2.1 This paper is presented from the viewpoint of small to medium independent
media producers and distributors who either sell their material (content,
production services) to a third party distributor (such as a TV or cable
network, "large" internet group, or other "large" distributor using the
internet, CD ROM, video or similar electronic media distribution platform)
or who independently distribute their material through the internet, CD
ROM, video or similar electronic media distribution platforms. They include
both new and smaller independent media companies and also relevant non-profit
media organisations who are mostly overseen by the Community Broadcasting
Association of Australia (CBAA).
2.2 Further, we consider that the Broadcast Services Act 1992 (BSA), is
legislation whose ambit affects and therefore includes those industry
sectors that produce or distribute all forms of media. Due to the wide
range of influence the broadcast industries exert over our lives and culture,
and the interrelated nature of media, technology and broadcasting, the
BSA also has influence over the working of Acts related to media, communications,
telecommunications and cultural support sectors, a fact sensibly reflected
in the mix of economic, social and cultural issues outlined in the Broadcasting
Inquiry Issues Paper.
2.3 As such, these smaller media players have a direct and vital role
to play in the future of broadcasting, the new media industries and the
media and information economy and hence this inquiry, their unique circumstances
and contribution affording them significant economic influence on the
industry and our cultural environment as a whole out of proportion to
their relatively small economic size.
2.4 These smaller companies would fit into the SME category, are the primary
employers for the sector employing an estimated 65% of the workforce of
the broadcasting and new media industries, a figure increasing as the
trend to outsourcing and contracting continues, and also increasing as
the costs of production of electronic media continue to fall.
2.5 It is our contention that these independent electronic media producers
are a leading indicator of and powerhouse behind the development of new
media production and distribution forms, as they were for computer-based
communications and for the film and television industries in the 70's
and early 80's, and that their views are undervalued and consequently
overlooked in the development of policy and legislation for broadcast
and new media industries. This omission results in poorly framed legislation
that leads to inefficient and anti-competitive practices by large media
companies in areas such as the Broadcast Services Act, the Telecommunications
Act and the Trade Practices Act that would not have occurred if the views
and special needs of this independent sector where properly taken into
account and reflected accordingly in policy and subsequent legislation.
2.6 Smaller media companies are truly innovative in ways large, mainstream
companies cannot be, are flexible and can best deal with ongoing cultural
and technological change, and so can provide a leading indicator for not
only the broadcasting and media industries, but for sectors as diverse
as the financial, IT, education, leisure, and manufacturing sectors.
2.7 Smaller media companies are, in effect, a necessary research and development
"arm" of the larger companies.
2.8 Smaller independent media companies provide many benefits to Australia's
media and information economy including:
a) access for smaller educational providers, contemporary arts groups
and artists, multicultural and Aboriginal groups and other similar groups
and individuals;
b) a new model of efficient horizontal and scalable organisation utilising
the latest in IT products and services;
c) training and work experience in production and distribution;
d) distribution of this independent material through the smaller window
of independent media distribution channels, albeit access restricted by
lack of financial and marketing strength.; and
e) the cultural infrastructure operated by Australians to produce and
distribute definably Australian information, education and entertainment
content.
2.9 It is the position of our company that:
2.9.1 accessibility to and meaningful engagement with new media technologies
and forms is a necessary precondition if the wider Australian community
is to benefit ("to make the most out of the opportunities presented by
new technologies and new ways of doing things" p 9, Issues Paper, 1999,
) from efficient delivery of media and information, education and entertainment
material;
2.9.2 that such efficient delivery depends, not only on the future efficient
operation of the Australian broadcasting and communications regimes, but
also on the recognition of and accommodation in policy and legislative
frameworks to the needs of small to medium new media "players" (producers
and distributors) whose experiences are vital to prospective analysis
of the greenfields new media industries, and provide the most significant
areas of product and service development innovation through research and
development into "the opportunities presented by new technologies and
ways of doing things" (p 9, Issues Paper);
2.9.3 that to deal with the ongoing and relentless dynamism of new media
and technology that the government institute a regular formal review of
relevant legislation and make allowance in other ways for this dynamism;
and
2.9.4 that the existing broadcasting regime does not adequately deal with
the needs of small to medium producers because of: the use of increasingly
obsolete terms and concepts such as "broadcasting"; a failure of government
and legislation to ensure open access for new players to the new technologies
of delivery; and a failure of legislation to protect small business from
anti-competitive activities of the large media companies.
2.10 We recommend that these smaller media companies be recognised for
their benefits to the Australian community (outlined above) by policy
makers and that therefore support for this vital part of the media and
information economy should be reflected in policy and underpinned by legislation.
2.11 This does not mean that older, larger and more mainstream companies
do not have an important part to play in innovation, but this part is
primarily to realise economies of scope and scale in manufacture, marketing,
distribution and other functions in exploiting the soft and hard assets
developed, in the first instance, by smaller innovative companies.
2.12 For example, the three great barriers to the success of smaller media
companies are:
a) a lack of access to economically viable independent distribution platforms
that are genuine alternatives to those provided by mainstream or larger
media companies;
b) the need for ongoing support for certain special kinds of services
and content provided by a range of government production funding bodies;
and
c) a lack of a comprehensive and coherent set of policies and legislative
instruments to ensure the ongoing access and production support.
2.13 This paper will address only those questions raised in the Inquiry
Issues Paper that relate to the linkages between, on the one hand, new
small to medium media producers and distributors and, on the other, the
"well-being of the community as a whole, rather than just the interests
of any particular industry or group" (Issues Paper, p 6.). As such, only
those areas will be discussed where a change to the government's policy
on small players will benefit the wider community as a whole. Where appropriate,
issues additional to the questions posed by the Issues Paper will be raised
and discussed.
2.14 We do this in the knowledge that our experience in over 15 government
inquiries has proven that our views will be largely ignored by this inquiry
in favour of those of large media companies, and that this inquiry may
therefore entrench inappropriate policies and legislation. Nonetheless,
we do however regard as important the opportunity afforded by this inquiry
for smaller players to put forward their views and wish to contribute
as a matter of record.
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