SBS to block wagering, alcohol, fast food ads on request for On Demand viewers

Viewers will be able to self-exclude themselves from watching wagering, alcohol and take away food ads via SBS On Demand, in a move others are expected to follow.

SBS On Demand viewers will soon be able to self-exclude themselves from watching betting, booze and fast food advertising in a move it expects other television networks and streaming services could adopt in the near future.

The government broadcaster announced on Tuesday it will launch the beta opt-out functionality on its streaming service by March 2024, as a mooted federal government crackdown on wagering ads looms.

SBS said the move will require a viewer to request not to see the advertising in the wagering, alcoholic beverages and quick service restaurants categories via the SBS help centre, and that viewers would instead see ads from other companies.

SBS managing director James Taylor said he expected the move would be mostly welcomed by advertisers, who as a consequence would potentially be advertising to consumers more receptive to their products and therefore generate more brand loyalty.

“Audiences have always had complete control over what they watch on SBS On Demand. Now they will benefit further by having greater control over the ads they see as well.

“The advertiser benefits by not paying to reach people who have no interest in their product. This is responsible advertising at its best.”

Mr Taylor told The Australian that he thought there was “an inevitability to having to respond more explicitly to audience expectation around advertising” and that he expected other broadcasters to look at following SBS’s lead.

Communications Minister Michelle Rowland could announce curbs on betting ads on TV and online by as soon as the end of the year, and has held talks with gambling, television and sports league executives, and some sort of opt-out service or blocking of particular advertising could be welcomed by the government.

When asked how much revenue could be at stake with the SBS move, Mr Taylor said: “It is a meaningful category. Wagering is about 3 per cent of our advertising revenue, so we accept that this is a choice that we are making (that would potentially cut revenue).”

SBS is funded by a mixture of government funding and revenue from advertising and other commercial sources.

In the 2023 financial year, SBS’s advertising, sponsorship and client services activities generated $173m for the broadcaster, an increase of 12.7 per cent from the previous 12 months.

The federal government is providing about $7.8bn over five years for the nation’s two public broadcasters, including $1.8bn for SBS and $6bn for the ABC.

In a submission to the parliamentary inquiry into online gambling and its impacts on problem gamblers earlier this year, SBS said that gambling advertisements had accounted for only about 4 per cent of comments and complaints lodged with the broadcaster

Mr Taylor said SBS On Demand shows about five minutes of advertising per hour, compared to up to 15 minutes by the commercial networks.

SBS also already exercises some discretion regarding the placement of advertisements. For example, it showed gambling, payday lending or alcohol ads during its program Addicted Australia this year.

The new opt-out move was welcomed by two of SBS’s key advertisers

“Tabcorp is an industry leader for responsible advertising standards in the wagering industry, so we’re proud to be partnering with SBS in this audience-first approach. This is an innovative initiative that ensures advertising reaches a receptive audience,” Tabcorp’s general manager of marketing and media, Vanessa Sanford, said.

Jo Rose, the chief marketing officer of Endeavour Drinks Group said: “We are pleased to be working alongside SBS on the introduction of the audience first opt-out feature for SBS On Demand viewers, to ensure greater control for viewers.”