.
2.134
Long term analysis may be undertaken by an agency such as ACMA, which conducts research projects like the Annual Consumer Survey, an annual report which considers the use of the internet to access news and current affairs. If there is not an appropriate agency, the appropriate body should be determined by the comprehensive review undertaken by the Australian Government.
2.135
The Committee recommends that the Australian Government consider the funding and development of a project to gather and analyse core longitudinal data on regional newspapers in Australia over a minimum 10‑year period.
2.136
The Committee noted evidence that existing agreements may facilitate the sharing of information and data between Government agencies such as the ACMA and the ACCC. However, legal restrictions on data use may have the potential to prevent any sharing at all. The Committee did not receive adequate assurance that data could be shared freely.
2.137
The Committee received a significant amount of evidence that access to comprehensive and up-to-date data is essential for policy development. For the avoidance of doubt, the Committee recommends that relevant legislation be amended to allow for the sharing of vital industry data between Government agencies.
2.138
The Committee recommends that the Australian Government consider legislative amendments which would allow the sharing of industry data on regional newspaper providers between relevant Government agencies.
2.139
There is no consistent news register in Australia. Research conducted by academic groups like PIJI and JNI—neither of which receive public funding—would understandably find it challenging to cover or contain all of the available news providers in Australia.
2.140
The Committee notes that a significant number of regional Australians who do not access their news through newspapers, were unaware that they even had a local newspaper. Therefore, it is appropriate to develop a national and publicly available register of regional news providers.
2.141
The Committee found that the US News Desert project was useful for providing citizens with a range of detailed information on their local news providers in an accessible format. This included regional data broken down to display the loss or lack of local public interest journalism, ethnic representation in media ownership, ownership information relating to the independence of newspapers, and the presence of news deserts at the state and county level.
2.142
The Committee therefore recommends that the Government develop a national, public and accessible register of regional news providers modelled on the US News Desert project by the University of North Carolina at Chapel Hill.
2.143
The Committee recommends that the Government create and maintain a national, publicly available register of regional news providers (both print and digital), using the US News Desert project by the University of North Carolina as a model.
2.144
The Committee sees merit in the UK based Local News Partnership model, which allows for an ongoing commitment to the production of public interest journalism for local and regional areas. The Committee believes this type of model would suit Australia.
2.145
It is clear to the Committee that access to news for communities and towns in regional Australia is concerning, particularly during times of crisis and the everyday challenges that Australians face such as bush fires, floods and ongoing drought. The recent global COVID-19 pandemic has highlighted the importance of accessing news and its function in keeping communities connected.
2.146
The Committee agrees that supporting diversity in regional media is important, particularly the presence of Indigenous voices. The Committee notes the importance of preserving language and culture and providing grassroots and community storytelling for Indigenous audiences. The Committee notes the SBS has mature capabilities in this area.
2.147
The Committee notes the role that Australia’s public broadcasting corporations could have in facilitating a partnership program. The Committee recommends that the Department work with the ABC and the SBS, including facilitating any necessary legislative change, to enable partnerships with small regional publishers and broadcasters, modelled on the BBC Local Partnerships program.
2.148
The Committee recommends that the Department of Infrastructure, Transport, Regional Development and Communications work with the Australian Broadcasting Corporation and the Special Broadcasting Service to facilitate partnerships with small regional publishers and broadcasters, modelled on the BBC Local News Partnerships program.