Kerry Stokes of Seven West Media calls for reform

Media and mining magnate Kerry Stokes has called for a “broad-ranging” media reform program.

Kerry Stokes, centre, with Seven West Media director Jeff Kennett, left, and chief executive Tim Worner yesterday. Picture: Simon Bullard

Media and mining magnate Kerry Stokes has called for a “broad-­ranging” media reform program, but says that, while he could do deals if the laws were scrapped, he is unlikely to buy a regional TV network if the reach rule is axed.

“If there is something that’s to our advantage to look at of course we would. But I don’t know what that might be,” Mr Stokes told The Australian.

Speaking on the sidelines of Seven West Media’s annual meeting, Mr Stokes said a takeover of a regional broadcaster affiliate such as Prime Media Group was not a strategic imperative for him.

“We already service the regions pretty well and I’m not going to rule anything in or out but it’s not on our agenda,” he said.

Mr Stokes welcomed the federal government’s move to consult the industry ahead of any changes, but expressed frustration at the absence of any clarity about a package of reforms amid ­speculation it will be limited to the reach rule.

“I don’t know until I see what it is,” he said. “I haven’t seen anything. You guys seem to have more information than I have so I am looking forward to seeing what it is they are planning and then I will make a comment on it.

“I’m certainly supportive of the consultation process and I’m supportive of a broad-ranging review that includes licence fees and adopting legislation that enables our industry to go forward. And that will be including mobile phones, webcasting and all the things that we need to have a ­future for broadcast TV.”

Despite strong opposition from some players that led to the plan being ditched earlier this year, there is a rising belief the government will enable metropolitan and regional networks to merge by ditching the reach rule.

Communications Minister Mitch Fifield is also seeking to remove the “two out of three” cap that limits deals between print, radio and TV companies and is a legacy of laws imposed in the 1980s before the arrival of the ­internet.

Labor is divided over the “two out of three” rule as some MPs oppose the change while others accept the internet has made the regulatory framework obsolete.

Mr Stokes, whose Seven West Media controls the No 1 free-to-air TV network, The West Australian newspaper, a magazine business and digital media assets, said he watched with “great interest” a recent move by Bermuda-based billionaire Bruce Gordon.

To position himself as a key player in a period of consolidation if the media laws are changed, Mr Gordon lifted his stake in Seven’s closet rival Nine, taking his stake to 14.95 per cent to match his 14.95 per cent shareholding in Network Ten.

“I always watch Bruce Gordon’s moves with great interest,” Mr Stokes said. “He’s been in our industry for a very long time and he’s a canny person who seems to have the ability to do what everyone doesn’t expect him to do.”

Mr Stokes was bullish yesterday in reaction to investor concerns at a time of weak advertising demand and fragmenting audiences and advertising markets.

“In looking at the performance of the company … programming met its objectives, we had 38 per cent of total audience for the year; sales … met their side, this year we’re over 40 per cent of the revenue of the market place,” he told shareholders.

Mr Stokes said Seven was well positioned to endure and profit from digital disruption.