Commercial radio and TV broadcasters cry poor over blackout laws on political advertising

The media blackout laws for commercial radio and television stations will remain in place for the May 21 election, denying broadcasters of significant advertising revenue.

Joan Warner, CEO of Commercial Radio Australia. Picture: Scott Fletcher

Contentious media blackout laws that prevent commercial radio and television stations from airing political advertising in the final days of election campaigns will remain in place for the upcoming federal poll, despite repeated calls from industry leaders for the bans to be scrapped.

The laws prohibit political advertising on radio and TV three days from election day, meaning broadcasters potentially miss out on millions of dollar from political parties wishing to spruik their last-minute messages to voters.

Industry body Commercial Radio Australia’s chief executive officer Joan Warner said it was a disappointment the rules had not been changed in time for the May 21 election.

“We’re disappointed the media blackout rules remain in place for yet another election,” she said.

“Reform in this area is long overdue. Being able to compete on a level playing field for election advertising revenue with the global digital platforms is essential to sustaining public interest journalism in Australia.”

Despite the Joint Standing Committee on Electoral Matters into the conduct of the 2019 election finding a media blackout is “clearly no longer fit for purpose”, the legislation remains in place.

The report – which was released in December 2020 – stated: “The current rules lack consistency, and favour by default, rather than design, online media platforms over more traditional media formats.”

Free TV Australia chief executive Bridget Fair said the blackout rules for commercial media outlets were problematic in such a competitive advertising market.

“The only place you won’t find election ads in the three days before the election is television and radio,” she said.

“The election blackout diverts advertising spend from television and radio to unregulated digital platforms and clearly distorts competition. It’s way past time for this out of date rule to go.”

Bridget Fair, CEO of Free TV Australia. Picture Kym Smith

Ms Warner said:“We hope to see the pace of media reform pick up after the election, particularly in respect to removing inconsistencies,.”

The Australian Competition and Consumer Commission’s Digital Platform report in 2019 highlighted how the blackout laws created an imbalance in competition among media outlets.

“Media regulatory disparity can distort competition by providing digital platforms with a competitive advantage because they operate under fewer regulatory restraints and have lower regulatory compliance costs than other media businesses when performing comparable functions,” the report states.

However, federal legislation relating to electronic communications does not prevent political campaign material from being sent to voters and most notably United Party MP Craig Kelly came under criticismlast year for repeatedly sending unsolicited political messages to Australians’ mobile phones.

The messages sent by political parties must only contain factual information according to the Spam Act.

It’s understood Nine Entertainment, which owns talkback stations including Melbourne’s 3AW, Sydney’s 2GB, Brisbane’s 4BC and Perth’s 6PR are also supportive of discussions to change the blackout laws.

A government spokesman said they are considering the recommendations provided in the JSCEM report which includes concerns relating to the political advertising blackout laws.

“The government will respond accordingly in due course,” he said.

Originally published as Commercial radio and TV broadcasters cry poor over blackout laws on political advertising