Report on the provisions of the Broadcasting Services Amendment Bill 1998
Table of Contents

Chapter 3 - Subscription Television programming in regional areas

Introduction

3.1 The current provisions of the BSA allow pay-TV operators to retransmit metropolitan commercial television services, and not the related regional service, in areas of metropolitan and regional license overlap. These provisions may also allow pay-TV operators to re-broadcast commercial television programming from metropolitan sources that is substantially similar to that of regional commercial broadcasters.

3.2 While regional broadcasters receive much of their program material from one of the three metropolitan broadcasters because of their network affiliations, they also televise programs of local significance, such as news and sport. The local advertising associated with these programs is a major source of revenue for regional commercial broadcasting.

3.3 Regional television broadcasters in license areas which overlap with metropolitan license areas have expressed concerns that pay-TV operators will only transmit the metropolitan free to air services in areas of overlap, with consequent detrimental effects on advertising revenue for the regional broadcaster.

3.4 As part of the Government's objective of maintaining the integrity of the license area concept on which licensed broadcasting services are based, Schedule 2 of the Bill imposes restrictions on the provision of certain broadcasting services in regional areas by pay-TV licensees or their related bodies corporate.

Amendments

3.5 The proposed amendments to the BSA in Schedule 2 of the Bill will prohibit pay-TV operators from providing a television service in a regional area if the majority of programs broadcast are substantially the same as those broadcast by a metropolitan commercial broadcaster, unless the Australian Broadcasting Authority gives permission in writing.

3.6 The prohibited broadcasts are defined as being either particular programs designated by the Minister and or a majority of the program material televised by the metropolitan broadcaster during certain specified prime time and weekend viewing periods.

Industry views

3.7 FACTS supported the proposed amendments, stating that 'this is an appropriate case where access to the regional service needs to be protected by a requirement to carry'. [1]

3.8 In its written submission, ASTRA argued that the proposed provisions might be flawed, believing that there is a risk that the provisions will unintentionally catch certain services. ASTRA expressed its concern at what it described as anti-competitive regulation:

There is no precedent for such an intrusion into programming. Such interference with programming is not contemplated for any other broadcaster under the BSA and appears inconsistent with the regulatory policy in the BSA…and at odds with the relevant objects in the BSA. [2]

3.9 However, at the Committee's public hearing, ASTRA representatives indicated that in areas where there is an overlap of regional and metropolitan signals, they would substitute the regional service if asked to do so. However, Mr Mockridge maintained that there had been a 'lack of commercial interaction' on the issue:

It is correct that on the Gold Coast we carry the Brisbane services. We would be quite happy to substitute the Gold Coast services if they approached us and asked us to do that,it is not a difficulty. But, again, because of the lack of commercial interaction on this issue, we have been doing it without the cooperation of the free to air broadcasters. We are very happy to do it with their cooperation. In this area, where it is an overlap area, we would be happy to substitute the goalpost. [3]

3.10 Mr Mockridge advised the Committee that the situation on the Gold Coast is one of license area overlap, the area being covered by both regional and metropolitan operators.

3.11 Dr Beverly Hart of the Department of Communications, Information Technology and the Arts explained the intent of the legislation in areas where there is an overlap of license areas. Where there is an overlap, the regional license takes precedence and the pay-TV operator must retransmit either the regional service or both the regional and metropolitan services:

The legislation does try to address the particular circumstances where there are these six overlap areas. The concern is that pay subscribers will not be able to take the regional service, and that is obviously going to undermine the viability of the regional service. So it is, if you like, an elective which must be carried. If the pay TV service chooses to transmit a service, they must either take the regional one or, if they take the metropolitan one, also take the regional one. [4]

Committee's views

3.12 The Committee supports the Government's initiative to ensure that pay-TV operators give precedence to retransmitting regional signals where there is an overlap between regional and metropolitan license areas. The amendment will not preclude pay-TV operators from also retransmitting metropolitan signals in these areas. The Committee considers that the Government should proceed with the proposed amendments to the Broadcasting Services Act incorporated in this schedule of the Bill.

 

Footnotes

[1] Submission, p. 18.

[2] Submission, p. 7-8.

[3] Evidence, p. 219.

[4] Evidence, p.219.