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Australian media reforms are sensible …but they come far too late - Venture Insights

Report Overview

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Australian media reforms are sensible …but they come far too late

PublisherVenture Insights.
Publish Date May 10, 2017
Sector Media, Television.
Company Fairfax, Fetch, Foxtel, News Corp, OPTUS, Pay-TV, Telstra.

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Buy this Report

The proposed reforms are comprehensive, sensible and balanced. They will have a big impact on market structure, but will not bring back the profits that have already left the industry for good.

Key takeaways

The Free-to-Airs are the big winners benefiting to the tune of $90m pa. This will shore up local production and keep the businesses in the black.

There will be major cross-sector consolidation as metro and regional FTAs combine, but also across FTA, radio, publishing and Pay-TV.

The impact on FOXTEL’s bottom line will be negligible, although it will be happy to secure a slight easing of the anti-siphoning regime.

However, the reforms do not change market fundamentals. Facebook, Google, Netflix and potentially Amazon will continue to increase their shares of the sector’s profit pools.

Broadcasters need to evolve faster, restructuring to strip out cost; consolidating; and moving into adjacent markets. Not all will survive.