PM meets with industry leaders, Worner’s warning on licence fees

Malcolm Turnbull hosted the country’s leading broadcasting companies at his Sydney office on Friday.

Illustration: Jon Kudelka

Malcolm Turnbull had a media-dominated schedule on Friday. After launching Chris Mitchell’smemoir, Making Headlines, in the morning, the former communications minister hosted the country’s leading broadcasting companies at his Bligh Street office in Sydney. The first meeting was with Free TV chairman Harold Mitchell and representatives from the body’s members: Seven West chief executive Tim Worner, Nine boss Hugh Marks, Ten chief Paul ­Anderson, Southern Cross Austereo regulatory head Creina Chapman, Prime Media general counsel Emma McDonald and Imparja Television chief executive Alistair Feehan. The meeting was primarily focused on the industry’s demands for licence fee cuts. Free TV is demanding more cuts to bring the fees in line with international standards, and a pathway to full abolition.

Executives came away cautiously optimistic about the prospects of another cut in December’s Mid-Year Economic and Fiscal Outlook statement, which has been previously flagged by The Australian. Given it was a Free TV meeting, the government’s media reform bill, which includes the abolition of the population reach rule and the two-out-of-three cross media ownership law, was not discussed in detail because the package doesn’t have unanimous support among the member companies. Nine’s support of the ownership bill is contingent on more licence fee cuts, while Seven has long been ambivalent about the package. On the way out of the meeting, the free-to-air executives bumped into Foxtel chief executive Peter Tonagh, who was next on Turnbull’s agenda, along with ASTRA chair Tony Shepherd. The subscription TV industry is lobbying for reform to the anti-siphoning list, which ring-fences premium sport for free-to-air networks, arguing that internet streaming has made the rules redundant.

Worner’s warning

The pow-wow took place after Nine’s Hugh Marks reversed his company’s media laws position by proposing to defer the reform bill until licence fee cuts are tackled. Observers believe Marks is deploying stalling tactics for time to help Nine fend off the prospect of potential takeover bids. In contrast with Nine’s flip-flopping, Seven’s Tim Worner told Diary his network has been “unwavering” about its position in relation to media reform. Worner said Seven has consistently “highlighted outdated and unsustainable licence fees as the most pressing” issue facing the commercial TV industry. “The removal of licence fees is critical to allow commercial broadcasters to reinvest in Australian content and compete with global over-the-top players, most of whom do not support Australian content or even pay basic company tax,” he said. “Media ownership changes should be considered in the context of a comprehensive package of reforms that would allow a healthy free-to-air television sector to continue to deliver the news, drama, entertainment and live and free sport that ­Australians love.”

Review of cricket team

The Nine cricket commentary team has been criticised as a boys club where former teammates get together to reminisce about the good old days. Some believe it’s less about the cricket and more about ego-inflating anecdotes. Cricket Australia is said to be putting pressure on Nine to make changes. Nine’s Hugh Marks confirmed that the network is “looking at the team”, but said a “final decision on the mix hasn’t been reached yet”.

Grand final roll-up

The pre-game AFL entertainment has copped flak over the years for ordinary performances, and odd music choices or a poor sound system. But things went smoothly this year with international act Sting, and Melbourne-based Vance Joyand homegrown rockers The Living End. A large crowd of media executives and talent watched the performance from the large wrap-around balcony in front of the Olympic Room at the MCG. Looking on was Seven proprietor Kerry Stokes, his son Ryan Stokes and his fiancee Claire Campbell, Seven West boss Tim Worner and his sales chief Kurt Burnette, Nine’s Karl Stefanovic, Telstra boss Andy Penn, Nova’s Ryan Fitzgerald, Tim Blackwell and Tony Thomas, MCN CEO Anthony Fitzgerald, and Carsales chair Jeff Browne. They were joined by Hollywood actors and brothers Chris and Liam Hemsworth.

Executives spoke to Malcolm Turnbull and Communications Minister Mitch Fifield about the moments that won the Western Bulldogs the grand final and the media reform bill. The News Corp contingent included Chairman Michael ­Miller, Herald and Weekly Times chair Penny Fowler, Fox Sports chief Patrick Delany, REA Group boss Tracey Fellows, The Australian’s editor-in-chief Paul Whittaker, and editors Chris Dore, Damon Johnston, Lachlan Heywood, Tony Phillips and Cath Webber.

Auditor cops backlash

The company that provides aud­ited publishing sales data has come under huge pressure after Fairfax Media pulled out of the digital component and senior News Corp executive Damian Eales questioned the validity of the metrics. Eales said advertisers were more interested in readership figures than sales data, while Fairfax boss Greg Hywood made claims in relation to the publisher’sdigital subscription numbers. There has also been speculation that Australia’s biggest magazine publisher, Bauer Media, is considering pulling out of the Audited Media Association of Australia. Asked by The ­Australian if he was considering such a move, Bauer chief Nick Chan said: “What I am concerned about is that there is enormous pressure for us in the marketplace to talk about not just our print products but what our brand footprints are. We have a measure at the moment that is specifically on one aspect of it, ostensibly for the sake of our advertisers and yet when we talk to our advertisers, they talk to us at a different level. They talk to us about what we can do in print, digital, and in other things like events, so there’s a ­disconnect there.”

Chan said advertisers had always been more concerned with readership numbers, but the AMAA figures had provided validation or a kind of “gold standard of measurement”. He added: “It’s actually served us very well, no question.

But equally, what I find difficult to reconcile is that whenever we hear about radio or outdoor, people are not talking about the number of listeners; they’re talking about share, the number of views or eyeballs on their sites. They’re not talking about the number of sites.

There’s a disconnect between the currency that is print versus the currency that all other media are attacking us on.” It all sounds ­pretty ominous for the AMAA to us.

Nine’s quick reshuffle

It hasn’t taken long for Nine to fill the office space formerly used by senior programming executive Andrew Backwell. Shortly after Backwell handed in his res­ignation on Wednesday, Nine ­director of acquisitions Hamish Turner moved into the level three office at the free-to-air network’s Willoughby HQ in Sydney. It’s not quite as large as the space occupied by Nine head of content, production and development Adrian Swift,who had two offices turned into one on his return from the ABC. Turner will take on extra responsibilities after Backwell, who was managing director of programming and production, was out the door by Wednesday afternoon, despite a Nine press release saying he would finish at the end of the month. It will be somewhat of a baptism of fire for ­Turner, who will join Swift in the French Riviera for the annual MIPCOM TV event in coming weeks. Nine’s ratings have improved of late, leading in the key advertiser demographics since the Olympic Games, but the network is still on track for its biggest hiding ever from rival Seven this year.

Kenny cuts back

The Australian’sChris Kenny is no fan of Labor’s Stephen Conroy, but Diary hears he is taking a leaf out of the former senator’s book in a bid for more family time. Kenny isn’t quitting altogether but the multimedia commentator is cutting back on his commitments hosting the Sky News Viewpoint program. What began four years ago as a weekly Sunday night program, Viewpoint expanded to Friday and Monday nights.

Kenny is planning to revert to the weekly Sunday night next month, citing an over-committed schedule.

The former chief of staff to foreign minister Alexander Downer and to Malcolm Turnbull when he was opposition leader works fulltime as an associate editor at The Australian. Kenny is expected to make occasional appearances on his good mate Paul Murray’s nightly show but is looking ­forward to sharing more family meals with wife Sunita and their two young sons.