Is fast-tracking funds to Foxtel the best way to support the media during COVID?



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Johan Lidberg, Monash University

According to an ABC report, government funds were fast-tracked to Foxtel during the coronavirus pandemic.

This news will raise eyebrows, as the media — like so many industries — tries to survive the pain and disruption brought by COVID-19.

Why are some outlets missing out when others have their requests prioritised?

The Foxtel fast-track

The background to these latest Foxtel funds is a $30 million grant, controversially awarded to the subscription broadcaster in 2017.

This was to

support the broadcast of underrepresented sports on subscription television, including women’s sports, niche sports and sports with a high level of community involvement and participation.

At the time, media reports noted the government did not adequately explain why it had given the funds to Foxtel.

Fast-forward to April 2020 and COVID-19 was wreaking havoc in the media sector. The federal government announced a support package for the media, but Foxtel missed out.




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However, as the ABC reported, after a letter from Foxtel chief executive Patrick Delany, the TV service quickly received $17.5 million.

This included bringing forward $7.5 million of taxpayer money already granted to Foxtel. In July 2020, a further $10 million was awarded to Foxtel, with the same opaque justification as the 2017 grant.

The ABC was able to report the process behind these developments following a Freedom of Information (FOI) request.

Foxtel supported as national broadcaster struggles

The Foxtel funds came amid yet another round of cost-cutting and job losses at the ABC. In June, the ABC announced 250 job losses to deal with an $84 million budget shortfall.

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The ABC recently announced 250 job losses.
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As of this week, the iconic 7:45am radio bulletin no longer features in Australians’ morning routines as a result of the cuts.

Meanwhile, regional media outlets have been particularly hard hit during COVID. We have also seen recent job losses at News Corp (who is a part owner of Foxtel) and Channel 10.

What support have media companies had during COVID?

The government announced a COVID-support package for the media in April.

This included $41 million in rebates for use of the broadcasting spectrum, targeted at commercial television and radio broadcasters.




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A $50 million Public Interest News Gathering program was also announced to support public interest journalism delivered by commercial television, newspaper and radio businesses in regional Australia.

Is this the best use of taxpayer funds?

The reports of the fast-tracked funds to Foxtel beg the question, where is public money best spent? On the public broadcaster so it can maintain its crucial services (with another bushfire season around the corner) — or on a subscription-based commercial broadcaster?

When you consider the different support packages the Morrison government has launched as part of its pandemic response, there is one glaring omission — support for the national broadcaster.

The ABC is the most trusted media brand in the country. But instead of supporting it, to help us get through the pandemic, the Coalition continues to bleed it. This is the polar opposite to its support of News Corp-owned Foxtel, a relationship the government seems much more comfortable with and clearly prioritises.

Not enough information

When considering whether Foxtel deserves its funding, it would be useful to see a government-issued summary of how it used the first $30 million.

We have seen some reporting (again via FOI requests) of how the initial $7 million was used to boost sports coverage. But given this is taxpayers’ money, best practice would be open and transparent government reporting on how the funding is utilised.

It would also be useful to have an explanation of why the extra funds were provided now.

Unfortunately, information access and openness has not been the Morrison government’s forte.

We have seen a number of cases where the FOI process has been contrary to the spirit of the Freedom of Information Act, which holds that as much information as possible should be made available to the public.

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The Australian government has been criticised for the high rate of FOI refusals.
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The blocking of FOI requests over Energy Minister Angus Taylor’s attack on Sydney Lord Mayor Clover Moore is one recent example.

The recent requests to the Morrison government about Foxtel is another. According to the ABC, more than half of the hundreds of pages released were blacked out and 80% of the rest had substantial redactions. Communications Minister Paul Fletcher’s chief of staff, Ryan Bloxsom, was one of the FOI decision makers and justified the extensive redactions in this way:

I do not consider it would inform debate on a matter of public importance or promote effective oversight of public expenditure.

This is not just out of line with the aims of the FOI Act, it means Australians remain ill-informed about how and why tax payer money is being spent. Our public discourse is worse of for it.

This makes funding public interest journalism even more important — especially in the regions where coverage of courts and local councils is the engine room of our democracy.




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The Conversation


Johan Lidberg, Associate Professor, School of Media, Film and Journalism, Monash University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Seven and Foxtel snag cricket rights, meaning more content but maybe not for free


Marc C-Scott, Victoria University

Under a new broadcast rights deal Cricket Australia will part ways with its long broadcast partner, the Nine Network, after more than 40 years.

The A$1.182 billion deal lasts six years and will commence from this coming summer through to 2024. It will be split between Seven and Foxtel.

As part of a new deal, Seven West Media will pay A$75 million per year to broadcast Big Bash League matches (43 of the 59), all home international tests, including the Ashes (2021-22), some Women’s Big Bash League and International matches, along with award ceremonies including the Allan Border Medal and Belinda Clark Award.




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Foxtel will pay A$100 million per year and promises to “show every ball of every over bowled in Australia”, also part of the new deal.

Foxtel will have a dedicated cricket channel. Its coverage will include: simulcasting games from Seven, exclusive rights to men’s one day international and T20 games and 16 Big Bash League matches.

A key for part of the deal for Foxtel has been it securing exclusive digital rights.

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The Nine Network’s partnership with Cricket Australia had a rocky start when the Australian Cricket Board decided to ignore Kerry Packer’s bid in 1976, in favour of the then partner – the ABC. Packer then changed cricket forever with World Series Cricket.

Today’s new media rights deal is another major shift in Australian cricket history. Not only is it the first time Seven will be involved in cricket, the new deal will also allow Australian cricket fans to have access to more cricket coverage than ever.

While there are more hours, there is a definite shift in what will now be shown on free-to-air television.

The negotiations

The current cricket broadcast rights deal with Nine and Ten is a five year A$590 million deal, ending this year. It was an 118% increase on the previous five-year deal.

Cricket Australia desired a similar increase with its new broadcast rights deal, asking a A$1 billion price tag. While it reached the A$1 billion price tag, the deal is for six years rather than five years.

Despite this, the deal is on par with recent increases in the cost of Australian sports media rights. Cricket Australia’s new rights deal matched the percentage increase from the previous deal, (achieved by the AFL) of 67%.

The winners and losers

The rights for Foxtel are a massive win, as Foxtel has lacked Australian summer sport content. By gaining the cricket it now has a full-year calendar of Australian sport. Its exclusive digital rights will allow Foxtel to expand its streaming platforms and potentially increase subscription across both its cable and digital services.

Foxtel’s exclusive digital rights will also dictate what Seven can do with cricket coverage. In recent years Seven has established a free (with ads) and premium service for its major sporting rights, including the tennis and the Olympics. For the cricket it appears that Seven will not be able to incorporate this approach.

Despite this Seven executives see the cricket rights as a better deal in comparison to the tennis rights, which it recently lost to the Nine Network. This is because the cricket media rights give the company over 400 hours of sport, more than double that of the Australian Open.




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Previously UBS media analyst Eric Choi had stated that Nine lost A$30-40 million a year on the current cricket rights deal. Nine will still have cricket as part of its schedule as it has rights to the next Ashes series from England and the ODI World Cup in the UK in 2019 and the T20 World Cups in Australia in 2020.

The biggest loser from the broadcasters’ perspective is Ten, that has held the rights and gained high ratings from the Big Bash League. It will now need to find programming to fill a very big void in its summer lineup.

Now Cricket Australia has to play a balancing act to make sure cricket is not placed behind a pay-wall and therefore see levels of participation decline, as seen in the UK.

The ConversationIt has to ask itself, will Australians pay to watch cricket on their screens?

Marc C-Scott, Lecturer in Screen Media, Victoria University

This article was originally published on The Conversation. Read the original article.