Australia’s commercial television networks are advocating for government rebates to support the production of news bulletins. This push comes as they face potential revenue losses due to proposed restrictions on gambling advertisements. The proposal will be presented to Prime Minister Anthony Albanese and Communications Minister Anika Wells in Canberra on Tuesday, reflecting the industry’s urgent need for financial support amid rising competition from major technology firms.
Television executives argue that an offset for producing news content could mitigate the anticipated loss of millions of dollars in advertising revenue if the government proceeds with plans to limit ads from wagering companies. A significant reduction in gambling advertisements would particularly impact broadcasters of popular sports like Australian Rules football and rugby league, including major players like Seven Network, Nine, and Foxtel.
The initiative, proposed by FreeTV Australia, seeks to establish a rebate system similar to existing incentives for local drama and documentary productions. Currently, a 30 percent rebate exists for local drama, while feature films benefit from a 40 percent rebate. Specific details on how the news offset would be implemented remain unclear, but the move highlights the networks’ need for financial assistance to maintain quality journalism.
Consumer sentiment indicates a growing concern over gambling advertisements, with nearly 80 percent of Australians reporting exposure to betting ads weekly. The television networks are also requesting the repeal of the annual commercial broadcast tax, which costs the industry approximately $55 million each year. This request represents a potential compromise on the long-delayed gambling advertising policy, which has been under discussion since the release of a report by the late Labor MP Peta Murphy in mid-2023, recommending a comprehensive ban on wagering ads.
In the year preceding the Murphy report, online gambling companies reportedly spent $239 million on advertising across free-to-air television, radio, and online platforms. A staggering amount of over one million gambling ads aired between May 2022 and April 2023. As the government continues to deliberate on the future of gambling advertising, reports indicate that wagering firms have already begun to reduce their ad spending voluntarily. Current figures suggest that free-to-air networks are now receiving about half of the $162 million they earned the year before the Murphy report was submitted.
Bridget Fair, chief executive of FreeTV, emphasized the need for a robust policy to safeguard the future of free television for viewers. “As Australians cut household budgets, there is one line item that won’t change; the zero cost of free TV,” Fair stated, highlighting the importance of accessible media amid financial constraints.
Wells, who recently took over the communications portfolio from Michelle Rowland after Labor’s significant victory in May, is now tasked with navigating this complex issue. Recently, Australian cricketer Usman Khawaja met with Albanese to discuss the pervasive influence of gambling on sports, reigniting public discourse on the topic.
The Labor government previously postponed proposed cuts to online gambling ads and limitations on broadcast television and radio ads in the lead-up to the election, following considerable opposition from both the AFL and NRL, as well as various media companies that rely heavily on the advertising revenue generated from betting firms. These media companies have raised alarms over how cuts could jeopardize their ability to produce news and other content for public consumption, while sporting codes have expressed concern about the financial ramifications for grassroots sports.
The government’s current stance on gambling advertising policy has left many wondering whether significant changes will occur before the end of the year. As the debate continues, the future of television news production and its funding remains uncertain, illustrating the broader challenges faced by traditional media in the age of digital competition.
