'Torturous decision': Regional broadcasters struggle as advertising declines

The chief executive of regional television broadcaster Prime Media has warned that newsroom cuts in country Australia have become an unfortunate reality as advertising revenue dwindles.

"Local news is an increasingly expensive endeavour when audiences and advertising revenues are declining," Prime CEO Ian Audsley said.  "It is an unfortunate reality that business decisions like this one are not always in the public interest, but there are no plaudits for failure either," he said.

Prime Media chief executive Ian Audsley.Credit: Rob Homer

Bermuda-based media mogul Bruce Gordon's WIN Network last week informed about 40 staff members in NSW regional centres Albury, Wagga Wagga and Orange/Dubbo, and Queensland's Wide Bay, that the broadcaster would later this month cease to produce local news bulletins from those locations.

The decision was "based on the commercial viability of funding news in these areas," said a spokeswoman at the time.

Regional television broadcasters have faced growing pressure for years to balance producing costly journalism as viewing habits change with rising network expenses and revenue declines as advertisers spend more of their budgets online.

Mr Audsley said he was "not surprised by WIN's decision, or the reaction from various parts of the community".

After WIN announced the closure, the decision was criticised by the NSW Nationals who warned they would pull all advertising from the broadcaster unless the decision was reversed. The party spent $3 million on the network in the last six months, during which there was a Federal Election and a state election that increased the spend.

"I know the WIN guys well – this would have been a torturous decision for them," Mr Audsley said. "They’ve been tremendous supporters of local news”.

Regional television broadcasters face rising costs, including the programming they buy from metropolitan broadcasters like Nine Entertainment Co (owner of this masthead), Seven West Media and Network Ten. Prime is the regional affiliate for Seven, Southern Cross Austereo for Nine and WIN for CBS-owned Ten.

The regional networks have also criticised digital giants Google and Facebook in the past for diverting funds away from television to online from businesses looking to attract country-based audiences.

While there has historically been strong ratings for local television news, the growth of catch-up and streaming services like the free-to-air apps, Netflix and Nine's Stan have added to competition for viewers.

The Australian Communications and Media Authority in a 2017 report found a 10 per cent decline in regional TV revenues since 2011.

Last week, Queensland Liberal-National Senator James McGrath said the ABC should sell its headquarters, in the inner Sydney suburb of Ultimo, and relocate to regional areas.