3V and Merlin Integrated Media
Submission to
the Productivity Commission Broadcasting Inquiry,

May 1999.

Part 5

Deregulation

5.1 We would argue that simple deregulation has negatively impacted both economically and culturally on the Australian consumer and the broadcasting and media industries, and is against the principles expressed in the objects of the BSA itself.

5.2 For example, due to the negative impact of deregulation:

5.2.1 the Australian consumer now has less local television and diversity of programming through the disastrous policy of aggregation in radio and television. We predict that there will be a sale of one of more Australian networks to an American company which will see much more American radio and television programming in regional and urban markets;
5.2.2 the Australian consumer has more violence and sexually titillating programming and advertising on Australian television thanks to the failed idea of industry self-regulation. We predict that this will soon be the same for the internet, led by the largest media companies operating there. For example, one of ninemsn's most popular services is a sex site, albeit masquerading under the auspices of "health"; and
5.2.3 the Australian consumer must unwillingly endure significant increased amounts of advertising and advertorial "lifestyle" programming, with Channel Nine and other networks consistently breaking self-regulated "limits" to on-air advertising. This has led to Australians being the first in the world to have to endure ads on pay TV, and we can further predict, that without proper regulation, advertising will become ubiquitous, across all media and platforms, filling an inappropriately large amount of media space and consumers' time.

5.3 We recommend that regulation be kept "light", be written in plain English, and be tightened in areas that ensure equity, diversity, advertising limits, regulated violence and sexual reference.

5.4 We also recommend that particular emphasis should be placed on the strict regulation of gambling - or gaming as the popular euphemism puts it - in all domains of media with special emphasis on the simultaneous access of gambling and ecommerce services. Such simultaneous access will mean that gamblers can connect their credit card to the casino through an ecommerce supplier.

5.5 It should be noted that it is likely that the trend of large media companies buying into and operating on-air, online and remote gambling services will increase, requiring special skills and resources on the part of government to regulate such an industry that has potentially disastrous economic consequences for Australian consumers - not just for "problem gamblers" - but also for lower-income households with children who are already experiencing economic stress as the gap between the wealthy and poor increases.

5.6 It should also be noted that the Broadcasting industry currently circumvents the weak regulation of the BSA in regards of gambling on free to air (FTA) services through the operation of programs on Channel Nine and Seven that use loopholes in the law to allow contestants to effectively gamble for large sums of money over the air. This contravenes the BSA's Objectives (h) and (j), and also flouts the spirit of this section of the BSA.

5.7 We recommend that the Objectives of the Act be updated to include new media forms and be strengthened in regards of providing Australians with a comprehensive and free media service delivering information, education and entertainment throughout Australia, to complement those provided by pay TV services. Such an objective protects the regional Australian community as USOs are degraded, and as pay TV services seek to supplant the FTA market.

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