Seven lashes media reform as ‘great for deal junkies’ as rest of media welcomes changes
Seven West Media has described the Coalition’s proposed media reform as “great for the deal junkies”, claiming the reforms will decrease news and current affairs for rural communities.
Worner: “The 4.5% gross revenue licence fee is crippling our ability to invest in local news, live sport and drama.”
Communications minister Mitch Fifield today announced the much discussed package which abolishes both the ‘reach’ rule and ‘two out of three’ ownership rule, but also announced “new and higher” local content protections.
In response to the package Seven West Media CEO Tim Worner issued a statement, saying: “Media ownership changes might be great for the deal junkies out there but they are not going to ensure a strong future for Australian film and television production.
I wonder if Seven Group Holdings response has anything to do with the precarious position of its balance sheet. Massive impairments against WesTrac here and in China as well as massive pressures in their Media business. Not a great time to be trying to obtain a new debt facility or engage in a capital raising to fund potential acquisitions.
Conversely Nine Entertainment Co is pretty well placed for acquisitions and given its current huge issues with ratings will likely have a reasonably large revenue issue in the near future.
While the Free to Air broadcasters bleat about their licence fee the real story is that it’d be better for taxpayers if Government took the spectrum back and sold it to the Mobile carriers. Lets see what they have to say then. I also note the FTA members don’t seem to talk too much about the value of the anti-siphoning list to their respective organisations.
Should the 4.5% of gross revenue licence fee go, I look forward to every cent of it going to local production and not straight to the bottom line.