The News and media industry in Australia is in trouble, with many print media outlets struggling to replace declining advertising revenue. The Australian Associated Press is a prime example of the problems faced by the industry. It was slated for closure in February 2020, until investors such as Peter Tonagh, former boss of Foxtel, threw it a lifeline. In the end, the newspaper has managed to survive. Read on to find out what the report found.
Report
The Australian Consumer and Competition Commission (ACCC) recently released its Report on the News and Media Industry in Australia. It outlined concerns about the impact of Facebook and Google on the media industry, including the need to regulate the companies more tightly. In addition, preliminary recommendations call for tighter monitoring of platforms, greater transparency regarding how companies use consumer data, and tax incentives for journalism. The final report is expected by the end of June. The report also identifies a growing need for reforms and regulation in the U.S. and other countries.
The industry has experienced unprecedented upheaval over the past 12 months. Job losses, takeovers, and a leadership crisis at Australia’s national public broadcaster have all affected the landscape. But a $100 million philanthropist has emerged, offering hope. What are the benefits of regulating the industry? In Australia, the industry has lost thousands of jobs over the past decade. The report also highlights the need for new government-led initiatives to support local journalism.
As the COVID-19 pandemic accelerated, Australians increasingly sought out credible, fast news. As a result, news consumption increased. However, the disruption caused by the virus also reduced revenues for news organisations. As a result, many local newspapers were forced to close down and the industry struggled to replace its declining advertising income. Despite these challenges, the report states that trust in traditional news brands remains high, indicating that Australians are increasingly willing to pay for the news.
The report also outlines a number of promising developments in the news and media industry. Among them are new investments by the federal government to support local news initiatives and the establishment of a $100 million philanthropic body to improve public discourse. Crikey also launched an inquiry journalism initiative and hired 12 investigative journalists. However, these initiatives are limited in their scope, and the ACCC cannot say for certain which ones are better than others.
Scope
Despite the fact that there is a wide range of media outlets in Australia, its scope is largely limited to the news market. The ACCC is keen to monitor the industry, particularly the role of transnational companies in controlling information and how we consume news. It wants to understand the range of news available, whether it is credible, and if the industry is providing an adequate level of public information. While this will be a complex task, the ACMA will be able to determine which media outlets are providing the best quality of information to consumers.
As Australians’ interest in news has declined, so has the proportion of people paying for it. Although Australians have become increasingly trusting of the news, overall interest in news has decreased. This has also impacted the financial status of media companies. Some local newspapers in Australia have closed down after the COVID-19 pandemic, which accelerated the industry’s struggle to replace the decreasing advertising revenue. However, most Australians are unaware of the financial difficulties of news media and the role it plays in the country.
The ACCC has also recently been investigating the impact of digital platforms on the Australian media market. It is currently investigating the impact of digital platforms on the availability and quality of news content in the country. This inquiry has been called a major shift in the media market, and the ACCC’s preliminary report highlights the increasing concentration of ownership and control. However, it is unclear whether the merger will have a negative impact on the quality of journalism in Australia.
Australia has a highly fragmented media industry, and smaller regional news agencies compete with larger national and international companies for advertising dollars. Consequently, most media companies own a network of smaller regional operations. While media ownership has consolidated in Sydney and Melbourne, most of the television and radio stations are based in the two cities. The media industry is highly regulated, and there are a variety of rules regarding the ownership of radio and television channels.
Key findings
The Finkelstein Inquiry, an independent review of the Australian media industry, reported that the newspaper industry is struggling to adapt to the digital age. While it found that the sector has been impacted by new technology, it said the industry was also benefiting from recent growth. For example, some traditional mastheads now offer subscriptions online. This diversity has helped increase the number of stories, and has boosted quality journalism.
The report found that more than half of Australians believe that news should be fair and impartial, although a smaller proportion (29%) disagree. For example, women and younger generations are less likely to believe that the media adequately represents their viewpoint. Furthermore, those with lower incomes, education, and a lack of access to a newspaper are also less likely to believe the news represents their views. Overall, almost half of Australians have not read a newspaper in the past week, which is lower than the global average.
Despite the growing reliance on online news and social media, the number of Australians who regularly consume news has decreased. While the percentage of Australians paying for news has increased, the number of people who consume it has declined. Meanwhile, despite the decline in newspaper reading, the news industry remains a reliable source of information. Furthermore, most Australians still have high levels of trust in the traditional media. Despite this, the study revealed that most people are unaware of the financial troubles of the Australian news industry.
The editors from Werribee’s local Wyndham news based in Melbourne said, Australia has continued to struggle to replace its declining advertising revenue. The Australian Associated Press, for example, faced imminent closure because of the pressures. Investors stepped in and rescued the Associated Press by extending its lifeline. Further, community-based newspapers have emerged in regional towns and in places where established newspapers had ceased to exist. The government has stepped in with AU$50 million public interest news-gathering program, and the Australian Communications and Media Authority is also supporting regional publishers with innovation funding.
Trends
Digital platforms are rapidly changing the way people consume media. New business models and commercial strategies have emerged in the publishing and broadcasting industry. The government must determine how to best empower content producers. The media industry is undergoing a major transformation, and these changes could have a negative impact on the quality of journalism in Australia. Listed below are some of the trends affecting the news and media industry in Australia. These trends have implications for journalists, publishers, and governments.
News consumption – Australians are increasingly disengaging from traditional media and are turning to digital sources to get information. While news consumption in Australia has risen in recent years, the proportion of people who pay for news has remained flat. The news and media industry is experiencing challenges in replacing declining advertising revenue. The Australian media industry is suffering from a critical period, as many of its audiences lack adequate media literacy.
ACCC – The Australian Competition and Consumer Commission has recently completed its inquiry into the impact of digital platforms on the Australian media market and the quality of news content. The ACCC report reveals that digital platforms have increased the risks of fake news and disinformation. In 2017, for example, social media platforms were the source of dangerous misinformation about COVID-19. This report also highlights the importance of a news media bargaining code.
Digital platforms – Australia’s media industry has become well-versed in digital platforms and has embraced the use of social media to share content. Digital platforms allow for quick and easy syndication of content across media platforms, including social media. Most commonly, this is through social media outlets such as Twitter, Facebook, and Google+. These platforms allow businesses to interact with their target audiences in an interactive way.
Future outlook
In recent decades, Australia’s newspaper industry has suffered significant declines. A study conducted by consulting firm AlphaBeta found that newspaper revenues fell from A$4.4 billion annually in 2002 to just $3 billion a year in 2018. This decline was driven mostly by a dramatic drop in classified advertising, which declined from A$1.5 billion to only 0.2 million in 2018. As more consumers switched to social media, newspaper revenue decreased as well. In contrast, older Australians remained loyal to their local newspaper or news website.
Despite the challenges facing the industry, the future looks bright. However, changes are underway that may have a significant impact on the industry. For example, the future of journalism may rely heavily on new technologies and the emergence of new players. In addition to the changes in the way news is produced and delivered, the ACCC is concerned that new policy measures and incentives may divert attention away from public interest coverage and towards commercial interests.
With the looming introduction of COVID-19, Australia’s news and media industry is facing a challenging year ahead. More than 150 news titles closed their doors due to the changes in the law, and government plans to introduce a mandatory ‘news media bargaining code’ aimed at balancing journalism and tech platforms. Further, the media sector has also been hit by the loss of a large number of journalists.
In December 2019, the Australian Competition and Consumer Commission released its Digital Platforms Inquiry report, which urged governments to take stronger action against large digital platforms. The major outcome of the inquiry was the passing into law of the News Media and Digital Platforms Mandatory Bargaining Code. The industry will continue to face challenges, but this is not the end of the world. In the meantime, Australia’s new law is likely to become a missed opportunity.