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  5. arrow_forward_ios Prominence on demand

Prominence on demand

8 July 2022
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Although ACMA’s latest consumer survey was released in conjunction with a position paper on improved content safeguards, it is also likely to focus interest on other pressure points in the media environment. This includes the issue of how easy it is to find free-to-air broadcasting services on internet-connected devices such as smart TVs.

Chief among ACMA’s 2021 figures is that more Australians (58%, up from from 32% in 2017) now watch online subscription services than traditional free-to-air TV (54%, down from 77%), while 37% watched catch-up free-to-air TV during the survey period. ACMA also cites GlobalData figures that show the Australian SVOD market grew almost 50% in FY 2020–21, with total earnings of $2.49 billion. Free-to-air broadcasters still earn more, with revenue of $4.37 billion, up from $3.98 billion in 2019–20. Broadcasters are investing more in catch-up and other on-demand services to compete in the digital space, and audience numbers for these services are growing.

In this rapidly changing environment, an emerging issue is how easy it is to find and access services within the interfaces of smart TVs and other online devices. This is generally known as ‘prominence’. Television manufacturers now sell interface real estate to content providers, effectively operating a market for the prominence of third-party services. Australian broadcasters are concerned that the market power of international content providers will outweigh the broadcasters’ ability to compete in this market.

In May 2021 industry group Free TV stated in its submission to the Media Reform Green Paper that prominence is the single most critical regulatory issue now facing broadcasters. Other stakeholders observed that without regulation there is no incentive for TV manufacturers to ensure the prominence of local services or content, or even to carry them.

The Australian regulatory framework does not have any rules on prominence. But stakeholders frame their concerns with reference to longstanding government policy objectives expressed in the objects of the Broadcasting Services Act, which aim at supporting local content production and ensuring the provision of diverse and reliable news and information. Free TV and the ABC both suggest in their submissions that ACMA or a similar body should be given a general power to regulate for prominence.

Many overseas jurisdictions, such as the EU, have enacted or are considering prominence rules, particularly to protect public interest content. The outgoing Liberal government formed a working group to examine whether regulatory measures are required to deal with the issue. Incoming minister Michelle Rowland has also slated it as a priority for Labor. One thing is certain: with Australians watching more of their TV online, the issue is only going to become more prominent.

Picture of Michael Davis

Michael Davis
CMT Research Fellow

 

This article features in our 8 July newsletter - a comparative look at Australia and Canada's approach to quotas for local content and the prominence issue for public broadcasters on streaming services, misinformation circulating about the PNG election & more. Click to read the full edition. If you want to receive this newsletter direct to your inbox, subscribe here.

 

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